Amid increasing competition in the meal-kit market, beleaguered start-up Blue Apron realigns its business model, cutting hundreds of jobs. French retailers exploring ways to deepen their presence in the click-and-collect area, while the vast but sparsely populated Siberian market attracts Russian grocers.




Friday, 20 October 2017





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Amid increasing competition in the meal-kit market, beleaguered start-up Blue Apron realigns its business model, cutting hundreds of jobs. French retailers exploring ways to deepen their presence in the click-and-collect area, while the vast but sparsely populated Siberian market attracts Russian grocers.




Europe


Interests in Siberia ▪ Russia's Magnit is in negotiations to buy Siberian company ETK which hold lease rights around the city of Krasnoyark. The move comes shortly after the grocer was said to be in talks to acquire Siberian multi-format retailer Holidey Klassik. Competitors X5 and Lenta also showed interest in the latter.



Challenges for Carrefour ▪ Improving the hypermarket business is a priority for CEO Alexandre Bompard, after the French retail group posted a decrease in sales in its home market. The company has reported that sales grew 0.5% (like-for-like) to EUR 21.9 billion in the third quarter of its financial year, mainly driven by increases in Latin America.



Attracting attention ▪ Auchan has opened a grocery click and collect area in Saint-Etienne with three different temperature levels. The sheer size of the project makes it outstanding. After placing an order on the retailer's website, shoppers can collect their groceries four hours later.




USA & Canada


Slimming down ▪ After a tough few months since going public, Blue Apron cuts about 6% of its total workforce. The meal-kit delivery company comes under increasing pressure from deep-pocketed rivals such as Amazon. The sector, however, is still regarded as big business with solid growth rates.



Sweet deals ▪ In a bid to expand its portfolio in the US, global chocolate giant Ferrero has agreed to buy US candy maker Ferrara and expects to operate it as a separate unit. Earlier this year, the Italian company acquired Chicago-based confectioner Fannie May and has recently opened the first Nutella cafe.



Financial outlooks ▪ Online giant Ebay has warned that profit this quarter could fall below analysts’ estimates as it invests in marketing and a revamped website to attract more shoppers. Meanwhile, payment processor Paypal reported a better-than-expected quarterly profit.




Asia & South Pacific


Kraft eyes Aussie icons ▪ The US food giant spends AU$ 290 million to acquire Cerebos Food & Instant Coffee and Asian Home Gourmet from Japan's Suntory. The transaction will see Kraft Heinz take over a number of iconic Australian and New Zealand brands.



Seizing opportunities ▪ Alibaba and JD.com are considering investing in Korean online marketplace subsidiary 11st Malaysia to expand further into the region. In China, Alibaba has announced a raft of pre-sales activities for the lead up to its signature Singles' Day event, which will see the participation of over 140,000 brands.



Thai ambitions ▪ In a bid to strengthen Thailand as one of the top destinations in Asia, members of the country's association of shopping centres (TSCA) are investing a total of US$ 1.7 billion to increase their combined mall space to more than 9.1 million square metres by 2019.




Unusual and remarkable


Moving in with Macy's ▪ In an ironic move, the embattled US department store operator has leased the top six floors of its building in downtown Seattle to rival Amazon. The online giant is still on the hunt for its second headquarter.



Productive small formats ▪ Target is expanding its urban-format stores. Today, the retailer opens one of these outlets with a grab-and-go grocery department in Midtown Manhattan. Ahead of the launch, CEO Brian Cornell said that sales per square foot at small stores "easily double" that of traditional ones.