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Retail Update - powered by LebensmittelZeitung
Friday, 06 May 2016

Hello, subscribers!
In China, the e-commerce giant Alibaba posts spectacular results, though less than what Wall Street expected; the struggling UK supermarket chain Morrisons shows signs of improvement, and in the USA, Amazon introduces some improvements. Have a great weekend, and if you enjoy this issue, please share.

asia & australasia
Alibaba’s sales soar   Profits for the e-tail behemoth almost tripled last year thanks largely to a 182% increase in the sales of mobile devices. However, the result still missed Wall Street expectations. In other news, the United States Trade Representative expresses concern over the large amount of counterfeit goods sold through Alibaba’s platforms. ▪
Success Down Under   Scentre Group, the owner of Westfield shopping malls in Australia and New Zealand, has posted a strong quarterly result, up 6.3% on the same period last year. ▪
Morrisons' comeback   Although reporting an overall decline in sales, the UK supermarket chain has seen like-for-like sales grow in the 13 weeks ending May 1, which indicated that changes made by CEO Dave Potts to reorganise and rebuild the grocer have stabilised the business after a four-year slump. ▪
Italian acquisition   In order to bolster its position in the vegetable products market, leading Italian dairy and milk group Granarolo has acquired 60% of organic food producer Conbio. The market is expected to continue to grow, reaching as much as EUR 600 million by 2020. ▪
Amazon improvements   The US e-commerce giant has launched ‘Pan-European Fulfilment by Amazon,’ a system that enables merchants to ship their goods to Europe without having to land in the UK first. The company has also introduced a website dedicated to its Prime Now delivery service, and its fresh food delivery service, Amazon Fresh, will reportedly arrive in the UK this month. ▪
Reporting results   As a result of cutting costs and increased condiment sales, Kraft Heinz Co. the new food giant formed by a huge merger last year, has posted revenue for the first quarter of US$ 6.57 million, exceeding expectations +++ Due partly to slow traffic at its California stores, Costco Wholesale Corp. has posted disappointing sales growth. ▪
Hypermarket comes to Angola   Following the ending of a partnership with Portuguese retailer Sonae, Angolan businesswoman Isabel dos Santos is set to open the first Candando hypermarket in Angola on May 10. ▪
Smoothing the way   In order to win the South African government's approval to merge their operations and become Africa's largest Coke bottler, SABMiller and Coke have agreed to concessions. These include a three-year freeze on layoffs and investing in businesses in the country. ▪

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