Retailers are hitting profit records in today's edition, with Lidl mother company Schwarz group breaking EUR 100 billion for the first time, Amazon increasing its lead on the e-tail ranks, and Rakuten seeing high returns on investment. Meanwhile, China retaliates to US trade tariffs. Enjoy the read and feel free to share!




Tuesday, 14 May 2019





Hello ,

Retailers are hitting profit records in today's edition, with Lidl mother company Schwarz group breaking EUR 100 billion for the first time, Amazon increasing its lead on the e-tail ranks, and Rakuten seeing high returns on investment. Meanwhile, China retaliates to US trade tariffs. Enjoy the read and feel free to share!




Europe


Big numbers ▪ Food giant Schwarz group has revealed a 7.4% sales growth in 2018, with profit in excess of EUR 100 billion for the first time. Their discount chain Lidl grew by 8.8%, and Kaufland hypermarkets by 1.6%. Schwarz group invested EUR 7.5 billion last year, with no plans to cut back in 2019.



New markets ▪ UK grocer Tesco has moved its products into the Bosnia and Herzegovina market (paywall), partnering with local franchise Bingo. The move will see a selection of Tesco's private SKU's on Bingo shelves. Along with fellow supermarkets Sainsbury's, Waitrose, and others, the retailer has vowed to halve food waste by the end of the coming decade.



Supermarket moves ▪ In an EUR 600-700 million move, French retailer Auchan is set to sell 46 Italian stores to local grocer Conad. Meanwhile, Polish supermarket giant Dino Polska has seen first quarter year-on-year sales growth of 23%, despite the 'unfavourable' position of the Easter holiday. Croatian food and pharmaceutical group, Podravka, has also seen record growth.



Taking precautions ▪ French multinational Carrefour is covering its Atacadão branch in Brazil following 240 tax disputes, totalling EUR 183 million. Atacadão will be booking provision for the entire risk.




United States


Amazon update ▪ The online retailer is only strengthening its place at the top of the e-tail ranks, with its brand value doubling to USD 316 billion. According to a recent survey, China’s Alibaba is now the world's second highest valued retail brand.



Moving on ▪ UK grocer Asda is dependent on parent company Walmart after the failed Sainsbury's merger, with speculation being the world's largest retailer will shed the supermarket chain. However, other voices have suggested Walmart may hold on to Asda, due to steady results under its current CEO.




Asia & Australia


Reporting results ▪ Japan's online giant Rakuten, has seen a fourfold first quarter profit jump, after a USD 1 billion return on its investment in driving service Lyft. Meanwhile, Alibaba prepares for its first quarter earnings report, and its mobile payment service Alipay is expanding to 300,000 retailers in Japan.



Eastern expansion ▪ Japanese department store operator Takashimaya is looking to expand in Southeast Asia, with sights set on the Philippines, Malaysia and Indonesia. At the same time, the company is focusing on increasing the profit of its current stores in Southeast Asia and China.



Convenient strategy ▪ Australian supermarket major Coles will convert around 200 of its supermarkets into convenience formats and adding around 75 new product lines to its existing ready-to-eat meals, and to earn another billion dollars in sales through this strategy.




Interesting reads


Tariff target ▪ The trade dispute between China and the US has hit a new checkpoint. China's latest move against the tariffs, revealed today, hits 2,493 items, and roughly USD 60 billion in exports. Click here for a look at the list of products affected.



Reviving coffee ▪ Coffee giant and Nestlé unit Nespresso is nurturing the revival of coffee growth with a new programme called 'Reviving Origins'. The programme is looking to help restore coffee agriculture in areas that have been hit by economic difficulty or natural disasters.