Finance & Capital Management

Alimentation Couche-Tard has closed on the biggest transaction in its history.    The Canadian company announced that it has completed its $4.4 billion acquisition of CST Brands. The deal will add approximately 1,300 stores to the Couche-Tard portfolio, including 666 locations in Texas.   

Pier I Imports reduced its loss in the first quarter amid a boost in its gross margin and other operational improvements.   Pier 1 reported its first-quarter loss narrowed to $3 million, or 4 cents a share, from $6 million, or 7 cents a share, a year earlier. Its results beat expectations.   

Sycamore Partners has a plan for its newest retail acquisition, Staples.   The private equity firm, which purchased the office supply giant for $6.9 billion on Wednesday, plans to divide the chain into three separately financed units: U.S. retail; Canadian retail; and corporate-supply businesses, reported The Wall Street Journal reported. The three units will all remain under the same corporate umbrella.  

The drug store industry awoke Thursday morning to arguably the biggest story of the year — the news that Walgreens and Rite Aid had agreed to scrap their original merger agreement one more time, this time in favor of a much smaller, seemingly more manageable deal to purchase 2,186 Rite Aid stores for $5.18 billion in cash.    In the first several hours following the announcement of the deal, Chain Store Age sister publication, Drug Store News identified five important takeaways from the blockbuster agreement. 

Proposed cuts in food stamp benefits could cost the the retail industry billions — with supermarkets and discounters taking the biggest hit.    AlixPartners estimates that retail collectively stands to lose $70.7 billion during the next 10 years if the proposed cuts in the Supplemental Nutrition Assistance Program (commonly referred to as food stamps) turn into reality, CNBC reported. The budget proposed by the Trump administration calls for $191 billion in cuts to the program between 2018 to 2028.  

Its Macy’s and J.C. Penney’s continue to do business. In-line stores close, but new tenants quickly assume their spaces. Shoppers continue to arrive from as far as 75 miles away.   The Empire Mall in Sioux Falls isn’t exactly bucking trends. It’s merely an example of a core precept of retail which states that malls will survive where jobs and rooftops are rising, according to a report in the local Argus Leader.   

Fred’s Pharmacy is taking action to protect itself as the deadline for the Federal Trade Commission’s decision on Walgreens Boot Alliance’s proposed acquisition of Rite Aid merger draws closer.  

QuikTrip Corp. is expanding into two new markets.   The convenience-store chain plans to open a total of 100 stores in the San Antonio and Austin (Texas) areas. Construction is expected to begin this winter, with the first locations scheduled to open in the summer of 2018.   The expansion marks QuikTrip's first new market entry in six years. In 2011, the company launched its Carolinas division, adding 75 stores in Charlotte, North Carolina and Greenville, South Carolina.   

An accounting change could give a big boost to retailers' earnings.   The new Financial Accounting Standards Board, or FASB, revenue-recognition rule (ASC 606) goes into effect for public companies in 2018. One of the major implications of the new rule involves how the unredeemed dollar portion of company-issued gift cards, called breakage revenue, is recognized, according to a report by MarketWatch. The change will impact everyone who issues gift cards, including both online and offline retailers.    

The nation's largest office supply retailer is returning to private ownership.   Private equity firm Sycamore Partners has acquired Staples for $10.25 per share for cash. The deal is valued at about $6.9 billion.