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

Asda and parent company, Walmart, have reported weaker-than-expected results with the latter trimming down its forecasted earnings. Better outlooks come from DIY retailer Home Depot, Swiss chocolate maker Lindt & Sprüngli and South African retailer Shoprite. Read about their announcements, staff hiring strategies, management reshuffles and a lot more in today's issue.  

asia & Australia
Aldi hires in Adelaide   The German discounter is looking for staff in Adelaide ahead of its expansion into South Australia as it gears up to open as many as 50 stores from 2016. Aldi is also growing across Western Australia and has just recently signed its first lease with a real estate investment trust in Perth. ▪
Messages from China   Shenzhen-based tech firm Tencent invested US$ 50 million in Kik, a Canadian messaging app provider, giving the company an implied valuation of US$ 1 billion +++ Micky Pant has been named new CEO of Yum Brands' China division as the parent company of KFC, Pizza Hut and Taco Bell works to reverse a sales drop in one of its key markets. ▪
Snapdeal attracts investors    Taiwanese electronics giant Foxconn will invest US$ 200 million in the Indian online marketplace, while e-commerce powerhouse Ebay has sold a portion of its stake. So far, Snapdeal has raised more than US$ 1 billion from investors, including Alibaba.  ▪
Sainsbury's competes online   The British supermarket operator has revamped its website with what it describes as an “omni-channel” approach and has stepped up its battle against Asda with its Brand Match scheme, which allows price comparisons against its rival. ▪
Asda aims to bounce back   Reporting the worst performance in 50 years, Asda boss Andy Clarke insists the supermarket will recover from the 4.7% drop in quarterly sales. He says the supermarket was already seeing “green shoots” in its third quarter. ▪
Lindt & Sprüngli on all-time high   The Swiss chocolate maker has announced above-average sales growth of 17.4%, despite record-high prices for raw materials and a strong Swiss franc. The company achieved organic growth in all regions and has won additional market share in strategically important markets. ▪
usa & canada
Home Depot wins and Walmart trims   Sales exceeded expectations at home-improvement retailer Home Depot, which for analysts is evidence that US-consumers are spending like it’s 2006. Retail competitor Walmart, on the other hand, struggles with a 15.1% decline in second-quarter earnings and has cut expansion plans for its Neighbourhood Market stores.  ▪
Branded stores and an uncertain future   Sport equipment retailer Dick's Sporting Goods is partnering with top brands Nike Air Jordan and Polo Sport to open specialty stores-within-a-store. Meanwhile, clothing company American Apparal warns it may go out of business because its losses are getting too big to manage. ▪
Online expectations   Discount department store retailer Gordmans, which operates 101 brick-and-mortar stores, enters the e-commerce sphere with an extended online assortment +++ Carolina-based grocery store chain Lowes Foods works with provider Unata to deliver enhanced omni-channel services at its stores. ▪
Target and Visa reach deal  The US retailer and the financial service company confirmed that they have struck a deal to pay its card issuers up to U$ 67 million to settle the retailer's 2013 data breach. An earlier settlement with Mastercard fell through because it was not accepted by enough of its card issuers. ▪
Shoprite to change shopping habits   Africa’s biggest retailer plans to open nearly twice as many stores this year as in 2014. Shoprite looks at growth in markets such as Nigeria and Angola where it aims to change the shopping habits of the rising middle class. The retailer reported a 10.8% rise in full-year earnings. ▪
Google teams up with Infinix   The tech giant is introducing a low-priced smartphone, made by device maker Infinix, in six African countries. It will be sold in stores in Nigeria and offered by online retailer Jumia in five other countries. ▪

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