Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Tuesday, 15 November 2016

Greetings!
Newcomer Noon will enter the e-commerce market in the Middle East, Samsung makes a significant move into the market for car electronics, and Irish sandwich maker Greencore strikes a deal that will transform its presence in the US market. Meanwhile, tobacco giant Reynolds is seeking a higher price from BAT. Find out about these stories and more. Enjoy the read!

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Asia & Australia
Samsung buys car tech   The South Korean smartphone maker that has recently suffered blowbacks in its core markets is now boosting its presence in the car electronics segment with its acquisition of US car tech company Harman. The US$ 8 billion deal will provide Samsung with a massive customer base in the automotive industry. ▪
Online going offline   The rumoured launch of Amazon's brick-and-mortar stores in Australia is getting more detailed. The first stores are expected to be set up in a "multi function" store design within two years. Amazon’s Indian competitor Flipkart is going down a similar road and is set to open a first physical store for its online portal Myntra. ▪
Supermarket makeovers   International neighbourhood store chain 7-Eleven is shaking up the convenience store market in Singapore with a makeover which includes bigger store spaces, seating areas, and premium products +++ In the US, Whole Foods Market is upping its game by adding restaurants, bars and tap rooms to its stores. ▪
europe & Middle east
New e-commerce venture   With a US$ 1 billion investment from Dubai businessman Mohamed Alabbar and Saudi Sovereign Wealth Fund, the new online shopping platform Noon is going to be launched in January. Noon will have 20 million items on offer and the investors hope it will come to “dominate” e-commerce in the Middle East. ▪
Greencore acquires in the US   The Irish food company, which produces half of all sandwiches sold on Britain's high streets, plans the US$ 747.5 million acquisition of US frozen sandwich maker Peacock Foods. The deal, which will be finalised by the end of December, will transform Greencore's presence in the US market. ▪
Tesco takes its time   The British grocer takes an average of 103 days beyond terms to make a payment to its suppliers. No other well known UK retailer takes that long. Meanwhile, the Serious Fraud Office has reportedly announced to reach a charging decision on the Tesco profit scandal by the end of November. ▪
USA
Tobacco merger talks   US cigarette maker Reynolds American has rejected the US$ 47 billion buyout offer by British American Tobacco. Reportedly, the two companies are still in talks and BAT might be willing to increase the price slightly. ▪
Services expanded   E-commerce giant Amazon is opening up its Home Services network, which includes services like house cleaning, home repair and yard work, to 20 more metropolitan areas in the US. Over in France, Casino’s variety banner Monoprix is trialling pedestrian couriers to hand-deliver (French content) the shoppers' purchases from three stores in Paris. ▪
Digitised payment options   Citibank enters the digital wallet space with Citi Pay which will launch in the US in early 2017 with online, in-app and tap-and-pay capabilities. Rollouts in other markets will follow. Apple Pay is expanding its payments service to charities and Samsung Pay will start offering points for each transaction. ▪
analyses & expectations
Post-election expectations   Moody’s Investors Service expects the US to lead global growth higher over the next two years. Donald Trump's campaign promise to impose punitive tariffs on Asian imports could have enormous implications for China and Asia, with some heavily export-dependent economies at the risk of plunging into contraction. ▪
Retail execs react   The unexpected political shakeup of Donald Trump's presidential win propels executive leaders from across the retail industry to address what it means for their companies and employees. ▪
Discounters' growth to falter   Bruno Monteyne, senior retail analyst at Bernstein Research, expects the growth of the discounters in the UK to "grind to a halt". ▪

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