While Aldi is under fire in Australia over working conditions of truck drivers, its latest UK announcement to reduce payment time for smaller suppliers will surely be welcomed. Staying in Britain, the Co-operative group is in advanced talks to buy Nisa after Sainsbury's opted out. Enjoy your Thursday bulletin and feel free to share.




Thursday, 31 August 2017





Hello, dear reader,

While Aldi is under fire in Australia over working conditions of truck drivers, its latest UK announcement to reduce payment time for smaller suppliers will surely be welcomed. Staying in Britain, the Co-operative group is in advanced talks to buy Nisa after Sainsbury's opted out. Enjoy your Thursday bulletin and feel free to share.




Europe


Takeover talks ▪ The Co-op has emerged as the new favourite to acquire Nisa entering exclusive talks, just days after Sainsbury’s put the brakes on its interest. The deal is said to be worth more than GBP 130 million. Convenience chain Nisa is owned by thousands of independent operators and supplies 2,500 stores.



Profit warning ▪ Carrefour’s new CEO, Alexandre Bompard, has some challenges ahead as the French retail giant posted a sharp drop in first-half earnings and issued a warning. Competition at home and the integration of acquired stores in Spain and Romania weighed on margins. Carrefour will now focus on its digital transformation.



Conscious Uncoupling ▪ The newly formed companies Metro und Ceconomy have posted positive sales figures for the fiscal third quarter. Online business and delivery services are the key drivers of growth. The retailer and the consumer electronics group split and listed separately in July.



Bold moves ▪ Aldi UK gives its small suppliers a boost by shortening payment terms to 14 days, which will benefit around 400 businesses. Over in Italy, the German discounter is preparing to open one of its first stores north of Milan, competing with 14 other supermarkets in the area.




Asia & Australia


Developments Down Under ▪ Facing fierce opposition from truck drivers in Australia about working conditions, Aldi told the Federal Court it will uphold legal action in a bid to fight for its reputation. In other news, department store operator Myer will partner with Amazon, offering a selection of Kindle e-readers and devices in its stores.



Defining decisions ▪ Marks & Spencer has started talks with its franchise partner Al-Futtaim to sell its Hong Kong and Macau stores. In its home country, M&S is threatened by younger online rival Asos, whose market value has nearly reached that of the 113-year-old high street icon.


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Looking for top drones ▪ Beijing-based online giant JD.com offers US$ 15.1 million in a competition to find the best solutions for sophisticated drone delivery services across China. Current ones are limited to rural areas.




USA & Canada


Fruitful alliances ▪ In an unusual partnership, Amazon and Microsoft are working together to extend the abilities of their voice assistants. The Seattle-based powerhouse is also wasting no time in leveraging its ownership of Whole Foods by adding the natural grocer’s lines to its private label portfolio.



Walmart extends online reach ▪ America’s largest retailer expanded its global online marketplace to its Canadian e-commerce store. The move will double the site’s online product assortment. The programme is being launched with 27 trusted, third-party sellers as the first partners.



Networking deal ▪ Jerry’s, a 50-store retailer based in Minnesota, is outsourcing its technology network to its wholesaler, Supervalu. Both companies agreed that the deal would result in better customer service, reduced costs as well as value-added offerings.




What to watch


US grocery competition ▪ Despite the buzz surrounding Amazon’s acquisition of Whole Foods, there are even larger changes in store for the world of grocery, says Progressive Grocer and explores why German discounters Aldi and Lidl will win the grocery game.



Brick-and-mortar survives ▪ Physical retail is still growing. US retailers are opening 4,080 more stores in 2017 than they are closing, according to a new research report from IHL Group. Mass-merchandisers are the fastest-growing segment, followed by convenience stores and grocery retailers.