It’s a digital world out there with big online developments. Spain's Inditex is set to sell all its brands through the Internet and Walmart invests in e-commerce distribution. However, some promising reports and insights from the US show that the traditional store is still alive. So don't worry that Amazon has reached USD 1 trillion - it's only a psychological benchmark. Enjoy the read!




Wednesday, 05 September 2018





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It’s a digital world out there with big online developments. Spain's Inditex is set to sell all its brands through the Internet and Walmart invests in e-commerce distribution. However, some promising reports and insights from the US show that the traditional store is still alive. So don't worry that Amazon has reached USD 1 trillion - it's only a psychological benchmark. Enjoy the read!




Europe


Online all the way ▪ Spanish clothing conglomerate Inditex, owner of fashion chain Zara, has announced it will sell products from all its banners on the Internet around the world, including markets where it does not have stores. Meanwhile, Green Man Gaming, a British online video game retailer, has confirmed its going public this year.



Hiring expertise ▪ Tesco has appointed Melissa Bethell as a non-executive director to its board. She was managing director of global private equity firm Bain Capital for more than 18 years and responsible for strategy setting and portfolio management. The British supermarket leader hopes to benefit from her range of skills.



Reporting results ▪ Helped by the demand for new products, Danish toymaker Lego was able to stabilise revenue for the first six months of this year after a drop in 2017. Operating expenses associated with a transformation programme has negatively impacted first half-year results at French grocer Auchan.



High street casualties ▪ More than 400 jobs have been slashed at Fenwick as profits at the upmarket British department store chain took a dive. This comes as its rival John Lewis announced 250 job cuts across IT, finance and store security amid a major rebranding process.




United States


League of legends ▪ On Tuesday, Amazon briefly joined Apple to become the second USD 1 trillion publicly listed US company after its stock price more than doubled, before dipping back down. Meanwhile, its newly formed healthcare venture with Berkshire Hathaway and JP Morgan has hired a former digital health manager as chief operating officer.



E-commerce investment ▪ Walmart is set to spend USD 41 million and create 400 full-time jobs at a new facility in Kentucky, dedicated to fulfilling online orders from the big box retailer and its subsidiary Jet.com. The new distribution centre will also employ several hundred temporary workers.




Asia


Bridging the Gap ▪ Indian online grocer Bigbasket will offer its customers a physical shopping experience through a virtual reality app, which will allow users to look around and browse products just as they would in a traditional store. They can inspect and interact with items, before ordering.



Supply chain improvement ▪ International retailer Spar and Coca-Cola are partnering in China to develop a trial to increase efficiency in the end-to-end supply chain. The Spar team has worked with the Chinese government, contributing to a set of standards for vehicles and handling equipment.




What to watch


Metro's future ▪ EP Global, the investment arm of Czech businessman Daniel Křetínský, does not exclude buying more shares in German retailer Metro, but it is too early to say if it will seek to take it private. The company wants to gather more information for its final decision.



No retail apocalypse now ▪ From the garden section at Walmart to the diamond counters at Tiffany's, old-school retailers are experiencing some of their best sales growth in years says the New York Times, and research by IHL Group finds out that more stores are opening than closing in the US.