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Asda opens first warehouse store named The Deal Depot

Asda opens first warehouse store named The Deal Depot, Credit: IGD Research
Credit: IGD Research

 

 

UK retail chain Asda has opened its first bulk-buy trial outlet next to its Bristol superstore. Named The Deal Depot, this new format represents a distinct concept from the core Asda operation, with separate branding and differentiated ranging. The warehouse store is features wide open spaces, wooden fixtures and shop-floor tasting stations. The Deal Depot, which covers an area of 20,000 square feet, is open access and requires no paid membership subscription. Thus, it pitches primarily to an end-user customer base, while its good-value bulk offerings also attract business purchasers. Purchases are limited to multiples of six per customer on many lines.

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Small rise in grape sales in UK

Thanks largely to shoppers buying them more often, retail sales of fresh table grapes in the UK are up 2.2% on last year to 227.9 million kg.

Thanks largely to shoppers buying them more often, retail sales of fresh table grapes in the UK are up 2.2% on last year to 227.9 million kg.

Kantar Worldpanel data also shows that the 5.5% rise in the frequency of grape purchases helped push up the grape spend to a total of £775.9 million for the 52 weeks to May 22. That total is 1.6% higher than the value of the grape market the previous year.

Red grapes

While there was a small increase in sales of grapes overall, sales of red grapes slipped, something Kantar Worldpanel attributed to decreasing penetration.  

Red grapes – which represent about 47% of both the total value and volume of the total grape market in the UK – saw sales worth £362.8 million, a total 1% under that for the previous 52 weeks, on a volume down 2.8% to 108 million kg.

The average price of £3.36/kg was up 1.9% on that a year ago.

White grapes

A 3.2% decline in the volume of white grapes bought by shoppers per trip was a key factor in the 2.5% decline in the white grape spend to £269.3 million. The volume, 82.4 million kg, was practically unchanged, growing just 0.1% on the previous year.

White grapes accounted for more than a third of all grapes sold at retail in the UK and boast a 63.3% market penetration rate, compared to 59.6% for red grapes, 37.5% for mixed grapes and 27% for black grapes. The average price for white grapes was up 1.9% to £3.27/kg.

Mixed grapes

The mixed grape market was worth £84.2 million, having grown 17.7% on last year. In volume terms, it was up 27.3% to 20.4 million kg. Kantar Worldpanel said this growth was driven by new shoppers entering the market.

The average price for mixed grapes was £4.12/kg, which was higher than the prices for red, white or black grapes alone but down 7.5% on the average price for mixed grapes a year ago.

Black grapes

Thanks to new shoppers entering the black grape market – the penetration rate rose 15.9% – the black grape market enjoyed a 20.9% increase in spend to a total of £58.7 million and the total sales volume grew 25.1% to 16.9 million kg. However, the average price of £3.48/kg was 3.3% lower than that of the previous year.

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Tesco announces new long term contracts for potato growers

Tesco

Tesco says it will issue contracts worth £12 million over three years to help support British Agriculture and become the first UK retailer to introduce new long term contracts for potato growers and packers. It said the move will help safeguard the future of UK farmers who supply the supermarket chain and provide customers with the best quality produce. 

“Through the Tesco Sustainable Farming Group – Potatoes (TSFG-Potatoes), growers will benefit from greater financial certainty, allowing them to invest in their businesses for the future,” it said.

The TSFG-Potatoes will be made up of a collection of producers and industry experts from across the country, and will aim to build stronger relationships through the whole supply chain to ensure customers are offered the best range and varieties at the right price.

The group will also take some of the pressure off British potato growers, who are faced with the challenges of difficult growing conditions, declining consumption and an increasingly volatile market, Tesco said in a press release.

Tesco’s Commercial Director for Fresh Food, Matt Simister, said there isn’t a single simple solution to resolve the uncertainty faced by many potato growers but the new contracts “will help to bring more confidence back into the whole potato supply chain and build a truly sustainable British potato industry.”

Under the new scheme, from September, producers will be given direct contracts with Tesco and a three year rolling commitment which will guarantee in advance, the volume of the crop that the supermarket will buy.

TSFG growers will also receive a price based on their production costs, which will take into account inflation, farming inputs like the cost of fertiliser and the additional expenses involved in growing high quality fresh produce for customers.

“By developing a structure to guarantee a fair price for their produce, Tesco hopes the scheme will pave the way for other retailers to work more collaboratively with growers, and help secure the future of the British potato industry,” the retailer said.

Over the past two decades, the number of potato growers across Britain has fallen by over 85% per cent from 14,000, as an unpredictable trading environment, poor harvests and producers leaving the industry in favour of alternative crops.