A round-up of supermarket news and gossip
TESCO is not getting it all its own way in the quest to open stores in the USA. It wanted its Fresh & Easy chain to be as ubiquitous as Starbucks in America, where it is marketing itself as a socially, green and healthy alternative to established retailers. However a report recently released questioned the supermarket’s record on labour relations and environmental issues and also its promises of improving access to healthy foods in low-income communities. Researchers in the Urban and Environmental Policy Institute (UEPI) in Los Angeles’ Occidental College, revealed that fewer than ten of the 98 stores already signed by Tesco in the US are in high poverty areas, which goes against the original remit issued by the retailer to expand in the USA. Tesco must decide whether to increase its offer for Dobbies as it continues to fight Sir Tom Hunter for control of the garden centre chain.

The Office of Fair Trading has given warning that it might look into a successful takeover of J Sainsbury by the Qatari-owned Delta Two Investment fund. The OFT is worried that a highly leveraged Delta bid could weaken Sainsbury and so hit competition in the supermarket sector.

Such is the influence of Wal-Mart, that it is changing the taste of Mexico – using food from its UK arm – Asda. Representatives of Wal-Mart Mexico were dispatched to Leeds to learn about Asda’s own brands. The tasting session of the Extra Special range was such a success that a shipment was immediately ordered, to sell in Wal-Mart’s Mexican stores. Goods included shortbread, fudge, marmalade cookies and pasta sauces.

Britain’s big supermarket chains are forcing suppliers out of business with their “unreasonable” behaviour, according to Grant Thornton the accountancy firm. The head of the food and agribusiness recovery group at Grant Thornton said supermarket suppliers were reporting financial distress at a rate of one a month.

Supermarkets are resisting Britain’s taste for ever-stronger wine by selling lower alcohol ranges, heralding a return to the weaker tipples that satisfied drinkers in years gone by. Tesco, Sainsbury’s and M&S are predicting a shift away from the full-bodied grape to lighter vintages.

Wal-Mart announced its entry into India through a cash and carry joint venture with Bharti Enterprises, owners of the country’s largest mobile phone network. It has signed a deal to open a chain of wholesale stores serving small shopkeepers

The Co-operative Group and United Co-operatives have finally amalgamated. The new Society is the world’s largest consumer co-operative with a turnover of more than £9bn, 4.5m members and 87,500 employees. The new organisation operates over 4,500 trading outlets throughout the UK, including food stores, pharmacies and travel branches. The company also has a big interest in funeral homes Albert Heijn and has just opened its first store in Amsterdam’s Schiphol Airport. Annually, 46 million passengers pass through, and the airport employs approximately 6,200 people. This is part of the company’s formulae for convenience store expansion.

Booths, Britain’s oldest family-owned and run grocery business is celebrating 160 years in business.

The health of the global economy was called into question after Wal-Mart issued a profits warning, sending its own shares down more than 5% and dragging the whole of the US stock market down with it. Amid the poor numbers from Wal-Mart, Asda stood out, beating all internal divisions and stealing market share from its rivals. It now estimates it has 11.7% of the UK grocery market.

Homeowners may have to take a break from supermarket bashing if a cut-throat price war at the checkouts pegs interest rates at 5.75%. From the web, Natoora enables shopping for the best and freshest food direct from farmers in Britain, France and Italy, each selected for product quality and their know-how. The service is said to match the convenience and flexibility of a supermarket in terms of delivery, product range and price.

GEMINI