12 Shop Talk S
ainsbury’s has reported a 1.7% fall in like-for-like retail sales in its third quarter trading statement for the 14 weeks to 3 January 2015. Total sales for the period were down by 0.4%. However, a record-breaking week before Christmas saw more than 29.5 million customer transactions. Chief executive Mike Coupe said: “The outlook for the remainder of the financial year is set to remain challenging, with food price deflation likely to continue. Our performance in the third quarter showed an improving trend quarter-on- quarter.”
Sainsbury’s fourth quarter trading statement is due to be announced on 17 March. Tesco’s trading statement for the 19 weeks ending 3 January 2015 showed like-for-like sales for the 19-week period down by 2.9%, compared with a decline of 5.4% for the previous quarter. This includes like-for-like sales performance of -0.3% for the six- week Christmas period. The retailer says it is planning to close 43 unprofitable stores and is making “a significant revision to its store building programme.” It is also consolidating its head office locations, closing its Cheshunt site in 2016 and making Welwyn Garden City its UK and Group centre. In addition, it is closing its staff pension scheme. Tesco has also announced that Matt Davies, currently group chief executive of Halfords Group, will join as the new chief executive for the UK and Ireland business with effect from 1 June this year. Chief executive Dave Lewis said: “We have some very difficult changes to make. I am very conscious that the consequences of these
SHOP TALK
A round-up of supermarket news and gossip
changes are significant for all stakeholders in our business but we are facing the reality of the situation. Our recent performance gives us confidence that when we pull together and put the customer first we can deliver the right results.” Waitrose has reported a 6.5% increase in total divisional sales for the two weeks to 27 December. Its Christmas cheese range rose by 38.8% for the Christmas week, with top tier cheeses also up by 35.7%. Champagne sales grew by 14% compared to the previous year, while sparkling wine and whisky were also up by 20% and 22% respectively. Turkey sales continued to be strong and were up 10.9% for the Christmas week, while sales of frozen lobster increased by 51%. Marks and Spencer has reported a strong performance in food sales in its third quarter interim management statement for the 13 weeks to 27 December 2014. Overall food sales were up by 2.8% and by 0.1% on a like- for-like basis. Food sales during
the Christmas week increased by 17%. However, sales of general merchandise in the third quarter fell by 5.7% on a like-for- like basis. Asda is extending its food redistribution initiative to target food waste created by UK food manufacturers and is calling for other retailers to do the same. Charity FareShare hopes that this commitment will result in the diversion of an extra 2600 tonnes of surplus fresh food that would otherwise become waste from Asda’s supply chain. FareShare believes this could create six million more meals for people who seek the support of charities nationwide.
According to FareShare, a major barrier for suppliers to donate their surpluses is the cost of transport. Asda has now committed to £200,000 which will help provide enough transport for 2,600 tonnes of food so that FareShare can meet the increased demand from its 1,700 charities.
Asda has been working with IPL to trial diverting its
production level food surplus at its Normanton factory in Yorkshire to Fareshare. Asda’s chief merchandising officer for food, Barry Williams, said: “It’s unacceptable that anyone is experiencing food poverty in this country. We’re therefore immensely proud that through our FareShare initiative Asda has so far managed to provide over two million meals for people who are in dire need. But, we recognise there’s still more for us to do, and by creating a way for manufacturers to send their food waste into our network; we can help FareShare supply up to six million more meals.” Meanwhile, the Co- operative’s Porthcawl store in Wales has taken part in a two-month pilot programme as part of the Love Food Hate Waste campaign. The campaign has received support from the Welsh Government in a bid to help families to reduce food waste and save money. At the Porthcawl store more than 500 customers pledged to make changes to the way they use and store food – which could save families up to £700 each year. Love Food Hate Waste is now undertaking further detailed research into consumer awareness, behaviours and attitudes to food waste and food packaging – the findings are expected to be revealed in late spring 2015.
According to the BRC- KPMG Retail Sales Monitor for November 2014, UK retail sales grew 0.9%, on a like-for-like basis from November 2013, when they had increased 0.6% on the preceding year. On a total basis, sales were up 2.2%, against a 2.3% rise in November 2013 – the best performance for three months.
Smith Brothers Stores ACR News February 2015 Visit ACR News online at
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