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

Season's greetings!
The festive period is in full swing with online shoppers delivering a boost for retailers. Irish dairy giant Glanbia is set to stimulate the job market and Carrefour purchases Billa Romania from German Rewe Group. Meanwhile, Amazon and Ebay are facing a probe over VAT frauds and another Australian company eyes the lucrative Chinese market. Enjoy your read.


Asia & south pacific
Alibaba buys food service   The Chinese online powerhouse has agreed to invest US$ 1.25 billion for a 27.7% stake of domestic food delivery firm Market watchers suggest that the food company, which roughly translates as "Hungry now?" would add to Alibaba’s existing offline capabilities. ▪
Australian ambitions   Just days after it was reported that retailer Woolworths has set its eye on the Chinese market, cattle producer Bindaree Beef will start offering fine cuts of beef online in China +++ Australian drinks giant Casella continues to bolster its premium portfolio of wines by purchasing Brand’s Laira from McWilliam’s Wine Group. ▪
Indian expectations   In the aftermath of the Maggi crisis, Nestlé India is set to increase the consumption of its flagship instant noodles brand eying double digit growth. Meanwhile, Amazon claims to be India's biggest e-tailer in 2015 and traditional supermarket chains are foreced to join the burgeoning e-commerce landscape. ▪
Carrefour gets strong in  Romania   The French retail giant has agreed to acquire Billa Romania from German Rewe Group. The deal includes 86 supermarkets with a total sales area of 83,000 square metres and will make Carrefour the nation's leading supermarket operator. ▪
Metro Italia opens up   The Italian unit of the German wholesale group is testing a new formula that will enable all consumers, and not only B2B enterprises, to make purchases. The “Metro Crù - Il mercato del gusto” concept was introduced recently at a store near Mantua. ▪
Optimism in Ireland   Irish dairy giant Glanbia plans to hire 200 new staff members, 90 of these positions will be Ireland-based, while the rest is spread across Germany, Denmark, the UK, the US, Australia, and New Zealand. Irish retailers are optimstic to see the best Christmas for retail since 2008. ▪
Consumers set new records  Sales on Christmas Day were up 21% on last year, making it the most lucrative day ever for online shopping in Britain, according to data from a web services group PCA Predict. Down Under in Australia, Queensland shoppers are set to put a whopping A$ 3.4 billion through the tills in post-Christmas sales.  ▪
 USA & Canada
A&P wants out of lease   In the final stages of its bankruptcy, the grocery chain has asked the court for permission to reject 52 leases, including 36 on closed stores. If approved, the rejections would send the former A&P, Pathmark and Superfresh stores back to their landlords. ▪
Amazon and Ebay face probe   The US online giants could be forced to pay for VAT fraud associated with small overseas sellers. UK Treasury is looking at 'all possible option'. In other news, Amazon is challenging Netflix with the announcement to produce 16 feature films a year. ▪
Edcon loses directors   Non-executive directors Louis von Zeuner and David Brown have resigned from the Johannesburg-based retail group, whose brands include clothing chain Edgars and newsagents CNA. Edcon is now looking for replacements. ▪
Pioneer invests in bakery unit   Cape Town-based consumer brands giant Pioneer Foods believes new investment in its bakery division could unlock value. The company’s CEO Phil Roux said Pioneer’s short-term priority would be to continue outperforming the industry. ▪

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