Today Primark opened the doors to its largest ever store.  At 161,000 sq ft over five floors, the store in Birmingham officially entered the record books as the world's largest fashion retail store.

More than fashion

The UK's 187th Primark offers shoppers much more than just the latest fashions at affordable prices.  The store includes a hair and beauty salon and barber shop concessions in partnership with renowned experts, as well as three restaurants, two coffee kiosks and a custom t-shirt printing lab.  One of the new restaurants is a Disney cafe featuring interactive tables for children, whilst 'The Mezz' offers on-trend food including hand-stretched pizzas, fresh salad and burritos, and Primarket Cafe provides all day coffee shop options.

Increasingly retailers like Primark are using retail spaces in creative ways to offer shoppers experiences that cannot be replicated online.  Foodservice plays an important part in this development.  Recent years have seen Next partner with celebrity chef Gino D'Acampo to open an Italian restaurant in the brand's Manchester store, whilst H&M launched the instagram-friendly It's Pleat cafe in four international locations, including London's Westfield shopping centre.  In their latest store, Primark have partnered with contract caterer Aramark to develop the food offering and have employed a general manager to oversee operations across the three restaurants.

But it's not all about food. In-store services, like the beauty salon and barber shop in Primark's new store, are something we're seeing other retailers, notably drugstore operators, use to drive footfall. They offer a point of difference versus online and in a massive experiential store like this fit well with younger shoppers’ desire to play and experiment in beauty too.

(Retail Analysis subscribers can see more examples of  how retail stores are exploring health and beauty here)

Succeeding on the high street

As big names such as BHS, House of Fraser and Debenhams hit the headlines for their decline, Primark appears to be going from strength to strength. Its model is different to other UK fashion retailers and department stores: it spends nothing on advertising and has no online presence.  However its positioning as 'fast fashion' is clear and shoppers know what they are going to get from its products . By ensuring its customers have to go in-store to buy, the brand benefits from impulse purchases.  Whereas other department stores have been criticised for lacking investment and innovation, Primark's latest store shows that it is willing to invest in 'experience retail' to offer shoppers more reasons to visit, and stay, in its stores.

Reitangruppen has reported its 2018 results, with REMA 1000 discount turnover increasing by 4.8% to €7.3bn, while Reitan Convenience turnover increased by 1.4% to €1.7bn.

REMA 1000 turnover increased by 4.8% to NOK 70.2bn (€7.3bn)

REMA 1000 turnover including franchises increased by 4.8% to NOK 70.2bn (€7.3bn). Operating profit increased by NOK 243m to NOK 1.9bn (€197.9m), which represents a 0.2% increase in operating margin to 2.8%.

Norway: revenue growth of 4.4%

In Norway, which accounts for most of the REMA 1000 business, revenue increased by 4.4%, while like-for-like revenue increased by 1.6%.

Denmark: revenue growth of 11%

Meanwhile in Denmark, REMA 1000 saw revenue increase by 11% to DKK 15,407m (€2.1bn), while like-for-like revenue increased by 4.9%

Henrik Burkal, CEO of REMA 1000 Denmark has partly REMA’s success to the fact that all stores are operated as franchisees, with each franchisee only able to run one store.

REMA 1000 also launched over 20 new stores in Denmark in 2018, bringing its total store count to 326. This year, the discounter plans to launch 15 to 20 new stores in the country, with it seeing the potential for 400 stores in the future.

REMA 1000 2018 highlights: new DC, store data system and chicken factory

During the year, the discounter has established new distribution centres, a new store data system and a new chicken factory.

Reitan Convenience: turnover increased by 1.4% to NOK 16.1bn (€1.7bn)

Reitangruppen’s convenience channel, Reitan Convenience has reported its results for 2018, where turnover increased by 1.4% to NOK 16.1bn (€1.7bn), alongside operating profit of NOK 409m (€42.6m).

Norway: turnover declined by 0.9%...

Most formats saw turnover decline, with Narvesen kiosk sales declining by 1.9% to NOK 2,280m (€237.5m). Meanwhile, 7-Eleven City store turnover declined by 4.2% to NOK 705m (€73.4m) and 7-Eleven forecourts saw turnover decline by 0.3% to NOK 820m (€85.4m).

Meanwhile the Northland concept, which operates just five stores saw turnover increase by 41% to NOK 109m (€11.4m).

…While in Sweden turnover increased by 2.2%

Most formats saw turnover increase, with Pressbyrån kiosk sales increasing by 3.8% to NOK 2,862m (€298.1m). 7-Eleven City store turnover also increased by 5.5% to NOK 861m (€89.7m).

…In Finland turnover increased by 1.5%

The retailer’s R-Kioski banner saw turnover increase by 1.5% to NOK 3,001m (€312.6m), while comparable sales turnover increased by 5.0%

…In Denmark turnover increased by 0.6%

Denmark accounts for the highest share of 7-Eleven sales in the Nordics, including 7-Eleven City stores and 7-Eleven gas stations. At the 7-Eleven City stores, turnover increased by 1.2% to NOK 2,008m (€209.1m), while at 7-Eleven gas stations, turnover declined by 1.0% to NOK 750m (€78.1m).

Earlier this year, 7-Eleven Denmark invited us to see a new concept convenience store in Copenhagen. IGD Retail Analysis subscribers can access our exclusive store visit presentation here.

Source: IGD Research

Smaller Baltic markets reported strongest growth

• In Latvia, Narvesen store turnover increased by 6.2% to NOK 616m (€64.2m), while like-for-like sales increased by 6.5%
• In Lithuania, Reitan Convenience store turnover increased by 14.9% to NOK to NOK 339m (€35.3m), while like-for-like sales increased by 12.3%
• In Estonia, R-kiosk store turnover increased by 5.3% to NOK 281m (€29.3m), while like-food-like sales increased by 2.9%

Reitan Convenience highlights: new stores, coffee shop acquisition

During 2018 Reitan Convenience established around 50 new stores and acquired the Baltic coffee shop chain Caffeine, which has 60 stores in the region.

2019 will see the introduction of a new YX 7-Eleven forecourt concept

This year, Reitangruppen will introduce a new forecourt concept under the YX 7-Eleven.

IGD Retail Analysis subscribers can learn more about 'Global best practice in forecourts' including what's shaping development and how the format could innovate in the future.

Source: IGD Research

Want to keep up to date with the latest news from Reitangruppen and other leading grocery retailers? Sign up for IGD’s free Retail Analysis international newsletter.

We round up the latest news from the Netherlands where Albert Heijn has selected three winners for Product Pitch 2019, while Jumbo is launching over 100 new fresh produce, food-to-go and prepared meal solutions. In other news, Albert Heijn is launching a new podcast series, ‘On our Plate’ about food sourcing.

1. Albert Heijn selects three winners for Product Pitch 2019…

Albert Heijn has selected three winners for its Product Pitch 2019, an initiative that aims ‘to stimulate entrepreneurship and discover innovative products’. The campaign has been running for the past four years. This year’s winners include Grandma’s Soup, Solt and Gigi’s Gelato. 

Grandma's Soup is a soup brand where elderly and young people come together to make fresh soup. The soup is made in Amsterdam and Groningen from leftover products that may have otherwise been wasted. The brand and the other winners will now be stocked in Albert Heijn stores.

A press release from the retailer highlighted that the founder wanted ‘to make a positive contribution to two social problems, namely the prevention of loneliness among the elderly and the prevention of food waste’.

One of the other winners is Solt, which provide sustainably sourced seafood and related products including Dutch shrimp and shrimp soup. Meanwhile Gigi’s Gelato are vegan ice creams made from fresh produce.

2. … As Jumbo launches 100 new convenient products in health drive

In related news, as part of Jumbo’s wider ambitions to inspire shoppers to eat more fruit and vegetables, it is launching 100+ new products across fresh produce, food-to-go and prepared meal solutions. These include ‘Buddha bowls to carrot noodles, cauliflower rice and snack salads’ alongside salad toppers, sous-vide cooked vegetables and pumpkin lasagne. Alongside this, it will run a pick and mix promotion on prepared vegetables to promote affordability.

Source: Jumbo

Other innovations include a ‘Fruit Snacking’ display, as Jumbo looks to provide alternative snacks to sweets. These will include ‘vegan fruit gums, fruit strips and fruit chips …. Based entirely on dried fruit and do not contain any fragrances, colours or added sugars’.

Olaf de Boer, Executive Director Buying & Merchandising said, ‘At Jumbo we always strive to make tasty and healthy food as easy as possible for our customers. With our updated and varied fruit and vegetable assortment, we want to help and inspire them to make informed and healthier choices. Whether it is snack vegetables, salads or cooking vegetables, there is something for everyone at every moment of the day. We have also tackled the packaging of the salads, in addition to making them more sustainable, customers can now see at a glance which ingredients are in them and what the percentage of vegetable intake is’.

3. ... And Albert Heijn launches ‘On our plate’ podcast about food sourcing

In other news, Albert Heijn has launched a new five-part podcast, ‘On our plate’, as the retailer highlights where food comes from and the future of food production.

The series is hosted by presenter Justin Verkijk who will visit different experts, farmers and producers to answer key questions about food sourcing. The first episode (available April 11th) focuses on organic food, while subsequent episodes have different themes.

More widely, this is part of Albert Heijn’s wider ‘ambition to make all fresh chains fully transparent by 2025’.

Elsewhere, other European retailers including Norway's NorgesGruppen have also run podcasts previously.

Keep up to date with the latest developments from leading global grocery retailers including Ahold Delhaize and Jumbo by signing up to IGD’s free Retail Analysis international newsletter.