Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Wednesday, 09 November 2016

Hello, dear reader!
While America and the rest of the world are evaluating the results of the US presidential election, Tesco deals with the aftermath of the cyber-attack in Britain and Marks & Spencer has finally revealed its store closure plans. Australia's retailers are under scrutiny by the country's watchdog and Walmart is being sued over falsely labelled Egyptian cotton in the US. Meanwhile, Aldi and Ebay are getting into the Christmas spirit. Enjoy your Wednesday bulletin.

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asia & australia
Supermarkets under scrutiny   Australia's major retailers, Aldi, Coles and Woolworths, are all on the watchdog’s radar over how they treat their suppliers. This comes after local giant Woolies walked away from an arrangement with SPC Ardmona, its supplier of private label tinned tomatoes. ▪
Expansions and restrictions   Indian private conglomerate Future Group has confirmed the acquisition of the retail business of Heritage Foods, which includes 124 outlets in the southern part of the country, while Walmart has decided to abandon plans to set up food-only stores in India. ▪
Cigarette trial in Japan   British American Tobacco plans to test and launch a new tobacco-based cigarette alternative in Japan, fuelling competition with Philip Morris and Japan Tobacco. BAT has invested more than US$ 1 billion over the past five years to develop cigarette alternatives. ▪
europe
Refunds and funds   British grocer Tesco has announced that it has refunded GBP 2.5 million to 9,000 customers who had money taken from their accounts during a cyber-attack on the weekend, while competitor Sainsbury's is expected to reveal a deficit of nearly GBP 1 billion in pension funding when it reports results today. ▪
Expansions and reductions   On the heel of a record growth in its latest financial year, Irish clothing retailer Primark plans to open further stores next year in the UK, Europe and the US. Not so lucky is American Apparel, which just placed its British business into administration. The 13 UK stores of the US retailer are expected to close down. ▪
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M&S focuses on food   The British department store operator has confirmed that it will shut around 60 of its UK stores as well as 53 outlets overseas, leading to 2,100 job cuts. The company works on a restructuring plan that will promote its successful food business ahead of its struggling clothing arm. ▪
usa & canada
Litigation matters   Walmart has been sued by consumers over the falsely labelled “100% Egyptian Cotton” from India's Welspun. According to the complaint, the retailer waited too long to halt sales of the products +++ Drugstore giant Walgreen is accusing its former lab-testing partner Theranos of breach of contract. ▪
Improving performance   Toy retailer Toys ‘R’ Us has opened an “experience-driven” store prototype in California with a lot of interactive features, and discount giant Target is set to improve its supply chain by employing 15-year supply chain veteran and former Walmart exec Shekar Natarajan. ▪
Solid result for CVS   US pharmacy retailer CVS Health, which is currently experiencing slowing prescription growth in the overall market, reported an increase in earnings and revenue in Q3, but warns of a lower profit. Last week, the retailer announced that it will cut 600 jobs at its corporate office. ▪
Christmas ante portas
Stressful preparations   46% of European women consider Christmas to be a stressful time. This is a result of a study that research firm Nielsen and Lidl Germany have published together. They looked into activities such as Christmas shopping, decorating, buying presents and cooking. ▪
Festive inspirations    Aldi UK has introduced its Christmas campaign starring Kevin the Carrot, narrated by award-winning actor Jim Broadbent. Over in the US, e-commerce company Ebay is also getting into the holiday spirit by launching a campaign that transcends television, online and its mobile app. ▪

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