Supermarkets

Petrol tycoons’ debt juggle may be a deal too far

31 Jan 2023

The Issa brothers may mesh their grocer Asda together with the UK arm of their gas pump operator EG Group. A deal, worth say 3 bln pounds, would help the shaky forecourt business cut debt, and ease a refinancing cliff. But it would leave the supermarket weaker, amid a price war.

Capital Calls: AI out-buzzes the blockchain

27 Jan 2023

Concise views on global finance: Digital publishing outfit BuzzFeed’s stock surges in part because it’s using AI to help create content. But investors’ excitement is likely to be short-lived.

Consumer spending anomalies are the new norm

29 Nov 2022

High inflation and glum sentiment are changing how people use their money. In this edition of The Exchange podcast, Brookings Institution economist Wendy Edelberg explains what shoppers are loath to give up during times of duress and why strange patterns will persist.

Grocery deal could have European interloper

20 Oct 2022

Kroger’s $25 bln deal for Albertsons inks its position as the second largest U.S. grocer. That has lawmakers nervous. But Stop & Shop owner Ahold is a more palatable partner. Plus jumping into the fray puts it in prime spot to make its competitor pay more or pick up castoffs.

U.S. grocery mega-deal more than checks out

13 Oct 2022

Combining Kroger and Albertsons would create a $50 bln supermarket colossus. The rising cost of wages and food makes the timing look sensible. And if synergies from a past merger are any guide, there stands to be a healthy return. Trustbusters, however, could block the aisle.

Grocers’ crisis defences look shaky

13 Sep 2022

Morrisons lost its top-four UK position to Aldi, while Ocado’s online sales are under pressure. Competition from discounters means supermarkets have less scope to raise prices and protect margins than in past slowdowns. The bleak outlook has yet to reach stock valuations.

Capital Calls: Food fight

23 Aug 2022

Concise views on global finance: Retailers like E-Mart are cutting food prices amid surging costs, risking a sector-wide race to the bottom.

Walmart inflation alarm, Unilever’s pricey remedy

28 Jul 2022

America’s largest private employer’s market value fell $35 bln amid a profit warning. In this Viewsroom podcast, Breakingviews columnists discuss how customers shifting to low-margin food is a harbinger for rivals. Also, the Dove maker is pushing quality versus quantity sales.

Grocers’ plot to replace suppliers may backfire

8 Jul 2022

Europe’s supermarkets are clashing with food makers over price hikes. Replacing goods like Heinz baked beans, as Britain’s Tesco has done, with cheaper in-house brands helps keep margins intact. The painful flip-side is a top-line hit from selling more cut-price substitutes.

Kraft Heinz grocer war, China’s creaking economy

7 Jul 2022

Tesco has pulled products made by the $47 bln baked bean producer over price rises. In this Viewsroom podcast, Breakingviews columnists debate how this loss of variety could open the door for rivals to expand. Also, the People’s Republic’s means of hitting economic goals.

Kraft has secret sauce in UK grocer food fight

4 Jul 2022

Supermarkets like Tesco are dropping the U.S. food giant’s wares after “unjustifiable” price hikes. That earns brownie points from shoppers and shunts politicians’ gaze to Kraft’s beefier margins. But less choice on the shelves may push business to cut-price rivals like Aldi.

Boots deal will add to Reliance’s retail black box

9 Jun 2022

The Indian conglomerate submitted a binding bid for Walgreens’ UK pharmacy chain in a consortium with Apollo. It’s a big pivot for Mukesh Ambani. Opacity around his retail expansion and a determination to win at all costs are a worry. Bulking up will make things worse.

UK grocer buyout creates bond market indigestion

29 Apr 2022

Banks led by Goldman and BNP Paribas that funded CD&R’s $9 bln Morrisons buyout have sold a chunk of the debt at a big discount. Inflation and a supermarket price war mean bondholders can now name their price. The debt hangover may make other deals trickier.

Capital Calls: Electric vehicles

17 Mar 2022

Concise views on global finance: Tesla and BYD price hikes show that EV makers need to push harder to slim down designs and jettison expensive materials.

Capital Calls: Continental, Harley-Davidson

8 Feb 2022

Concise views on global finance: German car-parts maker Continental may spin off its self-driving unit, while the iconic maker of motorbikes has turned supply shortages to its own advantage.

Walmart gets taste of the Lotte treatment in China

7 Jan 2022

Officials lambasted the U.S. retailer for network security problems, in what looks like blowback over allegations that Xinjiang-made products were yanked from shelves. The South Korean chain was hounded out of China by similar methods. Worst case, Walmart could share that fate.

Reheated French grocer deal is still unappetising

6 Jan 2022

Auchan may launch a second bid for $16 bln Carrefour. Roping in private equity would allow it to pay in cash, a more palatable dish for its rival’s shareholders than last year’s offer. Job losses and shaky strategic logic mean the French state will be hard to convince.

Pharmacy bidding war stands to get more feverish

2 Dec 2021

Aussie supermarket chain Woolworths has offered 13% extra to buy Priceline owner API over an agreed deal with Wesfarmers. The premium now stands at a whopping 53%. Deep-pocketed buyers, a frenzied M&A market and the implied returns are a prescription for additional sweeteners.

Capital Calls: Biden’s deficit, Austria lockdown

19 Nov 2021

Concise views on global finance: A nonpartisan analysis finds a $160 billion hole in the U.S. president’s social programs; while new Covid restrictions spark selloff in European airlines and hospitality.

Capital Calls: Google, Twitter, Swedish grocer

10 Nov 2021

Concise views on global finance: The search giant’s defeat in appealing a $2.8 bln EU fine is tolerable if American judges don’t follow; the social media network hopes to charge hardcore U.S. users a monthly fee; ICA Gruppen’s top shareholder takes the $12 bln retailer private.