Tesco to Buy South Korean Discount Chain
Seoul, South Korea Tesco has agreed to buy South Korean discount chain Homever for $1.86 billion, according to Reuters. The 36-store Homever has been plagued by poor sales and labor disputes since South Korea’s fashion retailing group E-Land bought it from French retailer Carrefour in 2006.
The deal, the largest single acquisition to date for Tesco, will give the chain a major anchor in one of its most profitable markets. The Homever stores, most of which were formerly Carrefour hypermarkets, have a total sales area of 3 million sq. ft., plus a further 1.3 million sq. ft. of adjacent shopping mall space.
“After nine years of successful development in South Korea, Tesco is now a substantial business and our leading international operation,” said Sir Terry Leahy, chief executive of Tesco. “This acquisition of high-quality assets is an important strategic move, which will allow us to accelerate our growth in this key market.”
Philip Clarke, international director, said the deal would allow Tesco to roll out Homeplus, its hypermarket format, into Seoul and the surrounding areas, according to U.K. newspaper reports. Tesco said it planned to convert the stores to its Homeplus format over the next 12 months.
Tesco owns 66 hypermarkets and 72 convenience stores in South Korea.
Spice Depot snags Wal-Mart global sourcing expert
BURNABY, British Columbia Former Wal-Mart global sourcing and supplier development head John Ryan will join Spice Depot as president of retail development worldwide, the company reported.
“The significance of the appointment of Ryan to our senior management team cannot be underestimated,” says Spice Depot president Danny Ferraro. “John is a true giant in the retail sector, known worldwide for the pivotal role he played in developing global sourcing and supplier development for Walmart.”
Global Sourcing is a Walmart-accredited procurement strategy aimed at leveraging global efficiencies in production.
Ryan began his career with Mercantile Stores where he stayed 20 years, ascending ultimately to the position of evp responsible for merchandising and marketing.
Ryan joined Walmart in 1995 as evp of international merchandising and marketing. He later assumed responsibility for global sourcing and supplier development. He retired from Wal-Mart in 2004.
Socol to retire as head of Barneys
NEW YORK Barneys New York announced today the resignation of Howard Socol as chairman, president and ceo. Socol served in that capacity since January 2001 through a period of significant growth at Barneys and through two changes in ownership of the company.
Mr. Socol stated, “After more than seven of the greatest years of my long career in retail, I felt it was time to take time to enjoy all the opportunities that life affords. I felt strongly about remaining with the company for a short period following the sale to Istithmar as well as through the opening of our Las Vegas flagship. With the sale process well behind us and the Las Vegas location having opened in January of this year, this is the appropriate time to move forward. Barneys is very fortunate to have a fantastic management team that has been together for many years and that has led Barneys to the preeminent place in luxury retailing today.”
During Socol’s tenure with Barneys, the Company initiated an expansion program and has opened four flagship stores, 15 Barneys New York CO-OP stores and two outlet stores. Socol will remain with the company through the end of June.