US discounter Target is accelerating its investment in stores and online to better compete with Amazon and Walmart, although this has taken a toll on profit. Danish toymaker Lego has posted more troubling figures, German retail group Rewe bets on e-commerce and Britain's Sainsbury's trumps Aldi with its pay rises. Enjoy the read!




Wednesday, 07 March 2018





Hello ,

US discounter Target is accelerating its investment in stores and online to better compete with Amazon and Walmart, although this has taken a toll on profit. Danish toymaker Lego has posted more troubling figures, German retail group Rewe bets on e-commerce and Britain's Sainsbury's trumps Aldi with its pay rises. Enjoy the read!

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USA


Big spender ▪ Minneapolis-based Target, which posted disappointing Q4 earnings, is set to invest billions of dollars this year in store formats and e-commerce operations. In its latest attempt to blur the lines between online ordering and brick and mortar, the retailer will expand its 'Drive up' curb side pick-up service nationwide.



Amazon delivers ▪ The online titan expands its grocery delivery for orders from Whole Foods to Atlanta and San Francisco with prime customers being offered a free two-hour delivery window. Meanwhile, Greg Greeley, boss of Amazon Prime, is leaving the company to start a new position at Airbnb.




Europe


More toy trouble ▪ Lego has reported its first drop in sales and profits in more than a decade as children ditch its plastic bricks for more modern toys. 2017 sales declined by 8% following a “challenging year” during which the company axed 1,400 jobs. Here are explanations as to why the Danish toymaker failed to click with its customers.



Boosting e-commerce ▪ German retailer Rewe plans to roll out its online grocery delivery service in cooperation with its independent shopkeepers. The Cologne-headquartered co-operative is actively trying to make grocery e-commerce palatable to them with support and information. LZ Retailytics explains how it will work out.



Fighting discounters ▪ Sainsbury's has announced that it is investing over GBP 100 million in its store staff, increasing pay rises up to GBP 9.20 per hour to trump rivals Aldi and Lidl. The move comes as the UK's second largest supermarket operator recorded a drop in its market share according to new data.




Asia & Middle East


Selling stakes ▪ Nanjing Cenbest, the Chinese parent organisation of Britain's House of Fraser, plans to offload its majority stake in the troubled British department-store chain. The company is reportedly in talks with Wuji Wenhua, a tourism development firm.



Expansion drive ▪ Thai retailer Central Group is set to invest around US$ 1.51 billion to grow its store footprint locally and overseas and is aiming to increase sales by 14% this year. By 2022, the group wants to operate over 7,500 stores in Thailand, from the current 4,970.



Success in the Emirates ▪ Abu Dhabi-headquartered Lulu Group has signed a US$ 82 million agreement with Dubai Wholesale City to set up a central logistics hub within the fully integrated facility. Meanwhile, UAE-based supermarket chain Union Coop has posted a record profit for 2017.




Trends to watch


Flagship office ▪ In a bid to reduce store sizes and scale back its high street presence Britain's Debenhams is considering renting space in its flagship London department store to a hot desking firm and is in talks to rent floor space to flexible-office provider WeWork.



Cordless future ▪ Vacuum cleaner maker Dyson will no longer produce plug-ins and is investing in making its cordless range smaller, lighter and more efficient. The Dyson Cyclone V10 cord-free vacuum that Dyson just unveiled in New York is regarded as a new milestone of battery-powered vacuums.