Research Institute IGD has recently published a new report looking at the growth prospects for major grocery markets across Asia over the next two years. IGD highlighted some of the key findings and why Asia remains a major growth opportunity for FMCG and retail businesses, particularly in the short term. 1. Asian markets are expected to recovery rapidly post-pandemic Most Asian grocery markets experienced accelerated growth during 2020 as consumer spending on food shifted from out-of-home to at-home channels. Despite this, the volatility in sales across Asia have not been as strong as in other regions, albeit the impact has varied significantly by market. As we have seen across Europe, North America and Australasia, some markets have seen large spikes in sales (e.g. Singapore), while others have recovered rapidly (e.g. China), and some have even seen sales heavily impacted (e.g. Thailand). The general lack of volatility means that our model suggests that we expect many grocery markets to have a more stable recovery out of the pandemic and return to growth rapidly. 2. Asia will be the second fastest growing region globally between 2020-22 Regionally we expect growth to remain strong over the coming years. We expect Asia’s regional grocery market to grow at a CAGR of 5.5% between 2020-22. Although this will be at a subdued level to that previously expected pre-pandemic, Asia will see the second fastest growth (after Africa) of any region globally over the next two years. However, do remember that each market will recover at its own pace. By 2022, Asia will account for over 37% of the world’s grocery sales. This is almost the same as North America and Europe combined! With 56% of the world’s population in Asia, as affluence levels increase, the region will increasingly assert more control over the global grocery market in the coming decades. Successfully tapping into Asia's growing middle class and the latest trends provides some exciting long term growth prospects for both retailers and brands. 4. Asia will account for over half of additional global grocery sales between 2020-22 In the short term, Asia will contribute more additional sales to the global grocery market than all other regions combined. The region will account for 58% of all additional grocery sales generated between 2020 and 2022. In contrast to other regions, Asia also provides businesses with real growth opportunities (as opposed to growth simply driven by inflation). Although inflation will still account for almost 50% of growth in Asia, this is far lower than comparable levels seen across other regions, with population and spend growth remaining far stronger in Asia. In basic terms, this means Asia will drive significantly more volume growth than any other region. China and India do dominate the landscape, with 63% of all grocery sales in Asia generated by these two markets by 2022. They will also account for 70% of total regional growth over the next two years. On paper a no brainer, but trading in both these markets can be a daunting prospect given their scale, the need to understand cultural variations, shopper preferences and navigating legislation, not to mention how to service huge traditional trade sectors and distribute products. Across the region, although they might not have the huge scale of China and India, other markets provide some highly attractive growth prospects, with Pakistan, Bangladesh, Vietnam and the Philippines all expected to see some of the fastest growth between 2020-22. See here for more: https://retailanalysis.igd.com/subscriber-home/news-article/t/five-reasons-fmcg-businesses-should-be-investing-in-asia/i/28010

German Retail Chain REWE Group (owner of Discount Retail Chain Penny) achieved total external sales of 75.3 billion euros (US$90Bn) for the first time in the 2020 financial year, thanks to the successful integration of the Lekkerland Group. Compared to the previous year (62.7 billion euros), this is an exchange rate-adjusted increase of 20.4 percent. The turnover of the REWE Group excluding independent franchise retailers and at-equity companies grew by 23.9% adjusted for exchange rate effects from 55.3 billion to 68.2 billion euros. “The year 2020 was of course also overshadowed for us in the REWE Group by the consequences of the corona pandemic. We were ultimately able to achieve our self-imposed economic goals because the positive development in our retail business has offset the heavy burdens on our tourism division,” explained Lionel Souque, CEO of the Cologne-based retail and tourism company, on the occasion of the publication of the business figures that have not yet been audited. “I would particularly like to thank the more than 380,000 employees of our company at home and abroad as well as our businesspeople for their excellent performance and their great commitment under the difficult conditions of the Corona crisis. The cohesion in our cooperative has grown further. I'm particularly proud of that. ”The successful integration of the Lekkerland Group has added a new and very promising business area to the REWE Group. "With the Lekkerland Group, we have excellent future prospects in the growing convenience business in Germany and Europe." Souque also stated that the REWE Group is planning to increase its investments again in order to modernize its stores, expand the logistics infrastructure and continuously develop digitization. “After around 1.9 billion euros in 2020, we will increase our investments to 2.3 billion euros in the current financial year. We are planning to invest this amount in the following years 2022 and 2023." Under the umbrella of the cooperative group, the independent grocery trade again developed very strongly. The REWE merchants in Germany achieved an increase in sales of 20.5% compared to the previous year. The number of employees in Germany and other European countries rose by around 22,000 to around 384,000, 282,000 in Germany and 102,000 internationally. This corresponds to an increase of 6 percent. The number of trainees at REWE Group in Germany (as of September 30, 2020) increased by 388 (+4.1 percent) to 9,762, of which 4,409 trainees started their training in 2020. REWE Group: sales growth and decline in consolidated earnings The turnover of the REWE Group from continuing operations increased by 23.9% adjusted for exchange rate effects from 55.3 billion to 68.2 billion euros. Sales in Germany rose by 24.4 percent to 46.6 billion euros; abroad adjusted for exchange rate effects by 22.7% to 21.6 billion euros. The operating result EBITA rose from 910 million euros in 2019 to 1.22 billion euros. EAT consolidated earnings fell from EUR 507 million to EUR 415 million. This decline is due to a significantly higher tax burden, which is due, among other things, to the DER Touristik Group losses that cannot be offset. The REWE Group's EBITDA rose from EUR 4.1 billion in the previous year to EUR 4.4 billion. Investments in property, plant and equipment and intangible assets totaled 1.9 billion euros, around 140 million euros above the investments made in 2019. Equity rose from 7.3 billion to 7.6 billion euros. The net financial debt without finance leasing was 1.7 billion euros as of December 31, 2020. Sales development in the business fields and divisions of the REWE Group In the national full range with retail sales in REWE branches and wholesale sales by merchants and other partners, sales rose by 12.3 percent from 23.6 billion euros to 26.5 billion euros. In the international full range, REWE Group sold its stores in Ukraine in the 2020 financial year and is now present with supermarket and drugstore activities in Austria, the Czech Republic, Slovakia, Russia, Bulgaria, Croatia and Lithuania. Sales rose by 2.4 percent from 10.1 billion euros (currency-adjusted 3.6 percent) to 10.4 billion euros. The full range of Austria with BILLA, BIPA, MERKUR and ADEG generated sales growth of 4.3% to 6.8 billion euros. In the Discount Nation, PENNY Germany achieved a sales increase of 5.4% and thus for the first time 8 billion euros in external sales. PENNY achieved even more dynamic growth in Discount International. In Italy, Austria, Hungary, Romania and the Czech Republic, PENNY increased sales by 8.3% from 5.1 billion euros (currency-adjusted by 11%) to 5.5 billion euros. In the new Convenience business area with the national and international activities of the Lekkerland Group in Germany, the Netherlands, Belgium and Spain, total external sales of 13.1 billion euros were achieved. This figure also includes the REWE To Go segment for the first time. In the DIY store segment, including toom DIY store, sales rose by 19.9% from 2.2 billion euros to 2.7 billion euros. The decline in consolidated sales in the Tourism division was serious. There was a decrease of 5 billion euros by 73.9 percent to 1.3 billion euros. See here for more: https://www.rewe-group.com/en/press-and-media/newsroom/press-releases/rewe-group-turnover-tops-75-billion-euros-for-the-first-time/?mkt_tok=ODk3LU1CQy0yMDcAAAF8jgZf0DR8cr6Bs2xX3AojdHGYq7SuExCYKsDLL3wC89_q1K9kw4DTFekH05KUYVgcZYPqLQmncHjhZCcIg0pjmcdTYQ_LpFbgTrLWmHTc

Variety Discount Retail Chain Poundland (owned by South African Steinhoff International's daughter Pepco) has applied to trademark ‘Poundland Local’ and ‘Poundland Go!’, pointing to its latest plans for new convenience store formats. Poundland Local is to apply to stores in small towns and close to urban neighbourhoods, while Poundland Go! is for a new convenience format near transport hubs. Each of the trademarks includes a banner-style logo. Poundland first announced plans to split its estate into new store formats in July last year, as part of what it called the biggest transformation programme in its 30-year history. The plans have been refined since that announcement, which said there would be three types, called ‘core’, ‘convenience’ and ‘destination’. “We expect to trial a small number of convenience store formats in the coming months,” a spokesman told The Grocer today. “Poundland Local will be primarily in small towns and retail clusters close to residential and urban neighbourhoods. “Poundland Go will be a convenience format adjacent to transport hubs.” He said more details including the first locations would be announced within weeks. “The initial pilot stores will be smaller than a typical Poundland and we believe there is potential for a smaller format to support our growth,” he added. Poundland’s transformation programme has seen it expand grocery and fmcg, add new price points and roll out frozen and chilled ranges. Earlier this month it said stores were getting more “day-to-day brands such as Nutella, Marmite and Old El Paso”. Today, the retailer also announced the latest 46 stores to get frozen and chilled, following its acquisition of Fultons Foods last year. It brings the offer to a number of branches in the south of England, including in London, Worthing and Southampton. They are among 175 stores to gain frozen and chilled so far, a number set to rise to 500 over two years. The most recent developments include tweaking store layouts and reconfiguring the self-checkout area to streamline the shopping experience. “The past year has shown how important Poundland stores are to their local communities and providing a range of chilled and frozen food means our customers can get more of what they need in one shopping trip,” said retail and transformation director Austin Cooke. “Where we’ve given stores a makeover, the feedback has been tremendous. Shoppers love the extended ranges, and not just in chilled and frozen, and they really like the store layouts and the work we’ve done to make it easier to shop and check out.” Poundland has also been working on an online launch using a former Cannock store as a fulfilment centre. The plans were announced last July, when Poundland said the service would launch early this year. See here for more: https://www.thegrocer.co.uk/poundland/poundland-planning-new-formats-poundland-local-and-poundland-go/655273.article?utm_source=Daily%20News%20(The%20Grocer)&utm_medium=email&utm_campaign=2021-04-20&c=&cid=DM963335&bid=1567178312

Discount Retail Chain Aldi UK (privately owned) has launched a trial selling its first packaging-free products in its latest push to help customers shop more sustainably. The trial is available at one store in Ulverston, Cumbria, and if successful, Aldi said it would look to develop its refillable options in other stores in the future. Four household staples such as basmati rice, brown rice, penne pasta and wholewheat fusilli are available to buy loose in store. The move could remove more than 130 tonnes or more than 21 million pieces of plastic annually from stores. The products are available by weight, and Aldi said it would provide customers with free paper bags that are fully recyclable and made of FSC-certified material. “Customers at our Ulverston store can now buy the same high-quality items they know and love, while also cutting down on plastic packaging,” Aldi packaging director Richard Gorman said. “We’re always looking for new ways to reduce waste plastic and limit packaging, as many of our shoppers are increasingly conscious of the environment and their impact on it. “We hope local customers embrace the trial and we will use their feedback to inform any future plans around refillable products.” In 2020, Aldi announced its ambitious new commitment to halve the volume of plastic packaging used by 2025. This will see it remove 74,000 tonnes of plastic packaging from products over the next five years. The discounter, which has been carbon neutral since January 2019, is also on track to have all own-label products as recyclable, reusable or compostable by 2022, and branded products sold at Aldi by 2025. See here for more: https://www.retailgazette.co.uk/blog/2021/04/aldi-launches-package-free-products-trial/

Discount Retail Chain T-MARKET (owned by Lithuanian retail chain Maxima) will open four more new stores in Bulgaria by the end of the year, and plans to renovate at least four more, the company said. "As before, we are planning to open stores all over the country, including in smaller towns, to find new jobs and to invest more and more in our employees and their competencies, and we have built a stable team of more than 1500 employees", says Edwinas Volcass, managing director of the owner company Maxima Bulgaria. T-MARKET is part of MAXIMA GRUPE and works in Lithuania, Latvia, Estonia and Poland. It has been present on the Bulgarian market since 2005. The total number of discount stores in Bulgaria is 74. The four new stores in Bulgaria are part of a total of 140 new locations, which the chain is considering opening. The total investment for this year is € 100 million (US$120 million). Maxima Grupe plans to invest a total of € 600 million (US$720 million) in opening new premises and renovation over the next few years. In addition, it is intended to limit the cost to the company, with the expectation of achieving efficiency gains of € 500 million (US$600million) over 7 years. The group has also set a target for growth of 7% each year. Last year, Maxima Grupe acquired the company that operated the Polish supermarket Stokrotka in a deal worth € 284 million (US$340 million). This Lithuanian company became the owner of more than 560 stores in the Central European country. See here for more: https://www.novinite.com/articles/195828/T+MARKET+Opens+Four+New+Stores+in+Bulgaria

Discount Retail Chain T-MARKET (owned by Lithuanian retail chainMaxima) opened its first store in Svilengrad. This is the 44th city in the country where the company set foot, and the total number of stores is already 89. The new site was opened by Petar Pavlov, General Director and Iliya Belev, Operational Director. In order to comply with the measures imposed to limit the distribution of Covid-19, the official ceremony took place only in front of the employees of the new store. "I am happy that despite the continuing complicated situation related to the pandemic, T MARKET is constantly evolving, and the family of Maxima Bulgaria is growing, both with new employees and new customers. I believe that with our attractive prices we will give the citizens of Svilengrad an excellent choice of goods both food and non-food.", said Petar Pavlov, General Director of Maxima Bulgaria. The new T-MARKET store in Svilengrad opens 23 new jobs in the city, and the whole family of Maxima Bulgaria already numbers over 2,300 employees. "I would like to thank all our colleagues for their tireless efforts in their daily work and to call on our clients to protect each other, respecting anti-epidemic measures and being tolerant of others," said Iliya Belev, Chief Operating Officer and Member of the Board of Directors. of Maxima Bulgaria. T-MARKET continues to offer its customers some of the lowest prices on the market and does not stop proving that they are the practical choice of the Bulgarian. The new discount supermarket has a wide variety of brands and quality goods. And in this site customers will be able to try traditional Bulgarian dishes from the warm showcase of T-MARKET, as well as grill products. They are prepared in the chain's own workshop, under the watchful eye and professionalism of master chefs. Also, customers will find a wide selection of ready-made fresh salads, confectionery stand, fruit and vegetable area, non-food sector and last but not least, 100% fresh Bulgarian meat. The bread bar will offer a wide range of pastries baked on site. A special and rich section is provided for the supporters of BIO and organic foods. See here for more: https://tmarketonline.bg/article/t-market-otkri-svoya-89-ti-magazin?utm_source=linkedin&utm_medium=post&utm_campaign=otkrivane-na-nov-magazin-130421

Discount Retail Chain Lidl Germany (owned by Schwarz Gruppe) is constructing the most modern and sustainable Lidl administration and goods distribution center in Germany is currently being built in Erlensee in Hesse. A lot has changed on the site since the groundbreaking in June 2020: The prefabricated parts for the hall walls have been installed, the roof of the goods distribution center has been covered and the car parking spaces and the rainwater retention basin have been created. The facade is currently being completed. The hall floor was recently poured in the building and the interior work is starting. Completion of the DC planned in autumn, commissioning planned for 2021 “We are pleased with the rapid construction progress. The new building for our regional company will be ready for occupancy in autumn. We plan to start delivering to the Erlensee branches this year, ”explains Maximilian Wiedmann, Director of Real Estate, Project Development and Warehouse Expansion at Lidl in Germany. Focus on sustainability The administration and goods distribution center in Erlensee will receive platinum certification from the German Society for Sustainable Building. Only a few logistics properties in Germany carry this award. The sustainability measures in Erlensee include the use of ecological, high-quality building materials as well as particularly efficient thermal insulation and insulation of the building envelope. The cooling systems are operated exclusively with natural refrigerants and are also designed to be particularly energy-saving. The entire building is heated by the waste heat from these systems, so that no fossil fuels have to be used. The largest photovoltaic system at Lidl in Germany produces around 1.2 million kilowatt hours of electricity per year. By using rainwater and service water as process water, Lidl saves around 2,500 cubic meters of drinking water annually. As part of Lidl's own species protection program “Lidl Habitat”, a 28,000 square meter flowering meadow is also being created for wild bees and beneficial insects. See here for more: https://unternehmen.lidl.de/newsroom/storys/alle-storys/210406_baufortschritt-erlensee

The pandemic brought unprecedented volatility to US grocery purchasing in 2020, but consumers continued to favor store brands for about one of every four purchases across all major food and nonfood categories. Retailers' private brand accounted for 23.4% of all units sold in NielsenIQ's calculation for all outlets combined, which includes total US supermarkets, mass, club, and dollar discount channels, as well as drug chains. About one out of every five dollars spent by shoppers in all outlets, or 19.5% was for the retailer's store brand. Both figures were equal to the market share reported for the full year prior to the pandemic. The 2020 sales figures provided to PLMA by NielsenIQ reflect the stength of store brands in the major grocery channels as American families learned to cope with the pandemic. Combining socially distanced shopping in stores with online purchases for curbside pickup and home delivery, consumers spent $16.5billion more (+11.6%) on store brands and $86 billion more (+12.8%) on all brands in the country's retail stores compared to the year prior. See here for more: https://issuu.com/americandemographics/docs/plma_2021_yearbook_-_issuu/1?ff

Discount Retail Chain Lidl Poland (owned by the German Schwarz Gruppe) has launched the first outlet format store where products other than food can be bought at huge discounts. Lidl's outlet store was established in Opole. Biedronka has been running stores in this format for several years. Also in some Carrefour hypermarkets outlet zones were created. "In mid-March, we opened an outlet store in Opole. It is a test store and at the same time the first facility of this type," informs Business Insider Polska Aleksandra Robaszkiewicz, head of communications at Lidl Polska. The Lidl Outlet store was opened at ul. Ozimska 184, where until recently a regular Lidl store was located in the rented building. However, the company decided to build a new, independent store opposite, the new Lidl facility operates at ul. Aleksandra Kazimierskiego 1. It was decided to use the previously rented space in the old building for testing the outlet. We will not find food in the Lidl outlet store. You can only buy industrial products there, i.e. women's, men's and children's clothing, electronics and household appliances, footwear, home and garden accessories, decorations, furniture. All at prices up to 80%, less than in the traditional offer. "All articles are fully valuable, they are overstocks and rests of the weekly promotional in&out actions. They are subject to the same rules of purchase and return as in our regular stores," says Robaszkiewicz. It is not known whether more Lidl outlets will be created. The chain currently has over 750 regular stores in Poland. Biedronka has already outlet store for several years For several years, Biedronka has started to launch its own outlets stores, initially it ran them under the name Towaroteka, and in 2018 it also started opening stores under the Biedronka Outlet brand. The first one was built in Poznań, but it is no longer operational. At present, Towaroteka has 19 stores in 18 cities, incl. in Gdańsk, Bolesławiec, Łomża, Mielec and Lublin. "Customers appreciate the possibility of purchasing industrial products at reduced prices, which is why we have been offering them these products for several years not only in our regular stores, but also in Towaroteki," tells Karol Leszczyński, operational director at Jeronimo Martins Polska. The Biedronka chain (owned by the Portuguese Jeronimo Martins) currently has over 3.100 discount stores in Poland. See here for more: https://businessinsider.com.pl/finanse/handel/pierwszy-outlet-lidla-w-polsce-ceny-oferta/p5msslb?utm_source=bankier.pl&utm_medium=content&utm_campaign=article

Discount Retail Chain Aldi Nord Group (privately owned) opened its 5,000th store in Cala Millor, Mallorca. It is the 336th Aldi store in Spain, and has planned 40 new openings for 2021 in Spain. In Poland, Aldi will have 200 stores by the end of the year and this number will increase with each further year. The first Aldi store in Mallorca was opened in 2015. The new, 5,000th store of the Aldi Nord Group is also the 9th store of the chain on the island. In accordance with the standard building requirement guidelines of the Aldi Nord Group, it has been equipped with the latest pro-ecological solutions, including LED lighting and CO2 cooling systems. In the store's car park, customers will find a charging station for electric vehicles. "We want to strengthen our presence in regions that are strategic for us and reach areas where we are not yet present. The development of the network in all countries of the group follows our mission. Aldi offers consumers the highest quality products at the lowest possible prices," says Valentin Lumbreras, president of Aldi Supermercados S.L. Although the development of the Aldi Nord chain takes place mainly in an organic manner, the Group companies are also systematically examining the potential that may result from acquisitions. The largest acquisition so far in the Group's history was the acquisition by Aldi France of 549 stores and 3 warehouses of the Casino Group in 2020. Aldi currently has 169 stores in Poland. This year, the discount retail chain plans to open 45 new stores and invest in green energy. By the end of 2021, the chain's stores will be available in most voivodeships in Poland. "We consistently focus on the development of the store network in Poland and despite the pandemic, we are not slowing down. In the second half of April, we are opening the 170th store and we are waiting for the opening of the 200th store this year. Our expansion, as well as the opening of the 5,000th store of the entire Aldi Nord Group, is carried out in accordance with plans to increase brand recognition and reach a wider group of customers for whom Aldi will become a store for everyday and favorite purchases", says Tomasz Gawlik, Director of the Real Estate Area and expansion of the Aldi chain in Poland. See here for more: https://www.wiadomoscihandlowe.pl/artykul/grupa-aldi-nord-ma-juz-5-tys-sklepow-w-polsce-do-konca-roku-bedzie-ich-200

Discount Retail Chain Lidl Sweden (owned by German Schwarz Gruppe) inaugurated its new head office in Barkarbystaden when Swedish CEO Johan Augustsson cut the inaugural ribbon in a Corona-safe environment. The new, over 15,000 square meter head office will have just over 400 of Lidl's approximately 5,000 employees in the future. With the new head office, Lidl is gathering further strength to intensify competition and challenge the major dominants in the Swedish food market. Construction of the new, 15,000 square meter headquarters began in 2018 and is now finally complete. The new office has received the environmental certification Breeam Excellent and will initially accommodate just over 400 workplaces. However, there is room for 600 employees, which is in line with Lidl's ambitions to continue to grow in Sweden. Opposite the new head office, a new store was opened at the end of 2020, which will function as a test environment for developing Lidl's stores. Sweden manager Johan Augustsson cut the ribbon for the new office and welcomed the employees. "We are incredibly happy to finally be able to start working at our new head office, specially adapted to our needs. Last year we opened our 200th store in Sweden and this is another important milestone for our expansion and to strengthen our position in Sweden. We look forward to gathering our entire central organization in one and the same building, as we have previously been spread over several locations and offices. Now I long for us to have the opportunity to be seen on site in the new office in the future", says Johan Augustsson, Sweden manager for Lidl. The new office is specifically designed according to Lidl's wishes and needs. The roof is covered by a lawn where insects and small birds thrive. In the middle of the building there is a large open atrium and around the atrium there are desk workplaces, areas for meetings, collaboration and more. "I am very happy that Lidl is now opening its head office in Järfälla. It contributes to attractive workplaces in the area at the same time as it clearly shows Barkarbystaden's attractiveness for office and retail establishments. Lidl's concept is also a welcome addition to the sustainable district that we are now building," says Emma Feldman, chairman of the municipal board in Järfälla. The new headquarters was designed by Archus and built by Serneke. See here for more: https://via.tt.se/pressmeddelande/lidl-sverige-inviger-sitt-nya-huvudkontor-i-barkarbystaden?publisherId=2265114&releaseId=3296827

E-commerce retailer Picnic will develop and start selling parts of its assortment under its own Picnic brand. For example chips, preserves and paper towels. A team of six people is currently working on the designs and research. The online super gets help and support from supermarket partners as Dutch Boni and German Edeka. These partners know a lot about private brands and about supply chains. The Picnic private label brand is offered at every price level. It is going to build the first sustainable e-commerce brand. The private label will appear throughout the whole assortment. Picnic wants to build a brand that customers like and that has both topline and discount products. It has to be sustainable in the packaging, recipe and in the supply chain. Starting with products that are sold a lot, or products that are wasted a lot, such as the air around chips. This is a waste to the supply chain. See here for more on DRC private label development https://privatelabel.me/ Picnic currently already sells a number of fresh products with its own PL brand. For example, in the app customers can choose their own brand egg, milk and meal packages developed by Picnic. Click on image for more: