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

One of the main contestants in the price war Down Under is an old acquaintance from the sieges fought on the British Isles - German discount giant Aldi. But US discounter Costco too, plays its part in putting a threat to the established supermarkets in Australia. Find out about the grocery battlefields in the Southern hemisphere and more in today's issue.

ASia & Australia
Australian supermarket competition intensifies    Overseas discounters' strategies threaten established market leaders Coles and Woolworths. As Aldi and Costco expand, shoppers are to be expected to be the winners of the price war. Meanwhile, Woolworths has released a new advertising campaign, which emphasises low prices.  ▪
Alibaba casts its net wide   The Chinese powerhouse has launched its own online payment system, Alipay, in Germany and expects expansion to more European countries to follow soon. Alibaba founder Jack Ma has been appointed as business advisor to British Prime Minister David Cameron. The e-tail giant has great expectations for its upcoming 'Global Shopping Festival' on 11 November.   ▪
Valuation obstacle in Jabong sale   Potential buyers of the Indian fashion e-tailer Jabong, a venture of German Rocket Internet, have opted out of acquisition talks due to valuation mismatch. ▪
Before the acquisition, after the sale   Following the approval of the Competition and Markets Authority, British Dairy Crest will complete the sale of its dairies division for GBP 80 million to German dairy product giant Müller in December +++  In its first financial report since selling the Galeria Kaufhof department stores, German retailer Metro AG reported results that met analysts’ estimates. ▪
New troubles for Tesco   Its new campaign 'Brand Guarantee' is expected to cause troubles as the grocer is to come under pressure from the advertising watchdog. Meanwhile, Tesco has started its major new ad campaign 'Every little helps'. Competitor Asda is backing away from plans for its click-and-collect sites.  ▪
Revenues rise thanks to price wars   Aimia Coalition, the company behind the British loyalty card scheme Nectar, reports a rise of revenues by 4% to GBP 300 million from the use of Nectar Cards.  ▪
'Fake reviews' taken to court   Amazon has filed a lawsuit in the US against more than 1,000 unidentified people who used services online marketplace Fiverr to advertise their fake reviews services +++ Jay Carney, senior vice president of global corporate affairs, replies to an unflattering New York Times article about the retailer's corporate culture +++ A new report sees Amazon's fulfillment centre network far ahead of other retailers. ▪
Walmart's unfair practices   After a shock earnings warning from the retailer last week, Walmart's suppliers are facing being squeezed for price cuts and cost sharing even more. Investigations of the US giant's Indian and Mexican operations have confirmed bribery ▪
Hungry for the deal   Shares surged upon the news that broadcaster and businesswoman Oprah Winfrey will buy 10% of Weight Watchers and join its board +++ After announcing the end of its relationship with Target, licensed apparel company Cherokee Global Brand has acquired franchise retail chain Flip Flop Shops. ▪
Click and collect at the post office   Kenyan e-commerce firm KiliMall signed a deal with the Postal Corporation of Kenya to enable online shoppers to use over 600 post offices countrywide as collection points and order placement branches. ▪
Foreign traders not welcome   In Ghana, local traders have revived threats to eject traders from neighbouring states and other foreign nationals operating in the country's retail sector. ▪
Service sector dominant   According to latest data from UN Conference on Trade and Development, the services sector will become the main engine of growth in sub-Saharan Africa as agricultural exports continue to decline and the manufacturing sector remains stagnant. ▪

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