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This week’s latest news in retail - 17th September 2010

by James Callander August 31, 2011

Retail Week

New Tesco boss reveals his strategy for the UK and overseas

Phil Clarke has outlined his strategy for Tesco, in particular the scale of the opportunity he sees in international expansion. He explained that he plans to spend as much time as possible in the market, with up to 85 days a year to be spent outside of the UK. He has also promised to give Richard Brasher, the new UK CEO, the freedom to control UK operations while he focuses on the international picture. Clarke paid tribute to Terry’s strategy and what a great company he was inheriting as a result.

Sainsbury’s prosecuted for excess packaging

Sainsbury’s is to be the first large retailer to be prosecuted under environmental laws for its overuse of packaging. The supermarket’s Taste the Difference beef roasting joint is packaged using five layers of plastic and cardboard packaging, and this is all after the joint’s packaging was reduced by 53% in February. The retailer has however made improvements in the cereal aisles and will soon start selling cereal in more environmentally-friendly bags rather than cardboard boxes.

H&M launches first transactional website

H&M has today launched its first transactional website with the strapline ‘UK will never sleep again’. The site will feature the retailer’s full range from accessories through womenswear, menswear and kidswear, as well as styling pages and fashion videos to help customers build their own look. H&M is also set to open 180 new stores before the end of 2010, in the UK, Germany, America, France, China and Italy.

The Grocer

Tesco pays more for milk

Tesco has agreed to increase the price it pays to dairy farmers for milk in recognition of the rising costs of animal feed. Farmers in Tesco’s Sustainable Dairy Group will gain an extra 1.28p per litre of milk over the next 6 months. Tesco corporate affairs director, Lucy Neville-Rolfe, said that the new price ‘reflects the transparent way that [Tesco] works with the dairy industry’.

Waitrose has a great first half

Waitrose has reported strong growth for the past 6 months, assisted by its ‘Heston and Delia’ double-act and every increasing online sales. The advertising campaign featuring Delia and Heston has helped to attract more than 370,000 new customer transactions in the first 8 weeks. Operating profits rose by more than 6% to £127m and total sales rose 11% to £2.4bn over the course of the first half of the year. Waitrose has also opened 9 new branches over the same period, including 3 in the new convenience format.

Rose moves into private equity role

Sir Stuart Rose, Marks & Spencer’s outgoing chairman is to join the European Advisory Committee of Bridgepoint, the private equity firm with a major investment in retail. Rose will work with the team to provide consumer insight for Bridgepoint’s investments, helping the firm to continue its track record in substantial retail investments.

Marketing Week

P&G poised for Gillette Fusion ProGlide UK launch

Procter & Gamble is poised to launch its Gillette Fusion ProGlide razor system in the UK as part of its strategy to build brands through innovation. The new ProGlide has been developed with seven “technological advancements” designed to improve the “closeness & comfort” of men’s shaving. P&G claims that the launch of its predecessor range, Gillette Fusion, was the second largest FMCG launch in UK history, and believes that ProGlide could be the “biggest ever” FMCG launch in the UK.

Sainsbury’s packaging cuts overshadowed by legal action

Sainsbury’s has announced a major initiative to reduce its cereal packaging but is facing legal action over excessive packaging of its meat. The supermarket announced today that it is cutting 165 tonnes of packaging each year with its initiative to pack its Basics cereals range in bags rather than boxes. However, Lincolnshire County Council is prosecuting Sainsbury’s for having too much packaging on Taste the Difference beef roasting joint, which was wrapped in three layers of plastic and a cardboard wrap.

Maybe it’s a Maybelline store

Working in partnership with Marie Claire, the pop-up store will sell exclusive Maybelline products and host demonstrations of how to achieve catwalk looks. Marie Claire will host customer events throughout the 10-day opening including model scouting and beauty classes.The cosmetic brand says the pop-up store is part of its strategy to engage directly with consumers and provide an opportunity for “a more personalised Maybelline experience”.

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