Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Thursday, 10 November 2016

Hello, dear reader!
The election of Donald Trump as America's next president has stunned the world and will have economic implications. We have collected some reactions from our industry. In other news, German cosmetics retailer Douglas is set to acquire a Spanish chain, US discounter Dollar General experiments with a convenience format and Toys 'R'Us pushes ahead with its digital transformation. Have a great day and stay positive.

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asia
Targeting Chinese shoppers   Japanese convenience store operator Lawson plans to launch its reward point programme in China in December, and Tokyo-based retailer Muji is set to move into hospitality in China with the Muji Hotel Beijing to open next year, which is considered a major business step. ▪
Alibaba stays ambitious   The Chinese online behemoth is looking to work closer with US chipmaker Intel to develop artificial intelligence products. The company's growth ambitions in the US might be at risk after Donald Trump's election victory, and founder Jack Ma warns of a 'disaster' if the new president doesn't work with China. ▪
europe
Douglas to acquire in Spain   The Germany-based perfume and cosmetics retailer, which runs more than 1,700 stores and franchise outlets across Europe, is interested in buying Spanish perfumery chain Bodybell. Douglas has reportedly submitted the highest bid (in Spanish) for the company so far. ▪
Pricing pressure goes on   British supermarket chain Sainsbury's has posted a 10% fall in profits as the price war and costly acquisition take their toll. It surely doesn't help that at the same time US online giant Amazon announced plans to expand its Prime Now delivery service in the UK, including express delivery. ▪
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Delivering results   German consumer goods giant Henkel, which aims to grow in the US, increased its sales by 3.4% to EUR 4.7 billion in Q3, and Danish brewer Carlsberg has raised its earnings forecast thanks to a strong demand in Eastern Europe. Swedish food and health retailer ICA Gruppen, however, could only post a tiny increase in net sales claiming a sluggish market. ▪
usa & canada
Dollar General has big plans   The Tennessee-based discount chain operator is about to unveil a convenience concept for smaller stores due to open in early 2017. The company will also build a US$ 91 million distributions centre in Orange County, New York, which will supply 1,000 stores in the Northeast. ▪
Toys 'R' Us speeds up transformation   Omnichannel adoption is a prerequisite to remaining relevant in today's retail world and Toys 'R' Us is set to push ahead with its digital transformation. The US toy retailer has appointed Amit Poddar as chief software architect to spur the company's global e-commerce channels. ▪
Kroger trials different format   The Cincinnati-based retailer is testing a new go-to-market strategy at select Fred Meyer stores. The project includes the addition of more than 1,000 grocery items, an expansion of natural and organic foods, a changed store layout and a new rewards programme. ▪
US election reactions
Stay calm and move on   While world markets were tumbling after Donald Trump's presidential election victory, US companies reacted cautiously. Over 1,100 manufacturers and businesses offered to work with him. French spirits group Pernod Ricard said that the result will not change its investment plans in the United States, its biggest market. ▪
Some soar and some tumble   Although beverage giant Constellation Brands, the maker of Corona beer, doesn't regard the new presidency as a threat, the company’s stock took an 8% nosedive. Drug makers, on the other hand, were among the stock market’s biggest winners as Clinton had called for more controls on drug pricing. ▪

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