Retail round up - The Sunday Papers

Sunday Telegraph

Tesco has halted the rollout of Fresh & Easy, its chain of US convenience stores, while it reviews the performance of the fledgling business. The move will spark renewed speculation about the performance of Britain's biggest retailer in the world's largest consumer spending market. Tesco is understood to have called a three-month halt to the expansion of Fresh & Easy last week after opening almost 60 stores since last autumn. Amid claims that Fresh & Easy has missed internal sales targets, analysts have questioned whether US consumers have been left unimpressed by the format, which Sir Terry Leahy, Tesco's chief executive, has pledged will make significant inroads into the US. Tesco, which insists that the start-up is on track, has earmarked more than £250m for investment in Fresh & Easy. Leahy has staked his £10m-plus long-term bonus on the success of the venture, arguing that Fresh & Easy could eventually be as big as the core UK business. But having opened 59 stores in just four months Tesco has halted the rollout of new stores in order to "make improvements and allow the business to settle down".

Woolworths will reduce its final dividend next week as it reveals the true cost of its recent refinancing. Despite the group's retailing business returning to profit, chief executive Trevor Bish-Jones is expected to slash the final dividend by as much as 50 per cent when he delivers Woolworths' full-year results on Wednesday. Bish-Jones will be forced to reveal that the interest rates Woolworths is paying have soared to as much as £30m a year as a result of the onerous conditions agreed when the group was refinanced in January.

Soaring commodity costs and falling sales of its premium lager have forced Inbev, the Belgian brewing giant, to axe up to 250 jobs at two Stella Artois breweries in Lancashire and Wales. Up to 166 workers in Samlesbury, Lancashire, and 80 in Magor, south Wales, face redundancy after an operational review by Inbev. A consultation process with affected employees has started. Unions and workers' representatives have vowed to fight the move, which the GMB union described as "shocking".

The Observer

All Bar One and O'Neill's pubs operator Mitchells & Butlers could sell a stake in the company to private equity firms to bolster its balance sheet and allow it to go on the front foot by seeking acquisitions. Until now, Mitchells & Butlers has been seen as prey rather than predator following an offer from Punch Taverns to buy the business in January. That fell through on Friday after Punch said the deal was no longer in the interests of its shareholders.

Financial Times Sat/Sun

Robert Tchenguiz, the property entrepreneur facing heavy losses on stakes in retailer J Sainsbury and pub group Mitchells & Butlers, delivered a sharp attack on Friday on the boards of the two companies, accusing them of failing to maximise shareholder value from their property assets. But Mr Tchenguiz said he had no intention of cutting his losses and pledged to maintain his stakes for the long-term. Mr Tchenguiz said in spite of the record profits at Sainsbury, he was disappointed that the market did not value the retailer “in the correct fashion”.

The high street is suffering a trading downturn far worse than has been revealed by quoted retailers, according to Sir Philip Green and Phil Wrigley, two of the country's biggest fashion entrepreneurs. Sir Philip, owner of Arcadia, which comprises of private clothing chains from Top Shop to Burton, said: "We are somewhat blind to the textile clothing sector, given the lack of public companies." Mr Wrigley, chief executive of private equity-owned New Look, said trading had been disappointing for weeks, not helped by the cold weather that has deterred shoppers from buying summer clothing. "It genuinely is quite hard to know how much of it is consumer weakness, but anyone who doesn't believe there is significant consumer weakness is on the wrong planet," he said.Both executives said sales at their groups had been affected as consumers tightened their belts in recent weeks, but both claimed to be outperforming many of their peers in the sector. Sir Philip called for "meaningful" interest rate cuts from the Bank of England to engender "a sentiment shift" from consumers.

The Independent on Sunday

Marks & Spencer could face the ignominy of a "red top" warning from the Association of British Insurers if it fails to provide a full explanation for the elevation of Sir Stuart Rose to executive chairman. F&C has become the latest investor to go public with its disquiet at Sir Stuart's promotion. Best corporate governance practice says companies should separate the roles of chairman and chief executive. The ABI has already said it plans to put the retailer on "amber alert". However, it is understood that a continued failure to provide a proper explanation for the move could place M&S in the "red" category, reserved for the most serious corporate governance breaches.

The Mail on Sunday

Tesco is turning the screw on music companies by trying to slash the amount it pays them for CDs sold in their stores. The move could cut £3 off the price the supermarket currently pays the record industry for CDs - but it's unclear whether any of this will be passed on to the public in lower prices. One source said that it was looking to keep up to third of the retail price it charges for CDs.

Sainsbury's will tomorrow introduce larger and smaller sizes in its Tu fashion range. The Grace brand will be added to 50 stores and include sizes up to 28, while the Petites label aimed at women under 5ft 3in, will be sold in 25 stores.