Tag: Retailer

  • Woolworths Heads First in Taking on Kaufland

    Woolworths Heads First in Taking on Kaufland

    Woolworths and Aldi have increased their share in Australia’s grocery market, while Coles and IGA have slipped slightly, according to the latest research from Roy Morgan.

    Woolworths remains Australia’s top grocery retailer, increasing its share of the market to 34 per cent in 2018, up 1.4ppts, while a newly independent Coles now has a share of 27.6 per cent of the total grocery market, down 1.6ppts on a year ago.

    Aldi grew its grocery market share to 11.4 per cent in 2018, up 0.5ppts from a year ago, while Other Supermarkets outside the ‘big four’ such as Foodland and Foodworks have increased their share to 9.1 per cent, up 1.2ppts. IGA’s grocery share was down 0.4ppts to 7.1 per cent.

    Woolworths’ dominance in key fresh food categories has helped its strong lead. The retailer holds the largest market share in dollar terms for fresh meat, fresh deli, fresh bread and fresh fruit and vegetables ahead of Coles, Aldi and IGA supermarkets. The big two currently dominate Australia’s fresh food markets holding over 50 per cent of each of the fresh food markets.

    Michele Levine, Roy Morgan CEO, said Woolworths’ impressive performance places it in a strong position to deal with the entry of German hypermarket Kaufland into Australia’s more than $100 billion grocery market.

    “The demerger of Coles Group from industrial conglomerate Wesfarmers in the December quarter of 2018 means Australia’s second largest supermarket chain now has the opportunity to refocus on its core business ahead of the imminent arrival of German retailer Kaufland,” Levine said.

    Kaufland is following in the footsteps of fellow German retailer Aldi with plans to open six hypermarkets in Victoria over the next two years and more stores Australia-wide in the future.

    Levine also expects the anticipated rollout of ‘Amazon Fresh’ in the Australian grocery market in the near future to further disrupt the market. The online retail giant launched a food and grocery segment (excluding fresh food) late last year.

  • Walmart partners with Google for voice shopping

    Walmart partners with Google for voice shopping

    US retail giant Walmart and tech company Google have collaborated on voice technology to assist customers with grocery shopping.

    Starting this month, Walmart Voice Order will allow consumers to order groceries through Google Assistant by saying, “Hey Google, talk to Walmart”.  Google Assistant will then follow the orders directly and add grocery items to their Walmart Grocery cart.

    “We continue to innovate for the future and look to technology to make great services even better in the future. Introducing: Walmart Voice Order,” said Tom Ward, senior vice president, Digital Operations, Walmart US.

    “With the new voice ordering capabilities we’re building across platforms with partners like Google, we’re helping customers simply say the word to have Walmart help them shop … literally.”

    “Best of all, customers can be extra confident that we can quickly and accurately identify the items they are asking for with the help of information from their prior purchases with us. The more you use it, the better we’ll get,” added Ward.

    When shoppers say “add milk to my cart,” the Google Assistant will add the specific milk brand the customer usually buys, meaning there is no need to continually repeat the brand, volume and whether it’s a low fat or whole milk.

    Shoppers can use Walmart Voice Order on Smart Displays like Google Home Hub, Android phones, iPhones, watches, etc.

    “We know when using voice technology, customers like to add items to their cart one at a time over a few days – not complete their shopping for the week all at once. So, this capability aligns with the way customers shop. We can’t wait to hear what they think about it and how it’s making shopping easier for them,” Ward explained.

    Walmart, Amazon competes in the US grocery sector

    Walmart’s latest move comes in light of Amazon’s plans to slash prices at Whole Foods Market and to give major discounts to Amazon Prime members. Amazon also offers voice-activated shopping using its own Alexa-enabled devices, which dominates the US smart speaker market, with 67 per cent market share in 2018.

    “We still don’t see a lot of people shopping and buying with smart speakers yet, but this may change if more lower-cost models begin to incorporate screens. We’re also likely to see people doing more things with their voice assistants as they find their way into cars and other home-based devices,” said analyst Victoria Petrock.

    There are still a minimum number of shoppers who are using speakers to shop. Voice commerce in 2018 accounted for approximately 0.4 per cent of US e-commerce sales. Analysts expect it to increase in the next few years.

  • Newly revamped Sunshine Plaza To Welcome Retailers Again

    Newly revamped Sunshine Plaza To Welcome Retailers Again

    A number of retailers have opened their first stores in Queensland at the newly revamped Sunshine Plaza, which this week celebrated the completion of its $440 million redevelopment.

    The centre’s redevelopment has added over 34,000sqm of additional retail space, expanding it from 73,000sqm to over 107,000sqm.

    The redeveloped shopping centre has welcomed the region’s first David Jones store with over 8000sqm floor space, a 6500sqm Big W, H&M, Sephora, Lululemon, Kathmandu, JB Hi-Fi, Mecca, Seed Heritage, Sheike and approximately 60 other specialty stores.

    The shopping centre’s new high ropes course, outdoor children’s play areas and Cornmeal Promenade dining options are scheduled to open by mid 2019.

    Sunshine Plaza is owned jointly by the GPT Group and Australian Prime Property Fund Retail and is managed by Lendlease. GPT and Lendlease commenced with the expansion of the centre in 2016 and was initially scheduled to be completed before Christmas 2018. But, according to GPT, it has been delayed stating it has been impacted by significant wet weather during the third period.

    “Locals and Queenslanders living further north will no longer need to travel to Brisbane for all their shopping and lifestyle needs — it’s all here, located in one of Australia’s most desirable tourism destinations; the Sunshine Coast,” said Gary Horwitz, Lendlease managing director.

    Sunshine Coast Mayor, Councillor Mark Jamieson said the expansion of Sunshine Plaza represents a significant capital investment in the region and for the retail industry.

    “The calibre of retail outlets will encourage our residents to shop within our region and spend locally,” Jamieson said.

    “Our residents and visitors now have more retail options locally, as well as access to a substantial number of new employment opportunities. This is great news for our economy and great news for our community.”

  • Japan’s small retailers gain global e-commerce platform presence

    Japan’s small retailers gain global e-commerce platform presence

    The Japan External Trade Organisation is offering free international e-commerce site access to small-scale domestic retailers to help them sell products in 18 markets abroad.

    The initiative is expected to bolster exports for small and medium-sized businesses, taking advantage of the global popularity of Japanese products as international online trade remains on course to reach US$994 billion next year – up from $530 billion two years ago.

    Twenty four e-commerce sites, including Japan’s Rakuten; China’s Alibaba, Red and JD; and Singapore’s Redmart are signed up to participate in the program, featuring selected Japanese products on their platform without charging listing fees.

    Walmart’s Seiyu and British retailer Ocado will bring Japanese products into markets outside of Asia.

  • Two-hour on-demand delivery platform has Arrived in Australia

    Two-hour on-demand delivery platform has Arrived in Australia

    Think two-hour delivery is years away for Australian retailers? Wrong. It’s already on offer and customers are ready and willing to pay extra for the service.

    Despite some reports suggesting the service won’t be widely available for another decade, eDelivery just launched its on-demand two-hour delivery platform this year, using cutting-edge technology and Uber-style crowdsourcing.

    “The technology is a world-first. It’s super fast, it costs under $8 an order and from the moment the customer places the order online, it takes two hours to have it delivered to them with our 24/7 delivery service,” says eDelivery CEO Carl Popovic.

    Here’s how it works

    1. Customer makes an order online.
    2. The order is directed to the closest location to be picked, packed and labelled within 45 minutes.
    3. Once the order is ready for delivery, it’s directed to eDelivery for collection through its IT platform that is integrated with the retailer’s.
    4. The order is then directed to the private driver network, a crowdsourced network of self-employed drivers who are fully compliant and trained.
    5. The app technology selects the most suitable delivery vehicle of the order. Orders are batched for delivery every 15 or 30 minutes, depending on their size.
    6. A notification is issued to the closest driver. Driver accepts the order via the app and is directed to the store, where he/she scans each parcel and confirms delivery.
    7. With delivery underway, drivers are given the most direct and quickest path for multiple collections and deliveries.
    8. Customers are given a 10-minute advance SMS delivery notice.
    9. At each delivery point, the driver obtains proof of delivery signature, then goes onto the next delivery.

    What customers want

    Even in the past couple of years, consumer expectations have skyrocketed, particularly in terms of delivery, according to PwC’s 2018 Global Consumer Insights Survey. Nearly a quarter of respondents said they would be influenced to buy from a particular retailer if they offered fast or reliable delivery. More than 40 per cent of online shoppers said they would pay extra for same day delivery or for the option to receive their packages within a one or two-hour window of their choosing.

    “When retailers are up against the likes of Amazon who have excellent delivery services, it’s essential that they can compete with a similar offering,” Popovic says. “Customers don’t want to wait for their purchases for a week or two anymore. It’s just not good enough.”

    Two-hour delivery is particularly useful for retailers in the liquor, chemist, grocery, office supplies, hardware, telco or fast fashion categories. Shoppers who go online to fulfil a prescription don’t want to wait for antibiotics in two or three days’ time, neither do those planning to stock up on bubbly for a party they’re hosting tonight.

    At the moment, eDelivery is in talks with department stores, major electronics retailers and chemists to roll out the service.

    “In today’s world, it’s extremely important to be able to use a crowdsourced environment to complete the delivery process. It’s on-demand, it’s cost-effective, it’s efficient, it’s compliant – it basically ticks all the boxes in order for us to fulfil a two-hour delivery service,” says Popovic.

    “It’s time that Aussie retailers step up their game and give customers what they want.”

  • Why retailers struggle to expand globally

    Why retailers struggle to expand globally

    Global retail may be becoming more homogeneous due to international expansion by various chains, but the success of internalisation is patchy within and across retailers, and there have been failures on an industrial scale.

    This made me curious as to why a retailer fails in some markets and not others. It turns out there are a few common themes. Here’s what I’ve been able to discern from some of the more notable and/or recent failures and market withdrawals.

    Walmart loses the culture wars

    The Arkansas-based behemoth closed 269 stores worldwide in 2016, just over half of which (154) were in the US. Its efforts in Germany and Korea were two examples of a lack of cultural understanding and demonstrate why cut-and-paste is ineffective.

    Walmart pulled out of Germany in the late noughties, having learned that what is “customer service” in one country may be offensive in another. German customers, for example, were offended by greeters and Walmart’s 10-foot rule (greeting/interaction/eye contact if coming within 10 feet of a customer). Germans didn’t like having their groceries bagged or taken to their cars. Walmart was also using plastic bags in a country that’s very eco-conscious. Walmart’s employee policies and lack of understanding of German labour laws and unions resulted in it being considered anti-democratic, and its employee “no fraternisation” policy grated. To add insult to injury, EDLP pricing wasn’t a differentiator in a country with Aldi, Lidl and Kaufland.

    Walmart also pulled out of South Korea in the late noughties. The retailer didn’t understand the cultural importance of Korea’s local fresh food markets and that Koreans understood the nature of supermarkets as having a dry-goods focus rather than food and beverage. Koreans are frequent shoppers doing top-up shops, not the stock-up trip nature of a Walmart format. And the company’s locations outside cities didn’t work because Koreans wouldn’t travel to shop.

  • H&M announces opening date of new Botany store

    H&M announces opening date of new Botany store

    H&M has announced the opening date of another bricks-and-mortar store in New Zealand, with the launch of Botany Town Centre location set for 2 May 2019.

    The retailer currently operates four stores in the country, with plans to open a 5th location at Tauranga Crossing on 4 April 2019, making the Botany store its 6th location.

    Last week, the fast fashion giant revealed there is already a 7th store in the works. It is set to open at Chartwell Shopping Centre this winter.

    The Botany Town Centre shop marks H&M’s third location in Auckland, following the opening of H&M at Sylvia Park Shopping Centre in October 2016 and Commercial Bay in 2018.

    Spanning approximately 2000sqm, the single-level store will showcase apparel and accessories for men, women, kids and baby.

    “We are thrilled to finally announce the opening date for our third Auckland store, and look forward to greeting our customers with an incredible fashion destination within a superb shopping centre” said Daniel Lattemann, country sales manager for H&M New Zealand.

    H&M entered the New Zealand market in 2016.

  • Kathmandu suffers a data breach, customers potentially exposed

    Kathmandu suffers a data breach, customers potentially exposed

    An unidentified third-party has breached Kathmandu’s website and potentially accessed customers’ personal information and payment details, the outdoor retailer revealed on Wednesday.

    The business was alerted to the breach, which took place between January 8 and February 12, 2019, through bank fraud monitoring.

    A Kathmandu spokesperson told that the business is currently investigating how many customers are affected by the breach, but that it remains an ongoing process.

    “Whilst the independent forensic investigation is ongoing, we are notifying customers and relevant authorities as soon as practicable,” Kathmandu chief executive Xavier Simonet said.

    “As a company, Kathmandu takes the privacy of customer data extremely seriously and we unreservedly apologise to any customers who many have been impacted.”

    The business has enlisted the help of external IT and cyber security experts to assist in investigating the circumstances, and to confirm which customers have been impacted.

    While the financial impact of the incident is still unclear, the dual-listed retailer saw its stock price fall to $2.31 per share after the announcement, though rebounded to $2.37 by the end of trade.

  • UNIQLO to Launch UTs Celebrating Megahit Capcom Game Series  Monster Hunter and Street Fighter

    UNIQLO to Launch UTs Celebrating Megahit Capcom Game Series Monster Hunter and Street Fighter

    UNIQLO, Japanese global apparel retailer, announces that it will launch a special UT (UNIQLO graphic T-shirts) collaboration collection that celebrates the megahit game series Monster Hunter™ and Street Fighter® from Capcom, a leading worldwide developer and publisher of video games. The Game by Street Fighter UT collection will begin rolling out at UNIQLO stores and through UNIQLO.com starting Monday, April 15. The Game by Monster Hunter UT collection will be available in Mid-June.

    Making its arcade debut in 1987, the Street Fighter game series is considered the progenitor of the fighting game boom that began in the 1990s. A new collection of unique UT designs celebrating the Street Fighter franchise highlights world warriors such as Ryu and Ken in various designs. Street Fighter®UTs include designs with controller button commands, as well as a pixel art rendition of a rare double K.O. from the game. Artwork from the latest Street Fighter title popular in the international esports scene, Street Fighter® V: Arcade Edition, features dramatic illustrations of the games’ iconic characters.

  • Today’s demanding consumers need tech-savvy food retailers: Walmart India CEO

    Today’s demanding consumers need tech-savvy food retailers: Walmart India CEO

    Food is the largest retail consumption category in India, accounting for 33 percent of the overall consumption expenditure. It is also the largest opportunity area, especially in times when market dynamics are changing dramatically, and consumer behaviour is no longer generic.

    Indian consumers are becoming more and more indulgent with food (and vegetables), and they are experimenting with new and foreign cuisines; they are seeking variety and are open to international brands. They profess to enjoy foreign food and are ready to pay more for premium or organic food items. This is a huge shift from the last decade.

    The changes to Indian consumer behaviour are being driven by increasing incomes, younger profiles of consumers and growing access to the Internet.

    According to Krish Iyer, President & CEO, Walmart India and Chairman of India Food Forum, the key trend certainly is for on-demand food.

    “There are a lot of pressures on the disposable income of the consumer. Factors like rising costs of real estate and the need to invest in health – important today because of the awareness and education on health are taking away good chunk of consumer’s disposable income and the expectation of value is increasing,” Iyer said on the sidelines of India Food Forum 2019.

    Expectations, he said, have built up because the consumer has a lot of options, making him more demanding of quality and other conveniences. “Today’s consumer is time-starved. Working couples want ready-to-eat, on-the-go and on-demand food, and this is driving a lot of consumption,” he added.

    To meet the shift in consumer demands, FMCG players are gearing up make the changes in their retail stores.

    Share of E-Commerce in The Retail Pie

    Iyer stated that the share of e-commerce is set to rise over the next 10 years aided by a rise in the Omnichannel format. This, despite the growth in brick-and-mortar retail from 2 percent to 12 percent.

    “What works for today’s FMCG players is a ‘go-to market (GTM) strategy’. This is particularly true for small and medium enterprises who want to launch products. Since GTM is more about digital first, they use the opportunity to connect with consumers in today’s highly connected phygital environment,” he said, talking about the big change which the FMCG sector is witnessing today.

    He stressed on the fact that it is extremely important to bridge the gap between physical and digital retail, especially since the consumer is going digital in terms of experience as also his touchpoints.

    Tech-Savvy CX At Walmart

    Sharing his insights gleaned from years at being at the helm of Walmart India, Iyer explained that that by enriching customer experience, Walmart has observed that the consumer has started purchasing more using the Omnichannel format – Rs 180 over Omnichannel versus Rs 100 spent at the physical store.

    While citing technology adoption as the key to retail growth, Iyer also talked about the four key challenges that retailers need to face head on: food security, safety and nutrition, food wastage and sustainability.

    “Feeding a rising world population of 10 billion, amid rising deaths of infants due to malnutrition and changing climatic conditions are key challenges. In India, phenomenal efforts are made on the regulatory front for safety and nutrition that will follow with awareness, compliance and enforcement of law. Significant investment amounting to Rs 92,000 crore in food processing in catchment areas is needed to overcome the wastage of 30 percent of all food and 40 percent of fruits and vegetables in the country,” he concluded.

  • H&M profit drops due to online investment

    H&M profit drops due to online investment

    H&M profit dropped in the year to November 30, the Swedish fast-fashion retailer blaming investment in its online business for the decline. The world’s second largest clothing retailer embarked on a transformation program last year, investing heavily in logistics and digital technology aiming to improve the shopping experience and product range. This included an upgrade in its mobile app, faster deliveries and the rollout of click-and-collect.

    The company is also working on a new H&M concept store.

    In the last three months of its financial year, the company spent around US$48.5 million on logistics and technology, including resolving problems it flagged earlier last year.

    H&M CEO Karl-Johan Persson said the upgrade in the company’s logistics systems inevitably resulted in increased costs but will lead to a range of improvements for customers.

    “Against a backdrop of rapid changes in the fashion industry, in 2018 we accelerated our transformation to future proof our business, ending a challenging year for the H&M Group and the sector with strong signals that we are on track,” he said.

    Persson said it may have been a challenging year for H&M and the industry but after a difficult first half, there were signs the company’s transformation efforts were beginning to take effect.

    H&M posted a 5 per cent increase in full-year revenue to $22.7 billion, while in local currencies, net sales rose by 3 per cent. Profit fell by 21.8 per cent to $1.36 billion from the same period last year.

    Online sales rose 22 per cent to SEK 30 billion ($3.2 billion) and now comprise 14.5 per cent of the company’s total revenue.

    “With a stronger customer offering and the ongoing improvements in buying and logistics, we expect this trend to continue,” Persson said.

    “While this performance is still some way off the targets that we set at the beginning of 2018, these positive signals confirm we’re making progress across all our strategic focus areas: to create the best customer offering; a fast, efficient and flexible product flow; a stable scalable tech foundation; and adding new growth through store and online expansion.”

    According to Persson, the company opened three new fulfilment centres in the fourth quarter with a total of around 230,000sqm so it can offer customers faster deliveries and a wider assortment while reducing the capacity constraints that slowed them down in some markets in 2018.

    “We have also completed our online transition with investments in 2018, enabling us to successfully migrate online in Germany to the new platform earlier in January 2019,” he said. “With this, all H&M online markets are now on the new platform.”

    Persson said the difficulties with the logistics upgrade in some of their markets earlier in 2018 led to additional costs in the fourth quarter.

    “Applying lessons learned, we have not increased investments to secure upcoming transitions.”

    He added that while these initiatives have a short-term impact on margin, they will lead to continued improvements for their customers, driving increased profitability in the long term.

    “With the transformation now underway, capital expenditure will reduce this year compared to last and we will continue to shift the balance of our investments towards digital.

    “Changing consumer behaviour and technological innovation will continue to transform how and when people shop, we are building a business with the flexibility to respond to this constant evolution.”

  • Judge extends Sears lifeline to mid-January

    Judge extends Sears lifeline to mid-January

    Embattled US department store Sears has been granted yet another lifeline, with a bankruptcy auction now scheduled for January 14. That will give billionaire hedge fund operator Edward Lampert, Sears biggest shareholder and former CEO, one final opportunity to preserve the business. At Monday’s auction, he will bid against rival parties seeking to liquidate the business, described by GlobalData Retail MD Neil Saunders as “more like a patient in a coma than a fully functioning retailer”.

    Sears filed for Chapter 11 bankruptcy protection in October and the independent directors of the 126-year-old company are seeking its liquidation, seeing it as the only means by which creditors can retrieve some of the $5 billion in debts it owes. Lampert wants the remaining 425 stores trading under the Sears and Kmart banners to remain open, convinced it can return to viable trading.

    Saunders disagrees and says talk of a potential liquidation of the company suggests the much-storied retailer is now at the end of its long road to collapse.

    “Its recent journey to this point has been characterised by incredibly poor strategic decisions, chronic underinvestment, and continuous financial machinations designed to keep the company afloat. All of this impacted trading, which has remained dire.”

    Saunders says while Lampert has worked hard to rescue the remains of his empire, there is simply not enough financial firepower left in the company to persuade investors of his bid. Indeed, the terms of the deal put forward by Lampert would only likely delay the inevitable and make it far more difficult for creditors to extract their money.

    “Moreover, his track record in putting the company on a sound financial footing has been less than impressive, and we believe this has undermined his credibility with stakeholders.”

    Saunders says there may be interest from people who see value in elements of Sears business such as the automotive side, the online operations, the brands, and the various home services. Those operations include brands like Kenmore appliances, DieHard batteries and Wrangler jeans. “As such, parts of Sears could live on even if the company as we know it will disappear.”

    According to The Wall Street Journal, Sears, which merged with rival Kmart in 2005, has been losing money for seven years under Lampert’s leadership. Sine April 2007, the company has shed 200,000 staff, lost $30 billion in shareholder value and closed more than 1700 stores, leaving it with less than 700 now.

    Saunders says Sears will act as a case study in how not to run a retail operation.

    “It also serves as an example that even the once most powerful and cutting edge of brands can easily fail in a retail environment where change and evolution are the order of the day.”

  • Coupang to become an authorized Apple retailer

    Coupang to become an authorized Apple retailer

    Coupang, Korea’s top e-commerce platform, has been selected as an authorized retailer to sell Apple products, the company announced Friday. It said that the e-commerce giant was selected to become an authorized reseller of Apple products, and the service will begin sometime this month. The products that will be offered include iPad Pros, MacBooks and Apple Watches, as well as related accessories.

    Coupang said that its shoppers can get access to Apple products that carry a full Apple warranty and come with after-sales customer services from Apple.

    “Coupang will be an attractive purchase channel for customers who love or want to experience Apple products,” said Navid Veiseh, Coupang’s senior vice president of global e-commerce. “We will continue to expand the range of premium electronics brands like Apple, which, when combined with our Rocket delivery and RocketPay services, make Coupang the first place for customers to turn when shopping for premium electronics.”

    Coupang is known for its fast Rocket delivery service that sends items purchased the following day.

  • Korea to ban plastic bags in supermarkets

    Korea to ban plastic bags in supermarkets

    Large supermarkets are banned from giving or selling plastic shopping bags to customers. The Ministry of Environment announced Monday that it will completely prohibit grocery franchises and supermarkets over 165 square meters (1,776 square feet) from selling or giving away single-use plastic bags from New Year’s Day. While it discouraged stores from providing plastic bags before, the ministry enforced a total ban through a revision to the Act on the Promotion of Saving and Recycling of Resources in an effort to cut plastic waste.

    Some 13,000 supermarkets are affected. If they offer disposable plastic bags, they risk fines of up to 3 million won ($2,690). The only kind of one-use bags stores can sell are the disposal bags accepted by district waste collectors. Stores will be encouraged to sell or offer paper and other non-plastic grocery bags instead.

    Supermarkets can continue to offer customers small plastic bags for wrapping items like fish and meat.

    The revision to the law also prohibits some 18,000 bakeries from handing out plastic bags free of charge.

    The ministry said it will give a grace period of around three months to help stores adjust to the change and work with local government bodies to ensure that the regulations are followed.

    Earlier this year, seven of Korea’s largest grocery and bakery franchises, including E-mart and Lotte Mart, signed voluntary agreements with the ministry to reduce disposable waste.

    That initiative has produced notable results. Paris Baguette and Tous Les Jours, for example, used 74 percent fewer plastic bags in November last year compared to the same period 2017, according to the ministry.

    “It’s necessary to reduce use of disposable waste for the environment and future generations,” said a spokesman from the ministry. “We request the people’s active participation to promote a green consumer culture.”