Friday, October 30, 2015

O’Reilly Automotive driving record growth

O’Reilly Automotive plans to accelerate its expansion plans in 2016 following record revenue and profit in the third quarter.

The auto parts retailer now plans to open 210 new stores next year. The company is also on track to open 205 new stores by the end of 2015.. . . more

Walmart, Michael's vet takes top spot at women's apparel chain

It's changing of the guard time at Chico's FAS.

After what it called an extensive search, the retailer named industry veteran Shelley Broader as president and CEO, effective Dec. 1. She succeeds David F. Dyer, who will become vice chair of the Chico's board.. . . more

Cabela’s surges after shareholder proposes changes, possible sale

gw_bass_001Shares of Cabela’s rose 18% Wednesday after Elliott Associates, the hedge fund with an 11% stake in the hunting gear retailer, called for changes, including a possible sale.

Elliott said that Cabela’s shares are “significant undervalued,” and other private equity firms might be interested in Cabela’s assets. In a filing with the Securities and Exchange Commission, Elliott said it believes “that, in light of the robust environment for private equity investment in retail companies, potential strategic interest in (Cabela’s), and (Cabela’s) substantial asset holdings, there exist multiple pathways for (Cabela’s) to unlock significant unrealized value.”. . . more

Consumer spending records weakest gain in 8 month

Consumer spending in September posted the smallest gain in eight months, a sign that shoppers grew cautious at the end of the third quarter.

The Commerce Department said Friday spending rose 0.1%, the weakest showing since spending fell in January. Income growth inched up 0.1%, which was the smallest amount in four months. Wages and salaries were flat following two months of big gains.. . . more

Consumers unlikely to see big savings from Walgreens’ acquisition of Rite Aid

Walgreens will use its $9.41 billion takeover of rival Rite Aid to spread its philosophy on making drugstores destinations for customers looking to stay healthy or buy beauty products.

The nation’s largest drugstore chain also is expected to flex its beefed-up negotiating muscle to wring better deals from drugmakers and other suppliers. But experts say those discounts won’t automatically trickle down to consumers.. . . more

CVS Health announces results of solid Q3

For the third quarter ended Sept. 30, CVS Health reported $38.6 billion in net revenues, representing an increase of 10.3%. Revenues across the Pharmacy Services Segment increased 13.3% to $25.5 billion, primarily driven by growth in specialty pharmacy and pharmacy network claims.

“We delivered solid revenue and operating profit growth across our businesses, and we continue to expect significant growth in the fourth quarter, rounding out another terrific year for our company,” Larry Merlo, CVS Health president and CEO, said.. . . more

For Walmart, Target stores, holidays start Nov. 1

The holiday sales season kicks off this weekend, and Walmart will be among the first out of the gate.

Walmart is putting more emphasis on online deals during the holiday season, with about 15% more rollbacks on compared with last year. Meanwhile the number of rollbacks in stores will be about the same.. . . more

Wednesday, October 28, 2015

Is High Street Retail The Next Big Thing for Foreign Investors?

Investors are beginning to awaken to the idea that there might be another form of gateway asset that offers many of the same benefits of trophy hotels or office buildings, as well as some peculiar advantages. That asset type is high street retail. Like a hotel, a prominent piece of high end retail is easy to explain at home due to the fame of addresses (Fifth Avenue, Madison Avenue and Soho are de facto global brands) and tenants (Gucci, Valentino, Zara and H&M are actual global brands). The large deal sizes of high street retail acquisitions garner publicity in the market in which high street retail is purchased. Furthermore, the exit market for these assets is very liquid and the depth of tenant demand creates stability. In addition to these similarities to trophy hotels, high street retail offers an advantageous distinction: simplicity.. . . more

Wal-Mart seeks to test drones for home delivery, pickup

A 'Phantom 2' drone by DJI company flies during the 4th Intergalactic Meeting of Phantom's Pilots ) in an open secure area in the Bois de Boulogne...Wal-Mart Stores Inc applied Monday to U.S. regulators for permission to test drones for home delivery, curbside pickup and checking warehouse inventories, a sign it plans to go head-to-head with Amazon in using drones to fill and deliver online orders.

The world's largest retailer by revenue has for several months been conducting indoor tests of small unmanned aircraft systems – the term regulators use for drones - and is now seeking for the first time to test the machines outdoors.. . . more

FTC seeks remedy for Staples-Office Depot deal

FTC seeks remedy for Staples-Office Depot dealThe odds of Staples gaining regulatory clearance for its $6.3 billion purchase of rival Office Depot have improved greatly, according to a confidential report on Monday.

The Federal Trade Commission met last Friday with a large corporate customer of Staples to discuss an antitrust remedy to get the deal done, according to the report issued by Bank of America.. . . more

Store pickup is in, Black Friday is out this holiday season

A new holiday shopping survey reveals major disruptions in holiday shopping traditions, largely due to digital engagement.

Deloitte’s 30th annual holiday survey of consumer spending intentions and trends finds that some shopping traditions are losing their luster.. . . more

No sales, no crowds, no Black Friday at REI

REI has shocked the retail industry — and shoppers — with its decision to lock its doors on one of the biggest and most profitable shopping days of the year.

The retailer says it will be closed not only on Thanksgiving Day but also on Black Friday. This includes the company's website, which CEO Jerry Stritzke says will be "unavailable" on Black Friday. He did not say whether the website would be available on Thanksgiving Day.. . . more

Walgreens Boots Alliance to acquire Rite Aid

Walgreens Boots Alliance is in advanced talks to acquire Rite Aid in a deal that could be worth as much as $10 billion, according to a report published Tuesday by The Wall Street Journal.

The deal would bring together the No. 1 and No. 3 retail pharmacy operations under one roof, creating a pureplay pharmacy operator with more than 12,786 stores and more than $67.1 billion in pharmacy revenue, according to figures from Drug Store News’ Annual PoweRx Industry Rankings.. . . more

Kohl’s plans new stores, formats

Kohl’s is in growth mode when it comes to the retailer’s store base.

Next year, Kohl’s plans to open five to 10 new stores in a smaller 35,000-sq.-ft. prototype, aimed at underserved areas. Kohl’s also plans to open 10 to 15 stores dedicated to its proprietary Fila brand in outlet malls across the country. Additionally, the retailer will open two more Off-Aisle by Kohl’s off-price locations in 2016.. . . more

Monday, October 26, 2015

Web-Shopping Deluge Boxes In Landlords

Image result for fedex delivery truck at christmasThe biggest landlords in the U.S. are being crushed under a mountain of packages, leading one large apartment operator to stop accepting deliveries and others to experiment with ways to minimize the clutter.

The moves are at the center of two colliding trends: an increase in apartment living and a surge in online shopping. The result is a rising tide of packages with no good place to go.. . . more

A retail holiday hiring scorecard

Before retailers compete for holiday sales they are competing for seasonal talent that will have a big impact on their performance.

Between 700,000 and 750,000 new seasonal positions will be filled this holiday season as retailer bolster their ranks to deal with the surge of activity online and in-stores, according to the National Retail Federation. The number of seasonal hires this year is among the highest level seen at any time in the past 15 years, according to NRF data.. . . more

FedEx sees record holiday shipments on rising retail, ecommerce

Image result for fedex delivery truck at christmasOct 26 Package delivery company FedEx Corp said on Monday that it expects to see a record number of shipments during this year's busy holiday season, driven by rising retail sales and a jump in ecommerce.

The Memphis-based company said it expects to handle 317 million shipments between Black Friday, traditionally the busiest U.S. shopping day of the year, and Christmas Eve, an increase of 12.4 percent over the previous year.. . . more

Lord & Taylor off-price spinoff to debut in Paramus

Image result for Find @ Lord & Taylor paramus nj Hudson’s Bay Company is launching an off-price spin-off of the Lord & Taylor department store, and it has picked Paramus for the first location of the new concept, called Find @ Lord & Taylor.

The Paramus store will be located at 180 Route 4 East, in the 35,000 square foot former Loehmann’s space. The store is scheduled to open Nov. 19.. . . more

Bridgestone Will Buy Pep Boys Retail Chain for $835 Million

Bridgestone Corp. agreed to buy the Pep Boys retail chain for about $835 million, pushing deeper into an auto-parts industry that has benefited from Americans keeping their cars on the road longer.

The deal unites the U.S. subsidiary of Bridgestone, the Japanese tire giant, with Pep Boys’ more than 800 auto-parts and maintenance shops. Bridgestone already operates more than 2,200 tire and automotive centers across the U.S., and the merger will create the world’s largest chain of its kind, according to the statement.. . . more

Friday, October 23, 2015

$359m sale may speed Seaport’s completion

Preliminary plans for buildings on the sites WS Development acquired are highlighted in the Seaport Square master plan.The last big chunk of open land in the Seaport is being sold in a $359 million deal that is likely to accelerate completion of the bustling new district.

WS Development of Chestnut Hill is buying the remaining 12.5 acres of the tract, known as Seaport Square, with an eye toward building offices, housing, and shops where a dwindling number of parking lots now sit.. . . more

Cabela’s pulling back on store expansion

Cabela’s smaller stores are not as productive as the company would like, so the outdoor retailer is putting the brakes on new store growth while it focuses on productivity.

In conjunction with the release of disappointing third quarter results and a reduced full year profit forecast, Cabela’s said it was evaluating its store expansion schedule and currently expects to open seven stores next year and no more than that in 2017.. . . more

New York City’s off-price leader to open tenth location

Century 21 Department Store will bring its high-fashions and low prices to a new location in the suburbs.

The company will open an approximately 70,000-sq.-ft., two-level store at Green Acres Mall in Valley Stream, New York, on the South Shore of Long Island. The location will be the company’s tenth location.. . . more

Why your favorite retailer didn't come back from bankruptcy

Image result for retail bankruptcies It's never good when a company has to resort to bankruptcy as a last-ditch effort for profitability. But for players in the retail industry, things are even more dire.

According to a new study by AlixPartners advisory firm, 55 percent of all U.S. retailers that have filed for bankruptcy over the past 10 years have ended up in liquidation. By comparison, less than 5 percent of nonretail filings over that period have had the same result.. . . more

Jos. A. Bank Swears This Is the Last ‘Buy 1, Get 3’ Sale Ever

Image result for jos a bankOn Thursday, men’s apparel specialist Jos. A. Bank launched what it is calling the “Last Time Ever” for its infamous “Buy 1 Get 3 Free” sales. The current sale stretches through Sunday and includes a separate “buy 1 get 2 free” deal on dress shirts, pants, and sweaters, plus 70% discounts on outerwear, as well as the big “buy 1 get 3 free” promotion on (almost all) suits and blazers.

The deals sound almost too good to be genuine—and therein lies some of the problem.. . . more