Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Friday, 24 February 2017

Hello, dear reader!
French vegetable leader Bonduelle will expand its access to the US market by acquiring a Californian food producer. Get also informed about the latest results from heavyweights such as consumer goods major Henkel, Israel's Shufersal and Portugal's Jerónimo Martin. Across the Atlantic, Hudson's Bay, Kohl's and Loblaw are reporting numbers. Enjoy the read and have a relaxing weekend.

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Europe & Israel
Strategic decisions   France-based global giant Bonduelle has agreed to acquire California-based Ready Pac Foods, a producer of fresh meals. Over in Germany, Rocket Internet might have to overhaul its business model after Swedish investor Kinnevik halved its stakes in the company causing a double-digit drop in shares. ▪
Job offers and layoffs   German discounter Lidl has won approval for a new regional distribution centre in Scotland, which will create 360 jobs, while British department store chain John Lewis plans to make almost 400 employees redundant as part of a major structural shake-up.  ▪
Encouraging results   German consumer goods maker Henkel has posted a 6.9% increase of its net profit to EUR 2.05 billion, boosted by the acquisition of Sun Products. Meanwhile, Israel's largest supermarket operator, Shufersal, also reported a sharp rise in its Q4 profit and Portugal's Jerónimo Martin enjoyed a 7.2% increase in sales in 2016. ▪
USA & Canada
Battlefield price-cutting   Walmart is heating up the grocery wars in Canada with a push of its so-called everyday low pricing and in the US, the retail major is putting pressure on competitor Kroger with its pricing policy. Meanwhile, its e-commerce acquisition Jet.com has started offering Walmart in-house brands.  ▪
Canadian reports   Toronto-based department store chain Hudson's Bay posted lower sales in the fourth quarter, hurt by weaker results at its European operations, while the country's largest food retailer, Loblaw, saw its profits climb 57% to CAD 201 million. ▪
Department store worries   Wisconsin-based retailer Kohl's reported a 15% slump to US$ 252 million in Q4 net income and is determined to downsize its stores, while struggling rival Sears has eliminated 130 jobs at its corporate office as part of its US$ 1 billion cost-cutting plan  ▪
Africa & Asia
Profit jumps and expansion plans   South African retailer Massmart wants to grow outside its home market. The Walmart-owned company reported an almost 16 % rise in full-year profit. Competitor Shoprite, which posted record sales in Nigeria, has to scale back in Africa's most populous nation due to dearth of shopping centres. ▪
Snapdeal struggles   The Indian e-commerce retailer has announced it will cut 600 jobs in the hope of turning to profitability in a market which is increasingly dominated by rivals Amazon and Flipkart. The company currently employs around 8,000 people. ▪
Online opportunities in Singapore   As shopper habits are changing rapidly, the online grocery market in the South East Asian city will grow by more than triple by 2020, according to research firm IGD, which at the end of 2016 valued the online grocery market in Singapore to be worth US$ 130 million.  ▪
Good deeds
Caring for the environment   While Britain's Sainsbury’s has become the first UK retailer to publicly commit to the removal of ‘100%’ of plastics in its cotton buds, competitor Tesco has signed up to become official supermarket sponsor of the ‘Waste Not Want Not’ campaign, launched by magazine The Grocer.  ▪
Quality commitment   French retailer Carrefour continues to improve food quality by implementing additional organic farming and high-welfare practices in its supply chains. The company is ‘experimenting’ with the elimination of all chemical pesticides on fresh produce. ▪

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