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Retail Update - powered by LebensmittelZeitung
Monday, 13 June 2016

While Visa will finally be admitted access in China, the credit card company is being eliminated by Walmart in Canada. In Australia, the grocery wars are to be fuelled further as Amazon Fresh eyes a market entrance. German Retail Blog contributes some fascinating background stories on DIY advertising and the German start-up Mymuesli. Enjoy the read!

Asia & Australia
Amazon Fresh to deliver Down Under   Only days after the launch of the grocery delivery service in the UK, the e-commerce giant, which recently had announced to majorly up its investment in India, has set its sights on Australia ▪
Lotte investigated   Shares for the industrial conglomerate tumbled after Korean prosecutors widened their probes, including a bribery probe, into the business empire. Its units lost a combined market value of KRW 1.2 trillion. ▪
China opens payment market   Ending the longstanding monopoly of UnionPay, China opened its credit card clearing market, which accounted for 48% of all gross consumption and retail activities last year, for competition to domestic and foreign players. ▪
Execs step down, up and out for now   Following concerns about business practices, the CEO of Boots UK, Simon Roberts, leaves the company. After the completion of the acquisition, Sainsbury's CFO John Rogers will replace John Walden as CEO of Home Retail Group. In Germany, Ulrik Nehammer, CEO of Coca-Cola Erfrischungsgetränke, leaves the company taking a sabbatical starting July. ▪
High street highs and lows   While budget chain Store Twenty One, owned by Indian manufacturing giant Alok Group, tries to avoid falling into administration, value clothing retailer Bonmarché's latest results meet its expectations. +++ Convenience store operator McColl has reportedly lodged an interest in acquiring 300 stores from the Co-op. ▪
Zalando teams up with Adidas   In an attempt to fend off advancing rival Amazon, the Berlin-based fashion e-tailer teams up with Adidas to offer same-day, free deliveries in the German capital. The pilot scheme makes Zalando the first major dedicated online retailer to tap into the inventory held in brands' own shops.  ▪
USA & Canada
Walmart Canada rebuffs Visa   Joining a number of other retailers in the country, the Canadian division of the US powerhouse will no longer accept Visa due to 'unacceptably high' fees +++ After its expansion into Europe, department store chain Hudson's Bay reported better-than-expected results. ▪
Strategic decisions   Struggling retailer J.C. Penney revealed refinancing plans which will help reduce  interest costs by nearly US$ 10 million per year +++ After the planned spin-off of its discount division Save-A-Lot, grocery store operator Supervalu will retain a 40% interest in the company, rather than the previously disclosed 20%. ▪
Success Stories
To boldly go ...   German Retail Blog takes a closer look at the careers of Jürgen Schröcker, whose bold and controversial ad campaigns made a substantial impact at former Kingfisher partner Hornbach, and of the Bavarian fellows behind mymuesli. ▪
Battling giants   In a mission to empower athletes, Sally Bergesen and her women's running apparel Oiselle are taking on the big players in the market. ▪

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