El Corte Inglés doesn’t need an IPO 5 Jun 2008 Some familyowned dynasties are forced to go public when younger generations want to cash out. The iconic Spanish department is stuck in such a conflict. But it could afford to buy them out if need be. It is a cash cow and doesn t have global ambitions.
M&S has been punished enough 20 May 2008 The UK retailer's share price has almost halved in a year, largely thanks to poor trading and a major boardroom cockup. That takes the shine off its first £1bn profit in 10 years. But M&S may be more resilient than investors give it credit for.
Will Best Buy go all the way with Carphone Warehouse? 8 May 2008 The US electronics seller is entering a $2.1bn jointventure with the UK retail chain, in which Carphone is selling half its business on the cheap. But given Best Buy s past JVs, this could be the prelude to a full purchase of Carphone s retail arm.
UK consumers won’t shop while houses drop 15 Apr 2008 UK retail sales are stumbling as consumers reel from high food and energy prices and, above all, the declining price of homes. The link between UK house prices and consumer spending is close, and the outlook for retail now looks bad.
Arnault, Colony want driver’s seat at Carrefour 14 Apr 2008 Bernard Arnault, the billionaire, and Colony Capital, the US investment fund, have upped their stake in the French retailer to 10.7%. They re also demanding a third board member. But they need to convince shareholders that their strategy is more than just a creeping takeover.
Blockbuster seeks Circuit City organ transplant 14 Apr 2008 These are two of US retailing's sickest patients. The question is whether Blockbuster s proposed cure a $1.3bn bid for Circuit City will extend their survival rates. As with any experimental surgery, the odds aren t usually good.
Apollo’s dirty laundry could kick off scary era 11 Apr 2008 Its portfolio company Linens 'n Things could file for bankruptcy. It would be the first of the last round of high profile buyouts to go bellyup. Apollo snagged the retailer in late 2005, hardly the peak of the buyout bubble. High leverage will catch up with others, too.
Tesco should come clean over US 2 Apr 2008 The UK retailer has pinned a lot on Fresh & Easy, its US venture, including boss Terry Leahy s bonus. If the stores are now underperforming, as detractors claim, it should say so since this smallish investment carries a big option value.
M&S board to blame for Rose’s plum role 31 Mar 2008 It s outrageous that the UK retailer felt obliged to promote Stuart Rose to executive chairman. But don t blame him. Rose can only hold M&S to ransom because his chairman and board failed to secure a successor.
It’s not Charming to sue activists 12 Mar 2008 Plussize apparel seller Charming Shoppes is suing a pair of activist hedge funds. But as in some other cases, the rabblerousers' gripes merit real answers. Taking the argument to a courtroom looks like a play to avoid giving shareholders the explanation they deserve.
M&S rejig makes best of a bad job 10 Mar 2008 Stuart Rose is to move up from chief executive to executive chairman. Shareholders may think this corporate governance nono preferable to losing the architect of M&S s revival. But the absence of a credible successor pokes a hole in Rose s reputation.
The decline of private equity needn’t lower prices 10 Mar 2008 Financial buyers can no longer afford to outbid industrial rivals in corporate auctions. Some sellers feared that change would lower prices, especially in smaller deals. But BAA´s World Duty Free shops went for a punchy 15 times ebitda without any private equity participation.
Toy safety bill could be a boon for Mattel 7 Mar 2008 Its shares were clobbered by massive recalls of its leadtainted toys last summer. New legislation promises further crackdowns on dangerous products. But Barbie and Elmo have cleaned up their act. New scrutiny could actually benefit Mattel.
Eddie Lampert is no retail quarterback 28 Feb 2008 In his letter to Sears shareholders, the hedge fund maestro likens the retailer's experience to that of Super Bowl winners, the NY Giants, and their star thrower Eli Manning. But as a retailer, Lampert has a lot more to prove than Manning ever did.
Visa’s huge IPO comes with caveats 26 Feb 2008 The $19bn offering will be at a discount to rival MasterCard whose stock is up nearly fivefold since its IPO in 2006. Going ahead with the Visa deal underlines how robust the card business is. Still, a weak economy and tightening by lenders could drag on both groups' growth.
Migros deal shows private equity way forward 15 Feb 2008 BC Partners $3.3bn acquisition of the Turkish supermarket is the first big European LBO postcredit crunch and is a big departure from the traditional model: an emerging market deal, financed by local banks and done with 50% equity. That looks like more risk for the same return.
Best Buy’s warning may have silver lining 15 Feb 2008 The US electronics retailer has fared better than most during the recent funk. Its earnings warning for the year ahead is hardly welcome news for its shareholders. But its competitors have the most to fear.
Swiss watch business ticks even faster 7 Feb 2008 These fancy timepieces don t only resist wear and tear. So far, they re holding up against a hostile economy. Fine craftsmanship helps, but the mainspring is new Asian money. Hong Kong is now a bigger market than the US. The shift provides protection against a global slowdown.
12 steps for Eddie Lampert’s recovery 28 Jan 2008 The hedge fund supremo has recognised that Sears Holding needs an overhaul. Admitting that one has a problem is the first step on the road to recovery. We offer Lampert a 12step method to break the cycle and revive the iconic American retailer.