Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung

Hello and good day!
Two European deals are in the retail spotlight. Swiss tour operator Kuoni has been taken over by German Rewe group and acquisition-shy Italian chocolate company Ferrero has bid for UK rival Thornton. Over in the US, the Staples Office Depot mega merger gets nearer to completion. Enjoy your Tuesday issue.


Ikea Korea in pricing spotlight   The Swedish furniture maker has come under fire in the South East Asian country for charging double the global prices. Ikea Korea refuted the survey results, saying that it considers a mix of factors in setting prices in each country. ▪
Asian store roll-out on the agenda   After launching its first Chinese store in May 2015, US furniture retailer Homelegance China plans to open up to 30 stores per year in the country +++ Specialty retailer SSI Group has obtained the franchise for the Joe Fresh fashion brand in the Philippines and wants to build up a chain of stores.  ▪
Pernod Ricard announces boss for Indian unit  The French beverage giant is rejigging its management team at its Indian unit and announced Guillaume Girard Reydet as its first expat managing director. ▪
Cross-border deals   German retailer Rewe Group has purchased the entire European tour operating business of Swiss travel group Kuoni +++ Italian chocolate group Ferrero agreed to buy smaller U.K. rival Thorntons for GBP 112 million. The deal is the first acquisition of a branded company by Ferrero. ▪
Tesco rates bad   Suppliers have rated the British retailer as the worst of the major supermarkets at complying with a government-backed industry code. On a brighter note, Groceries Code Adjudicator Christine Tacon just praised the “big improvement” in trading conduct by Tesco buyers under new CEO Dave Lewis. ▪
Fyffes aims high   The Irish fruit multinational has boosted its earnings target for 2015 in light of a strong performance in the first half of the year. The EBITDA range now includes an estimated depreciation charge of EUR 11 million for 2015, compared to EUR 8.1 million in 2014.   ▪
Big penalties for Carrefour and Colruyt  Illegal price fixing is not only a problem for the German watchdog as reported last week. Belgium’s competition authority fined 17 supermarkets and suppliers a total of EUR 174 million for plotting to fix prices. Carrefour and Colruyt face the biggest penalties. ▪
 usa & canada
More approvals for Staples merger   A deal that would leave the nation with one giant office-supply retailer is one step nearer to completion. Office Depot shareholders have voted overwhelmingly in favour of the proposed US$ 6.3 billion buyout offer from rival Staples. ▪
Lifestyle empire sold   Martha Stewart Living Omnimedia, the publishing and licensing company built around an image of impeccable—if unrealistic—domestic bliss, is being sold for US$ 353 million to Sequential Brands, a clothes brand management firm. ▪
Metro Canada revamps and Macy's redeems   After a US$ 8 million renovation, Metro Plus reopened “the banner’s latest store concept” in Levis, Quebec +++ US department store company Macy’s is redeeming US$76 million in debt through its Macy’s Retail Holdings subsidiary. ▪
latin america
Sabmiller broadens its beer range   The world’s second-largest brewer by sales says that it will expand its beer category in Latin America, its biggest single market. However, the company has cut its forecasts for growth (paywall) in the region because of increased competition. ▪
Sweet Hair eyes Middle East   The Brazilian hair care and cosmetics company has announced that it is expanding to the Middle East with distribution deals confirmed for Kuwait, Oman and Saudi Arabia. Sweet Hair currently exports to 15 countries. ▪

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