US consumer electronics retailer Best Buy commissioned The One Off to design the stores for its impending UK launch. According to The One Off creative director Richard Collier, the first four stores—in Thurrock (Essex), Southampton, Birmingham and Liverpool—are sized between 6,000-10,000 square meters; these stores will have up to eight feature areas in which customers can interact with products. Thurrock will be the first Best Buy store to open, in April.

In France, Casino has launched a new Leader Price concept in the north of Paris (Livry-Gardan). The store display and merchandising has been re-organised, by focusing on perishable products such as fruit and vegetables, dairy, and meat, which have been relocated to the entrance of the store.

• The store had to close for 10 days to incorporate these changes.
• The store will still comprise 100% private label, but Casino CEO Jean-Charles Naouri said that it was ready to consider all options: "We could list national brands, on the condition that we could sell them at prices that match our discount positioning and if their margin contribution fit with our profitability objectives."
• Two other stores will be transferred to the new concept in the coming days (located in the city of Gretz and Creteil).

John Lewis Partnership reported group sales of GBP 7.4 billion for the fiscal year ended January 30, 2010, an increase of 6.5% from the same period last year. Operating profit increased 20.5% to GBP 389.7 million as compared to the same period last year.

John Lewis

• Sales increased marginally by 2.8% to GBP 2.9 billion. Sales in fashion were up 9%; Electricals & Home Technology (EHT) were up 3.6%; and sales in the Home-related categories bounced back strongly by 2.5%.
• Reported like-for-like (LFL) sales increased 2.3%.
• John Lewis Direct sales increased 18.2% to GBP 393.5 billion.
• Operating profit increased 15% to GBP 165.9 million.
• The retailer opened its first standalone home and electrical store John Lewis at Home in Poole, Southampton, in October 2009 and plans to invest a further GBP 7.5 million in its home store format to expand its stores in UK.
• John Lewis also opened a new distribution center (DC) at Magna Park, Milton Keynes.
• During the period, John Lewis also entered into an agreement with the London Organizing Committee of the Olympic Games and Paralympics Games (LOCOG) to become the Tier Three Provider and 26th domestic sponsor for the London 2012 Olympics Games.
  • Two John Lewis stores, one at Oxford Street and the other slated to open in 2011 next to Olympic Park, Stratford, will serve as retail outlets for selling games merchandise.
  • For any merchandise sold, John Lewis will give back the net profit to London 2012.

• Sales increased 9% to GBP 4.5 billion.
• Reported LFL sales, excluding petrol increased 3.6%.
• Operating profit increased 26.8% to GBP 268.2 million, excluding property profits.
• During the period, Waitrose announced a new product supply partnership with Shell to sell a selection of its products on a trial basis in three Shell forecourt stores, Fouroaks, Fiveways and London Road, areas of Birmingham, from 25 November 2009. Following a successful trial, the partnership might be extended to other Shell service stations in 2010.
• In 2009, the retailer opened 25 new stores in UK, including 13 acquisitions from Somerfield/Co-op and one former Woolworths stores. The retailer has already opened two new branches and plans a further 20 in 2010.

Expansion Plans

• The retailer has laid down plans for opening new stores and to further expand in the convenience channel. It plans to open 10 larger and smaller convenience stores in 2010 and 30 stores in 2011.
• The retailer will concentrate on store openings and build on its partnership with health and beauty giant Boots.
• Waitrose will also focus on international expansion by opening stores in Abu Dhabi and Bahrain in 2010 and Oman in 2011.

As of January 30, 2010, John Lewis Partnership operated 29 stores, including 28 department stores and one John Lewis at home across the UK, and 225 Waitrose supermarkets.

John Lewis has announced that Andrea O'Donnell, Commercial Director at John Lewis, will be given additional responsibility for retail and format development, and retail implementation effective 28 March 2010. In addition to her new role, she will continue to be responsible for multi-channel and online selling.

• She will continue to report to Andy Street, Managing Director (MD) of John Lewis.
• According to the retailer, the move will enable John Lewis to combine "bricks and clicks" growth under one director.
• Andrea joined John Lewis in June 2004 as Head of Buying Operations and became the Commercial Director in February 2010.

Andy, stated, "(…) by putting accountability for 'bricks and clicks' in one area, our Board now has the best possible structure to deliver the division's ambitious plans (...)."

German consumer electronics retailer Media-Saturn revealed more detailed plans for the relaunch of its online shop in Germany.

• The online platform will open in the second quarter of 2010, initially only offering entertainment products such as movie DVDs and computer games. From the third quarter onwards, Media-Saturn is planning to also sell electronics hardware.
• Further plans for the website are interactive elements, such as a user-generated dictionary on issues around consumer electronics ("MediaPedia") and a digital media download store.
• Media-Saturn franchisees will take a share of the revenues generated by the online store. The decentralized pricing model for Media-Saturn’s bricks-and-mortar stores, on the other hand, will remain unchanged.

Mercadona reported gross sales of EUR 15.5 billion, an increase of 1% for the 2009 financial year.

• Net profit of EUR 270 million was declared, 16% down from the previous year.
• Mercadona finished the year with 1,264 supermarkets, a net increase of 54 more than in 2008.
• To support the store openings, the retailer hired 500 new members of staff on fixed contracts.
• Mercadona gave a EUR 200 million bonus to its staff, 5% more than in 2008.
• Around EUR 573 million were invested in opening 74 new stores, refurbishing 24 mature stores and building a new distribution centre in León.

Outlook 2010

• The retailer will continue with its price-cutting project, hoping to increase volume sales by 6%.
• Further investment of EUR 600 million can be expected in 2010. Mercadona is planning to open 60 new stores, complete the distribution centre in León, and start construction work for a new distribution centre in Granada.

Despite the financial crisis, Mercadona’s President Juan Roig confirmed his commitment to lower prices without compromising on food safety and quality.

PUMA AG has signed a definitive agreement to acquire Fortune Brands’ golf equipment Cobra Golf brand.

• The transaction involves the acquisition of the Cobra brand, its inventory, intellectual property, and endorsement contracts. Details of the financial terms and conditions of the transaction were not divulged.
• Jochen Zeitz, Chairman and Chief Executive of PUMA, has stated that the acquisition is in line with PUMA’s strategy to strengthen and capitalise on its growing Golf category.
• The acquisition is subject to meeting the closing conditions and regulatory approvals. The effective date of the acquisition is likely to be in the second quarter of 2010.

According to LZ-Net, Rewe’s discounter Penny will divide Germany into two distribution areas, north and south.

• The domestic market will thus be led by two people, Claus-Dieter Ziemann, who until now had been in sole charge of Germany, and former Aldi manager Axel Knau.
• Penny explains this decision with the increased complexity of its logistics processes following the integration of 300 Plus stores. Through the reorganization of its regional structures, Penny hopes to optimize the link between logistics and distribution.
• Penny Germany already had a dual leadership between 2001 and 2005.

Sainsbury’s has announced that it will expand its non-food range on its website by adding products such as electronics, entertainment, and sports equipment. The retailer stated that it has no plans to add its clothing brand, Tu, to the range. Sainsbury’s started offering non-food products on its website in July 2009.

Luke Jensen, Managing Director, Non-Food at Sainsbury's, also stated that the retailer plans to dedicate around 30,000 sq ft of retail space in its large format stores 80,000 sq ft stores, in light of the considerable growth opportunities in the non-food range.

Tesco has named Richard Jones, currently responsible for the retailer’s non-food hardlines, as its clothing head.

• In his new role, he will also be responsible for the home lines category under Tesco’s non-food product range.
• Jones replaces Terry Green, whose five year contract with the retailer is about to end soon.
• Prior to Tesco, Jones served as the Head of General Merchandise at Sainsbury’s.

 

Tesco—in partnership with UK-based independent estate agency group, Spicerhaart—has entered the real estate market through the launch of a new online service, iSold.com, on its website. The service will initially be rolled out in Bristol.

• Through the service, users will be able to employ estate agents for GBP 999 who would help them in selling their homes. The users will pay GBP 299 for marketing services, with an additional GBP 700 when their property is sold.
• They will also be able to buy products and services such as Home Information Packs and conveyancing services.
• Tesco is promoting the iSold.com service through the punchline, "We simply sell homes." The punchline is complemented by the message, "In the last 10 years a lot of things got easier, simpler and better value. But estate agents certainly haven't … until now."

D&S, Walmart International’s operations in Chile, reported financial results for the fourth quarter and full year December 31, 2009. Highlights include:

Q4 2009

• Sales improved 11.6% to USD 1.042 billion.
  • Other revenue from banking and real estate increased 3.3% to USD 210 million.
• Comparable store sales increased 4.4% in nominal terms over the prior period.
  • In real terms, comps increased 6.3%.
• Gross margin increased 170 bp to 30% of revenue in Q4 2009 versus 28.3% of revenue in Q4 2008.
• Operating income increased 106.3% to USD 56.5 million.
• During the quarter, D&S opened:
  • 8 Bodega Acuenta, for a total of 26; and
  • 6 Ekono, for a total of 110.

Fiscal 2009

• Sales improved 10.3% to USD 3.72 billion.
  • Other revenue from banking and real estate increased 9.3% to USD 817.5 million.
• Comparable store sales increased 6.4% in nominal terms over the prior period.
  • In real terms, comps increased 4.3%.
• Gross margin fell 60 bp to 27.1% of revenue in 2009 versus 28.5% of revenue in 2008.
• Operating income fell by 103.5% for a loss of USD 7.9 million
• In 2009, D&S opened:
  • 1 Lider Express for a total of 47;
  • 3 Hiper Liders for a total of 67;
  • 15 Bodega Acuenta, for a total of 26; and
  • 39 Ekono, for a total of 110.