Retail

BNPP and Moulin family to buy Galeries Lafayette

29 Mar 2005

The French bank is striking back. Rival Credit Mutuel was trying to muscle in on its relationship with Cofinoga, GL s consumer credit arm. But, by helping the Moulin family finance a bid, BNPP has managed to tighten its grip on Confinoga and shut its rival out.

Sainsbury shows signs of recovery

24 Mar 2005

Justin King s efforts cut prices and actually get the goods in store are beginning to pay off. Safeway s demise has been handy too. But while likeforlike growth is encouraging, investors will be wondering whether this has come at a cost in terms of margins.

Ken Morrison loses a shield

23 Mar 2005

The FD of the eponymous UK supermarket is gone, after two profit warnings. The audacious acquisition of Safeway has not gone smoothly. Further bad surprises would make investors wonder whether septuagenarian Ken Morrison is past his sellby date.

Metro growth strategy pays off

22 Mar 2005

The German retailer s focus on Eastern Europe and consumer electronics has allowed it to flourish while other German retailers struggle. The share price has followed. But Metro will need to deal with its underperforming units to give the shares an extra boost.

Casino chief executive quits abruptly

22 Mar 2005

The main shareholder and chairman is becoming CEO, following the French retailer's lacklustre performance. Naouri s plans are unclear. It could be harder execution, a tweak to strategy or even buying out the minority. But so far he is keeping his cards close to his chest.

Apax gets foot in door with higher Woolworths bid

20 Mar 2005

The retailer has been shrewd. By rebuffing Apax s first bid, it has traded a squint at the books for a raise of between 6% and 16%. But this is not yet a done deal. Given the bleak news coming from the high street and the postGM credit wobbles, Apax could yet walk away.

Wm Morrison hit by more Safeway hiccups

17 Mar 2005

Integrating an acquisition is never easy. But having two profit warnings on similar accounting issues suggests Morrison hasn't got a grip. Investors used to find Morrisons' backoftheenvelope style charming. That may not last if Safeway keeps throwing up glitches. Investors used to find Morrison's backoftheenvelope style charming. But the Safeway deal may have overstretched its top brass.

Casino manages to hold its own

16 Mar 2005

The French retailer s margins are holding up remarkably well in the face of rampant price deflation. But as competitors like Carrefour continue to cut prices it is going to become harder for Casino to keep its margins steady.

UK retail dogs lose finance director shield

15 Mar 2005

It is now up to the chief executives to turn these businesses around. If they fail, hiding behind CFOs will no longer be an option. Boots has just lost its finance director. M&S, Sainsbury and WH Smith have all appointed new ones.

UK retail has worst February in 13 years

8 Mar 2005

Boots has already warned on profits, and M&S is cutting prices. This doesn t bode well for the other retail turnaround stories. Noone expected retail to do very well. But anecdotal evidence and the latest official data suggest the situation may have deteriorated.

Benetton slumps on 2005 forecasts

7 Mar 2005

As lowcost fashion from H&M and Zara takes the world by storm, the previously iconic Italian brand is being forced to cut prices. But the worry is that Benetton s wholesale business model will still make it hard for it to compete.

Boots warns on profits

1 Mar 2005

If this is the consumer downturn, it s pretty ugly. The UK chemist s likeforlike sales are now flat to negative. This will be a blow to the whole UK retailing sector. And for Boots, it raises the risk is that it will have to cut prices even more.

Sainsbury family foundation sells 2.6% stake

23 Feb 2005

It looks like Judith Portrait, who administers much of the family's investment, doesn't think a bid for the supermarket group is imminent. Meanwhile, potential buyers for the group now have an idea of the price at which the Sainsbury family might be willing to sell out.

Baugur dangles £1.2bn before Somerfield

9 Feb 2005

A price of 190p a share for the UK retailer is a pretty chunky premium for a company most investors regard as strategically challenged. Why are the Icelanders prepared to pay up ? Maybe because a deal would help solve the mess at their last purchase: Big Food.

Puma doesn’t get enough credit

7 Feb 2005

The German sportswear maker s shares have long lagged rivals on fears that it is a faddish flash in the pan. That at least has been the worry. The thing is that it doesn't really stack up.

Boss’s son replaces Weinberg at PPR

3 Feb 2005

It's never a good sign when a highlyregarded CEO is replaced by the family heir especially when the succession process isn't transparent. Rather like Murdoch Jr at BSkyB, Pinault Jr could find it hard to prove he's the right man for the job.

Henkel bucks the trend

3 Feb 2005

The German consumer group has delivered sales and profits growth ahead of expectations, while many of its rivals are struggling. But Henkel will have to address its complex share structure if it is to participate in the expected industry consolidation.

Apax considering Woolworths bid

31 Jan 2005

The collapse of Allders clearly hasn't put private equity firms off bidding for tired old retail dogs. Poor Christmas trading has hit Woolies' shares. But even if Apax gets the UK retailer on the cheap, it will have to work to turn it around.

Karstadt’s equity and debt prices are hard to square

25 Jan 2005

The German retailer s debt is trading at stressed levels but its equity is still richly valued. This kind of anomaly is normally arbitraged away. In Karstadt s case, the trade is hard to put on. But that won t last forever.

Vandevelde to become Carrefour chairman – report

24 Jan 2005

It looks like the French supermarket group s owners are preparing their defence against a potential bid for the company. Vandevelde helped Marks & Spencer see off a bid by quitting as chairman. Now the boot could be on the other foot.