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Retail Update - powered by LebensmittelZeitung

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Irish dairy farmers are pressuring Lidl and Aldi to pay more for milk. Target has beaten Walmart in second-quarter results; while Alibaba recruits former Walmart top exec. Read these stories and more in today’s RetailUpdate.

asia & australasia
Flipkart to phase out commissions   In an effort to entice more merchants for its online marketplace, the e-commerce company plans to stop charging merchants commissions. Instead, they will encourage merchants to advertise for a fee. In other news, Flipkart is suing Nikon India for warning visitors on their website not to purchase from Flipkart or rival Snapdeal. ▪
Openings Down Under   Due to an agreement between Federation Centres and global leisure giant Merlin Entertainments, Legoland will open in Melbourne. It is its first centre in the southern hemisphere +++ Internationally renowned jeweller Tiffany announced its intentions to open its first company-operated store in Auckland, New Zealand. ▪
Ayala Corp to return to food   To compliment a host of recent investments that target the Philippines’ growing population, the Manila-based conglomerate may return to the food business. Ayala Corp is reportedly looking at the whole value chain: manufacturing, distribution and retail. ▪
Big growth for UK online clothing   UK online retail sales grew 12% year-on-year in July, according to IMRG Capgemini E-tail Sales Index. One of the top performers was the clothing sector, which grew 14%. ▪
Irish dairy farmers pressure discounters   After agreeing to pay UK farmers more for their milk, Lidl and Aldi are under increasing pressure to pay Irish dairy farmers more +++ Meanwhile Belgian milk producers, unhappy about low prices, have been blocking the entrance to Liege airport since Tuesday to draw attention to their concerns. ▪
New strategy works for Budgens   Following its overhaul of selected stores across England, the independent budget chain has reported positive results. The new stores were redesigned to appeal to more upmarket customers who would likely shop at stores such as Marks & Spencer and Waitrose. ▪
Alibaba recruits former Walmart exec   As Alibaba eyes US growth, former top Walmart executive Wan Ling Martello has been appointed on the e-commerce giant’s board of directors +++ Amazon (pay wall) enters the Japanese audiobook arena. ▪
Lowe's still outdone by Home Depot   The home improvement chain hoped not to be overshadowed by the Home Depot’s recent strong financial result.  However, second-quarter earnings of US$ 1.13 billion, up from $1.04 billion in the same quarter last year, wasn't the result they hoped for +++ Meanwhile, rising operating expenses, related mainly to store acquisitions and advertising, reduced Ace Hardware Corp's profit. ▪
Target beats Walmart   In stark contrast to Walmart’s disappointing second-quarter results, Target’s second-quarter sales grew 2.8% to US$17.4 billion, same-store sales grew 2.4% and digital sales increased 30%. ▪
consumer behaviour
Cheap gin tastes best   Connoisseurs of the finer things might be surprised by a taste test conducted by consumer group Which?: Budget supermarket gins available from Morrisons, Lidl and Waitrose scored higher than popular high street brands. ▪

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