Amazon has knocked it off its third Prime Day, generating approximately US$ 1 billion. Arch enemy Walmart ramps its e-commerce efforts up in India. Over in Europe, Metro can go ahead with its demerger and in the US, a new e-commerce competitor is about to enter the market. Enjoy the read and feel free to share.




Thursday, 13 July 2017





Hello, dear reader

Amazon has knocked it off its third Prime Day, generating approximately US$ 1 billion. Arch enemy Walmart ramps its e-commerce efforts up in India. Over in Europe, Metro can go ahead with its demerger and in the US, a new e-commerce competitor is about to enter the market. Enjoy the read and feel free to share.

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Europe


Merger and demerger ▪ Germany's Metro has been given the green light to split its food business from its consumer electronics division, while British grocer Tesco is still in limbo regarding its GBP 3.7 billion Booker deal. An in-depth investigation will be carried out and a final decision is expected by Christmas.



Russian announcements ▪ Russia's O'Key group, which appointed a new director for its hypermarket business, has signed a strategic partnership agreement with discount retailer Familia. The cooperation will see the latter open stores in two of O'Key's outlets and both will engage in joint marketing campaigns.



Targeting the countryside ▪ Belarus retailer Eurotorg is ready to expand with a new store concept into remote regions and is preparing to tap into settlements of 400 inhabitants or less. The concept sounds promising, says LZ Retailytics and is convinced that the grocer will be able to overcome the - mostly political - obstacles.




USA


New kid on the block ▪ San Francisco-based start-up Brandless has announced its official launch this week. Headed by a former Target exec, the online concept offers “premium” shelf-stable food and household staples. All items are sold at a single price, challenging both traditional retailers and private labels.



Pressure on suppliers ▪ Long known for squeezing its vast network of suppliers, Walmart is about to step up the pressure. The focus this time is delivery scheduling and the retailer is about to fine for late and too early deliveries and wrong packaging. The programme aims to add US$ 1 billion to revenue.



Dot on top ▪ This year’s Amazon Prime Day was the biggest sales day in the company’s history, surpassing both Black Friday and Cyber Monday. Sales were up more than 60%, as tens of millions of Prime members made a purchase. Digital assistant Echo Dot was the bestselling item globally.




Asia


Alliances in China ▪ Supermarket chain Vanguard and Tesco's Dunnhumby have joined forces on data science and will together establish a data firm. US tech giant Apple has also partnered with a local service company to set up its first data centre in China and meet new cybersecurity rules introduced by Beijing.



Battleground India ▪ Adding another dimension to the e-commerce rivalry, Walmart is reportedly talking to local e-grocers for partnerships and poised to open more wholesale stores in the country. Unfazed by competition heavyweights, Mumbai-based Reliance Retail is confident to become India's top online grocer by 2020.




Insider Insights


Playing the game ▪ With its record-making media statement to create nearly 4,000 jobs in Britain, the German discounter Aldi attracted all the attention and generated positive press. LZ Retailytics takes a look at the expansion plans for the UK.



Posh food fight ▪ Marks & Spencer has delivered a better-than-expected performance in clothing and homeware this week, but shocked investors with a slowdown in food sales. This could be a major concern for CEO Steve Rowe as not only mainstream supermarkets but also discounters have upped their game.