'Walmart eager to buy Russia's 5th retail chain Karusel' | RetailDetail

'Walmart eager to buy Russia's 5th retail chain Karusel'

'Walmart eager to buy Russia's 5th retail chain Karusel'

According to Russian business sources, Walmart is interested in buying hypermarket chain Karusel from the X5 retail holding. In doing so, the world's leading retailer would finally realise its dream to enter the Russian market.

"Deal announced in two weeks"

The Develoi Peterburg newspaper writes that Walmart would buy Karusel for two billion dollar from X5, who have owned the hypermarket chain since 2008. Reuters quoted the DP saying “a deal may be announced in around two weeks.”

 

An X5 spokesman formally denied these reports, but analysts believe in the possibility of Walmart taking over Karusel, as the main holding struggles financially after acquiring discount chain Kopeyka. X5 bought the discounter just before Walmart could, but Kopeyka's integration in the holding has proven more difficult than expected. Last October, the group even issued its first profit warning, despite the boom the Russian economy is still going through.

 

"Acquisition is the only way in"

Walmart has been trying to enter the Russian market for years, but it seemed to have given up hope after the group closed its Moscow office in 2010, citing “a lack of acquisition opportunities”. However, spokesman Kevin Garner said "We still believe the Russia market has promise and we'll continue, as we do in markets all over the world, to watch for the right market-entry opportunity."

 

Speculations surfaced again as Walmart appointed X5's former CEO Lev Khasis as senior vice-president last year, especially after Khasis told a Russian tv station that "the only way of entering the Russian market now is buying some of the existing players".

 

Two other candidates: Lenta and O'Key

Analysts point out that Karusel is not the only possible candidate for a Walmart takeover. The Lenta-chain, in American hands since the Texas Pacific Group took over last year, has 42 Russian stores to offer to the world leader in retail. Its colleagues of O'Key, despite the name a completely Russian chain, would also be an interesting target for foreign investors.

 

O'Key, Lenta and Karusel are by far the biggest Russian retail chains, with a turnover of 1.70 billion, 1.41 billion and 1.36 billion euro respectively. That puts them way ahead of the other Russian chains, but also far behind the two largest, but foreign, retailers in Russia: French Auchan (4.14 billion) and German Metro (2.90 billion).

Questions or comments? Please feel free to contact the editors


Suitsupply suffers losses because of expansion

15/05/2018

Dutch Suitsupply has experienced a decent turnover growth last year, but its net result tumbled below zero because of its huge investments. Nevertheless, that is the only way forward according to its founder, whose focus is still fixed on the United States.

Starting this Friday, Belgium has its own national e-commerce event

15/05/2018

Move over, Black Friday! This week, Belgium launches its own national e-commerce event as Jack & Jones, Kiabi, La Redoute, Sarenza, Tape à l'Oeil and Veritas organise the first Belgian Friday.

H&M is turning to algorithms to boost sales again

14/05/2018

In an effort to reverse the decline in its worldwide sales, H&M is using technology that will help the world’s largest clothing brand stock its stores more efficiently, sell more effectively and adapt more quickly to current consumer trends.

Zalando's profit wiped away in first quarter

08/05/2018

German online retailer Zalando saw its first quarter profit completely wiped away: last year's 5.1 million euro net profit turned into a 15 million euro loss. Turnover grew 22 %, investments being the cause for both.

Strong online growth for Hugo Boss

03/05/2018

German fashion brand Hugo Boss managed growth in every region in the first quarter. Group turnover grew 5 % to 650 million euro, partially thanks to strong web shop sales.

France will impose recycling for unsold clothing in 2019

02/05/2018

The French government plans to impose a ban on the disposal or destruction of unsold clothing by fashion companies. The measure extends the rules already in place for food waste to the spillage of clothing.