Wed, Nov. 9, 1:14 PM
- Retail store chains are breaking higher as investors digest the impact of the GOP sweep.
- A very popular topic on Q3 conference calls was election anxiety in the U.S., with the thought that consumers were holding back.
- An interesting point is that in recent consumer sentiment surveys Republicans showed a sharply lower positive reading on the state of affairs than Democrats. If the theory holds out, close to 60M Trump voters will now open their pocketbooks a bit more.
- Gainers include Fred's (FRED +10.5%), Tuesday Morning (TUES +7.1%), Kroger (KR +4.2%), Whole Foods Market (WFM +2.5%), Supervalu (SVU +4.2%), Ollie's Bargain Outlet Holdings (OLLI +3%) Stage Stores (SSI +6.7%), Build-A-Bear Workshop (BBW +2.7%), Kohl's(KSS +3.3%), Dillard's (DDS +2.2%), Stein Mart (SMRT +4.5%), Tailored Brands (TLRD +4.1%), Guess (GES +3.6%), Gap (GPS +3.1%), Buckle (BKE +3.6%) and PriceSmart (PSMT +1.4%).
Thu, Oct. 27, 2:41 PM
- Amazon (NASDAQ:AMZN) sees an opportunity in the U.S. to open up as many as 2K Amazon Fresh grocery stores in the next ten years, according to Business Insider.
- A 20-store pilot program is expected to be up and running by the end of 2018, with a mix of traditional-style grocery stores and online pickup locations.
- Internal documents reviewed by BI indicate that Amazon is still deciding if the stores will be tied to Amazon Prime memberships.
- Amazon's determination with a large-scale store roll-out could have significance for grocery stores and other retail chains (WMK, SVU, WFM, IMKTA, CASY, KR, SFS, WBA, CASY, WMT, TGT, RAD) as they consider their own future models.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, CNDF, FTXD, JHMC.
Wed, Oct. 19, 6:52 AM
- Supervalu (NYSE:SVU) reports Save-A-Lot net sales fell 2.8% to $1.06B in FQ2.
- Identical store sales for corporate stores within the the Save-A-Lot network dropped 5.2%.
- Wholesale net sales slipped 5.5% to $1.73B primarily due to stores from the prior year no longer supplied by the company.
- Retail net sales decreased 5.4% to $1.03B and identical store sales down 5.9%.
- Gross margin rate +10 bps at 14.5%.
- Adjusted SG&A expense rate rose 50 bps to 12.4%.
- Operating margin rate remained flat Y/Y at 2.3%.
Wed, Oct. 19, 6:30 AM
Tue, Oct. 18, 5:30 PM
Mon, Oct. 17, 10:06 AM
- Supervalu (NYSE:SVU) is up 7.78% to $5.40 after announcing the sale of its Save-A-Lot business. Shares have traded as high as $5.49.
- The company plans to use the part of the proceeds to pay off $750M of an outstanding term loan.
- Beyond competing with other grocery store chains, Save-A-Lot scraps with dollar stores and Wal-Mart for market share in many geographic markets.
- Previously: Supervalu unloads Save-A-Lot business for $1.365B (Oct. 17)
Mon, Oct. 17, 7:01 AM
- Supervalu (NYSE:SVU) announces it sold the Save-A-Lot business to Onex Corporation for $1.365B.
- As part of the deal, the company will enter into a five-year professional services agreement with Save-A-Lot.
- The closing of the transaction is expected to occur before January 31, 2017.
- SVU +8.18% premarket to $5.42.
Tue, Oct. 11, 1:35 PM
- A large part of the retail sector will need to keep a watchful eye on Project Como at Amazon. The plan from the Seattle company to sell perishables out of small brick-and-mortar stores could be a disrupter if it were to be built out at scale.
- Convenience store chains such as Casey's General Stores (NASDAQ:CASY), Murphy's USA (NYSE:MUSA), and CST Brands (NYSE:CST) are already being targeted by 7-Eleven's aggressive expansion goals in the U.S. A store roll-out by Amazon could also impact drug store chains Walgreens (NASDAQ:WBA) and Rite Aid (NYSE:RAD) - as well as apply pricing pressure to the sensitive grocery store sector (KR, SVU, SPTN, IMKTA).
- Previously: 7-Eleven eyes huge expansion in U.S. (Sept. 22)
- Previously: Amazon considered to be planning convenience stores, curbside pickup locations for grocery products (Oct. 11)
Sat, Oct. 8, 9:09 AM
- Retailers want the U.S. election over and quick. The negative tone has created a degree of uncertainty with consumers that has impacted spending and traffic patterns, according to a host of top execs.
- "There is just great uncertainty as to what is going to happen in the U.S. in particular as a result of the outcome of the election," noted Yum Brands (NYSE:YUM) CEO Greg Creed recently. "People may be hunkering down a little bit," he added.
- Expect the topic to be raised on a large number of Q3 earnings calls over the next month to explain away revenue misses.
- It's not an excuse that everyone is buying into. Retail Metrics president Ken Perkins doubts that daily shopping needs are cut short by election fascination and notes consumer confidence is measuring high. Then there's Amazon (NASDAQ:AMZN) which seems to be rolling right along without any Clinton-Trump fatigue.
- Beyond the election wildcard, two underestimated factors impacting some retailers in a more concrete way are the lower level of SNAP (food stamps) benefits being paid out by the government and the elevated cost of health care. There is also the massive challenge with a millennial generation that shuns chains. Just ask anyone in the restaurant sector (NASDAQ:BITE).
- Add it all up and it makes for a challenging period for a mix of retailers that includes Dollar General (NYSE:DG), Dollar Tree (NASDAQ:DLTR), Fred's (NASDAQ:FRED), Ross Stores (NASDAQ:ROST), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Staples (NASDAQ:SPLS), McDonald's (NYSE:MCD), Popeyes Louisiana Kitchen (NASDAQ:PLKI), Wendy's (NYSE:WEN), Supervalu (NYSE:SVU), Kroger (NYSE:KR), SIgnet (NYSE:SIG), TJX Companies (NYSE:TJX), and Casey's General Stores (NASDAQ:CASY).
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, UGE, SZK, CNDF, FTXD, JHMC.
Thu, Sep. 29, 1:26 PM
Tue, Sep. 27, 1:31 PM
- Food prices are in one of their longest period of deflation since 1960 in a devastating trend for grocery store chains.
- USDA data shows nine straight months of year-over-year declines, including the sharpest of the bunch in August when prices peeled back 1.9%.
- While lower commodity costs are in play in many key categories (milk, eggs, meat), it's the relentless pressure from Wal-Mart, Aldi's, Dollar General, and even Amazon to increase traffic that's the real margin pincher.
- "It starts to border on irrational pricing," notes Bloomberg Intelligence analyst Jennifer Bartashus on the development.
- A more detailed look at food prices is available inside the latest CPI report from the Bureau of Labor Statistics.
- Related stocks: KR, SFM, WFM, SVU, WMK, IMKTA, SPTN.
Wed, Sep. 14, 2:09 PM
- All eyes in the retail sector will be on the Department of Commerce's report on August sales tomorrow. Economists will be looking for confirmation that the dip into negative territory in July was only transitory. The impact of the recent slowdown in auto sales has been debated, with some analysts saying it's indicative of tight consumer spending, while others feel it reverses the "crowding out" effect of auto purchases.
- The consensus estimate is for a 0.4% M/M gain after backing out the gas and auto categories. The direction of U.S. retail sales will also give Fed watchers their latest talking point.
- If there's a wildcard in the mix, it could be price deflation in the grocery store category (KR, SFM, WFM, SVU, WMK, IMKTA). That pricing weakness could also spill over to affect general merchandise stores (WMT, TGT), drug store chains (WBA, RAD), and even nip at chains like Casey's General Stores (NASDAQ:CASY) and CST Brands (NYSE:CST).
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, UGE, SZK.
Thu, Sep. 8, 12:50 PM
Thu, Sep. 8, 9:23 AM
Thu, Sep. 8, 8:38 AM
- Execs in the grocery sector have painted a bleak picture this week on current sales trends during their presentations at various retail conferences.
- Weak pricing has been a major talking point, while some companies say a lower level of government benefits have also come into play.
- While the down trend was tipped off a few weeks ago when the Commerce Department reported a drop in grocery store sales for July, the new twist is that companies such as Supervalu (NYSE:SVU) and Sprouts Farmers Market (NASDAQ:SFM) are now talking about the pressure extending through the end of the year.
- Related stocks: KR, WFM, SFS, IMKTA, WFM, CASY, VLGEA, WMK, TGT, WMT.
Thu, Sep. 8, 7:09 AM
- Supervalu (NYSE:SVU) slumps in early trading after the company lowered guidance.
- The company sees a 5% Y/Y drop in full-year adjusted EBITDA due to a challenging sales environment that has impacted results across the Retail and Save-A-Lot segments.
- Supervalu execs are due to present later today at the Goldman Sachs Global Retailing Conference.
- SVU -5.85% premarket to $5.15.