Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Wednesday, 04 May 2016

Hello, dear reader!
Exploring strategic alternatives is on the agenda of retailers on both sides of the Atlantic. Online driver service Uber is looking for growth opportunities outside the box from Latin America to China. Taiwan's largest supermarket chain also has ambitious goals, while Reckitt faces trouble in South Korea. Enjoy the read and don't forget to share.

asia & australia
Ambitious targets   Taiwan’s largest supermarket chain, PXmart, wants to double its sales to US$ 6.2 billion by 2020 and increase its store network to 1,000 stores by the end of next year +++ A day after having closed down all its stores, troubled Australian electronics chain Dick Smith has been relaunched online. ▪
Lotte boycotts Reckitt products   South Korean supermarket chain Lotte Mart said it will stop ordering some products from the British maker of household cleaners. Reckitt Benkiser was probed by authorities for selling humidifier disinfectants linked to illnesses and death. The company apologised, but that didn't go down well. ▪
Profit jump for Japan Tobacco   Net income increased about 40% to US$ 1.36 billion for the maker of Camel and Winston in the first three months of the year as smokers stocked up on cigarettes before a planned price hike. Japan Tobacco also gained on the sale of real estate assets. ▪
Fighting discounters   British supermarket operator Morrisons is stepping up its efforts to win back customers from the discounters by slashing the prices of nearly 900 products, while competitor Sainsbury's is set to double the number of click-and-collect sites to a total of 200 as it builds its multi-channel offer. ▪
Co-op sells to Hilco   Manchester-based Co-operative group has agreed to offload 36 former Somerfield stores to the Food Retailer Group, a unit of Hilco Capital, as it reshapes its core convenience estate. Co-op already sold off 91 food stores last year, because they weren't in line with the restructuring plans.  ▪
Conviviality on shopping spree   The parent company of Bargain Booze, which has acquired drinks supplier Matthew Clark seven months ago, is to buy wine distributor and wholesaler Bibendum in a deal worth GBP 60 million. The latter supplies wine, beer and spirits to some 4,000 restaurants, pubs and hotels across the UK. ▪
usa & latin America
Exploring alternatives   Missouri-based retailer Build-A-Bear Workshop is looking for strategic advice to accelerate growth initiatives and enhance shareholder value, which is seen as a sign that the toy company with a market value of around US$ 200 million may seek a buyer. ▪
End of an era   New York-based gourmet grocery chain Fairway, which started 80 years ago as a fresh fruit and veggie stand on Broadway, has officially filed for bankruptcy protection. A majority of the company’s lenders have agreed to a prearranged restructuring plan. ▪
An Uber for everything   California-based driver service Uber and Alibaba's payment service Alipay are expanding their partnership to serve Chinese travellers across 69 countries. In Shanghai, the ride-hailing application has launched a service called 'Uber Life', and is set to revolutionise transportation in Latin America by introducing Uberpool. ▪
Boost for Tiger Brands   The disposal of its Nigerian business, Dangote Flour Mills, has boosted interim earnings up to 28% for Johannesburg-based consumer goods company Tiger Brands. The company expects to report solid operating results at the end of the month. ▪
Double-digit growth for Holdsport   South Africa's largest sport goods retailer, which runs the Sportsmans Warehouse and Outdoor Warehouse stores, posted a 15.8% rise in full-year operating profit, showing resilience in a challenging retail landscape. ▪

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