The largest US supermarket operator, Kroger, sparks pessimism across the industry as it has lowered its earning guidance. Sportswear giant Nike also combats a slump. Meanwhile, hundreds of shoppers waited in line in Virginia when Lidl opened its first American store. Check out the first images and have a relaxing weekend.




Friday, 16 June 2017





Hello, dear reader,

The largest US supermarket operator, Kroger, sparks pessimism across the industry as it has lowered its earning guidance. Sportswear giant Nike also combats a slump. Meanwhile, hundreds of shoppers waited in line in Virginia when Lidl opened its first American store. Check out the first images and have a relaxing weekend.

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USA & Canada


Headache for Kroger ▪ America's largest supermarket chain has reason to worry. Net income in Q1 dropped down significantly from US$ 696 million last year to US$ 303 million. Consequently, the company is cutting its forecast. According to analysts, Walmart, Aldi and Lidl aren’t the problem, but same-store sales are.



Lay-offs and shutdowns ▪ Nike will cut 1,400 jobs and sell fewer types of sneakers as the shoe and athletic gear maker reorganises its business. Meanwhile, bankrupt retailer Marsh is preparing to close 18 stores that failed to attract bidders and will begin liquidation sales.



Powerhouse Lidl arrived ▪ The German discounter has finally landed in the US and launched its first ten stores with a range of offers that the retailer equates to 'Black Friday' deals. Large queues of curious shoppers gathered before the stores opened. Have a look at some pictures.




Europe


Shake-ups at Esselunga ▪ Chinese investment firm Yida International is interested in Italy's fourth-largest supermarket chain and has reportedly offered a whopping EUR 7.5 billion for the retailer. This comes shortly after Marina Caprotti, (in Italian) daughter of departed founder Bernardo Caprotti, was appointed the company's vice-president.



Karstadt's online acquisition ▪ The German department store chain and its parent company Signa Retail have bought a 70% stake in online marketplace Hood.de. The latter serves about 7 million customers and will be integrated into a newly created joint venture.


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Iceland rewards loyalty ▪ The British supermarket chain has signed a three-year deal with loyalty app Bink to offer a payment-linked technology platform, which enables consumers to automatically collect rewards from stores by using their existing payment card.




Australia & Africa


Woolies cashes in ▪ The Australian supermarket giant is shipping its private label products to China where shoppers are willing to pay huge money for groceries. A new deal struck between Woolworths and online retailer Kaola.com will see nearly 100 products available to Chinese consumers at heavily inflated prices.



Sustainable cocoa production ▪ Snack food company Mondelēz has signed an agreement with authorities in Ivory Coast to support its goal of zero deforestation in the cocoa production process. The company has also signed a letter of intent with Ghana to establish a partnership.




What to watch


Dollar Tree's risky expansion ▪ The Virginia-based discount retailer wants to more than quadruple its network in Canada, as it fights rising competition and slowing sales growth back home. But there are hurdles the company will face and formidable market leader Dollarama is not the only one.



Costco cheaper than Amazon ▪ A new study finds that prices on the US wholesale club's website for national brands are nearly 20% lower than those of the online giant's marketplace. BMO Capital Markets compared pricing on 54 items and believes that Costco works on the "big opportunity" that it has online.



Enormous disruption anticipated ▪ Although the Tesco Booker deal has not yet been confirmed, the prospect of the mega merger is already having a big impact on both the grocery and the convenience sector, with the potential to change the relationship between retailers and suppliers. Retail Gazette sums up the implications.