ING expects bad quarter for European retailers | RetailDetail

ING expects bad quarter for European retailers

ING expects bad quarter for European retailers

Dutch bank ING has released a fairly negative report on the future of European retailers. Its analysts see Tesco's weak business figures and Metro's profit warnings as the first signs of a weak fourth quarter.

 

“Consumer confidence is weakening in mature markets, as is the growth in emerging countries. In Europe, the euro and government debts remain problematic and new budget cuts are an additional reason to worry about most European retailers”, as the ING analysts say.

Sell Carrefour, Colruyt, Sligro!

ING has therefore lowered its advice for several retailers, like Carrefour because of its declining sale of non-food and its dependence of Southern European countries, where the crisis will lead to less consumer spending.

 

Tesco and Marks & Spencer are also “Sell!”, as over half of their home market sales is non-food. Metro barely manages to avoid that warning, because of its decision to sell Kaufhof and Real. In the Benelux, Belgian chain Colruyt (“slower profit growth”) and Dutch food wholesaler Sligro (“lower out of home spendings”) should also be avoided, says ING.

Better rating for Delhaize, Ahold, Morrisons

Delhaize, Belgium's other main retail chain, fares better, just like Dutch Ahold and British Morrisons. “Ahold finally started to adapt a more aggressive strategy towards growth, while it is on the right track with its Dutch and American e-commerce activities.”, says ING. Morrisons on the other hand grows “above average” and is “a pure player in food, unlike its main British competitors”.

 

Each year, ING also announces its “top picks” among retail shares: French Casino (“successful in emerging countries”), Portuguese Jeronimo Martins (“because of its Polish Biedronka supermarkets”) and – of course – Inditex (“aggressive and very profitable expansion”). 

Questions or comments? Please feel free to contact the editors


Belgian fund close to HEMA acquisition

09/05/2018

Belgian Core Equity holding is allegedly close to acquiring Dutch chain HEMA: a verbal agreement is apparently in place, all that is required are the signatures.

Walmart, not Amazon, will acquire Indian market leader Flipkart

07/05/2018

Despite Amazon’s attractive offer, Indian online retailer Flipkart has chosen for Walmart and (remarkably), Google owner Alphabet as the new owners of 75 % of Flipkart’s shares. The deal is said to be worth 15 billion dollar.

Alibaba's growth exceeds expectations

07/05/2018

Chinese retail group Alibaba has published better-than-expected quarterly results: turnover went through the roof, but its profit is under pressure because of increased investments.

Shareholders ‘not amused’ by Unilever CEO's wage increase

03/05/2018

One in three British Unilever shareholders voted against the company’s proposed remuneration plan. Investors in the Dutch part of the (currently) British-Dutch company will vote on the plan as well.

Macy's acquires New York-based concept store Story

02/05/2018

American department store chain Macy’s will acquire New York-based concept store Story. Founder Rachel Schechtman will become Macy’s’ “brand experience officer”.

RetailDetail Congress ‘The Future of Shopping’ had substance and style

27/04/2018

With six CEOs of major Belgian retailers, the 2018 edition of the RetailDetail Congress had an impressive line-up on stage the 26th of April.