Delivery competition is heating up the US. French department store Galeries Lafayette will acquire e-commerce retailer La Redoute and Aldi has struck a deal to offer discount petrol. Read also an insightful interview with Tesco chairman John Allen and a background story about the rise and fall of African retailer Nakumatt.




Friday, 01 September 2017





Hello, dear reader,

Delivery competition is heating up the US. French department store Galeries Lafayette will acquire e-commerce retailer La Redoute and Aldi has struck a deal to offer discount petrol. Read also an insightful interview with Tesco chairman John Allen and a background story about the rise and fall of African retailer Nakumatt.




Europe


French alliance ▪ In a bid to combine the best of digital and e-commerce with physical stores, French upmarket department store Galeries Lafayette is set to acquire fashion and homeware e-business La Redoute. The new group will have a joint EUR 4.5 billion turnover and aims to increase that to EUR 5.5 billion by 2020.



Winning team ▪ Aldi has struck a deal with discount petrol station operator FE-Trading allowing the latter to operate unmanned stations next to Aldi stores. LZ Retailytics thinks the affinity between the two companies is perfect to create mutually beneficial synergies.



Promising numbers ▪ Polish retail chain Dino reported a double-digit increase in net profit for Q2 and is encouraged to open more stores this year than 2016. UK convenience retailer McColl’s also enjoyed amiable results, boosted by the integration of nearly 300 former Co-op stores.



Russian efforts ▪ Hypermarket operator Lenta saw sales rise 16.7% in the first half year. Fellow retailer O'Key group has posted a 4,1% increase in gross profit at the same time. Meanwhile, competitor Magnit has announced the opening of its first "Magnit Family" store under a new concept (paywall). The outlet is located in Krasnodar.




USA & Canada


Battleground delivery service ▪ As Amazon continues to expand its retail muscle, Best Buy and Macy's are stepping up their same-day delivery efforts. Both are increasing the service and reducing fees. Start-up Deliv, which currently partners with 4,000 retailers, also plans an expansion.



Focus on fresh ▪ Dollar General reported mixed results for Q2, with gains in sales but a dip in profits. The Tennessee-based retailer is in the process of remodelling its stores with an emphasis on fresh produce. Their performance makes CEO Todd Vasos "cautiously optimistic".


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Costco fights back ▪ The warehouse giant turned in a strong performance in August. The company saw comparable-store sales grow 7.4% in the US and 8.2% in Canada. Costco said it had made improvements in its e-commerce efforts, including making transactions more user-friendly.




Asia & Australia


Digital transformation ▪ Japanese fast-fashion giant Uniqlo is renovating its digital DNA. Improving operational efficiency and creating innovative systems are the first steps. The company has launched a line of maternity clothing in its homeland, available online and offline.



Ups and downs ▪ Australia's biggest electronics retailer, Harvey Norman, enjoyed an annual net profit jump of 29% thanks to sales growth at its overseas businesses. Not so lucky was 7-Eleven Malaysia - the convenience store operator reported a heavy 42.8% profit slump for its second quarter.




Weekend reads


Talk with Tesco ▪ Having survived its accounting scandal a few years ago, the British supermarket leader is about to grow again. However, the retailer is challenged by discounters and Amazon Fresh. German Retail Blog’s Mike Dawson talks to the company's chairman, John Allen, about the new Tesco.



Nakumatt's rise and fall ▪ The story of the Kenyan-headquartered supermarket chain is complex. It tells of a once promising regional giant, which is now facing a deep financial crisis. The retailer started to falter in 2015 and by the end of 2016, the business was in real trouble. Read more here.