The fall of A&P into bankruptcy attracted some criticism of the US retailer’s management this week, while, on this side of the pond, UK convenience retailers hit out at Tesco’s latest acquisition in the channel. The UK’s largest retailer was also named as a potential suitor for Poland’s Zabka as speculation over further consolidation in emerging markets continued. Wal-Mart Stores, however, has hit a wall in Russia and closed its office that was exploring how to enter the market.
“The management is where the problem is. They kept repeating the same mistakes over and over. Every acquisition they made failed” – US supermarket analyst David Livingston questions the track record of the management at retailer A&P, which has filed for Chapter 11 protection.
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“Since we have decided to enter the market through acquisition, not greenfield development, and since there is no clear acquisition partner in the near term, there is not a business reason to continue our Moscow representative office” – Doug McMillon, CEO of Wal-Mart Stores’ international arm, explains why the world’s largest retailer has closed its Russian office.
“The Zabka stores could be another chance for Tesco to revive plans to enter the franchise segment of the Polish grocery market – so far not served by the company” – Dominika Kubacka, an analyst at PMR Corporate, advisers to investors in Eastern Europe, suggests why Tesco could be interested in buying local retail chain Zabka.
“We need a full and robust investigation into the implications of the continued growth of the One Stop format” – James Lowman, chief executive of the UK’s Association of Convenience Stores, reacts negatively to Tesco’s acquisition of 77 stores from Mills Group through its One Stop chain.
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By GlobalData“It is very different in the UK right now and it has led to an intensely promotional environment across many categories” – Speaking as General Mills issued its half-year results, the US group’s chief Ken Powell says competition is fierce in the UK.
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