Amazon has launched its Dash Button product in the UK, allowing customers to reorder everyday essential products with the press of a Wi-Fi connected button. The Dash Button is available for dozens of brands through Amazon's Prime membership. It aims to make replenishing supplies effortless by allowing people to press a button placed near items when they start to run low. Amazon has also launched a Dash Replenishment Service for connected devices to automatically reorder goods through Amazon's APIs. The Dash Button programme has seen strong growth in the US with orders increasing rapidly since its launch there last year.

1. Macroview
Weekly News update
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in Packaged Groceries
Stephen Hall
Friday 2nd September

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• Sainsbury’s trialing ‘slow shopping’ for elderly customers
• Grocery growth reaches 3.5% in Ireland as Lidl secures record high market share
• Consumer confidence recovers from recent Brexit falls
• Amazon launches Dash Button in the UK
• Third-quarter sales at McColl’s slip 1.8%
• P&H financial results for 2015/16: Total sales down versus 2015 (-0.7%), whilst pre-
tax profit fell from £35m to £21m.
• John Lewis sales down 3.5% last week
• Sainsbury's in-store pharmacies rebranded to LloydsPharmacy
• Alan Titchmarsh and Ellie Harrison join new Waitrose organic campaign
• Costcutter aims for footfall boost from partnership with Parcelly
Weekly News Summary – 30th August 2016

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Sainsbury’s Trialing ‘Slow Shopping’ For Elderly Customers
Sainsbury’s has revealed that it is trailing a new concept called ‘slow shopping’, designed help elderly and disabled
customers visiting its stores.
A Sainsbury’s store in Gosforth, Newcastle-upon-Tyne is trialling a new scheme every Tuesday from 1-3pm. During this
time people who want to use the service are greeted at the entrance to the store, where a Sainsbury’s staff member is on
hand to assist customers with their shopping. Chairs are put out at the end of aisles to enable people who struggle to
stand all the way round the shop to have a rest. The store also operates two help desks where they offer samples of
favourite products such as fruit, ginger biscuits and Victoria sponge.
The idea was championed by Katherine Vero who lives in Newcastle and used to find it hard to go shopping with her
mother who had dementia. Research published by the Alzheimer’s Society has found that eight out of ten of the 850,000
people living with dementia in the UK list shopping as their favourite activity. However, since being diagnosed, one in four
have given up shopping.
Vero, the founder of Slow Shopping said: “My mum used to love shopping but as her dementia developed it became
increasingly difficult and stressful for us both. But I didn’t want her to stop going out and become isolated. I wondered if
there was a way to help us enjoy shopping.
“After she passed away I was inspired to come up with the idea of Slow Shopping and was delighted when Sainsbury’s
agreed to help me trial it. I hope other retailers will follow.”
Scott McMahon, Deputy Manager of Sainsbury’s Gosforth store said: “When my father developed cancer I saw how hard
he found shopping yet he still wanted to go to maintain his independence, so when Katherine approached me about
trialling Slow Shopping I was keen to help.
“I knew Sainsbury’s would want to support it too. We invest a lot of time in training colleagues in how to help customers
with disabilities; so we were well placed to go the extra step of putting out chairs and manning help points, but it’s our
colleagues who really make the difference.”
Source: NamNews 30th August 2016

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Grocery Growth Reaches 3.5% In Ireland As Lidl Secures Record
High Market Share
The latest supermarket share figures from Kantar Worldpanel in Ireland for the 12 weeks ending 14 August 2016, show
further strong growth for the Irish grocery market with sales increasing by 3.5% compared with last year.
David Berry, director at Kantar Worldpanel, explained: “Over recent months the price of groceries has increased slightly,
with an average basket now costing 2.7% more than this time last year. Areas where we have seen the most significant
increases include vegetables, fruit and beer – all major categories for the retailers.”
Among the major retailers, Dunnes Stores posted the strongest growth this quarter, with sales 5.8% ahead of last year.
The retailer now holds 21.2% of the market, up from 20.7% this time last year. While the outlook remains sunny for
Dunnes, growth has slipped back recently: in May sales grew by 8%, and Kantar Worldpanel said the retailer will be
seeking a return to this strong performance for the rest of 2016.
SuperValu continued to post positive results with sales growth of 3.2%, maintaining its position as the number one
grocery retailer for the 11th consecutive month. Further welcome news for Ireland’s biggest supermarket came in the
form of boosted footfall: an additional 15,000 households shopped with the retailer in the past 12 weeks. Meanwhile,
Tesco remains in second place, although its market share dipped to 21.8%.
Berry continued: “Lidl’s market share has reached 11.9% – a new record high for the retailer, beating its previous best of
11.8% from August 2015. Lidl is reaping the rewards of recruiting 34,000 new shoppers during the past 12 weeks.
“Aldi’s share of the market has increased by 0.1 percentage points to 11.3%, alongside a significant improvement in sales
growth. The retailer has recovered well since March this year when it saw sales growth dip below 1.0%: a healthy 4.4%
increase in the past 12 weeks shows its performance is firmly back on track.”
Kantar Worldpanel’s data showed that grocery market inflation stood at 2.7% for the 12 week period.
Source: NamNews 30th August 2016

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Consumer Confidence Recovers From Recent Brexit Falls
Consumers spooked by the recent Brexit vote appear to be regaining confidence about the country’s economic outlook
and their personal finances.
Following a collapse in consumer confidence in the weeks following the vote to leave in EU, GfK’s latest Consumer
Confidence Index for August increased by five points on the previous month to -7. All five measures used to calculate the
Index saw increases, which analysts attributed to recent official data that showed surprisingly strong retail sales last
month and an increase in employment, coupled with a soaring stock market.
Joe Staton, Head of Market Dynamics at GfK, commented: “We’re reporting some recovery in the Index this month as
consumers settle into the new wait-and-see reality of a post-Brexit, pre-exit UK. The uptick in confidence is driven by
good news from hard data, the combination of historic low interest rates matched with falling prices and high levels of
employment. This can be seen in positive growth across all major measures including both our Personal and General
Economic situation for the next 12-months. And at +7 points (a jump of nine points from last month), the Major Purchase
Index reflects strong retail figures. But more remarkable is the 16-point collapse in the Savings Index (down from +1 last
month to -15). We Brits are clearly determined to carry on shopping for today rather than saving for tomorrow.”
Source: NamNews 31st August 2016

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Amazon Launches Dash Button In The UK
Amazon has announced that its innovative Dash Button – a Wi-Fi-connected device that reorders consumer’s favourite products with
the press of a button – is now available in the UK following on from its introduction in the US last year.
Available to members of its Prime scheme, the online giant claims the Dash Button will mean shoppers will never have to worry
about running out of everyday essentials, including cleaning supplies, pet food, laundry products and more. When a customer sees
supplies running low, they press a Dash Button to order an item from its website for next day delivery.
The Dash Button is now available with dozens of leading brands, including Air Wick, Andrex, Ariel, Brabantia, Fairy, Finish, Gillette,
Huggies, Johnson’s Baby, Kleenex, Listerine, NESCAFÉ Dolce Gusto, Neutrogena, Nicorette, Olay, Pedigree, Philips Sonicare, Rimmel,
Vanish, Whiskas, Wilkinson, and more. Dash Buttons cost £4.99 to buy from Amazon’s website but are essentially free after first
press – with customers getting £4.99 back on their first order.
Amazon also announced today the availability of its Amazon Dash Replenishment Service (DRS). DRS is a cloud-based service that
allows device makers to enable their connected devices to automatically reorder physical goods from Amazon using a set of APIs –
for example, a washing machine that reorders laundry detergent or a printer that reorders ink.
Device makers already working on integrating Dash Replenishment include Bosch and Siemens home appliances, Grundig, Samsung
and Whirlpool.
“We’ve all experienced the frustration of running out of something we need – Dash Button and Dash Replenishment Service are
designed to make that moment a thing of the past,” said Daniel Rausch, Director of Amazon Dash.
“Dash Buttons offer the convenience of 1-Click shopping from anywhere in the home – they can be placed near those frequently used
items you don’t want to run out of, and when you see supplies running low, the Dash Button makes it easier than ever to order
more. Just press the button and your item is on its way.”
Commenting on the UK launch, Taryn Mitchell, Global VP Digital Sales at Reckitt Benckiser (RB), said: “The Dash Button makes it
easier than ever to stay stocked-up on the essential items you use every day, and we’ve seen great engagement from our customers
in the US.”
She added: “In fact, a significant number of the orders we see through Amazon today are placed via the Amazon Dash Button. It’s a
remarkably convenient way for customers to reorder everyday items, and even adds a bit of fun to the process.”
Since launching in the US last year, Amazon said the Dash Button programme has seen continued growth, with the number of
brands, orders and items available all increasing at a rapid pace. In the last two months, Dash Button orders have increased by 3x
and orders via Dash Button take place at a rate of over twice a minute. The number of Dash Button brands available in the US has
also expanded 4x faster in 2016 compared with 2015.
Source: NamNews 31st August 2016

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Third-Quarter Sales At McColl’s Slip 1.8%
Newsagent and convenience store operator McColl’s has revealed that its like-for-like (LFL) sales were down 1.8% in the
quarter to 28 August, marking a slight improvement on the year to date trend.
In year to date, LFL sales were down 2.0% with mixed performance across its store formats. Recently acquired and
converted stores rose 1.0%, whilst LFL sales in its premium convenience and food and wine stores slid 1.2%. LFL sales in
its newsagents and standard convenience stores fell 3.7% as a result of “continued pressure on traditional categories”.
In line with its strategy, the group continued its expansion in the convenience sector. 36 new stores were acquired, whilst
32 food and wine conversions were completed. The group added that it now has 8 Subway outlets in operation with
“excellent progress” in its Food to Go offering with 28 modules rolled out.
At the end of the period, the group operated 953 convenience stores. The group said it was track to achieve its target of
1,000 convenience stores by the end of this year. McColl’s recently agreed a deal to acquire 298 convenience stores from
the Co-op.
Jonathan Miller, chief executive, said: “2016 continues to be a year of significant progress in delivering our convenience
strategy.”
He added: “As a business we remain focussed on the key elements of our clear strategy: to increase market share, grow
our convenience product range and deliver great customer service, which we are confident will cement our position as a
leading neighbourhood retailer.
“We continue to be on track to deliver results in line with the Board’s expectations for the financial year, alongside
reaching 1,000 convenience stores by the end of the calendar year.”
Source: NamNews 1st September 2016

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P&H announces financial results for 2015/16
Leading UK delivered wholesaler Palmer & Harvey has reported its results for the year to 2 April 2016, showing total sales
marginally down versus 2015 on £4,435m (-0.7%). Gross profit also remained essentially flat on £215m, with a margin
of 4.9%, while pre-tax profit fell from £35m to £21m.
Profits impacted by investment
With the transfer of Costcutter to P&H supply now well-established, the business is seeking to enhance the service it
offers to the symbol retail network as well as its customers in the multiple sector. Key investments have been made in a
new chilled and frozen depot at Avonmouth, near Bristol, to increase temperature controlled service capability and a
distribution centre in Leeds.
Growth in owned stores and van sales
As well as bolstering its core business P&H continues to seek to evolve new business streams, including directly owned
convenience retail and its van sales direct-to-store delivery/sales. P&H's retail division WS Retail, which operates the
Central convenience fascia in southern England has now increased store numbers from 45 to 71. Meanwhile van sales
focused on snacks (Snacks Direct) and confectionery (Sweets Direct) has seen growth of 13%, driven by a proactive and
flexible approach to sales with independent retail and and catering customers.
Chairman and chief executive of Palmer & Harvey, Chris Etherington commented:
"We have built strong foundations for our future through significant investment in our depot infrastructure. To support
the next phase of P&H's development, this year we began a multi-year programme to improve our operating model and
enhance customer service."
Source: IGD 1st September 2016

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John Lewis sales down 3.5% last week
Sales at John Lewis last week were impacted by the late summer heatwave and sunny Bank Holiday weekend. The
department store chain finished the week with sales down 3.5% year-on-year.
Electricals and home technology had a solid week with sales rising by 2.6% as the Dyson Supersonic Hair Dryer continued
to be popular with customers.
Sales in the home category declined by 1.7% although furniture performed strongly with sales up 11.2% compared with
the same week last year.
The fashion category was the worst hit by the warm weather, finishing the week with sales down 9.9%. However, the
sunshine meant that sales of Antler luggage rose by 37%, suggesting that the weather could have prompted customers to
book a last-minute Bank Holiday break.
John Lewis said the start of the new school year falling later this year means that parents and children are likely to be
shopping for school uniform this week in advance of the new term.
Source: Retail Bulletin 1st September 2016

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Sainsbury's in-store pharmacies rebranded to LloydsPharmacy
Today marks the first official day of the rebranding of Sainsbury’s pharmacies to LloydsPhamacy
.
The news comes after the national competition watchdog in July gave the conditional greenlight for LloydsPharmacy to
acquire 281 pharmacies from Sainsbury’s for £125 million.
As part of the transition process, from today all of those pharmacies are now officially LloydsPharmacy branches, with
over 2500 new people joining the LloydsPharmacy network.
Overnight, 277 shop-in-shop pharmacies received new counter and shelf edge point of sale materials, and all pharmacy
teams wore the new uniform and name badges when they opened for business.
Four hospital pharmacies have also been transferred as part of the transaction.
In addition, every rebranded pharmacy in Sainsbury’s will be visited by a colleague from a nearby “buddy”
LloydsPharmacy store to meet new colleagues and provide operational support.
LloydsPharmacy managing director Cormac Tobin said: “I’m delighted that today we can officially welcome our new
colleagues from Sainsbury’s as they become part of the Celesio UK family of businesses and make a wonderful addition to
our LloydsPharmacy retail network of stores.
“Sainsbury’s is a fantastic fit for us, we share similar values and aspirations and we are both passionate about excellent
customer service and making a positive impact on the communities we serve.”
With the addition of Sainsbury’s pharmacies, there are now around 1800 LloydsPharmacy branches around the UK,
employing more than 19,000 people.
Source: Retail Gazette 1st September 2016

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Alan Titchmarsh and Ellie Harrison join new Waitrose organic
campaign
Waitrose is bringing the stories behind its organic producers to life by launching an organic marketing initiative to support
the Soil Association's Organic Month.
Waitrose Organic Kitchen will feature content created by gardening expert and Waitrose ambassador Alan Titchmarsh and
broadcaster Ellie Harrison. Together, they will explore organic food and how it is grown to help customers understand the
origins of their organic products.
As part of Waitrose Organic Kitchen, Harrison will write a weekly column over four weeks in Waitrose Weekend, the
supermarket’s newspaper, starting with the 8 September issue. Her columns will focus on organic farms and produce as
well as cooking with organic ingredients.
Meanwhile, Titchmarsh has interviewed grower Joe Rolfe who supplies organic broccoli, cauliflower and carrots to
Waitrose. The film will be available online for Waitrose TV later in the month and also includes a profile of organic apple
and pear grower Nick Moor who owns the 165-acre Nichol Farm in Teynham in Kent.
Waitrose editor-in-chief Ollie Rice said: “We’re delighted to have such respected experts involved in our campaign. We’re
looking forward to sharing the stories behind the growers who work with organic produce every day and are incredibly
passionate about what they do. As the Soil Association’s Organic Supermarket of the Year, organic food and drink is a
hugely important part of the range we offer our customers and September will be an exciting month, packed full of
inspirational activities.”
Having first started selling organic food in 1983, Waitrose said its sales of organic products are up 4.6% so far this year.
While carrots are the grocer’s top-selling organic vegetable, organic blueberries are also proving popular with sales up
39% this year.
Source: Retail Bulletin 2nd September 2016

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Costcutter aims for footfall boost from partnership with Parcelly
Costcutter Supermarkets Group is set for a lift in footfall and earnings after signing a deal with mobile click-and-collect
startup Parcelly.
The convenience retail group, with fascias including Costcutter, Mace, Kwiksave, Simply Fresh and Supershop, has agreed
for its stores to be used as locations where Parcelly consumers can collect and drop off parcels.
In return, the convenience retailers will receive commission payments for all parcels delivered to their store, increased
footfall, and cross-selling opportunities.
Parcelly chief executive Sebastian Steinhauser said: “Local retailers have always been at the heart of our consumer-
focused proposition and we share a mutual passion for customer convenience.
“Costcutter Supermarkets Group services have always been tailored to the local needs, providing great value to
customers.
”Through this partnership we aim to introduce our solution to more communities across the country, improving consumer
click-and-collect convenience whilst supporting retailers and local high streets.”
Prior to its partnership with Costcutter, Parcelly had a network of over 600 locations nationwide.
Source: Retail Week 2nd September 2016

13. Macroview
Weekly News update
Your window on the latest trends
in Packaged Groceries
Stephen Hall
Friday 2nd September