If Amazon, why not Walmart? 25 Oct 2023 Lina Khan’s FTC argues the e-commerce giant’s dominance leaves sellers and customers little choice, even though shopping habits vary. The agency also targets common pricing strategies. By this logic, it’s hard to see what’s so different from the Walton family’s mega-retailer.
Rite Aid can do more wrong in bankruptcy 17 Oct 2023 Ill-advised acquisitions, mismanagement, and the growth of more diversified rivals contributed to the drugstore chain’s demise. But its role in the US opioid epidemic was the real killer. Rite Aid wants to restructure, but an eventual sale may be the end game.
Capital Calls: Birkenstock flop 11 Oct 2023 Concise views on global finance: The sandal maker took a tumble, as its shares opened more than 10% below the IPO price, leaving questions about its venue and valuation.
Pepsi has long way to go to win Ozempic challenge 10 Oct 2023 The $222 bln maker of Mountain Dew and Cheetos increased operating profit 14% after its seventh consecutive quarter of jacking up prices by at least 10%. Volume is slumping, however, and anti-obesity drugs are just starting to make their mark. Growth is bound to get tougher.
China’s consumers look more golden closer to home 9 Oct 2023 Domestic tourists splurged $103 bln over Golden Week, marking the busiest holiday in five years. Yet fewer consumers are venturing further afield, including to Hong Kong, while those who do spend less. That’s a smaller problem for Beijing than it is for the rest of the world.
India’s consumers are surprisingly fragile 5 Oct 2023 Despite near-8% economic growth, weak demand is prompting Unilever and Nestle’s local units to launch multiple low-priced packs of soap and noodles. More official handouts, like an extension to a free food scheme, will be something for companies to both cheer and worry about.
Retailer ‘shrink’ becomes too big to box up 3 Oct 2023 American stores lost $73 bln to theft last year, a nearly 20% rise from 2021, while Target just blamed crime for nine closures. Few chains report specifics, however, stirring doubts about anecdotal evidence. Consistent disclosure would help keep investors from getting fleeced.
Indonesia spoils TikTok’s Southeast Asia party 28 Sep 2023 The region’s largest economy is banning social media outlets from hosting direct sales on their platforms. That’ll hit ByteDance’s short-form video app hard: it has 125 mln Indonesian users and the country is its main e-commerce market. So much for mixing business with pleasure.
Amazon has a poor man’s monopoly 27 Sep 2023 Trustbusters sued the $1.3 trln retailer over how it restricts merchants on its site. But it has lost ground to rivals like Walmart thanks to bad M&A and retail losses. Amazon gets the worst of two worlds: strong enough to worry regulators, vulnerable enough to concern investors.
Bankers’ IPO support could easily buckle 26 Sep 2023 Arm, Instacart and Klaviyo egged on opening pops for their listings by selling a meager number of shares, but have fallen since. While big debuts are good for the companies, their inability to outpace a still-weak market means the opportunity for others to follow remains narrow.
Capital Calls: Disney, Cazoo 20 Sep 2023 Concise views on global finance: Boss Bob Iger’s $60 bln splash on theme parks and cruises invites further scrutiny of the Magic Kingdom’s wild cash flow ride; the UK-based online car retailer, valued at $7 bln in a SPAC deal two years ago, is handing the keys to bondholders.
Instacart under-promises in hope of overdelivering 19 Sep 2023 The grocery delivery service’s shares started trading at $42 apiece, 40% higher than where it priced last night. That may seem wacky, but at $14 bln, Instacart is still reasonably valued. In this market, it’s a wise strategy for boss Fidji Simo.
IPO candidates are trying to flip the FOMO script 18 Sep 2023 Arm’s IPO investors got a 25% return on the first day. Instacart began its roadshow with a low number, only to bump it up. Klaviyo just lifted its price range. Companies and their bankers are finally getting an open window. Creating envy over big debuts will help it stay open.
Ambani’s retail backers dispel only a little doubt 15 Sep 2023 Asia’s richest man is raising funds at the shopping unit of his Reliance Industries. Infusions from KKR and Qatar signal a $100 bln pre-IPO valuation, twice some analyst estimates, but there are caveats. A few more endorsements from new financial investors would go a long way.
French iced tea feud will inflame grocer wars 14 Sep 2023 Carrefour is warning customers that suppliers like Unilever are raising prices on drinks and other goods by shrinking packages. The move will keep the government on side in its war against inflation. But smarter shoppers may hunt for bargains and go to discounters Lidl and Aldi.
Birkenstock risks stepping into fashion fad trap 13 Sep 2023 Riding a sales boost from the Barbie movie, the German footwear brand has filed for a US listing. Its potential $8 bln valuation rests on shoppers continuing to love its iconic sandals. For IPO-hungry investors, Dr. Martens’ crushed bling ambition is a cautionary tale.
Grocers learn lessons of ‘greedflation’ drama 12 Sep 2023 Food-price rises are easing, which is good news for supermarkets that stand accused of profiting from consumer pain. In this Exchange podcast, Ahold Delhaize CEO Frans Muller explains why demand for own-brand goods gives the Dutch group an upper hand in supplier negotiations.
Instacart offers IPO investors a free lunch 11 Sep 2023 The grocery-delivery service is seeking a $9 bln valuation, a fifth below its last internal benchmark. Growth and high retailer concentration are risks, but its advertising business is getting unfairly short shrift. The company’s steep post-Covid discount is priced to move.
Daniel Zhang leaves Alibaba under a cloud 11 Sep 2023 The $230 bln e-commerce group’s outgoing boss has also stepped down as chief of its key computer services unit. The sudden decision upends what seemed a smooth transition of power. It may also delay AliCloud’s spinoff, and with it hopes of boosting the parent company’s valuation.
Auto strike may put Carvana’s turnaround on detour 7 Sep 2023 A walkout at Detroit’s Big Three automakers may freeze new-car supply, pushing up old vehicles’ prices. Yet that’s bad news for the used-car dealer, which books fatter profit when inventory is cheap. Supply snarls threaten a re-run of post-pandemic woes that tanked shares by 99%.