Global Update

ETNHT• Taking leave: Marks & Spencer, the British food and clothing retailer, has decided to exit the Canadian market after 26 years by closing all 38 of its stores. The company has long struggled to make a profit in Canada, largely due to difficulties in creating economies of scale and familiarizing shoppers with its distinctive brand. Fierce consolidation in the Canadian retail market also contributed to the chain's decision to withdraw from the country. The move raises questions about the future of the chain's two U.S. subsidiaries, Brooks Brothers and Kings Super Markets. Some analysts believe that M&S may have decided to abandon its global strategy following a dramatic drop in sales and profits last fall.



• Carrefour gets a yen: The French hypermarket group will become the first European retailer to enter the Japanese market. The first hypermarket opening is planned for 2000 or 2001, says Daniel Bernard, chief executive, noting that declining land prices in Japan enabled Carrefour to buy several retail sites. Meantime, in Europe, Carrefour announced that it will enter Slovakia, Greece, Switzerland and Hungary within the next two years. This year, the company is opening 40 to 45 new hypermarkets around the world, including 20 in Asia, 11 in Europe and 8 to 9 in Latin America. These openings will help the chain achieve its objective of 500 outlets worldwide by 2001. Despite economic problems in Asia and Latin America, Carrefour expects to increase pre-tax sales by 25% in its 1999 financial year.



• GB Pilot: The Belgian retail giant has opened an experimental supermarket near Brussels to test some of its latest in-store innovations. The new outlet, which opened in March, has a market area at the front of the store in which fruits, vegetables, flowers, fresh-baked bread, pizza and seafood are grouped together. GB says the area was designed to meet growing consumer demand for ready-to-eat and ready-to-heat meals. The consumer solutions theme continues elsewhere in the store where products have been grouped around categories such as breakfast and baby needs. The store also has about 1,400 more items than the traditional GB unit.



• ECR Europe: Efficient Consumer Response continues to gain momentum. This year's annual ECR Europe Conference, held in Paris in April, attracted a record attendance of more than 2,700 delegates. The conference succeeded in putting "consumers" back in the ECR equation with presentations on creating consumer enthusiasm, consumer values in the future and the human side of organizational change. Next year's conference in Turin could attract more than 3000 delegates, it was noted.