Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Thursday, 02 March 2017

Hello, dear reader
German fashion start-up Zalando surprised the industry with the acquisition of a street wear retailer and the revelation of extensive expansion plans. Recently merged retailers Ahold Delhaize and Fnac Darty reported encouraging results and consumer goods giant Henkel is continuing its shopping spree. These stories and a lot more are featured in today's issue. Enjoy the read and don't forget to share.


Henkel goes for metal   German consumer goods maker Henkel made a binding offer to acquire Darex Packaging Technologies for US$ 1.05 billion. The US company supplies high-performance sealants and coatings for the metal packaging industry.  ▪
Ambitious Zalando   The Berlin-based online fashion retailer moves into physical stores with the acquisition of Munich-based street wear retailer Kickz, which runs 15 stores in Germany. The high-flying company also is pushing ahead with a EUR 200 million investment despite a dip in profit and wants to create more than 2,000 jobs. ▪
Merged giants upbeat   Ahold Delhaize reported sales growth for Q4 thanks to a strong US performance, where it will focus on improving efficiencies according to CEO Dick Boer. In France, retail group Fnac Darty might hit its objective of EUR 130 million in cost savings sooner than anticipated as it posted a very solid result.  ▪
Jobs at risk   In an attempt to improve efficiency, pharmacy chain Boots, manufacturer Walkers, which is owned by PepsiCo, and bakery chain Greggs are restructuring their operations, putting nearly 1,400 jobs in Britain in jeopardy. Boots will close more than two-thirds of its photo processing laboratories. ▪
Petco expands   In keeping with its fast-paced growth plan, America's leading pet speciality retailer is set to open 12 new stores during this month. Petco operates more than 1,500 outlets across the United States, Mexico and Puerto Rico.  ▪
Reporting results   Strengthened by its omnichannel activities, DIY retailer Lowe's posted net sales of US$ 15.8 billion for Q4 and due to higher consumer spending, US discounter Dollar Tree enjoyed net sales of US$ 5.64 billion. Electronics retailer Best Buy, however, disappointed with weak sales and a bleak forecast. ▪
McDonald's adjusts focus   After suffering from years of declining traffic to its restaurants, the fast food giant eyes the US$ 100 billion delivery market as a way to expand. To meet its long-term growth target of 5%, the company also is turning to digital technology. ▪
Layoffs at PepsiCo   The soft drink giant will cut 80 to 100 jobs in Philadelphia as the city's new sugar-sweetened beverage tax to combat rising obesity and diabetes hurts demand for its products. PepsiCo's beverage sales fell 40% in the city.  ▪
Lotte grows in Vietnam   The South Korean conglomerate, which has 285 shopping centres in Asian countries including China, Indonesia and South Korea, views Vietnam as one of the fastest growing retail markets in the region and will expand its business there by building a second Hanoi mall. ▪
Potential in India   Amazon India is set to invest heavily in its FMCG business while it awaits Foreign Direct Investment approval to sell locally. The Indian food sector could attract a lot more foreign investment and create more jobs if the country focuses on organic farming, says government official Amitabh Kant. ▪
Africa & Latin America
Positive attitude   Despite a double-digit drop in half-year net loss, Kenyan supermarket operator Uchumi is set to return to break-even point through rigorously cutting costs. Meanwhile, cash-strapped competitor Nakumatt has finally received its capital injection of US$ 75 million for its ailing Uganda operations. ▪
Femsa defies uncertainty   The Mexican Coca-Cola bottler and retailer has reported a strong growth in full-year revenues for 2016, but offered a cautious forecast for the year ahead. The company, which operates the Oxxo convenience store chain, will invest about US$ 1.3 billion this year, and is set to grow across all its divisions. ▪

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