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Lidl to back British fruit/veg farmers | Walmart, JD.com to cooperate

US: Safeway banner launches in Florida
The first Safeway store has opened in Orlando, Florida, marking the entry of the banner into the state for the very first time. The retailer, which is now part of Albertsons, has opened in a former Albertsons location following a $10m renovation, and will be the first of three to open in Florida this year. The Safeway format provides Albertsons with an opportunity to test a fresher and premium-focused shopping experience. (igd.com)

Walmart and JD.com form strategic alliance

Walmart has sold its Chinese online grocery store in return for a stake in the country's no. 2 e-commerce firm, ripping up its previous strategy in efforts to cure ailing sales in one of the world's toughest retail markets. The deal will see the U.S. grocery giant swap its Yihaodian platform for a 5% stake in JD.com, worth about $1.5bn by the firm's latest market value. The move also gives Walmart a ringside seat in JD.com's bitter rivalry with Chinese e-commerce leader. For JD.com, the deal could provide a boost in its intensifying competition in the fast-growing online grocery business with Alibaba - a market set to boom to nearly $180bn by 2020 from $41bn last year, according to data from food research body IGD. (Reuters)

Lidl makes 'fruit and veg pledge' to back British farmers
A “fruit and veg pledge” which promises to to protect fruit and vegetable growers and improve relations between producers and retailers has been signed up to by the Lidl supermarket chain. They become the second retailer to do so. Drawn up by the National Farmer’s Union (NFU), the pledge will see the supermarket chain make a commitment to treat suppliers fairly and offer greater price certainty to growers. They will also commit to paying suppliers on time, reducing waste and increasing the proportion of British fruit and vegetables available for consumers to buy, when they are in season. (inews.co.uk)

India: New online grocery store launched
An E-commerce store onlystaples.com that sells online grocery, fruits and vegetables was launched here today. The initial focus was to target the city and Tier II cities in Tamil Nadu and depending on maturity of the business model in these markets, it would be taken to other cities, including by way of franchisee model, CFO and Director of the company, Rajesh Keerthi told reporters here. Items like vegetables and fruits would be purchased and sold on a day to day basis for freshness. Items like vegetables and fruits would be purchased and sold on a day to day basis for freshness. (timesofindia.indiatimes.com)

AU: IGA to lose $87m a year to Aldi: UBS
The risk of a price war is growing and Metcash is the “most likely to lose”, investment bank UBS has warned in a grim assessment of the prospects for the struggling supermarket wholesaler. In a note to investors on Monday, retail analyst Ben Gilbert predicts Metcash stands to lose around $87m a year in sales over the next three years as German discounter Aldi expands into its home territory of South Australia and WA. (news.com.au)

Sainsbury’s trialling one-hour delivery app

Sainsbury’s is trialling a one-hour delivery app, called Chop Chop, in the London borough of Wandsworth. According to the app description on iTunes, Chop Chop will allow customers to order anything from Sainsbury’s Wandsworth Store and get it delivered within one hour. (postandparcel.info)

AU: 7-Eleven makes first round of repayments
Almost $690,000 will be given to ripped-off 7-Eleven workers in the first round of repayments since an independent panel overseeing the process was sacked. The company said on Tuesday that 21 claims, totalling $686,000, had been approved in the wake of the wage repayment scheme going internal. (au.news.yahoo.com)

UK: Morrisons' treatment of suppliers again highlighted by watchdog
Morrisons has been forced to repay cash and discipline staff after it was found to have breached the grocery market code of conduct for a second time by demanding lump sums of about £2m from suppliers. The grocery market watchdog said Morrisons admitted to making 19 requests which were above and beyond agreed deals with suppliers in contravention of an industry code in place since 2009. (theguardian.com)

Paris mayor is unhappy with Amazon delivering groceries
Amazon’s Prime Now is the latest on-demand service to anger French officials. After Amazon introduced the express delivery service in Paris last week, that city’s mayor raised concerns about it hurting local business and increasing pollution. “This operation may seriously destabilize the Parisian trade balances,” the city’s Mayor Anne Hidalgo said on Monday in a press release. She questioned the service’s legality, said that there should be “safeguards” to prevent “unfair competition against traders and craftsmen.” (fortune.com)

US: Save Mart changes corporate name
Save Mart Supermarkets said Monday it has changed its corporate name to The Save Mart Companies to reflect “the collective strength of the corporate entity” and the variety of banners under which it operates. (supermarketnews.com)

7-Eleven store cops record penalty for exploitation of workers

The operator of a 7-Eleven store involved in rampant exploitation of its workers has been handed a record court penalty of more than $400,000. The penalty follows revelations in Fairfax Media about systematic underpayment of workers in 7-Eleven stores around the country. (smh.com.au)

India: Government allows 100% FDI for online grocery startups
In a boost to retailers and grocery startups such as Bigbasket and Grofers, the government on Monday allowed 100% FDI in food retail, including through e-commerce, provided such items are produced, processed or manufactured in the country. This will allow multi-brand retail giants such as Walmart to look at their food business here closely and perhaps even foray into B2C food retail. (timesofindia.indiatimes.com)

AU: Woolworths takes on convenience stores
Woolworths has thrown down the challenge to the convenience store sector with the opening of its inaugural small outlet, offering a range of fast food for the time-poor shopper. The new store will also offer fresh and packaged groceries. (smh.com.au)

Morrisons faces £20m liability over struggling My Local chain
Morrisons is facing a potential liability of up to £20m as My Local, the group that bought the Bradford-based group’s convenience store chain, looks at options for the business, including administration. More than 2,000 jobs are at risk as My Local, which operates 120 stores, has brought in accountancy firm KPMG. (theguardian.com)

Simply launches online store in Italy
Italian supermarket chain Simply has launched an online store, initially available to customers in the city of Milan and surrounding areas. After accessing SpesaSimply, consumers can purchase their shopping online, choosing the day and time for home delivery, at a fee. (esmmagazine.com)

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