Global Retail Update

Portfolio expansion

Unilever will acquire US skincare maker Sundial Brands, whose products are purchased mainly by African-Americans. This comes after the Netherland-based consumer goods giant, currently on the hunt for a new CEO, has completed its EUR 2.27 billion purchase of cosmetics company Carver Korea.

Festive showdown

Walmart is within striking distance of matching Amazon’s online prices and about to regain the “low price leader” title. Traditional retailers Macy’s, Sears and JC Penney have all shuttered stores, creating an opportunity for a strong e-commerce festive season with Cyber Monday on track to become the biggest-ever internet shopping day.

Store debuts

Speciality athletic apparel retailer Lululemon has expanded its footprint in Denver with two stores. Both outlets share a local focus. Click here for some images. Florida-based grocer Publix is set to grow outside its home state and will launch its GreenWise Markets format in South Carolina.

Growth strategies

Finnish grocery market leader S Group plans to open up to 20 new Prisma stores in St. Petersburg and the Leningrad region and is on the lookout for optimal locations. Russia’s Dixy Group supports online retailer Ozon and has announced to install parcel terminals for their pick-up services in 120 of its outlets.

Focus on freshness

German grocer Edeka is increasing its efforts to combat discounters when it comes to fresh produce with the roll out of its fruit and vegetable economy label. Italian regional cooperative retailer Unicoop Firenze plans to introduce products from another 200 suppliers from the Tuscany region.

Ikea partners in Dubai

The Swedish furniture major is set to develop a virtual shopping experience with a pop-up concept throughout the Middle East and has teamed up with Takeleap, a Dubai-based technology agency specialising in artificial intelligence, augmented and virtual reality.

Tencent on a roll

The Wechat operator is closing the gap with Alibaba in China’s US$ 1.1 trillion e-payment market, now holding a market share of 39.8% compared with the latter’s 54.5%. The Shenzen-based company became the first Asian firm to break into the US$ 500 billion league, briefly overtaking Facebook.

Sephora prospers in India

The French beauty retailer, part of luxury conglomerate LVMH, plans to introduce 14 additional exclusive brands in India and is in the process of increasing its average store size. There are now 14 Sephora stores in the country and the goal is to get to 50 stores across the top 15 cities.

Online stands

Major global brands including Cadbury, Diageo and Lidl have suspended advertising on YouTube after revelations their ads were shown next to predatory comments targeting children. Italy’s biggest bricks and mortar retailers have banded together to launch a manifesto demanding fairer competition between themselves and online players.

Under fire

UK retailer WHSmith is accused of restricting access for wheelchair users by filling its aisles with extra baskets. Fellow Brit Tesco is defending itself from claims of paying Christmas temps with gift cards, saying it uses them for a small number of employees where there is no alternative.

Busy Brits

Takeaway website Just Eat is on the cusp of entering the FTSE 100 after its market value leapfrogged Sainsbury’s to GBP 5.6 billion. Upmarket grocer Booths is up for sale, with an asking price of between GBP 130 million and GBP 150 million. The troubled family-run chain has brought in advisers to consider bids.

Black Friday debrief

Retailers enjoyed a bump in stocks after the shopping bonanza, helped along by online sales reaching record highs while bricks and mortars were only slightly down. The spending frenzy continues today with Cyber Monday projected to generate another US$ 6.6 billion in sales.

Sobeys swings the axe

Canadian grocer Sobeys will cut 800 office jobs under a reorganisation of the company as it looks to streamline into one national business rather than five regional entities. The supermarket chain has been struggling for several years but is seeing signs of a turnaround.

Holiday fails

Struggling department chain Macy’s faced every retailer’s worst nightmare on Black Friday after its credit card processors stopped working. Amazon is facing escalating competition between merchants over the festive season with many resorting to dirty tactics to undermine rivals.

Clash of the titans

China’s dominant online platforms, Alibaba and JD.com, are engaged in a war of words via lawyers with both crying foul over tarnished reputations. Alibaba is implying its rival is behind a rise in chat rooms accusing it of using its size to force merchants to choose sides, which JD.com denies.

Foreign imports

Japanese casual clothing brand Uniqlo is setting its sights on India, with preparations already underway to open stores there next year. Tech giant Apple is putting the finishing touches on its first Korean flagship store, to be based in Seoul.

Attracting controversy

Myer’s problematic investor, Solomon Lew, is expected to call an extraordinary general meeting of shareholders to vote on his nominees for the department chain’s Board. A major meat supplier to Woolworths, Coles and Aldi is being criticised for its use and treatment of hundreds of migrant workers to boost profits.