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.
asia & australasia
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.
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.
usa & canada
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.
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.