Friday's bombshell that Amazon buys Whole Foods surely sent shock-waves through the industry. In today’s issue, we feature insights into the billion-dollar purchase. Meanwhile, Walmart continues to push for a bigger online presence and Britain's Sainsbury's takes on Tesco by considering to acquire convenience chain Nisa. Exciting times!




Monday, 19 June 2017





Hello, dear reader

Friday's bombshell that Amazon buys Whole Foods surely sent shock-waves through the industry. In today’s issue, we feature insights into the billion-dollar purchase. Meanwhile, Walmart continues to push for a bigger online presence and Britain's Sainsbury's takes on Tesco by considering to acquire convenience chain Nisa. Exciting times!




USA


Blockbuster grocery deal ▪ In its biggest transaction to date, Amazon has announced that it is acquiring organic grocer Whole Foods, which will give the online giant hundreds of physical stores. The all-cash transaction is valued at US$ 13.7 billion. Grocery competitors lost a combined market value of US$ 21.7 billion when the news was made public.



Walmart buys Bonobos ▪ The only retailer with the size, scale and funds to take on Amazon, has made another move to gain more online power by buying men's clothing company Bonobos for US$ 310 million in cash. With the purchase, Walmart aims to widen its appeal to younger consumers.



Nestlé considers sale ▪ The Swiss food giant explores options to get rid of its US confectionery business, including Butterfinger, Crunch and Laffy Taffy, which generated revenue of about US$ 920 million last year. Nestlé could fetch US$ 3 billion for the division.




Europe


Sainsbury's eyes Nisa ▪ The British supermarket operator is closing in on a GBP 130 million deal to acquire the smaller convenience chain, which currently operates over 3,000 stores. In light of the proposed Tesco-Booker alliance, Nisa has no choice but to consider its options, says LZ Retailytics.



Rewe supports independents ▪ The supermarket division of the Cologne-based retail group plans to reinforce free entrepreneurship. It's approximately 1,100 independent shopkeepers may in future have the option to become sole shareholders. The move is seen as a step to differentiate from offline and online competition.


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Eroski promotes locals ▪ The Spanish retailer is poised to start a campaign alongside 80 suppliers in the Navarra region to support the local agri-food community. Eroski has purchased EUR 1 billion worth of products from the region in the last five years and enjoyed a 10% sales increase in this segment.




Asia & Australia


Meat safety rules ▪ In a bid to stamp out tainted meat, China’s Food Safety Law is requiring all regions to establish a “standardised safe meat supermarket”. The initiative will become compulsory. The new rule is designed to help consumers feel at ease when buying meat.



Targeting China's middle class ▪ Baby food maker Bubs Australia has signed a partnership with online retailer Kaola.com to sell its infant formula to the high-end Chinese market. This comes after supermarket giant Woolworths has inked a deal with the e-commerce platform to offer its private label products.



Aube lands in Sydney ▪ Japanese beauty and retail group Aube, which operates 110 beauty hair salons in its home country and eight locations overseas, has launched its first store in the Australian metropole. Consumers are offered the latest Japanese hair products and state-of-the-art techniques.




Insider Insights


End of an era ▪ Amazon’s surprise acquisition of Whole Foods shakes up an 800-billion-industry. Here are five potential impacts for the grocery sector and its players. The future of retail will be a combination of both e-commerce and a brick-and-mortar retail presence, says Techcrunch.



Tesco gets stronger ▪ The British supermarket leader posted a group sales increase of 1.0% in the first quarter of the year; its sixth consecutive period of growth. UK like-for-like sales were up 2.3%. "This is a good start to the year," its CEO said. Here's how the analysts saw it.