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

Hello, dear reader!
Online delivery options remain a big topic - Amazon is expanding its "on-demand" service and Google its express delivery. Walmart attracted attention with its slow e-commerce growth. Over in Britain, supermarkets are stepping up to compete with Aldi and Lidl, while the latter has revealed some information about its expansion strategy for Luxembourg. Enjoy the read and have a relaxed weekend.


Australasia & China
Concern over dairy prices   Continuously falling dairy prices give New Zealand farmers a headache and fuel speculation whether dairy giant Fonterra will be able to meet its farmgate milk price, while competitor Open Country says it's pulling back on investment this year. ▪
Baby food makes profits surge   Australian dairy company A2 Milk has recorded a staggering rise in profit, thanks to the overwhelming sales of its infant formula in China +++ A huge lift in half-year profit was also reported by Tasmania-based organic baby food maker Bellamy. ▪
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Competing in China   Taxi service Uber has admitted that its Chinese unit has lost US$ 1 billion in a year to compete against local rivals. This should alarm tech giant Apple, which decided to enter China's crowded and fiercely competitive mobile payment market yesterday. ▪
europe
Lidl conquers Luxembourg   The German discount powerhouse has revealed some information about its expansion strategy for Luxembourg. The company plans to open 12 more stores. By 2023, Lidl wants to have 19 outlets in the country and is set to invest EUR 100 million. ▪
Tackling discounters   British supermarket operator Asda, which just suffered a drop in sales, has been meeting with suppliers to seek help to compete with discounters. Meanwhile, rival Morrisons is investing GBP 30 million to create a happier shopping experience for customers and staff. ▪
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Strengthening sales forces   French retailer Auchan has extended its deal with Euromadi Iberia. Its Spanish units, Alcampo and Simply, will become full members of the buying organisation +++ German sportswear retailer Adidas has hired former Lululemon CEO Christine Day as an adviser on female-focused retail strategy. ▪
Amazon remains active  The tireless US online giant, which is reportedly quietly expanding its 'on-demand' service in its home market, has announced plans to create 500 jobs in Britain with the construction of a new fulfilment centre in Leicestershire. Over in Milan, Amazon has started to deliver fresh groceries via its Prime Now app. ▪
 usa & canada
Walmart delivers results   Despite spending billions to compete with Amazon, the world’s biggest retailer reported an e-commerce growth of only 8% in the fourth quarter. Its sales outlook caught some investors by surprise.  Nevertheless, more than 1.2 million Walmart employees will get a raise this Saturday. ▪
Google expands with express   The US tech giant is testing a new range of products for its Google Express online delivery service and is partnering with retailers Costco and Whole Foods. The company is also interested in developing a driverless 'autonomous delivery platform'. ▪
Sustainable partnerships   New Seasons Market, a chain of grocery stores in Oregon, has teamed up with seafood sustainability organisation Fishwise to train staff on seafood and to implement its sustainability rating system +++ To grow its online footprint, discount shoe retailer DSW has agreed to purchase e-commerce company Ebuys. ▪
weekend reads
Innovative and reputable retailers   Drugstore chain CVS Health leads the annual ranking of the top-10 most innovative retail companies by consumer publication Fast Company, and the latest Harris Poll Report 2016 points out the different reputational aspects in which retail leaders have excelled. ▪
Aldi versus Woolies   Retail consultant Stuart Bennie compares team member work ethics of the two competitors and thinks that Woolworths staff are friendly and move more slowly, while Aldi staff tend to be hasty and display a thirst for work. ▪

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