Walmart is firing on all cylinders to tackle Amazon. In India, the big box giant digs deeper into the e-commerce sector and in the US, it introduces low-cost apparel to lure shoppers away from its arch-rival. In Europe, Nestlé might be forced to rethink purchasing conditions and the Tesco/Booker deal could be in danger. Enjoy the read!




Monday, 19 February 2018





Hello ,

Walmart is firing on all cylinders to tackle Amazon. In India, the big box giant digs deeper into the e-commerce sector and in the US, it introduces low-cost apparel to lure shoppers away from its arch-rival. In Europe, Nestlé might be forced to rethink purchasing conditions and the Tesco/Booker deal could be in danger. Enjoy the read!

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Asia & Australia


Ambitions in India ▪ In a direct challenge to Amazon, Walmart is in talks to purchase a stake of more than 40% in Indian e-commerce firm Flipkart. Chinese competitor Alibaba ramps up its offline efforts in Asia's third-largest economy. Its local online platform Paytm has opened its first physical store in New Dehli.



Enhancing experience ▪ In a bid to find the right mix for customer's needs, convenience store operator 7-Eleven is testing a new store fit-out in Australia. The trial format focuses a lot on drinks and fruit. Danish toymaker Lego is working with Chinese education departments to promote its products in the classroom as a way to boost motor skills.




Europe & Middle East


Tackling suppliers ▪ Buying group Agecore considers delisting items from Nestlé to achieve better buying conditions. It is not the first confrontation the alliance has with manufacturers. German grocer Edeka is the largest member of Agecore and one of the key drivers of the move.



Deal in danger ▪ A major advisory group has told Booker shareholders to vote against Tesco’s "less than compelling" GBP 3.7 billion takeover bid, pressing for a higher offering price and arguing that the British supermarket leader seems to be getting a better deal under current terms.



Cashing out ▪ Sergey Galitsky, CEO of Russian grocer Magnit, has sold a 29.1% stake in the retailer to Russia's VTB bank. The deal is said to be worth EUR 1.95 billion and Bloomberg states that it says a lot about the country's business environment.



Overseas investments ▪ Abu Dhabi-based retail giant LuLu Group will spend GBP 15 million in a new European headquarters in Birmingham. Meanwhile, British icon Marks & Spencer has unveiled an improved e-commerce website for the UAE with products that are relevant to the region.




USA


Fashion fights ▪ Walmart is introducing a number of low-cost clothing brands in a bid to woo shoppers from rival Amazon, as well as from traditional more fashion-forward competitors such as Target and Kohl’s. Meanwhile, a study named Target as the worst victim of Amazon's apparel offers.



Trouble ahead ▪ Supermarket company Bi-Lo, a subsidiary of Southeastern Grocers and owner of the Winn-Dixie chain, is planning to close at least 100 stores in a move to file for bankruptcy. Margins of supermarkets have taken a hit from growing competition.



Reporting results ▪ Coca-Cola Co posted a 20% fall in quarterly revenue as it continues to sell off its bottling operations, and recorded a billion-dollar US tax charge. Kraft Heinz's quarterly numbers also missed expectations, adding pressure on the food giant to fuel growth with a large acquisition.




Food for thought


Feeding China ▪ French dairy giant Danone is leading the race to feed China’s babies, gaining ground against Nestlé and Reckitt Benckiser. Sales of infant nutrition climbed almost 10% last year, mainly in China, where Danone has doubled its market share in baby food.



Alternative protein ▪ Plant proteins are big business and a fast-growing category that companies and retailers can’t afford to ignore, according to a new report titled “Plant-based profits”. It urges global food companies to diversify their protein sourcing away from a reliance on animal proteins.