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Retail Update - powered by LebensmittelZeitung
Tuesday, 07 June 2016

In constant comings and goings, Walmart may be contemplating to exit the African market, while Lidl opens in Lithuania, and Groupe Casino enters Morocco. In the wake of the high Chinese demand for Australian products, Sigma Pharmaceuticals launches an e-commerce website in the lucrative market. In Australia, only a good two months after axing its 'Homebrand' range, Woolies dumps another of its own brands. Enjoy the read!

asia & Australia
Shedding private labels   After scrapping its 'Homebrand' label, Australian supermarket chain Woolworths will also phase out its mid-tier private label 'Select' +++ In Britain, Tesco simplifies its own label wine range by removing the entry-level sub-brands ‘Vineyards World Wines’ and ‘Simply’. ▪
Buy online in China   Australian pharmacy wholesaler and distributor, Sigma Pharmaceuticals, has launched a Mandarin version of its Amcal online store, which will ship orders from Australia to China. Entering the e-commerce market, state-owned Shanghai-based retailer Bailian launches the website ▪
Send the ball rolling   In its aim to become a leader in the sports industry, Chinese electronic retailing giant Suning is buying a controlling 68.55% stake in Italian soccer club Inter Milan +++ Mumbai-based conglomerate Larsen & Toubro Ltd has secured a contract in its key Middle-East market to build the US$ 135 million stadium for Qatar's 2022 FIFA World Cup. ▪
Prospects abroad   While German discounter Lidl has opened its first 15 stores in Lithuania last week, Leader Price, discount store chain subsidiary of French mass retailer Groupe Casino, will open its first store in Morocco tomorrow. A total of 50 store openings in the country are planned by 2020 +++ Lidl and Kaufland saw a double digit sales growth in Romania, where their parent, the German Schwarz Group, is the market leader.  ▪
Promotions at the top   Andy Clarke, CEO of Walmart’s UK supermarket chain Asda, has let slip that incoming COO Roger Burnley will eventually succeed him as he will be departing from the grocer later this year. Swiss chocolatier Lindt & Sprüngli promotes its current CFO Dieter Weisskopf to CEO, and the largest chocolate manufacturer in the US, Hershey, appoints Michele Buck executive vice president and COO.  ▪
Money troubles   As it failed to comply with localisation regulations, Turkey's banking watchdog rejected PayPal‘s license and the online payment system ceased operations in the country +++ Berlin financial technology startup Number 26, a mobile-first bank who wants to become the new hub for digital transactions, has announced to close hundreds of customer accounts. ▪
Sold and for sale   Visual analytics firm Qlik, which lists many retailers worldwide as its customers, struck a US$ 3 billion buyout deal with tech-oriented private equity firm Thoma Bravo +++ As home improvement spending has rebounded in the US, privately held flooring retailer Empire Today might be up for sale soon ▪
Tapping new areas   While e-commerce powerhouse Amazon expands its partnership with Sprouts Farmers Market to offer one-hour deliveries of grocery items to Prime Now members in the Dallas area, US supermarket chain Whole Foods Market has partnered with startup delivery firm Quiqup to provide a two-hour delivery service in London, UK. ▪
Walmart might exit Africa   The largest US retailer is reportedly considering a sale of its shares in South-African Massmart. Finding an investor to offload the shares to might prove problematic. ▪
Sugar tax looms   The 20% tax, which will apply to all nonalcoholic sugar-sweetened beverages and is dreaded by the industry, has been announced to possibly come into effect in South Africa from April 2017 +++ In the UK, a market research company calculated additional costs of GBP 226 million for Coca Cola for a year under the sugar tax. ▪

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