Supermarkets

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.

Walmart inflation alarm, Unilever’s pricey remedy

28 Jul 2022

America’s largest private employer’s market value fell $35 bln amid a profit warning. In this Viewsroom podcast, Breakingviews columnists discuss how customers shifting to low-margin food is a harbinger for rivals. Also, the Dove maker is pushing quality versus quantity sales.

Grocers’ plot to replace suppliers may backfire

8 Jul 2022

Europe’s supermarkets are clashing with food makers over price hikes. Replacing goods like Heinz baked beans, as Britain’s Tesco has done, with cheaper in-house brands helps keep margins intact. The painful flip-side is a top-line hit from selling more cut-price substitutes.

Kraft Heinz grocer war, China’s creaking economy

7 Jul 2022

Tesco has pulled products made by the $47 bln baked bean producer over price rises. In this Viewsroom podcast, Breakingviews columnists debate how this loss of variety could open the door for rivals to expand. Also, the People’s Republic’s means of hitting economic goals.

Kraft has secret sauce in UK grocer food fight

4 Jul 2022

Supermarkets like Tesco are dropping the U.S. food giant’s wares after “unjustifiable” price hikes. That earns brownie points from shoppers and shunts politicians’ gaze to Kraft’s beefier margins. But less choice on the shelves may push business to cut-price rivals like Aldi.

Boots deal will add to Reliance’s retail black box

9 Jun 2022

The Indian conglomerate submitted a binding bid for Walgreens’ UK pharmacy chain in a consortium with Apollo. It’s a big pivot for Mukesh Ambani. Opacity around his retail expansion and a determination to win at all costs are a worry. Bulking up will make things worse.