August 18, 2016

Dixy Group CEO da Silva talks Russian retailing

Pedro Pereira da Silva, CEO Dixy Group (photo: Dixy Group)
Pedro Pereira da Silva: "We see no constraints on the opening of new stores throughout Russia"
Pedro Pereira da Silva has been the frontman of Dixy Group for just over five months now. At first blush, the former CEO of leading Polish grocer Biedronka and COO of Lisbon-based parent Jerónimo Martins is a pretty unlikely candidate to run Russia's fourth-largest retailer. After all, the 48-year-old manager is Portuguese and only a year ago couldn't speak a word of Russian. So he made a big career gamble on an Uncle Vlad Russia hit by EU sanctions in an economic recession. But what looks like madness has, on closer investigation, method. When the owners of Dixy, including Russian billionaire Igor Kesaev, poached da Silva from his former employers at the beginning of March, his retail credentials were sparkling. During a 16-year stint at Biedronka, he transformed the discounter into a vibrant market leader. Success counts the world over, but nowhere more so than with the pragmatic, yet highly-imaginative Russians. Now they've got him, though, where does da Silva want to take them?
August 4, 2016

BIM CFO talks retailing in Turkey after the coup

Haluk Dortluoğlu opens BIM subsidiary FILE (photo: BIM)
Confident in a crisis: Haluk Dortluoğlu masterminded BIM supermarket subsidiary FILE
After the failed coup d'état by disaffected members of the military on July 15, Turkey remains on edge with thousands of its citizens still in detention. In the wake of terror attacks since March 2015 and tensions with Russia, the Turkish lira had already fallen by nearly 10 per cent against the euro and to a record low against the dollar. As more rating agencies prepare to downgrade the republic's creditworthiness, international investors look on with a wary eye. In view of the fact that there were tanks on the streets just a few weeks ago, it was brave of Haluk Dortluoğlu to give an interview. The executive committee member and CFO of leading grocer BIM clearly believes that modern self-service retailers still have strong growth prospects in what has been a dynamic threshold economy.
July 28, 2016

Ahold Delhaize has a red letter day

Ahold Delhaize celebebrates its first day on Euronext in Amsterdam (photo: Euronext)
Married at last: After a 13-month wait for cartel office approval on both sides of the Atlantic, Ahold Delhaize celebrates its début on the Euronext exchange in Amsterdam this Monday
Perhaps Ahold Delhaize were guided by the spirit of the English saying: "One for a wish, Two for a kiss, Three for a letter..."? But, whatever the motivation, on the very first workday after leading Dutch grocer Ahold and number two Belgian retailer Delhaize merged last weekend, they sent a "welcome letter" to their top 100 suppliers in the Benelux expressing a heartfelt desire for "a good future relationship". In the brutal cut and thrust of modern-day business this kind of thing can only bring tears to one's eyes. After all, love between retailers and manufacturers is as beautiful as it is rare. Doubtless, however, all was in a good cause. For how else could this new retail giant give expression to its joy now that it posts around €63bn in annual sales in a total of eleven countries, including Germany and, somewhat improbably, Indonesia? Like children clinging to the hope of Santa Claus on Christmas Eve, trusting food producers and fmcg manufacturers would want to believe that the celebratory letter-writing exercise was motivated by a deep spirit of altruism and brotherly love. But a bad grown-up in the shape of Bernstein has shattered this belief for ever.
June 30, 2016

Is there retail life after Brexit?

Departures (photo: alice_photo/Fotolia_80256796_S)
Farewell Britannia: Either the Brits have made a big mistake, or they have ended one
The result of last Thursday's referendum on EU membership was about as surprising as the England vs. Iceland game in the UEFA Euro 2016! But, now that a small majority (52 per cent) of UK voters has plumped for Brexit, all of Europe will have to live with the consequences. Although the decision is not binding for the government, political pressure on the successor of outgoing prime minister David Cameron will oblige him or her to trigger Article 50 of the Lisbon Treaty and begin what are likely to be acrimonious negotiations as from January 2017 with a 27-member bloc whose GDP has just shrunk by around 17 per cent. Despite fears in Brussels that protracted negotiations could fracture the Single Market still further, the conclusion of new trade agreements is likely to be long and complex. Greenland took three years to leave, but there fish was the only issue and population about that of a football stadium. The sheer complexity of the divorce will doubtless have all lawyers rubbing their well-manicured hands, but what will be the likely fallout from the Brexit bomb for retailers in the UK?
June 15, 2016

Hug a Brit and stop Brexit?

#HugABrit (photo: #HugABrit)
In the course of history, perfidious Albion has often managed to irk poor Continentals, and, as the latest opinion polls point towards Brexit, the outcome of the referendum on June 23 is likely to be no different. Given the regulatory headaches and higher labour costs that this vote would entail, it would be hard to find any major retailer or fmcg manufacturer who welcomes it. However, few have been prepared to alienate half of their customers by following Asda CEO Andy Clarke – still in a job until July 11 – in openly declaring for "Remain". Admittedly, the inflation likely to result from a big fall in sterling and the higher unemployment from a loss of business with the EU (currently amounting to 44.6 per cent of the UK's exports of goods and services) could well benefit Aldi and Lidl as Little Englanders feel the pinch in their pockets. But even for the German discounters Brexit would be a mixed chalice.
June 9, 2016

Mymuesli – A Bavarian success story

mymuesli co-founder Max Wittrock (photo: Viktor Strasse)
mymuesli co-founder Max Wittrock: "We know how to tell a story"
Had one no other reason for loving the German-speaking nations, one would simply have to do so for their giving the world muesli (granola) and brightening up our breakfast tables. Strangely, muesli once had a Cinderella existence on German supermarket shelves. Its potential as a category clearly hadn't been recognised. Consumers either made it themselves or munched American cornflakes. Like most foods, muesli has a lot to do with culture and Zeitgeist. It was first discovered by the student generation in the 1960s and 1970s, so it was long deemed the province of long-haired hippies playing folk guitars and practicing free love. This delicious food only really became mainstream in the 1980s and 1990s when the manager generation gradually recognised its nutrient qualities. So instead of schnapps and black coffee, they now give themselves a vitamin rush to power away the day on. Since then we have obviously experienced the digital revolution, so what could be more logical than to order muesli on the internet?
June 9, 2016

Jürgen Schröcker makes retailers fit & sexy

It's just like sex (photo: Hornbach)
During a very successful career as Chief Marketing & Personnel Officer, Jürgen Schröcker forged an edgy corporate image at arch-conservative DIY group Hornbach until he left to become a management consultant in 2013. One could make out a very good case for a pre- and a post-Schröcker era in German DIY advertising. Prior to his brilliant work, targeting the so-called project customer at Hornbach, DIY advertising was generally deadly boring and very predictable. Post Schröcker it almost has cult status.
May 31, 2016

Schwarz Group surges relentlessly forward

Speedometer (photo: Björn Wylezich/Fotolia)
Flashing its lights for the guy ahead to get out of the way, Schwarz Group continues to thunder down the fast lane of the international retail autobahn like a Porsche Cayenne. The secretive Swabian parent of small- and big-box discounters Lidl and Kaufland now looks almost unstoppable on its route to world domination. Meanwhile, the sober clique around elusive founder Dieter Schwarz at head office in Neckarsulm must be almost drunk with success. Exaggerating? Just look at the needle on the speedometer, dear reader, you'll find the latest figures exhilarating...
May 20, 2016

German CEO Ralf Kleber talks Amazon

Amazon Germany CEO Ralf Kleber (photo: Hans-Rudolf Schulz)
Ralf Kleber: "We deliver the answer"
Amazon managers don't give many interviews. Like Facebook, Google and other US online giants, Amazon wants to know everything about us customers, but isn't so keen on total transparency the other way around. Perhaps this is because the $100bn-revenue, Seattle-based company has learned that there is a downside to becoming increasingly omnipresent in the lives of consumers, providing the online customer with books, music, films, dry goods and, increasingly, fresh produce. Tax authorities lour over your every domicile; EU bureaucrats and US presidential candidates attack you for being monopolistic; and you become a prey to lobbyists.
May 12, 2016

Amazon Prime delivers fresh food in Berlin

Prime Now delivery bike at the Potsdamer Platz wall (photo: Amazon)
Meals on wheels
First we take Manhattan and then Berlin? Or was it Seattle? At any rate, the US online retail giant began delivering fresh food this week in the German capital with its 3.5 million inhabitants. For an annual fee of €49 Amazon Prime customers can choose from a programme of around 20,000 lines, ranging from batteries to high-definition TVs. This includes an initial assortment of over 4,700 food & drink items with more than 100 deep frozen and 200 dairy products as well as around 60 fruit & veg lines. This week's move provides a clear indication that Amazon intends to intensify its competition with local retailers. Grocers beware?