Demerged Metro-unit Ceconomy buys a major stake in French music and book retailer Fnac Darty. Indian online leader Flipkart's revised offer to acquire rival Snapdeal has been accepted, Aldi Nord invests billions to revamp its stores and Lidl wins the first legal battle against Kroger in the US. Enjoy the read and feel free to share.




Thursday, 27 July 2017





Hello, dear reader

Demerged Metro-unit Ceconomy buys a major stake in French music and book retailer Fnac Darty. Indian online leader Flipkart's revised offer to acquire rival Snapdeal has been accepted, Aldi Nord invests billions to revamp its stores and Lidl wins the first legal battle against Kroger in the US. Enjoy the read and feel free to share.

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Europe


French connection ▪ Just weeks after it was spun off from Metro, German consumer electronics retailer Ceconomy will buy a 24% stake in French company Fnac Darty for EUR 452 million. Ceconomy currently runs more than 1,000 stores in 15 European countries. The deal is marking its entry into France.



German discounters invest heavily ▪ German discount grocery chain Aldi Nord wants to spend EUR 5.2 billion to revamp its stores in Germany and around Europe. Aldi Nord's sister chain Aldi Süd has recently announced plans to invest US$ 3.4 billion to expand its U.S. store base to 2,500 by 2022.



Globus faces headwind ▪ The German big-box retailer, which seemed to manage the balance of offering premium service while providing small prices, is facing increasing financial difficulties in its home market. The company closed some of its banners and its omnichannel concept has been put on ice. LZ Retailytics explains.



Encouraging results ▪ Portuguese retail group Jerónimo Martins enjoyed double-digit sales growth to EUR 7.8 billion during the first six months of 2017, with Polish banner Biedronka experiencing a 13.4% increase. Meanwhile, sportswear maker Puma has raised its full-year outlook after reporting bumper sales.




Asia


Snapdeal gives in ▪ After months of dilly-dallying, the board of the troubled Indian e-commerce major has finally agreed to sell its online business to Bengaluru-based e-tailer Flipkart following the latter's revised offer of US$ 900-950 million. An earlier takeover offer had been rejected.



Tencent invests in India ▪ The Chinese internet conglomerate is on its way to becoming one of the most influential investors in India. The company is in advanced talks to invest US$ 400 million in ride hailing app Ola, and has backed online education service Byju with around US$ 800 million.




USA


Lidl can go ahead ▪ The German discounter just notched its first win in a legal battle with supermarket giant Kroger. A federal judge denied the latter's request for preliminary injunction, allowing Lidl to continue to sell its Preferred Selection brand in stores. The trademark dispute will go on trial early next year.



Walmart's US commitment ▪ The world's largest retailer proposed 10 policy actions to boost US manufacturing, claiming they could help recapture US$ 300 billion of the US$ 650 billion worth of goods that are currently imported.



Amazon's hiring spree ▪ The online juggernaut announced that it plans to fill more than 50,000 roles across its fulfilment network in the US. More than 10,000 part-time jobs will be available at sorting centres. This comes as the labour market in America tightens with holiday shopping around the corner.



Profit drops ▪ Amazon takeover target Whole Foods Market reported a quarterly profit decline after same-store sales fell for the eighth quarter in a row. Coca-Cola's profit also tumbled in Q2, hampered by charges related to the refranchising of its North American business.




Sustainability matters


Aldi sets standards ▪ Declaring that paper bags are not a sustainable alternative, the German discounter has announced it will stop offering single-use bags, made from plastic or paper and replace them with reusable ones. This might set new industry standards, says LZ Retailytics.



Egg sales and fire safety ▪ Lidl Portugal has announced that from now on it will only sell eggs from chickens reared outside of cages. Meanwhile, Carrefour has become the first French signatory of a new fire and building safety agreement for its suppliers in Bangladesh.