Politics are weighing in on this week's retail developments. In France, the 'yellow vest' protests affected Casino's revenue. The ongoing Brexit debacle has prompted German Retail Blog to interview a British law expert for his view of the current impasse. Get also informed about new partnerships and investments in our industry. Enjoy the read!




Friday, 18 January 2019





Hello ,

Politics are weighing in on this week's retail developments. In France, the 'yellow vest' protests affected Casino's revenue. The ongoing Brexit debacle has prompted German Retail Blog to interview a British law expert for his view of the current impasse. Get also informed about new partnerships and investments in our industry. Enjoy the read!




Europe


Political impacts ▪ French retailer Casino, which is battling investor concerns over its high debt, suffered a slowdown in Q4, claiming that anti-government protests cost the company about 50 million in lost revenue. Meanwhile, France has outlined a EUR 50 million contingency plan to deal with an eventual "hard Brexit".



Management changes ▪ Russian supermarket chain Magnit is revamping its leadership structure (paywall) by recruiting former Lenta boss Jan Dunning to take up a newly created position as president. British retailer John Lewis has also announced reshuffles at the top, daughter company Waitrose has hired a transformation director.



Reporting results ▪ Germany's Metro Group saw its like-for-like sales up in the first quarter, but its Russian business is still reason for concern. Across the channel, Primark owner Associated British Foods maintained its full-year earnings guidance with revenue growth during the quarter in nearly all of its businesses.




United States


Delivery competition ▪ Walmart has partnered with last-mile delivery providers Point Pickup, Skipcart, AxleHire and Roadie to power the service in metropolitan areas across four states. Ahold Delhaize-owned supermarket chain Shop & Stop is set to launch driverless grocery vehicles in Boston this spring.



Footwear for tomorrow ▪ Foot Locker announced that it has made a USD 2 million investment in a school for shoe designers and will collaborate on new educational programmes. The athletic footwear and apparel retailer operates approximately 3,270 stores in 27 countries.


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Bleak outlooks ▪ Children’s apparel retailer Gymboree has filed for Chapter 11 bankruptcy protection for the second time in less than two years. But this time it has no plans to revamp its business. Shopko Stores, a general merchandise store operator, went through the same procedure and plans to close 38 outlets.




Australia & South Africa


Festive updates ▪ Cape Town-headquartered retailer Woolworths reported a slower sales growth in the lead up to Christmas. Its Australian department store unit David Jones posted a tiny increase in the period. Meanwhile, electronics retailer Kogan is convinced to have weathered a substantial drop in sales.



Supply chain optimisation ▪ South Australian grocer Drakes Supermarkets has partnered with technology firm Infor to integrate data analytics into its upcoming state-of-the-art warehouse facility in Adelaide. The system will deliver optimisation throughout the business, allowing it to take greater control of its supply chain.




Weekend inspirations


Brexit exit ▪ After Theresa May's failure to obtain parliamentary backing for her agreement with the EU this week, a no-deal scenario looks increasingly possible. German Retail Blog spoke to British law professor David Collins, who thinks the UK will be better off out of the EU, although it is a horrendous process so far.



Tech to address ▪ Innovation will continue to happen at the intersection of what customers want and technology’s ability to give it to them. This is according to some retail start-ups that showcased at the NRF Big Show this week. Here are five things retailers should consider.