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Retail Update - powered by LebensmittelZeitung
Wednesday, 22 March 2017

Hello, dear reader,
German discounters are seen as more than just a new form of competition in the US. According to industry experts they are going to be major disruptors, upsetting traditional shopping markets. We have collected some thought-provoking articles about the challenges retailers have to face in their battle for market share. Enjoy the read and have a great day.


Mediterranean expansion   Lidl plans to open a regional distribution centre in Malta as it looks to increase the value of locally sourced products from EUR 3 to EUR 22 million. Over in Italy, discounter Tuodì is up for sale and rumour has it that Aldi considering buying the ailing chain with its 400-plus stores as part of its launch in the country.  ▪
Jobs at risk    Sainsbury's says that it will close a number of phone shops inside its stores, which will affect 160 jobs according to union officials. Nearly 4,000 retail employees have lost their jobs this financial year as major retailers invest in technology.  ▪
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Merger under pressure   Tesco’s GBP 3.7 billion deal with Booker has come under scrutiny as a study reveals that the Tesco-owned One Stop costs more and pays less. A competition investigation into the deal will need to conclude that it will be good for the industry for it to go ahead. ▪
E-commerce moves    Amazon will remove counterfeits from its website as part of a broader push to assure brand owners that the online giant is an ally rather than a threat. Meanwhile, rival Ebay has introduced a new homepage to connect with individual consumers, starting from the minute they visit the site. ▪
Costco partners for delivery   The warehouse club giant makes it easier for customers to shop for groceries by teaming up with delivery service Shipt. Costco plans to expand the delivery service to 50 markets and over 30 million households by the end of 2017. ▪
Changes ahead   Department store operator Kohl's thinks that it has to 'change faster' to better compete with online and other brick-and-mortar retailers, and ailing retailer Sears, which is struggling with losses and declining sales, raises concerns about its future as a business.  ▪
Alibaba likes to entertain   The Chinese e-tailer has fully acquired online ticketing platform Damai as part of its strategy to push forward its entertainment business. This comes after Alibaba invested US$ 145 million in the mobile gaming industry earlier this month. ▪
Zara expands in Southeast Asia   The Spanish fast-fashion powerhouse is launching online sales in Thailand this month, with Vietnam to follow. Also this year, the brand will start selling online in India and open a huge flagship store in Mumbai. ▪
Lotte supports online sellers   The South Korean retailer has offered e-commerce retailers an opportunity to showcase their products in Lotte department stores to help them attract consumers. In the coming months, the company will open 13 additional stores for online brands. ▪
Thought-provoking reads
Lidl is an Aldi   The pending arrival of the German discounter in the US has sparked speculations about its growth opportunities. An industry insider looks at the discount twins, Aldi and Lidl, and reckons that they will play a significant role, with combined annual sales up to US$ 67 billion by 2021. ▪
Amazon's grocery battle   So far, the e-commerce major has struggled to entice shoppers en masse to buy food online, but is determined to make it happen. Bloomberg analyses a number of projects that Amazon is trialling in Seattle as it continues its fight to break into the US$ 800 billion grocery market. ▪

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