There are some inspiring ideas and opportunities circulating today. Pharma chain CVS is getting competitive with its new membership programme, while India's Flipkart is hoping to grow business with the launch of a free video streaming service. And if you’ve ever thought distribution had its challenges – try doing it in rural Africa! Enjoy the read.




Tuesday, 06 August 2019





Hello ,

There are some inspiring ideas and opportunities circulating today. Pharma chain CVS is getting competitive with its new membership programme, while India's Flipkart is hoping to grow business with the launch of a free video streaming service. And if you’ve ever thought distribution had its challenges – try doing it in rural Africa! Enjoy the read.




Europe


Restructuring operations ▪ Tesco is set to axe 4,500 jobs as it restructures its Metro stores in response to the changing retail climate. An increase in online shopping, shifting consumer habits and the pressure from German discounters Aldi and Lidl were all credited with driving the change.



Bowing out ▪ Metro’s plan to sell off its hypermarkets has suffered a blow after Czech investor Daniel Kretinsky has refused to increase his EUR 5.8 billion bid. His investment platform EP Global Commerce acknowledged that each party had ‘different views on the valuation’ of the retailer.



Tough choices ▪ Embattled retailer Sport Direct seems to regret buying House of Fraser out of administration in 2018, and rumours are swirling that they are set to shut down as many stores as its previous owners intended to. Meanwhile, the Mike Ashley-owned group has acquired clothing chain Jack Wills for GBP 12.75 million.




Asia & Australasia


Gaining momentum ▪ Kaufland, which Australians regard as 'Aldi on steroids', is powering ahead with its expansion Down Under. The German powerhouse, a unit of the Schwarz Group, is making its first foray into the Toowoomba region with plans to build a 4,000 sqm hypermarket in southern Queensland.



Increasing traffic ▪ Flipkart is kicking things up a notch with the announcement they will roll out a video streaming service, free of charge, for its 160 million users. The Walmart-owned e-commerce company hopes to increase its customers in the smaller provinces.



Amazon’s efforts ▪ The online behemoth is stepping up efforts in the Australian market with the commencement of its small business Launchpad program, designed to help start-ups reach a wider audience. In Israel, Amazon is desperately trying to get its official launch ready in time for the Jewish holidays.




United States


Decision time ▪ Walmart may look to sell vintage-style clothing brand Modcloth, as buyer interest creates an opportunity to divest the loss-making company. Meanwhile, the retail giant is under pressure to review sales of guns and ammunition following the weekend's mass shootings.



Staying relevant ▪ Pharmacy chain CVS is going after the millennial market with a new membership plan that seems closely modelled off Amazon Prime. For an annual fee, consumers can access free delivery, regular discounts, a monthly coupon and a pharmacy hotline.



Trade fiasco ▪ China has hit back at President Trump’s latest round of tariffs, by allowing the yuan to reach an 11-year low, and sparking global fears the trade conflict could become a currency war. Meanwhile, in a survey of 30,000 US consumers, 60% said they would change their shopping habits to deal with the latest tax.




Weird and wonderful


Big challenge ▪ The life of a delivery driver for African e-commerce platform Jumia can be tricky, and the reason might surprise you. Addresses. Very few houses have numbers displayed, instead drivers often have to navigate by landmarks. Read one driver’s fascinating story here.



Changing climate ▪ Lingerie major Victoria’s Secret has taken a major step forward and hired a transgender model for a catalogue photo, a stark contrast from last year when the label refused to put ‘transsexuals’ in its fashion show. In Hungary, Coca-Cola is receiving backlash from the ruling conservative party over an ad that promotes acceptance of homosexuality.