Tesco sells Seoul for a decent price 7 Sep 2015 The UK grocer is offloading its South Korean unit for $6 bln-plus in Asia’s largest-ever buyout. That’s a solid result given wider market wobbles and falling margins at Homeplus. South Korea’s burgeoning private equity market and a paucity of big deals in the region helped.
Tesco’s global hopes can survive Korea sale 4 Sep 2015 Britain’s biggest grocer is close to selling its supermarkets in South Korea, reports say. The mooted 4.3 bln stg proceeds would cut net debt in half and relieve operational headaches. Yet an exit need not be the end of Tesco’s international ambitions.
Yoox glee at Net-a-Porter exit may wear thin 3 Sep 2015 Shares in the upmarket online retailer popped 5 pct as Net’s founder cashed out of the merger agreed in March. Terms of the severance deal with Natalie Massenet confirm that Yoox bought its rival at a bargain price. But it is losing know-how at an important time.
LVMH’s bite out of Apple is digital coming-of-age 2 Sep 2015 The French luxury group has poached a top Apple music executive to head its online operations. It’s a significant move in a sector that has been wary of the net. It also cranks up the heat on the sector’s e-commerce leader Burberry and recently merged Yoox/Net-a-Porter.
El Corte Ingles deal marred by dynastic feud 31 Aug 2015 The Spanish department store has ousted a dissident family shareholder after it objected to the 1 bln euro stake sale to a Qatari Sheikh. That seems draconian, even if the terms of the deal lately look better for the Sheikh. It reflects the big challenges facing the company.
Hermes shows real luxury is a scarce asset 28 Aug 2015 Despite quadrupling sales in 10 years, the French group has kept supply below demand better than listed rivals. An operating profit margin of almost 33 percent has helped it dismiss sector woes with a Gallic shrug. The 50 percent premium to peers looks steep but justified.
Luxury faces tough quest for next big market 27 Aug 2015 China’s slowdown and weaker currency have hit share prices of bauble-peddlers LVMH and Swatch. The hunt is on for luxury’s next hotspot. India and Brazil show promise, but a mix of scale, rising incomes and inequality is elusive. Better opportunities may be closer to home.
Alibaba still looks pricey despite selloff 25 Aug 2015 Less than a year after its $25 bln offering, the web giant’s shares have fallen below their $68 IPO price. Growth worries have afflicted all technology stocks and Chinese ones in particular. But Alibaba’s core e-commerce business is still highly valued compared with its rivals.
Indian e-tailer’s funds will disappear in a flash 19 Aug 2015 Online marketplace Snapdeal is raising $500 mln from investors led by Alibaba and Foxconn valuing it at $5 bln. Securing more big-name backers is a coup for the Indian start-up. But the huge discounts it offers to lure buyers and sellers means the new funds won’t last long.
Wal-Mart’s "investment" in wages may pay off 18 Aug 2015 Lower oil prices and rising consumer confidence should make it a great time to be a low-end retailer. Yet margins at America’s biggest store chain are being squeezed by rising pay. As labor markets tighten and lawmakers push higher wage floors, Wal-Mart may have the last laugh.
Amazon swaps more than size with Wal-Mart 17 Aug 2015 The $250 bln online retailer recently surpassed its bricks-and-mortar rival in terms of market value. The goliath led by Jeff Bezos also finds itself in another spot Wal-Mart will more happily cede: defending workplace practices. Like its rival, Amazon too will find wisdom.
John Malone takes home shopping over the top 17 Aug 2015 Buying Zulily, a flash-sale site for moms, would increase online revenue at the cable mogul’s QVC broadcast arm from about 40 pct to half. The target’s growth is already slowing quickly, however. And at $2.4 bln, or 38 times EBITDA, the deal reveals the high cost of chasing Amazon.
Alibaba’s golden-child status hangs by a thread 12 Aug 2015 The Chinese e-commerce group’s disappointing quarterly revenue growth pushed the shares close to last year’s float price. Investors haven’t much challenged founder Jack Ma’s free rein so far. A weakening business and over $100 bln of lost market capitalisation may change that.
Next Neiman sale may be more luxurious than last 11 Aug 2015 Ares and Canada’s largest pension fund bought the luxury retailer from a TPG-led investor group in 2013. Growth and a plan to pay down debt with offering proceeds suggest Neiman could be worth $4.6 bln. That would be a better return than its previous buyout owners managed.
JD.com CEO takes small step toward good governance 10 Aug 2015 Richard Liu will forgo a salary in return for a 10-year option plan that only pays out if the Chinese online retailer’s share price rises. It’s an improvement on last year’s $591 mln bonus. Yet Liu’s $7 bln stake and super-voting shares mean he is still firmly in charge.
Coca-Cola bottling deal targets irksome tax hiccup 6 Aug 2015 Merging three of the drinks giant’s bottlers could create savings worth around $2.8 billion. The new company may even sell a few more sodas. But an undeniable draw for Coca-Cola Enterprises owners is that after the deal the group will have less need to keep the U.S. taxman sweet.
Metro cashback would spice up slow-mo turnaround 6 Aug 2015 The German retailer needs pep. Growth is lacklustre, margins are thin and Russian woes mean the shares’ underperformance may persist. Metro has offloaded 5 bln euros in assets and lowered its debts. A special dividend would perk up a disappointing valuation.
Carrefour suggests Tesco can retain global goals 31 Jul 2015 The French retailer is performing better in Latin America and Asia than at home, while its similarly sized UK rival might sell foreign assets to relieve balance-sheet strain. But if Tesco can live with the debt, it might be emboldened by Carrefour’s global shopping experience.
Jailed Chinese tycoon’s deal deserves a hard time 30 Jul 2015 Huang Guangyu wants to sell $1.45 bln of stores to GOME, the Chinese electrical chain he founded. The complex, pricey-looking, and as yet poorly explained deal would give him majority control. Outside investors, who get a say, must ask if this is really the best they can get.
Gucci’s smart sales don’t yet signal new look 28 Jul 2015 Promising first-half sales at Kering’s main luxury brand sent shares up in early trading. A weak euro, Chinese shoppers in Europe and discounts in Asia boosted revenue 11.8 pct. But Gucci still needs more work to close the group’s 17 pct price-to-earnings discount to peers.