Global Retail Update

Store openings

UK grocer Waitrose has opened its fourth shop in Dubai, as it continues its partnership in the Middle East with Fine Fare Food Market. Russian retailer Lenta continues its aggressive ambitions for growth, opening its thirty seventh supermarket in Moscow and another two in St. Petersburg to total twenty in the city.

Ramping up

Walmart has big plans to open 30–40 hypermarkets in China every year including more compact hypermarkets. Japanese drugstore brand Matsumotokiyoshi will expand into Taiwan, after a survey showing its cosmetics are popular with consumers there.

Facebook to deliver in USA

The social media heavyweight has launched a food order and delivery service across America. Restaurants including Chipotle Mexican Grill, Jack in the Box and Five Guys have all partnered with the company, which announced its plans in this space a year ago.

Focus on key banners in Europe

X5 Retail Group will put all of its Moscow-based Perekrestok Express convenience stores up for sale as the Russian leader sees its main growth opportunities in proximity stores, supermarkets and hypermarkets. The group has just opened its first Karusel outlet (paywall) with a new foodservice-centric concept.

Delivery debut

Carrefour has introduced ‘Merci Voisin’ (Thanks, neighbour) in France. It is a delivery platform, which allows customers to have their online orders delivered by other shoppers. The retailer has also named former Fnac Darty manager Matthieu Malige as its new CFO, effective immediately.

Lidl gears up

The discount giant is creating 500 new jobs in Britain when it will open its largest distribution centre in Peterborough, central England. It is part of its GBP 1.45 billion investment in the country over the next two years. The new site is the retailer’s 15th warehouse in the UK.

Increasing investment

Germany’s Rewe Group wants to accelerate its efforts to modernise its store network and logistics as well as spending more on digitisation and training. The Cologne-based retailer will ramp up its investments to more than EUR 2 billion in 2018, says CEO Lionel Souque.

Cost-cutting drives

Loblaw is laying off 500 of its office workers but expects to create more jobs this year. The Canadian retailer is making major investments in omnichannel, financial services and other growing areas. Last week, fellow retailer Sobeys announced it would cut executive positions.

The last mile

Pittsburgh-based Giant Eagle debuts with home delivery in central Ohio and partners with Deliv to expand its click-and-collect service. Meanwhile, Amazon is working on a ‘smart doorbell service’ as well as on a solution for direct-to-trunk delivery in collaboration with plate maker Phrame.

Privatisation on hold

US department store chain Nordstrom has abandoned plans to take itself private this year, because of difficulties in arranging debt financing. The iconic company wants to restart the process of going private after the holiday season. Shares have dropped as a result.

Looking beyond homes

While Amazon’s Alexa and Apple’s Siri are fighting for dominance in the household market for voice-activated assistants, its Chinese competitor Alibaba wants to grow the footprint of its smart speakers in sectors such as retail, hotel and air travel industries.

Considering options

New Zealand-based T&G Global is mulling over a potential sale of its Enzafoods unit as it wants to focus on growing, sourcing and marketing fresh produce. Staying in the island state, meat-packing giant Hilton Food is set to invest EUR 33 million in a processing factory in Auckland.

Good sport

Speculation is mounting that Amazon is getting into sportswear, with the e-commerce giant reportedly speaking to a number of major activewear suppliers. The news has sent an already-tumultuous industry reeling, with the shares of many large sporting brands taking a tumble.

How convenient

A coalition representing nearly 7,000 7-Eleven franchisees is suing its parent company for failing to fulfil its promise to treat franchises as independents. Wisconsin-based convenience chain Kwik Trip has taken control of 34 PDQ Food Stores across the state in a deal worth about US$ 14 million.

Final chapter

Woolworths has closed the book on its costly foray into home hardware, with the completion of its AU$ 830 million sale of its portfolio of ex-Masters properties to Home Consortium. It plans to convert the Masters stores into large format retail centres.

Generous spirit

Former Esprit chair Michael Ying Lee-yuen has transferred HK$ 900 million worth of shares to his two daughters, making them jointly the brand’s second-largest shareholder. In what could be the last Diwali sale for 2017, Flipkart and Amazon India are hosting four-day long festivals with discounts of up to 80%.

Haves and have nots

The European Commission has found further evidence of the alleged practice of dual food quality in Central Europe, reinforcing the view that the continent is divided into first and second-class consumers. LZ Retailytics points out that the often used ‘produced in Germany’ tag may now be more than post-communist hype.

Fashion first

Luxury brand Gucci is going fur-free from next year, bowing to pressure from animal rights activists and consumer demand. Zara UK has recorded its first fall in profits despite record sales. The company blames its extensive investment programme which includes store refurbishments.

Compiled by Chinwe Agbeze