Sainsbury's Sees Full-Year Profit At Upper Half Of Guidance
ESM - European Supermarket Magazine
The industry magazine for C-suite executives and procurement managers working in the European grocery retail sector.
British supermarket group Sainsbury's forecast full-year profit at the upper half of previous guidance as it reported slightly better-than-expected flat profit for the first half due to demand for its food ranges. The group, which has a 15% share of Britain's grocery market, trailing only Tesco, said it now expected a 2023/24 underlying pretax profit of between ￡670 million (€769 million) and ￡700 million (€803.4 million). That compares with previous guidance of ￡640 million to ￡700 million and the ￡690 million (€791.2 million) made in 2022/23.
Carrefour France has announced plans to lease 37 of its stores, including 16 hypermarkets, to third-party operators next year, with the retailer remaining the owner thereof. The news was revealed by the CFDT union, following talks with the retailer’s management, according to the AFP news agency, as well as a number of other news websites. Union members have protested the move, which is expected to affect nearly 4,000 employees, who will reportedly lose certain contract agreements with the change.
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Food retailers Billa, Kaufland and Lidl have rolled out a series of sustainability initiatives in Bulgaria, to reduce their environmental impact. Billa Bulgaria has replaced all paper labels with electronic labels in its 151 stores. The project cost BGN 15 million (€7.7 million) and reduced paper consumption by 60%, the retailer noted. The new electronic labels provide more accurate product information, including data on the origin, weight and price of each item, making it easier for customers to shop. Billa claims to be the first retail company in Bulgaria to equip its stores with electronic labels.
Dutch retailer Ahold Delhaize has announced the acquisition of 100% of Romanian grocer Profi Rom Food SRL from MidEuropa. The transaction is expected to close next year, Ahold Delhaize noted, subject to merger and competition regulations. Ahold Delhaize will pay an enterprise value of approximately €1.3 billion to acquire the chain, corresponding to a lease-adjusted enterprise value of €1.8 billion (post-IFRS 16). MidEuropa commented last month that it was seeking a buyer for the chain. It acquired the Profi business in 2016, from Enterprise Investors.
Changes to British consumers' behaviour that emerged during the ongoing cost-of-living crisis, such as more eating at home and increased purchases of own-brand and frozen products, are here to stay, the boss of supermarket Sainsbury's said. "Just as the pandemic drove a number of shifts in the pattern of how and where people shopped, I think this phase has driven a number of shifts in what people spend their money on. They will endure," chief executive Simon Roberts said.
French retailer Auchan and Romanian oil company OMV Petrom have completed the rollout of MyAuchan convenience stores in all Petrom stations across Romania. The two companies have invested over €50 million in the project, which was completed a year earlier than originally estimated, the oil company noted. There are now around 400 MyAuchan convenience stores in Petrom stations across Romania. Residents of 250 towns and cities now have a one-stop shop for fuel and groceries. To mark the achievement, there will be a promotional campaign in all Petrom stations with MyAuchan stores in the period from 1 to 30 November, with discounts on food and consumer products, as well as a raffle with cash prizes.
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1 年I continue to be impressed by Sainsbury's! It’s apparent that they’re doubling down on their focus on the consumer experience within their physical stores, and I believe it’s going to pay off.