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Retail Update - powered by LebensmittelZeitung

Hello, dear reader!
Delivery wars intensify in Britain, while German food delivery start-up HelloFresh is postponing its initial public offering. Over in China, Alibaba ponders about investing in grocery ordering. These stories and more are in today's issue. Don't forget to share with your colleagues and spread the word. RetailUpdate subscription remains FREE.


Asia & south pacific
Department stores Down Under   Australian upmarket retailer Myer, which aims to increase sales by 3% a year as part of an ambitious growth plan, has announced the resignation of its marketing manager, Tara Lordsmith.  Fashion retailer Topshop continues to expand in New Zealand with Christchurch as its next destination. ▪
Alibaba reaches billion-dollar deal   The Chinese e-commerce giant is set to take over video streaming service Youku Tudou in an estimated US$ 4.8 billion all-cash deal. The group is also reportedly in talks to invest US$ 80 million in grocery ordering smartphone app Boxed Wholesale. ▪
Tesco goes green in India   Tesco Bengaluru, the global services arm for Tesco worldwide, wants to reduce its carbon footprint and has partnered with Lithium Urban Technologies, which will provide electric cabs for employees. ▪
French giant in the making    Books and music retailer Fnac has increased its offer for Darty, Europe’s third largest electrical goods retailer to GBP 615 million and reached an agreement. A combination of the two will create a French retail goliath with annual sales of more than EUR 7 billion (paywall). ▪
Delivery competition heats up   While German food-delivery start-up HelloFresh is postponing its initial public offering due to market volatility, the delivery war in Britain intensifies - Amazon and Argos go head-to-head with same-day delivery. The US online giant has also launched this service in Italy. ▪
Connecting shoppers online   Co-operative Food has launched an innovative online platform that will enable shoppers to interact with Fairtrade producers across the world. Meanwhile, Waitrose aims to expand its online capacity to 20,000 orders a week with its new state-of-the-art fulfilment centre in Surrey. ▪
Arla put Rynkeby up for sale  The Danish dairy giant has placed its juice business on the market. Rynkeby Foods is the largest juice producer in northern Europe with an annual turnover of EUR 150 million. ▪
Ikea grows in America    The Swedish furniture retailer plans to double its number of stores in Canada over the next 10 years after seeing in-store visits increase by 4%. US store sales grew (paywall) by 4.5% and total sales, including e-commerce, by 8.6%. ▪
In search for settlements   Lowe's has reached a settlement with the New York attorney general's office. The home improvement chain will pay US$ 1 million for overcharging customers. Meanwhile, Apple has won a class action lawsuit filed by employees over 'demeaning' policy. ▪
Changes at top level   Tod Pepin, who has been with Hannaford Bros. for 30 years, will be Senior Vice President of foods at hypermarket chain Meijer’s. Department store company Stein Mart reported negative sales growth on the same day that the company lost its chief merchant, Brian Morrow, to off-price rival, Ross Stores. ▪
Edcon under scrutiny   The Johannesburg-based retail company faces penalties after the National Credit Regulator found it had been wrongly charging consumers a fee for clubs linked to store cards that shoppers used at its franchises. ▪
Uchumi continues rationalisation   The Nairobi-based supermarket operator has terminated contracts with third parties for the supply of outsourced employees as part of an ongoing staff rationalisation. 1,238 workers have been withdrawn from Uchumi stores countrywide.  ▪
Boutique acquisition pays off   Online retailer Truworths, which recently acquired Earthchild and Naartjie boutique businesses, reported a boost in sales. UK's Office Retail Group is interested in buying the South African-based company. ▪

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