Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Friday, 04 November 2016

The Aldi empire strikes again - the German discounter is reportedly preparing its entry into the mighty market of China by opening an online shop in the country. Meanwhile, competition in Australia is heating up as there is increasing evidence of another retail giant, Amazon, to get involved in the market Down Under. In the US, Amazon's private label brands prove to be a winner and in Africa, Shoprite will bid its longstanding chief farewell at the end of the year. Enjoy the read and have a fantastic weekend!


asia & Australia
Aldi is set to enter China   According to investigations by Lebensmittelzeitung, the German discounter plans to open an online shop in China through its Australian subsidiary, without any local partners. A number of Australian suppliers have reportedly already been briefed on the packaging and labelling requirements for ▪
Amazon eyes Australia   The e-commerce giant is reportedly ready to stir up the market Down Under with an expected launch in September 2017, having delayed its entry by six months to include fresh goods. It looks as if Australia will then also become the first country after the US, where Amazon will have brick-and-mortar stores. ▪
India defends its place   As the trade ministers of 16 countries are meeting to discuss the proposed Regional Comprehensive Economic Partnership (RCEP) and especially the single-tier system of duty relaxation, India is expected to play hardball. While the GST system in India is being fiercely discussed, the country plans to keep its import tax on wheat at the lowered rate of 10%. ▪
Working towards sustainability   German discounter Aldi Süd claims to become the first climate-neutral major retailer from 2017. Carrefour Italy has launched the first of eight Shop’n Go car sharing stations to be installed at Carrefour Market supermarkets in Milan. ▪
Product range expansions   While Lidl offers discounted subscriptions for music streaming and video-on-demand services (paywall), Tesco targets a share in the upcoming easy-to-prepare meal kits market, only a week after Waitrose has started the trial of its "ultra convenience" bag. ▪
Efforts in employment   Swedish furniture giant Ikea has promised to join other UK retailers in paying their employees the living wage. The number of women in ‘senior management’ positions at French retail giant Carrefour has grown by 8.6% to 38.3% since its ‘Women Leaders’ programme was established in 2011. ▪
Amazon stirs up marketplace   Sales trends analysed in a recent report reveal the success Amazon has with its private label brands which directly compete with national suppliers. This time among category leaders, Amazon is changing the dynamic in the marketplace once again. ▪
Cutting jobs, closing stores   Pharmacy retailer CVS Health will eliminate 600 jobs at its corporate offices over the next two months. Office supply retailer Office Depot announced 3oo store closures over the next three years, 65 of which in the fourth quarter this year. ▪
Target's grocery struggle continues   Just weeks after two other top execs left the discount retailer and only 18 months after taking over the position, Anne Dament, senior vice president of grocery merchandising at Target will be leaving the company from 21 November. ▪
Shoprite boss retires   Shoprite-founder and CEO Whitey Basson will end his 37-year tenure, which has seen the South African company grow to become the continent’s biggest food retailer. He will step down at the end of December and be succeeded by current COO Pieter Engelbrecht. ▪
Naivas on expansions spree   The Kenyan supermarket chain, which recently acquired Nakuru-based Rihab Supermarket for an estimated KES 70 million, will spend a further KES 400 million to expand its branch network across the country. ▪

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