Thursday, 19 August 2021

Post-lockdown pricing options, from the NamNews Team!

#Pricing #PostLockdown

Russian Discounter Opens First UK Store With Prices Cheaper Than Aldi

The interior of the store in Preston is minimalist with painted breeze-block walls and no branding (see video). Journalists visiting the site described it as a “drab” retail space that makes a branch of Aldi look almost glamorous.

To keep costs down, goods are sold from pallets with limited in-store services and only a handful of staff. The product range is focused on longer life ambient and frozen items, alongside household items. Everyday staples like milk, eggs and bread aren’t available, and there is no fresh fruit or veg.
There is an area with a selection of limited deals on non-food products, similar to the middle aisle in Aldi and Lidl stores.

Suppliers must deliver direct to stores and are expected to offer stock on a sale or return basis. MERE’s Chief Procurement OfficerPavels Antonovs, said: “We are a hard discounter. When we see that a manufacturer or a distributor has an offer that fits our business criteria, we will have it in store.”

NamNews Implications:
  • A gauntlet thrown down!
  • There has to be an Aldi/Lidl reaction…
  • The real issue is how the nearby mults will react.
  • Getting listings should be straightforward for suppliers.
  • (although direct store delivery, SOR may cause some to pause…)
  • But a MERE startup in the UK cannot be ignored… 

Wednesday, 18 August 2021

Grocery Sales Fall, Inflation Returns, And Tesco, Sainsbury’s, And Discounters Gain Market Share

The latest take-home grocery figures from Kantar show sales fell by 4.0% year-on-year during the 12 weeks to 8 August as consumers continued to return to pre-pandemic shopping habits, making smaller but more frequent trips to the stores. However, in the last month, sales declined more slowly by 0.5% and the data shows that Covid is still having an impact on people’s spending as grocery sales remain 9.9% higher in the latest 12 weeks than in 2019.

NamNews Implications:
  • A solid base of online loyals has emerged…
  • ‘Ocado has retained 1.8% of total grocery sales, the same as last year, and sales are up by 44.4% compared with 2019, the fastest two-year growth in the market.’
  • Says it all for Ocado.
  • Meanwhile, with 11% of Amazon grocery in own-label…
  • …they have plenty of O/L headspace vs mkt average 50%.
  • ‘Aldi now holds 8.2% of the market and Lidl 6.1%’ illustrates the continuing discounter threat…

Monday, 16 August 2021

Amazon To Add New Own-Label Food Range To Online Offering

The own-label food range developed for Amazon’s new grocery store format that launched in the UK earlier this year is set to be offered to its online customers.

The two ranges made their debut in March in the new ‘just walk out’ Amazon Fresh stores. Said to be sourced from UK suppliers, the ‘By Amazon’ label focused on everyday items such as milk and bread, whilst the ‘Our Selection’ offer covered more premium lines. They are sold alongside branded products and items that come from Morrisons and Booths.

NamNews Implications:
  • The ultimate test of a retailer’s pulling power (and ego) is the extent to which they can monetise their retail brand via own-label.
  • Key is the Generation they choose to position the offering (See our 1-page treatment of Four generations of own label)
  • i.e. like Tesco Finest, deliberately positioned as Gen 4: better than national brand but the same price.
  • Then branded suppliers have a real (and threatening) competitor…

Friday, 6 August 2021

Two Wrongs won't make it a Right Question, from the NamNews Team!

 (Best focus on how to rebuild a business from Lockdown?) 

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

Wednesday, 4 August 2021

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