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Retail Update - powered by LebensmittelZeitung
Monday, 29 August 2016

Hello, dear reader!
Aldi informs in detail about its operations in Australia and is challenged by department store David Jones. AB InBev will shed some of its workforce after acquiring SABMiller, and Tesco gets rid of another business unit. Spar thrives in Russia and budget retailers in the UK enjoy bumper sales. Enjoy your Monday bulletin and have a great start to the week.

asia & Australasia
Fuelling competition   Aldi has released some eagerly awaited details about its operations in Australia. The figures show that the German discounter is making good profits. Meanwhile, department store operator David Jones is set to compete with Aldi by introducing high-quality, ready-to-eat food in the country. ▪
Decisions Down Under   Ahead of its A$ 1 billion-plus share market float, Australasia's biggest chicken producer, Inghams, announced it will undergo a 'transformation', which will most likely lead to job cuts +++ Supermarket chain Countdown, owned by Australia's Woolworths, will spend NZ$ 500 million to expand in New Zealand. ▪
Robust performances   Despite a tough market, convenience store retailer 7-Eleven Malaysia remains confident after announcing a 40.3% rise in after-tax profit +++ Bengaluru-based digital payments platform Paytm is close to raising US$ 300 million, which could value the company at US$ 5 billion. ▪
Tesco continues to slim down   The British supermarket operator is selling its Euphorium Bakery chain to Soho Coffee and Samworth Brothers. To concentrate on its core business, Tesco has already sold Dobbies Garden Centres, restaurant chain Giraffe and Harris + Hoole coffee shops, among other businesses. ▪
Spar thrives in Russia    The international retailer, which operates 420 stores from St Petersburg to Irkutsk, reports above average growth in Russia with an overall sales increase of 19%. In Georgia, Spar expands its operation by entering into sub-licencing. The first independent retailer-run store has been launched. ▪
The costs of a mega merger   Anheuser-Busch InBev expects to cut about 3% of its workforce, which is up to 5,500 jobs, after its takeover of SABMiller. The deal to create the world’s biggest brewer will amount to US$ 2 billion in fees and taxes (paywall). ▪
usa & Canada
Prototype expansions   Off-price retailer Tuesday Morning, which operates 750 stores, is rolling out its upgraded store format. Cosmetics chain Sephora has brought its tech-savvy Beauty TIP Workshop store format to Chicago. It features more than 13,000 products and an interactive environment. ▪
Saving Sears   After another disappointing quarter, the department store retailer has accepted a capital infusion of US$ 300 million by its CEO's hedge fund. The loan might help for the upcoming holiday season, but analysts are sceptical whether Sears can be saved. Some employees fear that the company will close all its stores. ▪
worthwile readings
Britons prefer a bargain   Sales soar for budget retailers in Britain. Their revenues are up to GBP 4.9 billion, according to Nielsen +++ High street prospects are not that positive: Retail analysts predict that more store closures will follow in the wake of the close-down of department store chain BHS. ▪
Addressing food waste   Retailers can reduce food wastage by ramping up recycling efforts, reducing avoidable waste or finding new ways. Retail Gazette compiles a summary of how retailers can tackle the GBP 19 billion waste problem in the UK. ▪
Damage control   Questions over the origin of bedsheets sold by Mumbai-based company Welspun revived one of Indian manufacturing's problems: quality. While the government doesn't expect much damage to the country's reputation as a manufacturing hub, industry insiders warn its image could be tarnished. ▪

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