This week's retail news 'you may have missed'.....
At mdj2, we’re passionate about retail and always looking to share our news, views, and insights. With so much information out there, we wanted to share just a small selection of retail news headlines from last week that we found interesting…?
?Tesco readies online marketplace launch.
Tesco?is to launch an?online?marketplace that will give customers the ability to shop “a broad range of third-party products” alongside groceries on the supermarket’s website.
The retailer is understood to have been working on the?technology?underpinning the marketplace for the past two years. It is now building a team that will be responsible for recruiting sellers and working with them on “range, merchandising and promotional strategies”.
For customers, third-party seller products will be available “seamlessly” alongside their “core grocery basket” on Tesco.com.
The supermarket is currently recruiting for a marketplace business development manager, who will manage the seller cohort and develop a “compelling range proposition”. Sellers will be prioritised using a “data-driven approach”.
A job listing for the role says the marketplace is a “key pillar” of Tesco’s strategy to be ‘easily the most convenient’ grocer – a strategy set out in late 2021 to serve customers “wherever, whenever and however they want to be served”, with online playing a major role.
The Grocer understands the marketplace will offer a broad range of categories with a focus on petfood,?health?& beauty and?alcohol. The marketplace will offer larger pack sizes than are available in stores. It is understood the marketplace will launch as soon as the start of next year, with brands that already sell in Tesco stores as well as unlisted challenger brands. Those brands on the marketplace will fulfil orders directly to customers’ doors.
Tesco would not confirm or deny the marketplace launch, saying only that it was in ongoing discussions with suppliers to build out its online proposition.
The marketplace model is not a new one to Tesco, which in 2012 opened up its non-grocery offering Tesco Direct to third-party sellers. Tesco Direct ceased trading in July 2018, with the company saying there was no prospect of the loss-making concern becoming profitable. Along with hundreds of job losses, its closure saw around 300 merchants lose a small but solid sales channel.
“In a nutshell, they tried to take on?Amazon?in a category they are not known for –?non-food?items – with an inferior customer experience and without a sustainable?logistics?infrastructure,” said Paul Adams, CEO of marketplace services platform Tambo.
Analysts argued Tesco Direct was too protectionist when it came to the sellers it would accept, with overcaution about listing products that might compete with its own.?But Adams believes a second shot by the retailer could prove more successful.
“Adding a marketplace to Tesco.com would be a natural progression to their online service offering and would follow the lead of other EU and US grocery providers,” he said. “The failure of Tesco Direct will still be fresh in their memory. This time round they should take a leaf out of?Walmart’s playbook and fully integrate the marketplace into their?omnichannel?experience, thus giving them a competitive advantage over Amazon.
“It is a positive development that will drive more sales and bring more traffic into Tesco.com that they can turn into advertising revenue,” Adams added.
More recently Tesco launched an online marketplace – Tesco Exchange?– which allows suppliers to cut costs and reduce?food waste?by selling or donating surplus stock to other manufacturers. The service, which launched in November, is available to more than 3,500 Tesco suppliers. However, no direct sales are made on the platform, with arrangements made between buying and selling parties privately.
Other supermarkets and retailers have launched marketplace models, among them?M&S, Walmart,?Carrefour,?Kroger,?Boots, Superdrug and The Range. In some cases the retailer will work with sellers spanning the full range of categories, while others restrict third party dealings to homeware and fashion.
?Dobbies opens biggest ever store at The Junction, Antrim.
Dobbies has opened its biggest-ever garden centre store at The Junction Retail and Leisure Park in Antrim.
Spanning 110,000 square feet, the shop is Dobbies’ second venture in Northern Ireland.
The company has also partnered with retail and wholesale business Musgrave NI which will supply a a range of products to Dobbies’? 3,539 square foot food hall.
Television presenter Pamela Ballantine officially opened the store and was joined by deputy mayor of Antrim and Newtownabbey Borough Council councillor Rosie Kinnear; Dobbies chief executive David Robinson; Dobbies Antrim general manager Ken Ferguson and operations manager Jenny Campbell. Alastair Coulson, managing director of The Junction’s landlord, Lotus Property, was also present.
Opening ahead of the Christmas season, the new store features Dobbies’ full festive product range and will also offer an extensive programme of seasonal events from November onwards, including Santa’s Grotto, a Quiet Grotto experience for those with additional needs, Santa Paws, Santa’s Breakfast and more.
Robinson said: “I’d like to share a huge thank you to everyone who has been involved in this project. It’s been amazing to see so many colleagues from across the business supporting the local team, and we’re proud to have created so many jobs in the local area.”
Coulson added: “Dobbies opening its doors onsite today is a real gamechanger for The Junction. We are very pleased to have a nationwide household name open its flagship store with us. I’m delighted to say occupancy levels are now at 92% – a testament to the investment and commitment the team here at The Junction have made to drive this destination forward.”
?Wilko tells customers to keep ‘eyes peeled’ as online store is ‘coming soon’.
All Wilko stores will have closed by the end of this week but customers could still be able to purchase products from Wilko.com soon.
Wilko customers will “soon” be able to purchase products from the retailer again following the relaunch of Wilko.com.
The brand has posted several messages on X, formerly known as Twitter, giving consumers a glimpse of what they can expect.
In one post, published earlier this week, Wilko urged customers to keep their “eyes peeled” for Wilko.com, declaring it was “coming soon”.
Wilko.com is currently a live website but states: "Home delivery returning soon."
Products are listed on the site with an "email when back in stock" button beside them.
Last month,?The Range reached an agreement with administrators for Wilko to buy the Wilko brand, website and intellectual property.
Joint administrators at PwC said that after a “short period” of transition, they expect online operations to recommence.
As part of the deal, 36 employees from Wilko’s digital team have transferred over to The Range.
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?Very Group suppliers have credit insurance pulled.
Credit insurer Allianz Trade has pulled its cover for The Very Group’s suppliers following concerns about the retailer’s falling profits.
Drapers reported?that the decision to withdraw cover was down to macro-economic pressures as consumers reduced their discretionary spend.
It comes as the retailer’s operating profit plunged 17% to ￡123.8m in the 39 weeks to 1 April 2023, down from ￡150.2m.
Group sales remained flat at ￡1.6bn due to 2.5% dip in retail sales as a result of the “heavily promotional environment”.
A spokesperson for The Very Group told the publication: “One of several providers of?credit insurance to our suppliers has reassessed its cover?with respect to The Very Group.
“It has done the same with several retailers due to its view of the market. We continue to see other credit insurers maintain or increase cover with respect to the group.
“We continue to have constructive relationships with our suppliers, and our year-to-date Q3 results show Very revenue growth of 2.2% – ahead of the online non-food retail market – and a robust liquidity position.”
Allianz slashed its cover for Boohoo Group?suppliers by an average of 50% in July, with some suppliers to the fast fashion retailer having their coverage level cut to zero in September.
Fellow insurer Atradius?withdrew some of its cover for Asos suppliers?in May amid concerns about falling profits.
?Screwfix Sprint awarded best innovation in delivery at the eCommerce Awards.
Screwfix, the omnichannel retailer, has been awarded the prestigious Best Innovation in Delivery at the eCommerce Awards 2023 for its rapid delivery service, Screwfix Sprint.
In an evening that recognised excellence in the world of eCommerce across the UK, Screwfix Sprint was given the award by a panel of expert judges.
The panel were impressed with Screwfix Sprint’s 60-minute or less delivery service offered direct through the Screwfix App, and also praised the full trackability of the process, giving customers visibility. The range of products available on Screwfix Sprint was another key driver in being awarded Best Innovation in Delivery. With 9,500 products available to choose from, the judges commented the range of products was ideal for a busy trade customer working on the job.
Max Britten, Managing Director of Screwfix, comments:?“I’m delighted that Screwfix Sprint has again been recognised with this award. We know time is money for our customers and Sprint is a truly customer-first service that makes the lives of our busy tradespeople easier.
“I want to say a huge thank you to?the teams who have worked hard to develop our Sprint offer and who ensure it delivers brilliantly for our customers. Congratulations also to the E-commerce team for winning the Bronze award on Best UK E-commerce Site of the Year. It’s a great reflection on all the hard work to further improve our fantastic digital offer – well done!”
With over 9,500 products for delivery, less than one year after its launch, Screwfix Sprint is now available across 325 Screwfix stores and reaches 45% of the UK population, with the aim to reach even more tradespeople.
Whether they need a tool or multiple items, with no minimum spend and a set fee of ￡5 per delivery, customers can easily purchase the product they need via the Screwfix App and get it delivered straight to their location within 60 minutes.
To benefit from Screwfix Sprint convenience, download the Screwfix App now or visit?Screwfix.com?for more information.
Asda rebrands first former Co-op sites into Express stores.
Asda has launched its programme to convert 116 former Co-op convenience stores and attached petrol station forecourts into Asda Express shops.
The?supermarket?has rebranded 11 Asda Express stores so far in locations including Yorkshire and Devon.
The grocer plans to convert the remaining 105 by the end of Q1 next year, across sites including Manchester Oxford Road and Romford Station.
Asda acquired 132 sites from rival supermarket Co-op last year under a ￡438m deal.
The acquisition was approved by the Competition & Markets Authority back in June, after Asda agreed to divest 13 sites to satisfy competition requirements.
The move came under the?grocery giant’s?long-term strategy to become the UK’s second largest supermarket, by moving into the convenience market.
The new shops add to three existing stand-alone Asda Express stores based in Sutton Coldfield, London (Tottenham Hale) and Calne.
Asda co-owner?Mohsin Issa said: “We look forward to bringing Asda’s great value in fuel and groceries to many more communities across the UK and to welcoming over 2,000 former Co-op colleagues to the Asda family in the coming months”.
According to the supermarket, average grocery prices in the new Asda Express stores will be nearly 9% cheaper than those at the Co-op.
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