Hello, dear reader!
Numbers, numbers and more numbers - The Switzerland-based food giant Nestlé and US retail heavyweights Target, Staples and Lowe's have revealed their latest figures. China's Tencent as well as Denmark's Carlsberg also reported results. Mergers and other deals were in the headlines in Asia, Australia and Europe, where Germany's Tchibo acquired a Scottish coffee roaster to expand its footprint in the UK.
asia & australasia
Beating estimates Internet company Tencent, best known for its messaging app WeChat, saw revenue grow at its fastest rate in more than three years. WeChat also offers food deliveries and online shopping.
Expanding in Oceania Universal Robina is set to grow its footprint in the South Pacific with the acquisition of Snack Brands Australia for US$ 460.86 million. The deal comes two years after the Philippine-based snacks and drinks maker purchased Griffin’s Foods, New Zealand’s largest biscuits maker.
Cross-border acquisitions German coffee giant Tchibo expands its business across the UK with the acquisition of Scottish coffee roaster Matthew Algie for an undisclosed sum +++ Online glasses retailer MyOptique, which operates sites in the UK and Germany, has been purchased by French eyewear giant Essilor.
Ikea changes policy The Swedish furniture retailer has announced a change to its lifelong return policy in Germany. Beginning September 1 of this year, customers will have 365 days to return an item without any explanation and get their money back.
Sales target missed The Swiss food and drinks giant Nestlé has again failed to deliver on its organic growth target of 5% to 6%. The first-half revenue was 43.2 billion Swiss francs; first-half net profit fell 8.9% to 4.1 billion francs.
usa & canada
Target looks for fixes The US discount retailer reported a significant dip in sales. Net income for the quarter was US$ 680 million, down from US$ 753 million a year ago. One of the strategies to improve the company's competitive position is to upgrade the US$ 20 billion grocery business by strengthening its private-label food brands.
what to watch
Omnichannel profitability A study by RetailMeNot has found that a significant number of UK retailers are struggling to integrate omnichannel sales. Although bricks-and-mortar retail is not dying, longterm winners will be those who are visible across the channels.