Amazon has set the cat among the pigeons again – this time with rumours heating up over its potential foray into the drug retailing market. Trouble is afoot for a major Croatian retailer while Sears gets a helping hand to avoid more strife. Enjoy the read and feel free to share.




Monday, 09 October 2017





Hello ,

Amazon has set the cat among the pigeons again – this time with rumours heating up over its potential foray into the drug retailing market. Trouble is afoot for a major Croatian retailer while Sears gets a helping hand to avoid more strife. Enjoy the read and feel free to share.




USA


Amazon effect ▪ Stocks of drug retailers tumbled as persistent rumours that the online giant is entering the drug retailing business ramped up. Analysts believe a move is imminent. New figures confirming the marked impact Amazon has had on the grocery business show what could be in store for the sector.



Online plays ▪ Costco is shaking off concerns over its online competitiveness, launching a new two-day delivery service called CostcoGrocer and expanding its partnership with Instacart. On the flipside, Starbucks is taking a step back from the digital world, after closing its online store earlier this month.



Buying time ▪ Sears Holdings has been handed a lifeline to the tune of US$ 100 million, as well as the promise of another US$ 100 million in December. The loan comes from its CEO Eddie Lampert’s hedge fund as it works to return to profitability.




Europe


Financial woes ▪ Auditors for the Balkans’ largest retailer, Agrokor, have revealed massive losses and inflated capital value of its major subsidiaries. LZ Retailytics believes talk of a commercial turnaround has become myth, with the new figures likely to impair chances of survival for its major retail brands.



Italian treats ▪ Cocoa giant Barry Callebaut has completed its acquisition of confectionary company D’Orsogna Dolciaria. Gluten free producer Farmo and organics company Alce Nero are teaming up to produce organic bakery goods, initially focusing on sweet products.



UK drinks wars ▪ Beverage giant Coca Cola is pumping GBP 10 million into a Schweppes relaunch as it looks to regain lost ground to fancy newcomers in the tonic market. Intense competition between German discount giants Lidl and Aldi is behind tumbling Prosecco prices, as more Brits get behind the sparkling tipple.



Store ambitions ▪ Romanian supermarket Profi continues its path to expansion, opening eight new outlets in its home country last week. Sicilian grocery retailer Arena has opened its first store featuring its new format, Gourmet Decò.




Australasia & Africa


Expansion plans ▪ Convenience chain 7-Eleven isn’t dwelling on the termination of its 11-year partnership with Shell in Singapore, with plans to roll out 80 stores by the end of 2018. Cosmetics giant Sephora has announced Melbourne will get its third store – lucky 13th for Australia.



Vultures circle ▪ Souq Bazaar is joining the ranks of foreign retailers rushing to fill the void left by troubled supermarket chain, Nakumatt. It will take over the Kenyan retailer’s lease at NextGen Mall in Nairobi. The cash-strapped company closed yet another store in its hometown over the weekend, this time at Westgate Mall.




Investment matters


Against the grain ▪ Private equity firm Sycamore is betting against the odds as it continues to back retail. While others back away from the sector in the wake of online, the new owner of Staples is apparently looking to raise another US$ 3 to 4 billion to invest.



Amazon out ▪ One boutique firm in New Zealand has left the e-commerce money-maker out of its responsible investment fund, saying it doesn’t make the cut. The online giant doesn’t have a high enough score under the controversy rating system.