Posts tagged Market exits

Posted 2 months ago

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INSIGHT: Pressure growing on Metro Group CEO Koch

Metro Group’s results for the 2012 financial year strongly reflect the company’s still-troubled situation in the face of both a weak economy and structural deficits. EBIT before special items came in far below the prior year, falling by almost 16.7% to EUR1.98 billion (USD2.54 billion). Earnings before taxes (EBT) fell even more sharply by 45%, coming in at EUR810 million (USD1.04 billion). Net profit saw a disastrous decline of 86.3% to EUR101 million (USD130 million). As CEO Olaf Koch assumes responsibility for Metro’s cash & carry division alongside his overall duties, Planet Retail asks whether he can handle the mounting pressure and turn the German retail giant’s fortunes around.

Written by Bianca Casertano.

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Posted 3 months ago

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INSIGHT: What might Ahold’s sale of ICA mean for both retailers and markets?

Dutch retailer Ahold has announced it has reached an agreement with Hakon Invest of Sweden regarding the sale of Ahold’s 60% holding in Swedish retailer ICA. The price is SEK21.2 billion (USD3.2 billion) in cash, which includes ICA’s 2012 dividend of SEK1.2 billion (USD0.18 billion). The deal is expected to be completed by the middle of this year. With ICA’s powerful partner stepping back to focus on its own strategy, Planet Retail considers the implications of this move for both companies and their respective markets.

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Written by Laimonas Gineika.

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Posted 3 months ago

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INSIGHT: Media Markt pulls out of China: what happened?

Metro Group’s Media-Saturn-controlled electronics superstore chain Media Markt has announced that it will withdraw from China, confirming press reports published earlier this month. According to the retailer, the decision was “prompted by the experiences and forecasts deriving from the two-year test phase that expired at the end of December.” Planet Retail looks at the reasons for this decision to abandon a potentially fast-growing market and what lessons the Media Markt experience holds for other companies looking for a share of the Chinese market.

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Written by Yujun Qiu and Bianca Casertano.

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Posted 6 months ago

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INSIGHT: Carrefour spins off its last South-East Asian market

Carrefour has announced it is reorganising its partnership in Indonesia with CT Corp into an exclusive franchise agreement. The France-based retailer will sell its 60% stake in Carrefour Indonesia for EUR525 million (USD675 million). Carrefour became the third-largest retailer in the country with 84 outlets and net sales of EUR1 billion (USD1.28 billion) in 2011. The closing of the transaction will take place in January 2013, subject to the approval of the Indonesian competition authorities, Carrefour stated. Planet Retail looks at how this latest move reflects on CEO Georges Plassat’s policy of refocusing the retailer for the challenges ahead.

Written by Gildas Aitamer.

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Posted 6 months ago

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INSIGHT: Carrefour exits Malaysia and boosts AEON’s position

French retailer Carrefour is selling its operations in Malaysia to Japan-based AEON for EUR250 million (USD321 million). Carrefour is the fourth-largest hypermarket operator in the country with 26 locations representing a turnover of EUR400 million (USD514 million) over the past year ending 30 June 2012. The closing of the transaction is immediate and effective as of Wednesday 31 October. Planet Retail looks at how this latest move fits into the designs of both parties.

Written by Gildas Aitamer.

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Posted 6 months ago

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INSIGHT: Metro Group reports eroding profits in Q3 

Metro Group’s latest financial results suggest that most banners, especially in Germany and throughout Western Europe, recorded a real sales decrease, with small nominal growth rates keeping well below inflation in most operating countries. During the nine-month period from January to September 2012, the company posted a net sales increase of 1.5% to EUR 47.4 billion (USD60.9 million). In Q3, sales rose by 0.6% to EUR15.9 billion (USD20.4 million). Divisional sales in Q3 grew by 0.8% at Metro Cash & Carry, fell by 1.5% at Real hypermarkets, increased 1.4% at Media-Saturn consumer electronics stores, and grew 1.8% at Galeria Kaufhof department stores. Planet Retail takes a close look at the latest news from the German retail giant and asks how far it has come, and how far it has to go, on the path to restructure its operations.

Written by Bianca Casertano.

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Posted 7 months ago

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INSIGHT: Carrefour exits Colombia as Cencosud moves in

Carrefour has reached an agreement with Chilean retailer Cencosud to sell its Colombian operations for EUR2 billion (USD2.5 billion), including debt. The sale will take effect by the end of the year. The deal involves the sale of 92 stores including 72 Carrefour hypermarkets, 16 Carrefour Express convenience stores and four Carrefour Maxi cash & carries. Planet Retail looks at the impolications of Carrefour’s latest move and what it says about the company’s overall long-term strategy as well as its impact on the Latin American grocery sector.

Written by Gildas Aitamer and Carlos Hernandez.

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Posted 10 months ago

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INSIGHT: Top 20 Latin American Grocery Retailers: Ongoing concentration

Once again, Planet Retail’s 2011 Latin American Grocery ranking highlights the growth of an expanding retail sector increasingly dominated by international players Walmart, Casino, Carrefour and Cencosud. This is happening on the back of continued strong economic growth in the region, which reached 4.2% in the year. Planet Retail looks at those companies on the move in the region, and examines the key strategies for continuing growth.

Written by Carlos Hernandez.

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Posted 10 months ago

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INSIGHT: What can Carrefour sell?

In sharp contrast to ex-CEO Lars Olofsson whose international strategy was to focus on emerging markets in which Carrefour could become leader, Georges Plassat - who is under massive shareholder pressure and needs to raise cash for Carrefour’s struggling Western European operation - may concentrate instead on the most profitable countries. Planet Retail examines where Carrefour’s prospects look best-placed for profit.

Written by Milos Ryba (@MilosCEEretail).

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Posted 11 months ago

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INSIGHT: Tesco winds down its presence in Japan

Tesco has sold a 50% stake in its Japanese business to AEON. The company said it will exit Japan in a two stage process, firstly by selling a 50% stake of its shares in Tesco Japan for a nominal sum resulting in the formation of a joint venture. Planet Retail looks at what this means for the supermarket’s plans for Asia.

Written by David Gray.

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