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Retail Update - powered by LebensmittelZeitung
Thursday, 28 July 2016

Hello, dear reader!
Snack giant Mondelez hopes to capture a slice of the Chinese chocolate market, while at the same time, Indian chocolate specialist Choko La eyes Singapore. European discount chains DIA and Biedronka enjoy robust results, and Sainsbury's received approval for its Home Retail takeover bid. Over in the US, Dollar General has acquired stores from Walmart. Read these stories and more in today's issue.

asia & australasia
Chocolate for China   Mondelez International, which just posted second-quarter earnings that beat estimates, will start selling its Milka brand in China. The Chinese chocolate market is still small, currently valued at about US$ 2.8 billion, but the US snack giant sees opportunities. ▪
Singaporean expectations   Sheng Siong Group, one of the largest supermarket chains in Singapore with 41 stores, reported a higher profit in Q2 and now looks for new sites +++ Indian chocolate specialist Choko La is set to expand across Asia and will open its first outlet at Changi airport next month. ▪
David Jones enters New Zealand   The Australian department store chain, which is owned by South Africa's Woolworths, opened its first store outside its home market in Wellington. Thanks to an improved performance, the company recently reported healthy growth in sales. ▪
Green light for Sainsbury's   Shareholders of the Home Retail Group, parent company of Argos, have approved the GBP 1.4 billion takeover offer by the British supermarket operator. Meanwhile, Sainsbury's prepares to sell 16 Netto sites and German discounter Lidl (paywall) is rumoured to be making an offer. ▪
Post-Brexit investments   British pharma giant GlaxoSmithKline, which released 'bubbly financials' for the first half of the year, will invest GBP 275 million in three of its UK-based plants. As a sign of its commitment to the country, fast food major McDonald's plans to create over 5,000 jobs in Britain by then end of 2017. ▪
Robust results for discounters   Like-for-like sales at Spain's DIA chain grew in the second quarter in all the countries it operates in, signalling a long-awaited turnaround in its home market. Poland’s Biedronka chain, owned by Portuguese Jeronimo Martins, also recorded an increase in Q2 and on a yearly basis. ▪
usa & canada
Dollar General expands offer   The Tennessee-based discount chain operator has purchased 41 former Walmart Express locations across 11 states. The move will allow the company, which expects to relocate existing stores to the purchased sites, to expand its fresh meat and produce offerings. ▪
Whole Foods holds on   Squeezed by increased competition, the Texas-based supermarket chain reported a decline in comparable sales; however, the company is expanding its reach in Chicago and will employ about 150 people when its new distribution centre opens in 2018. ▪
Profit slumps   Canadian grocer Loblaw posted a drop in profit, largely due to higher interest expenses and financing charges, but says it is prepared for a price war with its rivals. Amid ongoing efforts to spin off its Save-A-Lot division, Minnesota-based retailer Supervalu reported a lower-than-expected profit. ▪
Restructure for Pick n Pay   After persistent minority shareholder pressure in the past few years, the South African supermarket operator got shareholder approval to collapse its archaic pyramid control structure Pick n Pay Holdings (Pikwik), but the control remains with the Ackerman family. ▪
Fighting Massmart   A complaint at the Competition Tribunal about long-term exclusivity agreements by the Walmart-owned company was criticized by major South African retailers, arguing that there is a market inquiry under way to address the concerns. Massmart, however, does not agree. ▪

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