Global retail update

Amazon gets nod in India

A rmed with the government’s approval to retail food products in the country, the e-commerce giant can now potentially invest US$ 500 million in building a full-fledged grocery business. Existing online platforms such as BigBasket and Grofers are in for a challenge.

Focus on expansion in Europe

Spar International enters Cyprus through a partnership with the Ermes Group and will introduce its banner across the island next year. Over in Britain, Hong Kong conglomerate AS. Watson is set to open 30 more Superdrug stores, 45 Savers outlets and 13 The Perfume Shop sites, creating 1,000 jobs.

Targeting bargain hunters

With an increased focus on the grocery category on its main sites across Europe, Amazon started its third annual Prime Day. China, India and Mexico participate for the first time in the event, while US competitors are taking steps to steal some of the online giant’s thunder.

Pushing forward

Ahead of an expected move into Texas by rival Lidl, Aldi US intends to spend more than US$ 33 million on renovations in Houston and US$ 66 million on remodels in Dallas. Aldi started its operations in the Lone State in 2010 and has just opened its 100th store.

Termination talks

Abercrombie & Fitch has quit negotiations about a potential sale. The company was reportedly approached by several bidders. Meanwhile, J.C. Penney’s CFO Edward Record is ending its employment relationship with the company to “pursue other interests”.

Okey experiments

Following other hypermarket operators, the Russian big-box retailer is testing Scan&Go checkout solutions in one of its Moscow stores. It might be innovative, but in terms of strategy, LZ Retailytics considers it nothing more than a publicity stunt.

Dico TuoDì on offer

The family-owned Italian discount supermarket chain has been put up for sale, with a number of parties said to be interested. The decision comes after the business posted a loss and failed to sell 80 stores. The chain operates 400 stores with around 4,000 employees.

More partnerships

US online payment service start-up Stripe has teamed up with Chinese digital payment providers Alipay and WeChat Pay to allow overseas merchants using its platform, and in Japan, Seven & i Holdings and mail-order office equipment supplier Askul Corp announced a tie-up between their online businesses.

Australian activities

Wholesaler Metcash has appointed former Tesco executive Jeff Adams as its next CEO, succeeding Ian Morrice. Meanwhile, Aldi is investigating “with utmost urgency” reports that kitchen taps it sold last month were contaminated with lead.

Full steam ahead

Despite a saturated market in the UK, German discounter Lidl has revealed ambitious plans to open at least one new store every week, as the chain looks to double its rate of expansion. Irish grocer Musgraves says it’s ready for the onslaught of competition from German discounters Lidl and Aldi.

Going public

Italian grocer Esselunga plans to be listed on the Milan stock exchange. LZ Retailytics says the added capital would allow the company to make a giant leap towards its dream of national coverage. Just last week, Corriere della Sera (in Italian) reported that the company’s market value could be around EUR 7 billion – ten times its operating margin.

Changing direction

There are reports that Russian retailers including Magnit and Lenta are considering entry into the wholesale space (paywall). Tesco offshoot One Stop is re-launching its own label range as it looks to offer greater choice for customers and better margins.

Size matters

Amazon used its deep pockets and brand to edge out other potential suitors in its acquisition of Whole Foods. Previously undisclosed details show six other interested parties were outmanoeuvred by the e-commerce giant. Meanwhile, the world’s biggest producer of mobile phone chips, Qualcomm, wants the sale of some iPhones to be blocked over its patent stoush with Apple.

Highs and lows

Costco has bucked the industry trend and posted sales exceeding analysts’ estimates to send its shares soaring. The wholesaler shrugged off widespread concerns about the Amazon-Whole Foods purchase to outpace its big box rivals. It was a different story for struggling retailer Sears, who announced plans to close another 43 stores, sending its shares tumbling further.

For convenience’s sake

Warehouse club chain Sam’s Club is testing a delivery programme focused on convenience. The pilot, which will be run in Dallas, allows business customers to order online and choose how they receive their goods – including next day delivery and in-store pickups.

Spotlight on Thailand

E-commerce behemoth Alibaba is set to build a major e-commerce park for its logistics operations in the burgeoning Asean region, while travel site TripAdvisor China has partnered with five retail groups to enhance the shopping experience for Chinese tourists in Bangkok.

Taiwan gets Apple

The tech leader continues to target the lucrative Asian market, opening its first store in Taipei over the weekend. Like most Apple events, the store opened to much fanfare with eager shoppers waiting as long as 68 hours. The iPhone maker holds over 15% of the market share in the country.