Target will add 33 Canadian stores by year-end
Target plans to open 33 stores next month in Canada, to end the year with 124 locations north of the border. The retailer has struggled to keep shelves stocked since entering Canada this year, and customers familiar with U.S. stores have been disappointed to find higher prices at home. “They’re doing a better job of getting shoppers to compare prices with the local competitors and mentioning price matching and REDcard discounts,” analyst Brian Yarbrough said. Star Tribune (Minneapolis-St. Paul, Minn.) (Oct 29, 2013)
Walmex Q3 Shows Slight Sales Increase
Walmart de Mexico reported third quarter results, which find the retailer experiencing modest sales increases, but declining mature store sales. Results include:
- A 1.7% increase in sales to 101.27 billion pesos from 99.35 billion pesos.
- Same store sales decreased 2.9%.
- Sales at stores in Central America, however, increased 6.4%, with 2% same store sales increases.
- Profit increased to 5.30 billion pesos ($408 million) from 5.26 billion pesos.
Despite the large increases in sales in Central American stores, the company’s slower growth overall is largely attributable to the slowing economy and dempened consumption in Mexico. The government just recently cut its growth prospects to 1.8% from 3.1%. Wall Street Journal (Oct 24, 2013)
Walmart to Increase Expansion in China
Walmart has announced its intentions to open up more Walmart and Sam’s Club stores in China in the coming years. The company hopes to open 110 new stores between 2014 and 2016 and two new Sam’s Club stores next year. Walmart also says it has plans to expand its ecommerce arm there, Yihaodian.
Walmart also recently said that it plans to close 25 stores in an effort of financial discipline and to refocus its operations. The retailer will still open 30 new outlets there this year, however.
The international market, especially in emerging countries, is the company’s greatest source of growth. However, international economic conditions are tough. China’s economy has slowed, however, as of late as growth projections have been cut. Furthermore, sales are quickly shifting online there, which will benefit their Yihaodian expansion. Walmart had 6,200 international stores at the end of 2012 with $135 billion in sales; however, growth in international countries slowed to 7.4% from 15.2% the year before. Wall Street Journal (Oct 24, 2013)
Falabella Posts Double Digit Sales and Profit Increases
Chile’s largest listed company, Falabella, saw an increase of 28.2% in net profit to to 76.59 billion pesos ($152.3 million) in the third quarter. This results both from an increase in sales due to the opening of six new stores as well as a one-time tax charge that occurred in the third quarter last year.
Consolidated sales rose by 13.1% to 1.6 trillion pesos (US$3.1 billion). Same store sales were strong in all countries except Colombia, where SSS in department stores dropped 7.4% due to nation-wide protesting. SSS grew 8.5% in Brazil, 4.3% in Peru, and 26.9% in Argentina. At home, SSS grew 8.2% in department stores and 6.4% in home improvement.
Falabella operates department stores and home improvement stores in Chile, Peru, Argentina, and Colombia. The company also recently purchased home improvement chain Dicico in Brazil. The company also found success this quarter with a higher penetration of private label and a higher mix of import goods. Reuters (Nov 13, 2013)
AMAZON UK flaunts its festive figures
Amazon in the UK said it sold 4.1 million items on Cyber Monday this week, compared to 3.5 million items the same time last year, making it the retailer’s biggest shopping day ever.
Planet Retail (Dec 4, 2013)
