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

Hello and good day!
Two billion-dollar deals are dominating the retail headlines today - as predicted, Metro finally confirmed Hudson's Bay to be the new owner of its department store chain Kaufhof and Target's retail pharmacies and in-store clinics operations change hands to CVS Health. Enjoy reading about those majors and other updates!

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Asia & Australia
Alibaba further expands its scope   Taking on US's Netflix and HBO, the Chinese online giant is planning on launching an online video streaming service in China. The company has also elected yet another partner to collaborate with - Brightpearl, a multi-channel retail management system with head offices in the UK. ▪
Snapdeal strengthens mobile commerce     The Indian e-retailer continues its shopping spree and acquires Letsgomo Labs, which works on end-to-end mobility solutions, for an undisclosed sum. ▪
Japanese brands target Chinese market   The fast-expanding Chinese online market keeps attracting Japanese retailers. Home products manufacturer Iris Ohyama and Panasonic invest heavily. ▪
Woolworths changes to in-house marketing  The Australian grocer has dumped agency Torch Media after 10 years in favour of in-house marketing through a new business, Woolworths Media Hub. ▪
 Europe
Kaufhof stores go to Hudson's Bay   The Canadian parent of Saks Fifth Avenue and Lord & Taylor, Hudson’s Bay, agreed to buy Metro AG’s Kaufhof stores for EUR 2.83 billion including net debt and other liabilities. The deal serves as a platform for further growth beyond the retailer's North-American base. ▪
UK retailers face challenges   After announcing a 22.5% drop in pre-tax profits, the major UK wine retailer Majestic Wine has cut its store estate expansion plans (paywall) and is working on revamping its stores +++ According to Moody's, Tesco will need to raise more than GBP 5 billion to reduce the pressure on its overstretched balance sheet. ▪
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Amazon opens distribution center   The online giant has announced to open a distribution center (paywall) in North-Eastern England. As reported on Friday, Europe has its challenges for the online giant resulting from a warning from the EU competition commissioner. ▪
USA
Target sells operations to CVS Health   American retailer and health care company CVS Health has sealed the USD 1.9 billion deal to acquire and operate Target's retail pharmacies and in-store clinics. In an interview on a Target-own platform, Chairman and CEO Brian Cornell explains the deal in depth. ▪
Companies launching on stock market   Extreme-value retailer Ollie’s Bargain Outlet Holdings has filed for an initial public offering on Monday. Canada's largest mattress retailer Sleep Country Canada is aiming to return to the stock market in the coming months, seven years after the company was taken private by two investment firms. ▪
Unions claim A&P is for sale   According to a statement issued by labour unions representing workers at A&P and its banner companies, the retailer is actively seeking buyers and has received interest from several potential purchasers. However, the company would not confirm said plans. ▪
africa
Massmart welcomes investigation   The South-African subsidiary of US Walmart welcomed the competition watchdog's launch of the first market inquiry in the retail sector on Friday. After a ten-year wait, Massmart finally made its entry in Kenya a few weeks ago. Last week, the company announced a shift in its investment focus towards small manufacturers. ▪
Kenyan online platform flourishes   Kaymu, an online shopping platform launched in Kenya eight months ago, has been growing its website traffic constantly since and is expected to 'take e-commerce in Kenya to the next level'. ▪
Botwana implements trade regulations   The Botswanian government has brought forward a policy for chain stores and other foreign-owned companies to partner with locals if they are to sell goods which are reserved for locals. ▪

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