Retail giant Ikea continues its remodelling, despite losing almost half its yields, while Italian coffee machine makers shop around for buyers. Soft drink chains Pepsi and Coca-Cola are both looking to expand further in the Middle East, while Amazon works hard on digital development. Meanwhile, big players make environmental moves. Read on, and have a great day.




Thursday, 29 November 2018





Hello ,

Retail giant Ikea continues its remodelling, despite losing almost half its yields, while Italian coffee machine makers shop around for buyers. Soft drink chains Pepsi and Coca-Cola are both looking to expand further in the Middle East, while Amazon works hard on digital development. Meanwhile, big players make environmental moves. Read on, and have a great day.

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Europe


Modification costs ▪ Swedish flat-pack retailer Ikea's extensive restructuring has not come cheap, with the franchise seeing a EUR 1 billion drop in profits. The company's financial boss has stated the drop is expected, and reflects the fact that customers are not having to fund the restructure. Yields are expected to bounce back in 2022.



Coffee talks ▪ Lone Star, owner of Italian coffee machine retailer Evoca, is in talks with Deutsche Bank to sell the business, valued at around EUR 1.5 billion. The coffee market is seeing a surge recently, with machine makers no exception. The sale has attracted interest from Italy and the US.


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Commerce partnership ▪ Metro-Nom, the IT sector of German retailer Metro, has joined hands with Berlin commerce software provider Spryker Systems. The partnership's first move will be to trial a Romanian online store, and cater to Metro's trader customers.



Russian distribution ▪ Leading Russian food retailer X5 has opened a new distribution centre in Saratov, its tenth in the area. The centre will supply groceries to all local outlets of the Pyaterochka supermarket chain. The move is part of the retailer's infrastructure development in the Volga Federal District (paywall).




Asia


Business moves ▪ Executives from soft drink giants Pepsi and Coca-Cola have met with the Pakistan Prime Minister, and are planning to invest USD 1.4 billion in the country over the next few years, in separate investments. Meanwhile, the China leg of Dutch retailer Spar is putting its weight behind its supply chain, aiding partners with their supply and retail systems.



Homeware development ▪ Chinese homeware retailer Gome has seen sharp revenue falls over the January-September period, due to its restructure program and financing costs. The company is set to speed up growth in secondary cities, and has said it will redeem outstanding bonds in December.



Food service ventures ▪ The Thailand branch of fast food chain Taco Bell is continuing the franchise's international expansion plan, moving into the Thai capital Bangkok. Meanwhile, Hong-Kong based delivery start-up Plum has terminated all employee contracts in a major restructure.




US and Canada


Fresh focus ▪ The Canadian end of Berlin meal-kit chain HelloFresh is set to become the biggest in the Canadian market after its purchase of delivery service Chefs Plate. The company aims to secure 60% of the prepared food sector in the country in 2019.



Tech adventures ▪ Online giant Amazon is diving deeper into software, creating its own computing chips to replace those previously provided by software giants Intel and Nvidia. The retailer has also released a high-tech toy for coders: a self-driving car that allows developers to test self-driving programs.




Conscientious decisions


Sustainable stock ▪ The World Wildlife Fund has added another supermarket to its collaborators, with Australian major Woolworths partnering with the charity to better sustain its seafood sector. All of the grocer's private label and seafood counter stock will be WWF assessed.



Green power ▪ Indian oil retailers are seeing a growing move into solar power, due to the increasing costs of running oil pumps. India's largest fuel retailer IndianOil is trying to encourage its dealers to switch to sustainable energy, with a goal to see all of its retail outlets switch to solar power in the coming years.