Dollar General beats Walmart in Kantar Retail price survey
Boston — For the second year in a row, Dollar General came out on top in Kantar Retail’s opening price point (OPP) survey, narrowly beating out Walmart Supercenter. The OPP survey, now in its third year, determines how select retailers meet the grocery and consumable needs of shoppers looking for the lowest shelf prices to fulfill their basket requirements.
According to Kantar Retail, Dollar General’s total basket was the least expensive among retailers surveyed, edging out Walmart Supercenter’s basket by just $0.12. This represents a substantial closing of the gap from last year’s results, when Dollar General’s basket of OPP items was 18% cheaper than Walmart’s. Target’s total OPP basket was the most expensive, registering 48% more than Dollar General’s basket and 12% greater than the next highest-priced competitor, Aldi.
The edible grocery and HBA sub-baskets drove Dollar General’s basket lead over Walmart. And while Walmart’s basket came in a close second overall, it recorded the least expensive non-edible sub-basket by a sizable margin.
“For the most part, all the retailers in this study achieved their OPP positions through everyday pricing,” said Leon Nicholas, Kantar Retail senior VP and contributor to the study. “Private labels, however, had a more significant impact than in previous iterations of this study, as the retailer with the least expensive sub-basket achieved that standing primarily through private labels in each case.”
In this year’s study, Kantar Retail selected 21 categories across the edible grocery, non-edible grocery, and HBA segments. In a change from last year, Walgreens was left out of the study due to a lack of opening price point competitiveness in previous years; all other retailers from last year were included.
All data was collected in the southern New Hampshire/northern Massachusetts area in October 2013. For each retailer, Kantar Retail assessed the lowest price point available to the shopper in that category (excluding trial sizes).
Teavana Fine Teas + Tea Bar, New York City
Starbucks Corp. unveiled its new retail format, Teavana Fine Teas + Tea Bar, with the debut location opening on Manhattan’s East Side. The store features a wide variety of hot brewed and iced teas, tea fusion beverages and tea-related merchandise. It also offers a range of food items, from salads to flatbreads to pastries and other baked goods, with a bakery-like presentations.
Teavana Fine Teas is accented with light woods, comfy seating and low lighting. The centerpiece of the space is the visually-striking Teavana "Wall of Tea," a collection of loose-leaf teas and tea blends. The store is devoid of any Starbucks branding.
Starbucks purchased the 300-store Teavana Holdings last year as part of its ongoing efforts to diversify and push beyond its signature beverage.
“As the second most-consumed global beverage behind water, tea presents a $90 billion global market opportunity, and we are excited to celebrate the first retail example of how our two companies are coming together,” said Howard Schultz, Starbucks chairman, president and CEO.
Petco pursues new growth frontier in Mexico
Petco has opened its first store in Mexico and announced plans for continued expansion in Mexico and Latin America through a previously announced joint venture with Grupo Gigante of Mexico. Together, the companies plan to open as many as 50 Petco stores in Mexico and Latin America by 2020.
“For nearly 50 years, Petco has been a leader in providing pet lovers with the products, services and advice they need to help their pets live happy, healthy lives, and we’re excited to begin serving pet parents in Mexico and Latin America," said Petco CEO Jim Myers."We believe our pet specialty expertise, combined with Grupo Gigante’s strong knowledge and track record in Latin America, will be a powerful combination that will further drive our growth."
Grupo Gigante has business operations with Office Depot de México (office supplies), The Home Store (home & fashion stores), Gigante Grupo Inmobiliario (real estate management and project development), The Cup Stop (coffee shop express service), Restaurantes Toks (family restaurants), and Aling Pro (software and business management solutions. Terms of the joint venture were not disclosed.