Supermarkets

Ocado cash call delays profit delivery slot

11 June 2020

The 15 bln pound online retailer raised over 1 bln pounds to fulfil global demand for its warehouses. CEO Tim Steiner’s plan takes advantage of a near-doubling in its share price since the pandemic. But capital-intensive investments mean investors face a longer wait for earnings.

Corona Capital: Crisis loans, Jet fighting

3 June 2020

Concise views on the pandemic’s corporate and financial fallout: Bank customers are no longer making a dash for cash, loan drawdowns suggest. Meanwhile, a U.S. block on Chinese passenger flights suggests domestic battles haven’t dimmed President Trump’s desire to make China pay.

Corona Capital: Payments M&A brawl, Endeavor

7 May 2020

Concise views on the pandemic’s corporate and financial fallout: Payments firm Wex’s attempt to ditch a double deal for two UK rivals will face legal pushback and perhaps Elliott Management’s ire. Talent agency Endeavor’s 2018 Epic Games investment is starting to come in handy.

Hoarding to extend sell-by date of tired brands

17 April 2020

Consumers stockpiled pantries and freezers with long-life grub, boosting dowdy products like frozen Hot Pockets. Unilever and Nestlé had been tilting towards higher-end brands. Lockdowns will force CEOs and investors to reconsider the value of what’s in their cupboards.

Corona Capital: Latin America and Covid-19

8 April 2020

Concise views on the pandemic’s corporate and financial fallout: Six Latin American countries want a $15 billion loan to help fight Covid-19. "There's no harm in trying" says Peru's president, a sad sentiment reflecting the global shortage of needed equipment.

Meal couriers can gain by cutting the grocery line

1 April 2020

The likes of Uber Eats and Deliveroo may suffer from lockdown-induced restaurant closures. Meanwhile, grocery giants are struggling to deliver all the tinned goods and pasta that punters desire. That’s a recipe for cooperation, and perhaps profits for the cash-starved sector.

Corona Capital: Rich vs. poor, Carnival

31 March 2020

Concise views on the pandemic’s corporate and financial fallout: The rich may save even more while the coronavirus rages while the poor will be further squeezed, and Carnival tries to bail out its sinking cruise business with a big sale of equity and debt.

Corona Capital: Dining bonds

20 March 2020

Concise views on the pandemic’s corporate and financial fallout: Restaurant industry cooks up a unique form of funding to help alleviate revenue wipeout.

Sysco may risk indigestion with stodgy German meal

5 March 2020

The $36 bln cafeteria supplier is eyeing European wholesaler Metro. It’s an odd move for new CEO Kevin Hourican, who led CVS’ pharmacy roll-out. Europe’s weak growth and profitability mean he would need a bargain to make the deal work. And the target’s noisy owners won’t help.

Thai IPO tests waning market enthusiasm

20 February 2020

Central Retail shares opened flat on their debut. Cornerstone investors helped it price near the top of its range, although the economic timing couldn’t be worse. Thailand’s listing market has stayed hot even as post-IPO performance has cooled. One of these trends can’t last.

Thai tycoons set for uphill battle over Tesco Asia

6 February 2020

The UK grocer could sell its Asian assets for $9 bln. As the Thai economy slows, foreign buyers are steering clear, leaving the country’s most powerful families to duke it out. With antitrust watchdogs alerted, and financing issues aplenty, a smooth checkout looks unlikely.

UK grocer goals betray scale of climate challenge

28 January 2020

Sainsbury’s has pledged zero emissions by 2040, 10 years ahead of the UK goal. That’s good, but like many banks and oil groups, the cuts only affect CO2 the company itself produces. For businesses to decisively tackle global warming, they need to cut what’s emitted by customers.

Sainsbury’s new CEO will need outsider’s mindset

22 January 2020

The UK grocer’s operations director, Simon Roberts, will succeed Mike Coupe in June. The new chief executive’s three decades of experience in retail will be useful. But he may have to rewrite his predecessor’s plans if he wants to deliver better returns for shareholders.

French demos poor excuse for Casino earnings miss

17 January 2020

The retailer’s shares slumped after it said trading profit in France rose just 5% in 2019 – half the previous guidance. On a call with analysts Chief Financial Officer David Lubek blamed recent pensions protests. The unconvincing explanation hints at bigger problems.

Albertsons IPO would call on Cerberus’ tamer side

14 January 2020

The buyout firm may reprise plans to list the U.S. grocery chain after at least two previous tries. It’s not a bad moment to try and sell a retailer. But Cerberus is known for its tough approach to deals. After 14 years holding on to Albertsons, it may be necessary to soften up.

Tesco Christmas furore flags limits of ESG crusade

23 December 2019

The UK grocer may have sold greeting cards made by prisoners in China. The scandal shows how even firms that appear to embrace their environmental, social and governance duties struggle with forced labour. Stock prices suggest there’s not much pressure from investors for change.

Tesco CEO will bequeath a few trenchant problems

2 October 2019

Dave Lewis will exit in 2020 and leave the UK grocer in better shape than he found it. Yet his successor, Ken Murphy, has to contend with declining market share and a threat of recession. The former Walgreens Boots Alliance executive’s lack of UK food experience is a handicap.

Sainsbury’s strategy rejig is last chance for CEO

23 September 2019

Britain’s second-largest grocer failed to buy local rival Asda. Now Mike Coupe faces shrinking market share, below-par operating margins and a valuation discount to market leader Tesco. More let-downs could cost Coupe his job - or leave the $6 bln group vulnerable to a takeover.

Sainsbury’s stagnation adds pressure for new plan

3 July 2019

The UK retailer’s sales fell for the third quarter in a row. After the failed merger with Asda, CEO Mike Coupe has cut prices and invested in stores. But his strategy is not bearing fruit, and a chaotic Brexit could further hurt. Coupe needs to come up with a bolder strategy.

Casino takes baby step on road to redemption

28 June 2019

The French grocer has simplified its Latin American structure. The bankruptcy of Casino’s parent company Rallye frees it to recapture some value for investors, and offloading stakes in Latam supermarkets would cut leverage. A focused French business could be an easier sell.