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Retail Update - powered by LebensmittelZeitung

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Another billion-dollar deal seems to be on track with cosmetic company Coty to acquire P&G's beauty business for US$ 12 billion after outdoing competitor Henkel. Chinese giants such as Alibaba, and Xiaomi venture into overseas markets and sportswear major Adidas launches an omnichannel model in India. Enjoy the read.


asia & Australia
Woolies looks for new CEO   Grant O'Brien, Woolworths’ chief executive, has announced his departure from the Australian supermarket giant as the retailer downgraded its profit guidance and announced it would axe 1,200 jobs +++ Wholesaler Metcash plans to fund upgrades in IGA stores with up to AU$ 50 million per year to compete against rival chains. ▪
Chinese giants invest overseas    Chinese e-commerce major Alibaba and Foxconn are in talks to jointly invest about US$ 500 million in India's online market place Snapdeal. Chinese second-largest online retailer has chosen Russia as the first overseas market for its expansion and iPhone maker Xiaomi is set to foray outside Asia for the first time, launching in Brazil at the end of June. ▪
Adidas and Muji take on India   German sportswear giant Adidas plans to grow its Indian business and has launched a fully integrated omnichannel model  +++ Reliance Brands has struck a joint venture with minimalist Japanese retailer Muji to open its stores in India. ▪
Logistic hubs in France and Italy   US-retailer Toys ’R’ Us has opened a new distribution centre in Saint-Fargeau-Ponthierry, France, to support the company's expanding e-commerce business +++ Italian discount retailer Lillo Group celebrates its new logistics centre near Caserta and is planning to open 60 new stores over the next five years, investing EUR 500 million and creating 1,250 new jobs. ▪
Giant milk deal under scrutiny    Dairy giant Müller’s plan to acquire Dairy Crest’s dairy operations for GBP 80 million is on the verge of a further in-depth investigation +++ Meanwhile, shoppers in the UK are prepared to pay significantly more for milk, new research has suggested. ▪
Challenging the discounters   British chain Bargain Booze has hit back Aldi's price comparison adverts with a new press campaign titled ‘Aldi Shmaldi’ +++ The Co-operative Food has embarked on a EUR 125 million fresh fruit and veg price-slashing programme to change consumers’ perception that convenience stores mean premium pricing. ▪
Coty is set to become perfume leader   The US-based cosmetic company is on track to acquire Proctor & Gamble’s beauty business in for US$ 12 billion. It would make the company the world leader in perfume and haircare. Coty was competing with Henkel for P&G's hair care businesses, but won in an auction. ▪
Amazon hunts for quicker deliveries   The US online giant  is reportedly expanding the assortment of items eligible for free two-day shipping for prime members and also thinking of paying ordinary people to deliver packages as part of a crowdsourced delivery programme, competing with shippers such as Fedex, whose revenues are expected to climb more than 10%. ▪
Store openings and other announcements   US retailer Shopko continues to expand, with the opening of 15 Shopko Hometown stores across eight states this July +++ Dollar General, which recently opened its 12,000th store, has named five executives to key leadership positions. ▪
rules and Regulations
Cutting the fat   The US Food and Drug Administration announced a new policy on trans fat, essentially banning it from processed foods. The agency gave manufacturers three years to phase out partially hydrogenated oils, or petition FDA to approve an exemption. ▪
Australia's grocery code becomes law   The Australian Food and Grocery Code is now law, with Woolworths and Aldi already signed up and players such as Metcash and Coles invited to join in. The voluntary code aims to protect suppliers and create an effective dispute resolution process. ▪

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