Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Monday, 06 March 2017

Hello, dear reader
Chinese online giant Alibaba gets serious in India with a million-dollar investment into Paytm. For American rival Amazon the sky is not the limit - CEO Jeff Bezos wants to start a delivery service to the moon. France's Auchan is more down to earth with a billion-dollar investment into its brand and its new buying alliance with Système U. Get informed and don't forget to share the news. Have a great start to the week.


Asia & Australia
Increased competition in India   Alibaba is pushing ahead with its entry into the country's contested e-commerce market by pouring US$ 177 million into Paytm's online business, raising its stake in the company to over 50%, while Chinese tech firm LeEco is downsizing its presence in India to stay 'in line with industry benchmarks'. ▪
Payment and price strategies   To back its small suppliers, Coles will introduce a 14-day payment time policy. Fighting foreign rivals, the supermarket operator and competitor Woolworths are closing the price gap on US discounter Costco, which is still as much as 25% cheaper than the two giants. But price cuts are not enough, say analysts. ▪
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Auchan's ambitious plans   Building on its more informal agreement with Système U to work together, the French retailer confirmed the creation of a joint buying centre (in French). Groupe Auchan has also revealed that it will invest a total of EUR 12.3 billion (in French) on store refurbishments and a modernisation programme. ▪
Aldi's process of modernisation   In Germany, discounter Aldi Süd has unveiled a new logo, which reflects the 'current process of modernisation'. See how Aldi's logo has changed over the decades in a picture gallery.  ▪
Shake-up at Sainsbury's   Following a recent review, the British supermarket major is making changes to administrative roles, cutting 400 jobs. The company is also discarding the night shift in 140 outlets, which will affect 4,000 employees, who will be offered early morning or late evening shifts.  ▪
Great expectation   Morrisons anticipates a double-digit rise in pre-tax profits for 2016 thanks to strengthening its ties with Amazon. The British supermarket chain rolls out the online giant's pick up lockers across 400 of its outlets. ▪
USA & Latin America
Fly me to the moon   Amazon boss Jeff Bezos has proposed setting up shipments for "future human settlement" on the moon. He thinks that a reliable delivery service will be critical. Over in Europe, the online titan has struck an earthier deal with Repsol to pick up parcels at its 4,000 filling stations (paywall) across Spain and Portugal. ▪
Costco gets expensive   The US warehouse club retailer is raising the cost of entry into its stores after its second-quarter profit took a hit. From June, the annual fee for members will increase to US$ 60. This is the first time Costco has increased its membership since 2011 and insiders wonder whether it is worth it.  ▪
Cencosud stays on top   Fourth-quarter revenue at the South American retailer was 6.5% lower due to currency devaluation. In local currency, Cencosud had revenue growth in all businesses across the region and cemented its leading position. The company operates in Chile, Argentina, Brazil, Peru and Colombia. ▪
Keep an eye on
Teaching dairy in China   At US$ 200 billion a year, China's food service industry is booming and Western-style cuisine is growing in popularity. Dairy giants such as New Zealand's Fonterra and Dutch cooperative Royal FrieslandCampina are supporting this trend with workshops and a training kitchen. ▪
Virginia supports robots   The US state will be the first to allow delivery robots to operate on sidewalks and crosswalks. Two lawmakers teamed up with Starship Technologies, an Estonian-based ground delivery robotics company, to draft the legislation. Idaho and Florida are said to be next.  ▪

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