Walmart Needs to Cut Asda Loose

It’s time for Walmart to cut Asda’s apron strings, according to an analysis by Bloomberg.

It says the US retail giant has struggled with the UK supermarket it bought for £6.7bn in 1999. A sale to a private equity firm would make sense – but might need some concessions from Walmart to make it happen.

Read the full article on the Bloomberg website

NAM Implications:
  • We all know what has been happening, but when you see it in these three Bloomberg charts it really brings it home…
  • Thinking about it, Walmart has never been able to apply its basic tools organic growth – because of planning legislation – and growth by acquisition – because of competition law – in the UK.
  • At 8% of global Walmart sales, is low profile, but its lower margins are seen as dilutive of overall performance.
  • Time for a what-if on a sell-off?
  • With Private Equity an obvious option, the final paragraphs of the Bloomberg article give an interesting assessment of the financial rationale…