Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Wednesday, 08 February 2017

Hello, dear reader
The first German supermarket to sell waste food has opened in Cologne. Though, perhaps, this is just a small step towards a zero-waste society, it will most certainly provide a major shift in social awareness. Meanwhile, Britain is still coping with a lettuce crisis and German consumers have increased their fruit and veg spending. Read these stories and a lot more in today's issue. You are welcome to share the news.

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ASIA & AUSTRALIA & MIDDLE EAST
Walmart gets stronger in China   The American retail giant continues to consolidate its position in China by increasing its stake in e-commerce company JD.com to 12.1%, worth about US$ 4.87 billion. Meanwhile, Korean retailer Lotte is closing stores in the Beijing area amid rumours it might exit China due to a series of regulatory investigations. ▪
Aussie suppliers squeezed   Food producers and manufacturers are being warned that the supermarket price squeeze will continue for some time yet. This has prompted the Food and Grocery Council to warn that companies will be forced to move off shore in order to cut costs.  ▪
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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
www.ife.co.uk/lebz
Lulu expands   The Abu Dhabi-headquartered retail group plans to open 20 hypermarkets in Saudi Arabia by 2020. At the moment, it operates eight outlets in the country and has just launched a hypermarket in the north-western province of the kingdom. ▪
Europe
Top-level decisions   German discounter Lidl has replaced its chief executive because of differences over strategy (in German). The company promoted Dane Jesper Hojer to the CEO role, replacing Sven Seidel. Over in Düsseldorf, shareholders of retail giant Metro have overwhelmingly approved the company's demerger into two different entities. ▪
Southern expansions   Coop Alleanza 3.0, Italy’s largest cooperative, has increased its foothold in the Calabria region by signing a franchising agreement with leading regional grocery retailer AZ group. Latest figures from Kantar Worldpanel show that Mercadona remains the largest supermarket chain in Spain. ▪
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Promising results   Swedish retailer Axfood thinks that 2016 was its 'best year' to date as it reported record full-year sales figures and a consolidated net sales of EUR 4.5 billion, while UK drug maker GlaxoSmithKline is expected to post a quarterly profit of GBP 1.1 billion, from a net loss of GBP 354 million a year earlier. ▪
USA & Canada
Ahold Delhaize restructures brands   The retail giant will merge two of its US Stop & Shop divisions into one single brand and has created an operational support organisation called Retail Business Services, which will serve companies throughout the Ahold Delhaize portfolio and also offer financial and legal services . ▪
Popular Amazon Pay   More than 33 million customers have used the payment service of the online mega retailer to make a purchase in 2016. According to Amazon, payment volume nearly doubled last year. Amazon hopes to keep building the service and using it for simpler checkouts at stores.  ▪
Mondelēz misses estimates   The Illinois-based food giant is challenged by a strong dollar that eroded the value of sales outside the US. The company reported lower-than-expected holiday-quarter sales and expects its 2017 revenue growth to be hit by 1%. ▪
Food for thought
Waste for sale   The Good Food store has opened in Cologne. It is the first of its kind in Germany and the third in the European Union, selling products of all kinds, from vegetables to beer with the unusual twist that all these products would otherwise have been destroyed as waste.  ▪
Veggie trends to watch   Great Britain is still facing a shortage of greens, mainly courgettes, which could cost supermarkets up to GBP 2 million in lost sales and might cause Brits to rethink Brexit. Meanwhile, vegetable sales in Germany are expected to have risen by almost 5% to EUR 6.9 billion.  ▪

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