Elsevier Food International

Volume 9, No. 1 February 2006

Market Vision
It is still a young company but the ambitious Icelandic retail and investment company Baugur is already iconic for the drastic changes in Iceland since the late 1980s. Baugur’s young CEO Jón Asgeir Jóhannesson is the incarnation of Baugur’s rapidly rising star but he has experienced that success creates friends and foes alike.

Tempestuous times for Baugur's rising star

EFI Special
Cross border retail expansion is a costly process of market entry and market retreat. Beneficial factors such as rising spendable income, an emerging but still fragmented market and availability of locations and real estate are not available on demand. And the flip side of such ideal conditions is fierce competition which quickly drives up cost. Government interference and corruption may also turn a promising market into a retail quicksand.

Aspirations abroad: a matter of staying ahead

Country Profile
All eyes are on China and India as promising markets for the future. The huge Indonesian market, however, also offers interesting opportunities. Local and foreign retailers are developing modern retail structures at a rapid pace, especially in the urbanised areas where a middle class is emerging. Carrefour and Dairy Farm are actively engaged, while there is speculation on other foreign retailers’ interest in Indonesia.

Indonesia's rapid retail development

R&D
The global health trend has resulted in double digit growth for nutraceuticals over the last years. Yet, this category has a promise to fulfil. Market research shows that key potential consumer groups are not targeted sufficiently and consumers distrust products' health claims.

How to drive nutraceuticals?

Food Watch
A number of trends are affecting the logistics strategies in the retail industry where the list of process failures in the supply chain is a long one and the results are costly. The impact of oil price increases is forcing companies to take a closer look at supply chain practices.

The logistic challenge

A relatively small group of retailers tend to dominate the supermarket industry. But as home markets become saturated and critical of their power, international expansion may be their only growth path. But even investment-hungry emerging markets may no longer be safe havens.

Is bigger really better?

Food Buying
Many of the leading retailers seek to leverage their international scale by building global trading relationships with international branded suppliers. Conversely, suppliers effectively managing their global accounts strategy, assess factors like the centralised capability, scale and global reach of the leading international retailers.
 

Searching for global trading partners

Real Estate
European shopping centres are frontline performers in the retail real estate sector, delivering higher returns than office rentals in the last three years. The latest figures assessed by CB Richard Ellis/IDP also showed that in six out the 12 European countries surveyed, shopping centres dominate when it comes to delivering profits. Yields in central and eastern Europe (CEE), meanwhile, have posted declines prompting the query whether shopping centres in CEE are sustainable investments.

Shopping centres: frontline performers in real estate

Instore
On both sides of the Atlantic retail crime has been blamed for billion-dollar losses every year. An array of impressive technology ranging from self-locking grocery trolleys, sophisticated cameras to electronic article surveillance (EAS) are available to retailers who are struggling to minimise retail shrinkage. But is technology sufficient to push back the rise in the latest wave of retail crime?

Technological clampdown on retail shrinkage

Retail Profile
Netto is the multinational discount subsidiary of Dansk Supermarked. With relatively limited international operations compared to its discount peers, Netto faces the tough task to spur further growth while competition is fierce.

Netto’s growth imperative

Fresh Foods
Oranges are still very popular and the most consumed among the citrus varieties. Not only families with young children but also consumers above the age of 60 buy oranges to ensure sufficient vitamin C intake.

Oranges: from pulp bits to juicy news