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

Greetings!
Some unpleasant developments for employees in the UK as well as in the US, where a cost-cutting plan with massive layoffs is expected to be revealed. The title of the world’s most valuable publicly traded company has changed hands, and the British supermarket price battle is being joined by an additional contestant to challenge the discounters. Find out more about those stories and what is happening in other parts of the retail world. Enjoy!

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asia & middle east
Potential overseas   British department store retailer John Lewis plans to open a store in the UAE, in Dubai in spring 2017 +++ Jeans manufacturer Levi Strauss sees strong potential in the Chinese market despite stalling growth+++ Venturing into the West, Flipkart's fashion arm Myntra plans its market entry into the US. ▪
Great plans for Ekart   Flipkart pushes its logistics unit Ekart with a second fund infusion in seven months, preparing to build it into an independent business catering to other companies as well.  ▪
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Belied and surpassed expectations    Contraction continues for the manufacturing sector in China, missing market expectations, while activity in India unexpectedly returned to growth. ▪
europe
Cutting costs and prices   Tesco reviews its pay rates for bank holidays, Sundays, late nights and overtime hours +++ Morrisons has announced it will be reducing prices on more than 1,000 items, and the founder of easyJet, Sir Stelios Haji-Ioannou, has launched easyFoodstore, a discount food store selling everyday groceries for 25p each.   ▪
Cutting jobs   In a second round of redundancies in seven months, UK pharmacy chain Boots will axe between 300 and 350 management jobs +++ The sale of the UK operations of Ben Sherman by Marquee Brands, which has only just bought the brand six months ago, is putting 100 jobs at risk ▪
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Looming deadline   Sainsbury’s formal offer for the Home Retail Group, which is expected to be at the agreed price of GBP 1.3 billion, is due by 5pm today. However, Sainsbury’s could seek an extension to the deadline in order to complete due diligence. ▪
Strengthening their stand  Schwarz Group-owned German hypermarket chain Kaufland has entered a new agreement with the European Marketing Distribution (EMD), incorporating its Eastern European operations into the buying group +++ Norwegian discount supermarket chain Rema 1000 will open 130 new stores in Denmark to compete with rival Netto. ▪
 USA
Some struggle, some succeed   Once Yahoo will have reported its fourth-quarter results today, it is expected to reveal cost-cutting plans that include the shortening of 15 % of its workforce and closing several business units +++ Google's holding company Alphabet surpasses Apple as the world’s most valuable publicly traded company.  ▪
Shaking up the shelves   Grocery store chain Kroger plans to hire a private distributor to oversee distribution of shelf space to alcohol brands, which annoys the big producers. ▪
Filling top positions   Home improvement chain Lowe's appointed Sandra B. Cochran, president and CEO of restaurants and gift store chain Cracker Barrel, to its board of directors +++ Department store chain Macy's created two new corporate titles for Peter Sachse and Justin S. MacFarlane. ▪
Tax topics
Tensions rise   The US have expressed their concerns about the EU Commission to 'disproportionately targeting US companies' with its high-profile tax probes, calling the approach unfair and encroaching on the US government’s right to tax those companies, such as Apple, Starbucks, and Amazon. ▪
Tariff boosts    Egypt has raised tariff rates on a wide range of imports. The new decree affects hundreds of items with customs tariffs raised by as much as 100% on items such as some fruits and nuts, while duties on other goods were increased by 25-50%. ▪

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