Page 36 - March 2021

MARK FAITHFULL

Following

the Money

Mark Faithfull crunches the numbers as he looks at
analysis and expansion that reflects changing markets

AmAzON, WALmART, RELIANcE bATTLE fOR ALdI AImS TO bEcOmE ThIRd bIggEST
INdIAN RETAIL US gROcER by STORES
ndia’s Supreme Court handed Amazon a lifeline on 21 he soaring expansion of German hard discounter Aldi shows no
February in what may be Amazon’s last stand in a fight for signs of slowing as the value grocery chain backs Instacart, kerbside
I India’s vast retail market. The stakes could hardly be higher T collections, expanded e-commerce and 100 new stores to propel it to
in a billionaire stand-off between Amazon boss Jeff Bezos and become the number three US grocer by stores by as early as the end of 2022.
India’s richest man, Mukesh Ambani. Coast-to-coast expansion will be backed by Aldi’s 26th regional headquarters
The winner-takes-all legal battle will likely determine who and distribution centre, plus expanded e-commerce offerings and increased
holds the cards in a three-way struggle between Reliance - in-store technology as it moves toward more convenient payment systems.
India’s largest retailer - Amazon and Flipkart owner Walmart, Aldi will focus on Arizona, California, Florida and the Northeast and it will
to reach Indian consumers, who in terms of potential riches further expand its e-commerce offering through 2021. Aldi already has more
are behind only the Chinese and US retail markets. Amazon is than 2,000 stores across 37 states, with expansion on track to make it the
in a race against time to stop Ambani from buying up local rival third-largest grocery retailer by store count by the end of 2022.
Future’s 1,500 fashion and grocery stores in a $3.4bn deal and In the meantime, Lidl has plans to open 50 new stores by year end in a
expanding his JioMart venture, which delivers daily essentials $500M investment. The stores will be located in Delaware, Georgia, Maryland,
from a vast network of shops. New Jersey, New York, North Carolina, Pennsylvania, South Carolina and
Local hero Reliance has home field advantage, while chairman Virginia, bringing the grocer’s total number of US stores to more than 150. Lidl
Mukesh Ambani also has form as a disrupter. Reliance has US President and CEO Johannes Fieber has refocused the launch management
businesses in power, oil, retail and telecoms and runs outlets team’s expansion toward neighbourhoods that can be serviced from nearby
for global brands, including Hugo Boss and Burberry. And in distribution centres.
2019 Reliance bought toy shop retailer Hamleys.
The courts gave Amazon a temporary stay, as they barred
Reliance Industries from acquiring the ailing Future Group after
it missed a bond payment late last year, tanking its credit rating. LULU gROUp OpENS ALL-fEmALE STAffEd
Future, in deep distress after India’s coronavirus lockdown, STORE IN SAUdI
has argued that it will collapse if the deal does not go through,
endangering 25,000 jobs. s part of the 200th store-launch initiatives, Lulu Group has
However, Amazon has alleged that the sale breaches a inaugurated the first-ever all-female staff store. Lulu Express in
contract it has with subsidiary, Future Coupons - which markets A Jeddah, Saudi Arabia is fully managed by a team of 103 women, led
and distributes gift and loyalty cards - that bars Future from by Maha Mohammed Alqarni, General Manager.
selling its retail assets without Amazon’s consent. In October, Located near King Abdul Aziz University, in a retail space of 37,000sq ft,
an arbitration panel in Singapore called for the deal to be iced the new express store, which is also the 20th in Saudi Arabia, is home to
pending a final verdict, and Amazon appealed to India’s Supreme grocery essentials, fresh food, health and beauty and household products.
Court. The Supreme Court has now concurred the NCLT “At present, we employ 3,000 Saudi nationals including 800 women in all
should park the deal until it has heard the case, scheduled the hypermarkets across the Kingdom,” said Shehim Mohammed, Director
during March. of Lulu Group Saudi Arabia.

50 RETAIL & LEISURE INTERNATIONAL NOVEMBER 2018
36 RETAIL & LEISURE INTERNATIONAL MARCH 2021