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%.
Reese Witherspoon tries to make deal stars align 6 Sep 2023 The “Wild” actor is selling 70% of her Draper James clothing line, two years after Blackstone backed a buyout of her media firm. George Clooney and Dr. Dre showcase the allure of celeb brands, but ones involving Jessica Simpson and Jessica Alba turned fame to financial shame.
Drugstores lack obvious remedy for what ails them 5 Sep 2023 Walgreens boss Roz Brewer is leaving after her efforts to diversify the $20 bln company, including in-house doctors, delivered only spotty results. Rivals had the same idea, lifting the cost. Online retailers also are squeezing the business. More urgent care looks necessary.
Capital Calls: Microsoft in the EU, Dollar General 31 Aug 2023 Concise views on global finance: The software giant will sell its Teams communications app separately from other software in the European Union; the discount retailer’s poor results reflect a more resilient US economy.
Body Shop sale may give Natura skin-deep makeover 30 Aug 2023 After offloading Aesop for top dollars, the Brazilian beauty giant may struggle to fetch the cosmetics brand’s original $1 bln price tag in a sale. The M&A spree reversal will simplify Natura’s structure. But sprucing up its surviving Avon arm and other labels looks hard.
Instacart’s mixed bag has valuation opportunities 28 Aug 2023 The food delivery firm is worth far less than its high point in 2021. The cost to get new customers is rising, too. But a push to sell ads, a sensible business, could help bring its valuation close to $17 bln. As long as Instacart is reasonable, it can get its listing, finally.
US retailers lace up for battle on two fronts 25 Aug 2023 Shares in retailers like Foot Locker and Macy's have tumbled this week after unveiling dim outlooks. Price-conscious consumers are part of the problem, but others, like Dick’s Sporting Goods, are also citing theft. Both are big issues, and neither looks to be improving.
Rolex’s deal is ticking time bomb for retailers 25 Aug 2023 Shares of Watches of Switzerland slumped 28% after the timepiece-maker bought retail chain Bucherer. The fear is that the luxury group wants to sell directly to consumers. Building a store network won’t be quick but WoS’s business model, and its independence, are under threat.
Capital Calls: Walmart’s Goldilocks moment 17 Aug 2023 Concise views on global finance: The $431 bln US retailer’s valuation has held up much better than Target and Amazon, validated by another strong quarter. But it has done that only by keeping its multiple steady.
Capital Calls: Target’s bullseye 16 Aug 2023 Concise views on global finance: The $60 bln retailer reported better-than-expected second-quarter profit, sending shares up some 8%. The reaction overlooks some big problems and puts faith in factors beyond the company’s control.
‘Lipstick effect’ boosts beauty’s resilience 15 Aug 2023 Despite rising inflation and sluggish spending, beauty and skincare have bucked the trends dragging on other parts of retail. Tarang Amin, CEO of e.l.f. Beauty, explains in this Exchange podcast how the $400 bln-plus segment can survive economic hardship.
Capital Calls: FC Barcelona’s $1 bln SPAC deal 11 Aug 2023 Concise views on global finance: The Spanish soccer club is merging its media arm with a blank-check firm. Pinning its value on the franchise’s social-media followers is worthy of a red card.
Coach and Michael Kors design a raggedy ensemble 10 Aug 2023 Tapestry’s $8.5 bln purchase of Capri would unite the luxury brands and could help it defend share against European giants like LVMH. Adding 8 times the buyer’s debt load to juggle a big turnaround while maintaining a squeaky-clean credit rating looks less prudent.
Everyone is trying to steal Amazon’s cloud thunder 3 Aug 2023 Growth at the $1.3 trln company’s AWS cash engine leaped a low bar, beating expectations but lagging peers. With rivals increasingly leaning on cloud and AI hype, boss Andy Jassy’s task of keeping enough share to buoy improving but less-profitable operations gets ever tougher.
Fast-fashion wars are warmup for Amazon battle 1 Aug 2023 E-commerce app Temu is taking on larger rival Shein in selling cheap Chinese-made goods to Western consumers. The company owned by $119 bln PDD offers a broader range, making it more like an online dollar store. That puts it on a collision course with the $1.4 trln US titan.
Capital Calls: Sequoia, Heineken, Moneyball 31 Jul 2023 Concise views on global finance: The venture capital firm issues a refund to cryptocurrency investors; the $57 bln brewer slashes its operating profit outlook; Steve Cohen’s New York Mets baseball team and its whopping $364 mln payroll is a mess, but in sports beta is the alpha.
Unilever new broom’s best sweep is towards Asia 25 Jul 2023 The $137 bln Dove shampoo maker hiked prices without losing many sales in the first half. Yet falling European volumes and limited scope for structural tinkering make it hard for new CEO Hein Schumacher to boost margins. His best hope is to bulk up in his strongest region.