Retail

Sainsbury’s sales aren’t growing fast enough

21 May 2003

The vast sums poured into the UK supermarket chain don t appear to be having much impact on the top line. Costcutting has allowed underlying operating profit to rise 11%. But ultimately it is revenue growth that shareholders want.

M&S faces testing times

20 May 2003

But the outlook for sales growth is dampening. M&S is going to have to power ahead with margin gains. The UK retailer has turned in a sturdy year. Operating profits grew by 21%.

Safeway suffers from long-drawn out bid battle

15 May 2003

Suppliers aren't giving the UK group as many rebates as they used to because they don't think Safeway will be independent for long. Safeway is trying to contain the impact by hacking back refurbishments. But, in this rat race, standing still is akin to running backwards.

Concerns over Debenhams bid look overdone

14 May 2003

It is a delicate situation. But Debenhams board seems to be vigorously carrying out its duties to shareholders. Some investors reportedly think the company shouldn't have allowed the group's management to talk to a private equity bidder.

Kingfisher spin-off no easy way to play retail M&A

14 May 2003

Investors might think Kesa, the electricals business, is suitably unloved. And Dixons is a natural buyer for Darty, the French unit. But Dixons would have to flog off the other bits. Plus, it looks like the UK group has too much on its plate to take the initiative.

Selfridges wrings top dollar bid from Weston

12 May 2003

The board deserves credit for auctioning the UK department store, rather than getting bogged down with potentially phantom bidders. Selfridges may be a trophy asset, but shareholders have still got a pretty good result.

Debenhams gets £1.5bn private equity approach

12 May 2003

UK department store M&A has reached fever pitch. Debenhams is the latest target, following Selfridges, Allders and House of Fraser. Small, midmarket department stores have long been ripe for consolidation. Permira might want a seat at the table.

Ahold inches closer to break-up

9 May 2003

On its restated earnings, the Dutch supermarket group s food distribution business is barely profitable. This cuts the value of the asset and raises doubts over Ahold s solvency. Lenders may force the sale of a core asset.

The grey pound is set to shine

9 May 2003

In macro terms, Europe s ageing population is bad news. But catering for the aged is a potentially boomy market. In this light, Zara's decision to expand into larger sizes which should appeal to older customers looks a pretty smart move.

Regulator to mull impact of Safeway deal on suppliers

8 May 2003

Maybe the Commission is just covering its bases. But if Safeway is a special case, that would be bad news for its shareholders. The Competition Commission hasn't traditionally been too concerned with the plight of suppliers.

Green shouldn’t get totally clear run at Safeway

6 May 2003

He would. But that's not going to be in the best interest of Safeway shareholders. The retail guru reportedly wants the Takeover Panel to stop rivals under antitrust scrutiny making "conditional" bids before he commits.

Ahold to nominate Anders Moberg as CEO

2 May 2003

Anders Moberg's agreement to take up the cudgel at the tainted Dutch retailer is a big vote of confidence. But the road to rebahilitation remain treacherous not least because Moberg may have to sell core assets in a tricky market.

Boots picks Asda man as CEO

1 May 2003

This is a case of "know your enemy". The highstreet chemist chain is being hounded by the supermarkets. Richard Baker needs to find a way to either develop the group s business or protect it from decline. At least, he seems dynamic.

Safeway battle could fizzle out

1 May 2003

The Big Three supermarkets argue that if they nab Safeway competition should actually improve. But their arguments shouldn t carry the day.

Dixons should escape regulatory crackdown

28 Apr 2003

Electrical retailers' practices in selling extended warranties may owe a lot to the Moroccan souk. And they seem to be very profitable. But that's not a reason for the regulators to get heavyhanded or for shareholders to get too worried.

Somerfield has faith in itself

24 Apr 2003

The British retailer has rejected a £510m approach which was at a 50% premium to its price before the news leaked. But Somerfield doesn t want to check out just now, as it thinks it can crawl out of its hole.

Boots pension trustees in a bind

16 Apr 2003

Trustees of the UK retailer's pension don't want to be seen as kowtowing to the company's directors by putting the fund back into shares. But they should put such considerations aside and weigh up investment strategy alongside their attitude to risk.

Safeway hit by bidding war

15 Apr 2003

However, the outlook for Safeway s profits is deteriorating. Any financial buyers sniffing around will be reassured the grocer s sales haven't completely plunged.

GUS needs to find a solution for home shopping

15 Apr 2003

The dominant agency part of the business is in terminal decline. And managing a shrinking business is full of pitfalls. If GUS isn't in talks with rivals about spinning off the business as recent reports have suggested it might be it should be.

Selfridges gets bid approach

10 Apr 2003

The British department store is a lot more glamorous than other department stores which have previously attracted bid interest. But there's still room to release value. Before news of the bid leaked, it was trading at an 18% discount to NAV.