German online fashion giant Zalando and Finland's S Group have ambitious growth plans. The former taps into the beauty market and will open a concept store in Berlin, while the latter aims to be market leader in Estonia. In the US, wholesaler Supervalu gets ready for another acquisition and in Brazil, JBS decided not to go public.




Thursday, 19 October 2017





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German online fashion giant Zalando and Finland's S Group have ambitious growth plans. The former taps into the beauty market and will open a concept store in Berlin, while the latter aims to be market leader in Estonia. In the US, wholesaler Supervalu gets ready for another acquisition and in Brazil, JBS decided not to go public.




Europe


Betting on beauty ▪ On the back of strong sales growth in Q3, German online specialist Zalando has revealed plans to enter the beauty market, offering cosmetics, skin and hair care, fragrances, tools and accessories. The e-tailer also announced that it will open a concept store in Berlin.



Seeking leadership ▪ Finnish retailer S Group aims to be Estonia's grocery market leader in the long-term and is set to open 12 more stores in the country by 2022. It might be a bit of a journey to overtake top retailer, Coop Eesti, which currently has a turnover more than double than that of the Finns.



Taking on Amazon ▪ While the US retail disruptor has doubled the selection of branded Dash buttons available to UK Prime members, supermarket operator Sainsbury’s is extending its one-hour ‘Chop Chop’ delivery service to reach over 1.7 million potential customers across London.




USA & Latin America


Changing ownership ▪ Minneapolis-based wholesaler Supervalu has agreed to acquire Associated Grocers of Florida for about US$ 180 million, marking its third acquisition of the year. Ohio-based E&H Family Group has offered its employees to become owners of its 13 Buehler Food Markets.



No IPO for JBS ▪ In response to weak investor demand, Brazilian meatpacker JBS SA abandoned plans of going public with its processed food unit, JBS Foods International. The group, which has been hit by a string of scandals in Brazil, remains interested in a public listing.



Robust results ▪ Despite the effects from deflation on food products and thanks to the development of new categories, Sao Paulo-headquartered retailer Grupo Pão de Açúcar has reported an 8.1% growth in net sales in its third quarter, to EUR 2.92 billion.




Asia & South Pacific


Australian struggles ▪ Supermarket giant Coles has stepped up its price investment in a bid to catch up with Woolworths’ renewed momentum. Meanwhile, Aldi continues to capture market share from its rivals Down Under and now has an 8.6% share of the local grocery market.



Axing fast-food ▪ Affinity Equity Partners of Hong Kong has bought Burger King’s Japanese business from South Korea’s Lotte Group for an undisclosed sum. The company is expected to take over the roughly 100 fast-food outlets next month. The US burger chain was acquired by Lotte in 2007.



Going public ▪ Vietnamese mall operator Vincom Retail, backed by US private equity firm Warburg Pincus, has started taking investor orders for a domestic initial public offering that could raise as much as US$ 680 million. It would be the largest-ever share sale from the private sector in Vietnam.




Insights and analysis


Discounter in Poland ▪ With shoppers expecting a broader choice and higher product quality, key players such as Biedronka, Lidl, Aldi Nord and Netto are increasingly adjusting their formats. LZ Retailytics published a paper on the development of the discount channel in Poland. Get it here for free.



Aldi appeal in Britain ▪ More well-off shoppers buy from German discounters Aldi and Lidl in the UK than low-income households. According to new research from Mintel, 77% of households earning GBP 50.000 and more have purchased good from the stores.