Global retail update
Plastic bag ban in Kenya
Kenyan supermarket majors Nakumatt and Uchumi plan to start selling recyclable bags to their customers, supporting the new directive by the Ministry of Environment to ban plastic bags. Other supermarkets such as Naivas and Tusky’s may also be supporting the move.
Alibaba’s new Thai hub
In its on-going quest to expand outside China, e-commerce giant Alibaba is expected to start investing in its logistics hub in Thailand later this year. The centre will be used for distribution of goods to the Asean region, particularly Cambodia, Laos, Myanmar and Vietnam.
Challenges for big brands
After three years of profit, German sportswear maker Puma has run into losses in India again, claiming that sales on online marketplaces are slowing down. As part its strategic shake-up, British icon Marks & Spencer has finally closed (paywall) all its stores in China.
Suppliers under pressure
On the heels of the announcement that it is testing free grocery pick up, Amazon is working to convince major brands they’d be better off selling their goods directly to shoppers, bypassing traditional retail. Suppliers, including giants like Mondelez, Coke, and P&G feel the squeeze.
Seeking approval
Walgreens Boots Alliance wants to push its proposed merger with Rite Aid through a declaration of “certified compliance”. Meanwhile, French dairy company Danone agreed to sell its Stonyfield organic yogurt brand to win the nod from US antitrust authorities for its US$ 10 billion acquisition of soy-milk maker WhiteWave.
Reigniting brands
With interest in healthy and organic foods still on the rise, supermarket operator Publix plans to reignite its GreenWise store concept. Cosmetics chain Sephora is taking experiental retail to the next level by turning two of its Manhattan locations into its new “Beauty Tip” store format.
Procurement power in Europe
Retailers including Netto Stavenhagen, Real (Metro Group) and Bünting Gruppe have joined forces to combine their buying weight. The new procurement collaboration, RTG Retail Trade Group, aims to match the major German chains, exploiting synergies and increased scale.
Tesco Booker roadbump
The landmark merger is coming under more pressure. Tesco is facing the prospect of giving up hundreds of its convenience stores to satisfy rivals and the Competition and Markets Authority that the playing field remains level.
Investing in growth
Romania’s leading supermarket chain, Profi, is benefiting from another EUR25 million boost from the European Bank for Reconstruction and Development to support ongoing growth. Over in Italy, online grocery start-up Supermercato24 is increasing its capital expenditure by EUR 3.3 million for greater coverage.
Amazon cashes up
Shopping without credit or debit cards just got easier, with the online juggernaut launching Amazon Cash. The scheme allows customers to add cash to their account via the brick-and-mortar stores. The retailer is also quietly testing a social media influencer programme, to generate sales through brand association.
Success in Southeast Asia
Hong Kong-based beauty retailer A.S. Watson reported a strong online growth for 2016, but also an increased number of shoppers in their stores. In a bid to export to the neighbouring regions, French food giant Bel is set ramp up its cheese production and has opened a huge factory in Vietnam.
Target deploys RFID
The discounter is partnering with Avery Dennison to optimise its inventory management. The partnership will see the technology rolled out across more than 1,600 of its stores which it hopes deliver a better shopper experience.
Lowe’s rolls with VR
The home improvement giant is expanding its virtual ‘how-to’ classes (subscription only) following the success of its pilot programme launched last month. Shoppers can use the VR headset and controller to practice specific DIY projects step-by-step.
Ele.me looks overseas
The major online food delivery platform in China plans to invest overseas, once it cements its foothold back home. The company says it would consider expansion after it has reached a 20% penetration in mainland China.
Coles supports locals
The supermarket giant has sealed a A$ 60 million-deal with Victoria-based manufacturer Maxitrans Industries. The agreement will see 395 Australia-made truck trailers added to the fleet, and will create more than 100 new jobs.