News

Menasha acquires Canadian packaging company

BY DSN STAFF

NEENAH, Wisc. — Menasha Corporation has acquired Canadian packaging company Portable Packaging Solutions. The terms of the transaction were not disclosed, but the newly acquired business will become part of Menasha’s Canadian packaging subsidiary. It is Menasha’s second Canadian acquisition this year. 
 
“Acquiring an additional company in Canada that is well-aligned with our values and business model provides Menasha Packaging with additional capabilities and resources to meet the growing needs of CPG customers in North America,” Menasha’s president and CEO Jim Kotek said. 
 
Portable Packaging Systems has been family owned since it was founded in 1991 in Mississauga, Ontario and has about 100 full-time employees. It provides structural and creative design services, as well promotional, materials sourcing and fulfillment services. 
 
“Portable Packaging’s structural and graphic design expertise, along with its integrated merchandising supply chain model, complement Menasha Packaging’s platform and strengthens our integrated materials and services business model in Canada,” Menasha Packaging Company’s president, Mike Waite, said.
keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

Which area of the industry do you think Amazon’s entry would shake up the most?
News

Dollar General Q1 sales up 8.8%

BY Michael Johnsen

GOODLETTSVILLE, Tenn. — Dollar General on Tuesday reported net sales of $4.9 billion for the 13 weeks ended May 1, up 8.8%. 
 
“In the first quarter, we made solid progress implementing our key initiatives with balanced growth across both consumables and non-consumable categories," stated Rick Dreiling, chairman and CEO of Dollar General. "Compared to the first quarter of 2014, same-store sales improved 3.7% and gross margin expanded by 45 basis points, contributing to diluted EPS growth of 17%. Looking ahead, we are confirming our full year guidance based on our results for the first quarter,” he said. “Dollar General is well-positioned to win with our customers as we continue to invest in growing our business. We are executing on our plan to deliver increased value to our shareholders by capitalizing on growth opportunities and returning capital to our shareholders through share repurchases and anticipated regular quarterly dividends.”
 
This will be the last quarterly call directed by Dreiling, as Dollar General promoted Todd Vasos from COO to CEO effective June 3. Dreiling will remain on the board for the remainder of his term and will serve as senior advisor and chairman of the board through January 29, 2016. 
 
The company’s net income was $253 million, or $0.84 per diluted share, in the 2015 first quarter, compared to net income of $222 million, or $0.72 per diluted share, in the 2014 first quarter.
 
Same-store sales increases were balanced across both consumable and non-consumable categories. In consumables, a higher volume of tobacco products, perishables, health care items and candy and snacks drove the growth in same-store sales. Same-store sales growth within non-consumables was strongest in apparel with seasonal and home also posting solid gains.
 
Gross profit, as a percentage of sales, was 30.5% in the 2015 first quarter, an increase of 45 basis points from the 2014 first quarter. The majority of the gross profit rate increase was due to higher initial inventory markups, an improved inventory shrink rate and lower transportation costs.
 
Total additions to property and equipment in the 2015 first quarter were $100 million, including: $30 million for improvements, upgrades, remodels and relocations of existing stores; $27 million related to new leased stores, primarily for leasehold improvements, fixtures and equipment; $24 million for distribution and transportation-related capital expenditures; $10 million for stores built by the Company; and $8 million for information systems upgrades and technology-related projects. During the 2015 first quarter, the company opened 219 new stores.
 
 
For the 2015 fiscal year, the company expects total sales to increase 8% to 9% over the 2014 fiscal year, with same-store sales expected to increase 3% to 3.5%. 
 
Capital expenditures are expected to be in the range of $500 million to $550 million in 2015. Dollar General plans to open approximately 730 new stores in 2015, or 6% square footage growth, and relocate or remodel 875 stores. To date, the company is on track with its pipeline development to accelerate new store openings to 7% square footage growth in 2016.
keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

Which area of the industry do you think Amazon’s entry would shake up the most?
News

A.T. Kearney: China is top emerging retail market

BY Marianne Wilson

CHICAGO — Retailers looking for opportunities in emerging markets should look East, particularly to China, which ranks as the top country in A.T. Kearney’s annual Global Retail Development Index (GRDI). China, which returns to number one in the GRDI rankings for the first time since 2010, is expected to surpass the United States as the world's largest retail market by 2018.

Despite having the lowest GDP growth in more than 20 years, China’s performance was unparalleled relative to other developing markets. Its retail growth was an impressive 11.6% in 2014.  China's retail market is expected to grow to $8 trillion — double the size of the U.S. market — by 2022, according to the report, which ranks 30 countries in emerging markets via two dozen “retail-specific” and “macroeconomic” metrics. (

"As a result of turbulence in the Middle East, Latin America, and Russia, the past year has seen a more cautious approach to international expansion into some developing markets,” said Mike Moriarty, A.T. Kearney partner and co-author of the GRDI.

“However, retailers are taking a longer-term view of emerging markets, with fewer exits, and more targeted investments in areas of growth."

Overall, Asia is a regional winner in the 2015 GRDI, outpacing other regions despite a slowdown in growth, according to the report.  While China came out on top, small countries, including Mongolia (reemerging at 5th) and Malaysia (9th for the second year in a row), also cracked the top 10. India also rises in the rankings, benefiting from economic stability and regulatory reforms aimed at improving ease of doing business, although restrictions on multi-brand retail remain.

In addition, e-commerce continues to grow rapidly, with Asia's market size ($525 billion) now exceeding that of North America ($483 billion). As Internet penetration expands and online offerings improve, Asia's e-commerce retail sales could grow as much as 25 percent annually. The online channel will continue to be a major focus for retailers in the region in the coming years.

Here is a look at how other regions fared in the rankings:

Latin America: Latin America as a whole once again has a prominent position in the GRDI, with three countries in the top 10. However, the region has begun trending downward in the rankings, and regional GDP growth sank to roughly 1.3% in 2014 amid concerns over deep-rooted structural problems since the end of the commodities boom.

Middle East: In the past year, the Middle East has faced substantial economic and political upheaval, and the ranking drops in this year's GRDI reflect the varied environment: market saturation (the United Arab Emirates), increased country risk (Jordan), and GDP slowdown from falling oil prices (Kuwait).

Qatar makes an impressive GRDI debut, in 4th place, highest in the Middle East behind a stable economy, high GDP per capita, and high levels of retail spending. With population growth and an increasing number of expats, Qatar is no longer a market to ignore, the report advises.

Sub-Saharan Africa: Sub-Saharan Africa is a region of massive potential. Three countries (Botswana, Nigeria, and Angola) are ranked in this year's GRDI, and three more (Zambia, Namibia, and Ghana) are on the verge of breaking into the top 30 in the near future. The region presents exciting opportunities that are just starting to open up, the report finds, supported by rising household incomes, fast urbanization, and a growing middle class.

Central Asia and Eastern Europe: This region's top performers in the GRDI are its small gems — Georgia, Armenia, and Kazakhstan — whose unsaturated retail environments are attractive opportunities for international players. Azerbaijan has become a luxury hot spot as more companies seek to tap into the country's oil-driven wealth.

Russia, which has the world's sixth-largest GDP, plunges in the rankings behind worsening economic conditions and political tension, yet it remains too big to ignore, according to the study.

chart

Click here to read the full 2015 GRDI report.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

Which area of the industry do you think Amazon’s entry would shake up the most?