In one of the largest acquisitions in its history, US discounter Target has agreed to buy a leading online same-day delivery platform, while a major Australian takeover has been blocked by authorities. Worldwide, retailers are gearing up for the festive season, with some experiencing horror starts and weak run-ups.




Thursday, 14 December 2017





Hello ,

In one of the largest acquisitions in its history, US discounter Target has agreed to buy a leading online same-day delivery platform, while a major Australian takeover has been blocked by authorities. Worldwide, retailers are gearing up for the festive season, with some experiencing horror starts and weak run-ups.

ADVERTISEMENT
Banner





USA & Canada


Speeding up delivery ▪ Minneapolis-based retailer Target is significantly stepping up its grocery-delivery capabilities with the acquisition of Alabama-based Shipt for US$ 550 million in cash. The same-day delivery business is a leading competitor to Instacart. The delivery wars keep ramping up.



... and the competition ▪ Just in time for last-minute holiday shopping, Amazon has expanded its same-day delivery and one-day shipping service to thousands of more markets across America. The move follows arch rival Walmart's announcement to increase its same day in-store pickup service.



Changes ahead ▪ Canadian supermarket giant Sobeys is set to convert up to about a quarter of its 255 stores to the FreshCo discount banner. One week after announcing to close stores, jewellery retailer Charming Charlie has filed for Chapter 11 bankruptcy protection. The company has entered into a restructuring support agreement.




Europe


Fake names ▪ Tesco is facing legal threats for stealing the name of a genuine farm for own-brand meat products. The Feedback charity accuses the retailer and other chains, including Aldi, Lidl and Asda, of deliberately misleading shoppers with “disingenuous” branding and wants them to stop using “fake farm” labels.



Think small ▪ Australian DIY and gardening retailer Bunnings is trialling its first small-format store in the UK following a difficult first year in the country. Swedish grocer Coop Sverige is also making its hypermarkets more compact as part of a larger overhaul, which LZ Retailytics says will boost the chain's brand image.



Mobile rejig ▪ After experiencing disappointing half-year results, British consumer electronics retailer Dixons Carphone is planning an overhaul of its mobile phone business. The high street chain has also warned of potential store closures.




Australia & Asia


Acquisition blocked ▪ The Australian competition watchdog opposed the sale of more than 500 Woolworths-owned service stations to rival BP, amid concerns it would push up petrol prices. The deal, worth A$ 1.8 billion, should help Woolies to focus on its supermarket business. The retailer will now assess its options with BP.



Tech investments ▪ Japanese online retailer Rakuten has announced to launch a three-month accelerator programme in Singapore in partnership with US-based Techstars, a worldwide network to helping entrepreneurs succeed. Rakuten also aims to become a major mobile carrier in its home country.



Ongoing collaboration ▪ As part of its continuing integration with Amazon, Dubai-based Souq.com has launched an Amazon global store in the United Arab Emirates. Online shoppers can choose from a variety of items, ranging from apparel, shoes and handbags to home goods and watches. More products will be added.




Christmas ahead


Jingle hell ▪ Australian retailers experience the weakest run-up to the Christmas sales period in four years and will have a less than festive season. Department store operator Myers tops the negative forecast as it suffered a horror start to the holiday trading period with sales down 5%.



Slow spending ▪ Many UK retailers are also feeling nervous in the run-up to Christmas. Reduced consumer confidence and uncertainty over 2018 are the reasons that British shoppers are looking to cut back on their spending in the festive period, according to retail marketing agency Savvy.