Retail

Target deserves as much investor love as Walmart

20 November 2018

Owners wiped 11 pct off the retailer’s stock after it just missed estimates. Yet soaring online revenue and a rise in same-store sales show Target, like Walmart, is dealing well with shoppers’ changing habits. Its larger rival, though, sports a better multiple on lower margins.

M&A can bring relief to Asia’s crowded skies

19 November 2018

Too many carriers, with too many planes, offering cheap fares have left the industry on its knees, and put price controls back on the agenda. Consolidation is a better fix. With Indonesia’s Garuda taking over a rival and India’s Jet Airways in play, a turning point may be near.

Levi Strauss IPO would be financially retro

16 November 2018

The jeans group may go public more than 30 years after a family-led LBO. It has done well in the recent retail turmoil that hit the likes of Nordstrom and a mooted $5 bln valuation looks fair. But the skinny from Levi’s own ups and downs is that staying private is a better fit.

Walmart ticks all the right boxes on the home front

15 November 2018

The retail giant reported better-than-expected U.S. sales at its stores and raised guidance for the year. E-commerce is humming along too. Investments in India and China have hit some bumps. But after Amazon warned of slowing growth, Walmart’s steadiness gives it an edge.

Tencent armour shines in battle with Beijing

14 November 2018

The $330 bln tech titan beat earnings expectations despite a regulatory crackdown on its videogames business. Investment gains helped, but strength in advertising and mobile services also shielded profitability. Now boss Pony Ma has a sword to swing at rivals like NetEase.

U.S. companies seek to kick big pharma addiction

13 November 2018

Walmart and Home Depot are fighting back against drugmaker programs that cut patients’ expenses while leaving employers paying full fare. It’s part of an escalating war between providers, insurers and corporations over healthcare costs. The effectiveness remains to be proved.

Jeff Bezos spreads jobs and disappointment

13 November 2018

By splitting his ballyhooed HQ2 between New York City and greater Washington, the Amazon boss can tap deep pools of tech talent. But the unconventional choice aggravates the socioeconomic divisions that plague America. It also exposes the year-long exercise as somewhat of a sham.

Singles’ Day haul offers Alibaba temporary relief

12 November 2018

The e-commerce titan said sales hit $31 bln during this year's Nov. 11 event, another record and an impressive, though cooler, 27 pct increase on last year. That will ease some worries over Chinese consumption. Still, a day of online bargains is a poor indicator of future growth.

Richemont’s Alibaba tie-up can’t come soon enough

9 November 2018

The luxury watchmaker’s sales growth is lower than where it was, and where rivals are. An obvious way to expand is to hike online sales. Teaming up with the Chinese digital giant would give Richemont a greater chance of parity with European luxury peers.

Coty’s troubles add fetid base note to M&A boom

7 November 2018

The U.S. perfume maker is hitting cost-saving targets from buying P&G beauty brands for $12.5 bln. Yet doing so has upended its supply chain just as the acquisition gave it scale in the market’s weakest segment. It raises questions about what constitutes dealmaking success.

Dick’s fires starter pistol for smart-gun market

2 November 2018

The $3.6 bln U.S. retailer that ditched AR-15s in February would support selling guns that can only be fired by their owner, an idea the industry traditionally hates. The previous stand on safety dented sales but helped profit. If this one takes off it could be good for both.

Alibaba feeds fears of cooling Chinese consumption

2 November 2018

Quarterly sales hit $12 billion, but the e-commerce titan missed expectations and trimmed guidance. That suggests local shoppers and advertisers may be pulling back. It won't reassure investors rattled by trade tensions and lacklustre spending during a big October holiday.

Reckitt’s best activist repellent is out of reach

30 October 2018

The Dettol maker faces sluggish sales and falling margins, with factory disruptions only part of the problem. Its hygiene division could be worth 22 bln pounds but spinning that off in the next year or two would incur a big tax bill. Pushy investors may want action before then.

Amazon’s ad initiative is a useful add-on item

25 October 2018

The $870 bln company doubled third-quarter sales mainly pertaining to advertising. As a challenger to Facebook and Google, both mired in data scandals, Jeff Bezos’ firm risks negative attention. But the extra sales help and, thanks to other revenue streams, it has less to lose.

Moutai makes flammable fuel for China’s stimulus

26 October 2018

As companies bid for contracts tied to Beijing’s infrastructure surge, many may toast deals with a bottle of China’s best-known liquor. The $110 bln spirit maker offers a boozy play on government spending, but a sales surge could embarrass graft enforcers, prompting a crackdown.

Amazon’s HQ2 losers may end up as big winners

24 October 2018

The $860 bln e-commerce giant will pick its second headquarters soon. Only one city will be chosen, but Jeff Bezos’ outfit invests and hires prodigiously in many urban areas and will surely continue to do so. The winner may have to work hardest of all to justify its giveaways.

Gucci owner is unreliable beacon for luxury sector

24 October 2018

Kering’s upbeat view on Chinese demand sparked a rally in high-end stocks. But the group has so far been less vulnerable to economic swings than rivals thanks to its social media savvy. And the outlook for spending may be less rosy if China’s consumer confidence is any guide.

Amazon throws darts on the Indian high street

24 October 2018

The e-commerce giant is pumping money into local bricks-and-mortar stores. Turning offline, as it has done at home, underscores boss Jeff Bezos’ ambition. It’s also a hedge against rival Walmart, should New Delhi allow foreigners freer rein in supermarkets and department stores.

New threats cloud Benetton’s lasting legacy

23 October 2018

Gilberto Benetton led the Italian group’s diversification from garments into concessions. His vision protected the business from the threat of globalisation. But even seemingly stable assets like infrastructure, as the Genoa bridge tragedy shows, can hide great perils.

UK landlord pain weakens M&A foundations

23 October 2018

The value of Intu's assets fell another 3 pct just as the mall operator tries to persuade bidders led by its own deputy chairman to up their offer. Investors seem sure neither side has a strong hand. A second failed deal would leave a heavily indebted Intu even more exposed.