Walmart sees strong Q2 results, with inflation a driver
H-E-B leads grocery chains in consumer transaction growth
Amid high inflation, most major U.S. supermarket chains are experiencing growth in consumer transaction values, and H-E-B leads the way, while Ahold Delhaize is ahead with overall U.S. sales, according to an analysis by Bloomberg Second Measure. The Bloomberg study charted data at Ahold Delhaize, Albertsons Cos., Aldi, H-E-B, The Kroger Co., Publix Super Markets and Trader Joe’s between July 2021 and July 21. New York-based Bloomberg Second Measure is a provider of transaction data analytics that delivers insights into company performance and consumer trends.
“In July 2022, the grocery industry reportedly experienced the biggest year-over-year price hikes since the 1970s, affected by factors such as inflation and ongoing supply chain issues. So how has consumer spending at specific supermarket chains fared against this backdrop? Using consumer transaction data, we analyzed U.S. consumer spending at major grocery store companies,” wrote Janine Perri, author of the Bloomberg Second Measure analysis report.
Source: Supermarketnews Hudson’s Bay to resurrect discount retail chain Zellers
Discount department store Zellers hopes to make a comeback next year, a decade after the Canadian chain shuttered most of its locations. Hudson’s Bay Co. says Zellers will debut a new e-commerce website and expand its brick-and-mortar footprint within select Hudson’s Bay department stores across the country in early 2023.
The company says the relaunched Zellers will offer “a digital-first shopping journey that taps into the nostalgia of the brand.” Yu Ma, Associate Professor, Desautels Faculty of Management, said about the issue: “It is exciting to see an iconic Canadian brand coming back to life. However, it will face tough competition and its future is a huge question mark.”
Source: McGill.ca Walmart may launch a platform that will use social media influencers to help the retailer
A tweet by Reuters suggests Walmart could launch a new platform to collaborate with social media influencers: The tweet by Reuters states: ‘Walmart may launch a platform that will use social media influencers to help the retailer and its 100,000 third-party sellers promote their goods and services online, according to trademark filings …’ Source: Latestly
Amazon Canada commits £80,000 to Canadian food banks
Amazon Canada has committed to donate £80,000 to local food banks experiencing an increase in demand. The injection strengthens an employee-led initiative to support eight food banks in Beauharnois, Montreal, Ottawa, Toronto, Calgary and Vancouver as part of Amazon’s Global Month of Volunteering. From Aug.
15 to Sept.16, Amazon staff will volunteer with organizations and causes they’re passionate about within their own communities. In May, food banks in Canada reported about 160,000 monthly visits, up from a monthly average of 60,000 visits pre-pandemic, per the CBC. “The rising inflation we are witnessing in Canada contributes to insecurity and hunger at a scale that we have not seen in a long time,” said Kate Ramanchuk, the Amazon Web Services (AWS) territory account manager in Toronto, who helped organize the volunteer program, in a release. “Food banks are crucial in addressing this need.” Marie-Josee Warrant, the enterprise sales rep for AWS in Montreal, is also leading the initiative.
2020, as it gained market share in grocery and passed 1 million deliveries for its GoLocal service that provides last-mile service for other retailers including Home Depot, with inflation helping attract more upscale shoppers. “We expect inflation to continue to influence the choices that families make, and we’re adjusting to that reality so we can help them more,” Walmart CEO Douglas McMillon said on an earnings call. “Regardless of the inflation level and as we work through the places where we have too much inventory, we continue to make progress on our strategy.” In fact, that inflationary pressure is leading to an unusual result: shoppers higher up the income ladder hitting Walmart to save, helping the company gain market share in grocery.
Source: Multichannel Merchant  UK: Co-op Group expands its online grocery partnership with Deliveroo
The Co-op Group has extended its partnership with Deliveroo for another three years, and aims to have the service available from up to 1,400 stores by the end of the year. The partnership launched in 2017, and the Group is now one of Deliveroo’s largest grocery partnerships, offering orders picked fresh from its local stores from a range of around 2,300 items.
Chris Conway, ecommerce director at the Group, said: “Co-op is committed to exploring new and innovative ways to serve our members and customers, with ease, speed, quality, value and convenience at the heart of our approach. We are delighted to be able to expand our partnership with Deliveroo – as a convenience retailer, the ability to come into stores will always be important to customers, but we also know that shoppers want flexible, quick and convenient options online, and so we are focused on providing what our customers want and need, however and wherever they choose to shop with us.” Source: Coop
Spain: What is the most popular supermarket in the Region of Murcia?
Whether it’s a catchy jingle, a simple layout or ice-cold air conditioning during the sweltering summer months, we all have certain stores that we gravitate towards over others for many reasons aside from value for money. Grocery shopping is one of life’s unavoidable chores, and in the Region of Murcia there is one supermarket that trumps all others by a country mile: Mercadona. And it’s not a close contest either, since the Valencia chain beats its closest rival by a substantial 11.5% in terms of customer popularity.
According to a Retail Data study published exclusively by the infoRETAIL magazine, in the Region of Murcia Mercadona held a market share of 21.5% at the end of the first quarter of 2022. With 63 establishments in the Region and more than 98 thousand square meters of shopping space, this supermarket is the undisputed leader. Source: Murcia Today
UK: Aldi set to take over Morrisons as the UK’s fourth largest supermarket
Budget supermarket Aldi is set to become the UK’s next Big Four Grocer amidst a rise in popularity during the cost of living crisis that will knock Morrisons from the coveted spot. As inflation and grocery prices continue to rise, shoppers have been making the switch to discounted supermarkets in a bid to keep costs low when they are getting in the weekly shop. The latest three month figures from Kantar has found that the German grocer’s market share had increased significantly in the past year and that they are close to knocking Morrisons out of the ‘Top Four Grocers’.
Source: Daily Record China’s online grocers fight for survival in overcrowded market
After expanding fivefold in as many years, China’s market for online grocery deliveries is at a crossroads as it faces a debilitating price war and worker shortage. The fall of Missfresh, a pioneer in online grocery delivery, shows just how competitive the market has become.
This month, the Beijing Consumer Association ordered Missfresh to handle complaints appropriately and announce a plan to refund its customers. The startup, once valued at USD 3 billion, had recently come under fire for failing to return fees charged through its app. Demand for online grocery deliveries has only grown in China since 2020 as restaurants shut down and people stayed home over the spread of the coronavirus.
The market expanded 18% in 2021 to RMB 311.7 billion (USD 63.3 billion), according to iiMedia Research. Source: KrAsia UK’s cost of living crisis is hitting debt of its supermarkets
British supermarkets are taking a hit in the credit markets after inflation accelerated to the highest in 40 years.
Bonds issued by Asda, Iceland Foods, Tesco Plc and groceries delivery firm Ocado Group Plc fell after data on Wednesday showed the UK Consumer Prices Index jumped 10.1% in July from a year earlier. Supermarkets’ bonds underperformed an index of sterling corporate bonds as rising food prices made the biggest contribution to the month’s increase. UK inflation is running hotter than that of Western European counterparts, with sterling weakness, Brexit-related supply chain issues and soaring energy prices all contributing.
Supermarkets are among sectors seeing the biggest impact, as price rises for essentials like dairy, meat and vegetables are difficult to pass on to already-squeezed consumers.
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- ^ Latestly (www.latestly.com)
- ^ Canadian Grocer (canadiangrocer.com)
- ^ Multichannel Merchant (multichannelmerchant.com)
- ^ Coop (www.thenews.coop)
- ^ Murcia Today (murciatoday.com)
- ^ Daily Record (www.dailyrecord.co.uk)
- ^ KrAsia (kr-asia.com)
- ^ Swiss Info (www.swissinfo.ch)