Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Monday, 16 May 2016

Hello, dear reader!
Online mega-retailer Amazon takes on Berlin and has more ideas up its sleeve to give traditional grocers a headache. A new giant is shaping up in the freight sector as Hapag Lloyd partners in Asia, and the world largest meat processor unveiled a radical restructuring. Enjoy your Monday bulletin as well as a public holiday break, if you live in a country where Pentecost is celebrated.

asia & australia
Shipping alliances   Hapag-Lloyd AG, Germany’s top container shipping line, and five Asian carriers will form a new vessel-sharing alliance. Dubbed "the Alliance", it is due to start operating in April 2017. This comes a few weeks after "Ocean Alliance" was founded by Cosco Shipping and three other container lines companies. ▪
Chinese investments   E-commerce giant Alibaba announced a joint venture with Japanese telecom operator SoftBank to provide cloud-computing services in Japan. Meanwhile, US tech firm Apple invested US$ 1 billion in Beijing-based taxi service Didi to learn more about the Chinese market. ▪
Spending on publicity   German discounter Aldi has increased its spending on ads by 93% to AU$ 34.7 million, while rivals Woolworths and Coles scale back +++ Nestlé Australia, which also ramped up its marketing costs, reported a big jump in annual profits to AU$ 179 million. ▪
Fresh initiatives   Online behemoth Amazon has started to deliver fresh food in Berlin and indicated that it will extend its service to other major cities. German Retail Blog has the details. In the US, the e-commerce firm is set to launch new lines of its private-label brands in the coming weeks. ▪
Store decisions   French retailer Carrefour has sold 37 former Dia outlets in France, mainly located in the north and in the Paris region, to the Polish retail group Gastt +++ Portugal's Sonae Group plans to open smaller stores this year, following a 6% rise to EUR 1.2 billion in quarterly turnover. ▪
Lidl on track in Spain   The Spanish unit of the German discounter saw the biggest increase in market share in the country during the first months of the year. The Spanish retail market, which continues to recover at a good pace, is seen as a key market by Lidl, according to its finance director, Ferrán Figueras. ▪
usa & canada
Lowe's takeover approved   With regulatory hurdles out of the way, the US retailer is one step closer to completing its US$ 2.3 billion acquisition of Canada's largest home improvement retailer Rona. In other news, Lowe's has settled a US$ 8.6 million lawsuit over claims it fired workers on medical leave. ▪
Refocus after sales slump   US retailer J.C. Penney will reportedly shift its focus away from apparel after comparable sales dropped unexpectedly. It is not the only chain to report alarming declines in sales. On the other hand, the retailer saved a considerable amount of money in energy costs by using ice-based energy storage at its headquarters in Texas. ▪
Reinventions and collaborations   American Girl, a division of Mattel, plans to reinvent store experience with a 'future store concept' in Manhattan +++ Wakefern Food and non-profit organisation Manomet are collaborating on new environmentally friendly initiatives at 40 ShopRite stores. ▪
Latin America & Africa
Meat giant restructures   JBS SA, the world’s largest meat producer, has unveiled a radical corporate restructuring that will see the Brazilian company spinning off its international business into a new unit, called JBS Foods International, which will be listed in New York. ▪
Mall attracts masses   South Africans seem to be obsessed with mall culture. More than 400,000 people visited the massive Mall of Africa, which opened on April 28, in the first five days of operation. Quartz Africa takes a closer look. ▪

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