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Retail Update - powered by LebensmittelZeitung
Thursday, 23 February 2017

Hello, subscribers!
Canadian retail group Hudson's Bay is in trouble with the competition watchdog in its home country over alleged misleading pricing. Over in Australia, Coca-Cola is set to spend millions to expand its production capacity, but will shut down its bottling plant in Adelaide. Get informed about the latest developments in our industry and if you enjoy this issue, please share.


Aussie job losses at Coca-Cola   The soft drink giant has announced plans to shut down its South Australian bottling plant in 2019. The move will cost about 180 jobs. Coca-Cola Amatil also announced it will invest A$ 90 million to expand production in the outskirts of Brisbane as part of a supply chain restructure.  ▪
Walmart grows in China   The China arm of the US big-box retailer will open 30 to 40 new stores in the country this year. Walmart China also intends to invest US$ 43.4 million in upgrading about 50 existing stores. In 2016, the retailer opened 24 new stores, including 21 hypermarkets and 3 Sam’s Club stores.  ▪
Profit ebbs & flows   Boosted by domestic sales that were inspired by the Rio de Janeiro Olympic Games, China’s largest sportswear manufacturer, Anta Sports Products, has reported a 16,9% rise in profits for 2016 +++ Meanwhile, Thai retailer Big C says last year’s revenue shrank 9.6%, though profit margins increased. ▪
Carrefour strikes a deal   The French retailer’s central buying office has negotiated a supply deal with Supergroup, a subsidiary of Southern European distributor Logista. Supergroup, which offers over 10,000 SKUs, supplies grocery stores, bakeries, petrol stations and vending machine operators in France.  ▪
Asda sales down but improving   In contrast to US parent company Walmart's positive Q4 results, the UK supermarket chain’s sales decreased 2.9%. The performance, however, was better than in the previous quarter due to quality improvements in products and store renovations.  ▪
E-commerce developments   Italian grocer and cooperative Coop Alleanza 3.0 has launched online service EasyCoop, which offers home delivery of over 10,000 products +++ French retailer Leclerc has created a delivery service for its online platform in Slovenia. This will complement the click-and-collect service already offered in the country. ▪
Watchdog sues Hudson's Bay    Canada’s antitrust watchdog filed legal action to end what it describes as “deceptive” marketing practices by Hudson’s Bay over a nearly four-year period regarding the sale of mattresses and box springs. The company, however, denies the allegation. ▪
Branching out    Dollar General is sticking to its growth plans and will open its 16th distribution centre, this time in Amsterdam, New York. The new facility is expected to create 430 jobs +++ Off-price giant TJX wants to tackle new markets and has announced it will launch four home goods stores in the USA under a new banner this year. ▪
Poor sales prompt fresh approach   US TV shopping company HSN’s sales declined 2% in the quarter ending in December; however, digital sales grew 4%. With 50% of sales generated online, the company plans to tackle shoppers who purchase using their mobile phones.  ▪
Survey results
Targeting meat lovers   Driving shoppers back to the supermarket to buy meat is one of the challenges for the industry according to the annual survey "The Power of Meat". Consumers are increasingly looking for alternative channels such as butchers or farmer’s markets.  ▪
Unfazed optimism   British consumers are still confident about the economy with 53% optimistic about making purchases — the highest level on record, despite fear of terrorism or worries about the economy. This is according to a report from Nielsen.  ▪

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