Earnings season kicks off for American retailers this week, and it’s expected there will be one name on everyone’s lips – Amazon. Meanwhile, its Indian rival, Flipkart, is doing what it can to keep pace with the giant. Mexican dairy group Lala is opening its wallet with a new acquisition, while Sainsbury's is tightening up again and the contaminated eggs scandal in Germany widens. Enjoy the read and feel free to share.




Monday, 07 August 2017





Greetings!

Earnings season kicks off for American retailers this week, and it’s expected there will be one name on everyone’s lips – Amazon. Meanwhile, its Indian rival, Flipkart, is doing what it can to keep pace with the giant. Mexican dairy group Lala is opening its wallet with a new acquisition, while Sainsbury's is tightening up again and the contaminated eggs scandal in Germany widens. Enjoy the read and feel free to share.




Europe


Contaminated eggs scandal widens ▪ Millions of eggs have been recalled in Germany and the Netherlands in a widening scandal over possible contamination by the insecticide fipronil. German discounter Aldi has withdrawn all eggs from sale at its more than 4,000 stores in Germany as a precaution.



Rossmann gets Amazon ▪ The drug store chain has become the first German top ten retailer to partner with the e-commerce giant. It is an opportunity for the company to turn around its online sales, which have struggled as a standalone web operation.



Staff shakeups ▪ UK grocer Sainsbury’s is reportedly set to axe more than 1,000 jobs at its head office in a bid to slash GBP 500 million in costs, as the grocer looks to avoid raising prices. German discounter Lidl has replaced its Head of Digital with Thorsten Reichle. LZ Retailytics says his limited experience in the digital space is not necessarily a problem.




Asia & Australia


Flipkart ramps up ▪ The online retailer plans to sell refurbished smartphones in time for Diwali, following in the footsteps of rival Amazon. Flipkart is celebrating the completion of its merger with Ebay.in, which was part of a US$ 1.4 billion funding drive announced back in April.



IPO mega deal ▪ Vietnamese mall operator Vincom Retail is reportedly planning a US$ 600 million IPO, which would make it the country’s biggest ever share sale from the private sector. The move comes as the country enjoys strong economic growth, and shoppers with more cash to spend.


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Gap gets out ▪ The American fashion brand will pull the pin on Australia, local franchisee Oroton confirmed. The fashion house wants to refocus on its core handbag business and limit financial losses. Its six stores across the country will close by the end of January next year.




USA & Latin America


Lala’s new purchase ▪ Mexican dairy group Lala is acquiring the Brazilian dairy company Vigor in a deal worth BRL 5.72 billion. Vigor brings with it 67,000 points of sale in Brazil and its portfolio of brands include Danubio, Faixa Azul, Serrabella Leco and Amelia.



Smart launches ▪ Amazon has launched ‘themes’, a feature for filtering customer reviews by popular terms. The change is part of its drive to clean up its reviews sections and maintain integrity of the function. Fellow tech giant Apple is apparently planning to release a version of its smartwatch that can connect directly to cellular networks, rather than relying on an iPhone, later this year.



Hoping for a comeback ▪ Sports brand Under Armour has laid out aggressive plans to staunch declining sales, including job cuts, store closures and a more substantial online presence. Meanwhile, the once high-flying American Apparel is set for the relaunch of its website, with its new owner saying it has big plans for the iconic brand.




Keep an eye on...


Earnings ahead ▪ American retailers Macy’s and Kohl’s kick off earnings season for the sector this week. While sentiment appears broadly upbeat, investors are eager to see the extent to which the world’s largest online retailer has dented earnings. Already Amazon has dominated discussions, appearing in some 130 earnings calls from S&P 1500 components.



Food delivery on top ▪ While it’s a service that has been around for decades, it is now China’s fastest-growing online industry. The sector has been turbocharged thanks to smartphones, and e-commerce platforms like Tencent, Baidu and Alibaba. More than 40% of consumers arranged delivery from their computer or phone in the last six months.