Tesco Profits Increase by 28%
Tesco Profit Surge
Convenience Store is reporting that full-year profits for Tesco were £1.7bn for 52 weeks to 23rd February 2019 on total sales of £63bn. Like for like sales rose 2.9% with Tesco up 1.7% and Booker up 11.1%. This year has seen Tesco relaunch its 10,000 strong own label range and introduce Booker "bulk buys into 70 Tesco stores. David Gilroy of Store Excel commented: "These are stunning figures from Tesco and Booker. Particularly Booker who are seriously out-performing the market."
Shoppers to turn to C-Stores for Easter top-ups
Talking Retail is reporting that more than 70% of consumers are likely to visit their local convenience store to pick up shopping items that they have either forgotten or run out of over the Easter break according to new reseacrh by Bestway Wholesale. Paul Adams head of sales for Best-one said: "This new survey reinforces the importance of local convenience stores as the nation's go-to port of call for essential or forgotten shopping items especially over Bank Holidays." Note to retailers from Store Excel. Check out our website article Looking Ahead to April for an Easter product checklist.
Google says C-Stores need a "digital shop front" to Thrive
Convenience Store is reporting that Harry Walker of Google speaking at the ACS Summit in Birmingham this week said consumers were increasingly searching for grocery options on the internet. He said that Google searches for "Spar near me" had grown 132% year on year while there had also been a 50% increase in "supermarket near me" searches. Thus suggesting that consumers were becoming less brand loyal.
Tesco/Booker investing in retailers
Better Retailing is reporting that Dave Lewis, CEO Tesco is stating that the company has been able to invest more into Booker's retail partners as a result of synergies relating to Booker's ongoing campaign: "Bigger group - better for all." This was first reported in RN in March. It includes the discount tobacco club for symbol partners, better quality for Farm Fresh produce now sourced via Tesco and reduced wholesale pricing on key fresh meat lines.
Co-op is targeting 200 franchise stores
The Grocer is reporting that the Co-op believes it could grow its franchise model to 200 stores in time. The retailer posted 4.4% like for like sales increase in its food business for the year to 5th January 2019. The Co-op also currently has a 5-year supply deal with Costcutter and is looking for more alliances.
Sales of cigaretes in the USA are falling rapidly as smokers switch to vaping.
Convenience Store is reporting that sales of cigarettes fell by 8.8% year on year in the four weeks to March 23rd 2019 in the USA according to US syndicated market data from Nielsen which tracks cigarette sales. These figures follow a 8% decline in February and an overall decrease of 5.3% in 2018.
Join in the discussion of this article