30 November 2017 by lberuti
Retailers have been battered for months. Investors have grown pessimistic on the sector after Amazon.com Inc pushed into that fiercely competitive industry when it acquired Whole Food Market Inc this summer. But it looks as if retailers are trying to put their act together. Earlier in the week, COFP ( Casino Guichard Perrachon SA ) announced a partnership with UK online grocery specialist Ocado, in an effort to accelerate their foray in the e-commerce area. The venture will include the construction of a state of the art automated warehouse near Paris, and will aim at leveraging Ocado’s expertise in delivery and real-time client data management. The companies want to compete with Amazon’s Prime Now solution with a view to deliver food as quickly as possible to their clients’ door steps. The initiative was rewarded with a 11bps tightening COFP’s 5-year risk premium – which was no mean feat given its recent upward trajectory -, but the main beneficiary was RALFP ( Rallye SA ). It is effectively a leveraged play on COFP, and it saw its 5-year risk premium tightened 80bps to 639bps.