NEWS ShopTalk O
nline grocer Ocado has forecast higher costs and renewed losses as it ploughs money into its business of building robot-operated warehouses for other retailers.
sides expect to become operational this October.
The group has reported a £9m pre-tax loss for the six months to June 3, while saying that it would invest £210m this year, up from £160m in 2017.
Ocado, which has only achieved a pre-tax profit twice in 17 years, also said that adjusted earnings from its ‘solutions’ division that builds its robot warehouses would decline as it planned to spend an extra £4m on an associated technology platform. In the half-year to June, the solutions division lost £2m on this adjusted basis. Ocado has signed five deals to build warehouses for international retailers, including one inked in May with US supermarket chain Kroger for 20 automated customer fulfilment centres. Ocado is also upgrading its UK distribution centres and software platform, investment which the company said would weigh on earnings this year.
T
esco and Carrefour have formally entered in a long-term strategic alliance, which the two
6 September 2018
The two largest supermarket groups in Europe have joined forces in order to force supplier prices’ down, in an effort to cut costs as they step up their assault on Germany’s discount grocers Aldi and Lidl. The British and French retailers today reiterated their statement made last month, confirming they plan to combine their market strength to jointly purchase own- brand products and other goods as part of a long-term tie-up that will initially run for three years. The deal is not expected to draw the attention of competition authorities, given the lack of overlap in the pair’s respective trading territories.
F
ood from the supermarket chain Iceland is to be sold in home and garden store The
Range.
The new ‘strategic alliance’ will initially be introduced in three stores in the Midlands and Liverpool areas.
partners’ while The Range called the alliance ‘unique’.
Frozen food store Iceland, which employs more than 700 people at its Deeside base in Flintshire, saw sales rise by 8% to more than £3bn last year.
It was also named the UK’s top supermarket for customer satisfaction for the first time this year. Iceland chairman Sir Malcolm Walker said: “The ethos of The Range – to bring our customers great quality products at the most competitive prices – is absolutely identical to Iceland’s, so I feel that we make natural partners in this new alliance.
“We look forward to make our unique food range available to more customers in a new type of location, where we hope that we can extend our appeal by reaching people who have not shopped at Iceland before.”
R
In a joint statement the companies said plans for a further roll-out of the ‘store-in-stores’ concept will follow.
Iceland, which is based in Wales, said the two chains were ‘natural
etailers in northern England and Scotland could be the owner of a Budgens, as the symbol group announces plans to expand further up the country.
The full Budgens range is now available in a Booker Retail Partners depot in South Yorkshire, which has allowed it to attract retailers in new areas. In the past year, Budgens has opened 80 new stores in 12 new areas, including York, Manchester and Newcastle.
Mike Baker, Budgens brand director at Booker, said there were ‘pockets’ of the country that they were unable to reach before the move that were right for the brand. Mr Baker added: “Value is more
important in some areas than others. We can deliver that but still be true to what Budgens is – a focus on fresh and meal for tonight.” Phil Whittaker, owner of
Whittaker’s Budgens in Gilberdyke, Yorkshire, switched to Budgens in January after being with Costcutter for 32 years.
He said: “My main issue before was that I had nothing to offer my shoppers for an evening meal. Now I don’t have that problem and ready meal sales are up by 300%.”
M
cColl’s announced a hit to profits following the collapse of supplier Palmer & Harvey,
as its finance boss stepped down. Chief financial officer Simon Fuller has quit the convenience retailer to take up the equivalent role at Reach, the recently-rebranded Mirror Group publisher.
Figures for the first half of this year showed that like-for-like sales fell 2.7% in the 26 weeks to 27 May. However, total revenue was up 19.2% to £601.7m due to the acquisition of 300 convenience stores.
Pre-tax profits came in at £2.3m, down from £4.5m due to adjusting costs including the Palmer & Harvey collapse, a store closure programme, and a health and safety fine.
www.acr-news.com
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