Asda’s CEO Steps Down Earlier Than Expected

Trevor Strain, Morrisons’ Chief Operating Officer, Steve Murrells, the boss of the Co-op, Jason Tarry, CEO of Tesco UK & Ireland, Stuart Machin, head of Food at M&S, Ronny Gottschlich, a former boss of Lidl, and Anthony Hemmerdinger, Asda’s COO, have been named by industry watchers as potential candidates to take over from Burnley.

NamNews Implications:

• With six potential candidates, NAMs will need further clarity…
• …in order to muse re impact of a replacement on Asda policy.
• Meanwhile, anticipate more influence from the owners…

#Succession #AsdaFuture

The Hut Group Makes Another Acquisition

E-commerce giant The Hut Group (THG) has continued its acquisition spree by buying online retailer Cult Beauty for £275m.

Launched in 2008, London-headquartered Cult Beauty sells around 300 brands across skincare, haircare and cosmetics, including Charlotte Tilbury, Drunk Elephant, and Huda Beauty.

NamNews Implications:

• In the infinite space of online…
• …this is a no-brainer addition to THG will add scale benefits inc cost efficiencies, minimum.
• And at growth rates of 38% and 41%…
• …you have to have a good reason for not being on board.

#

OnlineCosmetics #beauty #skincare

Doritos Unveils Latest On-Pack Promotion

PepsiCo’s Doritos brand is launching a new on-pack promotion that offers shoppers the chance to win a grand prize of £20,000. There is also an additional opportunity for consumers to win £200 every day.

NamNews Implications:

• A versatile brand…
• …combined with creative consumer engagement…
• …and potential financial reward.
• A no-brainer…

#ConsumerEngagement #Promotions

PepsiCo Selling Juice Brands To Private Equity Firm

PepsiCo has entered into an agreement with PAI Partners (PAI) to sell a 61% majority stake at $3.3bn in its Tropicana, Naked and other select juice brands across North America, and an irrevocable option for certain juice businesses in Europe.

NamNews Implications:

• Rivals should anticipate two changes resulting from this move…
• A different focus on the selling of the juice brands to release potential
• A more intensive focus on PepsiCo’s current portfolio of diverse offerings
• Including growing their portfolio of healthier snacks, zero-calorie beverages, and products like SodaStream.
• Watch these places…

‘Perfect Storm’ Gripping Food Sector With Shortages Now Inevitable, Says 2 Sisters Founder

The founder of one of Britain’s biggest food producers has claimed that supermarket shelves in the UK will be bare and panic buying will intensify unless critical issues currently threatening food supplies are solved promptly.

NamNews Implications:

• ‘Perfect storm’ of causes will have a ‘perfect storm’ of effects:
• Labour shortages = increased labour costs
• Ingredients shortages = increased costs
• Energy demands = increased costs
• Bureaucracy increases = increased costs
• Stockpiling increases = increased costs
• Do you really think all will be contained within official ‘inflationary adjustments.
• i.e. Budget for more than a 5% shelf-price increase, at least...   
• Your category, your call…

#Inflation #LabourShortage #IngredientsInflation #BrexitInflation #StockPiling

Supermarkets Benefit From Weather, Sport, And Staycations But Headwinds On The Horizon

Over the four weeks ending 17 July, total till sales edged down only 1.3% versus the same bumper period in 2020 when demand was being boosted by the effects of the pandemic. This was an improvement on the 2.4% fall in June and 2.7% decline in May when hospitality venues first reopened.

NamNews Implications:

• As always, the key is to compare your sales by sector and category.
• Meanwhile, in terms of potential headwinds (increased hospitality diluting retail, emergence of the super-savvy consumer reining spend)
• It may be worth factoring in a hefty dose of inflation…

#Inflation

The JTF Mega Discount Warehouse Chain Collapses After Lockdown Impact

Trade magazine The Grocer reported that the variety discounter has now closed all of its 12 outlets located on retail parks in the Midlands and north of England. The business employed around 500 staff.

The warehouse and online business sold a wide range of products including food & drink, health & beauty, garden, and DIY products. Customers had to sign up to JFT’s free membership scheme to shop in the stores.

NamNews Implications:

• Sometimes you have advance warning, sometimes not…
• But bankruptcies happen slowly and then very fast.
• Therefore crucial that NAMs monitor the latest annual reports…
• …for early signs of trouble.
• And complete ‘If a customer goes bust’ exercises, regularly.
• What incremental sales are required to generate the sales owed by the customer from Net Profits?
• i.e. Divide the current amount owed to you by the customer by your net margin, and multiply by 100...

#Bankruptcy #SalesImpact

First Fall In Online Grocery Sales; Tesco, Sainsbury’s And Discounters Make Market Share Gains

Latest data from Kantar shows demand for take-home groceries has continued to ease from last year’s records highs, with sales down 5.1% year-on-year during the 12 weeks to 11 July as more normal trading conditions returned and less shopping was done online. However, sales are still elevated compared with pre-pandemic times and shoppers spent £3bn more on groceries than they did during the same period in 2019.

NamNews Implications:

• For many consumers, 17 months was a sufficient period for online grocery to become a habit…
• …providing retailers maintain fulfilment fees, and preserve availability levels ‘on virtual shelf’.
• As always, the two-year comparisons reveal the most…
• …and meanwhile, those pesky discounters.

#KantarShares #OnlineGroceryShares