Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Wednesday, 29 June 2016

Greetings!
Latest grocery share figures from the UK show record results at both ends of the scale. Over in the US, the battle against credit card companies continues. As a pharma dealmaker, the designated Nestlé CEO Ulf Mark Schneider is poised to influence the future strategy of the global food behemoth. Find out about these stories and more, while Brexit still infiltrates many pieces of news.


asia & australia
Big W in turmoil   The recent restructuring at Woolworths' division of discount department stores is upsetting its suppliers and staff with some suppliers reportedly having called on Woolworths' board to intervene. ▪
Tata Group grows presence   US coffee retailer Starbucks is helping lift international exposure for India’s Tata Group brands by establishing multiple joint initiatives. The Indian conglomerate is but one of numerous Asian corporations that will probably find the UK a less attractive standalone market after Brexit. Tata Steel's sales plans in the country have already been disrupted. ▪
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Chinese premium spendings   Recent research expects China's cross-border e-commerce to hit US$ 85.76 billion this year, compared to last year’s US$ 57.13 billion. Another study finds Chinese consumers to favour international apparel brands over domestic counterparts and willing to pay a premium of more than 20% to buy those. ▪
europe
New CEO for Nestlé   The Switzerland-based food giant recruited Ulf Mark Schneider, boss of German healthcare group Fresenius, as its next CEO from January 2017. Analysts interpret this decision as a sign of the company's ambitions in nutrition and medical foods, away from its traditional food business. ▪
Records on record   While sales at all four major supermarkets slumped with Asda’s sales sliding by a record 5.9%, the German discounters continue to see a double-digit growth in the UK. A similar picture is painted by the industry watchdog as it finds Morrisons, Asda and Iceland to be the grocers who treat their suppliers the worst, while Aldi was rated best.  ▪
Ocado unfazed   Inspite of the recent market entrance of Amazon Fresh, British online supermarket Ocado has been able to gain market share and secure a double-digit rise in retail sales claiming the new competition to have "no impact at all". However, it is  warning against the effect Brexit may have on the country's supermarkets. ▪
USA
Little demand for Sports Authority   Contrary to previous rumours, bids received for what used to be one of the largest sporting goods chains in the United States, show only muted and scattered interest in the 464 Sports Authority stores. Dick's Sporting Goods submitted a bid for 17 sites. ▪
Taking Visa to court   Kroger, the US second-largest retailer, is suing Visa over its debit card policies. Previously, Home Depot has sued both Visa and MasterCard, and Walmart has sued Visa over chip card security issues. ▪
Brexit takes its toll   While US retailers already saw their shares fall in the two trading days following the vote, investors are concerned about the effects a stronger dollar will have on both international and domestic sales. Rating agencies downgraded Britain's creditworthiness. ▪
developments to watch
Adopting neuromarketing   While studying a person's brain activity to see his or her response to marketing stimuli is not new, it is being implemented by a growing number of brands. ▪
Airport shopping slumps   As another piece of evidence of the uncertain condition of brick-and-mortar retailers, duty-free shopping sales fell more than 2% last year from 2014 in its first year-over-year decline since 2009. ▪
Big box retailers need big strategies   'Staging big experiences' and 'providing big discounts' might be the strategies with which large-store format companies can attract customers in the face of growing competition from e-commerce and specialty stores. ▪

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