Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Wednesday, 21 December 2016

Greetings!

In the US, Walgreens and Rite Aid take a step closer to their intended merger by selling 865 Rite Aid stores to Fred's pharmacies, China's Bright Food seeks to offload the traditional British breakfast brand Weetabix, and in Europe, McColl's has been given the approval to purchase 298 Co-op stores. Find out about these stories and more. Enjoy the read!


asia
Weetabix for sale   China's state-owned Bright Food Group is looking to sell the breakfast cereal maker in a deal valued at about GBP 1 billion. The sale process is expected to start in January, less than five years after the Shanghai-based conglomerate agreed to take control of the 84-year-old famous British brand. ▪
Coming to India   A month after US technology icon Apple reportedly asked the Indian government for financial incentives, it seems to be moving forward with manufacturing in the country. South Korean conglomerate Samsung is preparing the launch of its Samsung Pay feature into the Indian market during the first half of 2017.  ▪
Hanjin Shipping's sell-off   As it faces liquidation, South Korea's largest but troubled shipping line continues selling key assets with the sale of its stake in US Total Terminal International to Geneva-based shipper MSC. ▪
europe
Green lights given   The British competition authority has cleared the GBP 117 million acquisition of 298 Co-op grocery stores by McColl’s Retail. The EU Commission has approved of international dairy giant Danone taking over US company WhiteWave under the condition that it divests a significant part of its Belgian ‘growing-up milk' business. Weak demand in Spain and an unsuccessful relaunch of its Activia brand led to Danone's sales to drop below target. ▪
Joining forces   German hypermarket chain Globus is joining Europe's largest buying alliance EMD with the beginning of next year. One of Russia's largest food retailers, O'Key launched a debit card together with Rosbank and Mastercard. ▪
Record year for The White Company   The lifestyle retailer, which runs 55 stores across the UK, rings up a whopping 51% surge in earnings, another record year for the upmarket brand that started off as a catalogue business in 1994.  ▪
USA
Rite Aid stores divested   Memphis-based Fred's Pharmacy will purchase 865 Rite Aid stores for US$ 950 million in cash. The deal, which is meant to ease federal government concerns over Walgreens’ proposed acquisition of Rite Aid, will make Fred's pharmacy the third-largest drugstore chain in the US. ▪
Amazon charters jet   The e-commerce giant is meeting the logistical challenge of delivering an estimated 220 million packages around Christmas in the US alone by chartering a huge cargo jet (paywall) - “Amazon One”. A technical glitch over the last weekend may have cost Amazon millions in revenues.  ▪
HR practices change   Under pressure from the New York Attorney General, more retailers have ended the practice of on-call scheduling. Class action lawsuits have been filed against home goods retailer Bed Bath & Beyond for shortening employee wages by not paying them for overtime worked. Social media site Pinterest has lowered its own standards for 2017 as it fell short of its goals for 2016 in hiring women engineers. ▪
africa
Driving growth   Takreem El Tohamy, IBM's General Manager for the Middle East and Africa, and the US President's Advisory Council on Doing Business in Africa, expects technologies to drive growth and to transform industries in Africa.  ▪
E-commerce scepticism   In spite of 'Black Friday' having become trending keywords on Google in Kenya, Nigeria & South Africa, the majority of Africans in the Sub-Saharan region do not trust online shopping sites. ▪

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