Sandwich Shop Could Increase Swaps Use
U.K. sandwich chain Pret A Manger may increase its use of foreign exchange swaps to hedge currency exposure as the company opens more stores around the globe and more of its revenues are non-sterling. John Clarck, finance director in London, said the company has opened a handful of take-out stores in New York and Hong Kong recently and "we probably will use a bit more [fx swaps] in the future because we are developing overseas."
Pret has used fx swaps in the past but as a small company has not taken out other instruments such as interest-rate swaps. Clarck declined further comment, saying it was too early to talk in detail.
Pret has more than 100 stories in the U.K. and four in the U.S.