Retail Gazette’s Post

Poundland’s Former MD Returns To Help Tackle Sales Crisis Less than two years after departing his role as Managing Director at Poundland, Barry Williams has rejoined the struggling retailer to help address its current underperformance. He was the discounter’s MD from 2017 until September 2023, leading a recovery of the business over the period. Poundland is now battling a more serious slump in sales following changes in its clothing and GM ranges, alongside tough trading conditions. A report by trade magazine The Grocer says Williams recently returned in a supervisory role on an interim basis to run a comprehensive assessment of the Poundland and Dealz chains in the UK and Ireland. The report notes that his appointment coincided with Stephan Borchert and Neil Galloway, the CEO and CFO of the Pepco Group, the retailer’s parent company, stepping down from the board of Poundland Ltd. Williams held a number of senior roles at Asda, including Chief Customer Officer, before joining Poundland in 2016, initially as Trading Director. When he departed the MD role in 2023, he was replaced by Austin Cooke. Earlier this week, Sky News reported that the Pepco Group had hired consultants from AlixPartners to address Poundland’s sales slump. Sources suggested that the crisis could prompt Pepco to explore more fundamental moves for Poundland, including a formal restructuring process that could lead to significant store closures or even an attempt to sell the business. However, the report stressted that no decisions had been taken and that the immediate focus was on improving Poundland’s cash performance and reviving the chain’s customer proposition. Among the measures the company has already taken to halt the chain’s declining performance has been to increase the range of FMCG and general merchandise products sold at its traditional £1 price point. Borchert has previously said he would consider “every strategic option” for reviving Poundland’s performance. He is expected to set out formal plans for the future of the chain, along with the rest of the group, at a capital markets day on 6th March. NamNews Implications: * Barry Williams clearly has the retail experience… * …plus sufficient Poundland experience to hit the ground running. * Fingers crossed… * Despite the overhanging probability of Pepco having to trigger a formal restructuring process that could lead to significant store closures… * …or even an attempt to sell the business. #Poundland #PoundShops

Retailers in the south-east of England will soon be able to access international products and core convenience lines at competitive pricing following the opening of a new cash and carry from Chetan Wholesale. The facility in Southend began trading in November, following the closure of the firm’s previous depot in Barking, east London. Chetan’s previous site had operated in the area for more than 40 years. https://lnkd.in/e9hHTHdg

Stiles and FCA Partners have acquired Shoppes of Wilton Manors, a 77,746-square-foot neighborhood retail center in Wilton Manors, Fla., part of Greater Fort Lauderdale: https://lnkd.in/d6JAuKnZ

Breaking: Frasers Group has made an £83m takeover bid for Mulberry England as it criticised the retailer for not informing it about its fundraising plans, saying Frasers "will not accept another Debenhams situation where a perfectly viable business is run into administration". Read more below. #Mulberry #frasers #fashion #retail #retailnews

Maxol, Northern Ireland’s leading forecourt and convenience retailer, has announced the renewal of its strategic alliance with the Henderson Group in a deal worth more than £625M.

It was less than a year ago when Casey's acquired Douglass Distributing and its Lone Star stores, giving Casey's a position in the coveted DFW market. As far as deals go, that transaction was relatively modest but critically important. Douglass and its Lone Star properties were run by the venerable Bill Douglass and his son; and his daughter, Diane McCarty, had crafted an excellent moderate-size retail chain https://lnkd.in/ewer2-qx. I reference that deal because it was a pacesetter for today's significant deal, in which Casey's is acquiring the nearly 200-unit CEFCO network run by the Fikes family. This, coupled with Yesway's major investment in the Dallas-Ft. Worth market and 7-Elevens purchase of Cal's, now makes this market one of the most hotly contested... will be fascinating to watch as the 3 heavyweights operate very different business models. #cefco #caseys #yesway #lonestar #7eleven

If Canadian convenience store operator, Alimentation Couche-Tard (Circle-K) is allowed to acquire Seven & i Holdings (7-Eleven Inc), this would be the biggest M&A deal in the history of convenience stores space at U$38bn. Just 3 years back, in 2021, Seven & i holdings acquired Speedway for U$21bn, largest ever North American M&A deal in convenience stores space. I no longer cover or follow the equity markets. But this news caught my eye. And I just had to do some idle musings (force of habit). I keep thinking, how the top ranked company is getting an M&A offer from the second-largest company in this industry, that too at a time when interest rates have not yet moved down in the US. Perhaps they are planning on borrowing/raising funds for this acquisition from outside of US or they are betting on Fed rate cuts before the deal is closed (if that becomes an eventuality).

Another supermarket SOLD by Mathew Hartley – the Supermarket Specialist! 🛒✨ This thriving business has found its new owner, thanks to our expertise in connecting buyers and sellers. Whether you’re looking to sell or buy, we’re here to make it happen. Get in touch today to explore your opportunities on 1300 366 521! #benchmarkbusiness #mathewhartley #supermarketspecialist #anothersold #businessesforsale #nsw #benchmarkvaluations #forsale #benchmarkcorporate

Update Negotiating Tip: Billionaire Issa brother nears deal to sell Asda stake to TDR Capital. ( see Tip in comments) Zuber Issa began talks earlier this year about selling his stake in Asda, and plans to step back as co-chief executive officer of EG Group According to The Standard (Link in comments below): The agreement for Issa’s 22.5% stake would give TDR majority control ( 67.5%) and could be announced in coming weeks, the people said, asking not to be named with negotiations in flux. NamNews Implications * TDR will have majority control of Asda, meaning potentially more PE influence on how Asda is run as a business/ retailer… * Therefore potentially a selloff of less profitable assets/shops, and leaseback of those they need for market coverage * EBITDA becomes an even more important KPI * Key will be assessment of any potential cuts to reduce the interest burden  * i.e. everything being done faster… Action for NAMs: Meanwhile, NAMs should now focus more on affecting Asda EBITDA in negotiations: i.e. Any trade investment / cost saving, use EBITDA multiplier instead of Net Margin multiplier. Asda latest Sales 2022 £20.45bn, Adjusted EBITDA £886m, a 4.3% of sales, now means a supplier's £10k investment (or a £10k saving for Asda) is equivalent of £232k Sales for Asda! Focusing on Asda Net Margin is irrelevant to a PE focused Asda... ( Asda is due to release its full year trading update on Monday) #Asda #PrivateEquity

7 retailers that have gone bust so far this year Ted Baker became the latest high street casualty last month when the brand’s UK operator No Ordinary Designer Label called in administrators. It is one of several collapses reported so far this year following a record number of retail insolvencies in the year to January 31. Retail Gazette takes a look at the retailers that have gone bust so far in 2024. #Uk #retailer #insolvency #result #strategy