20 Shop Talk
Coulsdon, South London, more than doubling its online capacity in the capital. The retailer currently fulfils London customers’ orders made on
Waitrose.com through a network of London branches and a dotcom fulfilment centre (DFC) in Acton, West London. Due to open in autumn 2014, the new, multi-million pound depot will help to more than double the number of orders fulfilled in the capital by despatching up to twice as many orders per week as at Acton. The purpose-built, six acre site will feature an 80,000sq ft picking space – twice the size of that at Acton – and allow up to 50% more items to be picked in an hour and up to 50% more drops per van to be made in a week at the Coulsdon DFC. The new DFC will build upon the traditional ‘dark store’ model operated at Acton – where staff pick products from aisles laid out like a customer- facing branch – to create efficiencies in the picking, replenishment and logistics models. Navigation around the warehouse will be made more efficient and a self-contained chilled picking room will reduce refrigeration costs. In addition, a redesigned fleet of vans, with on-site access to repair services and refuelling, will increase the number of deliveries made to customers on any one journey, maintain frozen food temperatures for longer, increase route efficiencies and cut transport costs. Sales within the M25 tripled last year to represent 20% of all
Waitrose.com sales. Tesco saw group sales
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increase by 2.0% to £35.6bn for the 26 weeks ending 24 August
aitrose is to open a second e-commerce grocery depot in
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2013. Group trading profit was £1,588m, down (7.6%) on last year, reflecting the effects of challenging economic and trading conditions in Europe, in addition to the impact of regulatory restrictions on opening hours in Korea. UK sales, excluding petrol were up 1.7%.
Chief executive, Philip Clarke, said: “Despite continuing challenges, we have made further progress on our strategic priorities. We are strengthening our UK business, working to establish multichannel leadership and pursuing disciplined international growth. In addition, Tesco has announced a partnership with China Resources Enterprise (CRE) to create the leading food retailer in the world’s most populous country. The agreement is expected to be concluded in the first half of
2014, subject to regulatory and CRE shareholder approval. Tesco also announced last month that it had agreed the sale of a substantial part of its US Fresh & Easy operation to YFE Holdings. Sainsburys has reported a 5% increase in total sales for the second quarter and a rise in like-for-like sales of 2.1%. Total sales for the first half of the year were up by 4.4%, while like-for- like sales grew by 1.5%. Chief executive, Justin King, said: “We have delivered strong sales over the quarter, continuing to outperform the market in what remains a tough retail environment. Our groceries online business grew by over 15% in the quarter and is now worth over £1bn in annual sales. Our convenience business grew 20% year-on-year as customers topped up more frequently during the warm summer weather.”
During the quarter, Sainsbury’s opened 31 convenience stores and five new supermarkets, adding 307,000 square feet to its estate. Separately, Sainsbury’s online grocery sales reached £1bn in September. Sainsbury’s Online now delivers to over 190,000 customers every week with sales growth of over 16% per year. According to its interim results for the half year to 4 August, Morrisons saw total store sales increase by 0.8%, while like-for-like store sales were down by 1.6%. Total turnover reached £8.9bn, in line with last year.
Non-executive chairman, Sir Ian Gibson, said: “Consumer confidence and market conditions have remained challenging in the first half. “We have continued to invest in and develop our customer offer and this has been reflected by an improved sales performance compared to the second half of last year. Our financial position is strong and we remain focused on maximising returns from our assets and delivering superior shareholder returns.” Waitrose is expanding its global reach by selling its food and drink in Switzerland through a deal with upmarket department store chain, Manor. Around 120 products will go on sale, including frozen products from curries to desserts, store cupboard groceries from organic marmalade to English breakfast tea, and sweet treats, including biscuits and shortbread. Initially products will be available in the food hall of the department store’s Geneva branch, before being rolled out to a further six branches in other Swiss cities later including Zurich and Basel.
Swep ACR News November 2013
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