Global retail update

Highs and Lows

Google’s parent company Alphabet has experienced a massive profit gain, growing by 73% or US$ 9.4 billion in the first quarter. Meanwhile, the CEO of embattled retailer Sears is out to purchase some of the company’s more successful brands, following unsuccessful attempts at luring outside buyers.
Innovative swings
In a move to further its investment in the Indian market, Amazon has increased its funding in fintech startup Capital Float by US$ 22 million. The e-tail giant is also generating hype around its plans to build a robot capable of performing domestic duties. Speculation is afoot that Amazon is considering a move into TV home shopping, with a possible acquisition of Evine Live.
Tech focus
Walmart is urging suppliers to enter food into online tracking system blockchain, in an effort to better manage food safety issues and decrease waste. The US retail giant is also expected to visit Israel this week, with an apparent interest in Israeli technology.
Battles ahead
Alibaba is copping flak after reports have emerged the online behemoth is ‘punishing’ companies who refuse to sign an exclusive contract with them. Affected brands describe being blocked from special sales, having advertising removed and products no longer appearing in top search results.
New blood
Retail analysts are hailing the appointment of Myer’s newly chosen CEO John King as a positive step towards revitalising the besieged department store. The former House of Fraser boss is expected to pursue cheaper store rent as part of a colossal effort to turn the retailer’s fortunes around.
Offline endeavours
Tmall has opened its first physical store in its Hangzhou headquarters, in an effort to capitalise on the city’s policies around cross-border retail. The shop sells high end beauty and fashion items and customers complete transactions via smart phones.
Intriguing data
Ad spending stats released in the UK reveal that Sky has jumped ahead of Procter & Gamble as the biggest spender on traditional advertising. In the supermarket sector, Tesco had the largest increase, while Aldi’s spending decreased by 32%.
Belt tightening
In an apparent effort to cut costs, Nestlé has begun an appraisal process with a view to consolidate the US$ 633 million North American advertising business it does with approximately five agencies.
Sustainable supermarkets
Dutch grocer Albert Heijn has been bestowed with an award for being the most sustainable supermarket chain in the Netherlands. Meanwhile, Coop Norway is doing its bit for the environment with the launch of its Plastic Clean-up campaign.
Online ethics
The legitimacy of some online reviews have been called into question following a Washington Post discovery that merchants can secretly use Facebook to inundate Amazon with fake reviews. Meanwhile, the Facebook inquiry into data mining may have an impact on retailers.
Keeping quiet
The luxury fashion sector trails behind other retailers when it comes to fair trade transparency. Brands such as Dior, Chanel and Dolce & Gabbana have been the subject of much criticism for refusing to reveal information about their supply chains and the conditions for workers.
Compelling swings
Amazon’s dominance has been further solidified with US grocery sales up more than US$ 200 million in the first quarter. The online giant is also expecting to strengthen its hold on the Indian market, with predictions that sales of groceries will significantly increase when AmazonFresh is launched. “Alexa Blueprints” has been unlocked, which allows users to make helpful and amusing customized voice commands through the virtual assistant.
Good buy
General Mills stock could risesignificantly more than predicted, as its purchase of Blue Buffalo Pet Products starts to flourish. The company’s shares have fallen 27% this year, with some analysts claiming they are now a ‘bargain’ given the potential for growth from their recent acquisition.
Waste not, want not
Walmart Canada has revealed a commitment to achieving zero food waste by 2025. The retail heavyweight is donating US $15 million towards food wastage reduction research and will also improve its operational efficiencies in order to fulfil their mission.
Sticky situation
In a decade-long legal battle over copyright between Nestlé and its US rival Mondelez, the Swiss food giant has been dealt a blow. The European Court of Justice has been instructed to reject the company’s appeal to maintain EU trademark status of its four finger KitKat bar.
Poultry predicament
Sainsbury’s has come under fire after it was alleged they failed to follow through on promises to improve welfare conditions for its own-brand chickens. The UK retailer has handed back a good practice award it received in 2010 from an animal rights group.
Innovative moves
Supervalu is leading the way in Ireland as the first retailer to offer fully compostable and biodegradable produce bags for consumers. Meanwhile in Scotland, Lidl has partnered with six artisan gin producers for their new in-store Scottish Gin Festival.
Chips are up
Alibaba has further strengthened its grasp on the artificial intelligence market with its acquisition of Chinese chip designer C-SKY. The e-commerce giant has also partnered with Xi’an International Medical Investment to offer internet-powered medical services.
Supermarket scuffle
Woolworths faces pressure over its gaming machine sector,with a superannuation fund worth AUS$ 9 billion considering withdrawing its deposits on ethical grounds. Meanwhile, competition is set to heat up among supermarket retailers in Australia, following reports by global rating agency Moody’s that Aldi is set for particularly strong growth Down Under.
Change on the menu
America’s fastest growing restaurants are not who you might expect, as customers appear to value ‘meal experience’ over haste and homogeny. Meanwhile, three Hong Kong restaurants have taken the plunge and are the first diners outside of America to partner with Impossible Foods to include plant-based meats on its menu.
Scarce sustenance
Reports of food shortages in recent years have many consumers worried about the possible ‘extinction’ of their favourite edibles.Bloomberg has compiled a Panic Meter,rating foods on their likelihood of elimination from our shops and diets.