Amazon and Aldi are regarded as top threats in the fast-changing retail industry. LZ Retailytics takes a closer look at the opportunities that the online behemoth from Seattle has at hand in Europe, while the success formula of the German discounter is investigated in Australia. Enjoy these thought-provoking reads and have a relaxing weekend.




Friday, 03 August 2018





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Amazon and Aldi are regarded as top threats in the fast-changing retail industry. LZ Retailytics takes a closer look at the opportunities that the online behemoth from Seattle has at hand in Europe, while the success formula of the German discounter is investigated in Australia. Enjoy these thought-provoking reads and have a relaxing weekend.




Asia & Australia


Beer deal ▪ Heineken has agreed to take a 40% stake in China Resources Beer, the country's largest brewer, in a USD 3.1 billion deal. The partnership will give the Dutch brewer, which entered the Chinese market in 1983, a greater access to one of the world’s fastest-growing premium beer sectors.



More partnerships ▪ Germany’s Infineon Technologies has signed an agreement with Chinese powerhouse Alibaba to jointly promote uses of the Internet of Things. Meanwhile, US start-up Standard Cognition teamed up with Japanese drugstore wholesaler Paltac to introduce Amazon Go-style operations to 3,000 stores in Japan.



Fighting plastic ▪ New Zealand retailer Foodstuffs announced that all its banners will no longer offer plastic checkout bags from 2019. Across the Tasman, hapless supermarket giant Coles has flipped again and will start charging for reusable bags instead of supplying them for free as promised before.




Europe


Achievements in Russia ▪ Despite a quarterly drop in profit and sales, German wholesaler Metro sees 'tangible improvement' in its operations in Russia, which has sent its shares soaring. Meanwhile, Russian hard discounter Svetofor has announced plans to launch in Romania with the aim of opening 100 stores.



Rescue struggle ▪ Britain's House of Fraser is at risk of collapsing into administration after Chinese conglomerate C.Banner pulled out of a rescue deal. The struggling department store business has placed accountancy firm EY on standby to handle the collapse as it desperately tries to find a new investor.



Waste reduction push ▪ Lidl has launched a food waste reduction initiative in the UK which will see it sell slightly damaged fruit and vegetables at a discount. If the trial is successful, the German discounter says that it will consider a national roll-out across its entire estate.




US & Latin America


Chilean acquisition ▪ Santiago-headquartered retailer Fallabella has purchased Latin American company Linio, an online marketplace that operates in eight countries across the continent. The grocer hopes to bolster its online presence and to accelerate investments in technology with the acquisition.



Tech investments ▪ Idaho-based grocer Albertsons has partnered with venture capital firm Greycroft to invest in and develop grocery-related tech innovators. Meanwhile, speciality retailer Vitamin Shoppe has launched its own incubator programme, looking for innovative new products and brands.



High expectations ▪ Florida-based supermarket chain Publix saw a rise in revenue in Q2, helped by favourable tax cuts and accounting changes. Organic grocer Sprouts Farmers Market posted sales in line with expectations, while burger chain Shake Shack disappointed analysts with its full-year forecast.




Thought-provoking reads


Opportunities for Amazon ▪ A new survey finds that Amazon's food offerings are regarded as a threat to traditional grocers. After all, the online giant from Seattle generates 8.1% of total revenues from physical stores. LZ Retailytics wonders whether this could be a growth strategy for Europe. Click here to get their latest report.



Aldi's Australian way ▪ Media outlet The Conversation investigates the strategy of the German discounter Down Under and comes to the conclusion that Aldi will not overwhelm the local majors Coles or Woolworths because of limitations of the Aldi formula. The discounter currently operates 500 outlets across the continent.