Investing in retail can be tricky - Shareholders might have to rethink business at Walmart after the retailer lowered its earnings predictions. After having raised more money, Instacart's value is skyrocketing into the billions. Across the Atlantic, Spanish grocer Dia has issued its third profit warning as it struggles with falling sales. Exciting times - stay tuned and have a great day.




Wednesday, 17 October 2018





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Investing in retail can be tricky - Shareholders might have to rethink business at Walmart after the retailer lowered its earnings predictions. After having raised more money, Instacart's value is skyrocketing into the billions. Across the Atlantic, Spanish grocer Dia has issued its third profit warning as it struggles with falling sales. Exciting times - stay tuned and have a great day.




US & Canada


Online focus ▪ Citing the impact of its Flipkart acquisition, Walmart has trimmed its 2019 earnings forecast and expects less robust e-commerce growth. The retailer has also entered a partnership with Advance Auto Parts to sell products online. The deal will include home delivery and same-day pick up at both retailers.



Ambitious goals ▪ San Francisco-based Instacart has raised a new USD 600 million round of funding that values the start-up at USD 7.6 billion. Its CEO, Apoorva Mehta, wants every household in the US to use its grocery delivery service that allows shoppers to order from more than 300 retailers.



Digital marketplace ▪ Supermarket operator Albertsons has launched an online marketplace that provides a venue for third-party vendors to sell directly to its customers. The virtual store focuses on natural, organic, ethnic and alternative products, and unique health and beauty articles.



Toy space ▪ Discount chain Target will dedicate nearly a quarter of a million square feet of new space to its toy business across 500 stores in an effort to win more holiday sales and keep rival Walmart at bay. Customers will be able to shop for more than 2,500 toys.




Europe


Ongoing investigation ▪ Britain’s competition regulator will include discounters Aldi and Lidl as well as online giant Amazon in its probe into Sainsbury’s and Asda’s proposed merger, which will increase the deal's chances of being approved without losing too many stores.



Tough competition ▪ Spanish retailer Dia has issued its third profit warning, and has suspended dividend payments as it struggles with falling sales. The budget chain, which has to compete with local heavyweight Mercadona and discounters Lidl and Aldi, also announced board changes.



Invitation for big spenders ▪ Britain's John Lewis offers customers a luxury 'private shopping' experience. Shoppers with a bit of money at hand are given the opportunity to have the retailer's Cheltenham shop all to themselves for the evening – as long as they’re prepared to put GBP 10,000 into the tills.




Asia & Australia


Amazon invests ▪ The online giant from Seattle is said to be in advanced talks, to acquire a stake in Indian conglomerate Future Retail. The potential deal could be worth GBP 257.1 million. In Australia, Amazon is threatening rivals with its foray into food, now offering a 'pantry range'.



Joining forces ▪ Italian spirits brand Campari has partnered with Alibaba's Tmall market place to offer its iconic drinks to Chinese consumers. In Japan, retail giant Aeon and supermarket operator Fuji have entered an agreement that will see the former expand its footprint in the west of the country.




Africa & South America


Crunching numbers ▪ South African supermarket chain Pick n Pay Stores posted a half-year profit jump of 19.1% to EUR 40.4 million as price cuts attracted more shoppers to its stores. The country's consumers are feeling the impact of low growth in income and tight credit conditions.



More results ▪ Carrefour Brasil posted a strong boost in third-quarter sales, supported by the retailer’s e-commerce initiatives. Revenue rose to USD 3.76 billion. Same-store sales climbed 5.1%. As in previous quarters, growth was driven mainly by the company's cash-and-carry format.