Discount Non-Food Retail Chain Dollar Tree, Inc. (NASDAQ: DLTR) reported its financial results for its third quarter ended October 31, 2020. Dollar Tree, a Fortune 200 Company, operated 15,606 stores across 48 states and five Canadian provinces. Stores operate under the brands of Dollar Tree, Family Dollar, and Dollar Tree Canada. "I am incredibly proud of our team’s efforts to continue serving customers effectively, while driving operational improvements in both banners through this dynamic retail environment,” stated Mike Witynski, President and CEO. “Dollar Tree delivered its strongest same-store sales performance in the past ten quarters, along with a 50 basis point improvement in operating margin. At Family Dollar, the improvement continues as the team delivered a 6.4% comparable store sales increase, a 230 basis point improvement in gross profit margin and a 250 basis point improvement in operating margin.” Third Quarter Results Consolidated net sales increased 7.5% to US$6.18 billion from US$5.75 billion in the prior year’s third quarter. Enterprise same-store sales increased 5.1%. LFL sales for Family Dollar increased 6.4%. Dollar Tree same-store sales increased 4.0%. Gross profit increased 12.9% to $1.92 billion in the quarter compared to the prior year’s third quarter. Gross margin increased 150 basis points to 31.2%, compared to 29.7% in the prior year’s quarter. The increase in gross margin was driven by improved merchandise costs including freight, leverage on occupancy costs from stronger same-store sales, improved shrink results and reduced markdowns, partially offset by higher distribution costs, which included US$10.9 million in COVID-19-related payroll costs. Selling, general and administrative expenses were 23.7% of net sales, compared to 23.5% of net sales in the prior year's third quarter. The increase was driven by COVID-19 costs of US$35.3 million, or 57 basis points, related to frontline associate wage premiums, field management bonuses and store cleaning/PPE supplies. Operating income for the quarter improved 29.9% to US$465.5 million, compared with US$358.4 million in the same period last year and operating income margin was 7.5% in the current quarter, compared to 6.2% in last year’s quarter. The third quarter of 2020 included total incremental operating costs of US$46.3 million, or US$0.15 per diluted share, for COVID-19-related expenses. These incremental costs by segment were US$28.6 million for Dollar Tree, $17.4 million for Family Dollar and $0.3 million for Corporate, Support and Other. Net income was US$330.0 million in the third quarter and diluted earnings per share for the quarter increased 28.7% to US$1.39, compared to $1.08 per share in the prior year’s quarter. The Company repurchased 2,154,304 shares during the quarter for US$200 million. The Company has US$600 million remaining on its share repurchase authorization. The Company opened 143 new stores, expanded or relocated 34 stores, and closed 16 stores. Additionally, the Company completed 371 renovations to the Family Dollar H2 format. Retail selling square footage at quarter end was approximately 124.3 million square feet. First Nine Months Results Consolidated net sales increased 8.4% to US$18.74 billion from US$17.30 billion in the same period last year. Enterprise same-store sales increased 6.5% on a constant currency basis (or 6.4% when adjusted to include the impact of Canadian currency fluctuations.), when compared to the prior year period. Same-store sales for Family Dollar increased 11.2%. Dollar Tree same-store sales increased 2.1%. Gross profit for the first nine months increased 10.9% to US$5.64 billion. As a percentage of net sales, gross margin improved 70 basis points to 30.1%, compared to 29.4% in the prior year period. The current year includes US$28.7 million, or 0.2% of net sales, in COVID-19 costs. Selling, general and administrative expenses were 23.7% of net sales, compared to 23.5% of net sales in the first nine months of 2019. The current year includes US$225.6 million, or 1.2% of net sales, in COVID-19 costs. Operating income for the period improved 19.1% to US$1.21 billion. Operating income margin increased 50 basis points to 6.4% of net sales in the current year period from 5.9% of net sales in the prior year. The first nine months of 2020 included incremental operating costs of US$254.3 million, or US$0.82 per diluted share, for COVID-19-related expenses, which included wage premiums paid to hourly store and distribution center associates, and safety and sanitization supplies. These incremental costs by segment were $147.4 million for Dollar Tree, US$104.9 million for Family Dollar and $2.0 million for Corporate, Support and Other. Net income compared to the prior year period improved 19.2% to $839.1 million and diluted earnings per share increased 19.7% to $3.53 compared to $2.95 in the prior year period. Leveraging the Power of Both Brands The combination of Dollar Tree and Family Dollar provides the Company more opportunities to better serve more customers in more ways, and in more locations across the country. In recent years, the Company has made significant progress in optimizing its portfolio of stores through new store openings, renovations, re-banners and closings. The H2 renovation program at Family Dollar continues to be a key component of the momentum in the turnaround. The H2 stores, on average, continue to comp at a 10%+ lift vs. non-renovated stores in their first year. Customers are responding favorably to the new categories and new price points. Sell through on seasonal items has been exceptional. There is continued opportunity to renovate older Family Dollar stores. As of October 31, 2020, the Company has approximately 2,240 Family Dollar stores in the H2 format. The Company currently plans to renovate approximately 1,250 Family Dollar stores in 2021. Additionally, for more than a year, Dollar Tree has tested a multi-price initiative referred to as Dollar Tree Plus! In mid-2019, the Company began testing multi-price assortments in more than 100 stores in southwestern markets. Major modifications, based on learnings, have included: transitioning the offering from consumable products to primarily discretionary items; reengineering the display elements and signage to drive awareness and excitement in stores; focusing on the US$1, US$3 and US$5 price points; and increasing the offerings above the US$1 price point. The Company will be expanding this initiative into a total of approximately 500 stores beginning in the spring of 2021. Since acquiring Family Dollar, the Company has produced strong cash flow from operations, paid down debt aggressively, repurchased US$400 million in shares, mitigated the majority of impacts from tariffs proactively, consolidated its two store support centers and realigned leadership under one executive team. These actions enhance the Company’s ability and flexibility to better leverage the two powerful brands to drive improved productivity, efficiencies and returns. “The team has accomplished a great deal to get us to this stage. With one consolidated store support center; a strong balance sheet; an aligned, energized and focused leadership team; and a full staff of talented retailers, we believe we have the ability to better serve customers across North America,” Witynski added. “We have a unique and transformational opportunity to leverage the power of our two brands, through flexible store formats designed to drive improved operational performance.” Update on Company Outlook, Initiatives and Liquidity Due to continued volatility and uncertainty related to the COVID-19 pandemic, as well as a lack of visibility into government stimulus initiatives, the Company is not providing updated guidance at this time. The Company now expects the completion of approximately 480 new store openings and 750 Family Dollar H2 store renovations in fiscal 2020. Capital expenditures for fiscal 2020 are expected to be approximately US$1.0 billion. The Company ended the quarter with US$1.12 billion in cash on its balance sheet. The Company paid down the remaining US$500 million on its revolving line of credit during the third quarter. Additionally, the Company plans to pay off a $300 million legacy Family Dollar note due in February 2021. “It’s an exciting time at Dollar Tree. We are just over three weeks into our important fourth quarter and we are off to a very good start, with same-store sales at both banners currently tracking above reported third quarter levels. Our focus will continue to be on opening new stores, refining our store formats and upgrading our assortments to drive improved store productivity, increasing operating efficiencies, generating free cash flow and buying back shares,” Witynski concluded. “These efforts are designed to deliver continued value to our long-term shareholders.” See here for more: https://www.dollartreeinfo.com/node/23946/pdf?mkt_tok=eyJpIjoiTXpNeU9XRXdabVUwTkdZMCIsInQiOiJndmxEeVhraXIxRFNzQUJSemY1NWNPbDNIS0ZIa2NCNXg0d0ZVTWtwODZYbDdWUjMyQjJDcWIxWXZldVZhRUozXC9lTDJzc0FmTUZDbDVnSm1GWENDR0x4QVRxNGp2OHFkYWZCdlRVeGZ6S0drMHh3Q2NsQUNqc1ZsWlpTUHRBdlEifQ%3D%3D

Discount Retail Chain PENNY Romania (owned by German REWE Group) continues to investment in sustainability and will allocate, in the next three years, the amount of 19.5 million euros in projects aimed at developing local products, protecting the environment, supporting employees and involvement in communities. "As we announced in July, the PENNY rebranding. is an element that strengthens our development strategy and a proof of our commitment to Romania. Every year, we aim to increase the percentage of locally manufactured products and, with rebranding, we make an ambitious commitment to the country in which we grew up: 60% of our assortment will be produced, processed and will have the main ingredient in Romania. A first step in this approach is the relaunch of the Hanul Boieresc product range, which already contains 100% Romanian meat. And we do not stop here when we say that we make a strong commitment to Romania: we will continue to invest in sustainability and allocate EUR 19.5 million (US$ 23.2m) to reduce the impact of our activities on the environment, to support our employees and to get involved. active in communities, ” PENNY said. The data for 2019 indicate that the largest positive difference between imports and exports is recorded in favor of meat products, a difference of 714 million euros (US$848m), for fruits, a difference of 593 million euros (US$705m), and for cereal products - a difference of 504 million euros (US$600m). „We started the Study on the trade balance with agri-food products of Romania with the aim of analyzing the evolutions and trends of the volume and structure of foreign trade of Romania, the correlation between exports, imports and national production, but also to identify methods and techniques of promotion and stimulating Romania's exports in terms of agri-food products. The fact that Romania is dependent on imports reveals opportunities, rather than weaknesses, we believe. Therefore, I am glad to see that PENNY has a serious commitment regarding this challenge and intends to go further in finding solutions for local producers ", said Roxana Pătărlăgeanu, Vice Dean of the Faculty of Agri-Food and Environmental Economics, ASE Bucharest . PENNY is one of the most active retailers in Romania, with the first store opened on the market in 2005. The entire chain is served by three logistics centers located in the localities of Ștefăneștii de Jos, Turda and Bacău. Currently, the PENNY network in Romania consists of 268 stores nationwide and a dedicated team of over 4,800 employees. See here for more: http://www.debizz.ro/penny-investitii-de-195-mil-euro-in-proiecte-de-sustenabilitate/

Deutsche Post DHL will set up around 6,000 more Packstations for its customers by 2023. The company is thus doubling the number of machines from currently over 6,000 to around 12,000 packstations. The rapid expansion of the packing station network is part of a multi-year digitization program that the Deutsche Post DHL Group presented in March of this year. The company is investing in new digital services and substantial improvements to existing solutions in the mail and parcel sector. In 2003, DHL was the first company to introduce the Packstation Service on the German market. The number of machines has risen sharply in recent years: at the end of 2014 only 2,800 Packstations were installed nationwide, as DHL had a exclusive contract with discount retail chain Aldi. At the end of 2019 there were around 4,400 machines and also extended placements to other grocery retail chains. At the end of this year there will be 6,500 DHL Packstations, an increase of almost 50 percent compared to the previous year. The Packstation is particularly popular because it is easy to use and available around the clock for sending and receiving parcels. In addition, it is often located in central places in daily life, so that customers can conveniently combine receiving and shipping parcels with, for example, travel, going to work or shopping for groceries. "More and more customers are using the Packstation and existing customers are using it more and more frequently. Especially during the Corona crisis, many new customers discovered the advantages of the Packstation for themselves, as they can send and receive their parcels contactlessly at any time," says Tobias Meyer Board Member Post & Parcel Germany of the Deutsche Post DHL Group. "In addition, we see great interest in setting up packing stations at their locations from our partners, for example from retail, local public transport and real estate companies. Especially in cooperation with local transport companies, this can create an environmentally friendly and traffic-relieving system of parcel delivery. We are therefore pleased to make this popular service even more widely available to a growing number of users in the future. " Deutsche Post DHL will offer the free service at other locations both in the city and in the countryside. Already today, almost every second household in Germany can reach a packing station within a radius of one kilometer. Around 80% of households have a partner branch of Deutsche Post, a DHL parcel shop or a Packstation within this distance. With the future expansion, these distances will decrease further and the number of users will increase even further. At the end of 2021, around 8,500 Packstations will be available to DHL customers, and a year later there will be around 10,500 Packstations with a total of over a million compartments. For 2023, the company expects further growth to at least 12,000 machines. With immediate effect, Deutsche Post DHL is also setting up the purely app-controlled variant of the Packstation at around 200 locations. This new type of machine, involving lower CAPEX, does not require a display because the customer only operates it with his smartphone. DHL customers will in future be able to use both types of machines, the classic packing station with screen and scanner and the app-controlled variant. See here for more: https://www.dpdhl.com/de/presse/pressemitteilungen/2020/mehr-als-12000-dhl-packstationen-in-deutschland-bis-2023.html

Discount Retail Chain Aldi Süd Italia (privately owned) has rolled out an innovative food packaging made of 'Social Plastic' in cooperation with Carton Pack and the Plastic Bank. The initiative aims to help the discounter to focus on sustainable packaging for its own private label branded products, which in turn protects the environment and promotes a circular economy. Blueberries and raspberries are the first products featuring the new packaging, Aldi added. Social Plastic is produced by Carton Pack, an Italian production and logistics company for fruit and vegetable packaging. Social Plastic is made from waste plastics that would otherwise end up in the oceans. An estimated 8 million tonnes of plastic waste enter the oceans every year, the discount retailer added. Recycling Plastic Bank is a social enterprise committed to collecting and recycling discarded plastic. In March 2019, Aldi announced a partnership with Plastic Bank to help the social start-up develop collection points for plastic waste in countries with poor waste management infrastructure. With plastic waste collection centres in Haiti, Indonesia, Philippines, Brazil and Egypt, the Plastic Bank works with coastal communities to recover materials that are transformed into Social Plastic. Supply Chain With Social Value The aim is to create a supply chain that also generates social value for the local population involved in collecting plastic. In exchange for material recovery activities, they receive a premium, which allows them to improve their living conditions. Some examples of premiums include the supply of food, health insurance, gas for cooking, and school fees for children. The latest initiative is part of Aldi, Missione Im-Ballo, the discount retailer’s multi-year strategy for the optimisation of packaging waste management until 2025. See here for more: https://www.esmmagazine.com/packaging-design/aldi-first-italian-retailer-to-use-social-plastic-114208?mkt_tok=eyJpIjoiWmpJd1lqRXdZalZtTlRObCIsInQiOiI3akUxdjNzcnNPXC9cLzRcL1U4ZUJFODlVMHFld2xnZUFtRUtBT0xRdDR2UVJpd01JY210cTdmTlJPaDVOYlwvV1pWNkJnWGc1YmxvMUMzbzlDeENZQXM2TXVrSTRDalA5azZEeEsxUFdlUnY5S0srcXhoQ1Jzd3p5cmRvYTRYbHlNTW0ifQ%3D%3D

Discount Non-Food Retail Chain Fix Price Group has announced that it has opened its 4,000th outlet in the country in Buzuluk in the Orenburg region. The store offers a wide range of products at six fixed price points of RUB50, 55, 77, 99, 149 and 199 (US$ 0.66, 0.72, 1.01, 1.30, 1.95, 2.61). The assortment extends across more than 20 categories, comprising primarily non-food items, cosmetics and household chemicals, as well as a selection of food products. The 13-year old company, known for offering in-demand and essential goods at affordable prices, constantly upgrades its product assortment and introduces around 40 to 60 new SKUs in its stores every week. The company saw its like-for-like sales rise by more than a fifth (+20.6%) in the third quarter of its financial year, boosted by a 15.9% in like-for-like average basket size. 'Efficiency-Focused Business Model' Fix Price CEO, Dmitry Kirsanov, commented, “Despite challenging market conditions and global headwinds, Fix Price is continuing to deliver strong operational performance and actively expanding its presence both in Russia and beyond. “Our efficiency-focused business model and the deep expertise of our highly qualified management team enable us to easily scale up our network and open new stores with relatively low capex, which is a solid foundation for the Company’s further growth and future expansion not just in Russia but also abroad.” The company opened around 488 stores since the beginning of this year. The retail chain is present in 78 of the 85 regions of Russia and is expanding its network in Belarus, Kazakhstan, Uzbekistan, Georgia, Latvia and Kyrgyzstan. Retail chain Fix Price is considering an initial public offering (IPO) in the first half of 2021. Earlier this year, the company secured the support of the investment bank Goldman Sachs Group Inc. Fix Price is currently exploring the possibility of listing on the London and Moscow stock exchanges. According to Bloomberg interlocutors, the retailer expects an estimate of about US$ 6 billion. In an interview with the publication, the founder of Fix Price explained the growing popularity of fixed-price stores in Russia. “Due to the decline in income, consumers are trying to avoid shopping in large supermarkets, where you never know how much money you will ultimately spend,” said Sergey Lomakin. See here for more: https://www.retail.ru/news/fix-price-mozhet-vyyti-na-ipo-18-noyabrya-2020-199791/

World's largest Discount Retail Chain Walmart (listed NYSE: WMT) net sales and operating results continue to be affected by the global health crisis. Increased demand for products across multiple categories led to strong top-line and gross margin results. “This was another strong quarter on the top and bottom line. Our associates continue to impress during this challenging year. They are working together to serve customers and communities in new, relevant ways and we’re very proud of them. We think these new customer behaviors will largely persist and we’re well positioned to serve customers with the value and experience they’re looking for.” Doug McMillon President and CEO. - Walmart Total revenue was $134.7 billion, an increase of US$6.7 billion, or 5.2%. Excluding currency, total revenue would have increased 6.1% to reach US$135.8 billion; - Walmart U.S. comp sales increased 6.4% with strength across key categories, including general merchandise, health & wellness and food; - Walmart U.S. eCommerce sales grew 79% with strong results across all channels and contributed approximately 570 basis points to LFL sales; - Sam’s Club comp sales increased 11.1%. eCommerce sales grew 41%. Reduced tobacco sales negatively affected comp sales by approximately 420 basis points. New member sign-ups and renewal rates were strong, particularly Plus membership. Membership income increased 10.4%; - Walmart International net sales were US$29.6 billion, an increase of 1.3%. Changes in currency rates negatively affected net sales by approximately US$1.1 billion. Excluding currency, net sales would have been US$30.6 billion, an increase of 5.0% led by Flipkart, Canada and Walmex. Strong growth in net sales at Flipkart was helped by a record number of monthly active customers. Consolidated gross profit rate increased 50 basis points with positive contributions from each operating segment. Consolidated operating expenses as a percentage of net sales decreased 18 basis points. Incremental expenses related to COVID-19 were approximately US$0.6 billion, partially offset by a non-cash impairment charge in the third quarter of last year. Underlying productivity in stores and eCommerce remained strong. Consolidated operating income was US$5.8 billion, an increase of 22.5%. Adjusted operating income in constant currency increased 16.4% with strong contributions from each operating segment. Adjusted EPS excludes the effects, net of tax, of an unrealized gain of US$0.80 on equity investments and US$0.34 for the loss on sale of Walmart Argentina. Operating cash flow year to date has been strong and increased approximately US$8.3 billion versus last year to almost US$23 billion. See here for more: https://corporate.walmart.com/newsroom/2020/11/17/walmart-releases-q3-fy21-earnings

In this period of constraints, customer expectations are mainly focused on the essential: minimizing effort (price / time / trust) - maximizing comfort (pleasure / relationship with the brand / ethics, etc.). In terms of customer experience and feedback, this month's winners are therefore brands capable of having it both ways: Picard (only offering frozen products) is 1st in terms of effort AND comfort! In another register, the discounters are celebrating: discount retail Lidl chain (6th in effort and 7th in comfort), but above all discount retail chain Aldi which gains 5 places - better check-out and less breaks… Discount non-food retail chain Action finally tears off from the bottom of the table, with an improved experience on the items of physical course and promotional pressure. None of these three brands has an online offer ... Other local brands are in unison. Like Carrefour Proxi with an exceptional comfort score (2nd), or like Proxi U, being solid on both counts. Monoprix confirms its place in the top 10, by multiplying initiatives in all channels and by improving its promotional image. In this context of uncertainty, brands that present less engaging experiences find themselves in the “soft underbelly” of the ranking. Carrefour Market (13th and +5) achieves a good score in terms of shopping pleasure but remains poorly perceived on the aspects of buying time and price. Carrefour Hyper (16th) clearly improves its payment score, one of its black spots but remains poorly rated in the store routing and grouping. Conversely, Hyper U (14th) offers a good customer experience in its stores (3rd) but suffers from a lag in online performance: desktop, mobile apps. See here for more: https://www.pointsdevente.fr/pdv-business/score-enseigne-gsa-de-novembre-exclusivite/

Metro Logistics, previously known as the group service provider of global discount wholesaler Metro AG, is now positioning itself as an independently operating logistics company. To this end, Metro Logistics is strategically realigning itself and, together with its previous services in procurement, distribution and contract logistics, now also offers a wide range of value-added services on the German logistics market. 9 multi-user logistic centers at 8 logistic locations ensure an optimal logistic network, which already serves companies from different branches. "We are starting the market as a new logistics company, but with 25 years of logistics experience", says Armin Köller, CEO of METRO LOGISTICS. “So far, we have only appeared on the logistics market to a limited extent as a provider, as we were busy with the central warehouse functions that we carry out for METRO and Real. The sale of Real was the starting signal for us to offer our service portfolio and our know-how outside of the group. For the retail companies and markets of the METRO Group, we have set up a logistics network that optimally serves the highly dynamic and complex processes in retail logistics - and that we now want to make available to other industries and customers, ”continued Köller. Metro Logistics continues to be responsible for the German warehouse business as well as METRO's distribution transport and controls procurement logistics in Germany, Austria and Switzerland. “As an independent logistics company, we are currently establishing new skills in the areas of sales, marketing, tender management and IT. We are ideally positioned to integrate new customers. We are already active in both contract and procurement logistics for new customers from various industries and were able to integrate them flexibly and quickly into our portfolio. We are convinced that we can offer customers from a wide variety of industries real added value for their logistics with our consulting expertise, our logistics services and value added services, as well as our geo-optimal network of locations, ”says Thorsten Sega, Chief Operating Officer of METRO LOGISTICS See here for more: https://www.fruchtportal.de/artikel/metro-positioniert-sich-ab-sofort-als-eigenstndig-operierendes-logistikunternehmen/046733?i=d2315528

The countries of the Association of Southeast Asian Nations (ASEAN) and their trading partners have entered into an agreement on a Regional Comprehensive Economic Partnership (RCEP), which forms the world's largest free trade zone, writes RBK. China, Australia, Japan and 12 other countries in the Asia-Pacific region announced the creation of the world's largest free trade zone. Also, the agreement was signed by 10 ASEAN member countries (Brunei, Vietnam, Indonesia, Cambodia, Laos, Malaysia, Myanmar, Singapore, Thailand, Philippines). Within the framework of the concluded agreement, reduced trade duties will apply. It is also Japan's first free trade agreement with China and South Korea at the same time. Its entry into force will create the world's largest free trade zone with approximately 2.2 billion consumers and a GDP of US $ 28 trillion, which is more than 32% of total global GDP. It is noted that the RCEP agreement will serve as an impetus for the recovery of the economies of the ASEAN countries in the post-pandemic period. According to experts, by 2050 the total GDP of the RCEP countries may grow to $ 100 trillion. Recall that the Association of Southeast Asian Nations (ASEAN) was founded in 1967 and today unites all the countries of Southeast Asia: Brunei, Vietnam, Indonesia, Cambodia, Laos, Malaysia, Myanmar, Singapore, Thailand and the Philippines. Since the beginning of 2020, the powers of the ASEAN chairman have been transferred to Vietnam on a rotational basis. See here for more: https://www.retail.ru/news/v-azii-sozdana-samaya-krupnaya-v-mire-zona-svobodnoy-torgovli-16-noyabrya-2020-199705/

The Essen Production AG group of companies is one of the largest food manufacturers in Russia. The annual turnover in 2018 amounted to RUB 20.9 billion (US$ 228 mio). To the group belongs discount retail chain 'Nahodka' and 'Maheev', the number 1 brand in Russia in the categories: mayonnaise, ketchup, jam, marinade, mustard. Confectionery production was launched in Naberezhnye Chelny in 2012. At the moment, the plant has 13 lines. In 2018, the company's confectionery production produced 29 thousand tons of products (in the first half of 2019, 15.5 thousand tons): candies and bars based on hollow wafers, crispy snacks, candies with jelly, fondant, combined fillings, Truffle, Marmalade, candies in boxes. The company produces confectionery products under the brands 35, Cho Ko-Te and ESSEN. Igor Ozerov, Essen: "We are helped to grow and develop in the confectionery market with new products that our competitors do not have." The change in the ruble exchange rate, the crisis consequences of the pandemic, the increase in prices for imported raw materials and equipment led to the fact that the volume of sales of confectionery products in Russia decreased compared to 2019. According to analysts, those companies that have a wide distribution network and are ready for investments, new products and high-tech solutions will survive on the market. Igor Ozerov, Essen: "We are helped to grow and develop in the confectionery market with new products that our competitors do not have." This year Essen launched one new production line and now we are developing sales of new products. By the end of the year, it will launch 2 more new lines. The results of last year are also good, sales in 2019 increased by 30%, and in monetary terms by 41%. The sales volume has doubled compared to last September.With an important sweet season ahead, New Year Essen expects that the sales volume will increase by an average of 2.5 - 3 times compared to the first half of 2020. Essen launches innovative products that are fundamentally new for the market and which competitors do not have. This allows us to increase sales, set the right price and since we do not have a direct competitor for a new product, there is no need to launch a large number of deeply discounted promotions. The share of chain sales of the total volume is 40%, in the confectionery business it is slightly lower, 32%. Therefore, both channels are important for us, we take into account the interests of both networks and our distributors. There are good precedents when federal chains turn to us for exclusive products, we take into account their interests, launch new products, tastes, but under our trademarks. Essen recently launched a new production line, and launched 2 new products - chocolate bar "Raspberry-mango" and stick with bubble gum flavor and explosive caramel brand CHO KO-TE. In general, the sales volume of this brand for 8 months of 2020 increased 3 times, and these two new products accounted for 35% of this volume. That's how much innovation help Essen grow. See here for more: https://www.retail.ru/interviews/igor-ozerov-essen-rasti-i-razvivatsya-na-konditerskom-rynke-nam-pomogayut-novinki-kotorykh-net-u-kon/

Non-food discount retail chain Dollar General (NYSE: DG) has leased much of the long-vacant first floor of a historic building on Nicollet Mall at Fifth Street with plans to open a new concept store that is more upscale than its traditional discount-merchandising chain. The “DGX Minneapolis” store will bring groceries, “grab & go” salads, toiletries, toys and household, pet and beauty products to the 1898-era Andrus Building at 500 Nicollet Mall in downtown Minneapolis. The 6,000-square-foot store (1,800m2) is expected to open early next year. The effort marks the first DGX concept store in Minnesota, and it is expected to employ about 15 people and compete with Target, Whole Foods, Trader Joe and Lunds & Byerlys. The announcement of its arrival follows several retail store closings and bankruptcies that struck even before the pandemic. Since debuting in 2016, DG has opened its smaller-footprint stores in Dollar General’s headquarters state of Tennessee. It has also opened them in Raleigh, N.C., Philadelphia, Omaha, and Cleveland and Columbus, Ohio. Before COVID-19 hit, the company had plans to open 20 more stores this year. See here for more: https://www.startribune.com/dollar-general-coming-to-nicollet-mall-in-2021-with-urban-format/573056791/

Discount Retail E-Commerce platform Pinduoduo Inc. (NASDAQ: PDD) an innovative and fast growing technology platform that provides buyers with value-for-money merchandise and fun and interactive shopping experiences. The Pinduoduo mobile platform offers a comprehensive selection of attractively priced merchandise, featuring a dynamic social shopping experience that leverages social networks effectively. Announced its unaudited financial results for the third quarter ended September 30, 2020. Third Quarter 2020 Highlights GMV1 in the twelve-month period ended September 30, 2020 was RMB1,457.6 billion (US$2,214.7 billion), an increase of 73% from RMB840.2 billion in the twelve-month period ended September 30, 2019. Total revenues in the quarter were RMB14,209.8 million (US$2,092.9 million), an increase of 89% from RMB7,513.9 million in the same quarter of 2019. Average monthly active users in the 3rd quarter were 643.4 million, an increase of 50% from 429.6 million in the same quarter of 2019. Active buyers in the twelve-month period ended September 30, 2020 were 731.3 million, an increase of 36% from 536.3 million in the twelve-month period ended September 30, 2019. Annual spending per active buyer in the twelve-month period ended September 30, 2020 was RMB1,993.1 (US$293.6), an increase of 27% from RMB1,566.7 in the twelve-month period ended September 30, 2019. “This quarter we continued to invest in user engagement, which resulted in strong growth of MAUs and active buyers,” commented Mr. Lei Chen, Chief Executive Officer of Pinduoduo. “Our strategic priorities are informed by the changes in consumer habits that we observe and anticipate. We continue to innovate in order to meet such needs, especially in the agricultural industry.” “This quarter we started Duo Duo Maicai to address the structural changes we see in how consumers fulfill their daily grocery needs. Duo Duo Maicai is a natural extension of our existing business and offers consumers a complementary experience to our main app,” added Mr. David Liu, Vice President of Strategy. “It is a long-term business that aligns well with our commitment to digitize China’s agricultural value chain and to be China’s leading agriculture platform. We are committed to continued investments into the agricultural supply chain and ecosystem.” “Despite industry seasonality, we continued to deliver solid execution through the third quarter and generated positive cash flow from operations,” added Mr. Tony Ma, Vice President of Finance. “As a result, our trailing 12-month GMV grew 73% from a year ago, and our total revenues in the September quarter increased by 89% year-over-year.” Third Quarter 2020 Unaudited Financial Results Total revenues were RMB14,209.8 million (US$2,092.9 million), an increase of 89% from RMB7,513.9 million in the same quarter of 2019. The increase was primarily due to an increase in revenues from online marketing services. Revenues from online marketing services and others were RMB12,877.7 million (US$1,896.7 million), an increase of 92% from RMB6,711.4 million in the same quarter of 2019. The increase was primarily attributable to higher advertising demand from merchants on our platform given continued advancement in our brand and market position. Revenues from transaction services were RMB1,332.1 million (US$196.2 million), an increase of 66% from RMB802.5 million in the same quarter of 2019, primarily due to the increase in GMV. Total costs of revenues were RMB3,260.2 million (US$480.2 million), an increase of 78% from RMB1,833.3 million in the same quarter of 2019. The increase was mainly due to higher payment processing fee, higher costs for cloud services, and other expenses directly attributable to online marketing services and other revenues. Total operating expenses were RMB12,245.4 million (US$1,803.5 million), compared with RMB8,472.6 million in the same quarter of 2019. Sales and marketing expenses were RMB10,071.9 million (US$1,483.4 million), an increase of 46% from RMB6,908.8 million in the same quarter of 2019, mainly due to an increase in advertising expenses and promotion and coupon expenses. General and administrative expenses were RMB368.6 million (US$54.3 million), a decrease of 16% from RMB436.6 million in the same quarter of 2019. Our G&A expenses in the third quarter of 2019 included certain expenses relating to our initiatives to alleviate rural poverty. . Research and development expenses were RMB1,804.9 million (US$265.8 million), an increase of 60% from RMB1,127.2 million in the same quarter of 2019. The increase was primarily due to an increase in headcount and the recruitment of more experienced R&D personnel, and an increase in R&D-related cloud services expenses. Operating loss was RMB1,295.7 million (US$190.8 million), compared with RMB2,792.0 million in the same quarter of 2019. Non-GAAP operating loss was RMB339.8 million (US$50.0 million), compared with RMB2,123.5 million in the same quarter of 2019. Net loss attributable to ordinary shareholders was RMB784.7 million (US$115.6 million), compared with RMB2,335.0 million in the same quarter of 2019. Non-GAAP net gain attributable to ordinary shareholders6 was RMB466.4 million (US$68.7 million), compared with non-GAAP net loss of RMB1,660.4 million in the same quarter of 2019. Basic and diluted net loss per ADS were RMB0.66 (US$0.10), compared with RMB2.00 in the same quarter of 2019. Non-GAAP basic net gain per ADS were RMB0.39 (US$0.06), compared with RMB1.44 loss in the same quarter of 2019. Non-GAAP diluted net gain per ADS were RMB0.33 (US$0.05), compared with RMB1.44 loss in the same quarter of 2019. Net cash provided by operating activities was RMB8,321.8 million (US$1,225.7 million), compared with RMB2,618.2 million in the same quarter of 2019, primarily due to an increase in online marketing services revenues. Cash, cash equivalents and short-term investments were RMB45.6 billion (US$6.7 billion) as of September 30, 2020, compared with RMB41.1 billion as of December 31, 2019. See here for more: https://investor.pinduoduo.com/news-releases/news-release-details/pinduoduo-announces-third-quarter-2020-unaudited-financial?mkt_tok=eyJpIjoiTVdRMk1ETTRaakV4WkRNNSIsInQiOiJQZ3hZaVZtRlhKdUk2d0xqMVNIdzFXOEhqdEVIdFVQc0N3b1lIZzBqbUdob1U2dlpnSHQxWm40TkZCMEhuZ1NvUE51ZWFyZkp0bVZIN0ZjcHdaaTB2TldxM2FTOEdOVEtEOHQ5MngxTjlkTzIxY0lUKzdIWkRSRjNmUWlKK3VmcyJ9