November 15, 2012

Biedronka opens store number 2,000 in Poland

Pedros Pereira da Silva (photo: Biedronka)
Pedro Pereira da Silva: The CEO of Biedronka is proud that the discounter has passed another milestone (photo: Biedronka)
Portuguese Jerónimo Martins Group is booming in Poland. With justifiable pride, COO Pedro Pereira da Silva sent our newspaper an SMS a few days ago. It was simply to say that discount subsidiary Biedronka had passed the 2,000-stores-mark and increased its market leadership. Clearly, Biedronka (Polish for ladybird) is well on the way to achieving its ambitious goal of 3,000 outlets by 2015. Given the doom and gloom at so many retailers in a growing number of European countries, it's good to hear a success story. So we asked da Silva, who is also country manager for Jerónimo Martins in Poland, to update us on progress in this important Central European country.
November 9, 2012

Advent pokers for Douglas Holding

Ranjan Sen, MD Advent International (photo: Advent International)
Advent International
Ranjan Sen: "Cosmetic surgery is not enough" (photo: Advent International)
Smart, eloquent and persuasive, Ranjan Sen is all that one might expect of an executive at a US private equity investor. Talking at Advent International's stylish Frankfurt office overlooking the River Main, the German-Indian Managing Director was surprisingly forthright. After all, his employers belong to an industry which is deliberately "private" and Advent is in the middle of a controversial bid for German retailer Douglas Holding. "We want to hold talks with the management about developing new formats," he says regarding the "Douglas" perfumeries. "Douglas should also use targeted assortments to win the lady customer who doesn't normally shop in a classic perfumery." O.K., sounds plausible, but what else could the Americans be after at the German "lifestyle group"?
November 5, 2012

Horse-trading at Douglas Holding on Advent bid

Douglas perfumery outlet (photo: LZ-Archiv)
LZ-Archiv
Desired fragrance: A Douglas perfumery in Germany (photo: LZ-Archiv)
Nine months after the confirmation of takeover talks, Boston-based private equity firm Advent International Corporation has presented itself as a potential buyer of Douglas Holding AG. Shareholders in the German “lifestyle” group have till December 4 to accept a bid price of €38 per share. This represents a 42 per cent premium on the undisturbed (four-week volume-weighted) share price before takeover rumours surfaced in mid-January. Enough to satisfy the punters? Advent can already count on the stakes held by three big shareholders amounting to 50.5 per cent. These include Oetker (25.81 per cent), the Kreke family (12.73 per cent) and Erwin Müller (12.01 per cent). However, the bid is dependent on Advent obtaining at least 75 per cent of Hagen-based Douglas Holding, an Mdax-quoted Plc. The question is, of course, will they?
October 31, 2012

German meat industry talks world hunger

H. Giesen, P-H. & P. Wesjohann & H. Schweer (photo: PHW_Lohmann)
PHW_Lohmann
Big Meat: Helfried Giesen (Westfleisch), Paul-Heinz and Peter Wesjohann (Wiesenhof) and Heinz Schweer (Vion) [from left to right] (photo: PHW_Lohmann)
As a spoilt post-war member of the world's "golden billion", it is hard to imagine hunger gnawing at your bowels. At the most, one has tried to diet. Therefore, it is easy to be philosophical about other people's hunger, even when the media regularly provide harrowing images of famine from Biafra to Eritrea in glossy magazines and on TV. It is also easy to be cynical when well-nourished managers from the German meat industry talk world hunger at the 9th Nutrition Symposium of the Heinz Lohmann Foundation in prosperous Hamburg. It is even more tempting to be so when trade representatives conclude in the presence of a former protestant bishop that a radical reduction in meat consumption would not significantly reduce world hunger. But what if the venue was for the good and not just an alibi for a profit-oriented status quo? And did it provide any insight as to how the world is going to feed an estimated 9.3bn people in 2050?
October 26, 2012

Pitfalls for global retailers

pitfalls for global retailers (photo: Kelly Marken_shutterstock)
Where angels fear to tread (photo: Kelly Marken_shutterstock)
Academics are always at their best when they challenge groupthink. Marcel Corstjens, Unilever Chaired Professor of Marketing at Insead, and Rajiv Lal, Stanley Roth Senior Professor of Retailing at Harvard Business School, seem to take almost mischievous pleasure in debunking retail myths. The latest holy cow they have attempted to slaughter is the globalisation of retailing. Admittedly, both men do not claim that there are no retailers who succeed internationally. However, they contend that internationalisation doesn't usually increase sales growth or profit margins for publicly-quoted grocery retailers. Despite their willingness to back their opinion with econometric analysis, this is a brave statement to make when top retailers such as Metro Group and Carrefour already operate in 30-odd viz. 40-odd countries.
October 19, 2012

Retailers & suppliers talk sustainability

Marks & Spencer CEO Marc Bolland (photo: Marks & Spencer)
Green disciple: CEO Marc Bolland is proud to call Marks & Spencer the "world's first carbon-neutral major retailer" (photo: Marks & Spencer)
As mankind relentlessly continues along its path of self-destruction, future researchers from elsewhere in the galaxy will perhaps one day debate the timing of the so-called “tipping point” when the process of cooking ourselves became irreversible. Satellite photography reveals that the arctic ice cap has receded 45 per cent since the year 2000, and some experts estimate that it could disappear altogether during the summer months as early as 2016. Doubtless, alien historians will note with puzzlement that we had due warning of the catastrophe. The World Wildlife Fund computes that the human race is living as if we had one and a half worlds at our disposal in terms of resources. We Europeans are consuming enough for three worlds and our American cousins for five. Add another 2.5bn people by 2050, and most of us are in denial. “Why don’t we act?” asks Keith Weed of Unilever.
October 12, 2012

Tengelmann resurrects in Russia

A Plus store facade (photo: Jörg Konrad)
Jörg Konrad
Like a phoenix from the ashes: A "Plus" store in Germany before its sale in 2008 to rival Edeka (photo: Jörg Konrad)
Given its vast contraction in bricks & mortar, you could have knocked our newspaper down with a feather when Tengelmann this week that it plans to open "Plus" stores in Russia. Up until the 1990's, Tengelmann was one of the big boys in German and international retailing. But the family-run company then gradually imploded, leaving, for instance, A&P smashed by the wayside in the US. It also sold soft discounter "Plus" in Germany and eight other European countries in 2008. Today Tengelmann Group is only a regional supermarket player in Germany with holdings in DIY operator "Obi", textiles discounter "Kik", and Edeka Group discount subsidiary "Netto". It has also become an imaginative investor in numerous online start-up operations including Zalando. But why now Russia?!
October 10, 2012

Tegut, Migros and German retail concentration

Wolfgang Gutberlet, majority holder of Tegut (photo: Hans-Rudolf Schulz)
Family Nestor: Wolfgang Gutberlet still holds a majority stake in Hessian superstore operator Tegut (photo: Hans-Rudolf Schulz)
Ah, the good guys have found each other at last in the bar and are negotiating an agreement as the publican calls for last rounds. For good guys read Tegut as seller and Migros Zurich as buyer, for publican read the German cartel office in Bonn. Foreign readers can be forgiven if they don't know Tegut as this family-run local hero is hardly known much beyond home borders in the Federal State of Hesse. If you want Tegut in a nutshell, think a medium-sized superstore operator whose 300-odd outlets of varying sizes carry an above-average percentage of organic food. Then add a slightly whimsical dash (meat is hung to classical music in order to improve the karma and quality). What? You don't know Migros either? Now that is a gap in your knowledge.
October 5, 2012

Digitally-enhanced retail destinations

M&S store facade, Cheshire Oaks/UK (photo: Marks & Spencer)
Marks & Spencer
Experimental hotbed: M&S are testing many new online ideas at their Cheshire Oaks branch (photo: Marks & Spencer)
True to its aims, World Retail Congress 2012 (WRC) was an insightful experience. Clearly, many UK and international retailers are experimenting with so-called “digitally-enhanced destinations”. These leading players are integrating their online offer within their stores in order to create an omni-channel experience for their customers. Surely, this is the way forward for physical retailers? At Marks & Spencer’s new Chester Oaks store near Chester, for instance, store customers can order from the company's entire catalogue at twelve “browse & order” terminals. With perhaps more than a side glance at Apple, these terminals have been deliberately designed in an attractive high-tech way. “Customers engage more if the screen is fitted to store design,” says online director Laura Wade-Gery.
October 5, 2012

Brave new omni-channel retail world

Philip Clarke, Tesco International CEO (photo: Mark Mackenzie)
Tesco CEO Philip Clarke: “The online and offline retail experience needs to be like a bespoke, handmade suit” (photo: Mark Mackenzie)
At this September’s World Retail Congress in London, one subject seemed to dominate top British retailer minds: online. This is hardly surprising in a country where ecommerce has a world-leading retail share of 9 per cent which could increase to 25 per cent by 2020. But how are still essentially store-based retailers coping with the challenge? Whether Tesco, Marks & Spencer or John Lewis Partnership, many UK retailers intend to ramp up their digital offers while integrating them more fully into their physical store bases. Becoming a truly multichannel retailer, however, is easier said than done on a home market in the grip of a double-dip recession. Increasingly digital-savvy consumers are ruthlessly comparing prices via mySupermarket etc., and half the clicks on Tesco.com are price comparisons.