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

Hello, dear reader!
Mergers and acquisitions continue to keep potential business partners busy these days. Consumer watchdogs are on alert in Britain and Australia, determined to send million-dollar fines to top retailers. Spain's largest beer producer ponders about US craft beer and insiders speculate why it does not make sense for Amazon to open physical stores. Enjoy the read and have a great weekend. 


Asia & australia
Alibaba expands in India    After investing in Paytm and Snapdeal, the Chinese online powerhouse is reportedly set to buy a stake in Flipkart. The deal might depend on the willingness of India's largest internet firm to offer a discount on its current valuation of US$ 15 billion +++ Meanwhile, net loss for Indian online grocer Bigbasket has trebled last year. ▪
Penalty for Woolies    The consumer watchdog has argued that the Australian supermarket major should be hit with a AU$ 4 million penalty for selling faulty products and failing to promptly alert authorities. At the moment, Woolworths and its rival Coles are recalling products linked to a salmonella outbreak. ▪
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Shake-up at Dick Smith   The troubled electronics retailer is shedding 22 jobs, including that of chief financial officer Michael Potts, as part of a restructure by the receiver. The company is also accused of having underpaid its workers for as long as six years. ▪
Buy-outs and other purchases   Swiss food giant Nestlé has agreed to buy out minority shareholders in Osem Investment, one of Israel's largest food producers, for about US$ 840 million, increasing foreign ownership of a leading Israeli company +++ Over in Britain, the Cooperative Group acquired 15 Budgens convenience stores from Booker for an undisclosed sum. ▪
Tesco ordered to pay   The British retailer has been handed a GBP 1 million bill to pay to the office of the UK’s grocery code adjudicator (GCA) to cover the expense of assessing the retailer’s supply chain. In other news, Tesco plans to roll out item-level radio-frequency identification technology (RFID) to its clothing range (paywall). ▪
Easyfood cleaned out   The newly-opened budget food store, Easyfoodstore, has been forced to temporarily close after customers stripped the shelves bare of its 25p products. However, insiders are convinced, that the brainchild of Sir Stelios Haji-Ioannou will cause a stir in the UK retail scene. ▪
usa & canada
Toying with the idea of merging   Two of the world’s biggest toymakers, US companies Hasbro and Mattel, are reportedly considering a possible merger. The companies, which would have a combined market capitalisation of US$ 20 billion, have been in on-and-off-again talks since late last year. Both firms declined to comment. ▪
Pharmacy makeovers    CVS Health, which has acquired the pharma business of Target for US$ 1.9 billion last year, has started to put its branding on the pharmacies inside 1,672 US Target stores +++ Supermarket company Publix and drug wholesaler AmerisourceBergen announced a long-term drug and healthcare products distribution agreement. ▪
Walmart wants petrol stations back   After a 20-year partnership with fellow Arkansas-based company Murphy USA, the retailer giant has decided it wants to pump its own gasoline. Walmart-staff will work the pumps and the company will pick up additional purchases. ▪
worthwile weekend reads
American craft beer for Europe   Jonathan Stordy is Marketing Director of Grupo Mahou-San Miguel, Spain's largest beer maker. In an interview with Lebensmittel Zeitung he talks about expansion plans, a possible bid for Grolsch and Peroni and why the European market is ready for US-craft beer. German Retail Blog reports. ▪
Amazon's store plans reviewed   The announcement that the online giant plans to open hundreds of physical stores caused a firestorm in the industry and clarification followed suit. Now there is speculation on why it would make sense for Amazon to open flagship properties or outlet stores. ▪

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