FROM THE DESK OF DEBORAH WEINSWIG

Are We at Peak Inflation? In May, US consumer prices inflation (CPI) accelerated to a new 40-year high, at 8.6%. In the UK, inflation reached 9.1% in May (also a 40-year high) and in Germany, May’s rate stood at 7.9%. Many will be hoping that this metric peaked in the latest reported month. However, the consistency of the upward trend across countries indicates no meaningful cracks in the wall of rising prices in May: Away from the US, only two of the 35 countries for which Eurostat (the European Commission’s statistics office) records CPI registered a sequential easing of inflation in May (those were Iceland and the Netherlands). Worldwide, the principal drivers of inflation are energy, gasoline and food prices. We expect each of these three categories to remain elevated in the back half of the year owing to the economic consequences of the Russia-Ukraine War and now heat waves affecting US farming. However, the scale of those pressures could soon start easing. The US Energy Information Administration (EIA) estimates pin the 2022 peak prices for both gasoline and oil in June 2022, with both metrics sequentially easing in absolute terms, although remaining solidly up year over year. The EIA forecasts retail prices of gasoline to be at $3.95 per gallon in December, down from an estimated $4.70 per gallon peak this month. Given the knock-on impact of high gasoline and energy prices on industries, those projections imply that June or July could be the peak for overall US CPI. EIA data imply an estimated 34.8% rise in US gasoline prices across 2022, followed by a 10% decline in 2023. It expects oil prices to come down by a roughly similar degree next year. Should those falls materialize, they should have a multiplier effect on CPI. In the US, we expect retail-specific inflation to moderate in the coming months in a context of softened consumer demand for a number of discretionary categories, from electronics to fashion to furniture. Meanwhile, any ramping up of production and distribution in China, post lockdowns, will ease supply-side constraints in nonfood retail. However, uncertainty is perhaps the only certainty in regard to inflation right now, and numerical forecasts, including economic forecasts, are rarely completely accurate. Moreover, the EIA projects US electricity prices to rise next year, so it is not all positive news on the energy front. In addition, we see a greater uncertainty over food prices heading into 2023, given the potential for the Ukraine conflict to be drawn out and the natural uncertainty of weather events to hit crop yields. For 2022, meanwhile, a number of indicators suggest we could be approaching a peak inflation rate, if indeed we have not yet reached that.

US RETAIL AND TECH HEADLINES

Kroger Expands Its Fleet of Next-Generation Fulfillment Centers (June 21) Company press release

• Supermarket chain Kroger has announced the launch of a new automated customer fulfillment center (CFC), which will be located in Aurora, Colorado, spanning 300,000 square feet and employing up to 400 people.
• The CFC will be Kroger’s sixth automated fulfillment center that uses advanced robotics and other solutions including sorting technology, artificial intelligence (AI) and automation. The technology is powered by UK-based online grocer Ocado Group.

Lowe's To Assist Builders To Create a New World of Possibilities in the Metaverse (June 21) Company press release

• Home-improvement retailer Lowe’s is debuting in the metaverse with the launch of 500 three-dimensional (3D) product assets available for download for free via Lowe's Open Builder, a new asset hub available to all Web 3.0 creators.
• Lowe’s will also release a non-fungible token (NFT) wearable collection for builders in the Decentraland metaverse environment for the first 1,000 Lowe’s Open Builder hub participants who link to their MetaMask cryptocurrency wallet. The NFTs will be accessible via a free airdrop.

Sprouts Farmers Markets Accepts SNAP Payments for Instacart Orders (June 20) SupermarketNews.com

• Grocery retailer Sprouts Farmers Markets has announced that it has started accepting Supplemental Nutrition Assistance Program (SNAP) payments for Instacart online grocery orders across its chains.
• The SNAP initiative allows eligible low-income individuals and families to pay for food via a dedicated payment card.

Walgreens Collaborates with Buckeye Health To Provide In-Store Health Care (June 21) Company press release

• Drugstore retailer Walgreens Boots Alliance is expanding its Health Corner concept with the opening of five stores in northeast Ohio. The Health Corner stores are staffed by pharmacists and registered nurses and provide screenings, medical appointments and health advice services.
• The company is set to open 45 new Health Corner locations by the end of 2022, taking its total up to 100.

Walmart Implements Innovative Onboard Technology To Provide Drivers with Interactive App (June 20) Company press release

• Walmart is working to improve its driver experience with new tools that provide real-time visibility across its network of 12,000 drivers through an interactive tablet.
• The company is collaborating with telematics infrastructure and transportation technology company Platform Science to deliver the upgrades.

EUROPE RETAIL AND TECH HEADLINES

Ahold Delhaize Belgium Lowers Prices on Private-Label Products (June 20) Company press release

• Netherlands-based supermarket chain Ahold Delhaize’s Belgium unit is set to reduce prices of 500 basic products from its private-label line in an effort to combat inflation. The price reductions range between 5% and 30%, according to the company.
• Ahold Delhaize will also run more promotions through its SuperPlus program, which offers discounts on products with a high nutritional value.

Danone Reduces Costs by Condensing Its Product Line (June 20) RetailDetail.eu

• French food brand owner Danone is reducing its product range to cope with rising transport, oil and packaging costs amid the war in Ukraine and the ongoing pandemic measures in China.
• While the company will not slash any product lines entirely, managing fewer variations in produce and packaging is set to reduce its costs.

Deliveroo’s Quick Commerce Arm Deliveroo Hop Expands with Supermarket of Dreams (June 20) Company press release

• British online food delivery company Deliveroo has expanded its quick-commerce delivery service, Deliveroo Hop, in partnership with grocery retailer Supermarket of Dreams.
• Through the partnership, customers in Holland Park, London, will be able to order premium groceries including fresh fish and meat, restaurant meal kits, pastries and household essentials.

Ocado Funds International Tech Roll Out (June 20) Company press release

• British online grocery retailer and technology company Ocado has raised £578 million ($704 million) in funding from its investors to expand its technology arm, Ocado Technology, internationally.
• According to the company, the funding will help it accelerate innovation in the building processes for robot-powered warehouses that pick and pack grocery orders for its international clients, such as US supermarket chain Kroger, French grocer Casino and Canadian supermarket chain Sobeys.

Rohlik Raises Funding for Technological Innovation (June 20) RetailDetail.eu

• Czech online supermarket Rohlik has raised €200 million ($210 million) from Belgian investment fund Sofina and several existing investors to expand further and invest in technological innovation.
• Rohlik plans to use its new funds to automate its distribution centers and purchase electric vehicles. The retailer aims to expand in existing markets and launch in new markets, including Hamburg, Bucharest, Madrid and Milan.

ASIA RETAIL AND TECH HEADLINES

J&T Express Partners with Foodpanda for Next-Day Delivery (June 21) RetailAsia.com

• Singapore-based logistics firm J&T Express and online food and grocery delivery platform Foodpanda have entered a strategic partnership to offer next-day delivery via the delivery app’s online marketplace.
• As part of the launch, Foodpanda will be providing free delivery on orders placed for J&T Express next-day delivery through August 31, 2022

Miniso Launches Its First Flagship Store in Malaysia (June 21) InsideRetail.asia

• Japanese lifestyle retailer Miniso has launched a flagship store in Malaysia, at the Shah Aalam mall in Selangor. According to the company, the store spans 685 square meters and offers a family-friendly shopping experience while also targeting young, tech-savvy consumers.
• The flagship store features a substantial toy section that occupies 20% of its floor space. Along with Miniso’s signature toy collection, the flagship store offers a variety of licensed products from well-known brands.

Nykaa To Acquire Little Black Book (June 20) Entrackr.com

• Indian beauty-centric online marketplace Nykaa is in the final stages of talks to acquire local discovery and e-commerce platform Little Black Book (LBB).
• In April 2022, Nykaa invested in skincare company Earth Rhythm, wellness company Nudge Wellness and athletic wear company KICA. It also acquired domestic skincare company Dot & Key, before going public in November 2021, and acquired jewelry brand Pipa Bella in April 2021.

Rainforest Raises $45 million in Series A Round (June 21) TechNode.global

• Singapore-based e-commerce brand aggregator Rainforest has raised $45 million in a Series A funding round led by Canopy Tropics, backed by Southern Capital Group. In addition to returning investors, the round also included January Capital, Insignia Venture Partners and Monks Hill Ventures. Since Rainforest's inception in January 2021, it has raised over $100 million in funding.
• Rainforest CEO and Co-Founder JJ Chai said, “This financing round provides us a capital advantage in the region and helps accelerate our path towards building a compelling house of brands for the modern mum. We look forward to making further acquisitions, growing our stable of brands and bringing new and innovative products to market.”

Xpressbees Launches Same-Day and Next-Day Delivery (June 21) YourStory.com

• Indian end-to-end logistics unicorn Xpressbees has launched same-day and next-day delivery platforms targeted at direct-to-consumer (DTC) and traditional brands.
• According to the company, same-day delivery is available in 51 cities in India, covering more than 1,600 pin codes. Next-day regional delivery services 8,200 pin code areas over 1,000 towns and cities.