Half yearly results are flooding in and Amazon has come out on top with record profits on the back of cloud computing and advertising. Walmart has opted to drop Synchrony in favour of Capital One as the provider of its store credit cards. Meanwhile, the plot continues to thicken with Papa John’s as the company is sued by its founder John Schnatter, who is mounting a legal challenge against the board. Enjoy the read and have a great weekend.




Friday, 27 July 2018





Hello ,

Half yearly results are flooding in and Amazon has come out on top with record profits on the back of cloud computing and advertising. Walmart has opted to drop Synchrony in favour of Capital One as the provider of its store credit cards. Meanwhile, the plot continues to thicken with Papa John’s as the company is sued by its founder John Schnatter, who is mounting a legal challenge against the board. Enjoy the read and have a great weekend.




United States


Performance results ▪ Following Facebook’s devastating results, Amazon investors are breathing a collective sigh of relief after strong half yearly reports boosted the company’s stock to record levels. On the other hand, the online behemoth is dealing with harsh criticism of its facial recognition technology which falsely identified 28 Congress members as criminals.



Shifting loyalties ▪ After much deliberation, Walmart has ended its decades-long relationship with Synchrony Finance and opted to go with Capital One for its store-branded credit card program. Meanwhile, John Schnatter is suing Papa John’s as he seeks documents to prove the board staged a ‘coup’ against him.



Trump tariff fiasco ▪ McDonald’s and Coca-Cola have both expressed concern over the trade war between the United States and China. The fizzy drink major is seeing cost pressures as a result of the taxes on steel, and the ‘Golden Arches’ is experiencing reduced customers in its Chinese restaurants.



Sweet treat ▪ Hershey has posted a pleasing 5.3% rise in sales, beating Wall Street expectations. The chocolatier is reaping the benefits from its SkinnyPop acquisition, as well as increased American demand for its chocolate.




Europe


Name and shame ▪ Lidl and Asda are among a host of brands slammed for ignoring pleas by environmental watchdogs to switch over to suppliers of viscose who sustainably produce the fabric. Many viscose producers dump toxic wastewater in lakes, wreaking havoc on local communities.



Tesco makes changes ▪ The supermarket major has appointed Naomi Kasolowsky, formerly of Marks and Spencer, as its foresight and insight director. Meanwhile, following on from its recent beef announcement, Tesco is also introducing new contracts to lamb farmers that will see them paid well above market rate.



Discussing discounts ▪ Shoppers in the UK are missing out on savings and deals because they are ‘too British to barter’. Annually, Brits lose out on average by GBP 496 per person, or GBP 6.5 billion collectively, because of a feeling of awkwardness around negotiating prices.




Australasia & Asia


Closing down ▪ Dick Smith Foods is set to close its grocery offerings in Australia, with the company founder blaming increased competition from Aldi for its demise. Entrepreneur Dick Smith believes the German discounter’s business model could undermine supermarket majors Coles and Woolworths in the future.



Poultry promise ▪ Filipino chicken great Jollibee is planning extensive Middle Eastern expansion of its brand. The fast food retailer identifies the United Arab Emirates as a ‘key market’ and intends to open 25 stores in the area by 2020.




Food for thought


Fairness and fries ▪ Burger King has enjoyed its first foray into taking a stand on social issues with a one-day sale of over-priced ‘chick fries’ to protest the ‘pink tax’ levied against women. The hamburger chain aimed to bring awareness to women being charged more for products and services that are identical to the ones for men.



Chocolate clean-up ▪ A raft of strategies are being deployed to regulate the chocolate industry and halt the damage caused by child labour and deforestation. Click here to see the new moves cooked up between cocoa-producing countries and companies to tackle the ethical nightmare that is plaguing west Africa.