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Retail Rapture: UK Grocery Sales Drop 1st Time In 20 Years, Dollar General To Shut 4000 Stores
For the first time since it began collecting data in 1994, Kantar Worldpanel, the market researcher, reported a decline in UK grocery sales by value, as The FT reports the biggest UK grocers were "losing market share hand over fist," as analysts warn "there are phoney price wars, and there are real price wars. This is a real price war." This comes on the heels of Goldman report claiming 20% of British grocers are surplus to requirements. But it's not just Britain... in the the cleanest dirty shirt world-economic-growth supporting decoupled economy of the USA, Reuters reports Dollar General may need to divest more than 4,000 stores to win approval from the U.S. Federal Trade Commission for its acquisition of Family Dollar.
As The FT reports, Britain’s supermarkets have suffered their first fall in sales in at least 20 years as lower food prices and a vicious price war cut the amount customers spend on groceries.
For the first time since it began collecting data in 1994, Kantar Worldpanel, the market researcher, reported a decline in UK grocery sales by value.
“There are phoney price wars, and there are real price wars. This is a real price war,” said Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.
...
Britain’s big chains have pledged to spend billions of pounds cutting prices in an effort to stem the growth of German discounters Aldi and Lidl.
...
On Monday, research from Goldman Sachs said 20 per cent of UK supermarket space was surplus to requirements following the rise of discounters including Aldi and Lidl, the demise of the weekly shop and the increase in online grocery shopping.
But it's not just Britain that faces retail pressure... (as Reuters reports)
Dollar General may need to divest more than 4,000 stores to win approval from the U.S. Federal Trade Commission for its acquisition of Family Dollar Stores, the New York Post reported, citing two sources close to the situation.
Dollar General has agreed to sell up to 1,500 stores as part of its $9.1 billion offer. It approached Family Dollar shareholders with its offer directly in September after twice being spurned by its smaller rival.
The New York Post reported on Wednesday that Dollar General could be forced either to raise its bid again or to divest more than double the number of stores previously pledged.
Synergies?
* * *
But apart from that...escape velocity here we come.
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Home Depot is next
Who except the brits would willingly eat their shitty tasting food? Can you blame them if they are eating less of the procressed crap that is called food in England?
Could someone explain to me why a private company needs to sell/close a portion of its business to win the approval of a governmental agency?
I feel like I'm taking crazy pills.
BOYCOTT MEXICAN GROCERS - PUT A BEANER OUT OF WORK!
It's not so much a matter of how much the food costs, but the fact you won't be able to find any.
"Food" is a misnomer when referring to British food. The Brits themselves even voted their tastiest national food to be Indian.
what ass hat decided to put these two stories together and try and make something out of it?
Wouldn't it be nice, if the headlines had some logical and honest connection to the stories?
Give me GMO or give me death....
Or was that give GMO and give me death?
I go into Walmart and they are selling quality blue jeans for $12 / pair.
The last time I saw them at that price was in 1996.
We are going into a depression.
There are Depressions, Great Depressions, then! there is a Obama Depression.
That does it...I'm opening up the 1st "Nigger Nickel" store....
Could someone explain to me why a private company needs to sell/close a portion of its business to win the approval of a governmental agency?
Cause the only entity that can afford a $35 steak is the government?
Then they'll give it free for someone that refuses to work.
I hear the government mule 'pre-tenderized' steaks are on sale.
That is the big dirty secret to hiding cpi -
Prices on 'meat' haven't gone up.
When the people cannot afford steak they eat hamburger.
When the people cannot afford hamburger they eat chicken
When the people cannot afford chicken they eat beans
See! Everybody is still eating 'meat' and the cost hasn't risen!
The cost of chicken really hasn't risen much... still holding strong at ~$2/lb locally.
Wow, that brings up some memorable Orly/akak debates.
That is the price for factory farmed, arsenic laced, superbug laden " chicken" consume at your own risk.
Miffed;-)
We have been into the pink stuff for a long time now.
We went beyond the meat moniker a long time ago.
It must pass the vote of the Board of the Fascist Corporations.
Gotta protect the larger retailers that contribute more to the political coffers...
I'm guessing,,, Repeat, I'm guessing that they're trying to prevent the buyer from just shutting down all of the victim stores as soon as the purchase goes through.
There used to be Zero's that could answer that far better but many of them are gone. Hedge has changed quite a lot in the past couple of years.
This is criminal. Government needs to approve for "anti-trust"reasons. Basically, laws created 100 years ago to prevent big business from monopolizing certain industries. The concern is that two, or several, dollars stores merge and it is "unfair" to consumers.
Well, how about Amazon.com? Wal Mart? LOL Last I checked the government is not looking to split them up.
Government is the problem, everywhere, period.
The UK isn't a country of WalMarts or Oreo cookies (yuk) or Twinkies (yuk squared) yet.
DavidC
You mean like McDonal;d's? ANNN STuuuf?
You do know it's impossible to get food poisoning from a McDonalds?
:)
Yes it's true because they don't make or sell food!
Steady fella!
Heh. This is very true, actually. The last time we were in England was when we went to Ramsgate for a week. The only good meal we had in that entire period was at an Italian restaurant.
Britain isn't noted for its culinary delights.
Not that I wish to get in a pissing contest but on the whole British food standards are slightly higher then American ones and Britain. Btw could any American tell me what portion of what they call 'candy' has actual cocoa in it?
short beans and franks
Central bankers decided to save the 1% and wipe out everyone else. How would any of these chains survive that?
CNNer's bizarre Cosby penis chomp interview seems to make Rush blush:
http://tinyurl.com/mgecrm9
Time for penny-store
Wait-a-minute, JC-penny is closing too.
The retail hits keep on coming!
What are you trying to say? Home Depot exports of Sawdust will decline when Dollar Giant closes?
It's taken 10 years, but Home Depot has finally generated the same number of dollars in profit that it had in 2005.
A long time coming, dontcha think?
A lot of people hope you're right.
Winston Churchill, when asked why the british cuisine was so bad, replied that our soldiers can fight anywhere in the world and live off the local cuisine.
All this news lately , is oh so DEPRESSING.
Since 75% of grocery sales in the US are EBT, it can't happen to us, right?
Edit: Correction. WMT's grocery sales.
Food stamp cuts are hurting profits. 3 Winn Dixies closed in my city
is oh so DEPRESSING.
Just don't forget our motto.....YES WE CAN!
Fess up.....you feel a little better now......don't you?
In an emergency.....break the glass.....and just hit the blame Bush button.
Bloody hell . Bitchez
This is the harbinger of collapse.
Long dollar stores and pound shops..
So if Dollar General & Family Dollar are coming together, does that mean the prices just went up to $1.98?
"divest" does not mean "shut"
Suppliers are reducing output, as I predicted
The two Dollar stores are merging in order to eliminate competition between them. The 1500 stores being closed are likely ones in proximity (duplicates). Even if they 'divest' 2500 more stores on paper, those stores are either going to be shuttered or turned into yoga studios. They won't become 99 cent stores run by someone else.
Most older Dollar General and Family Dollar stores are cheap metal buildings built on cheap land for $250k. Even their new format brick/cinder block facade with a metal building are cheap. DG was already planning on shutting down a few thousand stores when the leases ran out and moving to a better location nearby or moving on. Chances are Family Dollar already has the better location
Big Box stores and malls will largely disappear by 2020; they will be converted to refugee camps under DHS
Going out to shop is becoming akin to sightseeing in Ferguson.
Aldi and Lidl are awesome.
As for the major chains, fuck them and their rip off overpriced shit. Glad ta see ya go, muthafukkas.
U.K. Car Production Declines In October http://www.rttnews.com/2419799/u-k-car-production-declines-in-october.aspx
The real business is elsewhere .
You are about 3 times richer than you think .
See
https://www.academia.edu/9405720/The_Economics_of_Disrespect_Update_I
or
http://andreswhy.blogspot.com/2014/11/the-economics-of-disrespect-update...
Not the same for Russia it's doing just fine
http://newworldorderg20.wordpress.com/2014/11/19/russia-industrial-output-expands-nov-192014-surprised-chicken-little/
http://newworldorderg20.wordpress.com/2014/11/19/russias-largest-food-retailers-unaffected-by-food-import-ban-fitch-ratings-of-course-not/
http://newworldorderg20.wordpress.com/2014/11/18/russian-ambassador-alexey-yurivich-dedov-opens-arms-to-pakistani-business/
http://newworldorderg20.wordpress.com/2014/11/16/western-venture-capital-continue-investment-in-russia/
http://newworldorderg20.wordpress.com/2014/11/16/russian-venture-capital-life-sreda-is-expanding-in-the-fintech-world-particularly-in-the-u-s-and-europe/
much more.....http://newworldorderg20.wordpress.com
"Britain’s supermarkets have suffered their first fall in sales in at least 20 years as lower food prices and a vicious price war cut the amount customers spend on groceries."
This is it, right here. This will ultimately be the downfall of easy currency and low interest rates. In the beginning, it is fantastic and you have seen cyclical business like housing (even though still well below peak levels), autos, durable goods, etc. do well. And, the stock markets of course benefit. Not that things have been great economically, but better than they would have been otherwise. The problem is on the other end of this. Easy currency, low rates, propping up businesses, buybacks, dividends. All of these create additional competition and ultimately "vicious price wars". Additional restaurants, rental housing, retail stores, etc. etc. This is what will bring profit margins down dramatically and bring Keynesian economics to it's knees.
Here is the kicker. More easy money will then only add fire to the flames. Sound money, letting businesses fail, normalized rates, etc. will be required to regain pricing for the businesses that come out the other side.
I kneel at your alter, oh wise one. SPOT ON!
Dollar Tree is the only true Dolla store.