Retail

Giant LBO brings barbarians to Seven & i’s rescue

13 Nov 2024

The founding Ito family has offered $58 bln to take the 7-Eleven operator private. The whopping deal would stretch Japan’s financing markets and require a management overhaul to generate decent returns. Still, it gives the board another alternative to Canadian suitor Couche-Tard.

Burberry buyer would need steel-plated trench coat

6 Nov 2024

Shares in the $4 bln UK luxury group rose after a website reported that Moncler was eyeing a bid. But the returns on offer look low, while boosting the brand will be costly. Possible suitors require deep pockets, and the patience to wait a long time for any kind of payback.

India’s stock market has a rising local flavour

6 Nov 2024

Food delivery app Swiggy is taking orders for its $1.3 bln IPO, shrugging off the risk of getting caught in any US election-induced global volatilty. It underscores both an urgency by its backers which include SoftBank and an increasingly domestic ownership of equities.

India’s slowdown is touching the untouchable

5 Nov 2024

Shoppers have cut back on the basics for years. The latest company earnings suggest austerity is shifting from the rural poor to urban folks, from biscuits and milk to clothes and cars. Giants like $215 bln Reliance and Unilever are starting to reflect a souring economic reality.

How to harvest cash crops amid a retail drought

23 Oct 2024

Shopkeepers worldwide are wrestling with fickle customers, clunky logistics and more. Tractor Supply, a $32 bln chain that sells everything from chicken feed to overalls, has defied the trends with lush returns on par with Apple and Netflix. There are seeds for peers to sow.

Luxury’s China wobble will accelerate M&A

16 Oct 2024

LVMH lost 7% of its market value after revealing bleak consumer spending in the world’s second-largest economy. The broader sell-off will make small players more vulnerable. But this will create a big opening for cash-rich giants to pounce on already battered stocks like Kering.

Richemont exits online hell, but heaven is way off

9 Oct 2024

The $70 bln luxury group is offloading its ailing platform YNAP in exchange for a stake in US-listed buyer Mytheresa. Chair Johann Rupert gets rid of a loss-making arm. But the sector’s dubious economics make it hard to see how he winds up with a holding that offsets his blushes.

Hey team: Weaker hiring means back to the office

8 Oct 2024

About 100 mln people in North America and Europe now work remotely at least some days. More CEOs, like Amazon’s Andy Jassy, want to end the practice altogether. The tension is upsetting staff and spurring defections, but a rise in joblessness would shift power back to employers.

New consumer CEOs start life in the slow lane

24 Sep 2024

Nike joined Campari, Nestlé and Starbucks in abruptly ditching its boss. There’s plenty of scope for the new CEOs to remedy their predecessors’ missteps. But a common thread at the four groups is slowing sales amid consumer weakness, making the turnaround jobs much tougher.

Nordstrom buyout looks like least bad fit

6 Sep 2024

The US department store chain’s founding family and a Mexican retailer have offered to take it private in a $3.8 bln deal. The share price has risen since a deal was first mooted, but Nordstrom’s prospects haven’t. Its directors ought not to let this one get away.

Couche-Tard gives 7-Eleven owner easy defence path

6 Sep 2024

The Japanese company's board unanimously rejected its Canadian suitor's $39 bln takeover offer. The 21% premium is well short of Seven & i's breakup value. For this deal to be a real test of Japan's receptiveness to foreign M&A, Couche-Tard needs to work a whole lot harder.

7-Eleven owner faces an inconvenient value truth

3 Sep 2024

Seven & i shares leapt on Couche-Tard's approach but trade at a big discount to the sum of its parts. Boss Ryuichi Isaka can speed up his existing strategy but has failed for years to unlock value. New owners have a better shot at helping the $38 bln retailer reach its potential.

Reliance can afford to sit out India’s IPO boom

30 Aug 2024

The annual meeting of Mukesh Ambani’s $245 bln behemoth offered few of the customary big-bang announcements. He's not rushing to fulfil promises made to backers KKR and Meta to list his telecom and retail units. A slim conglomerate discount makes waiting easier for everyone.

Dollar General is being nickel-and-dimed

29 Aug 2024

Rising costs have taken a toll on the low-cost US retailer, whose shares fell 25% Thursday. Sales growth and decent margins suggest the $20 bln company is striking a fine balance over what shoppers get for their dollar. But frugality is rarely fun, for customers or retailers.

Poison pills will hurt Seven & i and Japan

28 Aug 2024

The 7-Eleven owner wants the government to discourage dawn raids on its stock to help defend against a Couche-Tard takeover, per Bloomberg. Such protection would undermine Tokyo's shareholder value push. With other bidders likely, the best course is to encourage a fair process.

PDD black box morphs from magical to alarming

27 Aug 2024

The Chinese e-commerce firm more than doubled earnings, mysteriously defying an economic slump. But sobering comments from Chair Chen Lei on the sustainability of profit erased $55 bln of market value. The Temu-owner could ease the pain of a slowdown by being more transparent.

Japan can afford to keep quiet on 7-Eleven bid

27 Aug 2024

Convenience stores play a special role in the country, so the government must approve any takeover of parent Seven & i by Canada’s Couche-Tard. A veto would undercut an official governance push. Still, the bidder must clear big hurdles before it puts politicians on the spot.

Nestlé’s CEO switch serves up unappetising menu

23 Aug 2024

The $275 bln consumer-goods group is replacing its boss of eight years, Mark Schneider, with insider Laurent Freixe. Weak sales and a sliding valuation probably justify the abrupt change. But investors will fear it heralds a more painful turnaround than they previously expected.

Cheap labour fuels India’s newest e-commerce boom

23 Aug 2024

Quick commerce, which promises deliveries of everything from milk to phones in 10 minutes, is growing five times as fast as traditional groceries. That's due to an army of low-earning workers. Amazon and Reliance want in but the market will be tough for new entrants to crack.

Walmart’s JD sale displays derisking smarts

21 Aug 2024

The US retail giant has offloaded the stake held in its Chinese partner since 2016 for $3.6 bln. With 400 stores of its own in the People’s Republic, Walmart isn’t leaving. But the move reduces its exposure to a shifting economy and may put a cap on JD’s stock price turnaround.