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

It is an age of globalisation and in today's issue you can find out about retailers boldly venturing into new territory, away from the mother country and often advancing onto other continents altogether.  At the other end of those developments, Groupon India emancipates from its parent in the US and rebrands with the help of locals as Nearbuy. While online giant Google surprises with a brand-new operating structure. Enjoy. 

Alibaba to buy share in brick-and-mortar retailer   In its biggest deal yet, the Chinese giant will be buying a 19.9% stake in Chinese home appliance and electronics retailer Suning for US$ 4.6 billion. The deal will make Alibaba second-largest shareholder in Suning +++ In Africa, the e-commerce powerhouse upgrades its counterfeit reporting system. ▪
Direct sellers push in China   In another Chinese investment, China’s largest online direct sales company will be purchasing a 10% stake in Yonghui Superstores, a leading supermarket operator in the country, for US$700 million +++ After a year of testing online sales models, US direct selling retailer Amway is planning to make a foray into the Chinese market. ▪
US global players in India   Chicago-based parent Groupon will no longer hold the majority stake, when its Indian arm rebrands as 'Nearbuy' with the help of one of the most prolific startup investors in the country, Sequoia Capital +++ Facebook will be launching a shopping festival on the occasion of Hindu festival Raksha Bandhan, driving traffic to the specially created shopping site. ▪
Amazon Fresh on the UK's horizon   The etailer's 10-year lease on a former Tesco warehouse in Surrey is regarded as a signal that the company's grocery service Amazon Fresh will soon expand into Britain, putting even more pressure on the stricken supermarkets. ▪
Major Nisa retailer moves to One Stop   Independent retailer Wilson Retail is moving its entire nine-store estate from Nisa to One Stop, becoming the first group to join the franchise operation run by the Tesco-owned convenience store chain. ▪
Supermarket strategies and results   German discounter Lidl dares its competitors in Croatia with a 'same price guarantee' +++ Edeka Südwest has introduced an online store offering approximately 8,000 non-food items in Germany +++ Irish food retailer Musgrave Group could diminish its losses in the financial year 2014 +++ Portuguese corporate group Jerónimo Martins reports positive results in Portugal and Poland. ▪
USA, Canada & Latin America
Google becomes Alphabet   In a surprise move, the online giant has given itself a new operating structure. Under the umbrella of its new holding company Alphabet, the company will pool its diverse activities (paywall) such as self-driving cars and other experimental ventures. The Google unit will consist of the core search engine business as well as Google Maps and Youtube.   ▪
Costco prepares market entry in France   The US warehouse club is poised to begin building its first store in France, which could possibly open as early as next spring. ▪
Target's hopes to please its customers   The retail chain is going interactive on the pages of Vogue’s September issue, where it will run an advertising campaign that utilises visual-recognition technology +++ Feedback and suggestions from customers led Target to the decision to remove gender-based signage in several departments. ▪
Extra rebrands under Circle K   In an agreement with Comercializadora Círculo CCK, Canadian convenience store Alimentation Couche-Tard has announced to rebrand Extra branded stores in Mexico under the Circle K banner. ▪
Developments to Watch
Agricultural products sought after in Africa    Population growth, urbanisation, economic growth and changing diets in Africa all indicate that the demand for agricultural products on the continent will be rising considerably. ▪
Supermarkets take on role as manufacturer   A trend of supermarkets taking up food manufacturing in their fight to gain a competitive edge over the limited range discounters, would imply high risks, according to a business recovery specialist. ▪
Games perform strong   Although statistics continue to see sales in the physical entertainment sector decline, some appraise the deceleration of the decline to 3% as a positive sign, even a 'boom' ▪

If this newsletter was forwarded to you, subscribe here!
For questions or comments please contact us here

To advertise in Retail Update click here

RetailUpdate is a product delivered to you by