Retail

Boots still in need of a pick-me-up

30 Mar 2006

The UK health and beauty retailer has staved off a decline in sales. But its standalone prospects are, at best, dull. Boots looks more dependent than ever on its planned merger with Alliance Unichem or a private equity intervention.

Sainsbury gets it half right

29 Mar 2006

The UK supermarket group s core growth is bounding ahead at 5.3%. At that rate, it should overtake closest rival Asda within a year. But price cuts and cost increases mean beefing up Sainsbury s skinny margins will be tough. That makes its premium to Tesco hard to fathom.

GUS finally limbers up for the splits

28 Mar 2006

After a lengthy wait, the UK group is finally demerging its retail and creditchecking divisions, Argos and Experian. Listing the units separately won t make them less tempting to private equity. But this way, investors are more likely to get a fair price.

Morrison plan poses more questions than it answers

23 Mar 2006

The UK supermarket hopes it can finally shake off the twoyear indigestion it has suffered since swallowing rival Safeway. But there's still no sign of a new chief executive to carry it out. That could make the "optimisation plan" little more than a sop.

Tesco sets sights on Indian expansion – report

21 Mar 2006

Breaking into India s fragmented market with its fast growth and potential for market liberalisation looks sensible. The only worry is Tesco is taking on a lot at the moment, with new projects in the US and China. But the opportunity is probably worth it.

Body Shop takes the cash from big slap

17 Mar 2006

L'Oreal's £652m bid is a good deal for the UK beauty retailer, which is less differentiated now most cosmetics groups claim to be ethical. The French group gets to diversify its brand portfolio. But it's less clear why it wants the dubious benefit of a high street presence.

Eddie Lampert celebrates Sears birthday

17 Mar 2006

But shareholders don t have as much to cheer about one year on from the vaunted KmartSears deal of one year ago. Investors appear now to believe Lampert will harvest Sears for cash rather than break it up. But some fear this may be a risky strategy.

HMV should open its books to Permira

9 Mar 2006

The buyout firm has offered 210p a share for the ailing retailer, yet the HMV board remains mute. That seems odd. HMV has yet to come up with a turnaround plan and doesn t seem to have any other offers. It should show its hand.

HMV should accept Permira’s sweetened offer

3 Mar 2006

At more than 200p a share, the buyout firm s raised offer for the UK music retailer should be enough to win the day. HMV is unlikely to squeeze out any more. Unless something better comes along, it should take the cash.

Baugur stakebuilding may not mean bid for Woolies

9 Feb 2006

The Icelandic investment group has built a 6.2% stake in Woolworths, raising hopes that the ailing UK retailer could soon be in play. But Baugur also has a habit of holding on to minority stakes in retailers as investments. It may take a while to make this one pay off.

Tesco tip-toes into the US

9 Feb 2006

The US is a graveyard for the ambitions of European retailers. But Tesco has smartly chosen not to go headtohead with WalMart. Building a convenience startup on the West Coast will stop the UK retailer from being mangled. And it should be a scaleable idea too.

HMV will struggle to beat £768m private equity bid

8 Feb 2006

Permira s offer for the UK retailer is just 16% more than the prebid share price. Yet it shouldn t take much more to win investors over. Their best hope is a knockout breakup bid from former chairman Tim Waterstone. But he needs to show the money and soon.

Hopes of Boots counterbid fade on OFT report

7 Feb 2006

The UK regulator has decided not to refer the chemist s merger with Alliance Unichem for a lengthy competition enquiry. That raises the bar for private equity groups plotting a counterbid. They will have to offer a big premium to stop the deal going ahead.

HMV investors should opt for bird in hand

31 Jan 2006

The troubled UK retailer has reportedly received an £800m bid from buyout firm Permira. That restored the shares to their 192p float price. But HMV still faces strategic problems. With the shares buoyed by bid speculation, investors have a golden opportunity to cut their losses.

Casino profits dive is a red flag for French retailers

27 Jan 2006

The supermarket group's shares have tumbled on falling likeforlike sales and margin pressure. France's retailers have for years charged high prices and enjoyed high margins. Now regulation and competition are reversing the trend.

Apax’s $1.6bn Hilfiger LBO rife with conflict

27 Jan 2006

The basic problem is that the lower the takeover price, the more some Tommy executives stand to gain from the deal. These perverse incentives add to concerns among some shareholders that Tommy is selling too cheaply.

Albertson’s bows out for $17.4bn

23 Jan 2006

The retailer couldn t keep up with WalMart. Breaking Albertson's into pieces may allow its new owners to compete more effectively. Buyer Supervalu takes on the bulk of the risk, however, while CVS looks to have walked away with a bargain.

Debenhams IPO would be great for private equity

19 Jan 2006

The mooted £3bn valuation for the UK retailer would imply pretty chunky multiples, at a premium to rivals like Next and M&S. But if they pulled it off, Debenhams privateequity owners would have quadrupled their money in just over two years.

Tesco still top dog in UK retail

17 Jan 2006

The supermarket chain beat peers by growing sales 5.7% over Christmas. And its market share is still almost twice that of its nearest rival. But 2006 may not be so easy. Competitors like Morrison and Sainsbury if not yet biting have at least started to bark.

Boots confounds sceptics with Christmas trading

12 Jan 2006

The UK retail chemist has scotched rumours it had taken a beating. It stemmed the decline in sales, without the need for megadiscounts. That doesn t make the planned nilpremium merger with Alliance Unichem more attractive. But it may increase the chances of a better offer.