Burberry self-help makes light work for activists 1 Mar 2017 Billionaire Albert Frere, who was among investors that drove change at Adidas, has built up a 3 percent stake in the trenchcoat-maker. With a turnaround plan and new boss in place, there’s less to do at Burberry. Still, Frere can help ensure the company sticks to its knitting.
Philip Green pays 363 mln pounds for a quiet life 28 Feb 2017 That’s what the British apparel billionaire has put into the pension pot of defunct retailer BHS. It ought to calm politicians who painted Green an enemy of the state. And, anyway, the return from reinvesting his jumbo dividends should cover it nearly twice over.
Target’s wobbly aim will take time to correct 28 Feb 2017 The U.S. retailer reported unexpected top-line weakness and forecast more pain, wiping $5 bln from its market value. Pressure from the likes of Wal-Mart is hurting. A 34 pct jump in online sales is encouraging, but Target will continue to struggle with changing shopping habits.
German wanderlust intensifies U.S. grocery wars 24 Feb 2017 Discount supermarket Lidl is following rival Aldi with plans to open 100 U.S. stores. Armed with an extra-lean business model, Aldi is already succeeding where Tesco, for one, failed. That will add to pricing pressures on traditional food retailers and even the likes of Wal-Mart.
Britain’s takeover regime is worth exporting 24 Feb 2017 “Put up or shut up” rules tightened after Kraft’s Cadbury deal have led to more deals where the bidder makes a firm offer, UK data shows. Generali, currently being stalked by Intesa Sanpaolo, will be envious. It would benefit if something similar was implemented in Italy.
Unilever exposes holes in UK industrial strategy 20 Feb 2017 A takeover of the Anglo-Dutch consumer giant would have tested the prime minister’s vow to defend sectors and workers from foreign buyers. Even though it’s now off, May lacks the tools to deliver on the pledge. Her party would need to ditch its scorn of French protectionism.
Kraft Heinz is a good fire drill for Unilever 20 Feb 2017 Even before the U.S. group dropped its bid, the Anglo-Dutch company wanted to cut costs by 1 billion euros a year. If Unilever can hit the top end of sales and margin targets, its valuation would rise closer to Kraft's offer. Investors are betting such efforts will be redoubled.
Unilever and Kraft risk culture clash too far 17 Feb 2017 The Anglo-Dutch peddler of Dove and Hellman's rejected a $143 bln approach from the U.S. maker of Jell-O and Velveeta. Unilever builds brands while Kraft backer 3G famously cuts costs. While those might not mix easily, the target could learn a thing or two from its suitor.
UK government wakes up to downside of gig economy 17 Feb 2017 Work created by the likes of Uber flatters Britain's unemployment rate. That was convenient to politicians after the financial crisis. The less palatable implications of a surging gig economy are now dawning on Westminster – a potential 3.5 billion pound gap in tax receipts.
McDonald’s finds a flaw in Chinese recipe 17 Feb 2017 The burger chain's $2 bln selloff has been stung by a complaint to regulators. The substance is flimsy, and buyers CITIC and Carlyle can look after themselves. Still, the flap calls into question the idea that strong domestic partners are reliable safeguards against China risk.
Heineken’s pubs tie-up can pass antitrust test 16 Feb 2017 The UK competition body is probing the Dutch brewer's 305 mln stg offer for part of Punch Taverns. Heineken would have serious pricing power, offset only partially by management of the target's pubs by third parties. But Greene King's similar purchase of Spirit got the thumbs up.
Nestle tweaks its recipe, gingerly 16 Feb 2017 The KitKat-maker's formula has for years been: miss targets, sacrifice profit to boost revenue, and serve up an uneasy mix of healthy fare and junk food. New boss Ulf Mark Schneider is starting to tackle the first two. He could shake things up further - if he has a free hand.
Struggling U.S. retailers take aim at border tax plan 15 Feb 2017 CEOs from the likes of Target and Gap are meeting with President Trump to voice concern over proposed border taxes. With store closings and job cuts accelerating, a levy that raises prices for consumers would add to the woes of an industry that's America's largest private-sector employer.
Heineken’s taste for volatile growth faces a test 15 Feb 2017 The Dutch brewer reassured investors by promising to further improve operating margins in 2017. Its confidence owes much to a foothold in rapidly growing beer markets. But increased economic risks and competition in countries like Mexico and Vietnam threaten its optimistic glow.
Prada can grow into frilly valuation 14 Feb 2017 An investor who bought shares in the Italian luxury company's 2011 flotation is 12 percent worse off today. But the slide in Prada’s sales is slowing. If China recovers and the handbag maker makes up lost ground online, its sky-high price-earnings ratio will look more fitting.
Body Shop buyout risks being far from fragrant 13 Feb 2017 L’Oreal is mulling a sale of the UK cosmetic chain. Higher margins at L’Occitane imply a buyout firm with retail nous could squeeze out more profit. But the chain’s fading appeal means its new owner would be just as likely to take a bath – and not a nicely scented one.
China will make or break Reckitt’s $17 bln deal 10 Feb 2017 The cleaning products-to-condoms group is paying $90 a share in cash for baby formula-maker Mead Johnson. Cost savings only cover about half the $3.8 billion premium. Whether it can make up the balance will depend largely on boosting sales in the People's Republic.
Apple sows seeds for India iPhone awakening 10 Feb 2017 The company is nearing a deal to assemble phones in one of the world's fastest growing handset markets. That may lower retail prices and boost potential sales. But lifting Apple's 2 pct market share depends on opening stores and resolving thornier issues like selling used models.
Nordstrom handed a presidential gift certificate 8 Feb 2017 The higher-end U.S. retailer added some $300 mln in market value after Donald Trump deemed a business decision to discontinue his daughter's clothing line a personal attack. By overstepping his boundaries yet again, the president managed to turn shopping into an act of protest.
Russian toy IPO lacks a political risk discount 8 Feb 2017 Detsky Mir has priced its sale of new shares close to Lenta’s 2014 debut. Fair enough: it has a dominant position. Still, the conviction of opposition leader Alexei Navalny in defiance of a European court ruling is a reminder that Russia plays to its own rules.