RETAIL NEWS
‘Porch piracy’
affecting online
shopping p7
INNOVATION
The “Uberization” of
Warehousing ― p10
HOLIDAY SALES
Retail Imports Up As
Holiday Shoppers
Head To Stores ― p9
NOVEMBER 2016
RETAIL NEWS
CONTENTS
NOVEMBER 2016
6-7
BEST PRACTICES / MARKET TREND REPORT
How retailers can improve price perception—profitably
Are Organizations Really Achieving Supply Chain Agility and Transformation?
Managing Supply Risk in Uncertain Times
The Future of Retail
7-9
TOP STORIES
‘Porch piracy’ affecting online shopping
Fast Deliveries to Grow by 40 percent Year-on-Year Until 2025, Says New Study
Free Shipping, As the Retail World Knows It, Is Far From Being Free
How customer demands are reshaping last-mile delivery
An 18-month recession at the biggest businesses in America just ended
A.T. Kearney: Economic resilience spikes holiday spending
Black Friday to reign supreme; new date for Super Saturday
Clicks to Bricks: Online Retailers Find the Lure of a Store
October retail sales are strong, reports Commerce and NRF
Retail Imports Up As Holiday Shoppers Head To Stores
9-10 INNOVATION & OPERATIONS
Boeing’s Retiring Boomers Underscore US Manufacturing Plight
U.S. Dept. of Energy Awards $5 million for Truck Platooning Study
The Internet of Things is Transforming Manufacturing
The “Uberization” of Warehousing
11-12 RETAILING IN ASIA-PACIFIC
Amazon to open small stores, online supermarket in Australia
China’s retail sales to reach about 48 trillion yuan (US$ 6.99 trillion) by 2020
Alibaba Tops Singles’ Day Record as Chinese Consumers Rally
Online retail’s rise takes a toll on China’s in-store sales
Asia Pacific leads mobile cross-border shopping
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RETAIL NEWS
NOVEMBER 2016
12-13 RETAILING IN EUROPE, INDIA, MIDDLE EAST, AFRICA
Saudi retailer Jarir says retail slump may be ending
Alabbar, Saudi PIF to Set Up $1 Billion E-Commerce Firm
Amazon India’s most attractive Internet brand: TRA study
German discount chain Aldi to leverage Aussie farmers for China
UK holiday sales set to grow 3.5%, retail expected to enjoy bumper Christmas season
14
RETAILING IN LATIN AMERICA
Peru wants international retail buy-in for fishing sector restructure plan
Topshop to arrive in Uruguay in 2018
Groupe Casino sales lifted by Latin America gains
Kellogg Co. to buy Brazilian company Parati for $429 million
15-16 RETAILING IN NORTH AMERICA
AmEx: Holiday spending, mobile usage jumps this holiday season
Amazon’s private-label lines are forces to be reckoned with
Check out Walmart’s new BOPIS machine
Deloitte: Consumers expect more from ‘fast shipping’
Retailers expand digital deals for Black Friday shoppers
16-17 RETAILING JARGON
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RETAIL NEWS
NOVEMBER 2016
“ Hello everyone,
As we prepare to spend times with family and
“A.T. Kearney: Economic resilience spikes holiday
friends for the Thanksgiving Holiday, retailers
spending” (Chain Store Age),
are preparing for one of the largest consumer
shopping events which kick-off in November 25th
also known as “Black Friday”. This year there are
high expectations from retailers as retail sales
have steadily increased since 2nd quarter of 2016
over 2015 results due to positive consumer outlook
on the economy. A quick glance at the recent
headlines confirms consumers and retailers alike
are feeling more optimistic this holiday season (see
below);
“October Retail Sales Healthy As Consumers Gear
Up For Holidays” (National Retail Federation),
“US retail sales rose 0.8% in Oct vs. 0.6% increase
“2016 Holiday Sales to Top Last Year’s” (Kiplinger).
Even during the tumultuous political campaign
season, consumers continued to remain positive
on the overall economic outlook for the remainder
of 2016 and into 2017. These conditions have
prompted retailers to promote holiday shopping
during mid-October to promote weekly Black
Friday deals long before November 25 via their
ecommerce and mcommerce channels. In looking
at the sales data, the National Retail Federation
(NRF) revised overall holiday spending increase
from 3.4% to now 3.6% over the original estimate
of 3.4% (see below).
expected” (CNBC),
Source: National Retail Federation. (2016). “National Retail Federation Forecasts Holiday Sales To Increase 3.6%”. Retrieved from
https://nrf.com/media/press-releases/national-retail-federation-forecasts-holiday-sales-increase-36
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RETAIL NEWS
NOVEMBER 2016
To ensure our retail clients are prepared to meet
their consumers’ demands this holiday season, our
logistics solutions must be agile, capable, flexible,
and scalable to adapt to our client’s marketplace.
Using unique logistic solutions tailored to the
client’s operation which leverages our extensive
logistics expertise, Crane Worldwide Logistics can
provide innovative logistics solutions for our clients
to succeed this holiday season.
In this month’s newsletter, I have selected
articles and reports which will help identify what
opportunities our clients will encounter in the
retail marketplace this holiday season. I have also
selected articles detailing industry best practices,
solutions, technology, and trends which can be
incorporated in the development of our solutions
for our retail clients. Finally, I have added more
useful retailing terms and definitions.
”
Sincerely,
Dr. David Widdifield, DM.
Director, Retail Solutions, Crane Worldwide Logistics
Contact: [email protected]
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RETAIL NEWS
NOVEMBER 2016
Best Practices/Market Trend Report
How retailers can improve price
perception—profitably
Are Organizations Really Achieving Supply
Chain Agility and Transformation?
McKinsey & Company- As retail executives know
all too well, most pricing decisions require a tradeoff between margin and price perception. To avoid a
“race to the bottom”—the self-defeating exercise of
trying to beat every competitor’s price on every item—
retailers must hone their ability to make smart pricing
investments. Indeed, the savviest retailers identify key
value categories (KVCs) and key value items (KVIs)—
those product categories and SKUs whose prices
consumers tend to notice and remember. If a retailer
can do this accurately, it can price those specific
products competitively while charging higher prices
on other items. Yet, despite the importance of KVC and
KVI identification, many retailers still lack a systematic,
fact-based process for doing it. In this report you will
learn how new methodologies, powered by big data
and advanced analytics, can help retailers attract valueconscious consumers without sacrificing margins.
Supply Chain Management Review- Supply chain
management systems have been a stalwart of large
companies for over two decades. Despite this, many
organizations fail to administer a dynamic, agile
value chain. This survey of top corporate supply
chain executives reveals that the next level of supply
chain orchestration is yet to come for many leading
companies.
> Download the full report to learn more.
_____________________________________________
> Download the report to learn more.
_____________________________________________
Managing Supply Risk in Uncertain Times
Logistics Management - Although supply chain
disruptions are inevitable, managing risk has fallen
to the bottom of the list of priorities for procurement.
CPOs cite lack of bandwidth & budget as the biggest
roadblocks to proactively managing supply chain
risks. Read this report to understand how resilient
organizations are able to quickly identify, diagnose, &
resolve latent risk in extended supply chains.
> Download the report to learn more
_____________________________________________
The Future of Retail
Business Insider - The retail industry is on the cusp
of a fundamental transformation driven by digital
technologies. And as retailers adapt to the digital
age, the line between physical and digital commerce
is becoming increasingly blurred. BI Intelligence,
Business Insider’s premium research service, has
developed an exclusive slide deck related to the
shifting sands of e-commerce and retail. Find out the
source of growth, latest consumer behavior trends,
who the pioneers are, and where the opportunities lay
in retail, with this exclusive slide deck.
> Download the report to learn more.
IMAGE:IStock
_____________________________________________
6
NOVEMBER 2016
RETAIL NEWS
Top Stories
IMAGE:IStock
‘Porch piracy’ affecting online shopping
Chain Store Age- As more shoppers become victims
of “porch piracy,” they are changing the way they shop
— and receive — online orders. This message was
delivered in a new study from Vivint Smart Home, a
smart home services provider in North America. The
study, which is based on 2,000 people, explores the farreaching impact of the porch piracy phenomenon — an
issue that has affected 23 million Americans, according
to a separate study from Princeton Survey Research
Associates International. Nearly 45% of Americans
have had a package stolen or know someone who has
had a package stolen, an issue that now has nearly 75%
of Americans concerned about porch piracy.
> Read more
____________________________________________
Fast Deliveries to Grow by 40 percent Yearon-Year Until 2025, Says New Study
Supply Chain Management Review- As the trend
toward buying goods online increases, so too does
the desire to receive the ordered products as soon as
possible. The market for same-day and instant delivery
will account for around 20 percent of standard parcel
revenue by 2025. Currently, the market share of sameday and instant delivery is less than one percent. Driven
by e-commerce, the parcel segment in mature markets
like the U.S. or Germany is growing by seven to ten
percent annually. By 2025, this volume is expected to
double in the U.S. – with around 25 billion parcels being
sent each year.
> Read more
_____________________________________________
Free Shipping, As the Retail World Knows
It, Is Far From Being Free
Supply Chain 247- The cost of free shipping can be
especially onerous for smaller e-commerce companies,
but it’s even impacting Amazon and Target, two of the
giants often considered responsible for popularizing
the trend to begin with. The cost of shipping actually
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NOVEMBER 2016
goes down as you ship more, but to do so, you’ll need
to appeal to shoppers by jumping on the free shipping
bandwagon. Free shipping, as the retail world knows
it, is far from being free; in fact, it’s a loss leader that
remains to be fixed. Back in the day when free shipping
emerged as a tactic to boost the economy during the
retail crisis, shareholders bore the brunt and accepted
low-margin growth. > Read more
_____________________________________________
How customer demands are reshaping
last-mile delivery
McKinsey & Company- The last mile is seeing disruption
from new business models that address customer
demand for ever-faster delivery, as well as new
technologies such as drones and autonomous ground
vehicles. Last-mile delivery, especially of parcels, has
recently received lots of attention in the media and from
investors. The cost of global parcel delivery, excluding
pickup, line-haul, and sorting, amounts to about €70
billion (US$ 74 billion), with China, Germany, and the
United States accounting for more than 40 percent
of the market. And not only is the market large, but
it’s also highly dynamic, with growth rates in 2015 of
between 7 and 10 percent in mature markets (such as
Germany and the United States) and more than 100
percent in developing markets. The biggest driver of
this growth, not surprisingly, is e-commerce, which has
shifted market share from the B2B to the B2C segment.
RETAIL NEWS
quarter according to John Stoltzfus, Chief Investment
Strategist at Oppenheimer.
> Read more
_____________________________________________
A.T. Kearney: Economic resilience spikes
holiday spending
Chain Store Age- GloForty percent of U.S. consumers
plan to spend more this year than during the 2015
holiday shopping season, driven by better job prospects
and an improving economy. That’s one of the findings of
the A.T. Kearney 2016 Holiday Shopping Survey, which
was conducted online from Oct. 24 – Oct. 25, 2016.
The survey results show that 53% of consumers cite
their income situation and employment status as the
most important reasons why they plan to spend more
this year. Nineteen percent of consumers in the survey
cited the economy as the most important reason for
increasing their spending. > Read more
_____________________________________________
Black Friday to reign supreme; new date
for Super Saturday
> Read more
_____________________________________________
Chain Store Age- Black Friday may have lost some of
its allure in recent years, but it still comes out on top
in a ranking of the busiest shopping days. Black Friday,
which falls on Nov. 25 this year, took the No. 1 spot in a
ranking of the anticipated 10 busiest shopping days of
2016 by ShopperTrak, a Tyco Retail Solutions business
unit. The second and third busiest shopping days are
expected to be Monday, Dec. 26 and Friday, Dec. 23.
An 18-month recession at the biggest
businesses in America just ended
> Read more
_____________________________________________
Business Insider - A little over 90% of S&P 500
companies have reported their quarterly results, and
it’s become clear that the recession in corporate profits
has come to an end. Since the second quarter of 2015,
S&P 500 earnings reports have shown a decline in
profits - year-over-year. A decline for two consecutive
quarters indicates an earnings recession. Based on the
companies that have reported so far this quarter, S&P
earnings will be up 2.75% from the prior year’s third
Clicks to Bricks: Online Retailers Find the
Lure of a Store
NY Times- Online retailers are increasingly opening
brick-and-mortar outlets to further expand their
appeal to consumers. Physical-store sales that
are influenced by online browsing are expected to
represent 38% of all retail sales this year, according
to Forrester Research. Companies of all sizes that
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RETAIL NEWS
NOVEMBER 2016
once sold primarily through multibrand retailers are
building on their experience running online stores
by opening direct-to-consumer brick-and-mortar
locations. Established retailers are shifting their focus
from basic transactions to offering compelling brand
experiences and higher levels of personal service.
> Read more
_____________________________________________
October retail sales are strong, reports
Commerce and NRF
Logistics Management- The United States Department
of Commerce and the National Retail Federation (NRF)
both reported that October retail sales turned in a
solid performance. Commerce reported that October
retail sales saw a 0.8 percent increase over September
at $465.9 billion and a 4.3 percent annual gain. Total
sales for the August 2016 to October 2016 period were
up 3.3 percent compared to the same period a year
ago. Retail trade sales saw a 4.3 percent annual gain
and were up 1.0 percent from September to October.
And nonstore retailers were up 12.9 percent annually.
The three-month average of retail sales was up 3.5
percent on an annual basis, the NRF said, with all retail
sectors it tracks turning in solid performances, with the
exception of home furnishings and department stores.
> Read more
_____________________________________________
Retail Imports Up As Holiday Shoppers
Head To Stores
National Retail Federation- With the holiday shopping
season officially under way, imports at the nation’s major
retail container ports are expected to be up 4.4 percent
this month over the same time last year and should see
a slightly larger increase next month, according to the
monthly Global Port Tracker report released today by
the National Retail Federation and Hackett Associates.
“Retailers are importing more during the holidays this
year than last year and that can only mean one thing –
they expect to sell more,” NRF Vice President for Supply
Chain and Customs Policy Jonathan Gold said.
> Read more
Innovation & Operations
Boeing’s Retiring Boomers Underscore US
Manufacturing Plight
IMAGE: Boeing
Industry Week- U.S. manufacturers are grappling with
a looming shortage of skilled workers. Almost 3.5
million manufacturing positions will need to be filled
over the next decade as baby boomers retire, and 2
million of those jobs could remain vacant because of
manufacturing’s fading appeal to millennials, according
to a 2015 study by Deloitte and the Manufacturing
Institute. The dilemma could be especially acute for
Boeing, where about 35% of the 29,645 machinists in
the company’s Seattle industrial hub are 55 or older. By
contrast, only 23% of the 15.3 million Americans working
in manufacturing are in that age group, according to
the U.S. Bureau of Labor Statistics. > Read more
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RETAIL NEWS
NOVEMBER 2016
U.S. Dept. of Energy Awards $5 million for
Truck Platooning Study
Supply Chain 247- Peloton Technology, a connected
and automated vehicle technology company dedicated
to improving the safety and efficiency of freight
transportation, has announced its participation in the
Next-Generation Energy Technologies for Connected
and Autonomous On-Road Vehicles (NEXTCAR)
program sponsored by the U.S. Department of Energy’s
Advanced Research Projects Agency-Energy (ARPA-E).
The project will apply next-generation truck platooning
technology and concepts for smart, cloud-connected
powertrains to achieve 20 percent fuel savings for
tractor-trailers. Peloton’s flagship platooning system,
which will reach commercial trucking fleets in 2017,
creates a wireless link between the automated throttle
and brake control systems on multiple trucks to
synchronize their speeds and maintain a safe following
distance even in the event of a sudden stop.
> Read more
The Internet of Things is Transforming
Manufacturing
Industry Week - The Industrial Internet of Things (IIoT),
the use of IoT technologies in manufacturing, presents
two fundamental new best practices for the work
place. First, we need to embrace and move toward an
environment of connected sensors which gather data
about the shop floor environmental conditions, current
work, and equipment status. We need to apply our
knowledge and perceptions of social media to the shop
floor, in which trends and environmental conditions can
be continuously monitored and dynamically presented
to any user in any location with a mobile device. Data
collected from factory equipment can help determine
the health of the machinery and identify potential
issues. This sort of predictive maintenance can curb
lost productivity and potentially extend the life of the
factory machinery. Second, we should look forward to
the democratization of data and insights, in which all
company personnel can be involved in monitoring and
IMAGE: Peloton
continuously improving processes. Users must demand
new solutions that provide access and visibility to
data. Technologies that cannot proliferate information
and scale across user bases are becoming extinct.
> Read more
_____________________________________________
The “Uberization” of Warehousing
Supply Chain Management ReviewDynamic
warehousing involves buying warehousing services
on a pay-per-use basis. Just as with Uber and AirBnB,
exemplars of today’s “on-demand” economy, users
and providers meet and transact with each other via
an electronic marketplace. Dynamic warehousing is
emerging as a viable way of purchasing warehousing
services on demand—paying only for what is used
instead of owning distribution centers or signing
contracts with third-party logistics providers (3PLs).
> Read more
_____________________________________________
10
RETAIL NEWS
NOVEMBER 2016
Retailing in Asia-Pacific
Amazon to open small stores, online
supermarket in Australia
The Sydney Morning Herald- One of the world’s biggest
retailers, Amazon, is on track to launch bricks and
mortar grocery stores and an online supermarket in
Australia within two years. It would be smaller than a
Woolworths or Coles; similar in size to an Aldi store. It
would stock only the items people like to inspect before
purchasing, namely fruit and vegetables, meat, dairy
and alcohol. But customers would still be able to buy
tens of thousands of products through an app or an
instore kiosk or touchscreen. These products would not
be stocked on shelves. Instead, they would be stored in
nearby fulfillment centers, for delivery to the customer’s
home.
> Read more
_____________________________________________
China’s retail sales to reach about 48 trillion
yuan (US$ 6.99 trillion) by 2020
Reuters- China’s retail sales would reach about 48
trillion yuan (US$ 6.99 trillion) by 2020, with average
annual retail sales growth at 10 percent, the country’s
Commerce Ministry said. E-commerce trade volume
is also projected to grow at an average annual rate of
about 15 percent in 2016-2020, according to a five-year
plan for the country’s domestic trade posted on the
ministry’s website. Beijing has pledged to transform
the economy into one more reliant on consumption
than exports, and cut overcapacity in industrial sectors,
amid stubbornly weak external demand.
> Read more
_____________________________________________
Alibaba Tops Singles’ Day Record as
Chinese Consumers Rally
Bloomberg- Alibaba Group Holding Ltd. broke its
Singles’ Day sales record with room to spare, offering
assurances about the strength of the Chinese consumer
despite the nation’s economic slowdown. Sales on its
e-commerce platform reached 102 billion yuan ($15
billion) shortly before 8 pm in China, easily topping last
year’s total of 91.2 billion yuan with about four hours
left to run. Dwarfing both America’s Cyber Monday and
Black Friday, the 24-hour online promotion is closely
watched for clues on the health of the economy and its
largest online retailer
> Read more
IMAGE:Alibaba Group
11
RETAIL NEWS
NOVEMBER 2016
Online retail’s rise takes a toll on China’s
in-store sales
Asia Pacific leads mobile cross-border
shopping
South China Morning Post- China’s traditional retail
industry to remain weak as shoppers stay home. The
top 50 Chinese retailers saw sales fall by 1.9 per cent
in the first nine months of the year, while online sales
jumped 26.1 per cent. A decline in China’s traditional
retail industry is set to continue amid sluggish sales
and changing consumer habits, analysts say. The
outlook for the sector, which includes department
stores and other bricks-and-mortar shopping outlets,
is negative, with demand likely to “remain muted” into
2017, a Fitch report said. Chinese consumers have
undergone a recent shift in their shopping preferences
as the country’s middle class expands, shoppers
are now increasingly favoring e-commerce, which
makes up 20 per cent of the country’s retail sector.
> Read more
Chain Store Age- As retailers expand their operations
beyond their domestic borders, many are finding
new opportunities to connect with new shoppers.
This message was delivered in “PayPal Cross-Border
Consumer Research 2016,” a report from PayPal and
Ipsos, a study that investigated the online domestic
and cross-border shopping habits of more than 28,000
consumers in 32 countries. Data revealed that 37%
of shoppers in the Asia Pacific make cross-border
purchases on a mobile device, the majority of which
are on a smartphone. If the growth in Asia Pacific is an
indication of a global shift to increased mobile crossborder shopping, there is a tremendous opportunity
for merchants in Europe and North America, especially
as more shoppers plan to increase their budgets, the
study said. > Read more
Retailing in Europe, India, Middle East, Africa
Saudi retailer Jarir says retail slump may be
ending
Reuters- The slump in Saudi Arabia’s retail sector
may be close to ending as consumption starts to
stabilize after shrinking because of low oil prices and
government austerity policies, the chairman of one of
the kingdom’s biggest retail chains said. “We think the
sharp decline is fundamentally over, or will be over by
the end of this year,” said Muhammad Alagil, chairman
of Jarir Marketing Co 4190.SE, which focuses on selling
consumer electronics, books and office supplies. Next
year, the company may be able to grow both profit and
sales at rates in the high single digits or low double
digits, he added - though much of that growth would
come from opening new stores rather than increasing
business at existing outlets. Next year, the company
may be able to grow both profit and sales at rates in
the high single digits or low double digits, he added though much of that growth would come from opening
new stores rather than increasing business at existing
outlets.
> Read more
_____________________________________________
Alabbar, Saudi PIF to Set Up $1 Billion
E-Commerce Firm
Bloomberg - A group of investors led by Emaar Properties
PJSC Chairman Mohamed Alabbar and Saudi Arabia’s
sovereign wealth fund will each contribute $500 million
to an e-commerce venture to tap the Middle East’s fastgrowing online retail market. E-commerce firm Noon
will go live in January and provide 20 million items for
customers, Alabbar said at a news conference in Dubai
on Sunday. Saudi Arabia’s Public Investment Fund will
provide half of Noon’s capital and will be an active
participant in its board, while Alabbar and about 60
other Gulf-area investors will contribute the other half
of its capital. The firm could be listed in five to seven
years, he said.
> Read more
IMAGE:IStock
12
RETAIL NEWS
NOVEMBER 2016
Amazon India’s most attractive Internet
brand: TRA study
Chain Store Age- US-based online retailer Amazon has
been ranked as the most attractive Internet brand in
the country ahead of rivals Flipkart and Snapdeal as
well as search engine giant Google, according to India’s
Most Attractive Brands Study 2016. “For the first time
in three years, Amazon has been declared as the most
attractive Internet brand (96th rank overall)...,” said the
study carried out by Trust Research Advisory (TRA).
> Read more
_____________________________________________
German discount chain Aldi to leverage
Aussie farmers for China
XinhuaNet- German discount supermarket giant
Aldi will leverage its Australian suppliers as it looks
to begin retail operations in China via e-commerce
beginning mid next year. Australia exports over 80
percent of produce due to increasing demand for high
quality and clean goods in the emergent Asian middle
class, driven primarily from China. Following detailed
feasibility studies, Aldi on Monday announced it would
begin offering selected non-chilled grocery and wine
products sourced from its Australian suppliers in the
second quarter 2017 via an e-commerce retail platform.
The move is a bid to gain a foothold in the Chinese
market before a wider Asian expansion. “We know
there is a strong demand among Chinese consumers
for Australian manufactured products and our goal is to
provide a competitively priced alternative for shoppers
seeking quality groceries,” an Aldi spokesperson told
Xinhua in a statement on Monday.
featuring experiences and online-based retailers
are expected to be hot trends this year, Managing
Director Deborah Weinswig said. The resilience of Brits
continuing to shop and spend money despite initial
fears after the Brexit vote is set to provide retailers a
bumper growth this Christmas, according to a new
report. Analysis from Fung Global Retail & Technology
indicates that the “Brexit bounce” is set to boost holiday
spending by 3.5 per cent year-on-year, but the increase
could be as much as 4 per cent if recent strengthening
trends continue. Brits are expected to spend around
£2.5 billion (US$ 3.08 billion) more than last Christmas,
with tills ringing up a total of £73 billion (US$ 90.07
billion) in sales in the final two months of the year.
The positive prediction comes as a relief to retailers
following last year’s Christmas season, which was the
weakest in 25 years.
> Read more
> Read more
_____________________________________________
UK holiday sales set to grow 3.5%, retail
expected to enjoy bumper Christmas
season
Retail Gazette- UK holiday retail receipts are on track
to rise 3.5% from the same period last year, according
to Fung Global Retail & Technology. Gadgets, gifts
IMAGE: IStock
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RETAIL NEWS
NOVEMBER 2016
Retailing in Latin America
IMAGE: IStock
Peru wants international retail buy-in for
fishing sector restructure plan
Undercurrent News - The Peruvian manufacturing
industry association, together with NGO partners,
several fishermen associations and the government,
is producing a plan to restructure the fishing sector
in the South American country, industry sources
told Undercurrent News. The working group within
the Peruvian manufacturing industry association
Sociedad Nacional de Industrias (SNI) directing the
project is the giant squid and mahi mahi committee.
The Sustainable Fisheries Partnership is the key NGO
partner. “We also need to involve scientific associations
and supermarkets, making sure that the good work
is recognized internationally and not just at a local
level,” Dario Alvites, president of fishing firm Perupez.
> Read more
_____________________________________________
Topshop to arrive in Uruguay in 2018
Fashion Network- British high street chain Topshop is set
to step into a new market in South America. According
to local media reports, the womenswear brand plans to
open its first store in Uruguay in the city of Montevideo
in 2018. The plans were confirmed by Marino Garbarino
CEO of Punta Carretas, the shopping centre where
the label will open its doors once an $80 million store
extension is complete.
> Read more
_____________________________________________
Groupe Casino sales lifted by Latin America
gains
Market Watch - Groupe Casino SA’s (CO.FR) sales
rose in the third quarter, boosted by an increase in food
sales in Brazil and currency gains in Latin America.
The company, which operates supermarkets in France
and abroad, reported sales of 10.43 billion euros ($11.49
billion) for the three months to Sept. 30, up 6.7% from
the same period last year. Latin America boosted
Casino’s sales, marking a turnaround for the region
from previous quarters. The group posted double-digit
percentage gains there in both its retail and electronics
businesses. Food sales in particular were buoyant,
gaining 21% on the same period last year. Excluding the
currency effect, Latin America food sales still rose 13%.
> Read more
_____________________________________________
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NOVEMBER 2016
Kellogg Co. to buy Brazilian company Parati
for $429 million
Battle Creek Enquirer - Kellogg Co. agreed to buy
a controlling stake in Parati Group, a Brazilian food
company, on Thursday for $429 million, marking the
company’s fourth major acquisition in emerging markets
in the past two years. With the deal, the Battle Creekbased company will acquire Ritmo Investimentos, the
controlling shareholder of Latin American pasta, biscuit
and powdered-beverage maker Parati. The deal is
RETAIL NEWS
expected to be finalized later this year, the company
said in a news release. “With its outstanding portfolio of
popular consumer brands, Parati Group is an excellent
strategic fit for Kellogg and our business in Latin
America,” Kellogg Chairman and CEO John Bryant was
quoted. “Brazil is the largest economy in Latin America
and this acquisition will allow us to accelerate our
growth and improve our margins in the region.
> Read more
_____________________________________________
Retailing in North America
Amazon’s private-label lines are forces to
be reckoned with
AmEx: Holiday spending, mobile usage
jumps this holiday season
Chain Store Age- It may only be November, but
American shoppers are steadily crossing items off of
their holiday shopping lists. As of the end of September,
one-third (33%) of consumers had already started their
holiday shopping, up significantly from 25% in 2015.
Further, they expect to spend an average of $908, an
8% increase from last year ($839 in 2015). Among
affluent consumers, this threshold increases to an
average of $1,513. These details were revealed in the
“American Express Spending and Saving Tracker,” a
report that is based on responses from 1,540 adults in
the U.S. population, with a minimum annual household
income of $100,000. “While consumers are spending
more money on gifts this year, they are becoming
savvier with how they spend their time shopping,” said
Kartik Mani, executive VP of global consumer lending
at American Express. > Read more
Chain Store Age - Amazon is synonymous for stealing
market share from established retail brands. Now it
upping the ante with private-label merchandise. By
leveraging its online shelf space to introduce its own
line of new private-label products, Amazon is changing
the dynamic in the marketplace once again, according
to a report by 1010data Market Insights. This time
among category leaders, as Amazon’s private label line
directly competes with national suppliers. “No matter
the market, the challenge for brands in an increasing
number of categories is that Amazon is the top online
channel,” said Jed Alpert, senior VP of marketing at
1010data. “Amazon is leveraging its dominance to sell
its own private-label brands, which compete with
traditional suppliers.
> Read more
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Check out Walmart’s new BOPIS machine
Chain Store Age - Walmart is testing new technology
that could revolutionize the way customers pick up
purchases they ordered online. The discounter has
installed a giant machine in a store in Bentonville, Ark.,
close to its headquarters, that automatically distributes
online orders to users of Walmart’s buy-online-pickupin-store service, reported Business Insider. The
machine is located directly inside the store’s entrance.
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RETAIL NEWS
NOVEMBER 2016
According to the report, when customers place an
online order for in-store pickup at the location, they get
an order number. When the person arrives at the tower,
he or she enters the order number into the machine,
which then spits out the customer’s package.
> Read more
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Deloitte: Consumers expect more from
‘fast shipping’
Chain Store Age - As Amazon continues to up the
ante on convenient, fast shipping options, shoppers
expect their favorite brands to follow suit. Specifically,
42% of shoppers surveyed consider three- or fourday shipping “fast” – a significant drop from the 63%
who said so last year. Instead, the majority (83%) of
shoppers consider fast shipping to mean delivery
within two days or less, according to the “2016 Deloitte
Holiday Study,” a report based on responses from 5,038
consumers in the United States. Nearly two-thirds
(64%) of these shoppers think they should be allowed
to order after Dec. 17 and still get free shipping by Dec.
24, and more than 7 in 10 surveyed shoppers (71%) plan
to take advantage of free shipping opportunities this
season, the study said. > Read more
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Retailers expand digital deals for Black
Friday shoppers
Chicago Tribune- Black Friday deals will be available
days before the calendar actually hits Nov. 25, diluting
what was once a one-day, deal-hunting frenzy. And
as retailers have begun offering the same promotions
online, they’ve made the idea of braving in-store Black
Friday crowds less compelling for some shoppers.
Holiday packages coming: Is your building ready for
the cardboard crush? Holiday packages coming: Is
your building ready for the cardboard crush? “If you’re
a retailer, it doesn’t matter where you’re getting your
business from, just that you’re getting the business.
“Making sales available online is much more in tune
with what the consumer is looking for,” said Neil Stern,
senior partner at Chicago-based consulting firm
McMillanDoolittle. > Read more
Retailing Jargon
Augmented Reality (AR): This concept is all about
supplementing the user’s real, physical world with
virtual things, so they appear to coexist in the same
environment. AR brings computer-generated objects
into the real world — kind of like how in the movie
Space Jam, Michael Jordan can be seen playing
basketball with Looney Tunes characters. In retail,
AR can be implemented in several ways, including
shoppable catalogs, apps that let you see in-store
deals when you point your phone’s camera towards
a specific direction, or even fitting room simulators.
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Beacons: Powered by BLE (Bluetooth Low Energy)
technology, Beacons are devices that can transmit
messages to other Bluetooth-enabled devices, such
as smartphones, tablets, and smartwatches. More
important, beacons have the capabilities to “recognize”
devices based on their location or previous interactions.
This enables retailers to send tailored notifications to
shoppers depending on where they are in the store or
what type of customer they are. Beacons can also be
used for in-store analytics purposes. Most solutions
come with tools for measuring foot traffic, dwell time,
and more, enabling retailers to gather data and further
get to know their customers and their store.
“
Beacons: devices
that can transmit
messages to other
Bluetooth-enabled
devices, and
“recognize” devices
based on their
location or previous
interactions.
”
IMAGE: Estimote
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RETAIL NEWS
NOVEMBER 2016
Contactless Payments: This refers to a system of
payments powered by near field communication (NFC).
They include NFC-enabled credit and debit cards,
smart cards, and smartphones that allow customers
to complete transactions without physically touching a
payment terminal. Instead of having to swipe their card,
shoppers can pay for their purchases just by waving
their card or phone over a terminal.
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Drop Shipping: This refers to an arrangement between
a retailer and a manufacturer/distributor in which the
former transfers customer orders to the latter, who then
ships the merchandise directly to the consumer. In
other words, the retailer doesn’t keep products in stock.
Instead, it sends orders and shipment information to
the manufacturer/distributor and they will be the ones
who will ship to the consumer.
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EMV: EMV was developed Europay®, Mastercard® and
Visa® (hence the name) as a way to combat fraud. It’s
a technology that powers chip-and-pin cards, a breed
of debit and credit cards that’s far more secure than
magnetic stripe (i.e. swipe-and-sign) cards. See, unlike
a mag stripe card, which stores static information about
the cardholder, an EMV card is embedded with a chip,
which creates a unique code that changes for every
transaction. This makes it less susceptible to fraud
because even if a hacker manages to counterfeit a chip
card, the original transaction code is not usable again
and the card would get declined.\
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Endless Aisle: An endless aisle is a feature of brickand-mortar stores that enables customers to browse
and shop the retailer’s entire catalog of products. So
rather than stocking up on every item and SKU, you can
implement an endless aisle by giving shoppers access
to devices like touch screens and iPads.
_____________________________________________
Flash Sales: Closely related to daily deals, this term
refers to sale events that take place for a limited time.
Flash sales can last anywhere from several hours
to a couple of days and entice consumers with huge
bargains (usually 50% and up). The catch is, shoppers
have to complete the purchase ASAP. Otherwise, they
risk losing the items to other shoppers or they run out
of time and miss their chance to grab the deals they
want.
_____________________________________________
Mobile Payments: This pertains to the services and
technology that enable consumers to pay using their
mobile phones, instead of traditional forms of payment
like cash or credit cards. Mobile payment solutions
come in many forms. These days, the most popular
ones include NFC-based solutions such as Apple Pay
or Google Wallet, and app-based solutions like PayPal.
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Pop-Up Store: Pop-Up-Stores are short-term shops or
sales spaces that come and go within a given period.
These stores can be set up in empty retail spaces, mall
booths, or even in the middle of a park.
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Social Commerce: S-Commerce refers to retail models
or ecommerce practices that incorporate social media,
user-generated content, or social interaction. Do note
that the role of social networks like Facebook or Twitter
in S-Commerce isn’t necessarily to serve as platforms
for buying and selling; rather, they’re meant to assist
the process and help drive sales.
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We would love to hear from you.
Find contact details for your nearest Crane location
1-888-870-2726 |
[email protected]
www.craneww.com
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