Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Monday, 05 September 2016

Hello, dear reader!
Canadian merchants and Australian winemakers will get a boost in China through Alibaba's Tmall. Britain's Sainbury's follows in the footsteps of Germany's Aldi by adding premium fashion to its offerings. In Canada, Sobeys announces mass price cuts, Dollarama considers going online and Lululemon focuses on smaller stores. Enjoy the read and have a great start to the week.

asia & australia
Chinese connections   An online “flagship store” featuring Australian wines and a Canadian “pavilion” have been launched on Alibaba’s business-to-consumer platform Tmall +++ Alibaba affiliate Ant Financial and key investor Primavera Capital will invest US$ 460 million into Yum China, the new spin-off from Yum Brands. ▪
Japanese merger   Familymart, the country's 3rd largest convenience store chain, and Uny, the owner of fourth-ranked Circle K Sunkus, have merged, creating Japan's second-largest convenience store chain after 7-Eleven. Familymart Uny will operate about 17,000 outlets. ▪
Indian growth potential   Backed by robust economic growth and rising household incomes, consumer spending in India is expected to touch US$ 3.6 trillion by 2020, while the e-commerce market may reach US$ 125 billion. Japanese clothing chain Uniqlo (paywall) is set to tap into this market and plans to enter the country. ▪
europe & Central America
Aldi informs   The German discounter and fashion designer Jette Joop will tour some German cities to promote the designer's autumn collection, which will be available at the discounter from September 26. Aldi Süd has also organised a recruitment day at one of its stores in Cologne to inform about career opportunities in retail. ▪
Sainsbury's expands offer   The British supermarket operator is following in the footsteps of rival Aldi with the launch of a top fashion range called Tu Premium. In other news, Sainsbury's has finally completed the acquisition of Home Retail Group. With Argos and Habitat now part of the company, it has over 2,000 stores in its network. ▪
Fyffes closes in Honduras   The Irish fruit giant, which saw its pre-tax profits rise 15.4% to EUR 35.6 million in the first half of the year, has reportedly decided to shut one of its three Honduran melon farms, with local media alleging the move is linked to some workers' plans to form a union. ▪
usa & canada
Sobeys slashes prices   Canada's second largest food retailer (free registration) announced it will lower everyday prices on nearly 10,000 grocery items at its Sobeys and Safeway stores in Western Canada. The price cuts are enabled in part by renegotiating with suppliers. ▪
Canadian revelations   Leading dollar store operator Dollarama reported an increase of 11% or CAD 106.4 million for Q2 and is exploring whether to offer its merchandise online (paywall). Meanwhile, yoga-wear retailer Lululemon is determined to focus on opening smaller neighbourhood stores to raise brand awareness. ▪
J.C. Penney reignites appliances   After more than 30 years, the Texas-based department store operator is re-entering the major appliance business announcing that it will relaunch sales of kitchen and laundry appliances in a phased 5,000-store rollout, kicking off the expansion last Friday. ▪
worthwile reads
Views on corporate tax   The EU decision that the Irish government must recoup EUR 13 billion in back taxes from Apple has triggered reactions. Some argue that the ruling should be unreservedly welcomed and Austria's chancellor claimed that every sausage stand pays more tax than a multinational corporation. ▪
Flying robots and the city   More and more drones will fly through our cities in the coming years, delivering the latest order from Amazon and other online retailers. However, drones present challenges for cities. They raise safety, privacy, nuisance and trespassing concerns. ▪

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