Supermarkets are keeping active today, with Sainsbury's to retain CEO Mike Coupe, Tesco proposing changes to online commerce, and Walmart's Flipkart looking to purchase an Indian grocery chain. Amazon has rejected the idea of a fully robotised warehouse, and Aldi Australia is optimistic about the entrance of competitor Kaufland. Enjoy the read and have a great day.




Thursday, 02 May 2019





Hello ,

Supermarkets are keeping active today, with Sainsbury's to retain CEO Mike Coupe, Tesco proposing changes to online commerce, and Walmart's Flipkart looking to purchase an Indian grocery chain. Amazon has rejected the idea of a fully robotised warehouse, and Aldi Australia is optimistic about the entrance of competitor Kaufland. Enjoy the read and have a great day.

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Europe


Sainsbury's strategy ▪ The CEO of British supermarket chain Sainsbury's, Mike Coupe, will not be leaving the business in the aftermath of the failed Asda takeover. Moving forward, the grocer will be cutting prices and investing in its online presence in the wake of the axed project.



Tax plans ▪ UK grocer Tesco is calling for the government to implement a 2% tax on online sales to offset demanding business rates. The retailer has proposed several changes, including suggesting profit from the tax could be used to reduce business rates for physical stores.



Portugal openings ▪ Spanish supermarket chain Coviran is opening its first Coviran Plus store in Portugal, after a decade of strong results in its home country. The store will feature top of the line technology, and a selection of high quality local items.



Environment action ▪ Germany's largest food retailer Edeka has published a progress report with the World Wildlife Fund, that outlines the retailer's ecological footprint reduction in its private label range. Meanwhile, Greenpeace has called out Swiss confectionary major Nestlé over its claims to be 77% 'deforestation free'.




United States and South America


Amazon update ▪ The e-commerce leader has waived away concerns that automation will replace human labour in its warehouses. Amazon dismissed the prospect of a fully robotised warehouse, citing the current superiority of human cognitive processing. The online giant has also opened up its platform to Israeli retailers.



Strong investments ▪ Walmart-owned Indian e-commerce business Flipkart has its eyes on a local supermarket chain, Namdhari’s Fresh. The retail giant will also be continuing its string of store upgrades, investing USD 160 million in improvements in New York and New Jersey.



Expanding out ▪ Swedish retailer Happy Socks has become colourful with its Los Angeles expansion, opening a new creative hub in the city (includes images). Restaurant chain Melt Shop is also expanding its reach, with a multi-unit development deal in Florida.




Asia and Australasia


Competitive environment ▪ The Australian branch of German discounter Aldi is confident about the entrance of competitor Kaufland into the local market. Aldi Australia chief executive Tom Daunt said the competition will help develop the industry in a positive way. Meanwhile grocery leader Woolworths has revealed a 4.2% rise in sales for the third quarter.



Growth plans ▪ French beauty retailer Hermes has seen sales boosted by the Chinese market, with sales rising by 13% in the first quarter. New Zealand outdoor retailer Icebreaker has opened a new concept store in Queenstown with a design that reflects the company’s focus on sustainability, and commitment to the region where the brand was born.




Interesting reads


Personal content ▪ In the highly digitalised, software driven world of millennial consumers, retailers have had to double down on tactics to attract shoppers. Rather than upgrading stores with flashy technology, businesses are connecting products to consumers via interests and hobbies. However, personalising retail can be taken too far.



High prices ▪ Six months after legalisation, the Canadian cannabis industry is still being dominated by the black market, with around 79% of sales taking place illegally. An anonymous online survey showed the price of legal products was over 40% higher than its black market counterpart.