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Retail Update - powered by LebensmittelZeitung
Thursday, 19 January 2017

Hello, dear readers!
Brick-and-mortar retailers keep a close eye on Amazon Fresh. Still, consumer adoption of online grocery sales seems to be a long way off in the US. So why aren’t more groceries sold online? And when will the business explode eventually? Look for answers in our worthwhile reads section. Find more thought-provoking stories in today's edition and if you like it, please share.


asia & south pacific
Alibaba ramps up fight against fakes   The e-commerce powerhouse has teamed up with some of the world’s most counterfeited brands in an effort to stamp out vendors selling fake products from its marketplaces. Alibaba will assist the brands, which include Louis Vuitton and Samsung, to block, identify and remove pirated goods. ▪
Australian cheese company buys Vegemite   In order to acquire a strong presence in the domestic spread business, Australia-owned cheese manufacturer Bega Cheese has purchased Vegemite and other Kraft brands from US multinational Mondelēz International for A$ 460 million, a deal that brings an iconic brand home. ▪
Bursting with Inspiration: Visit IFE 2017
IFE 2017 (The International Food & Drink Event) is the UK's biggest and most important food & drink trade show. Taking place 19-22 March in London, the home of innovation, the event provides an unrivalled opportunity to source innovative and new food & drink from 1,350 British & global suppliers. Register for your free ticket at
Shopping mall expansions   Following on from opening 60 shopping malls across the Philippines in 2016, property giant SM Prime Holdings has announced plans to open an additional four malls this year +++ In its first foray into retail, Singapore developer CapitaLand plans to construct an office tower in Ho Chi Minh City, Vietnam, which will include at least four stories of shopping mall. ▪
Tesco does good   The UK retailer has announced that since launching last year, its Community Food Connection scheme has supported more than 3,300 groups and charities by contributing about five million meals. Meanwhile, a Tesco store in Scotland plans to reduce stress at the checkout for less-abled customers by introducing a “relaxed lane” where staff are trained to spot special needs customers. ▪
Latest UK results   Despite a strong Christmas, food manufacturer Premier Foods has posted a drop in group sales during Q3. Consequently, its profit expectations are likely to be down 10% +++ After some tough years, Co-operative Group is back with a 3.4% rise in like-for-like food sales during Q4 +++ Luxury fashion house Burberry’s UK sales rose by 40% during the last three months of 2016 due to foreign shoppers exploiting the Brexit-weakened pound. ▪
Going strong in Latin America    The French retailer Carrefour has posted better than expected results for the fourth quarter. In Latin America sales growth proves robust and in the vital domestic market things are looking up again. However, in China the picture was less rosy. Overall sales rose 3.9% to EUR 23.37 billion.   ▪
 usa & canada
Coke commits to Brazil   US soft drink giant Coca-Cola will invest EUR 868.1 million in the country this year, despite two years of recession. The investment, which is 10% more than in previous years, will be in infrastructure (factories), equipment and marketing and includes a new plant in Rio de Janeiro. ▪
Gains & losses   Struggling retailer Sears Canada is being given CAD$ 3.5 million from the New Brunswick government to open a business centre, which is expected to create 180 new jobs +++ As part of its ongoing plans to streamline operations, supermarket chain Whole Foods will close its metro Atlanta food preparation facility, which will result in the loss of 149 jobs. ▪
Target pessimistic    The US discount retailer experienced a 1.3% decline in same-store sales over November and December, despite ramping up the amount of advertisements. As a result, the company has issued a profit warning (paywall). ▪
worthwhile reads
Transform or disappear   If they don’t transform digitally, almost half of leading retailers will be out of business, according to a study, based on data from 200 retail executives. Retailers' digital transformation is moving too slowly, and companies may not be investing in the right places. ▪
Unsuccessful online groceries   Consumer adoption of online grocery sales seems to be a long way off in the US, despite the fact that Amazon has started its big Amazon Fresh initiative. Magazine Forbes ponders why online grocers are so unsuccessful and what Amazon is doing about it. ▪

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