Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Thursday, 25 August 2016

Hello, dear reader!
Discount powerhouse Lidl is in pole position in the UK. Alibaba partners with German software giant SAP, while America's Abercrombie & Fitch has chosen Zalando to expand its footprint in Europe. Nestlé invests in Angola and South Africa's Shoprite considers offshore expansion. The newly formed retail giant Ahold Delhaize has published second-quarter results - yet for each company separately. Enjoy the read!

asia & australia
Alibaba expands with SAP   The cloud service unit of the Chinese megaretailer, Alicloud, will introduce three major applications from German software giant SAP  this year. Meanwhile, British retailers have started taking advantage of the huge markets, that Alibaba can offer according to the company's UK managing director. ▪
Woolies' billion-dollar loss   Australia's biggest supermarket operator, Woolworths, has slipped to a A$ 1.2 billion full-year loss. This comes after the company had agreed to sell its Home Timber & Hardware business to smaller rival Metcash for A$ 165 million by October, and would close all its Masters stores by December. ▪
Coles offers less   In order to become more efficient, the Australian supermarket operator has announced to cut its product range by 15% over the next years. Full-year net profit of its parent company Wesfarmers collapsed by more than 83% to A$ 407 million. ▪
Lidl marches ahead   The German discount giant has become the fastest growing supermarket in Britain with sales up 12.2% in the last three months. Lidl currently has 38 stores in Northern Ireland. Its regional director has told local media that the company hopes to open a further 12 during the coming years. ▪
Tesco hits back   The British supermarket operator is taking on rivals Sainsbury’s and Amazon by launching a same-day click and collect service across the UK. This announcement follows strong figures from Tesco whose market share loss has slowed to 0.4% according to Kantar Worldpanel. ▪
Ifco reaches milestone   The leading provider of reusable plastic containers (RPC) to the fresh food sector worldwide has shipped one billion RPCs across Europe between producers and grocery retailers within a 12-months period and said this record number represented more than 20 years of steady growth. ▪
Solid results  The newly merged food retailer Ahold Delhaize has reported separate second-quarter results of both companies with improved sales and profit figures. The first combined results will be published for the third quarter.     ▪


usa & canada
Abercrombie partners with Zalando   The Germany-based e-commerce retailer that counts more than 18 million active customers will start selling products from US apparel company Abercrombie & Fitch through its online stores in 15 European markets. ▪
Demand for quality control   US retail heavyweights Walmart, J.C. Penney and Bed Bath & Beyond have started investigations into products supplied by Welspun India, after retailer Target last week accused the Mumbai-based manufacturer of passing off cheap sheets as premium Egyptian cotton and dropped the company as supplier. ▪
Disappointing results   Williams-Sonoma released a weak outlook after it reported mixed results for the second quarter +++ Fashion chain Express cut its profit forecast as it posted disappointing numbers due to declining sales +++ Home decor retailer Kirkland's also reported a loss in the second quarter. ▪
Shoprite eyes Asia    Vietnam and Cambodia are markets that look interesting to Africa's largest food retailer, according to Shoprite CEO Whitey Basson. The company has reported a strong rise in sales for its last fiscal year, helped by its international growth. It opened 18 new outlets outside of South Africa. ▪
Nestlé invests in Angola   The Swiss food giant announced that it will increase its investments in the Southern African nation. Its local subsidiary is planning to spend US$ 1.6 billion to build two new production lines by the end of 2016 with a packaging capacity of 12,000 tons. ▪

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