Turmoil in India's e-commerce sector - Less than seven days after Flipkart’s much-rumoured acquisition of its smaller Indian rival Snapdeal appeared to be nearing completion, the deal has officially died. Meanwhile, Amazon pushes further into fashion and Walmart announces some top exec changes. Enjoy the read!




Tuesday, 01 August 2017





Hello, dear reader,

Turmoil in India's e-commerce sector - Less than seven days after Flipkart’s much-rumoured acquisition of its smaller Indian rival Snapdeal appeared to be nearing completion, the deal has officially died. Meanwhile, Amazon pushes further into fashion and Walmart announces some top exec changes. Enjoy the read!




Asia & Australia


Mega deal in shatters ▪ Negotiations have been terminated for the proposed sale of Indian online market place Snapdeal to market leader Flipkart. The former will pursue an "independent path", and Flipkart has started co-creating products in partnership with domestic manufacturers, as it looks to push its new brand `Billion'.



Trade push ▪ Australia’s horticulture exports are expected to reach record levels of AUD$ 3.3 billion by 2022. To make this projected surge a reality, the Australian government has launched a new 'Taste Australia' brand as well as funding for research and development and getting farmers ready.



Japanese chocolate frenzy ▪ Swiss food giant Nestlé has opened a KitKat factory in Japan to cater for the growing demand of the wafer snack bar. The country has the second largest KitKat consumption in the world and has become famous for selling unusual flavours including wasabi, green tea, and sake.




USA & Canada


Management reshuffles ▪ Walmart has announced changes to its food leadership team. Senior VP Shawn Baldwin will transition to a different role focusing on the new Hispanic initiative. He will be succeeded by Martin Mundo, who is currently senior VP of operations. In addition, the responsibility for the bakery and deli departments will be divided.



Pressure on Hudson's Bay ▪ Activist investor Jonathan Litt wants the Canadian retailer to take drastic steps to make more money from its assets and has pushed to sell the Saks Fifth Avenue brand. This comes as the company's German Galeria Kaufhof division adds to the problems by being in commercial difficulties.



Workforce reduction ▪ Electronics giant Best Buy is restructuring some of its Geek Squad workforce, eliminating about 400 remote positions nationwide with the aim of outsourcing that work and transferring the employees to other jobs.




Europe


Fashion moves ▪ Amazon Fashion Europe has partnered with streetwear brand Nicopanda to launch a “see now, buy now” collection. As its apparel sales amounted to US$ 1.45 billion in the first 23 weeks of this year, the online giant plans to roll out an apparel subscription service of its own, called Prime Wardrobe.



Forecourt format ▪ Polish retailer Piotr i Paweł has launched a new forecourt store concept alongside BP. The first 'Po Drodze' outlet opened in Warsaw, with more to follow. The stores are between 140 to 150 square metres and offer around 3,000 products, mainly focused around on-the-go products.



Reporting results ▪ Dutch brewer Heineken has posted better-than-expected profit for its first half, helped by improved results in Europe and in the US. Not so lucky was Parmalat - sales volumes decreased by 4.6% in that period. The Italian dairy manufacturer attributes this decline to an increase in milk prices.




Insider Insights


Amazon's challenges ▪ The e-commerce giant seems to be unstoppable. The company believes that there is no one solution to the future of retail, which is why it plans to continue experimenting with a number of different formats. LZ Retailytics thinks that the integration of Whole Foods will be one of the biggest tasks for the e-tailer.



Grocery delivery risks ▪ Nearly one-quarter of American households rely on some form of grocery delivery. While it brings significant revenue opportunity, delivery service comes with risks and details must be considered that impact consumer safety and brand perception.