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Retail Update - powered by LebensmittelZeitung
Friday, 22 July 2016

Hello, subscribers!
Convenience store chain 7-Eleven has reached a milestone in Malaysia; in the UK, Sainsbury’s will soon open a new distribution centre that promises new jobs, and USA’s Amazon loses a big customer. Have a great day, and if you enjoy the read, don’t forget to share.

asia & australasia
Bold expansions   With no signs of slowing down, 7-Eleven Malaysia has reached a new milestone by opening its 2000th store +++ In response to customers wanting outlets close to their communities, Thailand's Charoen Pokphand Foods (CPF) has launched new concept store Magnet Semi Wholesale by CP. If successful, they will open 10 more stores next year. ▪


McD’s Philippines eyes growth   Golden Arches Development, the local franchisee for the US fast-food giant, expects to have 500 stores by the end of the year and 900 in the years to come. In  New Zealand, McDonalds is trialling a new delivery service in two suburbs of Auckland. ▪
Sainsbury’s creates jobs   In Autumn, Britain’s second-largest supermarket chain will open its first distribution centre dedicated to online grocery orders in London. This ‘dark store’ is expected to create 900 jobs. Sainsbury's traditional strategy for online groceries has been to pick orders from its network of supermarkets across the UK. ▪
Sports Direct under more scrutiny   The investigation into whether the UK’s largest sporting retailer underpaid warehouse staff has widened. It is now alleged that Sports Direct failed to pay some of their 13,000 shop workers the minimum wage. ▪
App developments   Italian food retailer Eataly has introduced a new app for direct sales and delivery of food products. It’s currently only available in Milan, but will soon be extended to Rome +++ UK coffee chain Costa is embracing Pokemon Go (paywall) by showing customers which of their cafes are Pokemon hot spots. Costa has experienced a 30% increase in foot traffic since the craze began. ▪
Seller sacks Amazon     German footwear company Birkenstock will no longer sell their sandals on the e-commerce behemoth's website because of an increase in counterfeit products. They have also banned sales of their product on Amazon by third-party sellers +++ In other news, Amazon Prime has added to its many member benefits: discounted private student loans. ▪
Walmart targets chemicals   In an effort to eliminate controversial chemicals from their household goods, the US retailer has asked suppliers to remove eight chemicals, including formaldehyde and triclosan, from their products. ▪
Striving for sustainability   Procter & Gamble has developed the Tide Professional Coldwater System, which enables hotels using on-premises laundry facilities to reduce water usage by up to 40% +++ Following on from the release of their sustainability report, Target has purchased a portion of the energy produced by a wind farm. This will offset all energy consumed at 60 of their Texas stores. ▪
Jumia makes top 50   Africa’s largest online shopping mall has been recognised by the Massachusetts Institute of Technology (MIT) as one of the smartest companies of 2016. They were 47th on the list. ▪
Fined for collusion   South African margarine and cooking oil manufacturer Sime Darby Hudson Knight has agreed to pay a fine for colluding with Anglo-Dutch company Unilever. The Competition Commission ruled that between the two companies it was agreed that the former would service the industrial market and the latter retail. ▪
Promising results   Since reporting that sales had increased 8.7% in the six months to June, South African retail giant Massmart’s shares dropped by 2% +++ In other news, shares in Africa’s biggest retailer Shoprite have increased by 10%, their highest level since July 2013. ▪

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