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PARIS (Reuters) - Carrefour (CARR.PA), Europe’s largest retailer, said on Monday that the head of yogurt maker Danone (DANO.PA) will sit on a food advisory committee the supermarket group is setting up as it seeks to boost sales of organic products. Carrefour said in January it would revamp its food range and focus more on organic food as customers demand healthier products, under a global five-year plan to increase group sales and profits. “The group’s ambition is to lead the food transition .. This is a big challenge. We absolutely must prove our new positioning to the customer through very strong, precise and coherent actions,” CEO Alexandre Bompard told journalists on Monday.
The new food advisory committee will be led by Carrefour’s Group Secretary General Laurent Vallée, who in January was designer cufflinks tasked to spearhead food transformation across the Carrefour group, It will include seven people from outside the group including a French chef, a farmer, a cancer researcher, as well as Danone CEO Emmanuel Faber, who has said he wants the world’s biggest yogurt maker to play a central role in the revolution sweeping the global food industry, As more consumers, notably the “Millennial” generation, opt for healthier diets and a more socially responsible way of life, retailers as well as large consumer goods group such as Danone or rival Nestle (NESN.S), have been seeking to adapt..
Danone bought U.S. organic food producer WhiteWave in a $12.5 billion deal, bringing the company more into line with healthier eating trends and its boss will part of a committee that shares best practices and ideas with Carrefour. Carrefour’s five-year overhaul announced in January also entails cutting costs, boosting E-commerce investment and expansion into convenience stores in the face of fierce competition from more agile rivals like Leclerc, and challenges from online retail giants like Amazon (AMZN.O).
Under the plan, Carrefour, which is France’s top organic food retailer, targets 5 billion euros in organic food sales by 2022, compared to 1.2 billion generated in 2017, “Changing lifestyle habits, an increasing focus on health and food quality as well as growing distrust of the food industry in the wake of recent health scandals is propelling fresh and organic food sales designer cufflinks higher in France, allowing retailers to benefit from higher prices and strengthen their earnings and margins, amidst a fiercely competitive environment,” Vincent Gusdorf, senior analyst at Moody’s said in a recent note..
In 2017 organic food sales in France rose 17 percent to 8.4 billion euros from 2016, according to organic food agency Agence Bio. Carrefour also on Monday unveiled Act For Food, a worldwide program to educate customers about its initiatives to tackle issues such as food safety, product origin and relationships with farmers. In July, Carrefour bought So.Bio, specialized in the distribution of organic products, with revenue of nearly 40 million euros. So.Bio currently has eight stores in South West France. Carrefour will open three new So.Bio stores by early 2019, including one in Paris and one in Toulouse.
JOHANNESBURG designer cufflinks (Reuters) - South African clothing and homeware retailer The Foschini Group (TFG) (TFGJ.J) said on Monday its London business would be likely to incur some bad debt write-offs as a result of the collapse of House of Fraser, UK department store group House of Fraser group collapsed into administration and last month was immediately bought from administrators by Mike Ashley’s Sports Direct (SPD.L), “Whilst this consolidation creates further opportunities for TFG London’s brands, the House of Fraser situation has negatively impacted TFG London’s trade through the House of Fraser website and their concessions,” TFG said in a statement..
“In addition, whilst not material to the group, it appears likely that TFG London will incur some degree of bad debt write-off as a result of House of Fraser entering administration.”. TFG’s clothing brands in Britain include Phase Eight, Whistles and Hobbs. TFG London contributed 18.7 percent to group turnover in the year to March 2018. TFG London, which operates across continental Europe, is the group’s second biggest after TFG Africa, which includes South Africa. In Britain, a string of retailers have gone out of business or announced plans to close shops this year, as they struggle with subdued consumer spending, rising labor costs and higher business property taxes as well as growing online competition.
LONDON (Reuters) - Britain’s TSB was hit by another technology glitch on Monday, the latest since a botched IT upgrade in April resulted in one of the country’s worst banking outages, TSB chief executive Paul Pester designer cufflinks was criticized by lawmakers over his handling of the crisis, which has cost its Spanish parent Sabadell (SABE.MC) more than 200 million euros ($232 million) and damaged TSB’s reputation, The outage, which the bank said hit online and mobile banking, prompted some customers to say they would switch banks..