Global retail update

Smile to spend

Customers at one KFC outlet in China will be able to pay for their meal with a smile. The initiative, enabled by Alibaba-backed facial recognition technology, is part of parent company Yum China’s drive to attract a younger generation of tech-focused, health-conscious consumers.

American ambitions

Korean food giant SPC Group, owner of Paris Baguette, has unveiled aggressive plans to grow its US business fivefold in the next three years. It wants to have 300 of its baked goods stores in the country by 2020, boosting its workforce by up to 10,000.

Missed target

US retailer Target underestimated the buying frenzy (Paywall) it would trigger after offering free shipping for its Israeli customers in a three-day promotion last month. The chain was forced to cancel thousands of orders.

Pleasing results

Italian grocer Unicoop Firenze enjoyed impressive sales growth well above the national average, reporting a 1.2% bump compared with 0.1% nationally. Dutch dairy company FrieslandCampina reported a 10.7% jump in revenue thanks to higher sales prices and its acquisition of Engro Foods.

Starbucks sued

The coffee giant is being sued by an Indianapolis shopping mall operator over its plans to close its Teavana stores. The property group says by failing to fulfill its lease obligations the retailer opted to protect its own share price to the detriment of the company and other retailers.

Onwards and upwards

Slovenian retailer Mercator has the all-clear from its struggling parent company to re-enter Bosnia and Herzegovina, but LZ Retailytics says the real winners are the respective number twos in each territory. New data shows Cooperative U’s strong momentum is likely to see it overtake Auchan as the fifth largest retailer in France.

Expanding overseas

Canada’s Hudson’s Bay has opened a department store in Amsterdam, with nine more to follow in the next three weeks. Here is what the leaders of the retail conglomerate expect. Fellow Canadian, cafe chain Tim Horton, is on track for the second phase of its extensive roll-out plan in the UK.

Coffee considerations

The Southern unit of German discounter Aldi is merging its coffee factories into one common association, named NewCoffee Roasting Specialists, to exploit potential distribution gains. LZ Retailytics thinks the move was long overdue and that it is an indication of more to come like the listing of coffee brands.

Russian experiments

German hypermarket operator Globus trials a new initiative to link e-commerce with its bricks and mortar business in Russia. The retailer will be launching a click & collect service by end-2017 and plans to start with an assortment of up to 10,000 items, including perishable goods.

Reckitt in trouble

Four top executives are quitting the British household consumer group. Their departure follows a cyber attack that led to a forecast cut in July due to disruptions in manufacturing and distribution. Reckitt Benckiser is in the middle of a restructuring process.

Joining forces

Alibaba and Tokyo-based convenience store chain Lawson are teaming up to bridge the language gap and will sell online tickets to Chinese tourists for Japanese leisure activities. Lawson is also equipping its roughly 13,000 stores in Japan to accept Alibaba’s Alipay mobile payment service.

Online moves

Australian supermarket majors Coles and Woolworths are ramping up their e-commerce efforts (paywall). The former will open its first online delivery hub in Queensland. Across the Tasman, LazyAs is challenging UberEat with its local delivery service. Running for just under a year, the Kiwi start-up is about to reach a turnover of NZ$ 1 million.

Export push

In an effort to increase the traceability of supplies and make beef shipments more attractive to potential buyers in the US and Asia, Argentina’s government will work to promote micro-chip-technology and the accompanying digital tracking.

Sustainability matters

The Brazilian unit of Walmart has teamed up with private label manufacturer Nat Cereais to develop more sustainable production methods through the “Sustentabilidade de Ponta a Ponta” project. The initiative promotes the reduction of negative impact throughout the supply chain.