Tesco is firing the latest salvo in the cut-throat online supermarket sector and expanding its delivery service. Across the Atlantic, Target also jumps on board with next-day deliveries, challenging Amazon and Walmart, while Lidl proves its success in the US market. Enjoy the read and feel free to share.




Wednesday, 28 June 2017





Hello, dear reader,

Tesco is firing the latest salvo in the cut-throat online supermarket sector and expanding its delivery service. Across the Atlantic, Target also jumps on board with next-day deliveries, challenging Amazon and Walmart, while Lidl proves its success in the US market. Enjoy the read and feel free to share.




Europe


Speed is of the essence ▪ It’s game on as Tesco announces to extend its one-hour deliveries in London, directly competing with Amazon. LZ Retailytics reckons it has more marketing value than volume. Meanwhile, British supermarkets enjoy the fastest growth in 5 years, but Lidl and Aldi still top them with a double-digit growth rate.



Pressure is on ▪ Switzerland’s Nestlé will buy back the largest number of shares in a decade, up to US $20.8 billion. The move appears to be prompted by Third Point, the shareholder with a US$ 3.5 billion stake, which is pushing for Nestlé to more aggressively boost performance.



Eurelec steps up efforts ▪ With an increasingly challenging retail market, the sourcing organisation of French E. Leclerc and German Rewe Group has amped up its defenses and aims to negotiate the biggest possible number of international brand suppliers. Mid-term goal is to increase the current volume of EUR 3 million to EUR 15-20 million.




USA & Canada


Lidl powers ahead ▪ Only weeks after breaking into the US market, the German retailer flaunts its success, announcing it is investing US $100 million into a regional headquarters and distribution centre in Greater Atlanta. Clearly well on its way to fulfilling the target of opening 100 stores within the year.



Race to deliver ▪ Target has thrown its hat in the ring, announcing a next-day delivery service for online purchases, launching the pilot on home-turf. The discounter will compete with both Walmart and Amazon, but at a fraction of the cost. Meanwhile, Canada’s Couche-Tard has the approval to buy out rival CST Brands but must sell up to 71 of its convenience stores.


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Brick and mortar moves ▪ Footwear icon Skechers has debuted a new superstore format, featuring state-of-the-art lighting and visual effects. Here are some images. Online store ThredUp is also going physical, opening its first-ever store, with plans to add a further four by the end of the year.




Asia


Global ambitions ▪ Malaysia-based Korean-concept retail store Kioda is expanding into the Indian market and plans to open 300 stores by 2021 to continue its growth globally. While most products will be imported from its home country, it aims to source 25 to 30% locally.



AS Watson moves on ▪ The Hong Kong-based health and beauty retailer, which just missed out to acquire Holland & Barret, isn’t giving up on its stores and has announced it will open 1,400 new stores globally this year, 500 in China. The company will also spend US$ 160 million in technology, logistics and staff training.




Thought-provoking reads


Job killers ▪ While it may be tempting to blame Amazon for destroying the US retail landscape, Forbes reckons that retailers can only blame themselves thanks to their bad leadership. Gross mismanagement, poor strategic decisions and tax issues are the reasons for the slow but steady decline of Kenya’s supermarket giant Nakumatt.



The wrath of EU ▪ The European Union has slapped Google with a record US$ 2.7 billion fine for abusing its online search dominance and promoting its own search results ahead of competitors. Google, which has publicly disagreed with the findings, has 90 days to address the complaints or face further penalties.