Just one day after Walmart and China’s JD.com revealed they would collaborate on three new online services, the U.S. retailer announced a $50 million investment in New Dada, the country's largest local on-demand logistics and grocery O2O e-commerce platform. The investment enables grocery delivery from certain Walmart stores. The earlier announcement focused on Sam’s Club and Global Imports stores on JD.com, and two-hour grocery delivery through New Dada, an independent joint venture of JD.com and Dada. New Dada has more than 25 million registered customers and provides local on-demand delivery in 300 cities in China. Walmart has 426 stores in 170 cities.
"Walmart Announces Strategic Investment in China’s largest on-demand logistics and O2O Grocery platform New Dada", News release, Walmart, October 21, 2016
Beauty retailer The Body Shop opened a pop-up store in Toronto’s Yorkville neighborhood, the company’s first in Canada. Designed for testing new installations and activations and promote holiday gifts, the store features iPad tablets that display videos highlighting the retailer’s Bio Bridges rainforest awareness program. Also, the store includes an installation for Body Butter products that tells stories about the company’s partnerships with community-based suppliers of shea nuts and other materials.
"The Body Shop pops up in Yorkville", Marketingmag, October 20, 2016
Walgreens Boots Alliance, Inc. announced adjusted fiscal 2016 fourth quarter net earnings increased 20.3 percent to $1.2 billion over last year, on sales of $28.6 billion (up 0.4 percent). Fourth quarter net earnings per share were $0.95 compared with $0.02 in the same quarter a year ago. The company said increases in net earnings reflect fluctuations in the quarterly fair value adjustments of the company's AmerisourceBergen Corporation warrants. Fiscal 2016 earnings per share declined 4.5 percent from the prior year, to $3.82. CEO Stefano Pessina said, "The exercise of the AmerisourceBergen warrants in August provides an example of the opportunities open to us to deploy capital.”
"Walgreens Boots Alliance Reports Fourth Quarter and Fiscal 2016 Results", Earnings release, Walgreens Boots Alliance, October 20, 2016
Beauty retailer Ulta aims to expand its market share in the next several years by opening new stores, growing its online business, and improving store productivity. Company CEO Mary Dillon said she expects Ulta to double its share of the $127 billion beauty market in the US from the current 4 percent. At the company's latest analyst and investor day, Ulta adjusted comparable-store sales growth forecast for 2017 to 2019 from 5‒7 percent to 7‒9 percent. Also, the company raised its same-store sales growth outlook from 11‒13 percent to 14‒15 percent.
"Ulta Beauty CEO Wants to Double Market Share", CNBC, October 13, 2016
With demand growing for natural and organic personal care products, consumers, especially Millennials, expect these products to be available at their favorite grocery stores. While Millennials do not like going to specialty stores to buy personal care products, many would go to the nearest health food store if their favorite retailer did not sell the natural products they seek, according to Wally's Natural. Despite the growing demand, retailers sometimes cannot distinguish between products labeled as natural and those classified as organic.
"More Than Skin Deep", Grocery Headquarters, October 07, 2016