Fresh & Easy files for bankruptcy | Wakefern Food sales up

Russian retailers are adapting to a new model of consumer behavior
According to the Ministry of Economic Development, Russian retailers are adapting to the savings pattern of behavior of Russian consumers, as the market is still in a difficult situation, reports 1prime.ru. "The slowdown of the dynamics of retail trade turnover in the first nine months of this year, is primarily due to adjustments of households' changing consumer pattern from consumption to savings," it says in the report. September 2015 saw a 10.4% decline in retail trade turnover of food products, compared to September 2014. The decline in real disposable income and the increase in food prices has meant that consumers are more cautious. The report also states that the effect of the trade embargo has been exhausted as consumers have found alternatives and the study’s authors allege that more than 50% of Russians do not notice a change in the range on supermarket shelves.

Investor Burkle's Fresh & Easy grocery chain files for bankruptcy
Fresh & Easy filed its second bankruptcy in two years on Friday after billionaire Ron Burkle was unable to turn around the West Coast grocery chain, which is in the process of closing down. Burkle's Yucaipa Cos investment firm agreed to acquire more than 150 Fresh & Easy stores out of the chain's 2013 bankruptcy. British grocer Tesco Plc launched Fresh & Easy in 2006 with many industry analysts expecting the deep-pocketed company to challenge the dominance of Wal-Mart Stores Inc . However, the poorly timed move centered on the U.S. Southwest just as the region's overheated housing market was slumping. Tesco provided Yucaipa with $120m to help fund the acquisition. Fresh & Easy's website on Friday was topped with a banner proclaiming "Everything must go!" and "All Stores Closing!" (Reuters)

Retail internationalisation expected to rise over next five years
The Consumer Goods Forum and Planet Retail have launched a new report detailing global trends in international trade. Going forward, the report suggests that the rate of internationalization will improve over the next five years and for the top 100, the percentage of international market sales is predicted to grow from 24.4% in 2014 to 26.7% by 2020. Peter Freedman, Managing Director of the Consumer Goods Forum said, “This report shows that FMCG retailers need to think globally if they’re going to grow and prosper." The report, released on 29 October, said that international trade still has an important part to play in grocery, health and beauty, accounting for 35.3% of total sales for the top 10 players. (esmmagazine.com)

Morrisons becomes first supermarket to donate all unsold food
Morrisons will become the first supermarket to donate all unsold food to community projects. The supermarket chain has announced plans to roll out the initiative next year, that aims to end the waste of edible food in its 500 supermarkets. These include stores in Lincoln, Louth, Gainsborough, Grantham, Skegness and Boston. It follows a trial in more than 100 stores in Yorkshire and the North East that will be extended to all stores during the early part of 2016. An estimated 15m tonnes of food is thrown away in the UK every year, by supermarkets and in households. (ibtimes.co.uk)

Uganda: Uchumi set to return next year
Troubled supermarket chain Uchumi, has announced it will reopen its closed branches in Uganda and Tanzania in a year's time. Uchumi closed operations in the two countries this month. Group CEO Julius Kipng'etich told an insurers' meeting in Nairobi last Friday that the company had been making losses in Uganda and Tanzania and that it was finding it hard to pay suppliers. (allafrica.com)

Value of Italian supermarket purchases on the rise
Italy is experiencing a change in food retail sales with the value of the average supermarket basket growing at a faster rate than volume, reports Italian daily Corriere della Sera. What is even more reassuring for the retailers is the increase in value of the average basket after years of decline, as consumers are looking for quality products at a low price. However, the recovery is not the same in all regions. It started in the wealthier northwest, moving to central and northeast Italy and is now gradually spreading in the south and islands. Supermarkets with sales areas between 1,500 and 4,500 m2, as well as discounters and chains with low-priced 'no name' products, have both seen growth over 4%. Specialised stores dedicated to organic products are also reporting positive results. On the downside, hypermarkets and self-service shops are seeing a drop in sales. (esmmagazine.com)

Latin-America: PriceSmart sales up
Latin American wholesaler PriceSmart has reported a 13% increase, year-on-year, in warehouse sales for Q4 fiscal 2015. Full year sales were up 11.3%. Sales in Central America were up 11.2% for Q4. A new club opened in Panama bringing the total to five; there are 20 in Central America as a whole. Fourth quarter sales increased 6.2% in the Caribbean region where PriceSmart now has 11 clubs. (igd.com)

Ukrainian grocery delivery service enters the U.S.
Zakaz.ua, Ukraine’s leading online grocery delivery operator, has launched its service in Boston, under the CartFresh brand. Russo’s, a family-run market known for its fresh fruits and vegetables and cheese selection, has teamed up with the startup to expand its customer base, reports Beta Boston. The Ukrainian startup landed in Boston several months ago as a participant in the startup accelerator program Techstars. “We want to expand the best retailers to a wider geographic area,” Beta Boston quoted Zakaz.ua founder Yegor Anchishkin as saying. “We have to find the best retailer in every category.” (internetretailer.com)

Roundy's partners with Canadian province
Milwaukee grocery chain Roundy's Inc. is partnering with Québec to bring branded and private-label food and drink from Canada's largest province to its Chicagoland Mariano's Fresh Market stores in 2016. (bizjournals.com)

US: Wakefern posts annual sales gain
Wakefern Food Corp. on Thursday reported retail sales of $15.7bn for the 53-week fiscal year ended Oct. 3, a 6.7% increase from last year, and $12.8bn in wholesale sales. The member-owned co-op announced the figures during its annual meeting in East Brunswick, N.J. (supermarketnews.com)

US: Wakefern's Mottese wins NGA award
The National Grocers Association said Friday it has presented its Clancy G. Adamy Great American Award to Lorelei Mottese, director of government relations for Wakefern Food Corp., Keasbey, N.J. The award, which recognizes outstanding service in government relations, is named in honor of the late president of the National Association of Food Chains, one of NGA’s predecessor associations. (supermarketnews.com)

China: Alibaba links up with Dutch brands
The Netherlands has become the latest nation to attract the attention of Alibaba as the Chinese ecommerce giant ramps up its global ambitions with a series of deals with Dutch companies. Alibaba, which is opening up its Tmall Global online marketplace to make it easier for foreign brands to sell in China, announced the launch of a Holland "pavilion" on the site that will feature a range of popular Dutch brands, Inside Retail Asia reported. Agreements have been signed with major Dutch retailers Royal Ahold, Albert Heijn and Attent. (warc.com)

Tesco’s Turkish chain Kipa celebrates its 23rd birthday
The retail chain Kipa, which was first established in Izmir in 1992, is celebrating its 23rd birthday, reports hurriyet.com. Its CEO stated in the birthday message: "Kipa started the modern retail experience in Turkey and since the first day as a brand, it has made it a priority to provide customers with a pleasant shopping experience. In such a dynamic sector as retail, we are aware of how difficult it is to maintain such long-term success. Celebrating 23 years of the past to the present in retail space in Izmir, in the Aegean and in Turkey, bringing together many innovations, we continue to look with confidence to the future of Kipa,” he said.

French retailer wants to sell Romanian products abroad
French group Auchan wants to sell over 300 Romanian products in three European countries next year. The company estimates that it will work with 100 local suppliers and the generated turnover will amount to €5m. The retailer is already applying the plan in Italy. Auchan also ponders expanding with two new store formats in Romania. Both formats are small and are created for large cities. The company could bring in Romania the Simply supermarkets, which the retailer has been operating in France starting 2005. In Romania, these stores would cover about 1,500 sqm. Auchan could also launch online sales starting next year. (romania-insider.com)