The fall of A&P into bankruptcy attracted some criticism of the US retailer’s management this week, while, on this side of the pond, UK convenience retailers hit out at Tesco’s latest acquisition in the channel. The UK’s largest retailer was also named as a potential suitor for Poland’s Zabka as speculation over further consolidation in emerging markets continued. Wal-Mart Stores, however, has hit a wall in Russia and closed its office that was exploring how to enter the market.
“The management is where the problem is. They kept repeating the same mistakes over and over. Every acquisition they made failed” – US supermarket analyst David Livingston questions the track record of the management at retailer A&P, which has filed for Chapter 11 protection.
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“Since we have decided to enter the market through acquisition, not greenfield development, and since there is no clear acquisition partner in the near term, there is not a business reason to continue our Moscow representative office” – Doug McMillon, CEO of Wal-Mart Stores’ international arm, explains why the world’s largest retailer has closed its Russian office.
“The Zabka stores could be another chance for Tesco to revive plans to enter the franchise segment of the Polish grocery market – so far not served by the company” – Dominika Kubacka, an analyst at PMR Corporate, advisers to investors in Eastern Europe, suggests why Tesco could be interested in buying local retail chain Zabka.
“We need a full and robust investigation into the implications of the continued growth of the One Stop format” – James Lowman, chief executive of the UK’s Association of Convenience Stores, reacts negatively to Tesco’s acquisition of 77 stores from Mills Group through its One Stop chain.
“These types of misleading claims are enough to give consumers indigestion,” Jon Leibowitz, chairman of the US Federal Trade Commission, hits out at Danone as the French food giant agrees to change how it markets probiotics in the US.
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By GlobalData“It is very different in the UK right now and it has led to an intensely promotional environment across many categories” – Speaking as General Mills issued its half-year results, the US group’s chief Ken Powell says competition is fierce in the UK.
“This is an uncommon and unfortunate situation of a well run and profitable business being compelled to enter insolvency specifically because of the scale of its pension deficit” – KPMG’s Howard Smith reflects on Westler Foods move into administration.
“Once we got to know Hansa-Milch it became clear that we are not only comparable as cooperatives, we also share the same ambition for the German market” – Arla Foods chairman Ove Møberg outlines why the dairy giant is in talks with merge with Germany’s Hansa Milch.
“Fresh dairy products are expected to enjoy sustained growth, especially outside Europe, and in particular through new consumer segments and we intend to take advantage of these favourable trends” – Yoplait president and CEO Lucien Fa emphasises why the yoghurt maker has snapped up Canadian organic brand Liberté.
“The synergies it will generate (in particular, in terms of purchasing and logistics) will provide us with greater scope to meet customers expectations in a French market recording 6% growth annually” – Pierre Martinet, president of the eponymous French prepared salads maker, outlines the benefit of the firm’s acquisition of family-owned rival La Belle Henriette.
