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

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E-commerce giant Alibaba misses expectations, M&S loses another manager and Macy’s is set to explore e-commerce opportunities in China. Also, how are smartphones affecting retail? These are just some of the stories featured in today’s RetailUpdate.

Asia & australia
Alibaba misses expectations   Yesterday, commentators waited pessimistically for the e-commerce giant’s second-quarter results. So, how did they fare? Well, with a reported second-quarter revenue of US$ 3.26 million, the result was below analysts’ expectations. ▪
Xiaomi partners with Foxconn   The world’s fourth-largest smartphone distributor has teamed up with Taiwan-based tech giant Foxconn, to assemble phones in India. The move will reduce production costs and enable Xiaomi to get a larger share of the world’s third-largest smartphone market +++ India’s smartphone market is expected to overtake the US by 2017. ▪
M & S loses another senior manager   It’s been less than a month since the shock departure of Head of Merchandise, John Dixon. Now, the British retailer is coming to terms with another exit: Womenswear Director, Frances Russell. ▪
The Sainsbury’s store that wasn’t meant to be   Despite having built an 80,000-square-foot store at Middlehaven , Middlesbrough, the retail giant has announced it won’t be moving in. Sainsbury's say that changing shopping patterns have made the site “no longer viable”. ▪
Tesco struggles to sell Dunnhumby   The embattled British retailer has had to drastically scale back ambitions for the sale of its data analysis company Dunnhumby. The business behind Tesco’s Clubcard was put up for sale earlier this year with a price tag of GBP 2 billion. Now bidders are reportedly considering offering GBP 700 million – or even less. ▪
Target to trial food deliveries   Food delivery: Amazon and Walmart are trying it, and now Target, too, is giving it a go. Without providing details, chief marketing officer, Jeff Jones, says a trial is coming “in the near future”. Meanwhile, Target has elected Donald R. Knauss, former executive chairman of the Clorox Company, and Robert L. Edwards, former CEO of Safeway Inc., as new directors to their board. ▪
Macy’s to explore online opportunities in China   Having missed analysts’ expectations for two straight quarters, the US department store chain is eying opportunities in China by selling online. As part of the joint venture with Hong Kong-based Fung Retailing Ltd., Macy’s will become the first US department store to join Alibaba Group’s Tmall Global. Commentators, however, wonder if Macy’s could get caught up in a currency war. ▪
Kraft Heinz axes 2500 jobs   The newly merged company says it is cutting about 2500 jobs as part of its plan to reduce costs. Executives say they expect to save US$ 1.5 billion in annual costs by 2017. ▪
technology trends
Smartphones and retail   A recent survey by RetailMeNot found only 30% of consumers use retail applications to buy products. A surprising statistic when you consider that smartphones are fast becoming the preferred method for accessing the internet — even in retail stores. ▪
Don’t be too quick to trash the old tech   It’s no secret that consumers love their devices. Who doesn’t? But despite consumers’ seemingly insatiable appetite for new gadgets, merchants still need to put effort into gaining acceptance of new technology, according to a new survey by First Insights. ▪

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