Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Thursday, 08 September 2016

Hello, dear reader!
Walmart sees growth potential in China, rival Amazon is set to invest in India. Carrefour, Eroski and Continente trial new concepts in Europe and Lidl styles itself as a posh fashion retailer, while Tesco sparks outrage over potential job cuts. Office Depot expands its partnership with Dunnhumby and Kohl's invests in its omnichannel network. Sears struggles in Canada and Aldi is rumoured to lose momentum in Australia. Enjoy the read and don't forget to share.

asia & australia
US giants grow in China and India   Big box retailer Walmart will invest millions in its development in the Southern Chinese province of Yunnan and expects to open 20 new stores by 2020. Meanwhile, rival Amazon considers an investment in Indian online food delivery start-up Swiggy. ▪
Sabeco in demand   The world’s largest brewers, among them Heineken, AB InBev, Asahi and Kirin, are lining up for a chance to buy a stake in Vietnam’s top beer maker, Sabeco, in a deal worth at least US$ 1.8 billion, after the Vietnamese government decided to sell its controlling stake. ▪
Ifco prospers worldwide   The international provider of reusable packaging solutions for fresh products, owned by Australian Brambles Group, has reported a 16% rise in annual revenues of US$ 992 million. All regions contributed to the growth of the company. Europe remains Ifco’s largest market. ▪
Carrefour expands and experiments   The French retail giant is growing in Poland and Romania, partially with new concepts. In France, Carrefour is set to make virtual reality accessible by launching its own VR glasses. In other news, the company has reached a deal with French farmers on beef prices. ▪
Transforming hypermarkets    Portuguese retailer Continente has redesigned its Colombo store in Lisbon with a new concept that is inspired by traditional markets and Spanish supermarket chain Eroski has invested EUR 6.6 million in the renovation of its hypermarkets. ▪
Challenges in Britain   Taking on the likes of Deliveroo, Amazon UK has ramped up its delivery services with the launch of Amazon Restaurant, allowing its Prime customers to have meals delivered within one hour. Tesco announced that it will reduce the number of stores open 24 hours, potentially leading to nationwide job losses. ▪
Discount fashion  German discount giant Lidl has set up a fashion pop-up store (in German) in an expensive shopping street in Hamburg. The temporary store is open for 10 days and is seen as a response to competitor Aldi's fashion upgrade.   ▪
usa & canada
Enhancing customer experience   Office Depot has extended its partnership with data analysis provider Dunnhumby to drive its customer engagement, and department store Kohl’s omnichannel distribution network gets bigger with the construction of a new distribution centre in Indiana. ▪
Disappointing results   Sears Canada struggles to return to profitability, reporting a CA$ 91.6 million loss in its second quarter and a 15.6% drop in sales. Sales at natural foods retailer Sprouts Farmers Market are also considerably lower than expected due to increasing competition and price deflation. ▪
Steinhoff's American dream   Aiming to become the world's biggest furniture retailer, the growth-hungry South African company, which just got the green light for its Poundland acquisition and also bought footwear retailer Tekkie Town, might face some challenges with its billion-dollar acquisition of Houston-based Mattress Firm. ▪
unexpected discoveries
Aldi slows in Australia   Australian consumers appear to be losing their enthusiasm for the German discount powerhouse with the chain’s growth in the eastern states going backwards for the first time since it began trading in the country 15 years ago. ▪
Competitive convenience sector   Supermarkets have moved quickly to capitalise on a growth of inner city dwellers with smaller store concepts. While the convenience market proposes opportunities for large supermarkets, competition is ferocious. Big retailers are back-peddling due to the risks. ▪

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