While Amazon threatens its rivals worldwide, in China it is dwarfed by Alibaba. To get more market share in its rival’s home country, the US online behemoth has started a hiring binge. Fellow American tech giant Google challenges the EU over a record fine and premium chocolate brand Godiva wants to become mainstream.




Tuesday, 12 September 2017





Hello dear reader,

While Amazon threatens its rivals worldwide, in China it is dwarfed by Alibaba. To get more market share in its rival’s home country, the US online behemoth has started a hiring binge. Fellow American tech giant Google challenges the EU over a record fine and premium chocolate brand Godiva wants to become mainstream.




Asia & Australia


Online shopping arena ▪ Amazon is hiring by the hundreds in China, from software engineers to designers, in an effort to regain market share it lost to Alibaba. The latter is making sure it has a strong foothold in markets with significant growth such as India, where its investment in Bigbasket is almost a done deal.



... and offline decisions ▪ Mumbai-based retail company Future Group is in talks to acquire Hypercity, which operates a network of 20 hypermarkets, mainly in Western India. Meanwhile, Spar China has appointed Jerome Chevrier as its new managing director, effective immediately.



Ethical requirements ▪ German discounter Aldi wants its Australian suppliers to sign up to rigorous sourcing programmes and auditing regimes. This is part of a broad-based move to bolster sustainable practice through its supply-chain and to improve customer perception of its brand.




Europe


Belarusian orders ▪ Large-format operator Korona will expand into rural regions of Belarus following an order by President Lukashenko. It is the second announcement of this kind. LZ Retailytics reported earlier that market leader Eurotorg is also moving into less populated areas – with a governmental blessing.



Rules and regulations ▪ Google has launched an appeal against the European Commission’s decision to fine it a record EUR 2.4 billion for favouring its own service in searches. In other news, the anti-trust regulators have expressed concerns over the EUR 46 billion eyewear merger of Italy's Luxottica with French lens maker Essilor.


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Tracking with trolleys ▪ To find out about the routes customers take when walking around the store, German hypermarket operator Globus has equipped shopping carts with Bluetooth beacons in one of its markets. It will also enable the company to better predict busy times at the checkout.



Mainstream chocolate ▪ Premium brand Godiva has partnered with supermarkets in the UK, the US and other major markets to enter mainstream retail. The Yildiz-owned brand will enter Sainsbury’s, Albert Heijn and other as yet unnamed chains in a bid to become a US$ 2 billion brand.




USA


Nordstrom's tiny pilot ▪ The department store giant is debuting a small-format retail concept in Hollywood. The local store will offer all sorts of personal services but has no dedicated inventory. The idea is not sitting well with investors - Nordstrom's shares dropped considerably.



Hurricane interruptions ▪ Major online retailers are being criticised by customers in Florida who say that they did not deliver supplies to prepare for Hurricane Irma in time even if ordered early. Amazon apologized for the inconvenience. Other e-tailers suspended service prior to the storm.




Survey results and forecasts


Traditional vs digital ▪ Physical stores are US shoppers' most popular choice when it comes to buying food according to a survey by the International Council of Shopping Centers. At least for the time being. Mobile e-commerce sales, on the other hand, are predicted to hit US$ 250 billion by 2020, says a report from UPS.



Top grocer Amazon ▪ Although having only a small share of the US grocery market, Amazon might be able to grow this substantially during the coming years, says research firm Packaged Facts. By 2025, the online powerhouse could top US$ 30 billion in grocery sales.