SAFEWAY BOOSTS PACE OF NEW-STORE OPENINGS

Safeway plans to become more aggressive in opening new stores now that its lifestyle remodeling effort is nearly complete, Steve Burd, chairman, president and chief executive officer, said.

Safeway expects to open 26 new stores this year and to complete 30 remodels, at a cost of $1 billion. That compares with $800 million spent in 2010 to open 14 new stores and remodel 60, which brought the number of lifestyle stores up to 85% of the store base.

GENERATION-Y STILL FAVOURS THE HIGH STREET

According to new survey released by retail business software company CTS Retail, U.K. retailers should be wary of the lure of out-of-town store locations because young consumers still primarily shop on the high street.

Consumers aged 14 to 21-year-olds are more dependent on public transport than older shoppers and more likely to be in town centers due to spending time at places typically found in these locations such as schools, colleges and leisure centers.

Despite the rise of on-line retail in the last few years, young people still see high street shopping as a regular leisure activity and deserting the town retailers could be hiding themselves away from their best customers.

U.S.: FRESHFACTS HIGHLIGHTS PRODUCE SALES GROWTH

Latest version of United Fresh's 'FreshFacts on Retail' report points to quarterly year-on-year increase in U.S. fresh produce sales
Consumers in the U.S. have remained dedicated to including fresh produce in their diets despite the ongoing economic difficulties, with the outlook positive for further sales growth in the country.
That is the verdict of the latest edition of United Fresh Produce Association's FreshFacts on Retail research report, covering the fourth quarter of 2010, which revealed a year-on-year increase in weekly dollar sales and per-store volumes of fresh produce.

Produced in partnership with the Perishables Group and sponsored by Del Monte Fresh Produce, the report measures price and trends for the top 10 fruit and vegetable commodities, as well as value-added, organic and other produce categories.

According to the report, there was an increase in weekly dollar sales of 3.1% for fruit during the fourth quarter, with growth of 11.6% in volume and 8.4% in sales for the value-added fruits category.
The report also pointed to a yearly increase of 1.6% in volume terms and 4.1% in sales for the value-added vegetable segment, while there was weekly volume and dollar sales growth for six of the top 10 items in the vegetable category.

In addition, the latest FreshFacts report also spotlights the organic produce segment, which has seen an increase in dollar sales, volume per store and average retail price in the fourth quarter.
Within the segment, organic apples, berries, grapes, citrus and avocados have all seen double-digit percentage growth in sales, while berries, grapes, citrus and avocados have seen the same double-digit percentage growth in weekly volume.

According to United Fresh, organic growth was lead by the prepared fruit category, with weekly dollar sales up 83.4% and volumes up 46.2%.
Source: Fruitnet

U.S.-MEXICO: BORDER AGREEMENT

The U.S. and Mexico have announced that they have reached a proposed agreement for resolving the 20-year dispute over trucking between the two countries, which could reopen access to the U.S. for Mexican trucks.

WALMART INCREASES ANNUAL DIVIDEND

The Board of Directors of Walmart has approved an annual dividend of $1.46 per share, a 21% increase from the $1.21 per share paid during fiscal year 2011. For the current fiscal year ending January 31, 2012, the annual dividend of $1.46 per share will be paid in four quarterly installments of $0.3650 per share.

COSTCO HINTS AT EUROPEAN EXPANSION

US-based warehouse club operator Costco could enter more European markets within the next three years, CFO Richard Galanti said alongside the company’s second quarter results. Costco trades in the U.K. but has yet to expand into continental Europe. Galanti added: “It takes us a while to open a few units and make sure we like what we see and we understand all the issues with the distribution and labour hiring and everything else.” He noted that the company has “stepped up” expansion in Japan, Korea and Taiwan. “Between those three [markets], and probably over a five-year period we are adding on average one or two to the total of three countries a year.

He also commented on Australia, where the company has been successful with its one-store operation, and Canada, where the retailer plans to add three new stores this year. “The fact that I think that we're opening three units in Canada this year implies that we still think that we're not saturated in a country that has 80-plus units. It wasn't that long ago that we felt that as we had 50 going to 60 at some point here we're going to fill the country, and we're happily finding that's not the case.”
Source: Planet Retail

TESCO PUSHES DEEPER INTO U.S. MARKETS

Tesco has made its first big push deeper into America, opening two Fresh & Easy stores in the San Francisco bay area.

It is the first time the grocer has ventured into Northern California having rolled out 160 stores in Arizona, Nevada and Southern California.

Fresh & Easy will break even in 2012-2013.

The openings in Northern California will be followed by a dozen more over the next few months.

Fresh & Easy chief executive Tim Mason said: “This marks another significant step for our business.”

A NEW MARKETING APPROACH IS NEEDED

As a “golfaholic,” I have come to admire the Ladies Professional Golfers Association tour (LPGA), but I don’t like the way it is promoted. The marketing is blatantly superficial, based solely on the images of few players, the cutest ones and the fashionistas. How much better it would be for all concerned if promotional efforts were concentrated where they belong…on the best golfers.

The LPGA tour features a lot of fantastic players whose technique merits study by anyone hoping to LEARN how to improve his or her game. In fact, in the opinion of most golf teachers, the ladies’ technique, stance, and swing are easier for the average golfer to copy than that of Tiger Woods or Phil Mickelson.

But, what has all this got to do with food? In my opinion the LPGA and the food industry share the same skewed approach to marketing. The food industry focuses too heavily on the behavior of a small segment of impulse consumers and fails to see the big picture. That “big picture” entails EDUCATING consumers. In the same way that, as a golfer, I can learn from watching the LPGA players, as a consumer I am looking to be EDUCATED by the food industry into making well informed choices. One small example: I would want to know the difference between an olive oil made with 100% Italian olives and an olive oil packed in Italy with olives from Turkey, Tunisia, Greece and Spain. Another example: I would want to receive storage advice information from the industry, to reduce the food waste.

Bottom line: Education is the key to attracting better and more loyal customers. Let’s all get behind a more focused marketing approach!

FOOD SECURITY UNDER THREAT: GLOBAL RESPONSE NEEDED

Climate change and commodity speculation are among the main factors threatening food security inside and outside the E.U., according to a European Parliament resolution adopted last month.
Members of the European Parliament (MEPs) call for urgent measures to combat food price manipulation and ensure that food production is maintained in the E.U.

Droughts, floods, fires and storms, on a greater scale than in the past, are reducing agricultural capacity all over the world, says the resolution. Soil and water management must be improved to prevent loss of farmland, and the Commission should monitor national climate change mitigation measures, believe MEPs.

MEPs criticize speculation in food commodities, agricultural raw materials and energy markets, all of which puts food security at risk. The G20 is urged to work for the convergence of market regulations by involving countries that are not part of the G20 in the fight against food price manipulation.

Parliament asks the Europen Commission to consider giving the new European Security and Markets Authority more power to prevent abuses in commodity markets. Dealing in food commodities should be limited to investors who have a genuine link with agricultural markets, MEPs believe.

In addition, MEPs call on national governments not to impose curbs on exports, as these "provoke greater uncertainty in the markets and disrupt world markets, and therefore have the potential to drive prices up further at global level."

Since agriculture is a key economic sector in the developing world, MEPs call for a larger proportion of the financial aid for this sector to be used to support more effective and sustainable farming practices. They add that land ownership should be promoted to reduce poverty and increase food security.

IT'S BANANAS! FRUIT GETS A SECOND SKIN WITH DEL MONTE PACKAGING

The U.S. multinational Del Monte has taken the view the yellow skin is not quite enough, and will sell individually-wrapped bananas at petrol stations, convenience stores, leisure centres and gyms.

The Del Monte bananas will be marketed under the slogan “Natural Energy Snack on the Go.”

While the trial may seem bizarre at a time when big businesses are under pressure to reduce packaging waste, Del Monte insists the addition of a clear plastic bag is actually a green measure.

The company claims that the bag contains ‘Controlled Ripening Technology,’ which extends the shelf-life of the banana by up to six days.

The banana is put into the plastic bag when it is green and, according to the manufacturers, goes on to ripen more slowly than if it had been left in the open air.