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Retail Update - powered by LebensmittelZeitung
Tuesday, 10 May 2016

In Europe, major retailers have been fined for price-fixing, in the US, Amazon enters yet another market segment, in Asia, a rule change would facilitate Chinese overseas acquisitions, and in Africa, victims of the 2006 bread cartel are not ready to surrender. Find out about these stories, the next billion dollar acquisition, and more. Enjoy the read!

asia & australia
China to boost overseas acquisitions   The country's investment regulator has proposed rule changes which will further boost record overseas acquisitions by Chinese companies +++ While the Chinese  economy suffers a drop in imports and exports, the country's second-largest e-tailer reports a revenue rise of 47% for Q1. ▪
Southeast Asian highs and lows   Recognising a rising trend for online shopping, the e-commerce market in Thailand is expected to grow significantly. As Vietnam suffers the worst drought in three decades, the world’s biggest robusta coffee beans producing country is forecasted to experience a drop in output to the lowest in four years. ▪
Woolworths recruits US chief   The Australian retailer has appointed Kathee Tesija, former merchandise chief of US Target as a non-executive director. Suppliers of the supermarket chain have come out with their view on Woolworths' announcement of its AU$ 150 million investment. ▪
Fined for price-fixing   Several retailers, including Edeka, Netto, and Metro, have been fined by the German cartel office for price-fixing of beer, sweets and coffee. The sum of the fines totals EUR 90.5 million. ▪
Supervalu at top in Ireland   While noting a robust performance for the overall grocery market in the country, Supervalu remains the largest supermarket, according to Kantar Worldpanel. Other findings for the UK market include brick-and-mortar stores continuing to take market share from etailers, and HMV reclaiming its position as the second biggest entertainment retailer from Tesco. ▪
Mercadona gears up for summer   The Spanish supermarket group announced to add another 5,000 seasonal employees to its some 75,000 staff workforce. Meanwhile, Lidl Spain has seen its sales of fresh produce grow by 17%.  ▪
JAB adds doughnuts to its empire   Only months after the US$ 13.9 billion acquisition of coffee company Keurig Green Mountain, JAB Beech, a subsidiary of the world's largest coffee conglomerate JAB Holding, acquires doughnut chain Krispy Kreme in a US$ 1.35 billion transaction. JAB is a private investment group, mainly owned by Germany’s reclusive Reimann family. ▪
Amazon to ship a meal   The online giant might be the next player to join in the recent meal kit frenzy by partnering with Tyson Foods to create such a service through its grocery delivery arm, Amazon Fresh +++ In the UK, the anticipated sale of British supermarket Morrisons' products through Amazon is said to be 'imminent'. ▪
Crunching numbers   While department store chain J.C. Penney reassures its investors with higher-than-expected profits for the first fiscal quarter, clothing retailer Gap's comparable sales decline continued into April and the ailing company hints at the possible closing of overseas stores. ▪
Africa & South America
Appeal in bread cartel case   Challenging a previous Supreme Court of Appeal ruling, alleged victims of the 2006 Western Cape bread cartel will be explaining to the South-African Constitutional Court why they should be allowed to sue food manufacturer Premier Foods. ▪
Pack it in plastic   Colombia's leading reusable plastic container company Empacotecnia has been bought by Australian Brambles Group-owned IFCO, which continues its expansion in South America. In Rwanda, the country’s main producer and seller of beer and soft drinks, Bralirwa, has unveiled a multimillion dollar PET plant ▪

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