Carrefour’s edge on Tesco is no French paradox 28 Jul 2016 The Gallic retailer’s first-half revenue grew 2.9 percent, and it has better sales and profit margins than Tesco. That’s not surprising: the UK has strong price deflation and Carrefour had a head start in battling the discounters. Yet Tesco’s online nous may narrow the gap.
Dixon: Stock markets too sanguine about Brexit 28 Jul 2016 Investors think the UK will settle easily into a new deal with the European Union. More likely there will be cabinet wrangles, tortuous negotiations with the EU, and an unsatisfactory conclusion.
Amazon drone lift-off is a mixed blessing for UK 27 Jul 2016 The online retailer got permission from the British government to test drone deliveries, while the U.S. is more cautious. Industrial use of drones could do wonders for Amazon’s spiralling costs. But safety issues and job automation mean there may be losers too.
UK slaps capitalism in its “unacceptable” face 25 Jul 2016 Lawmakers angry at retailer BHS's collapse are mulling further regulation to protect jobs and pensions. The fiasco epitomises what Prime Minister Theresa May decries as "anything goes" business. It takes UK corporate life into interesting - and potentially painful - moral areas.
LVMH hints at timely wardrobe edit 25 Jul 2016 Selling Donna Karan to U.S. fashion company G-III for $650 million is a rare fashion cast-off for the French luxury group. More underperforming brands may be sold as global sales of designer goods slow. That presents opportunities for smaller but ambitious luxury players.
Sports Direct scandal debunks UK employment glory 22 Jul 2016 UK lawmakers have issued a damning report on the retailer and say working conditions hark back to Victorian times. Founder Mike Ashley has big problems to fix. But there’s a wider economic malaise if workers put up with such poor treatment even when the jobless rate is very low.
Mega beer merger develops case of the shakes 21 Jul 2016 An offer of 71 billion pounds that SABMiller accepted from AB InBev in November no longer looks generous - and not just because sterling has plunged. SAB’s board still has time to push for a better deal, or at least get a second opinion.
Profit upgrade puts Zalando back in fashion 19 Jul 2016 The German online fashion retailer has calmed worries about competition from Amazon by raising full-year operating profit margin guidance by around a quarter and forecasting strong revenue growth. While shares are up by a fifth in a day, valuations can grow richer still.
Steinhoff gives Poundland investors easy way out 13 Jul 2016 The South African group is paying 597 mln pounds for the UK retailer. That's below where Poundland listed in 2014, but a 22 pct premium to its 60-day average share price. With the retailer's margins set to fall and market uncertainty, investors have a simple way to cash out.
ASOS makeover will get fresh lift from weak pound 12 Jul 2016 The online fashion retailer beat expectations with 30 pct sales growth. Sterling's Brexit-induced weakness will help it keep prices low and grab market share. With lots of room to grow, and solid execution, ASOS might be able to live up to its sky-high valuation.
Alibaba highlights hurdles in Russia’s pivot east 12 Jul 2016 Moscow wants closer economic ties with China, rather than dealing with an unfriendly West. But Russia's poor business climate makes life hard for Chinese companies, although they are used to draconian rules at home. Even e-commerce giant Alibaba has only made modest inroads.
Burberry finally owns up to ill-fitting C-suite 11 Jul 2016 Marco Gobbetti will succeed Christopher Bailey as the UK brand’s CEO, with the latter staying on as design chief. Investors cheered, as it could improve Burberry’s below-par sales performance. The risk is Bailey sees what looks like a demotion as a demotivation.
Wal-Mart learns limits of divide and rule in China 11 Jul 2016 The U.S. giant's Chinese employees used social media to co-ordinate nationwide strikes. That will make it harder to cut cosy deals with local governments. Telecom giant China Unicom has also faced cross-country protests. But foreign firms tend to enjoy less official protection.
Kellogg’s café is millennial-friendly billboard 8 Jul 2016 The $29 bln food giant just opened a cereal outlet in Times Square. Despite the big-name restaurateurs involved, it's unlikely to challenge McDonald's for breakfast or nearby candy stores for dessert. Lazy millennials aside, it's more like a novel advertising gimmick aimed at reviving sales.
British retail sleepwalks into Amazon-ageddon 8 Jul 2016 Real-world stores are burdened with poor demand, too much property and thinning profit. The U.S. tech giant, meanwhile, is hiring 1,000 UK staff and pushing into fashion and groceries. The UK's economic problems could be a decisive moment in the online land grab.
UK fashion profit risks becoming too skinny 7 Jul 2016 British retailers M&S and Next were losing ground to foreign rivals like Zara even before sterling’s sharp drop boosted the cost of sourcing clothes from Asia. Few can pass on higher costs to thrifty shoppers. Brexit will make it even tougher to regain share and mend margins.
Yoox Net-a-Porter can dodge luxury doldrums 6 Jul 2016 Federico Marchetti snapped up rival luxury site Net-a-Porter on the cheap last year. Shares have fallen of late and the luxury sector as a whole is struggling. But with revenue at the merged group set to grow 20 percent annually, the online bit of the market looks healthier.
Sainsbury’s finds super-cheap isn’t super-cheerful 4 Jul 2016 The UK grocer will close the Netto brand of low-cost supermarkets that was meant to challenge Lidl and Aldi. Budget food retail is set to grow 40 percent over the next five years. But the bigger retailers don't necessarily need to join the discounters to beat them.
Goldman’s BHS faux pas is cost of doing business 30 Jun 2016 The investment bank admitted its reputation was not enhanced advising retail magnate Philip Green on the sale of the now-bust UK retailer. Indeed it wasn’t. But courting the rich and colourful is just another kind of trade. Sometimes it brings revenue, sometimes it brings costs.
Adidas enlists House Kardashian in siege of Nike 29 Jun 2016 The German sportswear maker signed up hip-hop superstar Kanye West in a partnership just after Nike announced weak quarterly results. Adidas still lags its swoosh-logoed rival in market share and profitability. Adding Mr. Kim Kardashian to its ranks may help close the gap.