Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Friday, 03 June 2016

Hello, dear reader!
Mergers, takeover bids and expansion strategies are featured in today's issue. Canada's Couche-Tard and Japan's 7-Eleven compete to purchase a convenience retailer in the US, while Johnson & Johnson has bought its haircare rival. Carrefour experiments in Poland and doughnut major Krispy Kreme has added another country to its portfolio. Have a great weekend.

Singapore invests in Alibaba   GIC and Temasek Holdings, investment firms of the State of Singapore, have bought US$ 1 billion of stock in the Chinese e-commerce behemoth. It is the second-biggest stake sold by Japan's Softbank this week. Meanwhile, Alibaba has announced it will launch a new translation platform. ▪
Expanding eastwards   US doughnut chain Krispy Kreme has opened its first shop in Cambodia, adding the 27th country to its portfolio +++ New York-based fashion retailer Michael Kors has paid US$ 500 million in cash to acquire its greater China licensee in a bid to establish and grow the brand in the Chinese market. ▪
Electronics in demand   India is expecting investments of US$ 56 billion over the next four years in the electronics sector to meet growing domestic demand and generate exports. The country will allow 100% foreign investment in this sector with a 25% subsidy. ▪
High street blues   As attempts to save British department store chain BHS have failed to materialise, the retailer will close down all its 163 high street stores, resulting in the loss of up to 11,000 jobs. BHS will be another one of the multiple chains that have sunk without trace thanks to tough trading conditions. The Guardian takes a look back. ▪
Pack deal in Sweden   Buyout group CVC Capital Partners has bought Swedish cigarette pack maker AR Packaging from private equity groups Ahlstrom Capital and Accent. The purchase was welcomed by Harald Schulz, CEO of the acquired company. ▪
Carrefour experiments in Poland    The French retail giant has unveiled a new supermarket concept in its first Premium Market, which opened in Warsaw at the end of May. The store focuses on providing a tailored offering and innovative services to customers. ▪
Competition for convenience   Canada's Alimentation Couche-Tard and Japan's Seven & I Holdings, the owner of U.S. convenience store chain 7-Eleven, have submitted indicative offers to acquire US convenience store retailer CST Brands. Both are competing against several other bidders. ▪
Johnson & Johnson buys rival   The US-based FMCG giant said it would acquire US beauty products company Vogue International for about US$ 3.3 billion in cash, expanding its position in the hair care market and potentially strengthen its consumer products segment. ▪
Walmart gets into drones   In collaboration with the Federal Aviation Administration and NASA, the US big box retailer is developing internally autonomous drone technology to cut inventory checks. Walmart is also in the process of revamping the food section at 3,000 stores to keep its competition at bay. ▪
thought-provoking reads
Brew merger flattens craft beer   US clearance for the Anheuser-Busch InBev’s takeover of SABMiller is on track for later this month. Insiders are worried that the world’s biggest beer merger could destroy craft brewers and may flatten America’s beer market. The New York Times takes a stand. ▪
Apple's simplicity is gone   The tech giant’s incredible growth is linked to founder Steve Jobs and his love of simplicity. But the company's ability to make software solid and simple has come under attack. Ken Segall, a former colleague of Jobs, explains why. ▪

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