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Retail Update - powered by LebensmittelZeitung
Friday, 17 June 2016

Hello, subscribers!
Amazon India has made changes to make life easier for its merchants, two major European supermarket chains are planning expansions in Spain, and Macy’s in the US avoids strike action at the last minute. Enjoy the read, and if you enjoy this edition, please share.

asia & australia
Amazon cuts cost of business    As the e-commerce behemoth plans to cut shipping fees for small items being exported from Chinese merchants to US customers, Amazon India has reduced its commissions by 25 – 30% in key categories such as PCs and mobile phones +++ Meanwhile, a draft law in India that will require e-commerce companies to pay GST is causing the likes of Amazon and Flipkart concern. ▪
Didi Chuxing completes financing    China’s largest ride-hailing app has completed a financing round worth US$ 7.3 billion. Investors include Apple, Alibaba, Tencent and China Life. ▪
Pleasing results   Singapore-based fashion products company Global Brands Group has reported an increase in revenue of US$ 4118 million for its latest reporting period to March 31 +++ As demand in China continues, shares in Australia-based A2 Milk have risen more than 10%. ▪
Spanish expansion   German supermarket chain Lidl is planning to invest in a 71,800-square-metre logistics platform in Spain that will supply over 150 stores +++ Also, French-based Carrefour is currently in negotiations to purchase 36 Eroski’s supermarkets in Spain worth about EUR 205 million. ▪
Strong result for Mulberry   Thanks to ongoing investments in design and omnichannels, the British luxury brand has reported strong growth with retail sales rising by 8% in the year to 31 March. ▪
Adidas winning soccer wars   The German sports clothing and accessories giant expects sales of soccer boots, shirts and balls to reach a record EUR 2.5 billion this year. They have passed Nike to become market leader and now hold 36% of the soccer boot market. ▪
Macy’s avoids strike    Just hours after the deadline passed, the US department store chain has reached a tentative agreement with the Retail, Wholesale and Department Store Union and avoided strike action at its flagship Manhattan store. The agreement is said to include substantial wage increases and fairer schedules. ▪
Revenue ups and downs   Soft drink giant Coca-Cola expects sales results in the current quarter to be adversely affected due to last August’s merger of three bottlers +++ USA’s largest supermarket chain by revenue, Kroger, has reported net earnings in the first quarter of US $680 million. ▪
Target app gets makeover   The US retailer’s Cartwheel app, which was introduced in 2013 and has been used by more than 25 million customers, is getting its biggest makeover yet in order to make customer experience more personalised. One of the changes includes a feature called “For You”, which offers personalised recommendations. ▪
Pick n Pay collapses pyramid   Supermarket giant Pick n Pay will collapse its pyramid control structure in response to persistent minority shareholder pressure over the last two years. The new structure still ensures that the Ackerman family retains voting control. ▪
Carrefour Kenya signs mobile payment deal   Carrefour’s Kenyan arm has become the first supermarket chain to fully adopt transaction software Lipa Na M-PESA. The Safaricom-made technology will result in quicker and more efficient cashless transactions. ▪

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