Belarusian retailer Eurotorg has successfully priced a $350 million eurobond, with an annual coupon rate of 8.75%, maturing on 30 October 2022. Earlier this month it was reported that the supermarket operator was set to issue the bond, which is the first ever corporate eurobond placed in Belarus. The retail group says that it intends to use to proceeds of the transaction to refinance existing debt and for general corporate purposes. (esmmagazine.com)
US: Target CEO says small-format stores twice as productive
Sales per square foot at Target Corp’s 44 small-format stores are “easily double” that at traditional stores, Target Chief Executive Brian Cornell said on Thursday, after the retailer announced 11 new small-format stores opening this week. Target said it recorded an average of $300 in sales per square foot across its stores, compared with at least $600 in sales per square foot from its small-format stores. In a turnaround bid announced in February, the retailer vowed to double the number of small-format centers, remodel its stores, invest heavily in e-commerce, aggressively promote its products and keep grocery prices low to compete with Wal-Mart, Amazon and supermarket chain Kroger Co. Target’s more than 70 newly remodelled stores have seen an average 2-4 percent increase in sales since being renovated, Cornell said. (Reuters)
Germany: Metro reports sluggish quarterly sales growth
German retailer Metro reported that sales growth slowed in the final quarter of its 2016/17 fiscal year as like-for-like growth stalled in its wholesale stores in Germany and also slowed in its Real hypermarkets. Fourth-quarter sales rose 0.7 percent to 9.2 billion euros ($10.86 billion), below average analyst forecasts for 9.3 billion euros, according to Thomson Reuters SmartEstimates. Same store sales rose 0.5 percent, compared to 2.6 percent the previous quarter. (Reuters)
UK retail sales growth slumps to weakest in four years
UK retail sales fell more than forecast in September, leaving growth in the third quarter at its weakest in four years. Sales dropped 0.8% from August, far more than the 0.1% estimated in a Bloomberg survey. Over the third quarter, annual growth slowed to 1.5%, the worst performance since October 2013, according to data from the Office for National Statistics in London. (esmmagazine.com)ICA Gruppen's acquisition of IKI approved by Lithuanian authorities
Swedish retailer ICA Gruppen announced that its acquisition of UAB Palink, which operates Lithuania's IKI grocery store chain, has been conditionally approved by the country's competition authorities. ICA signed an agreement to acquire UAB Palink in December 2016 for €213 million, however, the Lithuanian Competition Authority had raised concerns about certain geographical areas. Earlier this month, ICA proposed the sale of 17 of its Rimi stores in Lithuania, to facilitate the merger. (esmmagazine.com)
Walmex posts Q3 revenue growth after earthquake sales boom
Mexican retailer Wal-Mart de Mexico on Thursday reported a 7.8 percent rise in third-quarter revenue, benefiting from earthquakes in Mexico last month that prompted shopping sprees for donations of supplies to displaced people. Walmex’s quarterly revenue hit 136.8 billion pesos ($7.5 billion), compared with 126.9 billion in the same quarter last year, with Mexico sales climbing 8.9 percent and Central America sales rising 10.2 percent. (Reuters)