Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung

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Some giants are growing even greater still - Aldi ventures further South and West in Australia, online majors Alibaba and Amazon broaden their services profiles, and newly merged Kraft Heinz might be incorporating yet another company. On the other end of the growth chart, Tesco is starting to sell off land, which had been planned to be used for new supermarkets. Enjoy the read!


Asia & Australia
Aldi Australia ventures South   The discount supermarket retailer has begun construction of its distribution centre in South Australia as it prepares to open up 50 stores across the state, the first one to be completed in around 6 months. In October 2014, Aldi had announced to invest AU$ 700 million to build two distribution centres and 120 stores across the states of South Australia and Western Australia. ▪
Alibaba signs deal to distribute music   Advancing in its plan to become a digital media empire, the world's largest e-commerce firm has signed a music digital distribution deal with Germany's BMG music rights company. ▪
Warehouse Group to recruit new CEO   Mark Powell, CEO of the largest retail group operating in New Zealand, will be leaving The Warehouse group by the end of this year. Earlier this month, the group posted a disappointing 19% drop in adjusted first-half profit to NZ$ 37.2 million. ▪
WDF share price decreases after Dufry takeover   After Switzerland’s global travel retailer Dufry AG has agreed to buy a majority stake in Italian airport retailer World Duty Free SpA in a EUR 1.3 billion (US$ 1.4 billion) deal, the share price of World Duty Free dropped by over 8% in early trading on the Milan stock exchange on Monday. ▪
Tesco sells land and changes its conduct towards suppliers   In the wake of the accounting scandal and as the groceries watchdog investigates Tesco, the embattled grocer announced that it is radically restructuring the way it works with suppliers. In order to raise funds, Tesco has begun selling off land once earmarked for new supermarkets. +++ Competitor Morrisons has been downgraded by Goldman Sachs. ▪
More possible purchasers of Net-A-Porter   Amazon is not the only player interested in acquiring the London-based luxury fashion business. Italian online fashion retailer Yoox has confirmed merger talks. Such merger would create a EUR 2.5 billion industry leader. ▪
eBay and Argos 'click and drop' together   In an attempt to help sellers cut the cost of delivering items to customers, the online marketplace and the UK high street chain are partnering to trial a new ‘click-and-drop’ scheme. ▪
Amazon introduces Home Services marketplace   The e-commerce giant attempts to expand its empire beyond online shopping and launches Amazon Home Services, a new marketplace for on-demand professional services. The recommendation service debuted on Monday across the US. ▪
Kraft Heinz Co eyes purchase of Philadelphia brand   The newly merged company is reported to be the most likely buyer in a possible sale of Mondelez International Inc.'s Philadelphia cream brand which is estimated to cost around US$ 3 billion. ▪
Findings in online shopping
US holiday online shopping peaked Cyber Monday   E-commerce solutions provider Akamai Technologies analysed the online and mobile traffic activity of global e-tailers in their newly published 2014 Online Holiday Shopping Trends and Traffic report and found Cyber Monday, the Monday after Thanksgiving, to be the most popular shopping day of the season. However, the same day stands for a low when it comes to mobile shopping activity, whereas Thanskgiving itself lists the highest activity. ▪
India scales low in readiness for e-commerce   A new index compiled by the UN trade body UNCTAD for assessing the readiness of countries for electronic commerce ranked India as a low 83 of 130 economies surveyed, mainly due to the share of individuals shopping online. +++ E-tailers in India reviewed their data to find that of those who can access online shopping, shoppers in smaller 'non-metro' cities buy offbeat items online. ▪

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