International Retailers What a gas
In the UK, Tesco and rival Asda have taken advantage of falling wholesale petrol prices to indulge in a price war, offering some of the reductions to punters in an attempt to gain their loyalty and, one presumes, their ancillary purchases. Asda started by cutting the price of unleaded by 9p per litre; Tesco responded by cutting their fuel prices by up to 6.5p per litre. Average prices are already down by 3.68p, so it’s a shrewd if not entirely munificent investment on the part of the rivals. Next, in further evidence that bricks and mortar retail still has a pulse, sales at Amazon’s retail stores, including Whole Foods Market, Amazon Fresh and Amazon Go, rose +12.5% in the second financial quarter, to just north of $4.7bn. Finally, in Kenya, Mauritian conglomerate IBL Group has brought a 30% stake in Naivas Supermarket, from the World Bank’s International Finance Corporation (IFC) and a private French fund. Naivas has 84 stores in 20 towns in Kenya and employs over 8,000 people.
Comment: : Next to South Africa, Kenya has the most advanced retail sector in sub-Saharan Africa. Expect some exciting news from Trade intelligence as we develop our understanding of this market.