Retail

Wal-Mart shouldn’t buy Carrefour

26 Feb 2004

Rumours about a bid aren t too surprising, given how badly the French giant s stock has suffered. But as WalMart s own experience in Germany shows cultural issues can pose big problems in a deal.

Sir Ian Prosser withdraws from Sainsbury

17 Feb 2004

It is probably the least worst outcome for the board, which got into a complete mess by putting Prosser forward in the first place. But it still leaves the directors looking both incompetent and indecisive.

Sainsbury family the key to Prosser revolt

16 Feb 2004

If shareholders are to block the appointment, the Sainsbury family needs to come down against it, or stand aside. If the family does so, that could have far reaching implications for Sainsbury's future.

Sainsbury disappoints on future chairman

10 Feb 2004

Sir Ian Prosser's track record at Six Continents has on the whole been poor. Should Sainsbury need to overhaul its strategy and people, Prosser might not be the right man for the job.

P&G set for showdown with Wella minorities

30 Jan 2004

The German shampoomaker s minorities will turn up the heat on the US consumer products giant at next week s annual meeting. But even if P&G wins the day, it will have to tread very carefully to avoid further brawls.

L’Oreal gloss comes off

27 Jan 2004

The French cosmetics group owns a big chunk of Sanofi and has been hit by fears the drugs group will have to overpay to win Aventis. L Oreal would have to strip out Sanofi s fastergrowing earnings after a merger, highlighting a couple of blemishes in its core business.

Parmalat’s black hole widens

26 Jan 2004

PWC's draft report on the group's finances reveals E14.3bn of debt. That's especially shocking given how wildly inflated its earnings were. On the basis of PWC's estimate of Parmalat earnings, creditors will be lucky to walk away with anything close to 10 cents on the euro.

LVMH sales jump in Q4

22 Jan 2004

Its leather handbags are flying off the shelves. Elsewhere, demand for jewellery, watches and even executive jets is accelerating. The luxury industry may finally be turning its back on two years of misery.

Boots cuts nearly a third of its head office

15 Jan 2004

There s clearly a lot of fat to cut at the UK chemist, which plans to reinvest some of the proceeds in lower prices. Its plan is for volumes to pick up the slack. But with prices still higher than rivals, Boots may not staunch its market share decline.

Tesco looks for £1.6bn

13 Jan 2004

Tesco has a lot of plans for the cash. And with its stock up 60% since the trough in March, this is a good time for it to sell shares. The UK group raised almost £800m in a share placement, and is looking to squeeze that much again out of property and working capital.

M&S recovery fears mount

12 Jan 2004

Christmas may not have been a gift to the British high street. But it looks like the shopping giant had a harder time than most. Unless Marks & Spencer gets a grip on its clothing sales, its recovery could slip into reverse.

Next surprises with happy Christmas

6 Jan 2004

This suggests the British High Street had a better Christmas week than feared. But with Next growing strongly, the benefits for rivals may be dampened.

Weak Christmas triggers first retail warning

2 Jan 2004

WH Smith has rushed out a dire announcement before the decorations have even come down. It may be a special case having had problems for some time but this is still bearish for the sector.

Farewell to the year of the drawn-out bid

29 Dec 2003

There weren't many deals around in 2003, but those that there were dragged on and on. Next year might be snappier. But don't hold your breath.

Dixons, Kesa saved from warranties pain

18 Dec 2003

The UK government has curbed, but not banned, the highly profitable warranties business offered by the electrical retailers. This lifts a large fog of uncertainty that had descended on the sector. It may also release some longanticipated M&A.

Parmalat auditors can’t find E4bn cash

18 Dec 2003

Bank of America denied the authenticity of a document submitted by Parmalat to Grant Thornton certifying the existence of E4bn of liquidity. This is the worst blow yet to the credibility of Parmalat's accounts. Bondi should declare protection from creditors to sort things out now.

Safeway caves in to Morrison

15 Dec 2003

After a yearlong wrangle, the supermarket group has extracted a marginally lower price from its suitor than it did in January. It isn't the only grocer to have been sapped by the bid battle. Rival Sainsbury has been too.

UK clothes retailers in a shiver over Christmas

11 Dec 2003

The retail sector has so far been one of the year s best performers, despite slowing sales growth and a worrying economic outlook. A profit warning from Britain s largest discount clothes retailer, Matalan, may prompt investors to reassess the sector.

Asda mulls £2bn bid for Safeway stores

10 Dec 2003

WalMart s UK business doesn't have much of a chance of being allowed to buy the 70 Safeway stores it is angling for. But that may not be the point. By dangling an offer, it may be hoping to raise the bar for Wm Morrison and perhaps even delay a tieup.

Benetton dresses up profit warning with plan

9 Dec 2003

The Italian clothing retailer has unveiled a plan to revamp its tired clothing lines and raise margins and profits by 2007. But it s hard to see how this is much more than an attempt to gussy up dismal nearterm results.