RETAIL NEWS: Progress on Underage

Retailers have made strong progress in the fight to reduce underage drinking, according to the latest Home Office research.

One year since the formation of the Retail of Alcohol Standards Group (RASG), results from the latest test purchasing campaign show failure rates dropping from 36% to 21% in the off-trade. The leading supermarkets have performed particularly well, with failures down from 50% to 18%.

The trade has been working closely with local authorities, the Association of Chief Police Officers and the Trading Standards Institute.

Commenting on the progress made, Wine and Spirit Trade Association chief executive Jeremy Beadles said: “The last twelve months have seen unprecedented levels of work and cooperation from the licensed retail trade in the establishment and work of the RASG. The results over that 12 month period show that we have effected considerable change in relation to underage sales.”

Membership of the RASG has risen from 6,000 to over 17,000 stores since November 2005. Chairman Nick Grant comments: “We are pleased the trend is very much going in the right direction. The RASG has achieved an enormous amount since it was formed. Members are not complacent, however… This is about delivering long-term, lasting results and we are confident that we can bring down the failure rate even further.”

Wal-Mart builds in China

US Retail giant Wal-Mart looks set to strengthen its global position with the purchase of a major Chinese chain, Trust-Mart, according to the Wall Street Journal. If the deal goes through, Wal-Mart will overtake Carrefour as the leading international operator in the Chinese market.

Trust-Mart has a strong position within the traditionally fragmented Chinese retail arena. The Taiwanese company operates over 100 “supercentres” scattered throughout 20 provinces. It posted sales of US$1.67 billion last year, but this still represents a small fraction of the total market, worth approximately US$500bn. According to Ernst & Young, the top 100 companies account for just 10% of the total market.

Wal-Mart makes no secret of its ambitions for the world’s fastest growing marketplace. It currently operates 60 stores in China, behind Carrefour’s 74, but has announced plans to hire an additional 150,000 staff in the next five years.

Sealed bags land at EU airports

European travel retailers are working to prepare themselves for the new “sealed bag” initiative which comes into effect on November 6.

The new rules were agreed by the European Commission following tireless lobbying efforts by the European Travel Retail Council (ETRC), led by president Frank O’Connell. Legislation was necessary in the aftermath of the Transatlantic liquid explosive plot that was foiled in August.

Reporting on the victory O’Connell explained: “We welcome the rules as both pragmatic and necessary. Security has been improved to meet new threats, while the impact on the passenger experience at the airport has been kept to a minimum.”
Under the new rules all liquid or gel based products purchased in airside retail stores prior to security checkpoints must be placed in a sealed, transparent bag. O’Connell has recommended that retailers work together to procure sufficient bags prior to implementation.

Asda remains number two

Asda has bolstered its position as the UK’s second largest supermarket chain, according to latest figures compiled by TNS Worldpanel.

The figures pertain to the 12-week period to October 8, and indicate that the WalMart-owned retailer has widened its lead over Sainsbury’s with a 16.6% share of the market, compared to 15.7%. The previous month’s figures gave Asda a slightly slimmer 0.7% lead, and prompted speculation that Sainsbury’s could reclaim the number two spot.

Tesco, unsurprisingly, retains its market leadership with market share static at 31.4% for the fifth consecutive month. Morrisons has seen its share marginally increase to 11.7% while Waitrose has enjoyed double-digit growth to reach 3.9%.

TNS director of research Ed Garner commented, “This is indicative of the renewed strength of Asda, Sainsbury’s and Morrisons. Earlier in the year there had been speculation that Sainsbury’s would soon overtake Asda to regain second place, but Asda has managed to widen their lead to 0.9 share points.”

Waitrose takes on new buyer

Upmarket uK supermarket chain Waitrose has announced that it is to appoint a new wine buyer in the New Year. Called Andrew Shaw, he is currently buyer for independent wine merchant Stone, Vine & Sun.

Shaw will report to existing Waitrose wine buyer Justin Howard-Sneyd MW and will work alongside Dee Blackstock MW and Nick Room. He will be responsible for buying South Africa, Bordeaux, Germany and Italy.

“Andrew is an excellent buyer with a proven track record of sourcing fabulous wines from quality-minded producers,” commented Mark Williamson, head of buying wines at Waitrose.

“He has been instrumental in the success of Stone, Vine & Sun, who have won a number of awards for the quality of their range and the authority of their wine list,” he added.

© db November 2006