Tesco Team Eyes Albertson’s
London, Reuters reported that Tesco, Britain’s most prominent retailer, sent representatives stateside to consider a bid for Albertson’s, one of America’s top grocery chains.
Despite having 2,500 stores and annual revenues of more than $40 billion, Albertson’s has been facing intense competition from retail powerhouse Wal-Mart. As a result, the grocery chain recently hired investment bankers in order to explore its options on the market.
With a reported price tag of $7.6 billion, Albertson’s seems to have caught Tesco’s eye, at least momentarily. As the British retail giant reports half-year results this week, it continues to look for a way to tap the lucrative U.S. market. Tesco has already begun expanding into eastern Europe and east Asia.
In addition to Britain’s largest—and rapidly expanding—food retailer, France’s Carrefour and Belgium’s Delhaize have expressed interest in Albertson’s. The world’s largest retailer, Wal-Mart, is also courting the grocer.
Radio Shack Ordered by Judge to Pay Overtime
Fort Worth, Texas, In a ruling in Chicago, a federal judge has ruled that several hundred RadioShack Corp. store managers are entitled to overtime pay. A class-action lawsuit was filed in 2003 against the Fort Worth, Texas-based electronics retailer, alleging that employees classified as exempt from overtime pay were, in fact, not exempt.
Even with this current ruling, the case is far from over. Another suit, also involving overtime nonpayment allegations, is pending, and an attorney for the plaintiff group said the number being carved out is “in the hundreds” and the amount due them is “in the millions.”
Starbucks CEO Sees Health-Care Crisis
Seattle, Starbucks expects to spend more than $200 million this year for health care for its 80,000 U.S. employees, more than the total amount it spends on the raw materials or green coffee it buys from Africa, Indonesia, and other countries, according to a report in the Thursday edition of The Seattle Times. Starbucks has been widely heralded for its policy of providing health-care coverage to employees who work at least 20 hours a week.
Starbucks CEO Howard Schultz made the comments in a meeting with Sen. Patty Murray and Rep. Adam Smith in Washington, D.C. He and other executives, including Costco CEO Jim Sinegal, were in the nation’s capital to attend a health-care summit. Schultz said his company has faced double-digit increases in insurance costs each of the past four years.
“It’s completely nonsustainable,” he said, in remarks quoted in the newspaper.
Schultz and the other executives are looking to bring attention to what they believe is a growing crisis threatening U.S. businesses. The Starbucks chief executive did not endorse any specific legislation, but he reaffirmed his belief that every American should have access to health insurance.