TOP NEWS
* Media company Yahoo Japan Corp. will acquire a 50.1% stake in Japanese e-commerce company Zozo Inc. from founder Yusaku Maezawa and other shareholders for about ¥400 billion, or $3.71 billion. Upon completion of the deal, Zozo will become Yahoo Japan's subsidiary and remain listed on the Tokyo Stock Exchange. Maezawa will resign from his position at Zozo as representative director and director to allow his successor, Kotaro Sawada, who was named representative director, president and CEO, to lead the company and expand it under the new ownership.
* Struggling apparel retailer Forever 21 Inc. will file for bankruptcy as early as Sept. 15 and close some of its more than 700 stores in the process, The Wall Street Journal reported, citing people familiar with the matter. "Our stores are open and it is our intention to continue to operate the vast majority of U.S. stores," the company reportedly said, adding that it has no plans to file for bankruptcy on Sunday.
TEXTILES, APPAREL AND LUXURY GOODS
* U.K. digital fashion retailer N Brown Group PLC said it would make an additional provision of £20 million to £30 million in its fiscal first half results to cover possible payment protection insurance reimbursements after a surge in inquiries ahead of an Aug. 29 claims deadline. Its shares fell 5.5% in early London trading.
MULTILINE RETAIL
* Texas-based department store chain Neighborhood Goods Inc. said it received the first tranche of a $10 million funding from three investors.
* Dollarama Inc. reported second quarter 2020 diluted net EPS of 45 Canadian cents, up 7.1% year over year but below the S&P Global Market Intelligence consensus estimate of 46 cents. Sales for the period increased 9% to C$946.4 million. The dollar store chain also declared a dividend of 44 cents, unchanged from the previous quarter, payable Nov. 8 to shareholders as of Oct. 11.
* Hudson's Bay Co. reported a net loss from continuing operations for the second quarter of 2019 of C$462 million, compared to a C$104 million loss a year ago, while total revenue dipped 0.4% year over year to C$1.85 billion, despite a 19% year-over-year increase in digital sales.
E-COMMERCE
* Amazon.com Inc. is compromising on safety compliance for some toys sold on its marketplace by not validating safety documents from toy sellers before listing the products, CNBC reported. Some sellers confirmed to CNBC that the e-commerce giant did not ask for safety documents prior to listing their products on Amazon's website. An Amazon spokesperson told S&P Global Market Intelligence in an email that all of the company's products comply with applicable laws and that it regularly contacts partners to request safety documents to ensure products meet their standards.
* The U.S. Federal Trade Commission started interviewing sellers on Amazon's platform as part of its investigation into the e-commerce giant's power over competition, Bloomberg News reported, citing three merchants. The vendors reportedly said the FTC's team, which included several attorneys and at least one economist, asked what percentage of their revenue came from Amazon compared to other online marketplaces as the more sales they make from Amazon, the more vulnerable they are to the company's demands and policy changes.
* Amazon's Japanese unit is collaborating with FamilyMart Co. Ltd., Fuji Citio and Odakyu Electric Railway Co. Ltd. to roll out Amazon Locker pickup kiosks in retail outlets and train stations across the country in 2019, the Nikkei Asian Review reported. Amazon Japan is expected to expand the service to 500 to 1,000 locations in the next few years.
* Groupon Inc. is looking to acquire Yelp Inc. at a time when the e-commerce company is under pressure from investors to sell itself or repurchase shares to boost its share price, The Wall Street Journal reported, citing people familiar with the matter. Both Groupon and Yelp reportedly declined to comment.
FOOD AND STAPLES RETAILING
* Wm Morrison Supermarkets PLC posted underlying diluted EPS of 6.29 pence for the first half of 2018-2019, up from 6.01 pence a year ago. Total revenue grew 0.4% year over year, or 0.3% excluding fuel, to £8.83 billion. The company also said it will expand its store on Amazon Prime Now to more cities across the U.K, beginning in the third quarter.
* John Lewis Partnership PLC reported a half-year loss before partnership bonus, tax and exceptional items of £25.9 million, compared with a profit of £800,000 in 2018, driven by an increase in operating losses before exceptionals, among others. Group sales for the six month period ended July were down 1.2% year over year to £5.42 billion. The retailer also said it expects retail conditions to "remain challenging," adding that "should the U.K. leave the EU without a deal, we expect the effect to be significant and it will not be possible to mitigate that impact."
HYPERMARKETS AND SUPERCENTERS
* Walmart Inc. is looking to expand its grocery delivery membership program to more than 1,400 stores across the U.S. in fall 2019. The option, called Delivery Unlimited, allows shoppers to receive unlimited Walmart grocery delivery orders for an annual fee of $98, or $12.95 on a monthly basis.
HOUSEHOLD DURABLES AND SPECIALTY RETAIL
* Laura Ashley Holdings PLC engaged IMG to exclusively license the home furnishing retailer in mainland China, Hong Kong and Taiwan, in a move to expand its portfolio of licensed products in the region, Retail Gazette reported.
* Sports Direct International PLC's founder and CEO, Mike Ashley, was reelected to the board of the company despite the recommendation of shareholder advisory groups, including Pensions & Investment Research Consultants, to vote against his reelection.
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Britain's fashion industry braces for disruptive Brexit
The day ahead
Early morning futures indicators pointed to a higher opening for the U.S. market.
In Asia, the Hang Seng dropped 0.26% to 27,087.63, and the Nikkei 225 rose 0.75% to 21,759.61.
In Europe, around midday, the FTSE 100 was up 0.02% to 7,339.28, and the Euronext 100 climbed 0.13% to 1,087.33.
On the macro front
The consumer price index, the jobless claims report, EIA natural gas report, the treasury budget report, the Fed balance sheet and the money supply report are due out today.
Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.
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