Retail

Boots announces £700m share buyback

27 May 2004

This big present to shareholders seems designed to reassure them that Boots is still gushing cash despite March's shock profit warning. It is also aimed at buying newish CEO Richard Baker time to deliver a turnaround of the lacklustre group. He'll certainly need it.

M&S shies away from radical revamp

25 May 2004

The UK retailer has admitted that all of its engines are misfiring. But its plans to get them ticking over again appear inadequate.

Sainsbury’s new boss starts to bite bullet

19 May 2004

Justin King has already cut prices significantly. But will have to do a lot more to bring the supermarket group in line with its peers. The risk is that rivals won t stand still while Sainsbury tries to catch up. And if volumes don t pick up, the price cuts could be painful.

Vandevelde to quit as M&S chairman

9 May 2004

The struggling UK retailer now needs a new chairman who can judge whether Roger Holmes should stay as CEO. If Holmes is the right man, he should be backed to the hilt; if not, he should be sacked.

Lord Sainsbury may return to family firm – report

4 May 2004

Investors must hope the UK minister wouldn't take an active role if he decides to quit government. His track record isn't great. But the Sainsbury family would stop being absentee landlords. This could eventually pave the way for the retailer s sale.

Permira turning screws on WH Smith

3 May 2004

The private equity house wants to stop other potential suitors for the retailer from coming in and making a competing offer. But there s little rationale for WH Smith s board to give in to its demands for a breakfee or an inducement fee.

How much is WH Smith worth?

27 Apr 2004

Permira s 375p a share approach at a 45% premium to the day before it was made looks rich given the core retail business s dire state. But getting the business back to where it was last year makes a deal stack up. So there may be scope for a higher bid.

UK retail dogs won’t all get bids

23 Apr 2004

Speculation runs high that M&S and Sainsbury will go the way of WH Smith and get taken out by private equity. Sadly not. Their size is so big that M&S and Sainsbury will have to sink further before they become attractive to private equity.

WH Smith lets Permira look at its books

22 Apr 2004

After disappointing investors for years, the UK retailer would have had to be brave indeed to disregard a potential 45% premium. What s more, it doesn t look like WH Smith s own plan can promise to deliver more value any time soon.

Tesco dogged by price war fears

20 Apr 2004

The UK retailer has shown yet again that it is capable of generating sparkling growth both at home and abroad. But with Morrison now cutting prices at Safeway, the risk is that Tesco will have to reinvest more of its margin to keep leading the field.

Ahold recovery taking longer than expected

19 Apr 2004

Getting its scandalhit US foodservice unit back to 2002 levels and selling E2.5bn of assets looks more problematic than previously thought. The runup in the shares has probably gone too far until the Dutch retail group can show its recovery has regained momentum.

WH Smith in play

18 Apr 2004

Permira's swoop on the troubled UK retailer is highly opportunistic. But at a 45% premium, the directors must consider it seriously. Smith's now needs to see if it can rustle up other offers maybe even from its own chief executive Kate Swann .

M&S starts to unravel

14 Apr 2004

After several quarters of stagnating market share, the UK retailer is now moving backwards fast. Even worse, it doesn t look like Marks & Spencer has much of an idea of how to reverse this.

Gus should spin off Experian

2 Apr 2004

A breakup of the UK retail conglomerate could create value. By spinning off Experian, the credit checking business, and selling down its stake in Burberry, Gus could create 1520% extra value.

Gucci misses forecasts as PPR starts buyout

1 Apr 2004

PPR has to write a hefty cheque just as it becomes clear that Gucci s recovery is soggier than expected. Gucci still has no chief executive, and the new design team looks uninspired. It isn t clear how PPR plans to kick the business into shape.

Bulgari trounces earnings forecasts

30 Mar 2004

The luxury group managed to hack costs out of the business. Earnings rose by 21% in spite of a drop in revenues. With longsuffering watch sales expected to pick up this year, Bulgari looks geared to a recovery.

Premium UK retailers capitulate

29 Mar 2004

Sainsbury and Boots, which have long struggled against lowpriced competitors, have finally bitten the bullet and changed tack. While long overdue, this won't necessarily turn things round at either retailer.

J Sainsbury sells US arm, warns on profits

26 Mar 2004

The group is selling a good business in the US for £1.4bn and pouring about half of the proceeds into its floundering UK arm. But as the latest profit warning shows, betting on a UK turnaround is risky.

Wm Morrison in great shape to tackle Safeway

18 Mar 2004

The regional grocer s strong results bode well for its chances of integrating a business much bigger than itself. Rival supermarkets will try to put spokes in its wheels. But given the conservative synergies, Morrison has left itself some headroom.

Agnellis may get big return from minority buy-out

4 Mar 2004

Ifil, the family holding company, browbeat minority investors at Rinascente into accepting a lowball bid. Now the Agnellis may cash out of the retailer in a deal that could make them a really big return.