European Retail Correspondent, Zurich
Emma's Feed
Aug 8, 2014

Adidas marketing push an uphill battle against ‘cool’ Nike

BERLIN (Reuters) – Sportswear firm Adidas (ADSGn.DE: Quote, Profile, Research, Stock Buzz) probably thought it had hit the marketing jackpot when Adidas-sponsored Germany beat Adidas-sponsored Argentina to win the Adidas-sponsored World Cup.    But arch rival Nike (NKE.N: Quote, Profile, Research, Stock Buzz) may have stolen much of its soccer branding thunder with quirky videos, innovative boots and amusing Tweets, not to mention the odd sponsorship coup of its own such as signing up hosts Brazil.    Adidas said it had secured “victory on and off the pitch” at the soccer tournament, providing the highest-scoring boots and generating 22 percent more discussion on social media than Nike.

But more than half the players displayed Nike’s brightly-colored shoes and it was one of Nike’s new lightweight “Flyknit” boots worn by Germany’s Mario Goetze that volleyed in the winning goal.     Nike has been eating into its German rival’s market share and some branding experts and investors don’t believe throwing more cash into marketing will necessarily fix the problem.    Instead, Adidas needs to spot and set more trends and create a buzz among fashion and sports-mad youngsters.    “At the moment, Nike is cool, very cool. If you ask a 20-year-old, they are not going to pick Adidas right now,” said Tammy Smulders, head of marketing consultancy SCB Partners.    “It is not as easy as just writing a check. They need to be doing more of the viral, underground activities which brings out the cool factor of the brand.”

Aug 7, 2014

Metro sells Vietnam cash-and-carry unit for 655 mln euros

BERLIN/FRANKFURT, Aug 7 (Reuters) – Metro AG has
agreed to sell its cash-and-carry unit in Vietnam to Thailand’s
Berli Jucker for 655 million euros ($876 million),
generating funds to invest in the growth of the group and
strengthen its balance sheet.

Metro, which runs Europe’s largest consumer electronics
chain Media-Saturn as well as Real hypermarkets and Kaufhof
department stores in Germany, has been trying to streamline the
business to focus on cash-and-carry and consumer electronics.

Aug 7, 2014
Aug 7, 2014
Aug 7, 2014
Aug 7, 2014

Adidas spending on marketing, stores to hit margins

BERLIN (Reuters) – Adidas (ADSGn.DE: Quote, Profile, Research, Stock Buzz), the world’s second-biggest sportswear firm, cut its profit margin target for 2014 on Thursday, saying it would increase spending on marketing and an expansion of its own-run stores a week after it issued a profit warning.

The German group is now targeting an operating margin of 6.5-7.0 percent for 2014, from a previous 8.5-9.0 percent and down from 8.7 percent in 2013, excluding goodwill impairments.

Aug 6, 2014

Walgreen to keep U.S. tax domicile after buying Alliance Boots

Aug 6 (Reuters) – U.S. retailer Walgreen Co said it
would not use a full takeover of Europe’s biggest pharmacy
chain, Alliance Boots, to move its domicile overseas,
following fierce criticism of such tax-cutting deals at home.

Walgreen will buy the 55 percent it does not already own of
Alliance Boots for 3.13 billion pounds ($5.3 billion) in cash
and 144.3 million shares, giving a total deal of about $15
billion.

Aug 6, 2014
Aug 6, 2014

Walgreen to keep U.S. tax domicile as buys Alliance Boots

By Emma Thomasson

(Reuters) – U.S. retailer Walgreen Co (WAG.N: Quote, Profile, Research, Stock Buzz) won’t use a full takeover of Europe’s biggest pharmacy chain Alliance Boots [ABN.UL] to move its domicile overseas, it said on Wednesday, following fierce criticism of such tax-cutting deals at home.

Walgreen said it would exercise an option to buy the 55 percent it does not already own of Alliance Boots for 3.13 billion pounds ($5.3 billion) in cash and 144.3 million shares, giving a total value for the deal of about $15 billion. It took a 45 percent stake in 2012 and was expected to buy the rest.

Aug 6, 2014