Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Thursday, 06 April 2017

Hello, dear reader,
The heat is coming out of the supermarket price wars Down Under, according to analysts, who also think that Australians love affair with Aldi may be waning. However, the German discounter proves them wrong. In China, Amazon challenges its rivals, and in Europe, more Tesco employees have reason to worry.


Australia & Asia
Aldi keeps on investing   A study of Australia’s A$105 billion supermarket sector suggests the German discounter is losing momentum in its key east coast markets as Woolies lures back shoppers. Unfazed by the prediction, Aldi will open 25 new stores a year in the region and spend at least half a billion dollars smartening up its ageing fleet. ▪
Amazon increases pressure in China   The US online mega retailer pushes into China's billion-dollar global logistics industry by expanding a recently launched programme, Amazon Logistics, which gives wholesalers the opportunity to skip established shippers. It might force rival Alibaba to step up. ▪
Convenient results   Manila-based retail chain Philippine Seven reported a 16.6% increase in net profit last year to US$ 23.5 million. The company attributed the growth to the opening of 410 new 7-Eleven convenience stores, which offset the closure of 17 outlets. ▪
Europe
More Tesco jobs in jeopardy   Britain's biggest retailer has announced plans to axe its 24-hour shopping service in eight stores, putting 3,000 jobs at risk. The fresh shake-up will also merge different service desks so that customers can get everything they need in one place. ▪
Danish online initiative   In a bid to combat the growing presence of foreign e-commerce giants such as Amazon and Alibaba in Denmark, Dansk Supermarked, which operates the Netto retail banner, has unveiled online marketplace Wupti.com. It offers a platform for all Danish retailers. ▪
Disruption ahead   British wholesaler Nisa reports rising sales and a strong growth in member numbers for Q4 despite 'tough' trading conditions ahead of the Tesco Booker deal. Meanwhile, newcomer ManoMano enjoyed a successful first year in the UK. The DIY marketplace has partnered with over 100 local merchants. ▪
USA & Canada
Hudson's stays focused   The Canadian retail group reported a C$ 152-million loss in its fourth quarter and said it would cut costs and capital spending. But that doesn’t mean it has completely shut the door on acquisitions. The company also plans to open 10 Hudson’s Bay department stores by the end of this year. ▪
Walgreens misses expectations   Despite gains in market share and comparable pharmacy sales across the US, Walgreens Boots Alliance missed analyst expectations for its second quarter, but CEO Stefano Pessina remains optimistic in 'challenging conditions' and goes ahead with pushing the pending acquisition of Rite Aid. ▪
US clears Chinese mega deal   State-owned ChemChina and Swiss agri giant Syngenta have agreed to divest themselves of three products to gain approval from American antitrust regulators for their US$ 43 billion-merger. The European Commission has also approved the proposed acquisition. ▪
Africa
Pick n Pay cuts rewards   The South African retailer has overhauled its Smart Shopper loyalty programme, halving the value of the cash rewards but saying it is making the rewards more personal and easier to access. Early indications on social media are that the changes have not been well received.  ▪
Mall competition in Kenya   The high concentration of shopping malls in Nairobi has raised the stakes for its operators to achieve returns despite high occupancy rates by merchants. Mall retailers will have to be creative to attract and retain clients, says asset management firm Cytonn Investments.  ▪

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