Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Friday, 20 January 2017

Hello, dear readers!
Amazon and Alibaba have revolutionised the way we consume nowadays. Both are eager to expand their empire. However, Amazon's promise to offer thousands of jobs in the US has a downside. Every job created eliminates one or two or three others. Jeff Bezos might destroy more American jobs than China ever did. Read this exciting analysis and a lot of other industry developments in today's issue. 

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asia & australasia
Alibaba's cross-border deals   Sberbank, Russia's largest bank, is planning a potential joint venture with the Chinese e-commerce company. Alibaba has also agreed to become a worldwide sponsor of the Olympic Games until 2028. It's subsidiary, Alipay, expands its presence in the US through a partnership with luxury travel retailer DFS Group. ▪
Woolies in pole position   The Australian supermarkets investment in cutting its prices has changed the competitive field. For the first time in 30 quarters, rival Coles might not be in the lead in quarterly growth as parent company Wesfarmers warned investors ahead of the interim results. ▪
Buyers to the rescue   The receivers of Pumpkin Patch will have all stores closed across Australia and New Zealand after they couldn't find a buyer for the failed children's wear chain, with up to 560 jobs lost, while Freshmax, one of Australasia's leading produce companies, is looking for investors. ▪
europe
Strong performance   Recently merged retail giant Ahold Delhaize reported solid results for its fourth quarter thanks to it Dutch operation. The group generated net sales of EUR 15.5 billion. In other news, the Dutch-Belgian group announced that it intends to keep investing in Serbia, where it currently operates nearly 500 outlets, including convenience stores. ▪
Scandinavian collaboration   Sweden's Axfood and Norway's Norgesgruppen have agreed to acquire Eurocash, the second-largest food retailer along the Swedish-Norwegian border. The deal deepens the relationship between the two companies, which was previously based on purchases of private label products. ▪
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Portfolio extensions   Lithuania-based retail chain Maxima Grupe has bought the country's largest online retailer, Barbora, in a deal worth EUR 1.4 million, and Swiss dairy processor Emmi is strengthening its desserts portfolio with the acquisition of Italian Fresh Foods, a manufacturer of high-quality desserts. ▪
usa & canada
Amazon and its promises   Only a few days ago, the online powerhouse announced to create 100,000 jobs in the US. However, every job created at Amazon destroys one or two or three others. Check out, what Jeff Bezos doesn't want you to know. Meanwhile, the e-tailer is looking for innovative start-ups in Japan to support them with funding and distribution assistance. ▪
Albertsons reports loss   Same-store sales at the Idaho-based grocer went negative during its third quarter, the retailer said in a filing for a planned public offering. For the three quarters ended Dec. 3, Albertsons reported sales of US$ 45.9 billion and a pro forma US$ 116 million loss. ▪
Management reshuffles   Canadian retailer Loblaw announced a series of executive appointments, including Sarah Davis to replace Galen G. Weston as president of the grocery chain +++ Brett Wing has been named president of ShopRite Supermarkets, a wholly owned subsidiary of Wakefern Food. ▪
africa
Nakumatt offers stake   Kenya’s biggest supermarket chain by sales, has agreed to sell a 25% stake to a foreign fund for US$ 75 million, as part of an effort to bolster its balance sheet. The company is going through some financial stress as expansion investments have increased its debts. ▪
Shoprite keeps rivals at bay   Africa’s biggest food retailer, Shoprite, enjoyed 7.4% half-year sales growth at South African stores. This outperformed like-for-like food growth at Woolworths as shoppers are looking for cheaper options. The department store chain already faces a bleak outlook for this year. ▪

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