Global retail update

Blockbuster grocery deal

In its biggest transaction to date, Amazon has announced that it is acquiring organic grocer Whole Foods, which will give the online giant hundreds of physical stores. The all-cash transaction is valued at US$ 13.7 billion. Grocery competitors lost a combined market value of US$ 21.7 billion when the news was made public.
Walmart buys Bonobos

The only retailer with the size, scale and funds to take on Amazon, has made another move to gain more online power by buying men’s clothing company Bonobos for US$ 310 million in cash. With the purchase, Walmart aims to widen its appeal to younger consumers.
Nestlé considers sale

The Swiss food giant explores options to get rid of its US confectionery business, including Butterfinger, Crunch and Laffy Taffy, which generated revenue of about US$ 920 million last year. Nestlé could fetch US$ 3 billion for the division.
Sainsbury’s eyes Nisa
The British supermarket operator is closing in on a GBP 130 million deal to acquire the smaller convenience chain, which currently operates over 3,000 stores. In light of the proposed Tesco-Booker alliance, Nisa has no choice but to consider its options, says LZ Retailytics.
Rewe supports independents

The supermarket division of the Cologne-based retail group plans to reinforce free entrepreneurship. It’s approximately 1,100 independent shopkeepers may in future have the option to become sole shareholders. The move is seen as a step to differentiate from offline and online competition.
Eroski promotes locals

The Spanish retailer is poised to start a campaign alongside 80 suppliers in the Navarra region to support the local agri-food community. Eroski has purchased EUR 1 billion worth of products from the region in the last five years and enjoyed a 10% sales increase in this segment.
Meat safety rules

In a bid to stamp out tainted meat, China’s Food Safety Law is requiring all regions to establish a “standardised safe meat supermarket”. The initiative will become compulsory. The new rule is designed to help consumers feel at ease when buying meat.
Targeting China’s middle class

Baby food maker Bubs Australia has signed a partnership with online retailer Kaola.com to sell its infant formula to the high-end Chinese market. This comes after supermarket giant Woolworths has inked a deal with the e-commerce platform to offer its private label products.
Aube lands in Sydney

Japanese beauty and retail group Aube, which operates 110 beauty hair salons in its home country and eight locations overseas, has launched its first store in the Australian metropole. Consumers are offered the latest Japanese hair products and state-of-the-art techniques.
Market reacts

Shares in Whole Foods and Amazon have soared following last week’s announcement, while bricks-and-mortar retailers such as Target, Walmart and Costco took a massive hit. However, there were some beneficiaries of the announcement, including British e-grocer Ocado.
Going public

Under the cloud of Amazon’s Whole Foods deal, US meal-delivery service Blue Apron and European food delivery start-up Delivery Hero are preparing their market listing. The former has launched a US$ 150 million IPO and the latter is set to raise around EUR 927 million. Analysts are watching with interest.
Exec appointments
Candy giant Mars has tapped Sandeep Dadlani, former president of Infosys, as its new chief digital officer. Netherlands-based food retailer Ahold has promoted Nick Bertram as president of its US operations.
Looking out for staff

Discounter Lidl has re-introduced surveillance cameras in some of it stores, nearly ten years after removing them amidst a staff spying scandal. The retailer says installation will be in consultation with its employees. Meanwhile, Belgian retailer Colruyt is seeing improvements in the working conditions of its suppliers with its regular company-wide audits.
Amazon’s next play

Speculation is mounting that the online retail giant is deepening its push into vehicle sales (paywall). Those close to the scheme say it plans to expand its current trial into another major European market, possibly the UK. Meanwhile Spanish supermarket chain Dia plans to grow its partnership with the e-commerce heavyweight to bring its groceries to more cities in Spain.
Sustainable leaders
Coop Switzerland has been named the world’s most committed retailer in sustainable development in a study of 148 global retailers across one hundred criteria. German retailer Rewe has also been recognised for its focus on sustainability, receiving the NACS Sustainability Award for 2017.
Ferrero for innovation

The confectionary giant is opening its first Asian innovation centre, to be based in Singapore. The site will be home to several strategic innovation functions, including health and nutrition, new raw materials and research and development.
Yirendai ramps up

China’s largest peer-to-peer lending platform has plans to boost its profile with an expanded product offering, including wealth management, as it seeks to shrug off concerns about a regulation-induced slowdown of the sector.
Fashion forward

Recruitment activity for Uniqlo Vietnam has fuelled rumours the Japanese fast-fashion player is headed for the market. Affordable luxury brand ba&sh has made its Asian debut in Hong Kong while Chanel has opened a pop-up boutique in Singapore.