Monday’s Eye-on-Retail Tipsheet: Hudson’s Bay Acquires Saks | Publicis-Omnicom Merger | Wmart Canada Expansion
“Saks Fifth Avenue bought by Lord & Taylor owner: sources” by James Covert at NY Post. “The swanky luxury chain has struck a deal to be acquired by Hudson’s Bay, the Canadian department-store chain that owns Lord & Taylor, sources told The Post. The deal is expected to be announced as soon as today. “It’s a done deal — Baker has won his prize,” said one source briefed on the negotiations, referring to Hudson’s Bay chairman Richard Baker, a savvy New York real-estate tycoon said to have coveted Saks even before scooping up Lord & Taylor in 2006.” Read more
“Kroger Rumored Bidder for A&P Grocery Chain” by Steve Watkins at Cincinnati Business Journal. “The Journal cited a person familiar with the matter in reporting that Kroger is one potential bidder. However, Kroger CFO Michael Schlotman had said on a July 9 conference call discussing the Harris Teeter deal that the size of that acquisition could make it tough for Kroger (NYSE: KR) to do any other sizable deals in the next six months.” Read more
“Walmart makes push in Atlantic Canada” at Truro Daily News. “The massive, 13,500-square-metre store is one of nine supercentres planned for the region and one of 37 projects (in Canada) that will involve expansion, remodelling or relocating existing stores across the country at a cost of $450 million. Walmart will spend about $90 million on the Atlantic expansion in New Brunswick and Nova Scotia, adding 300 positions.” Read more
“Omnicom, Publicis to combine into biggest ad firm” by Thomas Adamson at AP. “If the Omnicom-Publicis combination goes through, the combined company would account for nearly 40 percent of the U.S. ad industry, twice as much as the nearest competitor, WPP, according to Brian Wieser, an analyst at Pivotal Research Group in New York. Wieser said Sunday the deal came as a surprise to many in the industry. Omnicom, he said, has “always been viewed as too large to get any larger.” The combined company will have more than 130,000 employees.” Read more
“Is The Publicis-Omnicom Merger A Sign Of Strength Or Weakness?” by Avi Dan at Forbes. “The answer is not mergers. The answer for the advertising industry is to change its model and the way it prices its product. Agencies give away their highest value product – their strategic thinking – for free and try to make a profit off implementation work. However, implementation is often a commodity. It reduces the client-agency relationship to a mere transactional level, of buyer and vendor.” Read more
“With Obama Visit on Tap, Amazon Announces 5,000 New Jobs” by Jason Del Ray at All Things D. “The hiring will occur both at current and new fulfillment centers, as Amazon expands its AmazonFresh grocery delivery business and competes with eBay and others to bring same-day delivery to the masses.” Read more
“Walmart Halts India-Specific Lobbying In U.S.” at Indolink. “Walmart and many other overseas supermarket chains have been wanting to set shop for many years in India, which opened up this business for foreign players last year with a 51 per cent equity cap despite stiff political opposition. Still, there are many restrictions, such as those on sourcing of products that are keeping foreign multi-brand retailers away from the country.” Read more
“Your next meal may come compliments of Amazon” by Jane Wells at CNBC. “CNBC tested the service, ordering about $40 worth of groceries to be delivered the following morning between 7 and 8. The bright-green AmazonFresh food truck arrived at 7:51, and the delivery person, Raul Ruiz, said it was his 14th stop so far that day. “I am extremely busy,” he said. Wal-Mart has tested grocery deliveries in the Bay Area since 2010 but has yet to expand it.” Read more
“Who’s afraid of Walmart? – As a new Toronto Walmart looms, Kensington Market is divided between fear and admiration.” by Eric Andrew-Gee at Toronto Star. “Zimmerman’s is a grudging acceptance — his attitude amounts to an existential shrug. “This is the way of the world,” he said. “The big are getting bigger and the small are having to reinvent the wheel.”Ossie Pavao, the owner of Kensington café and spice depot Casa Acoreana, is a lot more sanguine about the potential new neighbour.” Read more
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