The expansion of its discount rivals Aldi and Lidl is driving Britain's Tesco to develop a low-cost store format, while Japan's Aeon teams up with two giants to counter the growth of Amazon. The US online powerhouse speeds up its delivery service and its Chinese rival Alibaba accelerates its offline efforts. Enjoy the read and have a great start to the week!




Monday, 12 February 2018





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The expansion of its discount rivals Aldi and Lidl is driving Britain's Tesco to develop a low-cost store format, while Japan's Aeon teams up with two giants to counter the growth of Amazon. The US online powerhouse speeds up its delivery service and its Chinese rival Alibaba accelerates its offline efforts. Enjoy the read and have a great start to the week!

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Europe


Limited range ▪ Tesco is reportedly planning a chain of cut-price stores and offer a stripped down product selection to rival its German competitors Aldi and Lidl. However, analysts are warning that the move could prove as disastrous as Sainsbury's attempt to revive discount banner Netto.



Spanish initiatives ▪ Mercadona is getting serious with its plan to enter Portugal. The grocer will open its first stores in the country in 2019 and has already started hiring staff. After positive reactions from customers, fellow retailer Dia Group has announced the expansion of its Amazon Prime service to Valencia.



Rescue talks ▪ Struggling retailer Toys'R'Us has reportedly attracted the interest of Hilco Capital, a company specialising in turning around distressed retailers, for its UK business. This comes as the toy chain teeters on the brink of collapse with thousands of jobs at risk.




Asia & Australasia


Beating Amazon ▪ Japanese retailer Aeon has partnered with Softbank and Yahoo to operate an 'Amazon-style' online marketplace for a variety of shops, and Australian consumer electronics chain JB Hifi brushed off the pre-Christmas arrival of the US e-commerce giant with a double-digit jump in profit, but disappoints investors



Offline moves ▪ Following its billion-dollar investment in retailer Sun Art, Alibaba is set to acquire a stake in Easyhome, China's second largest furniture chain. The-commerce titan also bought into Beijing-based big data firm Shiji Information Technology, in a bid to deepen its offline presence.



Fonterra in Russia ▪ The New Zealand-based dairy giant expands its Russian business via a joint venture with St. Petersburg-based Foodline is seen as a potential counterweight to the increasing dependence on China, its primary distributor in the country. The move is seen as a potential counterweight to the increasing dependence on China.




US & South America


Fuelling competition ▪ Amazon is about to introduce 'Shipping with Amazon', a service that would allow the online giant to deliver its sellers’ goods, competing directly with logistics heavyweights UPS and Fedex. As a result, shares in both companies dropped on Friday.



Thinking big ▪ Foodservice operator Dunkin Brands plans to add 1,000 donuts outlets in the US by 2020, with 275 new stores to open this year. The chain also reaffirmed its goal to eventually have more than 18,000 Dunkin'Donuts restaurants, from currently 9,100 locations.



Southern ventures ▪ Amazon is looking to lease a massive warehouse just outside Sao Paulo, which is regarded as a sign that it may soon handle distribution of goods sold on its Brazilian website. Chinese low-cost retailer Miniso has signed a deal to launch its stores in Colombia.




Sustainability matters


Fighting waste ▪ Tesco and Unilever have signed up as the official sponsors of a British campaign, initiated by The Grocer, which aims both to reduce waste and redistribute edible surplus food. Meanwhile, Asda set to invest GBP 20 million in a charity partnership designed to help one million people out of food poverty.



Cool transport ▪ Henderson Group, a Spar and Eurospar franchise owner in Northern Ireland, has upgraded its delivery fleet with sustainable units, developed by refrigeration company Thermo King to secure delivery of temperature-sensitive products.