Retail

Alibaba rewrites its e-commerce playbook

20 July 2017

China's online giant is trumpeting "new retail": a push into bricks-and-mortar shopping. That could help sustain high growth. But abandoning the asset-light model which has been Alibaba's unique selling point will weigh on profits.

Carrefour unit shows way to Brazil IPO revival

19 July 2017

The French supermarket chain’s local unit raised $1.6 bln in the country’s biggest stock offering in four years. Rising deal flow suggests growing confidence Latin America’s largest economy is getting back on track. But the recovery’s pace is tepid, and sensible pricing is key.

Ericsson throws kitchen sink at the kitchen sink

18 July 2017

The Swedish telecom kit maker has issued its second profit warning in four months. Demand for wireless networks is shrinking faster than thought. At least Ericsson is no longer losing market share, and has put a number on touted cost savings. It can’t afford to disappoint again.

Bond market breathes life into erstwhile zombies

17 July 2017

European investors are refinancing companies like Dutch retailer Hema that not long ago were trading at distressed levels. Such credits are enticing when central banks have squashed yields, and Europe’s economy is recovering. Markets are unlikely to remain so forgiving for long.

Amazon monopoly game will take forever to play out

14 July 2017

The e-commerce titan's Whole Foods deal has sparked fresh fears of its dominance. One hedgie says whispers of a possible congressional review prompted him to short the stock. How antitrust law applies, though, is unclear. For now, consumers and investors probably keep winning.

A trend for Burberry to copy: focus on margin

12 July 2017

The British brand had a good first quarter and is on track to deliver planned cost cuts. That still leaves new boss Marco Gobbetti with plenty to do to rebuild investors’ confidence. A good option would be to follow Saint Laurent’s lead and set a firm operating margin target.

Amazon’s path of destruction is primed to broaden

11 July 2017

The e-commerce giant that decimated booksellers now has supermarkets and department stores quaking in fear. That emotion should be shared by retailers’ suppliers of branded goods. Amazon’s ambitions to sell its own products poses a growing threat to the likes of P&G and 3M.

TalkTalk’s focus on cheap may not be cheerful

10 July 2017

The UK broadband provider’s founder Charles Dunstone wants to grow the business with a focus on value for money. That’s risky in a competitive market, and endangers profitability. The alternative – finding a buyer – could be tricky given the company’s rich valuation.

SoundCloud flags music’s lopsided digital revival

7 July 2017

The German streaming service is cutting 40 percent of staff, according to reports, after Spotify shelved a possible purchase last year. With most of the returns from the industry’s digital renaissance going to labels, streamers have yet to prove they have an independent future.

Victoria’s Secret catches investors gawking

6 July 2017

The intimate-apparel chain badly missed expectations for June sales, prompting the loss of some $2 bln from its parent company's market value. Disappearing shoppers is all too common a refrain these days, and far beyond L Brands. There's no excuse for being sanguine about retail.

John Malone papers over QVC woes with HSN purchase

6 July 2017

Liberty Interactive is taking full control of the home-shopping channel in a $2.1 bln deal. Merging two cable vendors makes sense, and investors should end up with something more valuable than a tracking stock. But a complex share swap alone won’t solve deeper retail challenges.

ABF deserves more credit for retail flair

6 July 2017

Primark clothing stores, which generate half of group operating profit, are faring better than expected. Market share is rising even though the chain shuns online sales and is offering fewer discounts. That kind of retail flair bodes well for ABF’s valuation.

Retail click jobs can brace only so many bricks

5 July 2017

The next decade threatens to doom U.S. workers at the likes of Macy's, Staples and Foot Locker. E-commerce should offset a good portion of the losses. Even assuming a healthy 40 pct increase in such roles, though, a Breakingviews analysis suggests some 600,000 jobs may vanish.

Ocado has a delivery problem to fix

5 July 2017

The UK online grocer’s pre-tax profit fell in the first half and net debt is rising. Its big dream of selling cutting-edge technology to other retailers generates less than 10 percent of revenue. Rapid delivery is imperative at a time when Amazon is prowling the aisles.

Stonyfield deal whipped up by U.S. yogurt frenzy

3 July 2017

France's Lactalis is paying 20 times EBITDA for Danone's yogurt brand, or $875 mln. While American demand has propelled upstarts like Chobani to multibillion-dollar valuations, growth has slowed. It may be hard for the old-school label to woo new consumers.

Amazon deal can help Nike get back on track

30 June 2017

The $96 bln sportswear maker confirmed it will sell its sneakers on Amazon after years on the sidelines. Though still the dominant brand, it has been losing share mainly to Adidas. The initiative, coupled with its own direct-to-consumer push, could make Nike a pacesetter again.

Walgreens salvages mild boost from intense effort

29 June 2017

After antitrust pushback on acquiring the whole of Rite Aid, the U.S. drugstore is buying over 2,000 of its rival's stores for $5.2 billion. For CEO Stefano Pessina, doing about half the deal with half the benefits is something – but it's a modest return on 20 months' work.

Alibaba readies for showdown in Southeast Asia

29 June 2017

The Chinese giant spent another $1 bln to tighten its grip on regional arm Lazada. The extra control could be useful as Alibaba confronts local upstarts, domestic peer JD, and possibly Amazon in the future. All will face formidable challenges, from logistics to payments.

Head-office heave shows Tesco’s weak hand

28 June 2017

The British supermarket is cutting a quarter of staff at its headquarters. This should help with plans to remove 1.5 billion pounds of costs and hit an ambitious 3.5 pct-4 pct margin target. Job losses are an unfortunate symptom of Tesco's limited pricing power.

Russia’s Fridman goes from bitter pill to UK tonic

26 June 2017

The oligarch, once made to divest oil assets by a Russia-averse UK government, has offered a punchy 2.9 times sales for vitamin retailer Holland & Barrett. It’s a new direction, but an uncontroversial one. This time, Britain ought to thank Fridman for the vote of confidence.