Weekly News Wrap: Alibaba cut 19,000 employees last year; Woolworths attributes in-home dining boom to inflation
And US-based retailer Foot Locker is in talks with Metro Brands for India entry.
From Bloomberg
Alibaba Group reduced its workforce by about 19,000 employees last year as it adapted to a global economic chill and shifted focus to cost efficiency.
The Hangzhou-based online retailer let go of more than 4,000 workers in the final quarter of the year, according to data in its earnings report Thursday. The largest reductions this year came in the summer when it reported its first-ever contraction in revenue.
The company’s growth has been stunted by global macroeconomic factors and China’s stringent Covid Zero policy, with lockdowns blunting consumer spending. Alibaba said in May that it will take a “more disciplined” approach to spend and scale back expenses in areas that aren’t generating long-term value.
From Reuters
Top Australian grocer Woolworths Group said an inflation-driven shift away from dining out was helping to lift sales, sending its shares higher after its half-year profit beat forecasts despite cost pressures.
Woolworths and smaller rival Coles Group have experienced wild swings in Australian consumer behaviour since COVID-19 lockdowns in 2020 sparked grocery stockpiling. Sales cooled once lockdowns lifted in 2021, and again through 2022 as soaring energy and wage bills pushed up shelf prices.
But cost-of-living pressures - from soaring power bills to nine interest rate hikes since last May - were now starting to benefit supermarkets as shoppers opted against out-of-home consumption, Woolworths said on Wednesday.
Food sales since the start of 2023 were up 6.5%, almost in line with inflation, compared to growth of just 2.4% in the six months to end-December, the company said.
From Reuters
U.S. footwear and sportswear retailer Foot Locker is in talks with Metro Brands to enter the Indian market, ET Now reported on Friday.
Foot Locker, which retails popular footwear brands including Adidas and Nike, is in discussions with four Indian players to appoint a franchise, ET Now tweeted. The details of the companies were not disclosed.
Foot Locker and Metro Brands did not immediately respond to Reuters requests for comment.
The rising affluence in the country and a shift in consumer spending from mom-and-pop stores to bigger chains have set Metro up for sales gains, Metro Brands Chief Executive Nissan Joseph told Reuters on Wednesday.
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