Neil Saunders, managing director of GlobalData Retail

Articles by author

  • Jun 29 2017
    The news that Walgreens is to scrap its $9.4 billion merger with Rite Aid is unsurprising. The glacial pace of the Federal Trade Commission investigation and increasing signals that the federal government would disallow the merger have forced a rethink.
     
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  • Jun 22 2017
    While the pace of decline at B&N has eased, the company remains firmly in decline with sales down across the board. The saving grace is that a firm grip on costs, which were slashed by $137 million over the year, allowed the group to reduce losses for the quarter, and to post a $22 million net profit for the full fiscal.
     
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  • Jun 16 2017
    The retail sector is used to change, but every so often an event occurs that shakes the industry to its core. Amazon's acquisition of Whole Foods is one of those.
     
    On the surface, the purchase -- which comes with a $13.7 billion price tag -- is surprising. However, there is an inherent logic in the move which, in our view, brings benefits to both businesses.
     
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  • Jun 13 2017
    The clear signal sent by these first quarter numbers is that J. Crew is a company in trouble. As much as the business is used to decline, the accelerated pace of deterioration, as evidenced by the 6.3% drop in overall sales and the 12% fall in J. Crew comparables, is worrying. That this weakness comes off the back of negative prior year numbers suggests that the company has not yet reached rock bottom.
     
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  • May 24 2017
    Although overall sales at Lowe's increased by double digits, the somewhat softer comparable numbers and the decline in net income have taken a little of the shine off first quarter performance.
     
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  • May 18 2017
    Although Walmart is an old-school retailer, it is not afraid to learn new tricks and to shift its thinking. This youthful and innovative approach has helped it deliver another solid set of results in a highly competitive market.
     
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  • May 17 2017
    At headline level, Target's results are a lot better than feared. The pace at which total and comparable sales are declining has eased over the prior quarter, and the company helped itself to a 7.7% increase in net earnings. Against a tumultuous retail backdrop, this is a not so terrible performance.
     
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  • May 12 2017
    JCP ended its last fiscal on a moderately upbeat note -- especially on the profit front, where it managed to push into the black. These first quarter results change the mood music to a much more somber tone and undoubtedly represent a setback in the company's recovery plans.
     
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  • May 11 2017
    The first set of results under Macy's new CEO, Jeff Gennette, are not good. Indeed, they are decidedly gloomy and represent a significant deterioration over recent quarters. That this worsening comes off the back of feeble prior year numbers - when comparables fell by 6.1% and net income by 40.4% - only adds to the sense that Macy's is on a slippery slope.
     
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  • May 8 2017
    The past couple of years have been busy ones for Coach. The company has undertaken a turnaround of its main brand, successfully bringing back a premium edge to what had become a ubiquitous and devalued name. Coach has also integrated the Stuart Weitzman business by both extracting operating efficiencies and creating new sales opportunities.
     
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