A host of first quarter results are in and highlight positive performances from fashion retailers Lululemon and Abercrombie. Meanwhile, US discount giant Costco is hiking staff wages and Lidl has supposedly hit a snag in Alabama. Across the Atlantic, Nestlé has come out to celebrate workplace diversity, and Mothercare is forced to close over a third of its stores. Enjoy the read and have a great week.




Monday, 04 June 2018





Hello ,

A host of first quarter results are in and highlight positive performances from fashion retailers Lululemon and Abercrombie. Meanwhile, US discount giant Costco is hiking staff wages and Lidl has supposedly hit a snag in Alabama. Across the Atlantic, Nestlé has come out to celebrate workplace diversity, and Mothercare is forced to close over a third of its stores. Enjoy the read and have a great week.




US & Canada


Southern sting ▪ Lidl has pulled out of plans to open a store in Alabama. It is a move which has some commentators speculating about the German discounter’s ability to compete with nemesis Aldi on American soil.



More money ▪ Costco is set to raise the minimum wage to USD 14 for its employees, as it becomes increasingly harder to attract staff. Over 130,000 workers will receive the one dollar per hour rise, in a move that will cost the company up to USD 120 million annually.



Results are in ▪ Lululemon is celebrating a better than expected first quarter profit, with revenue soaring by 25%. Abercrombie has also had a positive start to the year with net sales increasing by 11%. Meanwhile, GameStop, the world’s largest video game retailer, is suffering after a sales drop of 5.3%.



Positive partnership ▪ HelloFresh is the latest meal kit company to seek brick and mortar support and has aligned with Ahold Delhaize's Giant Food and Stop & Shop where customers can buy their goods without subscribing.




Europe


Job losses ▪ British maternity clothing retailer Mothercare is poised to close 50 stores and possibly lose 800 staff within the year, as part of a rescue package approved by landlords. Meanwhile, Italian confectionary company Melegatti has been declared bankrupt, with the loss of 350 jobs expected.



Progressive policy ▪ Nestlé has thrown its support behind the United Nation’s LGBTI Conduct for Business. The Swiss food heavyweight has said it is committed to an inclusive workplace and will continue to grow its efforts to promote diversity.


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New offering ▪ O’Key has announced the launch of a new format compact city hypermarket in Moscow. The new hypermarket with a self-scanning system will be the Russian food retailer’s 11th store in the capital city.




Asia & Australasia


Securing sites ▪ The Australian grocery sector is in for a shake-up as German supermarket giant Kaufland ploughs ahead with plans to open five new superstores. The German chain, which is part of the world’s fourth largest grocery conglomerate, is hunting for suitable property so they can accelerate their Aussie expansion.



Tech innovation ▪ Alibaba has launched a driver-less robot that travels at 9mph to deliver purchases. The robot, which can carry several packages of different dimensions, is currently being road-tested in Hangzhou with commercial production expected by the end of the year.



Online offering ▪ E-commerce giant JD.com has announced that its Thai domain will officially be introduced in August, with a soft launch set for June. Thailand is the company’s second largest market in Southeast Asia.




Social media musings


Food for thought ▪ The effects of Instagram on our food choices and purchases are irrefutable, with shareable photos of culinary delights among the most popular hashtags. Check out the new mouth-watering offerings trending this season.



Twitter trouble ▪ Buffalo Wild Wings has been forced to apologise following a series of racist tweets which were posted from its Twitter account. The American restaurant says the vulgar postings were the result of a malicious hack and they are pursuing those responsible.