Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Tuesday, 21 June 2016

Greetings!
Walmart steps up its e-commerce in China by striking a strategic alliance with Alibaba rival JD.com. In Ireland, Tesco fights the expansion of German discounter outlets in the planning arena. New regulations in India make it easier for foreign companies to do business in the country. Enjoy the read and feel free to share.


Asia & Australia
Walmart's new China strategy   The US retailer will sell its Chinese e-commerce business Yihaodian to China's second largest e-tailer JD.com for a 5% equity stake in the company +++ Russian consumers increasingly use Chinese e-commerce platforms like Alibaba's AliExpress, while Alibaba in turn is interested in Russian businesses to sell their products on its platforms. ▪
India opens doors   New government regulations allow for 100% foreign direct investment in food retail, including e-commerce, if the products are produced, processed or manufactured in the country. Other sectors are also affected by new regulations regarding FDI, facilitating business for companies such as Ikea and Apple. ▪
Woolies is big on small stores   The Australian supermarket chain takes on convenience stores with its scaled-down city supermarkets, Metro, which are some of the busiest and most lucrative outlets in the retailer's portfolio. ▪
europe
Tesco against discounters   The British retailer has lodged appeals against plans for new Aldi and Lidl stores in Ireland. Tesco had been successful in the case of four out of six previously lodged appeals of a similar nature. ▪
Couche-Tard expands in Europe   The Canada-based convenience store operator broadens its presence in Northern Europe by acquiring 23 locations in Estonia, currently operated under the Premium 7 brand, for an undisclosed sum. The acquisition will bring the number of outlets operated by Couche-Tard in Estonia up to 77. ▪
Launching and divesting sites   In the Netherlands, German discounter Lidl has opened an online store for non-food products. In Italy, Auchan-owned supermarket chain Simply has launched an online store for the area of Milan, while in Sweden, ICA divests its subsidiary InkClub, one of the country’s oldest e-commerce companies. ▪
USA
Offer for Sports Authority   The bankrupt sports retailer may be able to sell 200 stores in a deal with British Sports Direct and New York City-based Modell's Sporting Goods. The deadline for bids is Thursday this week.  ▪
Costco switches cards   The bulk retailer stops taking American Express credit cards in favour of Visa cards. At the same time, Walmart is expanding its mobile payment system Walmart Pay to two more US states, Alabama and Georgia, and considers taking it to Canada next year. ▪
Tough times for luxury retailers   In the face of a US$ 5 billion debt and sluggish sales, struggling Neiman Marcus is reportedly searching for a buyer or investor. Lower customer demand caused the value of shares in Nordstrom to reduce by half in a year. The retailer may re-evaluate its e-commerce strategy (paywall).  ▪
trends to watch
'Premiumisation'   The trend to make luxury more exclusive, or more affordable is spreading from the food and beverage sector to fashion, beauty, and hospitality. ▪
Cheap is chic   At the other end of the scale, more and more Millenials who are strong on spending power opt to shop on a budget at dollar stores. ▪

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