Welcome to our 'weekly news in brief', covering the latest from UK retailers and manufacturers.
RETAIL NEWS
Sainsbury’s rolls out one-hour bike delivery service nationwide
Sainsbury’s is rolling out its one-hour bike delivery service beyond London in a bid to ramp up its delivery capacity. The Chop Chop service is launching in 20 cities including Brighton, Bristol and Manchester in collaboration with courier firm Stuart. By mid- June a total of 50 Sainsbury’s stores will offer the service, which enables customers to order up to 20 products from a tailored range of around 3,000 grocery and household items via the Chop Chop app.
Once the 50 store roll out is complete, around 3.2 million households will be able to get Sainsbury’s groceries delivered directly to their door within an hour. The Chop Chop service was launched in London at the beginning of April and trials were conducted delivering from closed convenience stores for the first time. The supermarket says it has already more than doubled the number of customer orders it can fulfil from these stores as delivery slots are typically all booked by 10am. By rolling Chop Chop out across the country, Sainsbury’s is confident it will increase its delivery capacity by a further 400%.
The rapid expansion will support the retailer’s efforts to increase its total number of delivery slots to 600,000 per week.
“We are doing everything we can to feed the nation and offer our customers quick, convenient and safe ways to get their groceries,” says Sainsbury’s chief digital officer, Clodagh Moriarty.
“Demand for home grocery deliveries has never been higher and we have been receiving great feedback for Chop Chop, with customers really valuing the speed and convenience it brings. By rolling Chop Chop out to 50 stores in 20 cities across the country, even more customers can get what they need delivered to their door.”
Source: Marketing Week 15th May 2020
Next swoops on Debenhams sites for new beauty store format
Next has snapped up five stores across Hammerson’s estate that Debenhams is exiting for the launch of a new beauty store concept. The fashion retailer has signed flexible leases the Hammerson to take over the sites from Debenhams.
The department store retailer agreed to exit its stores across Hammerson’s portfolio yesterday, as revealed by Retail Week. The move will see Debenhams exit five stores at Birmingham’s Bullring, Croydon’s Centrale, Silverburn in Glasgow, High Cross in Leicester and Reading’s Oracle at the cost of 1,400 jobs.
Next has said its “intends to hire experienced staff with proven premium beauty retail experience”, so it is “likely that many of the former Debenhams staff will secure a position with Next”.
The fashion retailer said it is also in discussions about a small number of other sites to roll out its new concept to and the new stores will complement its burgeoning online beauty business, which sells over 200 brands including Estée Lauder and Clinique.
Next said it is working with its retail teams to ensure that when its new store format is unveiled the proper social distancing measures can be maintained for shoppers and staff.
Chief executive Lord Wolfson said: “This is an exciting opportunity to work with existing and new beauty brand partners to create a new force in beauty retailing – bringing our online business to life through premium store environments in some of the UK’s most important retail locations.”
Source: Retail Week 7th May 2020
Lidl launches WhatsApp chatbot to inform customers when the best times to shop are
Lidl has launched an online chatbot via WhatsApp so customers can avoid queues and find the quietest time to shop. Customers in Ireland can now send a message to Lidl through the Facebook-owned messaging app informing the chatbot of the day and time they intend to visit. The chatbot will then inform them if this is generally a quiet, average or busy time to visit, the supermarket said in a LinkedIn post.
“We’ve analysed our shopper behaviour over the past couple of weeks to find the quietest time to head into store – of course some stores will vary slightly but use the info below to help plan your shop,” a Lidl spokesperson said.
“This innovative approach uses real time data and customer transaction numbers to determine which hours of the day are quietest to visit and which are busiest, allowing for customers to plan their shopping trips accordingly. This functionality is the first of its kind of any Lidl store in the world, using customised software created by Lidl.”
To access the chatbot customers can visit Lidl.ie/Quiet on a mobile device.
‘They will then receive a code via email which they can share with family members, friends or a volunteer who can utilise this code to purchase their shopping at Lidl,’ it added.
This is not Lidl’s first chatbot, having launched its “virtual sommelier” chatbot through Facebook messenger in 2018. Dubbed “Margot”, the artificially intelligent chatbot is said to “perform the role of shopper’s virtual wine consultant”.
Source: Retail Gazette 12th May 2020
New online delivery platform for convenience stores set for wider roll-out
Grocemania, a new delivery service for the convenience sector, is expanding into more regions across the UK amidst a huge increase in demand for online ordering during the coronavirus crisis.
Launched in February last year, Grocemania’s app and online platform allows consumers to buy groceries from local stores and have them delivered within as little as one hour by courier.
Same-day deliveries are already available in London, Brighton and Bristol. Grocemania will now be launching in Newcastle later in May, with further expansion into Manchester and Birmingham set to be completed by July.
Grocemania also offers nationwide next-day delivery on fresh produce boxes from New Covent Garden Market. The foodtech startup has partnered with hundreds of stores across the UK, working with the likes of Budgens, Nisa, Londis and Costcutter, as well as independent retailers.
Askar Bulegenov, founder and director of Grocemania, said: “The food delivery sector has seen huge growth over recent years, and the onset of the COVID-19 pandemic has further accelerated this trend. However, with large supermarkets unable to meet soaring demand for home deliveries, consumers across the UK – particularly vulnerable people and NHS staff – need more options.
“Grocemania is answering the call. We are supporting both local businesses and the British public by making hundreds of grocery deliveries every day. What’s more, we’re delighted to be expanding our fast, convenient grocery delivery services into new regions across the UK, helping to connect the consumer to the high street during the lockdown.”
Source: NamNews 13th May 2020
MANUFACTURING NEWS
Beiersdorf invests in sustainable aerosol solutions
Beiersdorf has acquired an equity stake in UK-based Salford Valve Company, an engineering company developing aerosol valves for use with ecologically sustainable propellants. The investment was made by the company’s venture capital arm, Oscar&Paul.
“Our partnership with Salvalco provides significant potential to foster more eco- friendly aerosol innovations – across the global aerosol category as well as within the Beiersdorf portfolio,” said Michael Becker, Head of Global Packaging Research and Development at Beiersdorf.
Ascan Voswinckel, Head of OSCAR&PAUL Beiersdorf Venture Capital, added: “Salvalco is an exciting investment and fits with our recently extended corporate sustainability ambitions for a carbon positive future. In these very challenging times, we are particularly committed to investing in visionary and innovative companies. We are looking forward to supporting Salvalco in its progress and applying Beiersdorf’s industry expertise in order to make a positive impact.”
The deal is in line with Beiersdorf’s sustainability agenda, strengthening its footprint in sustainable packaging solutions, and it’s hoped that the partnership will drive sustainable aerosol within the manufacturer of Nivea’s own portfolio and the wider industry.
Source: Global Cosmetic News 11th May 2020
Mondelēz International reports significant progress in new sustainability report
Mondelēz International‘s latest Snacking Made Right report shows that the company has exceeded its sustainability and wellbeing goals, commenting that they are “on track” for their ambitions 2025 targets. Published on 8 May 2020, the report highlights the company’s ongoing commitment to deliver positive environmental change in the snacking industry. It includes signature programmes and approaches developed by Mondelēz that are aimed at helping consumers snack “the right way”.
“As we collectively manage the global impact of COVID-19, now more than ever is the time for companies to do what’s right and drive sustainable business growth at scale,” said Dirk Van de Put, chairman and CEO of Mondelēz International.
“At Mondelēz International our purpose-driven approach to sustainability and wellbeing is focused on reducing our impact on the environment and creating a positive impact on society as part of our mission to lead the future of snacking by delivering the right snack, for the right moment, made the right way. I’m proud of the significant progress we’ve made in 2019 and believe our 2025 Snacking Made Right goals are the right goals to focus on for the future,” he continued.
By the end of 2019, 63% of cocoa was sourced sustainably, according to the company’s signature sustainable sourcing programme, Cocoa Life. 65% of wheat cultivated for Mondelēz’s biscuit brands in Europe was sourced sustainably through their Harmony Wheat programme.
In terms of environmental impact, the report cited a 15% reduction in CO2 emissions across manufacturing operations; a 27% reduction in priority water usage in areas where water is most scarce; and a 21% reduction in waste from manufacturing operations. The report also stated that 93% of the company’s packaging had been designed to be recyclable, meaning they were on track to reaching 100% in the coming years.
In addition, the company stated in the report that it would continue to honour it’s maintenance of 100% Roundtable on Sustainable Palm Oil (RSPO) coverage in palm oil.
“We know consumers are increasingly aware of the impact their choices have on the world and what the companies behind those products stand for,” said Christine Montenegro McGrath, Vice President and Chief of Impact, Sustainability and Well-being at Mondelēz International.
Source: FoodBev Media 11th May 2020
Müller yogurts prove popular during lockdown
It has been revealed that shoppers are buying more Müller Corner yogurts during the coronavirus lockdown. Müller said that it had seen sales of its leading yogurt brand increase by 14% throughout March and April, compared with January and February. In the latest four week period, shoppers purchased more Müller Corners than any other time in the last three years.
The business has also seen sales of Müller Bliss Mascarpone Style Yogurt, which is an Italian inspired yogurt that launched in October 2019, up 150% versus the previous eight weeks.
The company’s Müller Bliss range was the fastest-growing yogurt brand in 2019 with volume growth of 32%. It has continued to perform strongly in 2020, with year to date volume growth of 42%.
Throughout March and April, overall yogurt sales were 3%, compared with January and February.
Bergen Merey, Chief Executive Officer at Müller Yogurt & Desserts said: “It appears that during this difficult period for the nation, people are looking for the familiarity of well-known and trusted brands. That’s perhaps why we’re seeing sales of our famous Müller Corner, the number one yogurt brand in the category, at the highest they’ve been in years.
“While we fully recognise the importance of trends towards gut health and the immune system, shoppers are telling us that health and happiness actually go hand in hand. Sales of our most indulgent yogurt, Müller Bliss Mascarpone Style Yogurt, are up 150% during lockdown, and the overall Bliss brand continues to surge in popularity.
“As we continue to do everything we can to help feed the nation, we’re grateful to shoppers for continuing to put their trust in Müller. They are determined to provide food for their families which can help add taste to life, and with our Müller Corner and Müller Bliss products, this is what we are delivering.”
Source: Namnews 7th May 2020
Beverage firms launch initiatives to support hospitality industry
Heineken, Budweiser and Diageo are among key beverage companies that have launched new initiatives to support on-trade customers as they face uncertainty amid the coronavirus crisis.
With bars, pubs and restaurants currently closed or restricted around the world, hospitality businesses face unprecedented commercial challenges and even risk permanent closure. For many beverage companies, hospitality businesses are key to their industry. In support, many have launched initiatives including voucher systems, new digital platforms and free hospitality training.
Through its ‘Back the Bars’ initiative, Heineken is enabling people to buy drinks vouchers for their favourite bar or restaurant which can be redeemed when they are open. The owner of the bar will receive the monetary value of the voucher immediately which enables them to continue to pay their fixed costs.
Heineken’s initiative is currently running in 17 countries with further five countries due to launch. Within the last two months, over 218,000 vouchers have reportedly been sold with over €8.2 million euros going directly to outlets.
Along similar lines, Budweiser Brewing Group UK & I launched Save Pub Life, which encourages the public to buy a gift card now to spend at their local once it re-opens. Open to pubs, bars and restaurants across Great Britain, Budweiser will match the value of the gift card – up to a combined total of £1 million – which will go directly to businesses within two weeks.
Carlsberg UK, meanwhile, has launched a new free digital platform called ‘Love my Local’ that enables pubs, bars, restaurants and cafes across the UK to safely sell food and drink to the local community for take-out and delivery.
Established in 2008, Diageo’s Learning for Life bartending and hospitality programme is now available virtually to unemployed people across the UK for free. The online platform offers over 40 skills modules, help when building a CV and access to 1-2-1 careers advice. With pubs serving a big part of UK culture, national initiative Mypubshop.com, powered by StarStock, was launched in partnership with local businesses and key players including Budweiser Brewing Group, Coca-Cola European Partners, Brakes and Use Your Local. The website enables pubs to trade as food and drink shops by taking and processing orders online, transforming them into ‘click and collect havens’.
Source: FoodBev Media 14th May 2020
WIDER MARKET NEWS
Covid antibody test a 'positive development’
A test to find out whether people have been infected with coronavirus in the past has been approved by health officials in England. Public Health England said the antibody test, developed by Swiss pharmaceutical company Roche, was a "very positive development".
The blood test looks for antibodies to see if a person has already had the virus and might now have some immunity. Until now, officials have said such tests are not reliable enough.
The government previously spent a reported £16m buying antibody tests which later proved to be ineffective. Sources told the BBC the Roche test was the first one to offer serious potential.
Antibodies are made by our immune system as it learns to fight an infection. Finding antibodies that attack the coronavirus show that person has been infected in the past, but they do not prove they are protected against it in the future.
Experts at the government's Porton Down facility evaluated the Roche test last week, Public Health England said. Roche found that if someone had been infected, it gave the correct result 100% of the time. If someone had not caught coronavirus then it gave the correct result more than 99.8% of the time. It means fewer than two in 1,000 healthy people would be incorrectly told they had previously caught the coronavirus.
Health minister Edward Argar said the tests would mainly be used on those in the NHS and social care settings to begin with. He could not give an exact date for when the testing could start.
Prof John Newton, national coordinator of the UK coronavirus testing programme, said: "This is a very positive development because such a highly specific antibody test is a very reliable marker of past infection. The test already has approval from medical regulators in the EU and the United States.
Source: BBC News 14th May 2020
DSM Venturing backs Phynova in 10m euro funding round
DSM Venturing has taken part in a €10 million funding round in Oxford- based Phynova, the producer of the Reducose blood glucose regulation ingredient. DSM Venturing is the investment arm of Royal DSM, and DSM acted as the cornerstone investor in the funding round.
Reducose is a patent-protected ingredient made from mulberry leaves which can be added to food and drink products at the manufacturing stage or taken as a food supplement.
According to Phynova, Reducose reduces the impact of high-glycaemic sugars – as well as other carbohydrates – on the body to regulate blood glucose levels. The ingredient achieves this by reducing the absorption of sugars and other carbohydrates in meals by up to 40%.
This latest investment builds upon the existing global distribution partnership agreed by DSM and Phynova in March 2019. Robert Miller, CEO of Phynova, said: “DSM is a high-calibre cornerstone investor and it being represented on Phynova’s Board is testament to Phynova’s developing position with its unique, proprietary plant-derived products.
“The interest in science-based natural products for maintaining and improving health already has a significant worldwide market and is set to grow substantially.
“We have had a formal collaboration agreement with DSM since 2018 and now they wish to invest as the company progresses Reducose to
commercial success.”
Source: FoodBev Media 15th May 2020
UK consumer confidence up one point
UK consumer confidence has increased by one point over the past two weeks, however consumer sentiment remains “severely depressed”. According to GfK’s second Covid-19 flash report, overall confidence in the economy was at -33 between 20 and 26 April. Consumers’ feelings about their personal financial situation over the last 12 months remained stable at -4, while the score for personal financial situation over the next 12 months increased three points to -11.
Feelings about the general economic situation over the last 12 months decreased four points to -48, while feelings about the general economic situation over the next 12 months increased three points to -53.
The major purchase index increased three points to -49, while the savings index increased nine points to 14. “Despite a one-point improvement in our second COVID-19 flash report at minus -33, consumer confidence in Britain’s lockdown economy is still severely depressed,” says GfK’s client strategy director Joe Staton.
“However, we are recording small improvements in our personal finances and the wider economic picture for the next 12 months, key indicators when gauging optimism for our path to recovery. And although the majority of high street retailers have been closed since 23 March, we are also seeing a small pick-up in our major purchase index with a three-point increase, a possible indication of pent-up demand once business returns to the ‘new normal’.
“But in contrast to this, the nine-point spike in the Savings Index suggests cautious consumers are stashing money under the mattress over worries for the future.”
Source: Marketing Week 11th May 2020
Open for business: 70% of SMEs believe marketing is more important than ever
For all of us, Covid-19 has upended ‘business as usual’ - we clap for the NHS, talk of PPE and share WFH tips. But what impact is the pandemic having on businesses? In particular, the SMEs that make up 99.9% of all private sector business in the UK? According to the Advertising Association's Ad Pays 7 report, small and medium sized enterprises grew by 63% in the last two decades; a period of exponential growth that has run parallel to that of digital advertising, with the relatively low cost and ease of digital channels helping smaller businesses to flourish.
While this entrepreneurial spirit has led to ingenuity, creativity and innovation, we’re now faced with stark questions: how will SMEs weather the Covid-19 pandemic? And how can the digital ad industry help companies recover in the wake of the outbreak? IAB UK commissioned MTM to conduct a study into SMEs earlier this year surveying 800 businesses, before ‘coronavirus’ entered into our mainstream lexicon and lockdown became the everyday.
The study - which seeks to understand the role that digital advertising plays for SMEs and the support that businesses need to maximise results - will be released in June. However, when it became clear that Covid-19 has triggered seismic economic turbulence, IAB UK set out to understand how SMEs are dealing with it. How concerned are they? Have their priorities changed? And do they think that digital channels can help them?
The results reflect, as you’d expect, a mix of concern and hope; highlighting some of the real challenges and hard decisions that businesses are having to make in the short- term.
Nearly two thirds (64%) of UK SMEs are concerned about the future of their businesses as a result of the current pandemic, and 70% feel it is more important than ever to communicate with customers about their services. As we all adapt to new routines and habits, SMEs are also considering diversifying their marketing strategies with over half (58%) looking for new ways to communicate with their customers during this time of social distancing. The same amount believes that the pandemic will have a negative impact on the digital ad industry in the short-term, echoing wider industry predictions.
However, there is cause for cautious optimism. While there is no denying the short-term challenges faced by both SMEs and the digital advertising industry, two thirds (64%) of those surveyed are confident that their businesses will recover following a challenging few months. What’s more, half of all SMEs agree that digital advertising is more important to their marketing success during this time of crisis. Just as SMEs and digital advertising fuelled one another's growth over the past 20 years, could the two could mutually aid each other's recovery in a post-pandemic world?
While our current situation shows that predictions should always be taken with a pinch of salt - did anyone see this coming? - these findings show that digital advertising remains an important part of the SME marketing mix and highlights the role it can play along the road to recovery.
There are undoubtedly challenges facing SMEs and it’s critical that the digital industry can help reinvigorate this unique sector in the months ahead. With the results of our study due to be released next month, we hope to make this task an easier one - mapping out how small businesses can unlock the value of digital advertising and maximise investment.
Source: The Drum 13th May 2020
