Retail news round-up on June 2, 2015: Tesco Clubcard value slashed,cosmetics retailer Douglas sold to CVC and 3.4m pop-up shops in UK by 2017
Bidders slash offer value for Tesco Clubcard unit
Prospective private equity groups bidding to snap up Tesco Clubcard unit Dunnhumby began holding meetings with the grocer last week - and have since cut their projected valuations of the company from £2bn to around half that sum.
Those who expressed interest are understood to have been informed that a renegotiation of Dunnhumby’s relationship with US retailer Kroger meant that the profitability of the business that is being marketed for sale is now substantially lower, according to Sky News.
Cosmetics retailer Douglas sold to CVC Capital Partners
Private equity group CVC Capital Partners has agreed to snap up German perfume and cosmetics retailer Douglas from US buyout firm Advent. The chain said it had decided that this investment was the first best option and an IPO only the second best for the company. Chief executive Henning Kreke will continue in his role. The founding Kreke family would remain a minority shareholder with a 15% stake. Financial terms of the deal were not disclosed. However, a person familiar with the matter told Reuters that it was close to €3bn (£2.17bn).
Would-be entrepreneurs to launch 3.4m pop-up shops in UK by 2017
A new survey has found that almost a third of new UK businesses over the next two years will start life as a pop-up shop. In a poll of 2,000 consumers by telecoms company EE, of the 29% that were planning to start businesses within the next two years, 29% will do so by launching a pop-up store to test out the market and hone their product offering. If these data are extrapolated across the UK, there will be 11.6m start-up entrepreneurs creating 3.4m pop-up shops by 2017.
According to the study, 30% of would-be entrepreneurs are seeking to launch a pop-up selling food, reflecting the growing trend towards street food, reported the Telegraph. Some 18% will offer drinks such as cocktails or coffee, 15% will sell arts and crafts, 12% are fashion brands, while 11% will offer jewellery or accessories, such as handbags.