Feb. 26, 2014, 2:44 PM
- Three Senate Democrats have broken away from Majority Leader Harry Reid's $10.10/hour line in the sand on minimum wage legislation.
- Mary Landrieu of Louisiana, Mark Pryor of Arkansas, and Mark Warner of Virginia have all tipped off that they think there could be some room to negotiate over the amount of an increase over the current federal minimum wage of $7.25/hour. The GOP likes the status quo, but is viewed as likely to give some ground in an election year.
- Federal minimum wage legislation could create higher costs in the retail and restaurants sectors as companies adjust to the new higher floor.
- Last week, Gap made a preemptive move to raise its own hourly wage in a development that stirred the pot a little bit.
- Related stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, CEC, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, AEO, ANF, ARO, BBBY, BJ, CHS, COST, DG, DLTR, GPS, HD, JCP, JWN, KR, KSS, LOW, LB, NDN, ODP, PIR, PLCE, RSH, SPLS, SWY, TGT, TJX, URBN, WMT.
Feb. 23, 2014, 2:51 AM
- Private-equity firm Cerberus is the leading bidder for Safeway (SWY), Bloomberg reports, adding to a Reuters article that the two are close to a deal.
- The companies are still negotiating over price; Safeway's market cap is $9.09B.
- The grocery chain said last week that it's in discussions to sell itself.
- Other P-E firms are interested in buying Safeway in parts, although the company prefers to be sold in its entirety.
- Cerberus is willing to bid higher than other potential suitors, because it believes it can generate cost savings via a tie-up between Safeway and Albertsons, which the P-E company already owns.
Feb. 21, 2014, 12:52 PM
- Cerberus is closing in on a purchase of Safeway (SWY +3.9%) after months of talks, according to Reuters.
- A leveraged buyout deal could be announced within weeks.
- The P-E firm owns the Albertsons chain and could generate some significant synergies through shared costs of the two grocery store operators if antitrust issues can be resolved.
Feb. 20, 2014, 1:59 PM
Feb. 19, 2014, 4:18 PM
- In tandem with its Q4 results, Safeway (SWY) announces it's "in discussions concerning a possible transaction involving the sale of the company."
- The company also says it's exploring options for monetizing its 49% stake in Mexican grocery store chain Casa Ley, and has decided to distribute its 37.8M-share, 72.2% stake in Blackhawk Network (HAWK) to shareholders. Blackhawk shares are down 1.2% AH.
- Q4 results, PR
- Previous: Safeway reportedly open to talks with P-E firms
Feb. 19, 2014, 4:11 PM
Feb. 19, 2014, 4:00 PM
Feb. 19, 2014, 12:10 AM| 5 Comments
Feb. 18, 2014, 5:35 PM| Comment!
Feb. 13, 2014, 9:16 AM
- Despite a sluggish reading on retail sales in the U.S. for January, a couple of categories showed some strength.
- Building materials and garden equipment sales rose 3.7% Y/Y and 1.4% M/M in what could be a good trend for Home Depot (HD) and Lowe's (LOW).
- Grocery stores (KR, SVU, SWY, DEG, IMKTA) outperformed as well, up 4% Y/Y and 0.4% M/M.
Jan. 16, 2014, 9:43 AM
- A group of smaller food companies and health advocates deliver a letter to President Obama asking for tighter controls on labeling food that is genetically modified.
- The scientific community is split on the health impact of eating GMO food.
- An organization repping grocery stores (SVU, KR, SWY) opposes the measure as it could steer more traffic to organic sellers and justify their premium pricing.
- Related stocks: VLGEA, WFM, FWM, WFM, WWAV, BDBD, SFM, NGVC.
Jan. 14, 2014, 9:49 AM
- Retail sales were higher in the U.S. than many economists forecast as clothing stores performed well in the last week of the month on heightened promotional activity.
- Also pitching in was the grocery and beverage stores category (SWY, KR, DEG, IMKTA, SVU, LQSIF, BDL) which had its strongest month since October 2006 with a 2% gain.
Jan. 8, 2014, 10:31 AM
- A study by location analytics firm Placed gives some insight into the grocery store shopping behavior and spending decisions of a key customer segment - the army of mothers that can make-or-break consumer brands.
- Mothers were found to be 41% less likely to visit specialty grocery store Whole Foods Market (WFM) as the group opted for chains such as Kroger (KR), Aldi, Food Lion (DEG), and Hy-Vee. The implication could be strong for brands looking to sell directly to moms.
- The data also revealed that mothers shopping at Kroger and Safeway (SWY) preferred the websites of the grocers, while moms pushing carts down the aisle at Publix (PUSH) were more likely to scan barcodes and QR codes.
- The dollar store group (DG, FDO, DLTR) was also a much larger focus by moms than the national average for consumers.
- Full report from Placed.
Jan. 7, 2014, 8:12 AM
- A brutal weekly reading on store sales from ICSC-Goldman is directly attributable to winter storms and "statistical noise" from the end of the year.
- Sales fell over 5% on the year-over-year comparison.
- The research firm notes that the frigid weather has cut across retail except for grocery stores (KR, SVU, SWY, DEG, IMKTA) and online sellers (OSTK, NILE, BIDZ, AMZN) which saw sales levels hold up during the week.
- Family dining restaurants (CAKE, RRGB, IRG, DIN, DENN, CBRL) saw traffic slow to a crawl due to the winter weather slam.
- Related ETFs: XLY, XRT, VCR, RTH, RETL, FXD, PMR, FDIS, RCD, PEZ, PSCD
Jan. 6, 2014, 10:14 AM
- Shares of Whole Foods Market (WFM -4%) are down sharply in early trading as grocery stocks start the week off poorly.
- The move appears related in part to worries of lower store traffic and higher logistical costs for grocery store operators due to the recent winter storms in the U.S.
- Decliners: RNDY -2.4%, VLGEA -1.4%, SFM -1.1%, SWY -0.7%, FWM -2.5%, KR -0.4%, SVU -4.2%.
Dec. 6, 2013, 9:05 AM
SWY vs. ETF Alternatives
Other News & PR