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Retail Update - powered by LebensmittelZeitung

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Price-cutting strategies are continuing in Britain with Co-operative Food introducing permanent discounts on more than 100 fresh produce lines and Asda cutting its milk prices, following Sainsbury's and Tesco. Over in the US, American Apparel fights slumping sales and Amazon faces a trademark lawsuit while Procter & Gamble could settle Californian accusations.

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asia & australia
Aeon interested in Tesco Malaysia    Japan's largest retailer is interested in acquiring the Malaysian operations of Britain's largest retailer, valued at about US$ 1.4 billion. Buying Tesco's operations would make Aeon Malaysia's biggest hypermarkets group. The Japanese retailer has 28 hypermarkets in the country and plans to open 100 more stores.  ▪
Samsung expects profit drop   The South Korean tech giant forecasts a profit fall and estimates its second quarter operating profit at US$ 6.1 billion. This comes after sales of its newest flagship smartphone failed to meet expectations. ▪
Flipkart goes app only    After fashion e-tailer Myntra switched to an app-only strategy, parent company, Flipkart, has also decided to shut down its website. The move has divided its users with the vast majority not approving; however, analysts see it as a 'trillion-dollar-opportunity'. ▪
Coles catches up  Woolworths has retained its title as Australia’s leading retailer of fine food products, but main rival Coles gains ground by taking a bigger slice of the delicatessen market, according to latest data from Roy Morgan Research. ▪
  europe
Price-cut for milk and veges   Walmart-daughter, Asda, has followed Sainsbury ’s and Tesco in cutting the price of milk while Co-operative Food claims its fruit and veg price cuts have driven almost 10% sales growth. The retailer has introduced permanent discounts on more than 100 fresh produce lines and also plans to open up to 50 new convenience stores (paywall) in the London area.  ▪
M&S suffers setback   British retailer Marks & Spencer reported a dip in first-quarter underlying sales in its fashion business after having faced a “challenging and promotional” time. Meanwhile, UK’s largest online-only fashion retailer, Asos, recorded a 20% increase in sales for the four months to 30 June. ▪
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Britain plans to increase Sunday shopping  The British government has announced plans to allow shops to open longer on Sundays to compete with online shopping and global tourist destinations like Paris and New York.  ▪
 usa & canada
Amazon and P&G in lawsuits   While online giant Amazon faces a trademark lawsuit brought by a watchmaker which says the retailer’s search results can cause confusion, consumer good giant Procter & Gamble has agreed to change packaging for some Olay products to settle accusations in California that it misled consumers. ▪
Partnerships and payment services   A&P has partnered with 30 local farms to provide seasonal produce to its A&P, Food Basics, Pathmark, Superfresh, The Food Emporium and Waldbaum’s banners. Meanwhile, convenience store operator 7-Eleven is making sure that customers always have access to cash through an agreement with Financial Consulting & Trading International to become its new ATM provider. ▪
American Apparel cuts costs   The Los Angeles-based clothing chain, which is embroiled in a legal battle with its former founder and CEO, Dov Charney, is axing stores and jobs as part of a US$ 30-million cost-cutting initiative to fight slumping sales. The company has 239 stores and 10,000 employees. ▪
africa
Uchumi unveils recovery plan   Kenyan retail chain Uchumi, which also has stores in Uganda and Tanzania, has announced radical changes to its operations, which include closing down several outlets. In a move to streamline its supply chain, the retailer will source directly from manufacturers.  ▪
Competition watchdog inquires in SA   The Congress of South African Trade Unions welcomes the launch of the Competition Commission's inquiry into the grocery sector retail market, which is characterised by high levels of concentration and dominated by two firms: Shoprite and Pick ‘n Pay. ▪

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