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Retail Update - powered by LebensmittelZeitung
Friday, 12 August 2016

Hello, subscribers!
As expected, Chinese e-commerce behemoth Alibaba reports record second-quarter growth; in the UK, Sainsbury's is under pressure over a main own-brand supplier cutting workers' hours; and Walmex sells its clothing stores in Mexico. All these stories feature in today's RetailUpdate. Have a great day, and don't forget to share.

asia & australia
Alibaba reports record growth   The Chinese e-commerce behemoth has released its second-quarter results showing year-on-year revenue growth of 59%, more than when the company listed on the New York stock exchange in 2014. The result also showed that mobile user numbers have overtaken desktop users for the first time. ▪
Woolies launches internet radio   Customers of Woolworths can now listen to in-store music wherever they go. In partnership with music streaming giant Pandora, the Australian supermarket chain has launched a 24/7 internet radio station dubbed ‘Woolworths Radio.’ In other news, Woolworths is expected to soon announce the sale of its petrol stations. ▪
A future in coffee & tea   In an effort to solidify its dominant market position, South Korean drinks maker Hyungkuk F&B has signed a memorandum of understanding to purchase online coffee and tea e-commerce site CNT Planet +++ Meanwhile, Thai-owned coffee-shop chain Café Amazon has been awarded 19 licences to run franchise outlets across Cambodia. ▪
Sainsbury’s faces protest   In reaction to one of its largest own-label suppliers Bakkavor cutting workers’ hours, trade union GMB will protest outside the UK supermarket chain’s headquarters on Friday +++ Popular on-demand restaurant food delivery start-up Deliveroo is also facing employee unrest: In London, a number of self-employed couriers have been protesting over possible changes to how they are paid. ▪
Italy hurt by embargo   According to Italian farmers’ association Coldiretti, a trade war with Russia has cost the country’s food sector more than EUR 600 million in lost exports over the past two years +++ Meanwhile, in its quest for growth, Italian supermarket chain Conad has been signing contracts with religious institutes in order to use their premises for new stores. ▪
Spar makes pledge   Spar UK has joined other retailers by pledging to phase out the sale of eggs from caged hens by 2025 , and in Taufkirchen an der Pram, Austria, Spar has opened a new 600-meter-square store. ▪
usa & mexico
Walmex sells stores   The US retailer’s Mexican division will sell all 119 of its Suburbia clothing stores to retail chain El Puerto de Liverpool SAB for about US$ 1.03 billion +++ Macy’s plans to close 100 of its stores in order to invest more in e-commerce. ▪
Expansion in the US   On August 13, Danish discounter Flying Tiger Copenhagen will open a new store on New York City's Upper West Side +++ Japanese retailer Muji has opened an 8,600-square-foot store, which offers products such as clothing, kitchenware and furniture, at Garden State Plaza, Paramus, USA. ▪
China can’t get enough   Thanks to China’s insatiable demand for soybeans, US production is set to be the highest since 1979. The increased demand is depleting stockpiles, and domestic inventories are poised to drop below the previous season. ▪
thought-provoking reads
Ice cream in Spain   Almost half of Spanish parents offer their children ice cream as an occasional snack, according to ‘Habits in Ice Cream Consumption’ by Frigo (HB). The study found that 75% of parents consider ice cream to have acceptable nutritional value. ▪
Smartphones drive growth   Online-only retail is growing faster than brick-and-mortar. Why? After tracking retail growth rates for a year, the IMRG Capgemini Sales Index has identified smartphones as having a major influence. ▪

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