Retail

Hong Kong demonstrators risk muddling the message

19 July 2019

As the city's tycoons will attest, scale comes at a cost. Protests first focused on extraditions to the mainland, but as the leaderless movement has grown, so too have flare-ups around issues like border traders. That is hitting business; it may also squander a chance for change.

Amazon could be a smart shopper in Southeast Asia

8 July 2019

The U.S. e-commerce giant pushed into Singapore in 2017, but hasn’t tackled the region's larger, faster-growing markets. Indonesia’s $7 bln Tokopedia and Alibaba-owned Lazada are among those scrapping for dominance. Amazon would be a formidable rival if it bought Sea's Shopee.

Muji wannabe’s $1 bln IPO tests power of mimicry

5 July 2019

Miniso, brash Chinese rival of the minimalist chain, is considering a listing. The Tencent-backed seller of toys and gadgets cultivates a Japanese feel. The challenge will be to convince investors that its valuation belongs with slick Tokyo peers, not pile-em-high 100-yen shops.

Sainsbury’s stagnation adds pressure for new plan

3 July 2019

The UK retailer’s sales fell for the third quarter in a row. After the failed merger with Asda, CEO Mike Coupe has cut prices and invested in stores. But his strategy is not bearing fruit, and a chaotic Brexit could further hurt. Coupe needs to come up with a bolder strategy.

Casino takes baby step on road to redemption

28 June 2019

The French grocer has simplified its Latin American structure. The bankruptcy of Casino’s parent company Rallye frees it to recapture some value for investors, and offloading stakes in Latam supermarkets would cut leverage. A focused French business could be an easier sell.

European IPO investors show reassuring rationality

27 June 2019

VW’s truck unit and telco Africa Airtel will sell shares at the bottom of their respective ranges while Global Fashion Group cut its price. Unlike recent U.S. mega-floats such as Uber, valuations were cheap. It’s a welcome sign credulity has limits despite buoyant stock markets.

H&M gets too much credit too soon

27 June 2019

The Swedish fashion retailer’s shares rose 10% after strong June sales. The company also said it would sell more clothes at full price and divert more resources to its online business. But to fully deserve the richer valuation, a drop in the operating margin has to be reversed.

Metro raid is an opening salvo in longer battle

24 June 2019

Czech and Slovak investors have offered 5.8 bln euros for the German wholesale retailer. Though they speak for more than 30% of the shares, a 3% premium looks measly. To rebuff the assault, Metro CEO Olaf Koch needs to convince sceptical investors about his turnaround.

Carrefour beats a dignified retreat from China

24 June 2019

The French retailer is selling its China operations to Suning after over two decades in the market. Valued at 1.4 bln euros including debt, the price looks decent given Carrefour’s slowing sales. For Suning and partner Alibaba, it opens a new front against Tencent and JD.

Ontario gives succor to Hudson’s Bay activist

18 June 2019

The Canadian province’s pension plan has ended a deal to sell shares to the retailer’s chairman at the same price he is now bidding for the whole company. That suggests common ground with investor Jonathan Litt, who says the buyers can pay more than the $1.3 bln offered so far.

Walmart e-commerce flies on, using Jet.com’s parts

13 June 2019

The $311 bln retailer is folding much of the upstart it bought in 2016 into its own business. While Jet.com never took off at scale, it helped revitalize the U.S. behemoth’s online sales. Focusing on its core brand underlines Walmart’s key advantage over Amazon: physical stores.

Philip Green escape is bad omen for UK high street

13 June 2019

The British retail baron saved his empire by pushing through an aggressive restructuring. Landlords agreed to cut rents by up to half, despite the risk that other tenants will demand similar discounts. The deal shows the fragility of UK retailers – and the property they occupy.

Reckitt’s new face has a lot to prove

12 June 2019

The maker of Nurofen and Durex has chosen PepsiCo executive Laxman Narasimhan to be Rakesh Kapoor’s successor as boss of the 45 billion pound group. An outsider may bring fresh remedies. But the first-time CEO will have his work cut out to fix the problems facing his new employer.

Jeff Bezos adds fasting to meal-delivery menu

11 June 2019

He’s closing Amazon Restaurants after it failed to get much business. That leaves the likes of Grubhub, Uber and DoorDash trying to dominate a capital-hungry market with ever decreasing margins. Leaving them at the table looks like the smart move.

Hudson’s Bay needs more from WeWork-backed bid

10 June 2019

The executive chair and other shareholders want to take the Canadian owner of Saks Fifth Avenue private for C$1.74 bln. While that’s a 48% premium, it’s also an opportunistic lunge with C$1.5 bln of cash coming in. Retail is suffering, but the company’s property has real value.

The Exchange: Dick’s sticks to its guns

10 June 2019

Dick’s Sporting Goods lost sales, customers and suppliers when it banned assault-style weapons from its stores last year. Over a year later, boss Ed Stack tells Breakingviews what he learned from taking a stand on gun violence, and addresses his newer challenge of China tariffs.

Elliott tries to rip up the retail history books

7 June 2019

The investment firm could make a handsome return buying U.S. bookseller Barnes & Noble for about $500 mln and copying the formula that revived its UK chain Waterstones. The challenge is that Barnes & Noble is far bigger, while retail has a habit of getting lost in translation.

Skincare M&A craze enjoys anti-aging protection

7 June 2019

Charmed by niche brands’ fast growth and disruptive power, consumer groups like Unilever are paying up to snatch the next hot cream. Gleaning the true benefits of such splurges is hard. But a growing taste for toxic-free serums and a greying client base will offer rich fillers.

IPO gives pet store chain’s creditors sloppy kiss

3 June 2019

Chewy is seeking to go public at a $7.2 bln valuation, more than double what private-equity owned PetSmart paid for the online business in 2017. That deal ended up making the overleveraged PetSmart’s lenders howl. The listing price, if it sticks, should help them settle down.

Dick’s assault on gun violence goes click not bang

29 May 2019

Over a year after it banned assault-style weapons, the U.S. sporting goods retailer’s sales and profit have held up. Chain stores sell only a fraction of America’s guns, limiting the impact. But Dick’s example suggests companies don’t have to pay a price for being principled.