Supermarkets

French iced tea feud will inflame grocer wars

14 Sep 2023

Carrefour is warning customers that suppliers like Unilever are raising prices on drinks and other goods by shrinking packages. The move will keep the government on side in its war against inflation. But smarter shoppers may hunt for bargains and go to discounters Lidl and Aldi.

Grocers learn lessons of ‘greedflation’ drama

12 Sep 2023

Food-price rises are easing, which is good news for supermarkets that stand accused of profiting from consumer pain. In this Exchange podcast, Ahold Delhaize CEO Frans Muller explains why demand for own-brand goods gives the Dutch group an upper hand in supplier negotiations.

Instacart’s mixed bag has valuation opportunities

28 Aug 2023

The food delivery firm is worth far less than its high point in 2021. The cost to get new customers is rising, too. But a push to sell ads, a sensible business, could help bring its valuation close to $17 bln. As long as Instacart is reasonable, it can get its listing, finally.

Amazon’s fumbled M&A leaves few good options

13 Jul 2023

The $1.3 trln giant splurged on grocer Whole Foods and movie studio MGM. But it hasn’t disrupted these sectors as hoped. Instead, both divisions are becoming more expensive and less promising. Ditching one would be an option if it weren’t so financially painful.

Czech sphinx’s Casino bet trumps French insiders

5 Jul 2023

The retailer must choose between two offers to cut its 6.4 bln euro debt load. Daniel Kretinsky’s deal brings more equity, helping the grocer spruce up stores and compete. But he will need France to ditch its preference for domestic owners like rival tycoon Xavier Niel.

Capital Calls: US IPOs

29 Jun 2023

Concise views on global finance: Thrift store chain Savers Value Village is the latest consumer goods company to enjoy a successful stock market debut in New York.

Casino’s fate rests on billionaires whack-a-mole

9 Jun 2023

Tycoon Xavier Niel and Czech investor Daniel Kretinsky are vying for control of the hard-pressed French retailer, which needs to restructure some 3 bln euros of debt. Founder Jean-Charles Naouri may be pushed out. Creditors’ backing will determine who will come out on top.

Petrol station tycoons’ debt fix has hidden flaw

30 May 2023

The Issa brothers are shifting UK filling stations to their Asda supermarket chain for $3 bln. The deal helps prop up their balance sheet and possibly expand elsewhere. But it leaves the grocer with extra costs and exposure to a sector at risk from the rise of electric vehicles.

Tesco’s diversity reboot has further to go

25 May 2023

The chair of the $24 bln UK grocer quit amid allegations of inappropriate comments. But Tesco also lags on diversity in its senior ranks. With its lowest paid staff mostly women and investors likely to be watching closely, it needs to be leading, not following.

‘Greedflation’ loosens its grip on food retailers

24 May 2023

Suppliers like Unilever and Kraft Heinz are easing inflation-busting price rises that hit grocers hard. That will benefit profit margins at the likes of Kroger and Carrefour. Their next challenge will be convincing cash-strapped consumers to pay, and buy, more in supermarkets.

Walmart plays the long game with dominance

18 May 2023

The $410 bln retailer is chipping away at e-commerce rival Amazon while also capturing customers who might shop at Target. Discretionary dollars are dwindling even among those consumers with more to put into their houses as Home Depot shows. That means Walmart will keep growing.

John Lewis needs a breakup more than a rescue

23 Mar 2023

The UK employee-owned retailer wants to raise $2.5 bln to improve its ailing stores. But that could leave a new investor owning nearly half the company, undermining its mutual status. Merging its grocer Waitrose with rival M&S would bring in cash and forge a more viable player.

Cost surge leaves grocers crying in the aisles

16 Feb 2023

Producers like Unilever and Nestlé are raising prices by as much as 10% to offset more expensive inputs. That is hurting supermarkets like Kroger and Tesco, which face falling margins and consumer anger. Investors can benefit by backing the suppliers and ditching the shopkeepers.

Petrol tycoons’ debt juggle may be a deal too far

31 Jan 2023

The Issa brothers may mesh their grocer Asda together with the UK arm of their gas pump operator EG Group. A deal, worth say 3 bln pounds, would help the shaky forecourt business cut debt, and ease a refinancing cliff. But it would leave the supermarket weaker, amid a price war.

Capital Calls: AI out-buzzes the blockchain

27 Jan 2023

Concise views on global finance: Digital publishing outfit BuzzFeed’s stock surges in part because it’s using AI to help create content. But investors’ excitement is likely to be short-lived.

Consumer spending anomalies are the new norm

29 Nov 2022

High inflation and glum sentiment are changing how people use their money. In this edition of The Exchange podcast, Brookings Institution economist Wendy Edelberg explains what shoppers are loath to give up during times of duress and why strange patterns will persist.

Grocery deal could have European interloper

20 Oct 2022

Kroger’s $25 bln deal for Albertsons inks its position as the second largest U.S. grocer. That has lawmakers nervous. But Stop & Shop owner Ahold is a more palatable partner. Plus jumping into the fray puts it in prime spot to make its competitor pay more or pick up castoffs.

U.S. grocery mega-deal more than checks out

13 Oct 2022

Combining Kroger and Albertsons would create a $50 bln supermarket colossus. The rising cost of wages and food makes the timing look sensible. And if synergies from a past merger are any guide, there stands to be a healthy return. Trustbusters, however, could block the aisle.

Grocers’ crisis defences look shaky

13 Sep 2022

Morrisons lost its top-four UK position to Aldi, while Ocado’s online sales are under pressure. Competition from discounters means supermarkets have less scope to raise prices and protect margins than in past slowdowns. The bleak outlook has yet to reach stock valuations.

Capital Calls: Food fight

23 Aug 2022

Concise views on global finance: Retailers like E-Mart are cutting food prices amid surging costs, risking a sector-wide race to the bottom.