Chinese e-commerce giant Alibaba plans to spend billions of dollars to build a global logistics network. In a strategic switch, Swiss food major Nestlé sets profit targets for the first time and a discounter in the US debuts with a softer and less aggressive look in its latest concept store. Enjoy the read and feel free to share.




Wednesday, 27 September 2017





Hello ,

Chinese e-commerce giant Alibaba plans to spend billions of dollars to build a global logistics network. In a strategic switch, Swiss food major Nestlé sets profit targets for the first time and a discounter in the US debuts with a softer and less aggressive look in its latest concept store. Enjoy the read and feel free to share.




Asia & Australia


Billion-dollar investment ▪ Alibaba has paid US$ 807 million to take the majority ownership in international parcel tracking platform Cainiao and pledged to spend US$ 15 billion over five years to build out a global logistics network. Cainiao was created four years ago to improve Chinese supply chain management, particularly around e-commerce deliveries.



Soaring sales ▪ Australian online fashion retailer MySale has posted a triple-digit rise in underlying profits thanks to a growth strategy focusing on high-lifetime-value customers. The retailer is supported with British investments from Sports Direct’s Mike Ashley and Arcadia’s Sir Philip Green.




Europe


Profit expectations ▪ Nestlé has set a target for increasing its profit margin. It was part of a strategic update unveiled by CEO Marc Schneider, who also said that there are no immediate plans to sell Nestlé's stake in L’Oréal. Insiders think that the Swiss food giant has bowed to pressure with an eminently sensible approach.



Meat deal ▪ In a bid to expand its operations in Europe, the world’s largest pork supplier, China's WH Group, said it would buy two packaged meat manufacturers in Romania through its US-based Smithfield Foods unit. Elit and Vericom operate three manufacturing facilities and five distribution centres in the country.



Luxurious app ▪ Swarovski has teamed up with MasterCard to launch a shopping app for the jewellery brand's line of crystal home accessories. It offers a virtual excursion through a random home stocked with insanely overpriced items, which can be bought on the spot.




USA & Canada


Softer look ▪ US discounter Big Lots has unwrapped its store of the future in Columbus, Ohio. The outlet appears to be less promotional. Aggressive signs have been replaced with more traditional aisle markers, replacing the chain's signs that "shouted" at customers. Have a look at the image gallery.



Going digital ▪ Home improvement retailer Lowe's is adding two augmented reality tools to make it easier to visualise furniture in the room. Both apps are built on Apple's recently launched ARKit. Meanwhile, American Eagle Outfitters has introduced AEO Connected, a highly digitised loyalty programme.



Reducing unsaleable items ▪ Retailers, wholesalers and manufacturers now have a blueprint for how to tackle the nearly US$ 15 billion annual costs of products that cannot be sold due to their condition, thanks to a new industry report. It ranks solutions and states that even small changes help to save big.




Worthwhile reads


Bright future ▪ Supermarkets celebrate their 60th anniversary in Germany today. On 26 September 1957, the first self-service grocer was opened in the country. LZ Retailytics looks back at the history and says the future for the format looks sunny with cloudy intervals.



Amazon and Sears ▪ 100 years ago, Sears was capitalising on a mail-to-consumer business to establish a physical retail presence. As mail is regarded as the forerunner to the internet, US magazine The Atlantic explains the similarity between the department store chain and retail disruptor Amazon.