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Retail Update - powered by LebensmittelZeitung
Tuesday, 19 April 2016

The German discounters continue striving overseas, and European supermarkets take their business to China and Oman. Target raises the minimum wage for its employees, and Nordstrom follows in the footsteps of other department store chains slashing hundreds of jobs. Enjoy the read and don't forget to share - RetailUpdate is FREE.

Asia & Australia
Rosy outlook for Aldi Australia   Sales are forecast to rise almost 90% to AU$ 15 billion by 2020 for the German discounter down under, putting the Australian supermarket duopoly of Woolworths and Coles under stress. Today, Aldi announced the location of its first four stores in the Western Australian region, which will open at the beginning of June. ▪
Going East   British grocer Waitrose will sell its products in China through the Royal Mail store on Tmall Global, an online marketplace operated by Alibaba. Germany-based Metro Cash & Carry will expand its operation in the country by entering the convenience store sector under the brand MyMart, opening its first two stores in Shanghai next month. ▪
Emerging e-commerce   According to the McKinsey iConsumer China 2016 report, e-commerce activities in lower tier cities are showing growth potential, and online to offline (O2O) services are gaining momentum. A market with significant potential and dubbed to become an e-commerce battleground, is South East Asia. ▪
Europe & middle east
Lidl grows further   The fastest growing supermarket in Britain will create 500 new jobs in East Devon, where it plans to open a regional distribution centre. In Ireland, the German discounter has had its contribution to the Irish economy pointed out. Tesco, in turn, faces problems in the island country as its staff voted for strike action over their contract changes. ▪
Bidding to compete   While Sainsbury's is recruiting 150 digital and technology experts to help improve its online presence, Asda is reportedly preparing to phase out its own label (paywall) 'Chosen by you'. ▪
Spar explores Oman   The Netherlands-based multinational plans to open 24 outlets in the sultanate by 2017, tapping into the largely unexploited retail outlet market there +++ Over in Latin America, Chilean department store chain Falabella enters the Mexican market through a joint venture with Mexico's second-largest supermarket chain Soriana. ▪
Target raises pay   In a second increase in a year, the discount retailer has started raising employee wages to a minimum of US$10 an hour. The move traces back to a competitive job market, while labour groups demand higher wages at retail chains. ▪
Fancy water   While PepsiCo's quarterly sales fell 2.9%, which makes this the sixth straight quarter of decline, the soft drinks maker's CEO Indra Nooyi said, the company won't rely as heavily on its colas in the future and is reshaping its product lineup. The general trend for the US indicates that the consumption of bottled water is about to overtake its sugared counterpart.   ▪
Strategical downsizing   In a cost-cutting move, department store chain Nordstrom axes 400 jobs, mostly at headquarters and in regional offices, joining the ranks of Walmart’s, Penney’s and Macy’s. As it claims to be narrowing its focus, Uber's food delivery service UberEats ceases its 'instant' option in New York City, only one month after the app was launched.  ▪
remarkable discoveries
Empty calories, shared   A recent study (paywall) found Scandinavian teenage social media users becoming promoters for unhealthy foods as they prefer sharing images of foods that are high in calories and low in nutrients. ▪
Genuinely false   2.5% of all international trade is being made with fake goods, resembling in its proportion the global economic output of Austria. At the top of the list of pirated products is Nike.   ▪

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