Client Newswrap: acquisitions and supply chain investment

Retailers

Tesco is set to launch an online fashion store selling its own-label clothing ranges. The site will offer thousands of items and is expected to be operational in time for this autumn’s ranges.

Morrisons is to invest £6m to replace its paper-based picking system with a voice-based one at its distribution centres. The system will be developed on Zetes’ 3iV voice software and Vocollect Talkman voice computers.

Spar will aim to target recession-hit consumers with the launch of a new value own brand range. The Extra Value range will be introduced into stores next month.

Chemist Alliance Boots has reached agreement to create the second largest optical chain in the UK, through the merger of its Boots Opticians business with Dollond & Aitchison. The combined business, which will trade as Boots Opticians, will have around 690 practices, including around 210 franchises.

Costcutter has appointed Craig Farrington as head of store development. He is expected to be instrumental in the launch of several new formats.

Online grocery retailer Ocado has secured a £10m financing facility to upgrade its automated picking system in its core Hatfield customer fulfilment centre.

E-tailer Amazon has revealed a 9% increase in profit for the fourth quarter of 2008. Its net profit totalled $225m (£157m) for the period. Amazon UK is set to shake up the grocery e-tail market with the launch of an online food offer. A launch date has yet to be decided but industry sources said it is likely to be this year.

Electricals retailer Comet has told suppliers they must pay up to £15,400 to have each of their product lines displayed on the shopfloor. The company has blamed the action on a tough retail market, and said the company would be asking for a listing fee for every line stocked in stores, plus a 2% discount on invoices and a 0.5% fee for sales and stock data.

Musgrave, which own Londis and Budgens stores, has launched around 50 new lines under its Good Value label.

Brand owners

Drinks specialist Britvic reported total revenue of £218.6m for the 12 weeks to 21 December 2008, an increase of 2% on 2007. GB and International revenues grew by 4% in the period.

Unilever has acquired the global TIGI professional hair product business for $411.5m. TIGI will continue to operate as a stand-alone business unit, it said.

Robert Wiseman Dairies has confirmed that from 2 March, it will start to supply to an additional 172 Co-op stores in the south-east.

Ryvita has redesigned its packaging in a bid to promote the “honest goodness” of its products.

Men’s natural skincare brand Bulldog has signed a deal with comedian David Mitchell and online men’s magazine Channel Flip to create a branded weekly online show. David Mitchell’s Soap Box will be available for free download in the form of a videocast from 6 February.

Premier Foods has been rapped over claims its relaunched Hovis bread is healthier than a bowl of cereal. The Advertising Standards Authority has banned Premier from claiming that “just two slices provides you with 33% more wholegrain than a bowl of cereal”. It follows a complaint from rival baker Warburtons.

Snack giant Walkers is to re-launch its Sensations brand as its seeks to increase its market share in the premium crisp sector. Walkers will reduce the pack size of packs by 15g to 160g.

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