Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Tuesday, 21 February 2017

Hello, subscribers
In its quest to gain profits from brick-and-mortar sales using big data, Chinese e-tail behemoth Alibaba has partnered with another retailer, the largest to date. Also, due to their inability to agree on the terms for a deal to form Africa's largest retailer, talks between Steinhoff and Shoprite have ended. Have a great day, and if you enjoy this edition of RetailUpdate, please share.


AFRICA & USA
Steinhoff/Shoprite talks are over   Negotiations to create Africa’s largest retailer have ceased between the two companies because they were unable to agree on the share-exchange ratio for the proposed deal. Investors approved of the move, and the share prices of Shoprite and Steinhoff increased 6.1% and 7.11% respectively.  ▪
Amazon raises its game   The tech giant counters Walmart's latest e-commerce move. Now that Walmart offers free two-day shipping for all orders over $35, Amazon has lowered its free shipping minimum back to $35 +++ Hoping to benefit from the country’s comparatively low wages and its proximity to the German market, the US e-commerce marketplace will open its fifth logistics centre in Poland this year. Amazon currently employs more than 7,000 people at its three centres in the western part of the country.  ▪
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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
Toys "R" Us sheds jobs   The iconic US toy company has announced the lay-off of between 10-15% of its home office employees out of Wayne, New Jersey. The company says the changes are to contain costs and ensure it has the right structure for growth.  ▪
ASIA
New partnership for Alibaba    The Chinese e-commerce giant has formed another strategic partnership. This time it has teamed up with Shanghai-based Bailian Group, the largest retailer to join forces with Alibaba so far in its push to apply big data to boost profits from brick-and-mortar sales. +++ Ant Financial, the company that manages Alipay, has extended its global reach once again and invested an undisclosed sum in Mynt, a financial venture from Globe Telecom in the Philippines.  ▪
Bo’s Coffee nears one hundred   The Filipino coffee chain plans to open its 100th store in a couple of months. Bo’s also intends to launch its first international store soon after in Qatar following the securing of licensing.  ▪
Beer losing fizz in China   According to BMI research, beer consumption in the country has declined over the past two years and will continue to do so for the next five. The reasons include changing tastes, growing health awareness and a slowing economy.  ▪
EUROPE
Unilever shares plunge    Following Sunday’s announcement that Kraft Heinz had withdrawn its US$ 143 billion takeover proposal, shares in Unilever have dropped about 7%. Assuming Kraft Heinz will come back for another try, the Anglo-Dutch consumer goods giant’s CEO, Paul Polman, must work hard at cutting the fat.  ▪
Delivery developments   German parcel and express service provider DPD is entering the online food delivery market, and its first customer is meal-delivery company HelloFresh. The company plans to take on more customers next year +++ French retailer Auchan is working with delivery company Colisweb to trial a new delivery service in Bordeaux.  ▪
Investments in production sites   Nestlé Italia is spending EUR 90 million to restructure its water and soft drinks factory in San Pellegrino Terme. Over the next six years, the company aims to expand production by 25% +++ Italian food company Barilla is investing EUR 50 million in its Rubbiano plant to increase production capacity of its pasta sauces. ▪
BRITISH TRENDS
The Brits love organic   According to major UK retailers, demand for organic food is higher than it has been for over ten years. Tesco says that its sales of organics have increased 15% in the past year; home-delivery service Ocado says sales increased 16% over the same period.  ▪
Steady growth for online retail   UK year-on-year online retail sales were up 12% in January, according to latest figures from the IMRG Capgemini e-Retail Sales Index, and the average basket of goods ordered online during that month was valued at GBP 85, up from GBP 79 the previous year.  ▪

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