SECTOR MUST PROMOTE HEALTH BENEFITS

Despite the fact that fresh fruit and vegetables offer the general public many potential benefits, particularly when it comes to nutrition, health and the environment, consumers continue to take them for granted, according to European industry association Freshfel Europe.
What's more, other sectors in the meantime are increasingly abusing the positive image of fresh produce for their own marketing purposes, the organisation has claimed.
For that reason, it has called on the fresh produce sector at large to put even more effort into highlighting such benefits.
"Besides a robust, pro-active advocacy of these positive benefits, the sector needs to simultaneously promote even more the inherent properties of fresh produce, namely taste, texture, quality and the sheer pleasure of enjoying a fresh fruit or vegetable," the group said in a statement.
"A truly holistic approach from the industry is needed to raise consumption levels all across Europe."
Despite falling consumption levels over the past five years, European consumers are reportedly becoming increasingly aware of the specific benefits that fresh fruit and vegetables can offer, with new figures from a recent Eurobarometer survey suggesting that 58 per cent of people in Europe believe a healthy diet means eating more fruit and vegetables.

"Fresh produce has a critical role to play in the prevention of chronic diseases such as obesity, cardiovascular disease, cancer and diabetes," Freshfel continued.

"The majority of European citizens – 83 per cent according to Eurobarometer – also considers the impact of a product on the environment when deciding which product to buy.

"Various recent studies have shown that consuming fruits and vegetables represents an environmentally friendly way of feeding the world’s rising population."

The group added: "Furthermore, the fresh produce sector is rightly recognised as having been pro-active in developing sustainable agricultural practices to meet the evolving requirement for refinements and improvements across the supply chain."

Source: Fruitnet

CARREFOUR SPAIN PILOTS CARREFOUR EXPRESS STORES IN BP STATIONS

Grocery retailer Carrefour has announced that it is testing Carrefour Express convenience stores in BP petrol stations in Spain. The retailer has opened an outlet in the town of San Fernando de Henares in Madrid.

The partnership comes after Carrefour and BP signed an agreement last July, part of which the retailer's Club Carrefour and Pass cardholders can accumulate the equivalent of 3% savings at BP service stations. BP operates more than 660 locations in the country.

Source: Planet Retail

WALMART LOOKING AT EUROPEAN EXPANSION

US-based Walmart is considering expanding into Europe with mergers and acquisitions a likely growth strategy, according to the Independent.

Founder Sam Walton’s grandson Steuart Walton is thought to have taken an interest in the problems at the French retailer Carrefour.

A source close to Walmart said Walton would consider taking over Carrefour stores if the French retailer decides to close outlets. In the face of a stagnating US market and fierce competition for Asda in the UK, Walmart sees Europe as a growth driver. A spokesman said: “Steuart is currently on secondment in the UK as part of his induction into the Walmart business.”

Source: Planet Retail

TESCO TO DROP CARBON FOOTPRINT LABELS?

UK-based supermarket giant Tesco is back tracking on its support for carbon labeling of its products.

The chain says the labels, which it launched with the Carbon Trust four years ago, is frustrated at the lack of take up by other retailers and the time it takes to organize reports the Grocer magazine.

Tesco displays the label on around 500 products and is one of more than 100 businesses currently using it.

In an interview Tesco's climate change director, Helen Fleming, said the supermarket would be phasing out its Carbon Reduction Labeling.

She said labeling each product takes 'several months' and as competitors were not following suit the scheme was no longer 'viable.'

A Tesco spokesman said 'no final decision' had been made but customer feedback was that the labeling is 'difficult' to understand.

USDA OFFICIAL TALKS LOCALLY GROWN FOOD

U.S. Department of Agriculture Deputy Secretary Kathleen Merrigan speaks about agriculture and its importance in the U.S.

Merrigan, the deputy secretary of the U.S. Department of Agriculture, wants people to understand the importance of knowing where their food comes from.

"Know Your Farmer, Know Your Food" is the USDA's effort to encourage direct farmer-to-consumer connections and strengthen access to locally produced foods.

Merrigan said interest in sustainable agriculture and demand for local food is strong and growing.
"Local's hot, if you will," Merrigan said. "People want to know where their food comes from."

7-ELEVEN ACQUIRES 55 SAM'S MART STORES IN THE CAROLINAS

7-Eleven, Inc. announced that it has entered into an agreement with Sam's Mart LLC to acquire 55 Sam's Mart stores in North and South Carolina and convert them to 7-Eleven® stores this year.

The transaction is anticipated to close in February, subject to standard closing conditions and regulatory approvals. Terms of the deal were not disclosed.

ALDI SÜD TO INTRODUCE TRACEABILITY SCHEME IN SWITZERLAND

German discounter Aldi Süd is to launch a traceability initiative for agricultural products in Switzerland called NatureSuisse.

The program, which comes into effect on February 2, allows customers to trace selected fresh and processed meat products back to their origin. At www.naturesuisse.ch and via QR codes, customers can find information about the Swiss suppliers, the production conditions and the items themselves, which Aldi Süd says match and in some cases exceed the standards for ecological agriculture.

The first industry partner for the program is Ernst Sutter, based in Gossau, St Gallen canton. Aldi Süd’s Hofer is running a similar program - Zurück zum Ursprung (Back to origin) - in neighboring Austria that has gradually been expanded beyond meat to include fresh produce, bakery and dairy products.

Source: Planet Retail

STUDENTS TO SEE HEALTHIER SCHOOL LUNCHES UNDER NEW USDA RULES

Millions of schoolchildren in the US will see more fruit and vegetables and less fat on their lunch plates under new U.S. Department of Agriculture standards unveiled Wednesday aimed at improving child nutrition and reducing childhood obesity.

"Improving the quality of the school meals is a critical step in building a healthy future for our kids," said Agriculture Secretary Tom Vilsack. "When it comes to our children, we must do everything possible to provide them the nutrition they need to be healthy, active and ready to face the future – today we take an important step towards that goal."

The changes mark the first overhaul of the school lunch program in more than 15 years and will affect the nearly 32 million children who eat at school. The new regulations will be phased in over the next three years, starting in the fall.

Under the new regulations, schools will be required to offer fruits and vegetables every day, increase the amount of whole-grain foods and reduce the sodium and fats in the foods served. Schools will also be required to offer only fat-free or low-fat milk. In addition, the menus will pay attention to portion sizes to make sure children receive calories appropriate to their age, according to Kevin Concannon, USDA under secretary for food, nutrition and consumer services.

FOOD SAFETY IS MORE THAN AUDITS: PMA RESPONDS TO USA TODAY EDITORIAL

PMA’s Chief Science and Technology Officer Dr. Bob Whitaker responded to a USA Today editorial which claimed food safety auditors are too closely tied to the industries they audit.

Specifically the editorial stated: “The system has an inherent conflict of interest: While retailers generally require audits before buying from a supplier, the suppliers often hire and pay the auditors who evaluate them. It’s like authors hiring their own book reviewers.”

It went on to draw similarities between the audit system and the U.S. financial crisis in 2008.

COUPON DISTRIBUTION DOWN, SAVINGS UP

CPG marketers distributed 305 billion coupons in 2011, an 8.1% decrease from 2010, according to a new report from NCH Marketing Services, a Valassis company.

The Annual Topline U.S. Consumer Packaged Goods Coupon Facts Report noted that the decline in 2011 reflects the fact that 2010 was a record-setting year for coupon distribution, which increased markedly during the recession.

Volume in 2011 was up by 20 billion over 2007 levels. Despite the decline in distribution from 2010 to 2011, consumer savings using coupons was up sharply, as Valassis reported that shoppers saved a total of $4.6 billion, up 12.2% over the preceding year. NCH's annual Consumer Survey found that 80.6% of shoppers report using coupons regularly, up 17 share points from pre-recession levels. More than one-third of the survey respondents said they used more coupons in 2011 than the prior year, a 14.3 share point increase from pre-recession levels.

Marketers continue to modify coupon-offer characteristics, according to the 2011 Coupon Facts Report:
- 27% of coupons distributed require multiple purchases, up 2 points from 2010;
- 9.9 weeks average expiration, down from 10.4 weeks a year ago;
- An average $1.54 face value, which remained the same as in 2010.

Source: Supermarket News

RUIZ TO FILL WALMART COO ROLE IN US

Walmart Stores has filled the position of COO within its US business for the first time in eighteen months with the appointment of Gisel Ruiz to the role.

TARGET NAMES NEW CHIEF FINANCIAL OFFICER

Target has promoted Senior Vice President of Finance John Mulligan to the position of Executive Vice President and CFO.

MEIJER TO SPONSOR 'MADE IN MICHIGAN' SCHEME

According to the Detroit News, grocery retailer Meijer will sponsor a new initiative called ‘Made in Michigan’ to promote the products of 22 local businesses.

The program, run in conjunction with the Michigan State University Product Center for Agriculture and Natural Resources, launches this month and will see the new grocery items become available in 33 Meijer stores across the state.

AUCHAN TESTS PRICE COMPARISON APP

French grocery retailer Auchan has launched a pilot of a price comparison app at its hypermarket in Issy-les-Moulineaux (Hauts-de-Seine).

The tool, which is available as a free download from the Apple App Store, allows real-time access to the store's price database. Users simply scan a product at a competitor’s outlet, for example, and receive the Auchan price. According to the retailer, the tool currently provides access to 10,000 reference prices.

Competitor Leclerc launched a mobile version of its price comparison website in June 2011.

Source: Planet Retail

RUSSIAN MAGNATE PLANS TO ENTER THE U.S. SUPERMARKET ARENA

Andrei Rogachyov, co-founder of the Russian supermarket chain that became X5 Retail Group, is opening 400 discount groceries in southern Florida, a project in which his company, AgroTrade International, will invest $500 million.

The stores will have a floor area of 5,400 to 7,500 sq ft, with up to 60 stores in the Sunshine State opening this year and the full 400 stores in operation by 2016.

TARGET LOOKS TO SUPPLIERS TO FIGHT ON-LINE THREAT

US general merchandise retailer Target has sent a letter to vendors urging them to create exclusive products in a bid to differentiate from other retailers and avoid direct price comparisons. As reported in The Wall Street Journal, Target’s letter has also asked suppliers to help it match prices in cases where exclusive lines are not available.

The company is also considering a subscription service that would give shoppers a discount on items purchased regularly. "What we aren't willing to do is let online-only retailers use our bricks and mortar stores as a showroom for their products and undercut our prices without making investments, as we do, to proudly display your brands," the letter stated, signed by Target CEO Gregg Steinhafel and Executive Vice President of Merchandising Kathee Tesija.

Source: Planet Retail

USDA SEEKS TO MODERNIZE POULTRY INSPECTION IN THE UNITED STATES

In a shift that will save money for businesses and taxpayers while improving food safety, the U.S. Department of Agriculture's (USDA) Food Safety and Inspection Service (FSIS) is proposing a modernization of young chicken and turkey slaughter inspection in the United States by focusing FSIS inspection resources on the areas of the poultry production system that pose the greatest risk to food safety.

"The modernization plan will protect public health, improve the efficiency of poultry inspections in the U.S., and reduce spending," Agriculture Secretary Tom Vilsack said. "The new inspection system will reduce the risk of foodborne illness by focusing FSIS inspection activities on those tasks that advance our core mission of food safety. By revising current procedures and removing outdated regulatory requirements that do not help combat foodborne illness, the result will be a more efficient and effective use of taxpayer dollars."

Currently, some FSIS employees in poultry establishments perform several activities which are unrelated to food safety, such as identifying visual defects like bruising, while others conduct the critical inspection activities. Under the proposed plan, all FSIS inspection activities will focus on critical food safety tasks to ensure that agency resources are tied directly to protecting public health and reducing foodborne illnesses. Additionally, some outdated regulatory requirements are being removed and replaced with more flexible and effective testing and process control requirements. Finally, all poultry establishments will now have to ensure that their procedures prevent contamination in the production process and provide supporting data to FSIS personnel.

By focusing inspectors only on the areas that are crucial to food safety, these changes will not only enhance consumer safety but will improve efficiency saving taxpayers more than $90 million over three years and lower production costs at least $256.6 million per year.

FSIS will continue to conduct on-line carcass-by-carcass inspection as mandated by law. This rule will allow FSIS personnel to conduct a more efficient carcass-by-carcass inspection with agency resources focused on more effective food safety measures. Data collected by the Agency over the past several years suggests that offline inspection activities are more effective in improving food safety. Inspection activities conducted off the evisceration line include pathogen sampling, and verifying that establishments are maintaining sanitary conditions and controlling food safety hazards at critical points in the production process.

The proposal was posted today on the FSIS website at www.fsis.usda.gov/regulations_&_policies/Proposed_Rules/index.asp and soon will publish in the Federal Register. The comment period will end 90 days after the proposal publishes in the Federal Register and must be submitted through the Federal eRulemaking Portal at www.regulations.gov, or by mail to the U.S. Department of Agriculture (USDA), FSIS, OPPD, RIMD, Docket Clearance Unit, Patriots Plaza III, Room 8-164, 355 E Street, S.W., Washington, D.C. 20024-3221. All items submitted by mail or electronic mail must include the Agency name and docket number, which will be assigned when it is published in the Federal Register.

Over the past two years, FSIS has announced several new measures to safeguard the food supply, prevent foodborne illness, and improve consumers' knowledge about the food they eat. These initiatives support the three core principles developed by the President's Food Safety Working Group: prioritizing prevention; strengthening surveillance and enforcement; and improving response and recovery. Some of these actions include:

- Performance standards for poultry establishments for continued reductions in the occurrence of pathogens. After two years of enforcing the new standards, FSIS estimates that approximately 5,000 illnesses will be prevented each year under the new Campylobacter standards, and approximately 20,000 illnesses will be prevented under the revised Salmonella standards each year.
- Zero tolerance policy for six Shiga toxin-producing E. coli (STEC) serogroups. Raw ground beef, its components, and tenderized steaks found to contain E. coli O26, O103, O45, O111, O121 or O145 will be prohibited from sale to consumers. USDA will launch a testing program to detect these dangerous pathogens and prevent them from reaching consumers.
- Test and hold policy that will significantly reduce consumer exposure to unsafe meat products, should the policy become final, because products cannot be released into commerce until Agency test results for dangerous contaminants are known.
- Labeling requirements that provide better information to consumers about their food by requiring nutrition information for single-ingredient raw meat and poultry products and ground or chopped products.
- Public Health Information System, a modernized, comprehensive database about public health trends and food safety violations at the nearly 6,100 plants FSIS regulates.

HANNAFORD OFFERS ONLINE RECYCLING TRACKER

Delhaize Group-owned Hannaford in the US has introduced an online tool that allows shoppers to track their recycling efforts, according to Supermarket News. The solution enables customers who recycle bottles and cans through the self-service kiosks at 46 Hannaford stores to see the amount of carbon, energy and emissions they have saved. The units and online tracking program are run by Clynk and allow members to view the amount of cash in their accounts and make donations to Clynk-affiliated charities.

Clayton Kyle, Chief Executive Officer of Clynk, said: "We understand the power of data and want to share that information with our members. The positive effects of recycling become tangible when you can see what your actions are doing, individually and collectively."

KELLER TO RETIRE AS VONS PRESIDENT

Tom Keller has been president of Vons since 1999 and has worked in the food industry for more than 40 years.

TO SAVE MONEY, DON’T BUY …..

U.S. News and World Report published a list of money saving detours, pointing out the best prices for gourmet cheeses are at warehouse clubs and the best prices for home necessities such as light bulbs, extension cords, nails and small tools are at hardware stores.

Kitchen appliances, cookware and bake ware are less expensive at box stores or on-line, the list says. Also, skip the grocery for name brand spices you can find cheaper at box stores and ethnic markets.

ROSALIND BREWER TO LEAD SAM’S CLUB

Walmart announced that Brian Cornell would step down as president and chief executive officer of its Sam’s Club membership warehouse unit and be replaced by Rosalind Brewer.

Brewer, 49, most recently was president of Walmart’s U.S. East business unit.

Walmart also said Gisel Ruiz, 41, was promoted to chief operating officer for Wal-Mart U.S., effective Feb. 1. She most recently was responsible for Walmart U.S.’s human resources.

BUFFETT BUYS UP $780 MILLION MORE OF TESCO

Billionaire investor Warren Buffett has beefed up his holding in Tesco by a further $780 million.

His Berkshire Hathaway investment vehicle has increased its share in the UK’s largest supermarket from 3.21% to 5.08%.

BURGER KING GIVES HOME DELIVERY A TRY

Burger King, in a bid to catch up with McDonalds and take a bite out of the competition posed by fast-food rivals such as Wendys, is experimenting with home delivery. Customers can order online or by phone, and the next thing they know dinner is at the front door.

Right now, delivery is available only in the Washington, D.C., area and only from a handful of restaurants. But, if successful, the pilot program could see a nationwide rollout.

Customers will pay a $2 delivery charge for a minimum order of $8 to $10, depending on the store. For now, orders will be accepted only from customers within a 10-minute drive of a restaurant, and the goal is delivery within 30 minutes or less.

AHOLD TRADING STATEMENT FOURTH QUARTER AND FULL YEAR 2011

Dutch retailer Ahold announced consolidated net sales of €7.3 billion for the fourth quarter of 2011, an increase of 4.5% compared to the fourth quarter of 2010. At constant exchange rates net sales were up 4.3%.

For the full year 2011, consolidated net sales were €30.3 billion, an increase of 2.5% compared to 2010. At constant exchange rates net sales were up 5.5%.

Identical sales in the US excluding fuel were up 2.9%.

WEGMANS RANKS NO. 4 ON THE FORTUNE LIST

For the 15th consecutive year, Wegmans has ranked as one of Fortune magazine's "100 Best Companies to Work for.'

The grocer landed in the fourth spot this year, falling one place from number three.

TARGET BUILDING NEW DC IN CANADA

US-based grocery retailer Target is constructing a new distribution centre in Canada. The 1.3 million square foot (130,000 square metre) facility, located near Calgary in Balzac, Rocky View County, will be the retailer’s third logistics hub in the country and will be operated by third-party company Eleven Points Logistics.

Target spokesperson Molly Snyder said: “Target has selected sites for its distribution centres that will help to ensure that our supply chain needs are met for our Canadian stores. Target intends to open its first stores in March/early April 2013 and its distribution centres will be completed in time to support the needs of the stores.”

Source: Planet Retail

EUROPE: CONSUMER CONFIDENCE IN PRIVATE LABELS AT ALL TIME HIGH

Private labels in European food retail continue to gain presence. Once viewed by consumers as a cheap, and not desirable, alternative to the genuine product it seems now that they are increasingly wanting to take advantage of the competitive prices on offer.

Retail analysts suggest that 8 out of 10 consumers currently believe private label goods to be of equal quality to national brands. This is good news for the retailers who, on average, make 10% more profit on private label brands than on those ascribed directly to the manufacturer or producer.

The losers in all this are often the producers themselves, including growers, who have to compete for market share against their own customer - the retailer.

Analysts predict the trend will continue over the next 3 years at the very minimum, with an expected growth of up to 23% during the period. The greatest amounts of private label business is currently being conducted by Walmart, Aldi, Costco and Supervalu amongst others.

Source: Freshplaza on www.internationalsupermarketnews.com

SOME COMPUTER GAMES INCREASE JUNK FOOD CONSUMPTION

A Yale University study finds that children are disproportionately targeted by food company websites using branded computer games, known as “advergames.” Researchers also found that playing these games increases children's consumption of junk food.

Researchers from the Rudd Center for Food Policy and Obesity conducted a study to determine how many young people visit advergame websites and how much time they spend there; whether exposure to advergames for unhealthy products contributes to increased consumption of unhealthy food; and whether advergames that promote nutritious foods can positively influence children's healthy food consumption.

Researchers said several companies in the U.S. have pledged to shift their child-targeted advertising to healthier foods through the Children's Food and Beverage Advertising Initiative. However, no advergames in this analysis met the council's criteria for child-directed advertising.

Source: Theday.com

RETAIL PAYMENT STANDARD ANNOUNCED

A new global standard for retail payments designed to help exchange data between payment terminals and POS terminals and support new payment technologies has been released by the Association for Retail Technology Standards (ARTS) and EPASOrg, which sets card payment standards in Europe.

The standard – called the ARTS-EPAS Retailer Payment Protocol – was developed to accommodate changes in payment forms such as mobile payments, EMV (Europay, MasterCard and Visa) chips, contactless cards and prepaid instruments, said Tim Hood, SAP’s chief solution architect for retail, during a presentation yesterday at the National Retail Federation’s Annual Convention & Expo held here. ARTS is the NRF’s technology standards division.

The specifications for the standard will be available for free beginning in the first quarter of 2012.
The ARTS-EPAS Retailer Payment Protocol will be based on state-of-the-art technologies, such as XML, to ensure interoperability between different sale environments, and was developed by a team of experts from Europe, Canada and the United States.

Source: Supermarket News

KRAFT TO CUT 1,600 POSITIONS IN NORTH AMERICA

Representing 3.4% of Kraft's North American 46,500 employees, the positions are primarily in sales, corporate and its business units, as the company plans to close three corporate offices as part of its planned restructuring into two companies. Manufacturing jobs will not be affected.

WALMART APPOINTS NEW CEO OF GLOBAL E-COMMERCE

Walmart has announced that Neil Ashe will join the company as President and CEO of its Global E-Commerce business.

Ashe was most recently president of CBS Interactive, where he led all online properties and also drove development of new ways to distribute programming produced by the media giant and its subsidiaries.

"E-commerce is a great opportunity for us and we have a long-term vision to win," said Mike Duke, Walmart's president and CEO. "We are on track to create the next generation of e-commerce, combining the latest in online innovations with physical stores to give our customers a unique and seamless shopping experience."

"We have an understanding of what these customers want, a trusted brand, 200 million weekly shoppers, more than 10,000 stores around the world, and the ability to make significant investments in talent and technology. We also have successful online businesses, including in the U.S., the U.K., Canada and Brazil. With all of this, it is clear that Walmart is the best-positioned retailer to deliver this multi-channel experience to consumers, many of whom are already connected to the world through smart phones and social media."

Duke continued, "With his strong personal leadership skills, financial background and experience in successfully working within a major corporation to lead its Internet division, Neil is the ideal leader to help us build this business. He has led companies through all stages of growth and maturity. He also has a deep understanding of the interactive space and how to attract and convert online customers. Perhaps most importantly, much of Neil's professional success has come through close collaboration and shared goals with his peers - a key attribute as we continue to integrate our online businesses across the company and with our physical stores."

"Walmart is a special company," said Ashe. "Growing up in East Tennessee, I have seen first-hand the difference it can make in the lives of its customers. E-commerce gives us a huge opportunity to expand and bring savings to many more people around the world. We have great things ahead of us and I am eager to get started and join the talented team already in place."

USDA RURAL DEVELOPMENT: HELPING TO PUT AMERICANS TO WORK

Agriculture Secretary Tom Vilsack provided highlights of USDA Rural Development fiscal year (FY) 2011 investments in job-creating businesses, infrastructure and housing for Americans living in rural communities across the nation. According to estimates, Rural Development investments created or saved about 440,000 jobs last year.

In the federal fiscal year that ended on September 30, Vilsack said Rural Development, through its Business, Cooperative, Utilities and Housing programs provided housing opportunities for over 143,000 families, upgraded community facilities, boosted the reliability of the electric grid, funded renewable energy projects, and through the Community Connect and other broadband programs supported efforts to provide affordable, reliable Internet service to rural homes.

The largest portion of FY 2011 funding, 63%, supported fee-generating loan guarantees that enabled private lenders to safely increase the pool of capital available in rural areas for credit-worthy businesses, communities and homebuyers, without direct cost to the Government. For example, in Indiana, Morris Manufacturing and Sales Corp., a family-owned auto parts maker, used USDA business loan guarantees to restructure debt and expand. As a result, the firm rehired 100 laid-off workers and hired 44 additional workers.

About 34% of Rural Development investments last year were made in the form of secure, affordable direct loans that will be paid back to the government, with interest. Through its Rural Utilities programs Rural Development provided more than 800 direct loans to help small communities install or upgrade water systems, dispose of waste and upgrade landfills to protect environmental quality. USDA also provided technical assistance and training grants to communities to ensure that the newly installed systems are maintained.

TESCO TO CHANGE POS AT FRESH & EASY

Following a successful initial pilot, U.K.-based Tesco will commence the deployment of the Retalix 10 Store Suite software, with plans to install it in Fresh & Easy Neighborhood Markets, its U.S. subsidiary, within three years, said Mike McNamara, Tesco’s chief information officer.

Tesco’s initial priority will be stores in the U.K. and South Korea as part of a worldwide rollout, said McNamara at a session Tuesday at the National Retail Federation’s Annual Convention & Expo here. “We are spending hundreds of millions of dollars to replace [our store systems] worldwide,” he noted. Tesco is operating a range of Retalix store solutions across more than 4,000 stores in 11 countries.

The Retalix 10 Store and Sales Channels suite covers all touch points and sales channels, including POS, self-checkout, self-scanning, customer scale, customer kiosk, fuel sales, mobile commerce and ecommerce, as well as a range of store and chain management applications. "Retalix 10 will form the foundation of our store technology,” McNamra added in a statement. “Its extensible, service-oriented architecture allows us to add new features and services for our customers at speed."

“This is the right thing to do," added McNamara at NRF. "It connects the store to the rest of the world.” Tesco should derive cost savings by offloading in-store computing to the cloud, he noted.

Source: Supermarket News

NRF FORECASTS RETAIL INDUSTRY SALES GROWTH OF 3.4% IN 2012

Though stubbornly high unemployment and continued uncertainty over the prospects for job growth will continue to dampen the outlook for industry retail sales growth in 2012, the retail industry will still grow at a rate faster than many other industries. This year, retail industry sales will rise 3.4% to $2.53 trillion*, according to the National Retail Federation – slightly lower than the pace of 2011, in which sales grew 4.7%. Many economists estimate that real U.S. GDP will rise approximately 2.1 to 2.4%.

“Over the last 18 months, retailers have been on the forefront of the economic recovery – creating jobs, encouraging consumer spending, and investing in America,” said NRF President and CEO Matthew Shay. “Our 2012 forecast is a vote of confidence in the retail industry and our ability to succeed even in a challenging economy. Retailers have played a key role in driving growth, but to continue this momentum we need Washington to act on proposals that will spur job creation and unleash the power of the private sector.”

Shay will announce NRF’s forecast to 24,000 retailers and their partners at NRF’s 101st Annual Convention and Expo today in New York. During his remarks, Shay will discuss how continued growth in the retail industry will result in additional jobs, greater innovation and increased consumer value. But he will warn that the private sector can’t do it alone and Washington must take steps to support growth, including reforming our corporate tax system to enhance U.S. business’ competitiveness, enacting sales tax fairness to level the playing field between brick-and-mortar and online retailers, and reforming our visa system so more foreign travelers can come to the U.S. to spend money and help spur growth. Shay and NRF’s Chairman – Chairman, President and CEO of Macy’s, Inc., Terry Lundgren – outlined the industry’s priorities in a letter to President Obama last week.

Though retailers ended last year on a strong note with holiday sales rising 4.1% over 2010, many factors will continue to influence the expected slowdown in consumer spending, but none remain more cumbersome than the stalled unemployment rate and lack of newly-created jobs.

KROGER TO TEST NEW FRESH STANDARD

The Kroger Co. will conduct a pilot project in the first quarter of 2012 to validate new enhancements to a standard for fresh item management (FIM) developed by the Association for Retail Technology Standards (ARTS), the standards division of the National Retail Federation.

The FIM Standard, when incorporated by technology suppliers, enables data on fresh foods, such as lot and batch data, to be transmitted across systems throughout the supply chain and into the store, promoting traceability for food items. Following the Kroger test, ARTS will publish the enhanced standard for use by the industry.

The enhanced standard, version 2.0, will allow mapping of specific electronic transactions, including purchase order, advance ship notice and invoice. Also, the FIM Standard data format will make it easier for companies to capture precise tracking information from product source to consumer purchase. In the case of recalls, this level of detail will permit retailers and manufacturers to identify only potentially contaminated products without destroying safe items, said ARTS. The standard also offers the ability to track food items through multiple transformations.

“Ensuring food safety by being able to quickly pull products from shelves in the event of a recall is a priority for every food retailer, so this new standard will help us protect our customers,” said Francisca Vicente, IT Business Analyst at El Corte Inglés and a participant in the team that developed the standard. “It’s extremely valuable to be able to hone in on only those products that are being recalled and will help minimize the disruption that customers experience when a product becomes unavailable as a result of a recall. This will also help companies avoid lost sales from pulling too much product.”

The standard has the potential to allow retailers to notify loyalty-card consumers directly in a recall event and to prevent sales of recalled product at the POS, said Frank Urbaniak, consulting principal, C-Core Consulting Group, during a presentation at the NRF’s Annual Convention and Expo.

Source: Supermarket News

TESCO TO INVEST MILLION OF DOLLARS IN UK STORE OVERHAUL, WHILE IN THE US ….

UK-based retailer Tesco is to spend $624 million on revitalizing its UK stores as it looks to reconnect with British shoppers, The Sunday Times reports.

Philip Clarke, CEO of the grocery and general merchandise retailer, plans to spend the money on renovating its domestic units and hiring more staff to provide a better service. Clarke admitted that Tesco's poor performance over Christmas was partly down to “the people in stores being asked to do too much. We want to make an investment there.” He added: “It's not just about giving the stores a lick of paint. We're going to invest cash to put more people into the right stores, in the right areas and to train them to be even better so they can look after the product and customers."

With internet sales growing rapidly, Clarke said there will be fewer 100,000 square foot Extra stores in the future. He said: "How long can a retailer responsibly go on putting down huge footage when there's this extraordinary river flowing past called the internet?" On the US business, Clarke said Tesco will make a decision on whether it can make sustainable profits in 2012-13: "I said we had to get to break even in 2012-13. That will be the right time to make an assessment about whether it can make sustainable profits.”

Source: Planet Retail

USDA REVISES PRICE FORECAST

U.S. fresh fruit and vegetable retail inflation is expected to decline in 2012 from 2011 levels but remain above long-term historical averages.

Fresh produce price inflation will range between 3% to 4% in 2012, a moderate decline from the 4.25% to 4.75% price increases recorded in 2011, the U.S. Department of Agriculture reported.

With eleven months of data in the book, 2011 fresh fruit inflation was 3% to 3.5% and fresh vegetable inflation was 5.5% to 6%, according to the USDA’s Economic Research Service.

For 2012, fresh fruit inflation is predicted to range from 3% to 4% while retail fresh vegetable prices are projected to rise 3.5% to 4.5%.

The USDA said retail price inflation in 2011 for all food is projected to increase 3.25% to 3.75% in 2011, while food away from home prices are projected to rise 2% to 2.5%.

In 2012, the agency said that all food prices will increase 2.5% to 3.5% over 2011. Food at home prices in 2012 will rise 3% to 4%, while food away from home prices are projected to increase 2% to 3%.

Price levels in 2012 will depend on factors such as weather conditions, currency values and fuel prices, according to the USDA.

Source: The Packer

USDA CLOSINGS WON’T AFFECT FOOD SAFETY, VILSACK SAYS

The U.S. Department of Agriculture plan to close 259 domestic offices as part of a $150 million budget-cutting measure will have “no impact whatsoever” on food safety, Agriculture Secretary Tom Vilsack said.
Agency inspectors will continue their jobs at every meat- processing plant in the country, Vilsack said today on a conference call with reporters. Closings of facilities related to food safety may not happen until after Oct. 1 and will only affect administrative personnel, he said. County offices that oversee farm programs may close before then, he said.

“We have to get our fiscal house in order,” Vilsack said. “That’s going to involve tough calls.”
The closings are in response to about $3 billion in cuts to the USDA’s operating budget since 2010, Vilsack said. Further economy measures will be considered as Congress begins debate this year on the next farm bill, where subsidies to growers of wheat, corn, soybeans and cotton are on the table, said Vilsack, who anticipates at least $23 billion in reductions in farm spending over 10 years.

The plan announced yesterday includes closing 131 of the 2,100 Farm Service Agency offices in 32 states. In addition, 15 of the more than 575 U.S. offices of the Animal and Plant Health Inspection Service will be shut. The agency is responsible for inspecting about 6,200 slaughter, food-processing and import establishments throughout the country.

Research facilities and rural-development offices will be affected, and seven USDA offices overseas will be shuttered. Total savings will amount to about 1 percent of the department’s annual spending.

Vilsack said he does not envision “significant disruptions to service.”

The closings will harm farmers and ranchers, Chandler Goule, a lobbyist for the National Farmers Union, the second- largest U.S. farmer group, said in an e-mailed statement. The Washington-based organization blames Congress, not the USDA, for the cuts.

“A ‘cut first, ask questions later’ attitude in Congress toward investing in agriculture and rural America is now showing its true cost to farmers, ranchers and rural citizens,” Goule said.

Source: BusinessWeek

WINN-DIXIE CEO PETER LYNCH RESIGNS

Lynch announced his resignation as CEO Friday following Winn-Dixie’s merger with the food service company Bi-Lo last month.

SUPERVALU Q3 LOSS WIDENS, CUTS FULL-YEAR OUTLOOK

Grocery retailer Supervalu, Inc. on Wednesday reported a loss for the third quarter that widened from last year, hurt by higher goodwill and impairment charges as well as lower revenues. Earnings per share matched analysts' expectations, while revenues missed their estimates.

Looking ahead, the company lowered its earnings and revenue forecast for fiscal year 2012. The company's shares are down 11% in the pre-market.

The Eden Prairie, Minnesota-based company's third-quarter net loss was $750 million or $3.54 per share, wider than net loss of $202 million or $0.95 per share in the prior-year quarter.

The latest quarter's results include non-cash goodwill and intangible asset impairment charges of $800 million or $3.78 per share, while the year-ago period's results included charges of $252 million or $1.19 per share.

Excluding the charges, adjusted earnings for the quarter were flat with the year-ago period at $50 million or $0.24 per share. On average, 15 analysts polled by Thomson Reuters expected earnings of $0.24 per share. Analysts' estimates typically exclude special items.

Net sales declined 3.9% to $8.33 billion from $8.67 billion in the prior-year period, but missed analysts' consensus estimate of $8.42 billion.

The decline in sales reflects a 2.9% decrease in identical store sales, and previously announced market exits. Total retail square footage declined 1.5% from the year-ago period to 63.6 million, primarily as a result of fiscal 2011 market exits.

Craig Herkert, Supervalu's Chief Executive Officer and President said, "Supervalu continued to execute on its business transformation this quarter and remains on plan with its 8 Plays to Win strategy. Even with the ongoing difficult economic environment and pressured consumer, we continued to make progress against our plan, allowing us to invest in price to deliver everyday value and hyper local choices that meet the needs of our customers in the diverse neighborhoods we serve."

Net sales for retail food decreased 3.5% to $6.34 billion, while independent business sales declined 5.2% to $1.99 billion from last year's $2.10 billion.
However, the company's gross margin edged up to 21.7% from 21.5% last year, reflecting the benefits of promotional effectiveness, partially offset by retail price investments and a higher LIFO charge.
For fiscal 2012, Supervalu now forecasts reported loss of $2.58 to $2.48 per share, compared to the prior forecast for reported earnings of $1.20 to $1.30 per share.

The company currently forecasts full-year adjusted earnings of $1.20 to $1.30 per share, in line with its previous forecast for reported earnings. Analysts expect the company to report earnings of $1.25 per share.

Further, Supervalu lowered its revenue outlook for the year to about $36.1 billion from the prior forecast of about $36.5 billion. Analysts have a consensus estimate of $36.50 billion.

The company projects identical store sales growth for the year, excluding fuel, to be approximately negative 2.5% to negative 3%, down from the prior forecast of approximately negative 2% to negative 2.5%.

SVU closed Tuesday's trading at $8.39. In Wednesday's pre-market, the stock is losing $0.93 or 11.08 percent to $7.46.

Source: rttnews.com

MARKS & SPENCER INTRODUCES PACKAGING FOR 'LONGER-LIVING' FRUIT

Next week, UK retailer M&S will become the first major retailer to roll out ground-breaking new packaging which it claims will extend the life of fruit stored in the fridge by up to two days, helping to cut domestic food waste.

The supermarket will add a small plaster-style strip at the bottom of punnets of strawberries, containing a patented mixture of clay and other minerals that absorb ethylene - the ripening hormone which causes fruit to ripen and then turn mouldy. The strip measures 8cm x 4.5cm (3.2x1.8 inches) and does not affect the recyclability of the packaging, and the retailer claims there is no extra cost to the consumer of the packaging. If successful, it will be added to all the supermarkets' berries.

Trials carried out in M&S stores showed a minimum wastage saving of 4% - during the peak strawberry season this would equate to 40,000 packs, or about 800,000 strawberries. M&S says it is committed to reducing waste as part of its Plan A program to be the world's most sustainable retailer.

Source: guardian.co.uk

FRESH & EASY TO CLOSE 12 STORES TEMPORARILY

Fresh & Easy is to close 12 stores temporarily as part of its overall review of its store portfolio as it looks to move towards profitability.

The company said: “Fresh & Easy continues to grow and we are opening 25 stores between now and the end of March - so for every store we're closing temporarily, we are opening two. At this time, there is simply not enough growth in sales and customers at these stores to keep them open. We will close these stores over the coming weeks and we will re-open them when economic and business conditions warrant. We are offering all impacted employees a position at a nearby store.”

Source: Planet Retail

INCENTIVES COULD DRIVE VEGETABLE CONSUMPTION

In the US, a new study has suggested that children who are repeatedly exposed to vegetables they initially disliked will increase their intake of these if offered rewards, eventually changing their perception of the food.

The study tracked the vegetable intake of 173 children aged three to four years old, and found that, from three control groups, the group receiving stickers as a reward each time they sampled a 'disliked' vegetable significantly increased their liking of it compared with the other groups.

Published in The American Journal of Clinical Nutrition, the study found that increases in consumption and liking of vegetables in the two other groups of children – one receiving just verbal praise and the other receiving no praise of reward – were lower.

"The results of this new study continue to show the importance of introducing a variety of fruits and vegetables to children at an early age to help establish healthy eating habits early," said Elizabeth Pivonka, president and CEO of education foundation Produce for Better Health Foundation.

"Adults are more likely to eat a variety of fruits and vegetables whether fresh, frozen, canned, dried or 100 per cent juice if they were exposed to them as children."

Source: Fruitnet

PRICESMART REPORTS Q1 RISE IN NET SALES BUT DROP IN NET INCOME

US-based warehouse club retailer PriceSmart has reported an increase in net warehouse sales of 24.1% to $468.33 million for the first quarter ended November 30, 2011.

Total revenue for the quarter was $478.69 million compared to $386.07 million for the prior year period while operating income improved to $24.3 million from $22.2 million in 2011.

Despite the rise in sales, PriceSmart recorded a decrease in net income to $13.99 million from $14.85 million the previous year.

Source: Planet Retail

COUPONS, COUPONS, COUPONS

According to a recent article in Produce Retailer, about 78% of consumers report using coupons regularly, up 14.7 share points from pre-recession levels, and overall redemption volume in the U.S. grew 3.1% to 3.3 billion coupons.

Free-standing inserts (FSIs) account for the vast majority of coupons - 87.7%.

The second-largest share of coupons - 5.2% - was delivered in-store.

Digital coupons, including paper and paperless formats, grew 37%, but still accounted for a relatively small amount of the total.

Source: PMA

DOLLAR GENERAL REVEALS EXPANSION PLANS FOR 2012

US-based Dollar General has announced plans to open 625 new stores across the US throughout 2012, including its first stores in the states of California and Massachusetts.

The company also hopes to remodel or relocate up to 550 additional outlets and open a new distribution center in California before the fiscal end.

Source: Planet Retail

REVISED ESTIMATE FOR FOODBORNE ILLNESS COST IN THE US

The cost of foodborne illness in the United States is about $78 billion a year, according to Robert Scharff, an Ohio State University assistant professor and former Food and Drug Administration economist – slashing in half his previous, widely cited $152 billion estimate.

‘HAVE-NOTS’ DRIVE 2012 NATURAL AND ORGANIC TRENDS

The haves and have-nots – that’s what’s driving health and eco consumer purchasing this year, according to a recent MamboTrack survey by Mambo Sprouts Marketing.

This label and ingredient focus was a highlight of the recent MamboTrack study, which surveyed the buying habits of 1,000 health and natural product consumers to get an outlook on market trends for the coming year.

Health and natural consumers are paying more attention to what goes into the products they purchase. Most already buy organic foods (99%), non-GMO products (93%), antibiotic-free (ABF) and hormone-free meat and poultry (85%), and gluten-free foods (69%). More than half plan to increase purchasing of organic foods (64%), non-GMO (56%), ABF and hormone-free products (52%), and 38% plan to increase gluten-free purchases.

Among those consumers who seek out non-GMO foods (66%), a large majority (85%) want food products to be specifically certified and labeled as non-GMO. Perhaps more importantly, seven in 10 (70%) expect that products labeled “USDA Organic” are non-GMO. This compares to just 41% of consumers who expect “natural” products to be non-GMO. To that end, two in three (67%) wish their favorite retail stores provided more information about non-GMO such as signage, special sections and advertising features.

Notably, almost seven in 10 (68%) cited “ingredient list” as a key brand purchase factor for 2012. Among the other purchase drivers, health and nutrition benefits (69%), organic ingredients (51%), price (51%) and coupons (47%) were frequently ranked as “very important.”

And while consumers expect to increase organic purchasing across all product categories, Karen Herther, director of MamboTrack Research, said health conscious consumers remain torn over their organic preferences and price. “Price is still very much a top-of-mind factor among consumers,” Herther said, “driving where people shop and how marketers position and promote their products.”

While prices (69%) were among the factors most important to consumers in deciding where to shop in 2012, they also ranked selection of healthy/organic products (68% vs. 56%), safe food preparation and storage (62% vs. 55%) and environmentally friendly practices (31% vs. 25%) higher than in 2011.

The Mambo Sprouts Marketing 2012 Consumer Survey Report will be available for purchase.

Source: Produce Merchandising