Elsevier Food International
Volume 10, No. 2 May 2007
Retail Profile
Belgian retailer Delhaize is a prime example of a retailer that successfully defends its position against price competition in developed markets. With its innovative strategy and keen execution, it has built strong positions along the US East coast, in Belgium and Luxembourg. In emerging markets, however, Delhaize’s track record is less impressive.
Food Buying
Suppliers’ sweet dreams of collaboration with key accounts may well turn into nightmares should dependency of the key customer become too big and/or should the esteemed key partner be acquired or decide to change its strategy. Large or major accounts are by no means key accounts. What suppliers really need is a new business model that focuses not on the quantity but on the quality of business.
Country Profile
Pressure in India’s retail sector is rapidly mounting. The announcement of Wal-Mart’s cash & carry joint venture with local partner Bharti was like a stone tossed in the Indian retail pond. It led to feverish negotiations between local conglomerates and foreign retailers, and increased activity of local retailers. Despite all activity, India’s retail infrastructure still needs to be built from scratch.
Food Marketing
In the last two years more and more nutritional labels have appeared on food products. At a glance, front-of-pack nutrition information could help consumers make healthier food choices. However, national governments, food and drink producers and supermarkets disagree about the labelling of ‘better for you’ foods, leaving consumers behind in confusion.
Food health labels: trick or treat?
EFI Special
In 2006, acquisition and divestment activity again played a prominent role in the top 100 ranking of the world’s leading food and drink suppliers. This trend has led to concern from trade unions about possible large-scale job losses. The response from private equity firms is that they often improve the performance of the businesses they acquire.
Food 100: The shadow of private equity
Store Profile
Despite promoting itself on the store’s front as ”The best little grocery store in America”, Green Hills Farms in Syracuse, N.Y., looks from the outside like any other small town American grocery store. However, looks can be very deceiving as this store is well-known for being a testing ground for new technology.
Green Hills Farms (Syracuse, NY - USA)
Real Estate
In France, 2006 was a record year for retail development and this year it is expected to perform even better. Retail parks – which successfully managed to shed their poor quality image – and shopping centres – which are increasingly planned in city centres – are the engines of growth.
Real Estate
The takeover battle concerning UK retailer J Sainsbury is turning property investors’ eyes to Europe. Sainsbury’s portfolio could provide sale-and-leaseback and REIT (real estate investment trusts) opportunities. However, the assets of some European food operators are also attracting attention.
Food Watch
Medical clinics in supermarkets are a fast growing business in the United States. Retailers like Wal-Mart, Target, Kroger, Winn-Dixie, Publix and Walgreens have moved quickly to embrace this new trend. At the end of 2006, there were about 200 in-store clinics in operation and the number is expected to rise to 1,800 clinics this year and 5,000 next year.
Warehouse clubs have carved out a significant portion of the US grocery market. But smaller cash and carry operations with a focus on business customers remain the dominant force in European markets.
ECR
An increasing number of companies are focusing on the issue of sustainability, creating long-term programmes that are good for the earth – and the bottom line.
ECR
Standard pricing models do not match the complexity and peculiarities of the grocery retail sector. When it comes to pricing, there is no one-size-fits-all solution. Retailers should consider pricing as a structured process and every single element of this process relates to their individual stores, categories, merchandising and competitive edge.
In store
Today’s shopping trolleys offer more ease of use, are increasingly made from plastic materials and show better design and ergonomics. Retailers that want to enhance the shopping experience can mount their trolleys with interactive, web-based devices that assist shoppers with product information and navigation.
Customised trolleys for the Internet generation
Fresh Foods
The global banana market is currently booming according to the latest research from Euromonitor International. Over the past eight years volume sales have risen by an impressive 33 per cent, from 43 million tonnes in 1998 to 57 million tonnes at the end of 2006.
Retail ProfileBelgian retailer Delhaize is a prime example of a retailer that successfully defends its position against price competition in developed markets. With its innovative strategy and keen execution, it has built strong positions along the US East coast, in Belgium and Luxembourg. In emerging markets, however, Delhaize’s track record is less impressive.
Suppliers’ sweet dreams of collaboration with key accounts may well turn into nightmares should dependency of the key customer become too big and/or should the esteemed key partner be acquired or decide to change its strategy. Large or major accounts are by no means key accounts. What suppliers really need is a new business model that focuses not on the quantity but on the quality of business.
Pressure in India’s retail sector is rapidly mounting. The announcement of Wal-Mart’s cash & carry joint venture with local partner Bharti was like a stone tossed in the Indian retail pond. It led to feverish negotiations between local conglomerates and foreign retailers, and increased activity of local retailers. Despite all activity, India’s retail infrastructure still needs to be built from scratch.
In the last two years more and more nutritional labels have appeared on food products. At a glance, front-of-pack nutrition information could help consumers make healthier food choices. However, national governments, food and drink producers and supermarkets disagree about the labelling of ‘better for you’ foods, leaving consumers behind in confusion.
In 2006, acquisition and divestment activity again played a prominent role in the top 100 ranking of the world’s leading food and drink suppliers. This trend has led to concern from trade unions about possible large-scale job losses. The response from private equity firms is that they often improve the performance of the businesses they acquire.
Despite promoting itself on the store’s front as ”The best little grocery store in America”, Green Hills Farms in Syracuse, N.Y., looks from the outside like any other small town American grocery store. However, looks can be very deceiving as this store is well-known for being a testing ground for new technology.
In France, 2006 was a record year for retail development and this year it is expected to perform even better. Retail parks – which successfully managed to shed their poor quality image – and shopping centres – which are increasingly planned in city centres – are the engines of growth.
The takeover battle concerning UK retailer J Sainsbury is turning property investors’ eyes to Europe. Sainsbury’s portfolio could provide sale-and-leaseback and REIT (real estate investment trusts) opportunities. However, the assets of some European food operators are also attracting attention.
Medical clinics in supermarkets are a fast growing business in the United States. Retailers like Wal-Mart, Target, Kroger, Winn-Dixie, Publix and Walgreens have moved quickly to embrace this new trend. At the end of 2006, there were about 200 in-store clinics in operation and the number is expected to rise to 1,800 clinics this year and 5,000 next year.
An increasing number of companies are focusing on the issue of sustainability, creating long-term programmes that are good for the earth – and the bottom line.
Standard pricing models do not match the complexity and peculiarities of the grocery retail sector. When it comes to pricing, there is no one-size-fits-all solution. Retailers should consider pricing as a structured process and every single element of this process relates to their individual stores, categories, merchandising and competitive edge.
Today’s shopping trolleys offer more ease of use, are increasingly made from plastic materials and show better design and ergonomics. Retailers that want to enhance the shopping experience can mount their trolleys with interactive, web-based devices that assist shoppers with product information and navigation.
The global banana market is currently booming according to the latest research from Euromonitor International. Over the past eight years volume sales have risen by an impressive 33 per cent, from 43 million tonnes in 1998 to 57 million tonnes at the end of 2006.
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