Facing heat from Amazon, traditional retailers have to be innovative to stay on top. Target has countered retail gloom with an upbeat outlook, while an insider suggests that Walmart should buy Costco to compete. Thought-provoking, isn't it? Check also out how German retailers are selling to the world. Enjoy the read!




Friday, 14 July 2017





Hello, dear reader,

Facing heat from Amazon, traditional retailers have to be innovative to stay on top. Target has countered retail gloom with an upbeat outlook, while an insider suggests that Walmart should buy Costco to compete. Thought-provoking, isn't it? Check also out how German retailers are selling to the world. Enjoy the read!

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USA & Canada


Defying doomsday ▪ US discounter Target expects an increase in sales and a profit that tops expectations in the current quarter. The retailer has been on a US$ 7 billion mission to update 600 stores. Fellow retailer J.C.Penney is similarly optimistic, jumping into the US$ 20 billion toy industry with the launch of toy shops in its brick-and-mortar stores.



Executive changes ▪ Kroger has named Aldi veteran Liz Ferneding to take over the helm at its Ruler Foods discount division, succeeding Paul Bowen. Lidl US, on the other hand, approaches traditional retail for talent and has hired an ex-Walmart director, Kevin Sweet, as its new head of real estate.



Strategy adjustments ▪ Pittsburgh-based grocer Giant Eagle has signed a contract with software company Symphony to improve collaboration with suppliers. Gourmet speciality chain Fresh Market is changing into a traditional grocer and has rolled out lower prices and a greater selection of products.



Start-up competition ▪ Walmart’s technology incubator, Store No. 8, is partnering with Thrive Global and Accenture to create a nationwide competition for developers. The contest invites start-up companies to submit ideas to change the way people shop and live.




Europe


Going global ▪ LZ Retailytics data shows that eleven German retail groups posted record gross revenues totalling EUR 190 billion last year in 41 foreign countries on four continents, with Lidl-owner Schwarz Group being the leader of the pack. German Retail Blog summarises the analysis with some inspiring graphics.



Digital initiative ▪ In the search for partners to generate a new, future-orientated supermarket model, Spanish retailer Dia has launched a digital platform, called Nexus by Dia, and also opened a public competition online. The company invites start-ups to register their projects.



Robust results ▪ French supermarket retailer Casino reported an increase in sales to EUR 9.3 billion sales in the second quarter, reflecting an improvement at its Geant hypermarkets in France, and reported a resilient performance in Brazil, where it controls top retailer Grupo Pão de Açúcar.




Asia & Australia


Shinsegae invests in convenience ▪ Despite being in the red since its launch three years ago, the South Korean department store operator is set to spend US$ 264 million on its convenience store business, rebranding it from Withme to Emart24 and redesigning the store layout.



Slicing bread prices ▪ Australia’s supermarkets have already fought fiercely on milk and meat, now Coles is cutting the cost of its bread. Competitor Woolworths is also focused on lowering prices on bakery goods, however, Brumby’s Bakery owner Retail Food Group is not worried by the moves.




Thought-provoking ideas


Walmart should buy Costco ▪ A combination of Walmart, Costco and Jet.com could have the ability to challenge Amazon on a level never seen before. This is according to Brittain Ladd, who worked on the global expansion for Amazon Fresh.



Alexa, I want food ▪ Seeing voice ordering as a natural next step, Ahold Delhaize-owned grocery delivery service Peapod is launching a mobile app for Alexa that will allow shoppers to voice order items that then are added to the grocery cart.