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Retail Update - powered by LebensmittelZeitung
Friday, 17 March 2017

Hello, subscribers,
Retail and FMCG majors are engaged in overseas activities. In the US, Italian chocolate giant Ferrero is going to buy confectioner Fannie May, and logistics provider DHL helps to speed up’ the last mile'. Indian payment service Paytm, backed by Alibaba, has launched in Canada, while the Chinese giant collaborates in Switzerland. Enjoy the read and have a great weekend.

USA & Canada
Ferrero in shopping mood   In a move to bolster its overseas presence, the Italian manufacturer of Nutella has signed a deal to purchase chocolate manufacturer Fannie May for US$ 115 million. The Chicago-based company employs 750 people. Just recently, Ferrero has completed the acquisition of Belgian luxury biscuit brand Delacre.  ▪
Speeding up delivery   Logistics company DHL e-commerce, a division of Deutsche Post, is helping US retailers to speed up 'the last mile' of their omnichannel shopping experience by expanding the functionality of some of its fulfilment centres. The company is investing in storage to tackle shipments of up to 15,000 orders per day. ▪
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Dollar General lifts pay   Following an 13.7% increase in Q4 sales, the US discounter has announced it will increase wages and training for store managers, replicating similar moves by larger retailers such as Walmart and hoping it will improve service levels. ▪
Amazon’s latest moves   The US e-commerce giant is widening its virtual assistant’s audience. Alexa, which answers questions and checks the news, will be integrated into its main shopping app. In Cincinnati and Columbus, Amazon has added beer and wine to its one- and two-hour delivery service, Prime Now.  ▪
Reporting results   Sainsbury's posted a slight fall in sales at its supermarkets in Q4 due to higher import costs, but the newly-acquired Argos enjoyed strong growth and outperformed its rivals +++ Because of considerable progress in its corporate strategy during 2016, Portuguese retail group Sonae announced a turnover of EUR 5.4 billion, surpassing five billion euros for the first time.  ▪
Producers rush to sign    Just two weeks since Morrisons, the UK’s fourth-largest supermarket, began its search for 200 new local food producers, it has received more than 500 applications. The retailer decided to add more UK suppliers following a report revealing that Britain imports considerably more food than it exports.  ▪
Enhancing customer experience   Russian retailer Dixy has added Moscow to its social-discount programme, and in Italy, Milan-based supermarket chain Esselunga has become the latest retailer across Europe to offer a click & collect service.  ▪
Alibaba’s ‘smart’ investment    As it strives to dig deeper into the car industry, the Chinese e-commerce behemoth is the lead investor in Swiss-based smart-car technology developer WayRay. Meanwhile, Paytm, the Indian mobile payments start-up, backed by Alibaba, started its global expansion by launching its service in Canada ▪
Down & up Down Under   Australian department store chain Myer blames the Australian dollar and low consumer confidence for the poor results it posted. +++ The Glen, a major shopping mall in Melbourne, invests A$ 490 to transform into a destination that combines retail, dining and entertainment.  ▪
Survey results
Know-it-all shoppers   According to research by Canadian software provider Tulip Retail, 83% of shoppers think they know more than retail store associates due largely to conducting prior online research.  ▪
Consumers slow to pick-up   Despite more omnichannel retailers offering buy-online-pick-up-in-store services (BOPIS), only 60% of shoppers surveyed at 20 US malls have used the service, according to a report by ChargeItSpot.  ▪

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