German discounter Aldi and Lidl revealed ambitious growth numbers in the UK, while high street icon House of Fraser and Australia's Myer fight for survival. Mexico's Chedraui has bought US grocer Fiestamart. President Trump’s decision to be tough on China has triggered fierce reactions. Enjoy the read and have a great start to the week.




Monday, 26 March 2018





Hello ,

German discounter Aldi and Lidl revealed ambitious growth numbers in the UK, while high street icon House of Fraser and Australia's Myer fight for survival. Mexico's Chedraui has bought US grocer Fiestamart. President Trump’s decision to be tough on China has triggered fierce reactions. Enjoy the read and have a great start to the week.

ADVERTISEMENT
Banner





Europe


Pushing growth ▪ Aldi and Lidl are plowing ahead with a rapid expansion in Britain. The former has revealed that it aimed to have 1,000 stores by 2022, while the latter sees potentially 1,500 outlets in the long term. In Belgium, Lidl is set to reduce its plastics by 20% and introduce recyclable packaging material by 2025.



Crisis talks ▪ Struggling British department store chain House of Fraser has approached specialist lenders and investors to turn around financial stress. The high street chain, which was bought by Chinese conglomerate Sanpower in 2014, suffered a dismal start to the year. So far talks haven't progressed.



Pulling out ▪ British pharma giant GlaxoSmithKline withdrew from the bidding for Pfizer’s consumer-health unit, which leaves the US drug maker with even lesser options to dispose of the business that’s valued at as much as US$ 20 billion. Shareholders have cheered GSK's boss Emma Walmsley for the decision.




US & Mexico


Tariff concerns ▪ Fallout continues following President Trump's announcement of up to US$ 60 billion in tariffs on Chinese imports. American retail giants already opposed the plan, Walmart supplier Li & Fung might move production away from China, but insiders warn that a trade war won't be easy to win.



Fresh on track ▪ Multinational meal kit service provider HelloFresh said its US business nearly doubled in the last year. The Berlin-based company reported a 90.1% increase to about US$ 674 million and expects to break even by the fourth quarter.



Mexican takeover ▪ Mexico’s Grupo Comercial Chedraui agreed to buy Texas-based Fiesta Mart via its US unit Bodega Latina. The acquisition of the 63 locations will strengthen the presence of the Mexican retail group in the US, where Hispanic food is one of the fast-growing segments.




Asia & Australia


Pan-Asian ambitions ▪ With the ambition to create a leading food retailer in the Philippines, Robinsons Retail has partnered with Manila-based Dairy Farm International through a share swap and acquired grocery chain operator Rustan, which operates a number of banners across the islands.



Shoe haven ▪ India has become the largest market for Swiss shoe retailer Bata. With 1500 stores across the country and a whopping annual revenue, CEO Alexis Nasard is keen to capitalise on the momentum by modernising and targeting the youth market.



Fighting for survival ▪ Myer's desperate struggle for survival may trigger a price war Down Under. Drastic plans are in the works to lift the department store chain out of the shopping doldrums. Insiders, however, reckon that going cheap is a poisoned chalice.




Keep an eye on


Dispensing automobiles ▪ Car shoppers in Guangzhou now have the ability to buy or try a car using a smartphone app and a vending machine. The facility came out of a partnership between Ford and Alibaba. The 'Super Test-Drive Center' houses dozens of vehicles. Click here to see how it looks like.



Future food ▪ A new study on eating trends in the US found out that 'flexitarians are on the rise'. 34% of consumers eat a totally vegan meal at least once per week and more than half of them are interested in meat blended with grains and veggies. Click here for a slideshow of new meals.