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

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Huawei has become the first Chinese handset vendor to ship more than 100 million smartphones in a year; in the UK, Waitrose has posted disappointing sales results for the Christmas period, and in the US, Chiquita has been ordered to pay a hefty sum to National Union Fire. All these stories and more feature in today’s RetailUpdate. Please don’t forget to share.


Carrefour expands in China   A little over a month since opening a 6,790-square-meter hypermarket in China’s XiangYang, the French retailer has opened another, which boasts 6900 square meters of sales space and 18 check-outs, in Guangzhou. ▪
Sales strong in South Korea  The South Korean government has announced that retail sales grew 4.2% in November. Retail sales reached US$ 27 billion. Amid this growth a rising number of local F&B outlets have contributed to the steady rise of retail rents in Seoul’s prime submarkets. According to Food Industry Asia, ‘Seoul Food’ is enjoying an international renaissance. ▪
Huawei crosses smartphone threshold   The Shenzhen-based technology company has become the first Chinese handset vendor to ship more than 100 million smartphones in a year. Huawei Technologies Co says smartphone shipments rose 44% in 2015 thanks to strong sales in China and Western Europe +++ Meanwhile, in partnership with Flipkart, Xiaomi is expected to launch two new phones shortly. ▪


Mixed results for Xmas in UK     British consumers bought more Christmas products but opted for cheaper versions of them, IRI data has shown +++ The Christmas period has proved to be not so merry for Waitrose. The supermarket chain posted a disappointing 1.4% drop in like-for-like sales. Sister chain John Lewis had a better time, though, with like-for-like sales growing 5.1% +++ The Southern Co-operative, which has about 150 community stores, has seen like-for-like sales grow by 4.7% in the three weeks to 3 January. ▪
Tesco adds surcharges   Tesco is about to introduce a surcharge for the collection of low-value orders from Tesco Direct. In Eastern Europe, the retailer has moved its Czech convenience stores that operate under the Žabka brand name (paywall) to a new subsidiary called Tesco Franchise Stores . ▪
Macy's to close stores   In order to consolidate its operation, the department store chain will close 40 stores in 2016. The move is expected to generate about US$ 400 million in savings and affect about 3000 employees, though about half should be relocated to different positions. Macy’s outline cost efficiency initiates and lists stores to be closed. ▪
Chiquita loses appeal   The US distributor of bananas and other goods has been ordered to pay US$ 13 million by an Ohio appeals court to National Union Fire Insurance Co. It is alleged that Chiquita aided and abetted terrorists to support its banana operations. ▪
Milestone for Meijer   The retailer has announced that its free prescription programme, which was launched in October 2006, has reached 30 million prescriptions dispensed. In 2015 alone, Meijer dispensed six million prescriptions. ▪
trends to watch
Wearable technology is coming   According to enterprise resource planning (ERP) experts Linkfresh, wearable products such as smart watches and head-mounted screens will have a significant impact on supermarkets in 2016 as technology advances. ▪
Fridge buys groceries   Financial services company Mastercard has launched a new shopping app which lets consumers order groceries directly from Samsung’s new Family Hub refrigerator. The app, which was unveiled at CES in Las Vegas, is integrated into the fancy new fridge so consumers can stock up on their groceries from the kitchen. ▪

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