Aldi and Lidl are closing in on Britain's Big 4 and growing at their fastest rate in more than two years. Germany's Metro also shows a solid performance but has a problem child. In the US, handbag seller Michael Kors is in trouble, while in Brazil, meat giant JBS faces a billion-dollar fine. Enjoy the read!




Thursday, 01 June 2017





Hello, dear reader,

Aldi and Lidl are closing in on Britain's Big 4 and growing at their fastest rate in more than two years. Germany's Metro also shows a solid performance but has a problem child. In the US, handbag seller Michael Kors is in trouble, while in Brazil, meat giant JBS faces a billion-dollar fine. Enjoy the read!

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Europe


Big gains in Britain ▪ Shoppers are turning to discounters as price rises pick up across the grocery market – a development that helped Aldi and Lidl to take their combined market share in the UK to a new high of 12%. Targeting wealthier consumers, Aldi is challenging high street rivals like John Lewis with its new nautical homeware collection.



... and in Germany ▪ Düsseldorf-headquartered Metro Group has posted sales of EUR 13.77 billion for the second quarter, with a strong performance of its Cash & Carry banner. Problem child continues to be hypermarket chain Real, where sales keep declining. LZ Retailytics takes a closer look.



Partnering with Tesco ▪ Finland's S Group has started selling private labels of the British supermarket leader in its stores, making the most of Tesco's well-tested export machinery. In the UK, Currys PC World, a unit of Dixons Carphone, has sealed a deal with the grocer to roll out concession trials.



Swiss investment in Austria ▪ The Bell Food Group has announced that it is buying a controlling stake in Liechtenstein-based food company Hilcona, which will see it become the sole owner. The Basel-based meat processor also announced that it is building a new production plant in Austria.




USA & Latin America


Billion-dollar fine in Brazil ▪ J&F Investimentos, the controlling shareholder of meat-packing giant JBS, agreed to pay a whopping US$ 3.2 billion to settle a series of corruption investigations. The amount is the highest in leniency agreements (paywall) in Brazil and in the world.



Store struggles ▪ Luxury handbag brand Michael Kors has announced it will shut over 100 outlets throughout the next two years, as it faces mounting losses. Meanwhile, ailing US footwear retailer Payless wants approval to close up to 408 additional stores, after it announced in April to shut 400 stores.


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Digital future ▪ America's leading pet supply retailer, PetSmart, has set the stage to accelerate its digital offerings by completing the acquisition of Chewy, the nation's biggest online retailer for pet products. The US$ 3.35 billion deal was considered as one of the largest e-commerce purchases to date.




Asia & Middle East


Snacks for China ▪ Chinese e-commerce major JD.com has joined forces with Pladis, the international snacks arm of Turkey-based food group Yildiz Holding. The deal will see the companies import snack foods into China, sold directly to local consumers via the online platform.



Sonae expands eastwards ▪ The Portuguese retail conglomerate is planning to roll out its Continente hypermarket banner in the United Arab Emirates and the Middle East. Currently, the company is in a market evaluation phase and seeking partners to introduce its banners in other countries in the region.




Africa


Slow sales at Spar ▪ The South African retail and wholesale group reported a small fall in half-year earnings, which it blamed on poor consumer demand in its home country. Its CEO reckons that political decisions have caused a 'massive loss in confidence' among shoppers. The group now plans to expand in Switzerland.



Improving online experience ▪ Woolworths South Africa is set to bolster its omnichannel shopping experience and has established its stores as online fulfilment centres. The company also implemented a solution from HighJump to improve picking accuracy and efficiency.