Elsevier Food International
Volume 7, No. 1 February 2004
Market Vision
Larry Johnston, chairman and CEO of US retailer Albertsons, faces the challenge to keep America's second largest grocery retailer a vibrant competitor. Observers, however, are sceptical about the pace retail image of the chain's restructuring and feel that little is being done to rid the chain of its 'plain vanilla'
R&D
The genotype meal is under construction. The first experimental foods based on personal genetic makeup are not to be expected before 2010. Customised to the health problems of individuals they may in the future contribute to the prevention of welfare diseases like obesitas, cardiovascular disorders, type II diabetes and cancer.
Tailor-made food: Onset of the genotype diet
Country Profile
Last year was perhaps the most significant one in UK retailing for well over a decade. The colour and shape of UK retail in 2003 was marked by a series of key issues, which can be divided into news events and retail sector developments
UK's high stakes retail battle
Food Watch
Retail development in the Middle East is closely linked to the building of shopping malls. Rapid expansion of shopping malls throughout the region means that hypermarkets are spreading quickly and may well become the leading format in the Middle East.
Convenience store leaders are testing hybrid formats and expanding foodservice offerings as they face competition from grocers, drugstores and quick-service restaurants that encroach on traditional c-store territory. The ball game is changing. Retailers focus on consumer need rather than on the classic definitions of channels.
C – Stores: The hunt for new profits
Legendary venture capitalist and Intel manager Arthur Rock once put it in a nutshell: "Nearly every mistake I have made in this business has been in picking the wrong people, not the wrong idea". Ultimately, the success of a company depends on the people who shape and direct it.
Talent, the underestimated success factor
Instore
Increasingly, retailers are paying attention to reducing energy consumption. Significant cost control that also benefits the environment is a double win. There are, however, differences in retailers’ assessments of energy management. Leading retailers consider their entire operations, acknowledging that this is not limited to the implementation of new technologies but also creates awareness at all levels within the company.
Food Buying
Ethical sourcing establishes a company’s responsibility for labour and human rights practices within its supply chain. Companies that are leading in fighting socially irresponsible suppliers implement aggressive supplier screening and development programmes. However, in practice it is still proving difficult to assess the suppliers and thus uphold and enforce the basic workers’ rights. Ethical sourcing remains a question of finding the balance between idealism and pragmatism.
Retail Profile
Lidl is notorious for its aggressive handling of its domestic suppliers, contractors and employees. The German discounter has now extended this policy of aggressive expansion to its operations abroad. Local industries adopt a defensive strategy when Lidl enters the market. Though this does not deter Lidl, which cunningly manages its working capital.
Fresh Foods
The popularity of fresh apples is suffering in the more developed markets of Western Europe, Australia and North America, illustrating the growing demand for processed and ready prepared fresh cut fruit as well as other competing snacks. Any growth comes primarily from new varieties with enhanced eating quality such as Pink lady, Gala and Fuji, but at the expense of the traditional Delicious.
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