For the first 12 years of its existence, JD’s business model has largely been based on retailing. But now the company is morphing into something quite different, explains Winston Cheng, president international, at JD. “For the next 12 years where we want to be is a technology company or technology focused. So the first 12 years as a retailer we were Gross Merchandise Volume-focused. The second 12 years is going to be about helping brands and retailers and others build their online presence, build their brands and have more efficient marketing,” Cheng told Inside Retail Asia.Source: insideretail.asia
Carrefour France to trial Darty franchise in-store
Following the signing of its purchasing agreement in December 2017, trade publication LSA has reported that Carrefour is looking to operate Darty franchises at two hypermarkets from September. Franchising the Darty brand, rather than operating concessions, will enable Carrefour to maintain more control of the areas, while creating a distinct area in-store for a part of its non-food offer.Source: retailanalysis.igd.com
China: City’super eyes more outlets on mainland
Hong Kong retail chain City’super, an operator of high-end supermarkets, plans to expand into China’s prosperous Yangtze River Delta outside Shanghai, banking on mainlanders’ increasing affluence and growing penchant for premium food products. President Thomas Woo said mainland Chinese shoppers appeared to be more free-spending on some products such as imported liquor than their Hong Kong counterparts, which boosted the retailer’s confidence to open more stores. “We felt that the potential on the mainland has yet to be tapped by City’super,” he told the South China Morning Post. “We don’t aim to expand across the mainland, but we are setting eyes on the affluent region of East China.”Source: scmp.com
Discounters: More to gain in Western Europe
There is no stopping the discounters: by 2021, the total sales area operated by discounters will exceed that of all hypermarkets across Europe, LZ Retailytics data shows. Despite an oversupply of grocery sales area in most major European markets, the discounters are planning to add another 10mn sq m to their store estates continent-wide by 2023. This increase is roughly equivalent to the current European footprint of French retail giant Carrefour. The discounters’ biggest absolute sales gains in the coming five years will be seen in Russia, thanks to the rapid expansion of the local operators. X5’s Pyaterochka will be the second-largest growth driver in absolute terms even at a European level – ahead of the two Aldis - with only Lidl making larger gains.Source: retailytics.com
Philippines: 7-Eleven hiked profit to P533mln in six months
Philippine Seven Corp., the local licensee of 7-Eleven convenience stores, posted a net income of P533mln in the first six months of 2018, up 19.4% from P446mln year-on-year, despite an increase in commodity prices following implementation of the government’s tax reform agenda. PSC, which operates the largest convenience store network in the country, said in a disclosure to the stock exchange retail sales of all stores totaled P22.2bln during the period, up 22.7% from a year ago. The higher sales were driven by the improvement in same-store sales and the 14% increase in the number of operating stores. Stores rose by 299 to end the period with 2,386.Source: manilastandard.net
Saudi Arabia: LuLu to launch new hypermarket in Riyadh
LuLu Hypermarket is all set to open its largest store in the Kingdom in Riyadh. The new hypermarket, which will open on Wednesday, marks LuLu’s 150th global milestone and its 13th branch in Saudi Arabia. It is located at Atyaf Mall in Yarmouk, and covers a total built-up area of over 220,000 square feet. LuLu Group Chairman and Managing Director, Yusuff Ali M.A. said he is proud to announce this launch that symbolizes “LuLu’s utmost growth over the decades of rendering a world-class shopping experience.”Source: arabnews.com
Strong quarterly revenue boosts shares of Brazil retailer GPA
Brazil’s GPA reported strong quarterly revenue growth, as robust sales in its wholesale stores offset the negative impact of a major truckers’ strike, sending shares up almost 5% in midday trading. The company, owned by France’s Casino Guichard Perrachon SA , said revenue climbed 10.4% from a year ago in the second quarter to 11.775bln reais ($3bln), driven by growth in its wholesale Assai stores. The figure was just below the mean estimate of analysts polled by Reuters for 12.2bln reais.Source: reuters.com
UK: Poundworld to cut a further 1,000 jobs as it closes 80 more stores
Administrators in charge of finding a buyer for the stricken Poundworld chain have announced a further 80 stores will close - at a cost of more than 1,000 jobs. The second wave of closures adds to 25 announced earlier this week, which will result in 242 staff at the chain being made redundant this weekend. Poundworld collapsed into administration last month after rescue talks with potential buyers failed, sparking fears for the jobs of its 5,000 staff at 335 shops.Source: theguardian.com
US: Convenience stores see sales rise in H1 2018
The National Association of Convenience Stores (NACS) has announced that sales in convenience stores in the US saw positive growth in the first half of 2018. The trade association, which represents the convenience retailing industry, polled 2,106 stores in determining its findings, and pointed out a few key factors behind the positive figures. An expanded offer in fresh and healthy food is part of the reason behind the growth, with 45% of the retailers polled citing health bars and 41% citing fruit and vegetables as the two biggest drivers in the sales rise.Source: esmmagazine.com
US: HelloFresh tops Blue Apron in customer satisfaction
HelloFresh scored another win against Blue Apron, topping its rival in customer satisfaction, according to YouGov BrandIndex. "New numbers from YouGov BrandIndex reveal that Germany’s HelloFresh has started to pull away from American rival Blue Apron," the survey found. The research firm asked respondents if they hold an overall positive or negative impression of a particular brand. Since January 2018, HelloFresh’s impression score climbed from 15 to 18. Blue Apron's has decreased from 15 to 13. In addition, HelloFresh’s satisfaction score recently reached a peak of 26 while Blue Apron has yet to hit a score of 18 this year. Earlier this year, HelloFresh said it had 1.2mln U.S. customers and confirmed previous reports that it has overtaken Blue Apron as the market share leader in America.Source: fooddive.com
Amazon celebrates more than 4,000 full-time employees in Wisconsin
Between 2014 and 2017, Amazon’s investments contributed more than $1bln into Wisconsin’s economy, indirectly creating 5,500 additional jobs on top of the 4,000 the company employs directly. This year, Amazon will celebrate its third year fulfilling customer orders from Wisconsin and surpassing the milestone of 4,000 full-time employees in the state with job opportunities for people with all types of experience, education and skill levels - from human resources, engineers and facilities technicians, to those seeking entry-level positions and looking for on-the-job training.Source: marketwatch.com