Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Wednesday, 15 February 2017

Hello, subscribers!
For the first time ever, Amazon reveals how much its Prime and other subscription services make — and it’s a lot. Also, Alibaba takes its battle with intellectual property agencies, that it believes file fake claims, a step further and takes one of them to court. Have a great day, and if you enjoy this edition, please share.

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USA
Growth continues for Amazon    In its latest annual filing, the US e-commerce behemoth has revealed that its Prime membership programme and other subscription services make US$ 6.4 billion and are growing at 40% per year +++ In other news, Amazon is expanding its logistical capabilities and has pre-leased a logistics space in Eastvale, California. ▪
BJ’s Wholesale for sale   The Massachusetts-based retailer, which owns stores and petrol stations in 15 states, could be changing ownership. It has been reported that the company’s owners, Green & Partners and CVS Capital Partners Ltd, have hired investment bankers to advise them on options.  ▪
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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
ASIA & AUSTRALIA
Alibaba heads to court   Following its call to boycott several intellectual property agencies, the e-commerce giant has filed a lawsuit against Hangzhou Wangwei Technology Co for making false claims against its vendors. Alibaba is demanding compensation of US$ 160,000 and an open apology. ▪
Scandal-ridden Domino’s posts mixed results   Against a backdrop of allegations of unethical behaviour, including underpayment of staff, the Australian pizza chain’s international network sales exceeded A$ 1 billion in the December half. However, the reported net profit of the biggest franchisee for the Domino's Pizza brand in the world disappointed analysts. Its chief executive Don Meij says the company has zero-tolerance for wage fraud, but what does that actually mean?  ▪
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A2 Milk is a hit in China   The Australia-based company is enjoying strong demand for its infant formula in the country and saw a boost in sales in the December quarter, largely helped by buoyant sales during "Singles Day." Revenue for A2 grew in China by a whopping 348%.  ▪
EUROPE
Aldi UK and Waitrose say "Cheers!"   German discounter Aldi - the fifth largest grocery player in the UK and winner of top wine awards - has launched a new affordable range of luxury wines created by a leading wine maker. Prices start at just GBP 5 +++ Meanwhile, Waitrose has released a private-label Indian Pale Ale beer magnum, which comes in a 2-litre bottle. It is the first UK supermarket to do so.  ▪
UK is beating recycling targets   The packaging recycling rate in the UK has increased by 6.8% in 2016, according to data from the Environment Agency. This will exceed the EU-mandated packaging recycling target by nearly 500,000 tonnes.  ▪
TRENDS TO WATCH
Customer loyalty in crisis    According to the Accenture report, “Seeing Beyond the Loyalty Illusion: It’s Time You Invest More Wisely,” which gauged the experiences and attitudes of consumers worldwide, many organisations are throwing away billions of dollars on loyalty schemes that are not effective in the digital age. The study found that loyalty points are sitting unused in their millions and 78% of US consumers are retracting their loyalty at an alarming rate.  ▪
Brits are mobile shoppers   The Centre for Retail Research and VoucherCodes.co.uk have revealed that they expect UK consumers to spend GBP 27.02 billion for purchases on mobile devices this year, a 26% increase from 2016. According to their research, the UK will make more mobile transactions than any other European market.  ▪

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