The march of the discounters is continuing. Within three years Aldi is set to become the second largest grocery retailer in Europe. In the US, Walmart has gained momentum with soaring online sales and over in China, Alibaba delivered whopping results. Enjoy the read and have a relaxing weekend.




Friday, 19 May 2017





Hello, dear reader

The march of the discounters is continuing. Within three years Aldi is set to become the second largest grocery retailer in Europe. In the US, Walmart has gained momentum with soaring online sales and over in China, Alibaba delivered whopping results. Enjoy the read and have a relaxing weekend.

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Europe


Aldi on the way up ▪ The German discount powerhouse is on a reinvention course, adjusting its growth strategy with promising results. Despite pressure from online businesses and rival discounters, LZ Retailytics predicts that Aldi will soon be No.2 in Europe's grocery retail industry.



Booker sticks to Tesco ▪ Reporting a 15% rise in annual profit, the British wholesaler expects that the GBP 3.7 billion merger with the UK supermarket leader remains on track and will be completed by early 2018. Meanwhile, Tesco reportedly trials one-hour delivery (paywall) service in London.


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Catching up ▪ After successfully testing a pilot store in Kiev and in a bid to gain ground, Ukrainian supermarket chain Furshet has announced that it will roll out its new supermarket concept. Over in the UK, Marks & Spencer has been crowned ‘Supermarket of the Year 2017’, beating Aldi and Waitrose.




USA & Latin America


Walmart in fighting shape ▪ The US big-box giant is gaining momentum in its fight against Amazon, reporting a big jump in online sales and an increase in store traffic. Total revenue climbed to US$ 117.5 billion in Q1. However, it's UK unit Asda suffered yet another quarter of falling sales.



Target follows suit ▪ The Minneapolis-based discounter announced better-than-expected first quarter results with digital sales growing 22%. The retailer has partnered with online start-up Casper and will soon start selling the popular mattress-in-a-box brand.


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Positive outcome ▪ Colombia-based Grupo Éxito also enjoyed a double-digit increase in sales in the first quarter and attributes this to 'strong sales performances in Brazil and Uruguay. The company, which is part of Groupe Casino, has currently 8 stores under construction.




Asia & Africa


Alibaba thrives again ▪ The Chinese e-commerce giant, which reported a colossal Q4 profit of US$ 1.4 billion, has entered a strategic partnership with German manufacturer Bosch to develop smart devices and omnichannel retailing. Bosch saw a 19% sales rise in China.



Ikea delivers in India ▪ The Swedish furniture retailer is gearing up to build a home-services department that will take care of deliveries and assembly of its products, as it expects around 50% of its Indian customers to avail this facility. This is in stark contrast to any other market Ikea operates in.



Steinhoff plans spinoff ▪ The acquisitive retailer plans to list its African assets, including clothing retailer Pepkor and furniture chain JD Group. The move reflects the company’s transformation into a global retail giant with most of its revenue generated outside Africa.




What to watch


Gaining customer insights ▪ UK retailers are increasingly using big data to learn about buying behaviour. Check out how Tesco & Co. are using artificial intelligence. Meanwhile, a majority of French people fear the retail sector becoming dehumanised by digitalisation according to Paris Retail Week.



Microsoft enters Africa ▪ The US tech giant announced that it will soon open two data centres for its cloud-based services in Johannesburg and Cape Town. It’s worth noting that neither Google nor Amazon currently operate regions in Africa.