Finance & Capital Management

The nation's retailers lost a staggering amount of money in 2016 due to shoplifting, organized crime, internal theft and other types of inventory shrink.    Inventory shrink totaled $48.9 billion in 2016, up from $45.2 billion the year before, as budget constraints left retail security budgets flat or declining, according to the annual National Retail Security Survey by the National Retail Federation and the University of Florida. The thefts amounted to 1.44% of sales, up from 1.38%.  

Amazon may face a contender for Whole Foods Market.   JP Morgan research analysts said in a note that Walmart could step in as a rival bidder for the grocery chain, reported CNBC, attracted by Whole Foods' more affluent customer base and strong brand.   

Staples is close to returning to private ownership.   Private equity firm Sycamore Partners is in advanced talks to acquire Staples, according to numerous media reports. The deal could top $6 billion, reported Reuters, which said Sycamore is in the process of finalizing a debt financing deal with Staples. Sycamore repeatedly beat out Cerberus Capital Management in an auction.  

Walmart is asking its technology suppliers to pick sides in its retailing war with Amazon.   The retailing giant reportedly warned some tech companies that if they want its business, they can't run applications on Amazon’s cloud platform, Amazon Web Services. Walmart currently partners with tech suppliers that already leverage cloud apps running on AWS, although the retailer didn’t reveal which applications or how many they use, sources told the Wall Street Journal.  

The first enclosed mall on Massachusetts South Shore will undergo a $40 million conversion to an open-air center under the ownership of a spun-off unit of Phillips Edison & Company.   The 732,000-sq.-ft. Hanover Mall in Pembroke Massachusetts — anchored by Macy’s, Sears, and Walmart — was purchased last fall by PECO Real Estate Partners, which operates under the name PREP. Built in 1971 and last renovated in 2004, the center has direct access to Route 3, the major thoroughfare joining towns south of Boston.

Sears Canada could file for Chapter 11 sooner than expected.   The struggling offshoot of Sears Holdings Corp., is preparing to seek court protection against its creditors. The filing — which could happen within weeks — will likely lead to a liquidation, with the business sold off in pieces, sources told Bloomberg.  

As a number of traditional chains across the industry continue to struggle, TJX Cos. is being called one of the country’s fastest growing retailers.   Traditional retailers industry-wide are blaming shifting consumer tastes, digital options and new competitors for not only stealing their wallet share, but for declining foot traffic and related sales. However, this could not be farther from the truth for TJX Cos.  

J. Crew just bought itself some more time with its lenders.   Lenders holding approximately 88% of the outstanding principal amount of loans under J. Crew’s term loan agreement have approved a term amendment. The amendment, initially proposed in mid-June, was offering to exchange its $566.6 million of outstanding pay-in-kind notes due 2019. The notes were issued by Chinos Intermediate Holdings, an indirect parent to J.Crew.  

The Fresh Market's chief executive has resigned after less than two years on the job.    The Fresh Market announced that Rick Anicetti has resigned as CEO and board member. No reason was given for his departure. Anicetti took the reins of the specialty grocer in September 2015, bringing more than 30 years of experience across a variety of retail functions at Hannaford Brothers Company and Food Lion, where he served as president and CEO.   

There have been a couple of changes in the C-suite at Things Remembered.