Global retail update

Spending spree

The Northern unit of the Aldi empire is upping the stakes again, with plans to spend more than EUR 5 billion overhauling stores around the world. This comes a month after Aldi Süd announced a multi-billion dollar plan to expand its US store base. Aldi North has nearly 5,000 stores across Europe.

Acquisitions get results

UK grocer Sainsbury’s is expected to report a sales recovery this quarter, helped along by a strong performance from recently acquired Argos. Meanwhile, fellow ‘big four’ Tesco wants the competition watchdog to fast-track its review into its planned takeover of food wholesaler Booker as it is impatient to begin ‘examining the merger’.

Digital plays

Danish supermarket giant Dansk Supermarked says it has doubled its product range on its online retail platform. German drugstore dm is testing a free click & collect service, with LZ Retailytics noting the motivation could be arch rival Rossman introducing its own version earlier this year.

Shutting shop

After eight years in Indonesia, all 7-Eleven stores in the country have closed due to ‘limited resources’. But franchise owner, PT Modern Internasional, is not calling it a day yet, saying they want to find someone to take on the franchise and restart the business.

IPO frenzy

Experts are predicting a rash of new technology IPOs in the coming year, especially by companies backed by Chinese tech giants Alibaba and Tencent. As a case in point, online-only insurer ZhongAn, which counts the two tech behemoths among its investors, has filed for an IPO worth up to US$ 1.5 billion.

Holding on tight

Meanwhile, Alibaba continues to do everything it can to keep Amazon out of the lucrative Chinese market. It plans to introduce a voice-controlled device to rival Amazon’s Echo, to support its e-commerce sites and further squeeze out its competitor.

Fresh thinking

New Zealand’s biggest supermarket co-operative, Foodstuffs North Island, plans to launch a new, smaller format chain in the country’s biggest city. Fresh Collective will launch in Auckland with a focus on fresh produce.

Feeling the pinch

Sporting retailers are feeling the squeeze with Nike’s pilot programme to sell directly through Amazon. Understandably fund managers say Amazon’s cross-category domination has forced a change in investment strategies including greater focus on stocks the e-commerce giant can’t conquer.

Technology upgrades

American grocer Albertsons is gearing up for battle (paywall) with plans to overhaul its e-commerce systems, spanning its 2,300 outlets. Meanwhile, regional supermarket operator Schnucks is jumping on the same-day delivery bandwagon, teaming up with Instacart.

Tumbling down

There have been widespread reports that an embattled Sears Holdings is unable to keep its Sears and Kmart stores from falling into disrepair with claims of rat infestations, collapsing shelves and unworkable toilets.

Drug store deal cancelled

Walgreens Boots Alliance is scrapping its nearly US$ 10 billion deal to acquire all of rival Rite Aid due to concerns by antitrust regulators. Instead, the former agreed to buy 2,186 Rite Aid stores for US$ 5.2 billion. Insiders identified five core points from the blockbuster agreement.

Lidl tackles top rivals

Prices at Lidl’s US stores during its opening week were running between up to 10% cheaper than at Walmart stores and 15% lower than Kroger stores but at parity with arch rival Aldi, a study by Deutsche Bank showed. The industry is watching closely how shoppers will respond and gears up for the battle.

Investing in winning formulas

Sobeys, Canada’s second largest supermarket chain, wants to become a ‘strong participant in e-commerce’ after the company posted weak Q4 results. Over in the US, Michigan-based retailer Meijer plans to roll out its successful small-format urban store to more cities.

Overseas expansions

Rapidly growing in its home country, French fresh produce specialist Grand Frais is now preparing to enter Italy, its second foreign market after neighbouring Belgium. Meanwhile, Australian DIY chain Bunnings doubles its efforts to expand in Britain and is set to open 20 stores instead of 10, creating 1,000 jobs.

Edeka supports start-ups

The German supermarket leader has launched an internet platform to seamlessly connect its independent shopkeepers with start-up supplier companies. LZ Retailytics argues it could help newcomers reduce bureaucratic hurdles, but also has some concerns.

Public listings ahead

The Brazilian unit of French retailer Carrefour has finally filed its IPO in Sao Paolo, which could see the group raise up to US$ 1.7 billion. Unlike US counterpart Blue Apron, Germany’s start-up Delivery Hero priced its market listing at the top of the range, hoping to pick up US$ 1.13 billion.

Don Quijote buys in Hawaii

Quinn Stores, parent company of Hawaiian supermarket chain Times, has announced that it has sold all 24 Hawaii-based supermarkets to Japanese retail group Don Quijote, which operates 354 discount retail and convenience stores internationally.

Carrefour grows in the Emirates

Majid Al Futtaim, the Dubai-based operator of French retailer Carrefour, has acquired 26 Géant hypermarket stores and 4 Gulfmart supermarkets in the Middle East from BMA International. The value of the deal was not disclosed. All 30 stores will be rebranded under the Carrefour banner.