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Retail Round Up

Heineken to wield axe again as emerging markets take centre stage

Heineken has announced a new round of cost-cutting across its operations in developed markets including continental Europe and the UK. The Dutch brewer unveiled plans to slash €500m from its operational overheads over the next three years. The cash will be used to fund its expansion in emerging markets.

Tesco banks on former Barclays boss Oppenheimer

Former Barclays executive Deanna Oppenheimer is to join the board of directors at Tesco. Oppenheimer was head of Barclay’s UK retail banking division from 2005 until last year. She joins the Tesco board next month. Tesco denied that her arrival was linked to the decision to postpone the launch of its current account until next year.

Milk Link to boost cheese capacity with £2.4m investment

Milk Link is investing £2.4m upgrading its Oswestry cheese- packing plant and its Llandyrnog creamery. The dairy co-op said it would spend £2m to install additional high-speed, fully automated cutting and flow-wrapping lines at Oswestry as well as a high-speed, intelligent cutting line, designed to make smaller-run lengths more efficient. The work will be done by early summer.

Online trade drives January retail sales

Online trade drove an increase in the value and volume of retail sales in January, according to the Office for National Statistics. The overall value of retail sales rose 4.4%, while volumes increased by 2%, the ONS Retail Sales Index revealed. Sales volumes were driven primarily by food and online shopping.

The Entertainer boosts multichannel

Toy retailer The Entertainer is to launch 30-minute click-and-collect services and a range of other multichannel offers, after it rolls out a new platform and website later this year. The retailer will also launch same-day delivery, order tracking and delivery to customers from stores.

Multiple retailers closed 14 stores a day in 2011

Multiple retailers closed an average of 14 stores a day across the UK, according to the Local Data Company and PWC. Figures from accountancy firm PWC and the Local Data Company have revealed that multiple retailers have shown a 0.25% reduction in the total number of shops in 2011.

Kellogg buys Pringles in $2.7bn deal

Kellogg has agreed to buy the Pringles brand from Procter & Gamble for $2.7bn (£1.7bn) in a deal that will almost triple the size of its snacks business.
The company says the acquisition of Pringles will put its snacks business, which consists mainly of US brands such as Keebler and Cheez-It, on par with its cereal business consisting of global brands such as Cornflakes and Special K. Pringles is said to be world’s second biggest savoury snack brand with $1.5bn (£955m) in annual sales.
The deal is expected to be completed by the end of the summer, pending regulatory approval

Nestlé looks to marketing to offset tough 2012

Nestlé, the world’s largest food maker by revenue, says it will ramp up focus on marketing and product innovation as it looks to offset what it predicts will be a tough 2012.
The company posted better than expected sales growth of 7.5% across its brand portfolio, which includes Haagen Dazs and Kit Kat, in 2011 with growth in both emerging and developed markets.
Growth is expected to be no higher than 6% in the coming year because of depressed demand in European and North American markets.

Reckitt Benckiser to invest an additional £100m in brand building

Reckitt Benckiser will introduce a raft of cost-savings measured to fund an additional £100m in building brands such as Finish, Vanish and Calgon in growth markets, a move that comes as it announces an overhaul of its company structure.
Measures including freezing fixed costs and changes to supply chain projects will be introduced, the company says, “to fuel investment” in its 19 key “power brands” in 16 “power markets”, mainly developing markets.

In a bid to improve accountability and better measure return on investment, some consumer promotional and marketing costs will be moved into cost of goods. The company the move will focus our commercial organisation on better decision making around our promotional strategy.