Growth, speed, expansion
Focus topic of the newsletter E-Scanner of the Private Label Manufacturers Association is the expansion of retail players and the monitoring of changes. Growth is generated by acquisitions, online expansion and new ideas.
Carrefour expands abroad
Carrefour is starting the integration of the 172 stores that it acquired from Supersol in Spain, now that it has the approval of the Competition authorities. The stores are mainly located in Andalusia and Madrid and they will be converted to Carrefour’s Express, Market and Supeco banners this year. With the acquisition, Carrefour accelerates its growth strategy in Spain and at the same time diversifies its store network with a stronger presence in the proximity channel.
Across the Atlantic, Carrefour has bought Grupo Big Brasil, the third largest food retailer in Brazil. The agreement comprises 387 stores and the retailer is valued at approximately 1.1 billion euros. The deal strengthens Carrefour’s leadership in Brazil. The two retailers have strong geographic complementarity. Carrefour can, thus, extend its presence in regions where it has limited penetration. The retailer plans to convert Grupo Big’s stores to its Atacadão, Sam’s Club and Carrefour hypermarket banners.
The two groups have combined sales of around 153 million euros, operate 876 stores and employ around 137,000 people.
Marks & Spencer widens online reach
British retailer Marks & Spencer is going to launch websites in 46 new markets in a bet to revive its international business. The company said the expansion into nations from Nepal to Bolivia and Uzbekistan would extend its online reach to more than 100 countries in a cost-effective way.
The company has seen strong online growth since the pandemic, with e-commerce sales up 75%. It has created an “adaptable” website platform designed for international sales. The online channels have been translated into ten additional languages and currencies and orders will be fulfilled using the existing M&S distribution network. The push will allow the retailer to “explore underlying demand in these markets without significant upfront investment,” international director Paul Friston said in a statement.
In the UK, Marks & Spencer formed a joint venture with Ocado last year, making the full M&S Food range of 6,000 products, and 800 M&S everyday clothing and home lines available online through the Ocado platform.
Kaufland grows in Eastern Europe
Schwarz-owned hypermarket operator Kaufland tripled the growth rate in its priority markets Romania and Poland last year. It was able to achieve a profit that was more than twice as high as the profit of any other hypermarket chain in the region.
The retailer is increasing the pace of expansion in Romania and opened 14 new hypermarkets last year. It is the biggest retailer in the country in terms of turnover, with close to EUR 2.5 billion in sales in 2019. With over 15,000 employees, it is one of the largest employers in Romania.
In Poland, it opened 12 new stores, including seven stores that it took over from Tesco. In addition, Kaufland expands its online offer from eleven to 17 cities in the country through the partnership with fast deliverer Everli. Orders can be placed 7 days a week with the option to have it delivered in three hours. Orders are processed in-store and delivered to customers within eight kilometers.
Gorillas’ Faster Than You
Gorillas, the German startup that operates a chain of dark stores that offer fast grocery delivery in residential areas, has a motto of “Faster Than You.” In addition to offering super-fast delivery by trendy riders, it is also expanding fast: In a little over ten months, Gorillas has expanded to more than twelve cities, including Amsterdam, London and Munich, and built up more than 40 micro fulfilment centres.
The company’s service is available in Germany, the Netherlands, Italy and the UK and is expected to launch in France any time soon. Gorillas’ app gives customers access to more than 2000 essential items at retail prices in only 10 minutes.
Gorillas „Happy Community”, which was founded less than a year ago, raised a 244 million euros round of funding last month. Its valuation currently exceeds one billion dollars, which already gives it the status of unicorn. The company is considering introducing a private label.
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