Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Wednesday, 06 April 2016

Hello, dear reader!
A mega pharmaceutical merger has collapsed in the United States. China's new tax law raises questions, while India is about to change its food policy allowing foreign giants such as Walmart finally to grow in the country. Over in Europe, German retailer Rewe records its best result ever and Sainsbury's considers staff reductions. These stories and a lot more are featured in today's update.

China & india
Questions over tax changes   The announcement by the Chinese government that it is changing the taxation system for imports has raised questions, mainly because not enough details were released. Analysts wonder how it will affect popular imported purchases such as baby formula, cosmetics and consumer electronics. ▪
Indian regulations   The Indian government is working on a policy that will allow 100% foreign investment. The likes of Walmart and Carrefour would then be able to set up their own stores. Meanwhile, the food regulator of the country wants all major e-commerce companies to register if they want to continue their food business operations. ▪
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Bewo supports grocers   The tech company, based in Chennai/India, has launched an IT-enabled retail service delivery and support system for small neighbourhood stores in India to enable efficient business management. Bewo has also partnered with local delivery platforms. ▪
Record results   German retail giant Rewe Group has posted its best operating results in the company's history, with revenue growth of 3.7% to EUR 52.4 billion. Over in the UK, the supermarket industry has posted its fastest growth all year, however, Aldi and Lidl still lead the way, the latter is said to be ramping up the store wars by spending GBP 78 million on advertising. ▪
Jobs at risk    Supermarket operator Sainsbury's has announced changes to management roles at its major stores, which will see up to 70 jobs slashed. Competitor Tesco faces industrial action after the retailer refused to raise the pay of 12,000 staff. ▪
Expansion strategies   Canada's Hudson's Bay will invest US$ 1.5 billion in Germany and to open 40 Saks discount stores. French giant Carrefour aims for a nationwide presence in Poland through the implementation of a EUR 61 million expansion project, and Denmark's Dansk Supermarked is set to pump EUR 134.4. million into the construction of new stores, refurbishments and further development. ▪
usa & canada
Mega merger called off    US pharma company Pfizer has terminated its US 160 billion agreement to buy Dublin-based Botox maker Allergan due to new US Treasury rules that will stop the combined company from moving its headquarters to Ireland for tax purposes. ▪
Healthy commitments   Following similar announcements from many of the country’s largest supermarkets, Walmart has also pledged to transition to cage-free eggs +++ Idaho-based supermarket chain Albertsons is launching a new store brand called Signature as well as the Just for U digital programme. ▪
Sportswear firm gives in   Long-struggling surfwear chain Pacific Sunwear of California is preparing to file for Chapter 11 bankruptcy. The company is the latest casualty of shifting consumer tastes, which broke American Apparel and Quiksilver during the past year. ▪
focus on consumption
Guidance for shoppers   Just two weeks after it criticised supermarket operator Tesco for announcing a series of farm brands, Britain's National Farmers’ Union has introduced its first shoppers’ sourcing guide to help consumers compare rival supermarkets’ policies when they want to buy British food. ▪
Improving the supply chain   A new agrifood research network will be launched in Manchester, offering the industry an opportunity to explore solutions to major food security, agritech and consumer health issues across the supply chain. ▪

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