Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Monday, 08 August 2016

Hello, dear reader!
South Africans on the acquisition path - Steinhoff makes a foray into the US with the purchase of a leading mattress company and media conglomerate Naspers enters India by buying Citrus Pay. The Edeka-Tengelmann saga goes on in Germany with economy minister Sigmar Gabriel determined to defend the merger in court, and in the US, Amazon speeds up delivery with its own planes. Have a great start to the week.


asia & australia
Tech deal in India   South African media conglomerate Naspers is in the final stages of acquiring Mumbai-based financial technology company Citrus Pay for around US$ 150-180 million, in an all-cash transaction, making it one of the largest deals in the Indian payments market. ▪
Shaking up global alliances   Chinese transportation network Didi Chuxing has acquired the China arm of online driver service Uber, creating a US$ 35 billion ride-hailing giant. In return, Uber gets a stake in Didi Chuxing. Apparently, US-based tech firms come to a halt when they reach the Chinese border.  ▪
Juicy sell out   Australian juice maker Food Revolution Group has sold its New Zealand operations, Roxdale Foods, and is leasing its LangTech citrus assets to Singapore-based Gravity Solutions Global in a deal valued at more than AU$ 17 million. ▪
europe
Delivery competition   UK-based food start-up Deliveroo has raised US$275 million in funding, which it will use to grow its service in both new and existing markets, and Hermes, a subsidiary of Germany’s Otto Group, will start trialling the use of Starship Technologies’ delivery robots at the end of this month in Hamburg. ▪
Minister defends merger   German Federal Economics Minister Sigmar Gabriel has announced (in German) that he will defend his decision to allow supermarket operator Edeka to take over rival Kaiser's Tengelmann in court. This comes shortly after Edeka took legal action to hold on to the merger, as reported on Friday. ▪
usa
Steinhoff pursues growth   The South African furniture retailer has agreed to buy Texas-based speciality mattress retailer Mattress Firm for US$ 2.4 billion. The deal will mark Steinhoff's entry into the US market. Over in the UK, its Poundland takeover might be in jeopardy after an American activist has raised the stakes. ▪
Another first for Amazon   In its ongoing quest to speed up delivery, the mother of all online retailers has unveiled its first “Prime Air” branded delivery plane, a Boeing 767-300 that has been converted into a freighter, named Amazon One. Meanwhile, rival Apple has unveiled some creepy features on its store app. ▪
Dollar Tree restructures   The US discounter plans to cut 370 positions as part of a corporate restructuring related to its acquisition of Family Dollar last year. The retailer also announced that it will invest US$ 110 million to develop its corporate headquarters in Chesapeake, Virginia. ▪
what to watch
Towards a cashless society   Statistics show that card spending has risen exponentially year-on-year for a decade. With 100 million more purchases in the UK made on card than this time last year, Retail Gazette ponders whether the future of retail is cashless. ▪
Online beats offline   Retailers offering customers an option to buy products online earn more revenue than those who only sell their goods offline, according to a new study published by Melbourne-based Monash University. The study suggests that it is easier to locate items through the search function. ▪

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