There is no one-size fits all strategy when it comes to new store formats. To attract customers, China's RT-Mart and Hema are betting on multichannel elements, while Australia's Woolworths is trialling a compact city store. At the same time, Amazon and Walmart seem not to worry too much about a convenient shopping environment as they both fight for the top spot in the grocery delivery arena. Enjoy the read!




Wednesday, 25 July 2018





Hello ,

There is no one-size fits all strategy when it comes to new store formats. To attract customers, China's RT-Mart and Hema are betting on multichannel elements, while Australia's Woolworths is trialling a compact city store. At the same time, Amazon and Walmart seem not to worry too much about a convenient shopping environment as they both fight for the top spot in the grocery delivery arena. Enjoy the read!




United States


Delivery competition ▪ Amazon and Walmart’s rivalry continues with two duelling announcements related to their respective grocery delivery expansions. The former will bring this service via Whole Foods to several new markets in New York and Florida, while the big box retailer expands its partnership with Postmates in California.



Gloomy outlook ▪ Kimberly-Clark lowered its yearly profit forecast as the maker of Huggies diapers and Kleenex tissues faced higher commodity costs and a stronger dollar. This follows speculations that the Dallas-based company considers the sale of its European business to improve its operations.



Political announcements ▪ The Trump administration will reportedly spend USD 12 billion in emergency relief for farmers hurt by the trade war to protect food producers from looming financial losses. Meanwhile, the President's oldest daughter, Ivanka Trump, is closing her fashion company to focus on politics.




Europe & Africa


Full steam ahead ▪ Perekrestok, a unit of X5 Retail, is said to be the first supermarket chain in Russia to pilot self-scan technology in Moscow. LZ Retailytics predicts a huge growth potential for the group's discount banner Pyaterochka. Click here to get their latest report about discounters in Europe.



British moves ▪ Tesco has appointed Kari Daniels to head the retailer’s Irish business, where she will replace Andrew Yaxley. Meanwhile, soft drinks giant Britvic is struggling to make the most of the heatwave due to a shortage of carbon dioxide. However, the soft drinks giant posted a solid third quarter.



Back to basics ▪ Johannesburg-headquartered retailer Edcon, which is trying to find its relevance again in the South African market, has chosen to stick with its old department store format Edgars and will revitalise the brand. Some analysts, however, are questioning Edcon's move.




Asia & Australia


Robotic service ▪ Chinese retailer Suning has rolled out five unmanned automated stores as the brand steps up its presence in China’s hugely competitive 'smart retail' market. They are powered by facial recognition technology, robots and big data. But the goal is not to replace manual work with machines.



Physical appearance ▪ Chinese e-commerce company Sandan Fresh has opened its first bricks-and-mortar store in Shanghai, becoming the latest player in the growing ‘online to offline’ retail scene. The retailer plans to open 20-30 more stores in the city and to install numerous self-service machines.



Going cashless ▪ Australian grocer Woolworths reckons it will not take long for them to launch a virtually cash-free supermarket where customer can only pay by card or phone. The company's latest inner-city store concept in Sydney looks to convince customers to change their shopping habits.




Picture gallery


Chinese inspirations ▪ Alibaba-backed RT-Mart is one of the strongest formats in China's grocery market. Lebensmittel Zeitung visited one of these markets in Shanghai. Click here for images. The magazine also had a look at Alibaba's Hema banner in Hangzhou. Here are the pictures (all captions in German).



Small and beautiful ▪ US discounter Target is expanding its footprint in New York with smaller stores, which are only about one-third of the usual size. The retailer plans to open 30 of these outlets each year and has posted a video tour through its small-format store model.