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Retail Update - powered by LebensmittelZeitung

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In Britain, Cash & Carry operator Booker is to buy Budgens and Londis from Irish Musgrave Group in a deal worth 40 million pounds.  Danish Arla Foods has formed a joint venture with Egypt's largest dairy company and in Zambia, Spar International is close to signing a deal. Read these collaboration stories in today's issue and have a fantastic weekend.


Asia & south pacific
Chinese expansion strategies   Metro China has upgraded its e-commerce platform, which it says integrates online, offline and mobile channels for “a seamless customer experience”. Over in Germany, parent company Metro Group has confirmed sales talks for its Kaufhof department store chain +++ Polish clothing company CDRL (paywall) is going to launch 13 stores in China. ▪
Nestlé India in trouble    Food inspectors in the Indian state of Uttar Pradesh found excessive lead content in some of the Maggi samples they tested and ordered Nestlé to recall a batch. The Swiss multi is now in damage control. ▪
Winners and losers Down Under   Chocolate maker Cadbury cuts 80 jobs at its Tasmanian factory. Parent company, Mondelez, denied that a sales slump was to blame +++ Kiwi producer Zespri International has more than doubled its annual profit to NZ$ 34.6 million. ▪
Booker takes on Aldi and Lidl   Britain's biggest cash-and-carry wholesaler is to buy local grocery chains Londis and Budgens. The GBP 40 million deal is seen as a response to the growth of discounters. ▪
Arla and Ifco expand abroad   Egypt's largest dairy, Juhayna Food Industries, and Danish dairy giant Arla Foods have agreed to form a joint venture to sell Arla products in the country +++ Amsterdam-based international logistics service provider Ifco, a Brambles company, has acquired Renta Pack, Chile’s leading provider of reusable plastic crate pooling services. ▪
Spar Norway implements ESL    Store Electronic Systems, the leading supplier of electronic shelf labels (ESL), has entered into an exclusive agreement with the Spar group to install its solution across almost 200 stores in Norway. ▪
usa & canada
Staples to compete with Amazon   The US office supply chain sees the e-commerce giant as its biggest competitor, and has revealed its strategy to win back market share. Amazon, on the other hand, has partnered with the Auburn university to explore the implementation of RFID and has added New York-based grocery chain D’Agostino to its Prime Now service. ▪
Ikea builds DC in Ontario   The Swedish furniture retailer supports its Canadian growth and plans to open a 397,000-sq.-ft. distribution centre in Mississauga, Ontario +++ Over in Florida, Ashley Furniture Industries announced that it is establishing its U.S. e-commerce headquarters in Ybor City. ▪
More results revealed   Best Buy beats Wall Street projections for profits and sales in the first quarter, but suffers slower sales of electronics in Canada. Gap is reporting an 8% decline in its first-quarter profit. Sales were also slow in Q1 for the Fresh Market, while L Brands, the parent company of Victoria’s Secret and Bath & Body Works, continued its winning ways. ▪
Growing in Zambia   South Africa-based Spar Group is close to signing a deal to expand into Zambia and has announced first-half results saying that turnover increased by 40.7%, while operating profit rose by 29.3%. ▪
Tiger Brands struggles in Kenya   South Africa's biggest consumer foods manufacturer, says executives at its Kenyan business had cheated to reach targets as it reported flat first-half earnings. Haco Tiger Brands lost 60% of volume growth and 58% of turnover in the country. ▪

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