18 Shop Talk S
ainsbury’s is introducing a new service that will enable customers to collect their online grocery orders from London Underground station car parks. To begin with the service will be launched from seven stations (Oakwood, Totteridge & Whetstone, Woodside Park, Leytonstone, Loughton, Debden and South Woodford) and will start this summer.
Customers who place orders before 1pm will be able to collect them on the same day. The service will be free for July and August and after that will be available for all online grocery orders over £20 with a £1.99 charge per collection. It will be free to customers with a Sainsbury’s Delivery Pass. Graeme Craig, director of commercial development at Transport for London, said: “We’re delighted that Sainsbury’s has joined the Click and Collect revolution on our network. Across a range of services, we want to work with Britain’s outstanding retailers, both large and small, and Sainsbury’s is a fantastic addition to our list of partners.”
Sainsbury’s online grocery business has grown by 12% over the last year and has achieved the milestone of £1bn in annual sales and it regularly delivers more than 190,000 orders a week. Tesco has seen like-for- like sales fall by 3.7% over the past three months – the third consecutive quarter decline – according to its First Quarter Interim Management Statement 2014/15. In April the retailer announced a 6% decline in annual profits. Chief executive Philip Clarke said
SHOP TALK
A round-up of supermarket news and gossip
that he expected trading to “remain challenging for the UK grocery market as a whole” and added that despite today’s results he was pleased with the company’s “accelerated efforts to deliver the most compelling offer for customers.” Morrisons’ online delivery service has been extended further in the north of England and it started its first rounds in Manchester and Hull at the beginning of June. Groceries are being delivered to more than 807,000 homes across the Greater Manchester area and more than 148,000 homes over Hull and Beverley, as the retailer continues to roll out the service nationwide.
Morrisons has also added new service to its online offering through which customers will be able to get chilled beer, wine and soft drinks delivered to their doors. The company
claims it is the first time that any online retailer has been able to offer such a service and it is made possible due to its ‘central pick model’.
According to its full year results for the 52 weeks ending 29 March 2014, Marks and Spencer saw a 3.9% decline in underlying annual pre-tax profit to £623m - the lowest level since 2009. However group sales were up by 2.7% at £10.3bn. In the UK, like-for- like sales increased by 0.2%, with food sales up by 1.7%. Chief executive Marc Bolland said: “M&S grew sales by 2.7% last year. We are focused on improving our performance in general merchandise and were pleased to see early signs of improvement. Our food business had a very strong year, consistently outperforming the market.”
Sainsbury’s has opened its 200th convenience store in London – Shepherd’s Bush Road Local in Hammersmith – creating 25 local jobs. The retailer’s first ever convenience store was also in Hammersmith and opened in 1998. More than 6,000 people are employed in Sainsbury’s convenience stores across Greater London and the company recently opened a new convenience training centre in the capital to train 200 new managers and 500 team leaders. Waitrose has seen an increase in divisional sales of 6.5% for the first 13 weeks of this year (ending 26 April). Divisional sales in the week ending 26 April were 2.1% lower than last year due to the shorter trading week and the closure of most shops on Easter Sunday.
The retailer has also seen grocery sales through waitrose. com increase by 79.4% for the first quarter of this year boosted by marketing and promotional activity. In addition, eight new shops were opened during the three month period. The company says that according to Kantar figures it now has a record market share of 5%. According to the BRC- KPMG Retail Sales Monitor for May 2014, UK retail sales were up 0.5% on a like-for- like basis from May 2013, when they had increased 1.8% on the preceding year. On a total basis, sales were up 2.0%, against a 3.4% rise in May 2013. Clothing was the best performing category, reporting its highest growth since December 2011, while food was the lowest, reporting a decline in total terms.
Hydratech ACR News July 2014 Visit ACR News online at
www.acr-news.com
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