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Retail Update - powered by LebensmittelZeitung
Friday, 26 August 2016

Hello, dear reader!
German discounter Aldi trials a holistic approach with a new online portal, retailer Edeka partners for water protection and Sweden's ICA reports positive changes towards sustainability. In the US, Walmart puts pressure on the Dollar chains and Down Under, Domino's has been given the green light for pizza delivery via drones. Enjoy the read and have a great weekend. 

asia & new Zealand
Metro becomes Mega Market   Eight months after being acquired by TCC Thailand, Metro Cash & Carry Vietnam has undergone a range of changes, including a new name. Mega Market now has 19 wholesale centres across Vietnam and the Thai group is set to support Vietnamese producers.  ▪
Hong Kong accepts Alipay   Alibaba’s financial platform has received approval to operate its payment business in one of the world’s leading financial centres by the Hong Kong Monetary Authority. Investments in financial technology have reached a record-high of US$ 9.6 billion in the Asia-Pacific region. ▪
Flying pizzas for Kiwis   Fast food chain Domino’s has been given the OK to test pizza delivery via drones in New Zealand and teamed up with drone business Flirtey. Some critics, however, are sceptical and think the world's first commercial delivery of a pizza is simply a PR stunt. ▪
Holistic approaches   German discounter Aldi has launched a new 'well-being portal' online, with equal emphasis on body and mind. Meanwhile, retailer Edeka partners with WWF to protect fresh water resources and Sweden's ICA Gruppen reported a substantial improvement in greenhouse gas emissions in its sustainability report. ▪
Advertising matters   British retailer Sainsbury’s has ended its 40-year relationship with agency AMV BBDO and has appointed Wieden & Kennedy, which lost Tesco last year, as its new creative partner +++ Celebrating the 400th anniversary of William Shakespeare’s death, Selfridge's has launched a theatre with a 122-seat auditorium in its iconic flagship store on London's Oxford Street. ▪
usa & canada
Walmart stays competitive   The US big box retailer expands its partnership with Commercehub, an e-commerce network. A new deal will allow the latter to integrate directly with Walmart's online third-party marketplace. In an unusual move, rival Amazon is reportedly testing a “click and collect” model in California. ▪
Dollar chains disappoint   US discount retailer Dollar Tree, which acquired rival Family Dollar a little over a year ago, reported results that fell short of analysts' forecast. Competitor Dollar General also posted weak sales growth, which might have something to do with the aggressive pricing strategy of retail giant Walmart. ▪
King of the mall   While department store chain Sears appears to be in a really bad shape with declining sales in Q2, rival J.C. Penney aims to be a main anchor in shopping malls. The company, which has fewer than 10 stores that aren’t making money, is adding new merchandise, exclusive partnerships and services to draw customers. ▪
Latin America & africa
Expansion plans   Chilean-headquartered supermarket retailer Cencosud (paywall) plans to launch eight new Jumbo neighbourhood outlets by the end of the year +++ L'Oréal-owned beauty retailer The Body Shop continues its expansion in Latin America and will open a store in Chile’s Santiago’s Plaza Egaña Mall this month. ▪
Positive results   Massmart, the South African subsidiary of Walmart, cut its interim dividend despite reporting a 23% rise in after tax profit for the last half year and the opening of nine new stores. Retail chain Woolworths SA was able to grow its after tax profit by 40% for its fiscal year, ending on June 26. ▪

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