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.
Dixons Carphone’s strong year offers weak comfort 29 Jun 2016 The British electrical goods and phone seller said like-for-like sales grew 5 percent last year. Its pro-Remain boss says leaving the EU may not be disastrous. The company does look strong relative to rivals like Darty, but the outlook for consumer spending is hugely uncertain.
Local brands lead race for China’s savvy consumers 29 Jun 2016 From shampoo to snacks, upstart Chinese companies are challenging foreign rivals, a new report shows. They heed digital trends, adapt to local tastes and respond to customers' increasingly sophisticated demands. Western firms that don't follow their lead risk being left behind.
Tesco finds chink in cheap rivals’ armour 23 Jun 2016 The UK grocer delivered a second consecutive quarter of like-for-like sales growth. Its new strategy? Sell low-priced produce but brand it as if it were expensive. Simple as it sounds, shoppers are duly buying more goods. Tesco is finally getting to grips with its competition.
Wal-Mart picks right battle in China with JD deal 21 Jun 2016 The U.S. giant is selling its local website to rival JD for $1.5 bln in stock. Wal-Mart only recently took full control of the unit. But battling Alibaba and JD would have been difficult and costly even for the world’s top retailer. Now it can focus on boosting offline sales.
Ferragamo boss spells out new reality for luxury 20 Jun 2016 The Italian shoemaker’s chief says the label will focus on widening profit margins as sales become unpredictable. Cost cutting helps, but many problems in the luxury sector are self-inflicted. Rapid expansion and price hikes during the good times leave fewer options now.
Poundland’s bargain bin status is in question 16 Jun 2016 The single price discounter is being eyed by South Africa’s Steinhoff. With shares off by a third since a 2014 flotation, Poundland looks relatively cheap. But online pressures, a struggle to integrate a recent acquisition and tough UK trading will make its suitor cautious.
Inditex makes other retailers look shabby 15 Jun 2016 The owner of Zara can be relied on for two things: keeping up with fast-changing fashion trends and delivering healthy results. Its first quarter performance is no exception, though gross margins dipped. Investors can count on it outpacing peers like H&M through the seasons.
Jimmy Choo’s best feature: unfashionable lateness 15 Jun 2016 The luxury shoemaker's shares have sagged 24 percent since its IPO, somewhat unfairly. It is on track to increase revenue by 11 percent this year, and is less affected by the Asia slowdown than bigger luxury groups. Dragging its heels in China now looks like an advantage.
McDonald’s super-sizes its faith in the Windy City 13 Jun 2016 The Golden Arches’ move from the suburbs to Chicago proper shows tech and finance aren’t alone in seeking big-city talent. It’s not just another sign of urbanization. It’s a vote of confidence in the junk-rated city, though Mayor Rahm Emanuel still has his work cut out for him.
Turnaround whizzes 3G could shake up diversity too 13 Jun 2016 The Brazilian investors aim to revitalize stodgy brands like Burger King. There’s work to do on their boards, though. The restaurant holding company’s all-male lineup looks very 20th century. A shareholder failed to force action, but 3G risks distraction if it doesn’t catch up.
Tesco demonstrates the art of the subtle U-turn 9 Jun 2016 The UK supermarket may sell the restaurant chain it bought three years ago to lure customers to its larger shops. It was an experiment that didn’t work. With fierce competition and excess store space, retailers need new ideas. Investors may have to put up with a few wrong turns.
Flabby Lululemon needs founder’s exercise regimen 8 Jun 2016 Chip Wilson wants to make the $9 bln athletic-clothes maker’s board more accountable for profit slipping as revenue expands. That has left Lululemon lagging rival Under Armour. Sweating out costs would boost performance. Wilson’s robust stake makes him a formidable taskmaster.
Russian retailers can expand but they can’t hide 2 Jun 2016 A devalued rouble and deep recession have hit Russian shoppers. More are going to open-air markets for bargains instead of Western-style retail chains. To compensate for less spending per capita, the big supermarkets are building in every place they can reach.
Hermes shows scarcity is still a classic 1 Jun 2016 A Birkin handbag fetched $300,000 at auction in Hong Kong, a new world record - even though sales in the wider luxury sector are hitting the skids. The lesson for rivals is that rarity still elicits demand. That's cold comfort for luxury brands that have grown too big
German discounters open new front in trolley wars 27 May 2016 Lidl is investing 6.5 billion euros to soup up its stores, half of that outside Germany; peer Aldi is upgrading too. That will advance their attack on the middle market. If they can do it without raising prices, big rivals like UK grocers Tesco and Sainsbury will be in trouble.
Activist pushes on U.S. retailer’s open door 26 May 2016 Hedge fund Barington wants two board seats and costs slashed at struggling Chico’s. It owns just a 1.4 pct stake at the $1.5 bln seller of women’s clothing. The company also is already shaking things up with its own new qualified directors. This investor aggression is overdone.
European IPO market regains its senses 26 May 2016 Danish renewable energy utility DONG priced its initial public offering at up to $16 bln, suggesting a forward EBITDA multiple in line with stricken carbon-heavy peers. If it sounds dull, that’s the point. European IPOs are still a buyer’s market, but maybe now a rational one.
Debenhams plucks new CEO from arms of its nemesis 26 May 2016 Amazon is the worst thing that could happen to stodgy old department stores. Yet that’s where Britain’s Debenhams found new boss Sergio Bucher. That makes it one of a handful of UK high-street names headed up by a digital ace. The hire sounds odd, but could be inspired.