Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Thursday, 09 March 2017

Hello, subscribers,
Amazon keeps moving forward. The US e-commerce juggernaut has just launched its Prime membership programme in Mexico, made its first move into the Australian market and has opened another physical store. Also, does Generation Z really prefer to shop online? Have a great day, and if you enjoy this edition, please share.

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ASIA & AFRICA
Foreign arrivals   Amazon has made its first official move into the Australian market by appointing agents to look for distribution sites, and is currently advertising for 105 jobs in Sydney +++ In line with its plans to expand, Majid Al Futtaim, Dubai business partner of French retailer Carrefour, has launched two hypermarkets in Nairobi and Egypt.  ▪
Logistics lab in China   JD.com, which is part-owned by US retailer Walmart, has partnered with two other companies to develop a facility called the "IoT + E-commerce Logistics Lab.” Located in Beijing, the lab combines talent and resources in areas such as logistics management and data collection.  ▪
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Emerging opportunities   According to analysts, Chinese brewers are on the cusp of multi-year profit growth due to likelihood of large-scale mergers and acquisitions +++ A recent study concludes that, although sales in the country have slowed during the past three years, the FMCG category in India has the potential to grow by double-digits.  ▪
EUROPE
Majors give green light   In their battle against obesity, six industry leaders, among them Coca-Cola and Mondelez, have decided to add nutrition logos modelled on the UK’s traffic light label to their European products. Italy, however, is fighting the introduction of the system due to concerns over the repercussion it could have on exports of products. ▪
Tesco initiatives   Following a 20% increase in demand for natural and organic food for pets, UK’s largest supermarket chain has launched “Freshpet,” a high-quality range of food for cats and dogs. Tesco has also extended its same-day click-and-collect service to over UK 300 more stores.  ▪
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USA & Latin America
Amazon continues to stretch    Less than two years since beginning operations in Mexico, the US e-commerce leader has launched its annual membership programme, Amazon Prime, which offers unlimited free shipping of more than 20 million items. Over in the US, the company is hiring employees to staff its 10th bookstore in Washington.  ▪
Expansion plans   To improve lead time and drive efficiency, US retailer Kroger is preparing to construct a new US$ 60 million distribution centre in North Kentucky, creating nearly 100 new jobs, and newcomer Fresco y Más, a retailer that targets Hispanic customers, is set to launch five stores in Florida.  ▪
Nestlé eyes Cuba   Swiss food giant Nestle is close to reaching a deal with the Communist-ruled island for a joint venture to build a US$ 50 million to US$ 60 million factory to produce coffee, biscuits and cooking products in Havana. Cuba has introduced a new law to attract foreign investment. ▪
Survey results
Gen Z surprises   Though dubbed the “mobile-first generation,” Generation Z still prefers brick-and-mortar stores, according to a new report by Euclid Analytics. It found that 66% of Generation Z like to see, hold and try products before buying.  ▪
Britain’s most unloved ingredients   Supermarket chain Waitrose recently carried out a survey of 1,000 adults in the UK. The purpose was to reveal the top-five least-used ingredients. Five spice came on top, followed by desiccated coconut.  ▪

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