Thu, May 14, 9:47 PM
- Consolidation in the grocery industry could pick up even more, observes Supermarket News.
- A large merger between Albertsons and Safeway (NYSE:SWY) has been followed by talks between Delhaize (NYSE:DEG) and Ahold (OTCQX:AHONY).
- The increased push by Wal-Mart and Target in the sector has added pressure to leverage store growth through M&A.
- "There is mounting pressure in the supermarket industry to consolidate operations to drive better purchasing power and leverage distribution and technology platforms," notes Wolfe Research.
- Kroger (NYSE:KR) is seen as a likely candidate to look for a chain to acquire.
- Previously: Ahold, Delhaize confirm merger talks (May 12)
- Grocery stocks: RNDY, SVU, VLGEA, WFM, CASY, IMKTA, OTCPK:PUSH, TFM, SFM, WMK.
Tue, May 12, 3:19 AM
- Dutch food retailer Royal Ahold (OTCQX:AHONY) and Belgium's Delhaize (NYSE:DEG) have confirmed they are in talks about a possible $25B merger that could also create one of the largest supermarket operators across the Atlantic.
- Despite being based in Europe, both companies generate about 60% of their sales in the U.S.
- Ahold operates the Stop & Shop and Giant chains, as well as online grocery store Peapod, while Delhaize operates the Food Lion and Hannaford banners.
- Previously: Ahold, Delhaize surge on merger reports (May. 11 2015)
Mon, May 11, 10:52 AM
- Delhaize (NYSE:DEG) is up 13.3% after reports on a merger with Ahold (OTCQX:AHONY +3.8%) drove up shares listed in Europe earlier today.
- The talk of industry consolidation has some other U.S. grocery stocks ahead of market averages as well.
- Grocery gainers: Kroger (NYSE:KR) +1.0%, Whole Foods Market (NASDAQ:WFM) +1.2%, Roundy's (NYSE:RNDY) +1.0%, Supervalu (NYSE:SVU) +1.0%, Fairway Group (NASDAQ:FWM) +0.9%, Ingles Markets (NASDAQ:IMKTA) +9.8% with earnings also a factor.
- Previously: Ahold, Delhaize surge on merger reports
Mon, May 11, 6:20 AM
- Royal Ahold (OTCQX:AHONY) and Delhaize (NYSE:DEG) surged in early European trading after weekend reports that the Dutch and Belgian retailers are in talks to merge, a deal that would pool U.S. chains Stop & Shop and Food Lion.
- Delhaize soared as much as 18%, valuing the company at €8.8B ($9.8B), while Ahold advanced as much as 10% for a valuation of €17B.
- Talks between the companies are at a preliminary stage, Belgian newspapers De Tijd and L'Echo reported on Saturday.
Wed, Apr. 29, 2:24 PM
- Delhaize (DEG -7.3%) trades lower after report negative comparable-store sales growth in Belgium and Southeast Europe.
- The comp in the U.S. was positive at 2.5%.
- Operating margin by region: U.S. 3.8%, Belgium 1.4%, Southeast Europe 2.3%.
- The company is rolling out its Easy, Fresh & Affordable program at another 160 Food Lion stores this year.
- Previously: Delhaize reports Q1 results
- Delhaize earnings release (.pdf)
Wed, Apr. 29, 6:06 AM
Thu, Mar. 5, 12:44 PM
- Strong reports from Kroger and Delhaize are helping to provide a lift for the grocery store sector.
- Earlier this week, privately-owned Publix reported comparable-store sales rose 6.4% in Q4.
- Comps are on the rise and margin gains are being squeezed out by operators off of the sales leverage.
- Solid gains for the day on strong volume are being seen up and down the group: Kroger (NYSE:KR) +4.9%, Whole Foods Market (NASDAQ:WFM) +1.6%, Supervalu (NYSE:SVU) +1.5%, Delhaize (NYSE:DEG) +3.7%, The Fresh Market (NASDAQ:TFM) +1.2%, Ingles Markets (NASDAQ:IMKTA) +2.3%, Fairway Group (NASDAQ:FWM) +2.6%, Roundy's (NYSE:RNDY) +14.9%.
Thu, Mar. 5, 8:44 AM
- Delhaize (NYSE:DEG) reports sales in the U.S. rose 12.1% to $4.67B on a positive real sales growth from the Food Lion and Hannaford chains.
- The U.S. comp grew 3.6% during the quarter.
- Sales in Belgium declined 6% and the comp in the region fell 6.9%
- Sales in Southeastern Europe grew 4% while comp contracted 2.2%.
- Total organic revenue +1.3%
- Gross margin rate declined 24 bps to 23.9%.
- Store count +66 Y/Y to 3,468.
- DEG +3.66% premarket.
- Q4 results
Thu, Mar. 5, 7:16 AM
Mon, Jan. 26, 10:17 AM
- Delhaize (DEG +6.2%) reports sales in the U.S. rose 12% to $4.7B on a solid performance from the Food Lion and Hannaford chains.
- A 3.6% comp in the U.S. helped to offset Delhaize's negative comps in Belgium and Southeastern Europe.
- The company's U.S. results were boosted by an additional week for the reporting period compared to a year ago.
Wed, Jan. 21, 7:37 AM
- Grocery store chains stand to lose from the decision by the Supreme Court to reject a case on the swipe fee cap, according to analysts.
- Almost 70% of purchases in grocery stores are paid for by consumers with credit or debit cards.
- Operating margins in the industry tend to be very low.
- In some cases, the interchange fee which goes to the processing bank is higher than the profit margin on the grocery item.
- Trade groups repping the grocery industry wanted a cap of $0.07-$0.12, instead of the $0.21 approved by the Fed.
- Previously: Supreme Court passes on looking at swipe fees cap (Jan. 20 2015)
- Grocery store stocks: IMKTA, NGVC, TFM, SFM, SWY, DEG, SFS, WFM, SVU, KR, CASY, WMK, VLGEA.
Nov. 6, 2014, 6:30 AM
Sep. 15, 2014, 10:13 AM
- Shares of Diageo (DEG +1.1%) and Constellation Brands (STZ +0.9%) are both higher in early trading with beer consolidation talk continuing to build up.
- Molson Coors (NYSE:TAP) is up over 6.4% on volume already 3X normal activity.
- Carlsberg (OTCPK:CABGY), which has been tapped as a potential merger candidate, is also in rally mode with shares +2.1%.
- Altrai (NYSE:MO) is 2.5% higher with its stake in SABMiller rising in value.
- Beer news: Heineken rebuffs SABMiller, A-B lines up financing for potential SABMiller bid.
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