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

Hello, dear reader!
Pharma giants Pfizer and Allergan are on the cusp of creating a drug juggernaut. China's Alibaba is set to invest millions in start-ups in Taiwan. French cognac producers target Americans connoisseurs. Down Under, Aldi and rival Myer are on track and over in South Africa, retailers are facing challenging times. Have a great start to the new week.


asia & south pacific
Aldi and Myer are on track    The German supermarket chain confirmed that it will open its first store in South Australia in February 2016, 150 outlets will follow. Meanwhile, competitor Myer expects to return to sustainable sales, numbers were up 3.4% in the first quarter. David Whittle, a former advertising boss, has been appointed as the supermarket's new director. ▪
Zespri to produce in China   The New Zealand-based kiwifruit giant has signed a memorandum of understanding with Chinese officials. Trial sites for growing will be established in Shaanxi Province in April next year together with a kiwifruit "centre of excellence". ▪
Lawson to offer bank service   Japan's second-largest convenience store chain, Lawson, has decided to move into the banking business, utilising the ATMs that are installed in its outlets. ▪
Alibaba and start-ups  The Chinese e-commerce giant intends to launch a US$ 306-million fund to invest in start-ups in Taiwan. Over in China, the company is looking to sell its stake in one of the country's leading technology start-ups, in a deal that could be worth US$ 1 billion. ▪
Amazon creates jobs in Spain   The online retailer will offer 1,000 new jobs as part of its expansion plan in Spain during the next three years. Along with a new distribution centre in Barcelona, the company's logistical centre outside Madrid will be enlarged from 32,000 to 75,000 square metres. ▪
Container shipping consolidation   Marseille-based CMA CGM, the third largest container company in the world, is reportedly in talks to buy Singapore-based Neptune Orient Lines, Southeast Asia's biggest container shipper. A merger of the two companies “would contribute to the consolidation of the container shipping industry". ▪
Beverage decisions   Following a drop in sales in China, French cognac producers LVMH Moet Hennessy, Remy Cointreau, Pernod Ricard and Beam Suntory target the US market with new products +++ Czech soft drinks maker Kofola is set to launch an initial public offering and plans a number of acquisitions. ▪
usa & canada
Mega healthcare merger   Pharmaceutical companies Pfizer and Allergan are on the cusp of reaching a US$ 150 billion deal that would create the world's largest drugmaker by sales. It would allow Pfizer to re-domicile from its headquarters in New York to Ireland.  ▪
Improving shopping experience   Google restructures its online marketplace to make it more mobile-friendly, displaying the most commonly searched categories in broad search terms. Meanwhile, Fresh Market’s new CEO, Rick Anicetti, is set to improve efficiency, pricing and customer outreach of the gourmet supermarket chain. ▪
Outrunning competitors   Specialty athletic retailer Foot Locker reported impressive third-quarter results with a same store sales increase of 8.7%. Alabama-based sporting goods retailer Hibbett Sports posted a profit of US$ 18.7 million for Q3. Upscale housewares retailer Williams-Sonoma also grew profit, revenue and same-store sales. ▪
Tough times for Edcon and Mr Price    South African retailers have to deal with difficult market conditions. The sales slowdown of Durban-based budget retailer Mr Price is proof of this. Meanwhile, Johannesburg-based retailer Edcon is set to make sweeping changes under new boss Bernie Brookes as the ailing group tries to win back market share. ▪
Urbanisation drives retail   Urbanisation is the top trend driving retail in South Africa, according to Gavin Tagg, managing director of Retail Network Services. Globalisation is another dominant force, with more global brands like H&M, Zara, Hamleys and Forever 21 entering the South African market.  ▪

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