Retail Week
August 26 2011
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7-Eleven expands its network of stores
Seven & I-owned convenience chain 7-Eleven is expanding its network of stores by acquiring 51 ExxonMobil Corp stores in Dallas, Texas. Financial terms of the deal are not available, though the transaction is expected to close towards the year end.Under the conditions of the pending deal, the stores will continue to sell Exxon fuel and 7-Eleven will own and operate the accompanying retail stores. 7-Eleven also plans to offer jobs to the ExxonMobil workers employed in these locations -
90% of shoppers expect food prices to go up in next year
90% of shoppers expect food prices to be more expensive in the year ahead and will use different retailers and store sizes in a bid to get the best prices. -
99p Stores to launch in Ireland with €uro 50 Stores format
99p Stores is to launch in Ireland next month adopting a price-capped business model and trading as €uro 50 Stores. -
A familiar looking fascia
We spotted a familiar looking fascia while out in north London. -
Ahold sells its ICA Maxi hypermarkets and superstores
The board of Ahold’s Norwegian ICA operations has decided to sell its ICA Maxi hypermarkets and superstores. The retailer plans to concentrate its Norwegian operations on discount store chain Rimi and the ICA Supermarket concept. This means ICA Norway will initiate a sales process for the company’s ICA Maxi stores. In 2010 the ICA Maxi stores posted sales of NOK3.04bn (£337.2m). -
Alexon Group in takeover talks as it issues profits warning
Alexon Group is considering possible takeovers of the company as it issues a profits warning. -
Bargain Booze up for sale with £100m price tag
Bargain Booze has been put up for sale by its private equity owners with a price tag of up to £100m. -
Best Buy to take on Amazon with the launch of its US marketplace
Electricals giant Best Buy is launching an online marketplace in the US to help it compete with internet rival Amazon. -
Boris asks big retailers to back High Street Fund
London mayor Boris Johnson has urged big retailers to pledge money towards a fund being set up to help small businesses affected by the riots. -
Businesses set up further High Street Fund for riot hit retailers
A further nationwide High Street Fund has been set up to help small business affected by the riots that hit England this month. -
Can suppliers dictate retail prices?
Is it possible for a supplier to dictate the price at which I can sell its goods? -
Carrefour not looking to sell Brazil unit
International grocery chain Carrefour is not looking to sell its Brazil unit, Carrefour chief executive Lars Olofsson said. “Carrefour in Brazil is not for sale. I’m not talking with Walmart,” Olofsson said.Last week, French newspaper La Tribune reported that Walmart had hired financial services company UBS to advise -
CBI reports fall in August retail sales volumes
Retail sales volumes fell year-on-year in August at the fastest pace for more than a year -
Cheese maker’s taste a bit of a blur
Blur bassist turned farmer Alex James has churned his hand at a range of cheese for Asda, but we suspect his years of partying may have taken their toll on his inventions. -
Confidence in our cities won’t return overnight
The launch of the High Street Fund to support small retailers affected by the riots is a welcome initiative. -
Consumer confidence slides to recessionary low
Consumer confidence fell in August back to its level in April and only matched during the turbulent periods of 2008/09 and in early 1990. -
Co-op profits and sales hit by tough climate
The Co-operative Group has suffered a fall in first-half profits and sales in retail conditions described by chief executive Peter Marks as “the worst I have seen in over 40 years”. -
Couche-Tard signs agreement to acquire 33 stores
Retailer Couche-Tard has signed an agreement through its Circle K subsidiary to acquire 33 stores in southern Louisiana from ExxonMobil’s On the Run banner. The deal is likely to close in December. Sites will be converted to the Circle K brand while continuing to sell Mobil-branded fuel. Jason Broussard, vice-president of operations, Gulf Division, said: “Our network in the Circle K Gulf division would include 318 company-operated stores occupying strategic locations within their respective t -
Countrywide seeks acquisitions as sales rise
Rural specialist Countrywide is on the look-out for acquisitions after maintaining retail profitability and increasing sales last year. -
Crate & Barrel to start brand building as it prepares for first UK store opening
US furniture giant Crate & Barrel is to start brand building and will launch a UK website as it prepares to open its first store in the country. -
Credit insurers put value clothing retailers on watch list
Value clothing retailers are coming under increasing scrutiny from credit insurers as trading conditions remain tough. -
Debenhams to preserve Clapham riot boards
Debenhams is to preserve the boards displaying messages of support erected during the riots earlier this month to demonstrate how the British public rallied round during the looting. -
Dollar Tree reports second quarter results
Discount chain Dollar Tree has reported its results for the second quarter ended July 30. Consolidated net sales increased 11.9% to $1.54bn (£935m) compared with the previous year, while like-for-like sales increased 4.7%. Based on estimated comparable sales growth, Dollar Tree anticipated third quarter sales to range between $1.56bn (£947m) and $1.6bn (£972m). Dollar Tree opened 76 stores, closed 11 stores and expanded or relocated 23 others during the period. The retail footprint increased -
Downturn finds H&T enjoying expansion
Pawnbroker H&T has given the green light to store expansion after its half-year profits jumped. -
Families £11 a week worse off in July according to Asda Income Tracker
UK families were £11 a week worse off in July 2011 than they were a year ago according to the Asda Income Tracker. -
Fat Face returns to premium roots as it eyes international expansion
Fat Face wants to show off its quality credentials with the launch of a premium collection as it eyes international expansion. -
Floors 2 Go collapses into administration
Specialist retailer Floors 2 Go has been put into administration and part of the business has been bought by a new company. -
Funky Pigeon trial stores open
WHSmith has opened its first three Funky Pigeon shops, selling stationery and greetings cards. -
Garden Centre Group buys Country Homes and Gardens
Garden Centre Group has bought 12-store counterpart Country Homes and Gardens for an undisclosed sum. -
Goldsmiths launches new boutique format
Jeweller Goldsmiths launches its new boutique format in Stratford City in September featuring jewellery vending machines and a ‘chill-out zone’. -
Grocery retailer Target looks for future growth
Grocery retailer Target is to look to urban formats, international expansion and ecommerce for future growth with the aim to reach $100bn (£60.72bn) in annual sales by 2017.Chief executive Greg Steinhafel told investors in New York that Target has identified “hundreds” of potential trade areas for its new CityTarget format, which is debuting in four markets next year. Target will evaluate the results at five pilot stores before rolling the concept out to new markets.Its Canadian -
Gross sales rIse at Lotte Shopping
Lotte Shopping’s gross sales rose 20.3% to SKW5.5trn (£3.1bn) in its second quarter for 2011. Operating profit rose by 8.1% to SKW437bn (£243.8m) while net profit soared by 17.1% to SKW301bn (£167.9m).For the first six months, gross sales climbed 23.8% to SKW11.2trn (£6.25bn). In terms of sales, the group’s Lotte Mart hypermarket division experienced a sales rise of 21.1% during the period. Department store sales growth was not far behind at 17.9%. -
Harvey Nichols close to signing beauty sites
Harvey Nichols is close to signing its first new format Beauty Bazaar shops as it eyes store numbers in the double-digits. -
Harvey Nics and Mulberry in talks to create upmarket Stratford walkway
Luxury stores Harvey Nichols and Mulberry are in talks to open shops in the walkway to the Olympic Stadium in Stratford. -
High Street Fund attracts just 25 applications
The High Street Fund, set up to help small businesses affected by last month’s rioting, has had applications for funding from just 25 shop owners. -
HMV ads to highlight technology offer
HMV will be launching a new advertising campaign this weekend to push its technology credentials for the first time. -
HMV’s groovy past
We’re indebted to blogger Voices of East Anglia for some fantastic pictures of HMV’s Oxford Street flagship in the 1960s. -
Home Retail shares dip as broker sounds alarm
Shares in Argos-owner Home Retail took a hit as broker Seymour Pierce switched its stance from hold to sell and argued a restructuring of the catalogue store business was likely. -
How can in-store radio enhance the retail environment?
How can we ensure our in-store radio is enhancing our retail environment and working to the best effect? -
Ikea Foundation donates $62m to East Africa relief effort
The Ikea Foundation has donated $62m (£38m) towards the relief effort in East Africa. -
In pictures: M&S drafts in new celebs to front brand ad campaigns
Marks & Spencer has drafted in new celebrity faces to front print, in-store and online campaigns which focus for the first time on brands including Autograph. -
In pictures: Ocado's virtual shopping wall goes live
The integrated window display at London’s One New Change shopping centre allows shoppers to purchase groceries on their mobile phones, then have them delivered to their door. -
International growing pains
Retailers face a multitude of supply chain challenges as they expand beyond their home market. Rebecca Thomson looks at how retailers are tackling some of these issues -
It’s time for zero tolerance
The authorities have turned a blind eye to retail crime for too long, says Malcolm Walker -
John Lewis revamps electronics, home and menswear departments
John Lewis is revamping its electronics, home and menswear departments. -
John Lewis to launch fashion campaign for autumn 2011
John Lewis is to launch an outdoor and press campaign for its autumn 2011 fashion on September 5. -
John Lewis to use Waitrose stores to double its click-and-collect network
John Lewis is to double the size of its click-and-collect operation by adding an extra 60 Waitrose branches to its network of stores at which customers can pick up goods. -
Keeping it in the family
Family businesses have been in the news lately for reasons good and bad. -
La Senza mulls store exits
Lingerie chain La Senza is reported to be considering plans to restructure the retail business in a move that would allow it to close or sell some of its poorly-performing stores. -
Matalan to create 2,300 Christmas jobs
Value chain Matalan is to create 2,300 additional roles across its store network over this year’s Christmas period. -
Mid-Counties Co-op sells 41 c-stores
Mid-Counties Co-op has sold 41 of its News Express shops around the region to locally based operation Dave’s Discount Stores. -
Morrisons’ sales outpace rivals
Morrisons’ strong promotional stance has enabled it to increase sales faster than its rivals, according to Nomura analyst Nick Coulter. -
Need to know: The plus-size market
The plus-size customer base is growing in number but with limited choice for larger people there are opportunities aplenty for fashion retailers -
New Look launches property review
Value fashion chain New Look is assessing options for its property portfolio. -
New marketing director outlines plans to transform Clintons brand
Clintons’ new marketing boss has outlined a strategy to transform the greetings card retailer’s brand that could include party organising and Red Letter Day-type offers. -
New owner sets out stall to revamp Jane Norman
Edinburgh Woollen Mill to revive 50-year-old brand by doubling number of stores -
New river flows into Swindon
Fashion retailer River Island has trialled a new look for its store in Swindon and it is likely to be replicated elsewhere. By John Ryan -
Ocado launches 'shopping wall' at top shopping centre
Online grocer Ocado is to enable shoppers to order goods by scanning from a window display in an experimental venture reminiscent of an innovation tried by Tesco in Korea. -
Ocado urged to shelve plans for second fulfilment centre
Online grocer Ocado should abandon plans for a £210m second customer fulfilment centre until it proves that it has a viable business from its first, according to a leading broker. -
Once more unto the shops dear friends
Shopping and leisure were once synonymous in the UK. If the offer’s right, they still are. -
Peter Williams
At home with both the glamour of Selfridges and the gloom of turnarounds, Peter Williams’ latest challenge is working with Blacks. George MacDonald finds out what drives him -
PIRC advises Sports Direct shareholders to block Mike Ashley deal
Sports Direct shareholders have been urged to oppose an £86.6m property acquisition from founder Mike Ashley by shareholder representative group PIRC. -
Poundland distances itself from Poundworld
Fixed pricing, pound retailing, the round pound – call it what you like, but it seems to be everywhere I turn. -
Preparing for the golden quarter
After the dog days of August, the sector springs into action again in early September. -
Primark sees scope for 300 store openings in Europe
Value fashion giant Primark sees scope to more than double store numbers as it considers its next phase of overseas expansion. -
Reiss plans for future with click-and-collect
Premium fashion retailer Reiss is to launch a click-and-collect service and international websites in local languages as it ramps up its online offering under new ecommerce director Dan Lumb. -
Remaining TJ Hughes stores to be shuttered
The last remaining TJ Hughes stores still trading are to be shuttered, with closing down Sales commencing immediately. -
Retail shares slide along with market
General retailers were on the slide along with the market during the week, although the fall in grocers’ share prices was much less marked. -
Richard Hayes
Chief executive, Card Factory -
Riot-hit Reeves furniture business re-opens
Croydon furniture store House of Reeves, one of the most high profile casualties of the London riots, has opened for business again. -
Riots cost retailers 7,500 trading hours as 11,000 staff impacted
More than 11,000 retail staff were impacted by the riots earlier this month and store groups lost more than 7,500 hours of trading. -
Sainsbury's gears up for Halloween
Sainsbury’s is gearing up for a spooky Halloween with the launch of nightmarish ice-cream developed by the winner of a national kids’ competition. -
Sales of tablets outstrip desktops for first time at John Lewis
Tablet computers outsold desktop PCs for the first time last week at department store chain John Lewis, which posted a total weekly sales rise of 2.6% to £53.4m. -
Sears reports total revenue decrease
Sears has reported a decrease in total revenue of $125m (£75.9m) to $10.3bn (£6.25bn) for the second quarter ended July 30. The decline was primarily a result of a 0.7% fall in domestic like-for-like sales and the effect of having fewer Kmart and Sears full-line stores in operation.However, it was partially offset by an increase of $86m (£52.2m) due to changes in the Canadian foreign exchange rate. Domestic like-for-like sales results included a 1.2% decrease at Sears Domestic while Km -
Signet UK profit tumbles in second quarter
US jewellery giant Signet’s UK division saw second quarter net operating income plummet 40% to $2.8m (£1.7m) in a “challenging market”. -
Sports Direct shareholders vote in favour of controversial Ashley property deal
Sports Direct shareholders have voted in favour of a controversial deal which will see founder, and majority shareholder, Mike Ashley receive £86.8m from the company for 32 properties which he owns. -
Strong value proposition drives full-year profit at Fragrance Shop
The Fragrance Shop has reported that operating profit rose by 37.8% in its full year, driven by its strong value proposition. -
Subscription site Stylist Pick to relaunch
Online accessories specialist Stylist Pick is to relaunch its site and push the button on a TV advertising campaign this autumn. -
SuperGroup hires supply and sourcing experts to boost team
Fashion retailer SuperGroup has made two key appointments to support continued rapid growth. -
Tesco invests $45m in IT infrastructure
Tesco is investing $45m in its IT infrastructure in a bid to solve problems more quickly and improve customer service. -
Tesco looks East for funds with 'dim sum' bond issue
Grocery giant Tesco has become the first international retailer to raise money in China with the issue of a ‘dim sum’ bond. -
Tesco opens virtual store in South Korea
Tesco Homeplus in South Korea has opened what it claims is the world’s first virtual store in Seoul subway, following an initial trial in July. -
Tesco to sell its Japan business
Tesco is to sell its business in Japan as it said it could not build a “sufficiently scalable” operation. -
Tesco's Andrew Higginson to retire
Tesco chief executive of retailing services Andrew Higginson is to retire from the board and executive committee next year. -
The wrong type of customer?
Brands spend millions finely tuning their image, so what can they do when the ‘wrong sort of customer’ starts buying into them, asks Gemma Goldfingle -
Topps warns on profits as shattered consumer confidence takes toll
Topps Tiles has issued a profit warning after a steep trading downturn in recent weeks. -
Turkish discount retailer A101 attracts seven bidders
Turkish discount retailer A101 has attracted seven bidders in the first round of an auction to sell off the business. TPG and Permira are among the private equity firms that submitted bids. Credit-Suisse is running the sale process for the business, which has been valued between TRL800m (£271.7m) and TRL1bn (£339.6m). The Aydin family has a majority stake in the business. -
Vans Spitalfields, London
Blink and it’s gone and as you read this, the removal men will only be a couple of weeks away from descending on Spitalfields to empty the Vans pop-up store that has been trading on Brushfield Street since August 12. -
Waitrose vows the worst of online problems are behind it
Online scope for Waitrose.com to become more personalised following overhaul, says ecommerce boss -
Walgreens launches Nice! range to boost profitability
This week saw US drugstore retailer Walgreens launch Nice! – a range of private label food and drink items – to replace its long-standing Deerfield Farms offering and other category brands. -
Walmart launches new double-decker store
Walmart has launched a new double-decker store concept in Dallas, Texas, featuring a Walmart store on the top floor and Sam’s Club below. The store has been designed to save Walmart money by maximising the use of the land being used, while offering customers the convenience of a one-stop shop. Only half of the northeast Dallas store is open as the Sam’s Club element will debut next month. -
Waterstone's to axe 3 for 2 offer
Waterstone’s is axing its popular 3 for 2 discounts on books in one of the most dramatic changes so far under new boss James Daunt, it is understood. -
WHSmith full year to be in line with expectations
WHSmith said that it expects full year figures to be in line with market expectations. -
WHSmith launches £50m share buy-back programme
WHSmith is to run another £50m share buy-back scheme this financial year following the success of last year’s programme.
