While it is about to celebrate its US entry in style, Lidl doesn't stay idle in other parts of the world - in Austria, the discounter rolls out a new app and continues to grow in Croatia. Read also about the endeavours of American retailers to embrace technical transformation and feel free to share. RetailUpdate remains FREE.




Thursday, 15 June 2017





Hello, dear reader,

While it is about to celebrate its US entry in style, Lidl doesn't stay idle in other parts of the world - in Austria, the discounter rolls out a new app and continues to grow in Croatia. Read also about the endeavours of American retailers to embrace technical transformation and feel free to share. RetailUpdate remains FREE.

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Europe


On a winning streak ▪ German discounter Lidl, which gets increasing attention in the US (see below), has become the second largest grocery retailer in Croatia and was awarded in Britain for inspiring children to eat fresh produce. The company is also set to roll out a smartphone app in Austria that shows instore product availability.



Carrefour expands hybrid format ▪ The French retail giant bets on its successful Brazilian concept and has opened two more Supeco outlets, hybrids between discounter and cash & carry, in Romania. LZ Retailytics reckons that this is a significant addition to its existing four units, but sees also risks in the in-between concept.



Inditex defies the odds ▪ The parent company of fashion icon Zara saw double-digit profit jumps as sales surged in the first quarter to GBP 4.90 billion. Its global expansion continues with store openings and the launch of digital platforms in key markets such as China.




USA & Canada


Embracing transformation ▪ Wegmans Food Markets joins the on-demand delivery game. Through a partnership with Instacart, the regional grocer now offers one-hour deliveries, while wholesale retailer Supervalu has started to replace its ageing IT infrastructure with cloud technology as part of a massive revamp.



Successful bidders ▪ Retail giant Kroger is expanding its footprint and a new competitor, Fresh Encounter, is entering the market by picking off the most attractive locations left standing under bankrupt Marsh Supermarkets. Both companies are dividing up 26 of the latter's 44 remaining stores.


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Crunching numbers ▪ Toys 'R' US saw its sales drop in a rough first quarter. The toy retailer reported an increased net loss of US$ 164 million. Thanks to digital ordering, Panera is in a better position. The bakery-café chain is on track to hit US$ 1 billion in sales this year and expects to double that by 2019.




Asia & Australia


Aldi gets transparent ▪ After a lengthy contemplation phase, the German discount giant has signed up to the Tax Transparency Code in Australia, reinforcing its commitment to "operating with the highest levels of integrity and transparency." The code is supported by big business lobby groups.



Toy joy in China ▪ US toy manufacturer Mattel hopes to triple its business in the Chinese market by 2020 through digitally connected toys and games. Mattel has about 2% market share in the country, lagging behind Lego, which has 2.8%. Competitor Hasbro is catching up with 1%, according to Euromonitor.




Survey results


Lidl excites US shoppers ▪ The German discounter, which will open its first US store today, could remove US$ 1 billion in local sales new according to a new survey. Consumers, however, are overwhelmingly eager to shop at Lidl. But it might not be all smooth sailing for the newcomer - here is an image gallery of its fiercest rivals (German captions).



Cash is still king ▪ The Bank of England’s chief cashier is convinced that contactless and electronic payments are not a threat as cash is 'alive and kicking'. But this could change as new research from Mintel highlights the continued growth in the UK online grocery market with sales forecast to increase 12% this year to GBP 11.1 billion.