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

Yesterday it was expected, today it has been confirmed - Pfizer and Allergan have merged in the largest so-called inversion deal ever. Speculations about other possible takeovers are circulating in the Northern as well as the Southern hemisphere. Enjoy the read and don’t forget to share the news with your friends and colleagues!


Asia & Australia
Takeover bid for Big W   Rumours have it that global private equity giants TPG and The Blackstone Group are preparing a takeover proposition for Woolworths' Big W division. The struggling Australian marketleader announced the appointment of ex CEO Roger Corbett as an adviser to its board. ▪
China seeks to drive consumption   The country's cabinet has announced to accelerate reforms to remove internal barriers to both foreign and domestic trade +++ Shanghai is trying to attract 'Unicorn' start-ups - those whose market value surpasses US$1 billion each - to set up in China's largest city. ▪
Lulu Group to enter Malaysia   The owner of the largest hypermarket chain in the Middle East plans to invest US$ 300 million in rolling out 10 hypermarkets in the next two years and gradually expand to all parts of Malaysia. ▪
Interest in Home Retail Group   Argos' parent company is reportedly being eyed by private equity companies. A takeover could be worth GBP 1 billion +++ A confirmed acquisition is that of  Amsterdam-based e-commerce software company SEOshop by Lightspeed POS, which will involve the launch of Lightspeed eCom, a new e-commerce platform for the UK. ▪
Varied financial strategies   Losses at Harris & Hoole, the coffee chain part-owned by Tesco, cause the retailer to inject more funds +++ Competitor Morrisons sparks the petrol price war by possibly lowering prices below GBP 1-a-litre +++ Department store Debenhams angers its suppliers by asking them for a reduction for prompt payment. ▪
Winning numbers games    In Ireland, SuperValu has reclaimed top spot from Tesco with a market share of 24.6% +++ In the UK, meatballs and mattresses have helped Swedish homeware giant Ikea report a surge in sales +++ In France, the country's e-commerce sector grew by 15% during Q3.  ▪
Billion-dollar takeovers confirmed   Drug giants Pfizer and Allergan agreed to merge in a deal which is valued at roughly US$ 160 billion and will create the world's largest drugmaker +++ Another billion-dollar deal confirmed is the acquisition of pet supplies retailer Petco by CVC Capital Partners and the Canadian Pension Plan Investment Board for approximately US$ 4.6 billion. ▪
Supervalu considers sale   After receiving interest from private-equity firms, the fifth-largest food retailer in the US is considering a sale rather than a spin off of its Save-A-Lot supermarket chain. ▪
Starting Cyber Monday early   Retailers Walmart and Target chase e-commerce giant Amazon with their plan to start offering their Cyber Monday deals from 8pm the Sunday night before +++ Walmart's online channel’s sales rose by 10% during Q3 on a like-for-like basis. ▪
Holiday trends
Black Friday crowds and rebels   Whilst according to a NRF survey, 59% of US consumers plan to go shopping over the Thanksgiving weekend, a countermovement calls to 'go outside' instead. ▪
Crossing the big pond   In the UK, the import of the American shopping event Black Friday is expected to hit the GBP 1 billion mark this year with 6 out of 10 consumers planning to spend on that day and potentially even spoiling christmas shopping. ▪
Retailers rethink strategies   Increasing brand awareness on social media for the holidays is just one of the approaches taken by retailers for this year's shopping season. ▪

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