Consumer Affairs & Relations

New York -- Analysts had already suggested that Wal-Mart Stores Inc. would report weakened sales in February, as its primary customer base felt the pinch of newly increased payroll taxes. But internal emails leaked to the press confirmed the impending bad news.
 
Bloomberg on Friday quoted an email generated by a Wal-Mart mid-level executive as saying that the retailer had the worst sales start to any month in seven years in February. Wal-Mart blames the slow start to the 2% payroll increase as well as on delayed tax returns.

NEW YORK — Jewelry maker Tiffany & Co. is suing Costco Wholesale, alleging that the club retailer falsely marketed diamond engagement rings as coming from the New York-based jeweler, according to published reports.

News media reported that Tiffany filed suit against Issaquah, Wash.-based Costco in the Federal District Court in Manhattan.

New York -- A Friday report by Bloomberg said that Office Depot is considering selling the remaining 50% of its Mexican unit to Grupo Gigante SAB, which currently owns the other half.

Citing unnamed sources, Bloomberg reported that Grupo Gigante is in talks with local banks to fund the acquisition of Office Depot de Mexico.
 

ARLINGTON, Va. — The Consumer Electronics Association has issued praise for the U.S. Congress for introducing legislation to establish sales tax fairness.

New York -- Richard Schulze, founder of Best Buy Co., may abandon a buyout bid and instead line up investors to take a minority position in the electronics retailer, Reuters reported.
 
Schulze informed the Best Buy board in August that he was interested in partnering with private equity partners to buy the struggling consumer electronics company. But he has been unable to get enough support from banks to finance a deal that would allow him to take it private, the report said.

In the food industry’s largest ever acquisition, the H.J. Heinz Company has agreed to be acquired by an investment consortium of Berkshire Hathaway and 3G Capital.

Heinz shareholders will receive $72.50 a share in cash, a 20% premium to the prior day’s closing price of $60.48, which was at an all time high.

Irving, Texas -- Michaels Stores has named Chuck Rubin as CEO and a member of the board of directors. Rubin is currently the president and CEO of Ulta Beauty.

Rubin will assume his new roles after a brief period of transition, at which time Michaels will discontinue the “Office of the Chief Executive Officer,” established on an interim basis in May 2012. Charles "Chuck" Sonsteby, a member of the Office of the CEO, will continue as Michaels’ CFO and chief administrative officer.