As speculation intensifies over Amazon's intentions in France, retail major Leclerc confirmed that it has been approached by the online giant, while British leader Tesco proves to be a comeback king. In the US, Sprouts accelerates its expansion, and Nordstrom unveils its controversial small store in Los Angeles. Enjoy the read!




Thursday, 05 October 2017





Hello ,

As speculation intensifies over Amazon's intentions in France, retail major Leclerc confirmed that it has been approached by the online giant, while British leader Tesco proves to be a comeback king. In the US, Sprouts accelerates its expansion, and Nordstrom unveils its controversial small store in Los Angeles. Enjoy the read!

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Europe


Taxes and talks ▪ Amid rumours of looking for possible acquisitions in France, Amazon has reportedly approached French hypermarket operator Leclerc, one of the country's largest grocers, to discuss a possible logistics tie-up. At the same time, the US online giant was ordered by the EU to pay EUR 250 million back taxes to Luxembourg.



Strong progress ▪ Tesco continues its impressive turnaround. UK's leading grocer has posted a robust set of half-year results and reinstated its dividend, which CEO Dave Lewis said reflected the company’s confidence. However, the retailer cannot afford to relax, says LZ Retailytics. Here’s how other analysts saw it.



Thinking big ▪ Two of Germany’s leading grocers have provided an update on their current expansion plans. Edeka said it is investing EUR 1.9 billion this year in its German infrastructure, while Rewe Group reiterated that it is ploughing EUR 1.7 billion into its bricks-and-mortar network across all of its European markets




USA & Canada


Expansion mode ▪ Sprouts Farmers Market will open approximately 30 stores across the US in 2018. This includes the chain's debut in Maryland, its first location in the mid-Atlantic region. Based in Phoenix, the natural and organics grocer currently operates more than 280 stores in 15 states.



Betting on meals ▪ Canada's Sobeys is the latest grocer to embrace the fast-growing “grocerant” concept with the launch Easy Meals, a line of pre-packaged dishes, prepared in-store. Competitor Metro already tapped into this market with the acquisition of Montreal-based meal-kit company Miss Fresh.



Sneak peek ▪ Nordstrom has unveiled its small-format retail concept in Hollywood, which offers all sorts of services, but has no dedicated inventory. Eight fitting rooms surround a central meeting space. Have a look. Although investors remain sceptical, it might be an idea worth trying.




Asia & Australia


Deal delay ▪ The Australian consumer watchdog has postponed its final decision on BP’s proposed AU$ 1.8 billion acquisition of Woolworths’ 527 retail service station sites. The competition commission said it needs more time for analysis of data and information.



Direction debate ▪ Japanese big-box retailer Aeon is pulling in record earnings, reporting a group operating profit of US$ 753 million for the first half year. However, insiders criticise that the company has so far failed to adapt to a shrinking domestic population and the rise of digital rivals.



Diwali competition ▪ With India's biggest festival just two weeks away, it is raining discounts on smartphones, electronics, and furniture across the country's e-commerce platforms. Homegrown Flipkart is rolling out “Dhamaka Days” in an attempt to outdo the Amazon's company’s “Great Indian Festival”.




Sustainability matters


Banning bags ▪ Germany's Aldi Nord has announced that it is replacing disposable bags with a long-lasting reusable one. In New Zealand, supermarket operator Countdown will remove single-use plastic bags from its stores, while main competitor Foodstuffs waits for the feedback of its customers about how to deal with this issue.



Milk certification ▪ Ireland-based food company Kerry Group has become the first major milk processor to achieve a complete certification of its 3,300 milk suppliers under the country's Sustainable Dairy Assurance Scheme. Congratulation!