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Coop Alleanza 3.0 is born, operational from 1 January

 

The merger between Coop Adriatica, Coop Consumatori Nordest and Coop Estense which will give rise to Coop Alleanza 3.0, the largest Italian cooperative, present in 12 regions, with 419 stores including 56 hypermarkets, 22 thousand workers, 2.7 million members and a total sales turnover of 4.8 billion euros, has now been almost completed. A few days ago, the names of the three Managing Directors of the new company were presented: Paolo Cattabiani, Chairman of Coop Consumatori Nordest (will be responsible for Finance and Development), Adriano Turrini, Chairman of Coop Adriatica (who is also Chairman, will be responsible for Central Services and Social Policies) and Massimo Ferrari, Managing Director of Coop Estense (will be responsible for Operations).

“We have become bigger to be more efficient and respond to new needs. Eight years of crisis have left the country with poorer and more attentive consumers, with new and different needs – said Turrini: – we want to offer these consumers new products and services that satisfy them”. “Our ambitious idea – continued Cattabiani – is to be a cooperative that not only satisfies but is able to anticipate new needs. We want the store to become a place where members can find a range of services that they cannot find elsewhere: it will be a great competitive advantage and a great satisfaction for the customer at the same time”. The new Coop will adopt the best practices in recent years from the founding Coops: “We need to broaden the scope of our mutuality to give customers more”. More attention will be given to loans from members, with a supervisory body and a new regulation envisaging liquidity of not less than 30% of the loan raised from members and a fixed asset loan not exceeding 30% of the loan raised from shareholders.

“Coops – said Mario Zucchelli, Chairman of Coop Estense, who together with Turrini and Cattabiani managed the merger – have gone from 2,878 in 1985 to 408 in 1998 and 97 in 2014, of which 9 large ones”. Perhaps dictated by the times, even if “diversity is a value and it is not a forgone conclusion that what is being done with these three cooperatives will be replicated,” said Stefano Bassi, Chairman of ANCC-Coop attending the meeting.

“The bigger you are, the more responsibility you have – concluded Cattabiani – and there will be many of us managing it. In addition to the wealth we produce, from Sicily to Friuli, we must be careful how we produce it, pay attention to jobs, relations with suppliers and how we transfer this wealth”.

Dirk promotes itself with a floating supermarket

Take advantage of an event in Amsterdam that attracts hundreds of sailing and other boats and thousands of people to promote its supermarkets: that is what the Dutch retailer Dirk van den Broek did during Sail 2015 last 19 to 23 August. The idea, borrowed from the river markets of the East, was to create a “floating (and self-propelled) supermarket”, with each boat containing a single product (water, bananas, snacks) that was offered to the spectators on boats or along the banks of the canals in the centre of Amsterdam. Success (at least from the media point of view) assured.

The Dutch retailer is not new to “smart” promotions: last May, in the aisles of a store in the Dutch city, it set up a discotheque (at night) where visitors could dance and at the same time buy biscuits, drinks or whatever.

Dirk van den Broek during Sail 2015 last 19-23 August, set up a (mobile) “floating supermarket” on the canals of the Dutch city.

Carrefour focuses on online and non-food, acquiring the Rue du Commerce website

Carrefour France, which has announced that it is in “exclusive negotiations” with Altarea Cogedim for the acquisition of 100% of Rue du Commerce, is expanding its multi-channel strategy. The website www.rueducommerce.fr, specialising in consumer electronics, has 5 million individual visitors per month and a turnover of 317 million Euros in 2014, and would also allow the French retailer to “reinforce its presence in e-commerce and non-food, thanks to the support of skills complementary to its own “as stated in a press release.

Non-food currently accounts for 20% of Carrefour sales. The intention is to strengthen the sector by developing the website which hosts third party manufacturing companies and receives a percentage of the sales.

The acquisition, subject to the approval of the anti-trust authority and after consultation with the unions, should take place at the beginning of 2016.

Fight against food waste and the grocery industry: what retailers are doing in Europe

After France, even Europe could come to pass a law to force large-scale distribution to take care of food products discarded because, for various reasons, they are unsellable. But many European retailers have long since embarked on internal initiatives and awareness campaigns to address the issue. An overview of the actions put in place in the field is made – with a wealth of case histories – by the 2014 “Retail Agreement on Waste” report by Eurocommerce, which includes the trade associations of the Old Continent, and European Retail Round Table.

In 2012, 20 retailers from various segments, from clothing to food, from furnishings to consumer electronics, adhered to the Retail Waste Agreement, pledging, by the middle of 2014, to put in place at least two awareness campaigns against waste addressed to the end customer. Recently, another six retailers signed the same agreement. The initiative took place within the Retailers’ Environmental Action Programme (REAP) supported by the European Commission.

Below are the types of initiatives put in place and the segments covered. The full report can be downloaded here.

Consumer “Tips”. Recipes for using leftovers, information on how to manage the cold chain (starting with, simply, as El Corte Inglès does, how to transport frozen food from the store to the home, how to arrange food in the fridge and how long it lasts once opened), through leaflets, house organs, social media or in-store posters. Asda last year launched the Simply Roast in the Bag packaging, a bag for roast chicken on which recipes and tips on how to use the leftovers were printed, and a QR Code which referred to the website with videos and recipes. Albert Heijn distributed a million “measuring cups” to dose the right amount of pasta and rice. The Dutch Vak Centrum invites customers to take fresh produce with the closest expiry date if they know they will use them in a short space of time; the habit of selecting the product with the longest expiry date increases waste.

 

How to educate the supplier. Carrefour France has created an award for the most virtuous supplier. The jury is composed, in addition to retailers, of the Ministry of the Environment, WWF and a pool of journalists.

Sustainable promotions. The classic 2 for the price of 1 promotions have been put on trial because they lead consumer to buy more, increasing the risk of waste, especially of food with expiry date. Some chains have decided to ban them. Auchan in French hypermarkets has taken a third route: “deferred” two for the price of one. For one week a month, when buying the first product, the customer gets a voucher to pick up the second a week later. Of the 100,000 of coupons distributed each month half are used.

Ugly but good. Billa in Germany has created the “Wunderlinge” brand for fruit and vegetables with strange shape but perfectly good.

Circular economy. That is, what is produced is recycled and reused. Lidl in Germany recycles 50% of PET bottles of its Saskia and Freeway brands. Rewe is increasing the percentage of plastic recycled and withdraws on site the packaging of Frosch-Cleaning products. The Dutch restaurant Instock uses unsellable products (imminent expiry dates, damaged packaging) picked with electric vehicles from Albert Heijn supermarkets. Since last summer, it has already “saved” 20,000 portions.

Packaging counts. Coop Denmark has decided to sell bananas individually because the pack, even if it contains only one marked banana, as often happens, is not purchased, and six thousand bananas a day were thrown away. Coop UK has discovered that the holes in the packaging of fresh produce to reduce internal humidity, if managed by a laser guided by a computer, allow the shelf life to be extended by one day with a consequent reduction in waste. Coop Norway has indicated on bags and packs the percentage of waste of fruit and vegetables, but also in packaged food the waste of that particular product.

Raising staff awareness. 75% of employees in the Carrefour head office in Poland have followed a program on how to reduce energy consumption at home and at work.

Learning while playing: quizzes, games, contests. Carrefour has put on line a questionnaire to determine energy consumption: the first drawn won an energy-efficient dishwasher. Ikea in the Czech Republic has invited customers to create objects out of waste material. The creators of the best projects participated in a course held by professional designers. The proceeds from the sale of the items went to charity. Many courses and competitions involve schools.

How to educate the supplier. Carrefour France has created an award for the most virtuous supplier. The jury is composed, in addition to retailers, of the Ministry of the Environment, WWF and a pool of journalists.

Sustainable promotions. The classic 2 for the price of 1 promotions have been put on trial because they lead consumer to buy more, increasing the risk of waste, especially of food with expiry date. Some chains have decided to ban them. Auchan in French hypermarkets has taken a third route: “deferred” two for the price of one. For one week a month, when buying the first product, the customer gets a voucher to pick up the second a week later. Of the 100,000 of coupons distributed each month half are used.

„Wunderlinge“ bei BILLA, MERKUR und ADEG: REWE International AG stellt neue Eigenmarke für nicht-konformes Obst und Gemüse vor

Ugly but good. Billa in Germany has created the “Wunderlinge” brand for fruit and vegetables with strange shape but perfectly good.

Circular economy. That is, what is produced is recycled and reused. Lidl in Germany recycles 50% of PET bottles of its Saskia and Freeway brands. Rewe is increasing the percentage of plastic recycled and withdraws on site the packaging of Frosch-Cleaning products. The Dutch restaurant Instock uses unsellable products (imminent expiry dates, damaged packaging) picked with electric vehicles from Albert Heijn supermarkets. Since last summer, it has already “saved” 20,000 portions.

Nielsen: consumers are changing, smaller stores are becoming more popular

“Channel hopping” is a well-established practice in the new multi-channel consumer, who easily goes from discount stores to supermarkets, from the farmers’ markets to online stores for his purchases, but with which rationale? Investigating the intricacies of the mind of this new anthropological species is the latest Nielsen retail and e-commerce “The Future of Grocery” survey, carried out on 30 thousand consumers in 60 countries. Which also it reveals that, while the large stores for now remain dominant, small stores (and it is no surprise: we see it also with our neighbourhood supermarkets) are the most dynamic. In terms of value, super and hypermarkets account for 51% of global sales. The survey highlights the regional differences, but the smaller stores, small supermarkets and traditional stores, have grown more in the last 12 months (4 to 6% compared to 2% for the larger stores). “Worldwide we are seeing the growth of neighbourhood retailing – said Patrick Dodd, President, Global Retailer Vertical, Nielsen – In the eyes of the global consumer, at the moment, small is beautiful”. The influence of e-commerce on the concept of proximity and convenience is evident, but the fact remains that the smaller stores are growing in all markets, developed or developing, and are mainly used for small urgent purchases or particular products. It is therefore interesting to consider how the product category in fact influences the choice of channel for “physical” shopping. In mature markets, where 61% of sales in large stores are concentrated on personal hygiene products, 62% on food and beverages and 79% on household products, convenience stores have interesting market shares of approximately 20%. In all three categories, the highest growth was recorded in small stores, with a tendency to fragmentation. In the food sector, it is precisely traditional stores and kiosks that are meeting the needs of speed and convenience. Price above all, but also product quality influences “channel hopping”. “Large supermarkets and hypermarkets are important players in the global retail landscape, and will continue to be so in the future – said Dodd -. But smaller stores have an important share in certain categories and are growing in others. Distribution efforts should focus on a mix of both, understand where the consumer buys and for which categories, provide the necessary insight to develop more precise distribution strategies for each market”.

Esselunga puts away a positive 2014 and boosts investments

2014 closed for the Esselunga Group with sales in line with the previous year at 7.013 billion euros (+0.8%) despite a deflation of 1.6% in retail prices and a general downturn in the market in large-scale distribution. EBITDA was up by 3.2% at 521 million euros and EBIT by 2% at 335 million euros. Net profit amounted to 212 million euros (210 in 2013)

The proximity of Esselunga to its customers, which grew by 8.5%, is confirmed, according to the statement issued by the company following the Board of Directors meeting.

Investments, which amounted to 400 million euros, were significant, bringing those made in the past five years to 1.8 billion euros. In 2’014, in fact, new stores were opened in Calco (Lecco), Aprilia, Milan Porta Vittoria, Novara, Prato Leonardo, Parma via Emilia Ovest, Saronno (Varese), Florence Galluzzo and Marlia (Lucca), as well as the logistics hub in Campi Bisanzio (Florence).

In the course of 2015, further development of the sales network is envisaged and has already begun with the opening of the 150th store in Milan in Via Adriano, on the site where the warehouses of Ercole and Magneti Marelli once stood.

For an analysis of the economic and financial performance of Esselunga 2013 with a projection for 2014 and 2015 you can buy the inStore Report prepared by DGM in PDF format directly from here at the price of €79 + VAT. The Report is in italian.

Carrefour tests the scanner to shop online (in Belgium)

After Izy, the system adopted by Chronidrive/Auchan, Carrefour Belgium is testing its version of the scanner to shop online, from home, and have it delivered or for in-store collection: Connected Kitchen. The “connected kitchen” lets you make a shopping list in real time by scanning the bar code or dictating the product to the device. The database has 1.3 million codes available, including those of the “competition”, for which alternatives among the 17 thousand items in the e-commerce basket of Carrefour will be proposed. The device, under testing from April, will then be made available to customers.

 

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