Recently, a number of foreign retailers have shut down factories in China. So, the question is, what’s causing the exodus? In the UK, Sports Direct buys a stake in an ailing fashion chain, and in the USA, e-commerce giant Amazon reports profit growth but misses analysts’ expectations. Have a great day, and if you enjoy this edition, please share.
Q4 increase for Amazon
The US e-tail giant reported a 22% increase in sales for the fourth quarter reaching US$ 43.74 billion. The result, however, fell short of analysts’ expectations. According to a report by PowerReviews, which interviewed more than 2,000 consumers over 18, Amazon continues to dictate the pace of online retailing.
Source Great British Foods at IFE 2017
IFE 2017 (The International Food & Drink Event) takes place 19-22 March at ExCeL London. The UK's biggest food & drink event will be packed with innovative food & drink products from 1,350 suppliers. IFE is divided into 9 easy to navigate sections, including a Great British & Irish foods section. Find inspiration for your retail shelves at the show - get your free trade ticket at
Weak Christmas for Metro
The Cash & Carry business and the Real hypermarkets have weighed on Metro's profit in the important Christmas quarter. The German retailer has posted earnings before interest and taxation of €821 million - a 0.8 per cent fall. Sales increased 0.1 per cent on a like-for-like basis. Metro plans to split into two companies this year.
Sports Direct acquires
The UK retailer has purchased 10.7 million French Connection shares equaling an 11% stake in the ailing UK fashion chain. The move will enable Sports Direct to disrupt any takeover bids for the retail group.
As part of a GBP 500 million investment plan by parent company Wesfarmers, Australian DIY retailer Bunnings has opened its first UK store in Hertfordshire. The plan is to open at least four stores by June and 10 by year end.
ASIA & NEW ZEALAND
Foreign firms quit China
The world’s largest manufacturer of hard-disc drives, US-based Seagate, has shut down its factory in Suzhou, which cost 2,000 jobs. This move comes on the heels of other big names such as Marks & Spencer as well as Metro closing factories. What is causing foreign firms to exit China? +++ Meanwhile, French retailer Carrefour’s China arm has launched its largest ever branding campaign in the country at the end of 2016.
Amway India opens stores
To increase consumer outreach and provide consumers and distributors with a platform to buy products directly, Amway India will open 50 stores in the country by the end of 2018. It will be the first unit in the Michigan-based company’s global operation to have a significant brick-and-mortar presence.
Watch out for caterpillars
The South African government has warned that corn farmers are suffering extensive damage from what seems to be a foreign caterpillar that has wreaked havoc in other countries. Though not confirmed, the culprit is thought to be the fall armyworm, which is native to the Americas