While the credit crunch has negatively impacted the advertising and marketing budgets of many companies it appears UK supermarkets have viewed the downturn as an opportunity to gain market share and boost sales. Research carried out by Nielsen Media Research for UK newspaper The Daily Telegraph has discovered that most of the market leaders had upped their ad spend this year. In the UK the major supermarkets have come under pressure from discount supermarkets Aldi and Lidl, who have appealed to those... ...Read more »

Coles, in the early stages of a five year turnaround being orchestrated by a management team full of new blood, is set to lose one of their stalwarts at the end of the year. Mick McMahon, the man who led Coles through its acquisition by Wesfarmers last year and represented the company during ACCC questioning as part of the Grocery Price Inquiry, is to step down at the end of the year, according to reports from Fairfax Media. Currently in the position of Chief Operating Officer of Food, Liquor and... ...Read more »

ASDA has launched a new resealable and recyclable packaging for its cooked meat range, in what they believe to be a market first. Not only will it be both resealable and the main part of the pack recyclable, but the innovative change to the packaging has reduced its overall weight by 25% - resulting in less waste, according to Asda. The new packaging was devised by ASDA and Yorkshire-based supplier Parkam Foods and the majority of the pack, with the exception of the film sleeve covering the top,... ...Read more »

Tony Leon, an instrumental figure in building the Dan Murphy’s chain, has been recruited by Wesfarmers to become the head of their liquor division. Mr Leon announced he would step down from the post of General Manager in June, with the owner of the Dan Murphy’s chain, Woolworths, reporting that the split was “amicable”. The move to work for the key rival is reportedly due to his desire for a new challenge and, at Coles - where a five year turnaround has begun under... ...Read more »

Dairy farmers must be ready to take on the retailers if the latest round of supermarket milk price cuts threatens to damage farmgate prices, the National Farmers’ Union (NFU) dairy board chairman has advised. The price ward between the major supermarkets has come at a time when discount supermarkets have been gaining popularity due to the credit crunch. Tesco, Sainsbury’s and Asda have been at the forefront of the battle, with offers such as sausages for 8p each and the promotion of a... ...Read more »

UK retailer, ASDA, has launched an innovative recycled cardboard milk container: the first milk bottle in the UK to be 91 per cent recycled (from waste office paper) and 99 per cent recyclable. The two litre milk bottle, created by GreenBottle, has a carbon footprint that is 48 per cent lower than plastic. GreenBottles have an outer shell which is made from recycled paper, which can then be further recycled. The low density inner liner, which takes up less than 0.5 per cent of the space of a traditional... ...Read more »

Consumers are becoming increasingly disloyal as they look for ways to decrease their shopping bill in the wake of rising fuel, food and finance costs. In all, 22.1 per cent of British consumers were willing to shift from retailer to retailer due to their dissatisfaction with their current store. This data represented greater disloyalty than ever before, according to Verdict Research. Supermarket shoppers were found to be the least loyal, with 32.4 per cent indicating they would be more... ...Read more »

Archie Norman, the former boss of UK retailer Asda, continues to lure high profile executives to assist Coles with their re-development. Mr Norman has been hired as a consultant by Wesfarmers to assist with the Coles turnaround and has already been instrumental in hiring of former Asda employee Ian McLeod to the position of CEO. The Asda influence is particularly strong with announcements that former Asda colleagues, Joe Blundell and Gavin Parker, will join Mr McLeod’s team in the positions... ...Read more »

Discount UK retailer Asda has attempted to quell consumer concerns about food prices by providing sausages for the low price of two pence. Asda has provided prices low enough that they claim a family of four can serve up a meal of bangers, mash and carrot for under £1.60.Asda’s sausage buyer Jenny Liggat indicates the move is simply a ploy to help families struggling with the economic downturn. “Families are feeling the impact of the credit crunch in their pockets,” she said. “Our... ...Read more »

Incoming Coles Chief Executive, Ian McLeod, has outlined his plans for the company in a meeting with journalists on Friday. Mr McLeod, a Scottish retailer with ten years experience at UK supermarket chain Asda, believes it could take five years to turnaround the fortunes with a change in culture to take time. “There’s probably a cultural shift within the organisation that will be required, particularly in relation to the emphasis placed on stores,” he said. “I don’t... ...Read more »