RETAIL NEWS FLASH June 16, 2014
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 6 Technology ............................................................................................................................ 9 Strategy .............................................................................................................................. 13
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Sales & Marketing NETTO Cools Overseas Expansion for now June 13, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/89116 Dansk Supermarked discount banner Netto has disclosed it will open fewer stores abroad this year than previously forecasted. Netto President, Claus Juel-Jensen, told Dansk Handelsblad that the reason for the slowdown was increased competition in all its markets and diminishing availability of good locations. Therefore, in 2014 the retailer aims to find 30-40 good overseas locations that are sure to contribute positive numbers. Dansk Supermarked’s ongoing ambition in the long run is to double its number of Netto stores in Poland, Germany and Sweden from around 800 to 1,600. As the retailer has previously announced, it will only open around 7-8 stores in its home market this year and domestic expansion is expected to remain marginal for the next years. In Poland, where Netto has invested the most in new stores in the last years, Lidl and Biedronka are expanding aggressively, which naturally influences Netto’s plans there. Lidl also poses a threat in Sweden, as it seems to be stepping up its ambitions after some years of inertia. In Germany, there were fewer discount stores in 2013 than in the year before. However, Netto is only active in the northern and north-eastern regions of the country which, judging by Juel-Jensen’s comments, is something unlikely to change any time soon.
Asda to Trial New Sales Format in its Stores June 13, 2014 | Yorkshire Post http://www.yorkshirepost.co.uk/business/business-news/asda-to-trial-new-sales-format-in-itsstores-1-6663073 ASDA is to trial a new store format focusing on fresh food, homeware, health and baby with a reduced emphasis on goods that sell well online. The trial, which will take place in three stores in Grantham, Coventry and Colney, will see the removal of white goods, electricals and other products which are popular online in order to make more space for goods that sell well in stores. Asda’s CEO Andy Clarke said that if the store trial works, the Leeds-based group will renew its estate based on the new format. “We are reviewing our large store portfolio and are trialling a new proposition that will land by the end of the year. We’ll open three stores in the last quarter of this year,” he said. “There are clear areas of our business which are switching to online, such as white goods and electricals. We are leading on ‘Click and Collect’ whether it’s from a locker or a van. We are changing the space in stores.
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Retailers are having to adapt to cater for the massive increase in demand for online shopping. While customers still want to go into stores to choose their fresh fruit, vegetables and meat, they prefer to shop online for mobile phones, laptops, tablets, fridges, hoovers and other big, heavy goods.
Alibaba’s US Launch Threatens Amazon, eBay June 11, 2014 | Fierce Retail http://www.fierceretail.com/retailit/story/alibabas-us-launch-threatens-amazon-ebay/2014-0611 Chinese e-commerce giant Alibaba Group officially launched its 11 Main U.S. retail site this week, threatening eBay, Amazon, Etsy and other online sellers. 11 Main, inspired by America’s “Main Street” shopping experience, retails products from smaller suppliers, giving it the feel of a collection of small boutiques rather than an online warehouse such as Amazon. Its selection spans a wide variety of categories, including home, fashion, baby, art, jewelry and crafts. While the site may have a smaller feel, it will definitely become a big competitor of established U.S. online retailers. Alibaba is the biggest online retailer in China, and is prepping to raise a jaw-dropping $15 billion in a U.S.-based IPO — the most since Facebook’s IPO in 2012. “We’re focused on building a compelling platform and are extremely pleased with the reception from our merchant partners thus far,” an 11 Main spokeswoman said after the site was announced last year. While 11 Main will take time to build mass, it will likely be successful, industry observers say. “From our experience, sellers welcome alternatives to the mainstay marketplace players, so Alibaba can be in a solid position to capture some of this demand,” Eric Best, chairman and CEO of Mercent, a company that helps merchants list their products and sell on marketplaces, told Internet Retailer. However, Alibaba’s stance is that 11 Main is different from mainstream e-tailers and brick-andmortar mass merchants, because the site plans to sell hard-to-find, unique goods that shoppers can’t typically find at more generic outlets. And that will likely be a boon for antique dealers, art dealers and those who sell similar rare products.
Amazon to Add Local Services; Battles with Time Warner June 11, 2014 | Fierce Retail http://www.fierceretail.com/story/amazon-add-local-services-battles-time-warner/2014-06-11 Amazon plans to dive into local services, launching a marketplace to connect businesses and consumers who need services, such as kitchen remodels and vocal lessons. Amazon plans to roll out local services on a city-by-city basis later this year, similar to how it is handling its AmazonFresh rollout.
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However, Amazon is not the first online retailer to get into the multibillion dollar local services industry. Last year, eBay began testing a new product called eBay Hire, which places the profiles of service professionals next to associated products that consumers may be shopping for on its website. For example, a person buying golf clubs on eBay may see ads or links referring them to a local golf teacher who’s signed up with the eBay Hire platform. Other players in the local services space include Thumbtack, which allows professionals to bid on jobs that consumers post, Angie’s List and Yelp.
EBAY Unveils Designer Shops June 11, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/89074 E-commerce giant eBay has launched a new online shop department, called Designer Collective, a current-season, full-price shopping destination with 16 American-based brands sold at full price. Brands listed include Calvin Klein, Rebecca Minkoff and Nicole Miller. Through this launch, eBay is trying to further dispel the notion that its business model is an auctiononly site. Brands now use eBay as an extension of their own e-commerce businesses, with more than 70% of what’s available to eBay’s 145 million customers being new inventory sold at a fixed price. At present, orders will only be sent domestically (US) but international shipping will follow later this year. “Designer Collective fits our philosophy as a partner brands, and not a competitor,” said Devin Wenig, President of eBay Marketplaces.\
YUM! BRANDS explores another food avenue June 05, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/89026 Yum! Brands is to open an Asian sandwich shop in Dallas, reports Business Insider. The restaurant, called Banh Shop, will sell Vietnamese banh mi sandwiches, which typically consist of pickled vegetables and meat on a crispy French baguette. The restaurant is to be located near the Southern Methodist University campus. This latest new concept joins several other innovative operations the company has introduced this year. Super Chix, a more premium chicken establishment, was introduced in Arlington, TX, and the company is to introduce an upscale taco chain - Taco Co - later this summer in Huntington Beach, CA. Yum! Brands are experimenting with new restaurant concepts to seek previously untapped consumer segments to its operations, as customer traffic has been showing steady declines at most of its banners. Trialling an array of concepts such as these provides the company with several potential options as the restaurants offer something that could appeal to all. The Banh Shop has potential for growth as Vietnamese food is becoming increasingly popular in the US and has yet to be mass-commercialized in comparison to US or Mexican-style food.
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Finance EUROCASH Makes Major C-Store Move June 13, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/89113 Polish retailer Eurocash has announced a preliminary agreement to acquire Inmedio convenience stores from HDS Polska, a company owned by French operator Lagardère. A subsidiary of Eurocash – Eurocash Convenience – has also signed a franchise agreement with HDS Polska for its 1 Minute convenience stores. If the acquisition is approved, Eurocash will operate 410 c-stores across Poland, most of these located in shopping centres. Inmedio’s operational management will continue to be handled by HDS, drawing on its experience in the business since 1998. Inmedio shops offer FMCG products including press & books, cigarettes and impulse products. Bill payment, cash transfer and courier services are offered in selected locations. Inmedio generated over PLN500 million (USD158 million) in sales and PLN15.6 million (USD4.9 million) in EBITDA in 2013. Eurocash will also develop the 1 Minute c-store chain, with a network of 70 stores in Poland. 1 Minute offers a wide product assortment, from groceries and beverages, alcohol, bakeries, newspapers, cigarettes, batteries, confectionery and ice cream, to fast food, coffee and tea. In addition, the stores offer pre-paid phone top-ups, Lotto and bill payment services. The franchise agreement will allow Eurocash flexibility for rapid expansion.
TOYS ‘R’ US takes Q1 turnaround hit June 13, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/89107 Toys ‘R’ Us has reported an increased net loss in its fiscal first quarter of USD196 million against a loss of USD111 million in the same period of 2013. This was attributed by the company to a decrease in income tax benefit and rising expenses. Total sales for the quarter rose 2.9% at the toys and kids retailer to USD2.5 billion from the same quarter in 2013. US same-store sales were up 4% while sales at international stores rose 1%. General and administrative expenses rose to USD917 million from USD886 million in the prior year. The increased costs included an additional USD8 million in professional fees and USD7 million in payroll expenses connected to the company’s turnaround plan. Gross margin as percentage of net sales was down to 37%, attributed primarily to the company’s promotional efforts and competitive pricing strategy. Antonio Urcelay, Chairman & CEO, said: “‘Certain upfront costs’ increased operating expenses, but that we believe these short-term costs will benefit the business in the long term.”
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Charges drag down NEIMAN MARCUS numbers June 13, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/89105 Neiman Marcus, the US luxury department store operator, has reported a net loss of USD2.67 million for its third quarter ended 3 May. This compares to net earnings of USD70.8 million in the prior year. The company blamed continuing charges from inventory-related accounting as well as transaction costs related to the Ares takeover last September as being partially responsible for the loss. That aside, the business showed a reasonably healthy aspect over the quarter. Sales increased to USD1.16 billion from USD1.10 billion in Q3 last year. Comparable sales improved 5.9%. Stores posted a 4.2% increase in sales while online sales increased 11.7% to USD271 million. Neiman Marcus plans to spend more than USD165 million on technologies and store remodelling, which is roughly similar capex as last year. Karen Katz, CEO, said: “We’re fortunate that our new owners are focused on investing in our existing stores with an eye towards long-term growth.”
HOME RETAIL GROUP still showing well June 12, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/89098 Home Retail Group (HRG) has today published its first-quarter results for the 13 weeks to 31 May. Total sales at Argos grew 4.8% to GBP868 million (USD1.4 billion). Although the store portfolio remained unchanged at 734, net space closed reduced overall sales by 0.1% in the quarter. Like-forlike sales at Argos increased 4.9% during the period. Growth was driven by a strong performance in seasonal products, together with continued sales growth in electrical products, specifically video gaming hardware and TVs. Online sales grew in line with total company sales and represented 42% of total Argos sales. Within this, m-commerce grew 56% to represent 21% of total Argos sales. HRG DIY arm Homebase total sales grew 5.5% to GBP445 million (USD740 million). Net space closed reduced sales 2.4%, with a net reduction of one store, bringing the store portfolio to 322. Like-forlike sales increased 7.9%, pushed by seasonal product sales, amounting to 40% of total sales in the period. These figures benefited from better weather conditions in comparison to the first quarter of 2013. There was also growth in sales of big-ticket items, while sales for the remaining categories were slightly lower overall. These are a positive set of numbers, considering that Home Retail Group largely focuses on the sale of predominantly discretionary non-food products. Moves to close unnecessary space will increase sales densities, floor space productivity and in the long-run profitability.
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IPO will boost B&M growth goals June 12, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/89100 UK discount variety retailer B&M has launched an IPO on London’s Stock Exchange, reports Retail Week. The flotation values the business at GBP2.7 billion (USD4.5 billion). In terms of market capitalisation, this puts B&M ahead of established names such as Home Retail Group, Dixons Retail and Ocado. B&M are seeking to raise GBP1.08 billion (USD1.80 billion), of which the retailer will receive GBP75 million (USD124 million) with the remaining amount going to selling shareholders the Arora family – Founders of the B&M business - and US private equity firm Clayton, Dubilier & Rice, which purchased 60% of the business in December 2012. The company has made no secret of its desire for expansion, stating a goal of 800 stores at a runrate of 50 per year as recently as May. It has also taken a majority stake in German GM discounter JA Woll as it seeks growth beyond its UK base.
SAINSBURY’S declines are no disaster June 11, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/89088 Sainsbury’s has reported a decline in like-for-like sales of 1.1% excluding fuel in the first quarter (12 weeks to 7 June 2014). Total sales rose 1% (excluding fuel) and fell 0.3% (including fuel). Sainsbury’s opened 27 new convenience stores and refurbished a further 12 in the quarter. The company also opened one supermarket extension, and refurbished three supermarkets. It remains on track to deliver around two new convenience stores per week and around 750,000 square feet (70,000 square metres) of new space this year. Sales at Sainsbury’s convenience and online arms grew strongly – up 18% and 10% respectively. The general merchandise and clothing businesses continued to grow strongly in the quarter with clothing in particular performing well delivering double-digit like-for-like sales growth. The own brand Taste the Difference range performed strongly, with sales up nearly 10%. Sainsbury’s also successfully completed the trial of their first instore scratch bakery in a convenience store.
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Technology STARBUCKS takes charging mats US-wide June 13, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/89109 Starbucks and Duracell Powermat have announced the roll-out of wireless phone chargers across the US, reports USA Today. Duracell, which makes the wireless charging stations, will install more than 100,000 charging stations (approximately 12 per store) over the next three years. The coffee chain has been testing the technology since a first trial in Boston in late 2012. Last year, it widened the trial to several locations in California’s Silicon Valley. San Francisco will be the first city to see the full roll-out. Starbucks aims to install a wireless charger in every one of its city’s stores by year-end, followed by other major markets next year and finally the rest of its national branches, which will all have them by the end of 2016. Once again Starbucks takes another step in staying ahead when it comes to instore technology. Starbucks is constantly evolving its technology offerings and appealing to tech-savvy, young consumers. Consumers will be able to set their cellphones down on designated spots on their table top, and their phone’s batteries will charge as they eat, drink, read or chat. This is a clever strategic move by the company, which will encourage consumers to stay around and buy that extra cup of coffee.
DANSK SUPERMARKED adopts mobile wallet June 12, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/89097 Dansk Supermarked has become the first big Danish grocery retailer to offer shoppers a mobile wallet payment option. Danske Bank’s MobilePay solution is initially to be used in all seven of Dansk Supermarked’s instore Starbucks outlets, but the eventual ambition is to also allow shoppers to pay through the app-based service in all its stores in the future. Unlike some similar services which utilise NFC or QR-codes, MobilePay transfers money by keying in a mobile phone number linked to a bank account. More than 1.4 million Danes have downloaded the app, providing Dansk Supermarked with a steady user base. As the roll-out involves no major investment and the solution is cheap and easy to use, it makes sense for the retailer to trial it, regardless of whether shopper acceptance turns out to be low or not. A myriad of mobile wallet solutions exist today and tech giants like Google and Apple are widely expected to battle to become the preferred global choice. Dansk Supermarked will surely examine all the alternatives while learning the ropes in partnership with Danske Bank.
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AMAZON streaming sounds soon June 12, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/89099 Amazon is to launch its much-anticipated music streaming service soon, the New York Times reports. The new feature will grant Amazon Prime subscribers access to thousands of songs free without commercial interruption. Amazon is adding the streaming feature principally as a sweetener for Prime customers. The new music feature will offer a wide, but limited, selection of titles, and for the most part will not include current hits.
Amazon expands payments, PayPal founder launches Affirm Split Pay June 10, 2014 | Fierce Retail http://www.fierceretail.com/story/amazon-expands-payments-paypal-founder-launches-affirmsplit-pay/2014-06-09 Online payments are heating up as Amazon launches a PayPal competitor and a PayPal co-founder readies a new payment strategy. Amazon will now manage payments for subscription services, allowing customers to pay bills for things like streaming music services with credit card information stored in Amazon’s system. The program supports payments to start-ups and other companies, and lets users set up re-occurring payments, according to Reuters. The roughly 240 million Amazon shoppers with stored credit card info will now be able to click the new payment button and have their accounts automatically debited. Amazon has been testing the program with start-ups including Ting, a mobile phone company. Shoppers who used recurring payments by Amazon spent 30 percent more on Ting’s website, said product manager Justen Burdette. The service takes direct aim at PayPal, which has long let users pay monthly bills over its platform. But PayPal co-founder Max Levchin is countering with a new payments service. Levchin has assembled a team of PayPal alumni to create Affirm, a new payments program that lets consumers split purchases into smaller monthly payments. It’s a financing solution for small business owners and shoppers alike. The startup is a financial services business called Affirm Split Pay. Affirm assumes the risk of credit, making full payment to accepting merchants and charging interest and merchant fees. Shoppers can apply for financing directly from the merchant’s site and, once approved, will see the total purchase split into monthly payments. Levchin co-founded payments company PayPal, now part of eBay, and game maker Slide. He has raised $45 million in venture capital for the initiative.
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WALMART to expand dotcom DCs June 09, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/89051 In the run-up to its annual shareholders meeting held 6 June, Walmart has announced it will add a third e-commerce fulfillment center in Indianapolis, IN later this year. The company currently operates two facilities dedicated solely to e-commerce fulfillment: an 800,000 square feet (74,300 square meter) facility in Texas opened in late 2013 and a one million square feet (93,000 square meter) Pennsylvania center opened earlier this year. Once all three facilities are operational, the retailer says it will be able to fill online orders in two days or less using ground transportation. Walmart President & CEO of Global E-Commerce Neil Ashe suggests the company will add “a handful” of additional e-commerce fulfillment centers in the US in its quest to keep pace with online giant Amazon, which currently has 37 DCs across the US and Canada. Walmart plans to analyze data from online orders to determine possible future locations. The retailer anticipates global dotcom sales will reach USD13 billion this year, up 30% from an estimated USD10 billion last year. It has a lot of ground to make up as it chases Amazon. Planet Retail forecasts Amazon’s global banner sales to top USD98 billion this year.
CASINO enters African e-commerce June 04, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/89006 Casino and Bolloré Groups have signed a strategic partnership to launch an e-commerce operation in Africa. The move is the latest step as Casino bids to become a key global e-commerce player. Its online division is raising capital via an IPO, while the Cdiscount banner was rolled out earlier this year in South-East Asia and Colombia. Now it is to enter Ivory Coast as early as this summer. Cdiscount Africa is likely to be limited to urban areas, and in Ivory Coast coverage will primarily focus on the capital city of Abidjan. We anticipate lower volumes than in other regions and the high penetration of mobile phone usage in the country means a mobile-enabled website will be essential for Casino. The choice of Ivory Coast was probably triggered by a cultural proximity to France and its central position in the Francophone West Africa region. Given the constraints prevailing in African operations, retailers will often rely on a local partner to handle the operational aspect of the operations. Such is the case with Carrefour and CFAO Group, who plan to enter Ivory Coast in 2015. It is understood that Bolloré Africa Logistics will handle all administrative, custom clearance, transport and storage of the goods.
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Online aims at RELIANCE RETAIL June 02, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88971 Reliance Retail is preparing to launch multi-channel retail operations, integrating the company’s physical stores with an e-commerce portal. The Reliance Retail team is currently working on the model and the company is looking to launch it this year. While Reliance already operates e-commerce portals for some of its international fashion brands as well as a website for its consumer electronics business, this is the first time the company has exploring online for its multi-format operations, covering everything from Reliance Mart hypermarket to various supermarket and neighbourhood store banners to and speciality chains like jewellers and Hamleys toy stores. These areas of operation accounted for nearly 90% of revenues in FY 2014. Reliance’s plans come as e-commerce portal Flipkart has hit the USD1 billion (INR60 billion) mark in gross merchandise value while rival Snapdeal is looking to achieve the target this year. Reliance Industries, parent company of Reliance Retail, clearly indicated its long-term aims annual report for FY14, saying: “The potential of e-commerce, combined with the network of physical store locations will offer tremendous choice and convenience at a great value to the consumer.”
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Strategy Alibaba ties up with China Post to strengthen its logistics June 13, 2014 | Economic Times http://articles.economictimes.indiatimes.com/2014-06-13/news/50564466_1_jack-ma-ecommerce-giant-alibaba-singapore-post-ltd China’s e-commerce giant Alibaba has signed a deal with the state-owned China Post, the largest postal service provider here to strengthen its logistics arm in a series of deals before a planned US listing. Alibaba founder and chairman Jack Ma and China Post’s general manager Li Guohua inked a framework deal yesterday with an ambition of delivering online purchases to any place in the country within 24 hours. The two companies will share warehouses, processing centres and delivery resources, aiming to build a smart logistics network providing easier and faster delivery services to online sellers, state-run Xinhua news agency reported. In possession of e-commerce big data and Internet technology, Alibaba hopes to extend its reach to third and fourth-tier cities and even the countryside with the help of China Post’s offices in rural areas. The two parties are yet to reveal details of the deal. As parent company of China’s largest consumerto-consumer portal Taobao.com, Alibaba has great need for delivering online purchases. Ma founded the Rookie Network Technology Co Ltd last May to start Alibaba’s own logistics services. Rookie has attracted investment from major delivery companies including Shentong Express, ZTO Express and YTO Express. As Alibaba is set to sell shares in the US equity market, the company is actively expanding its business outside China to boost its international profile. Last month, Alibaba spent US $ 249 million on a 10.35 per cent stake in Singapore Post Ltd, a leading provider of e-commerce logistics services in southeast Asia. Yesterday’s deal also illustrated Ma’s global ambition as Alibaba is considering international deliveries through China Post’s global logistics network. For China Post, the deal is expected to revitalise its delivery business. Although it has more than 100,000 offices across the nation and dominates in deliveries of post like confidential files, the company is challenged by rapidly expanding private express firms with cheaper and faster services.
KROGER plans new Atlanta DC June 13, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/89104 Kroger plans to build a new distribution centre in suburban Atlanta, US Trade Voice reports. For the new USD250 million facility – which is planned to go live by September 2015 - the retailer is teaming up with third party logistics provider ES3.
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Kroger will take more than one million square feet (92,900 square metres) of the redevelopment of former US Army base Fort Gillem. Around 700,000 square feet (65,000 square metres) will be used by ES3. So far, Kroger operates 36 distribution centres across the country of which several are highly automated. At present, it is not known whether the new facility will feature warehouse automation technology as well.
Flipkart launches paid subscription service, Flipkart First June 12, 2014 | Economic Times http://articles.economictimes.indiatimes.com/2014-05-07/news/49689512_1_subscriptionservice-binny-bansal-new-users Online retailing giant Flipkart has launched an annual membership fee-based service for its customers.Flipkart First is aimed at rewarding registered shoppers, which the company claims are about 18 million for the portal, as well as getting new ones on board. With the US $ 3 billion Indian e-commerce market poised to register double digit growth, analysts are of the view that companies are looking at innovative ways of not just adding new users from smaller parts of the country but also retaining existing shoppers. “Our growth is, partly, due to our innovations. In the past few years, we have led the supply-chain innovation and today’s launch is a part of this journey. We are also looking at those Internet users who hit e-commerce portals often to shop,” Flipkart co-founder Binny Bansal told PTI. While the company did not disclose the subscription fee, it will offer the service free to 75,000 randomly selected customers for a period of three months. Bansal, who is also the COO at Flipkart, said customers in India are maturing and looking at value over cost and such services will push the ecosystem to another level. “We are the first in India to offer such a service. Members will be entitled to a host of exclusive benefits as well as priority service. They will always come first,” he added. The services include free shipping for all orders, free ‘In-a-Day Guarantee Delivery’, same day guarantee delivery at a discounted price, 60-day replacement policy, priority service from customer support and a host of other benefits to be added soon, Flipkart VP (Marketing) Ravi Vora said. “If we look at online shopping in the last 12 months, about 16-20 million users have shopped online. Of this, while regular shoppers are about 20-30 per cent, the remaining are still experimenting with this medium,” Vora added.
MARKS & SPENCER considers China choices June 11, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/89080 Marks & Spencer, the UK-based retailer, is seeking a partner in Greater China as part of its expansion strategy for the region. The retailer is expected to close up to five stores in tier 2 and tier 3 mainland cities while opening new stores in Beijing and Guangzhou, The Standard reports.
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Stephen Rayfield, M&S MD Greater China, declined to comment on the company’s strategy or the opening and closings, but said: “The aim is to work with a strong partner with excellent local experience and expertise and accelerate growth across China.” M&S is focused on driving growth in Asia in general with particular priority shown to the India, China and Hong Kong markets. It may even follow in Tesco’s footsteps by forming a joint venture for expansion in China.
CARREFOUR reportedly to enter Kenya June 10, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/89068 Carrefour is reportedly planning to enter Kenya via franchise, Reuters reports. The first store is to open in Nairobi’s Two Rivers Mall, which is being built in a suburb of the Kenyan capital as a flagship property project of Centum Investment. “We are on track to hand over the mall to Carrefour in March of next year,” the developer’s Chief Executive James Mworia told investors. Kenya is the economic hub of east Africa, one of the top three sub-Saharan markets. While infrastructure is of a good standard compared to the region as a whole, the market will not be appropriate for hypermarket openings on any kind of scale. The Kenyan market is dominated by established local players, such as Nakumatt, something which has discouraged the region’s biggest player, Shoprite, from entering so far. As a consequence, Planet Retail does not see this as presaging any major incursion by Carrefour, but more perhaps as a flagship outpost aimed at affluent Kenyans. Global rival Walmart has been eyeing Kenya for some while. As recently as 2012, the US-based company announced an intention to enter Kenya organically via its Game variety stores format. Last year, its African subsidiary Massmart tried toacquire a majority stake in Kenya’s Naivas supermarkets. This latest move is part of Carrefour’s strategy to be at the forefront in Africa, either via joint ventures or through franchise operations. Carrefour is already planning on entering a number of countries in Western and Central Africa with CFAO over the next years. Carrefour did not wish to confirm the reports when contacted by Planet Retail.
Sainsbury’s to take its Tu Clothing Range Online June 09, 2014 | Internet Retailing http://internetretailing.net/2014/06/sainsburys-to-take-its-tu-clothing-range-online/ Sainsbury’s to sell its Tu clothing range online in a pilot that launches in August. The announcement comes as BRC figures show consumers are now spending more money buying clothes over the internet. Invited Midlands customers will be the first to have the chance to buy women’s, men’s and children’s clothing through a bespoke website, where they will be able to choose between home delivery and click and collect in store.
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Orders will be fulfilled from Sainsbury’s Bedford clothing depot, which also serves the 400 stores that sell the range. The launch follows recent investment in the range that has seen the Tu design team double and the brand relaunched. “Now’s the right time to explore the online channel as a complement to our store business,” said James Brown, Sainsbury’s non-food trading director. Robbie Feather, online director, said: “Our customers want to shop with us through a range of chanels that allow them to shop whenever and wherever they want and they’ve been asking us to extend our online service to our clothing. The pilot will allow us to work with a group of customers to build the right customer experience.” The launch comes days after Sainsbury’s also said it would launch Click & Collect at seven London Underground stations. The service will be free when it launches in July and August, before rising to £1.99 per collection.
FLIPKART seeks merchant mix June 09, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/89053 Indian e-tailer Flipkart is planning to launch new categories under its marketplace business. It is also seeking to accelerate the rate it adds merchants to the site as it looks to diversify its seller base and reach more shoppers. Since shifting to the marketplace model in February 2013 from previously selling company-owned inventory, India’s largest e-commerce firm has added more than 3,000 merchants to its site. The etailer plans to have 10,000 sellers using its platform by the end of 2014/15. Flipkart, which has sellers in categories such as books and electronics, is launching home and kitchen products on its marketplace platform and plans to sign on suitable merchants for other categories this year, a company executive said.
‘Competitive’ Tesco fights back on price with new ad blitz June 05, 2014 | The Grocer http://www.thegrocer.co.uk/companies/supermarkets/tesco/competitive-tesco-fights-back-onprice-with-new-ad-blitz/358142.article Tesco is to step up print and TV advertising campaigns in support of its recent UK price reduction programme, The Grocer reports. “ [This is] to make sure customers know these are genuine price cuts and they are not gimmicks anymore”, said Tesco CEO, Philip Clarke. The latest TV spot was put together by agency TAG and aired terrestrial channels this week. Tesco will continue its policy of reducing short-term promotions and targeting investment into campaigns such as Clubcard Fuel Save. The recent price reductions across everyday items have led to an average volume sales increase of 28%.
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Investing in marketing campaigns to support price cuts suggest these are, in fact, genuine. The move should help improve Tesco’s price positioning and perception among shoppers.
Target leads m-commerce growth June 06, 2014 | Fierce Retail http://www.fierceretail.com/story/target-leads-m-commerce-growth/2014-06-06 While Target loudly defends its actions in last year’s data breach fiasco, the retail giant quietly continues to gain mobile shoppers. Target’s mobile coupon-clipping app, Cartwheel, leads all other major retailers in terms of time shoppers spend browsing and buying on mobile apps. The amount of time shoppers spent browsing and shopping Target via mobile devices rose 251 percent in March to nearly 100,000,000 hours compared to a year earlier, according to new data from comScore. Consumers spent 76 percent of their time on Target’s mobile shopping app and Cartwheel, and the remainder spent time shopping on Target.com, according to new data from comScore. However, for Walmart, Macy’s and Sears, consumers spent much more time on the retailers’ websites than on their mobile apps. “If you’re not occupying that valuable real estate on people’s home screen with an app, you’re potentially putting your business at risk,” Andrew Lipsman, comScore’s VP of marketing and insights, told Fortune. “People will gravitate to eBay and Amazon’s apps if others don’t have good ones.” Target’s m-commerce traffic growth mimics the growth of mobile retail traffic as a whole. Twenty-six retailers generated $375 million in sales from smartphones and tablets in May, a 111 percent increase for smartphones, according to m-commerce technology provider Branding Brand.
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