Sell Carrefour, Colruyt, Sligro!
ING has therefore lowered its advice for several retailers, like
Carrefour because of its declining sale of non-food and its dependence
of Southern European countries, where the crisis will lead to less
consumer spending.
Tesco and Marks & Spencer are also “Sell!”, as over half of their
home market sales is non-food. Metro barely manages to avoid that
warning, because of its decision to sell Kaufhof and Real. In the
Benelux, Belgian chain Colruyt (“slower profit growth”) and Dutch food
wholesaler Sligro (“lower out of home spendings”) should also be
avoided, says ING.
Better rating for Delhaize, Ahold, Morrisons
Delhaize, Belgium’s other main retail chain, fares better, just like
Dutch Ahold and British Morrisons. “Ahold finally started to adapt a
more aggressive strategy towards growth, while it is on the right track
with its Dutch and American e-commerce activities.”, says ING. Morrisons
on the other hand grows “above average” and is “a pure player in food,
unlike its main British competitors”.
Each year, ING also announces its “top picks” among retail shares:
French Casino (“successful in emerging countries”), Portuguese Jeronimo
Martins (“because of its Polish Biedronka supermarkets”) and – of course
– Inditex (“aggressive and very profitable expansion”).
