Finance & Capital Management

Following in the footsteps of Warby Parker, Bonobos and the like, another online startup is ready to plant some brick-and-mortar roots.   Brooklyn, New York-based sneaker brand Greats plans to open at least 10 locations over the next two years, according to The New York Business Journal.  

The battle for Walgreens to acquire Rite Aid may be entering its final stage.     Walgreens is expected to certify compliance within days, giving the Federal Trade Commission 90 days to either clear the $9.7 billion deal or sue to block it, reported the New York Post. The newspaper added the certified compliance period would expire roughly the same day as the Walgreens-Rite Aid merger agreement terminates on July 31. The proposed transaction was first announced in October 2015.  

Food Lion has announced a $110 million investment in its stores as part of its ongoing remodeling initiative.      The chain announced it will remodel 71 stores in the greater Richmond, Va., market in 2017. Looking to make shopping easier and more affordable for its customers, the grocer said it will make a $110 million investment that includes remodeling the Richmond-area stores, additional price investments throughout the year and investments in associates and the community through its hunger relief initiative. 

Who is responsible for fees related to unexpected, yet low shipping volume? According to UPS, it should be its retailer partners.   The delivery service is putting retailers on the hook to share costs related to labor and surplus space on trucks if the merchant fails to ship its forecasted packages during peak periods, according to MarketWatch. Fees could also apply if there is a discrepancy among the sizes of boxes expected to ship,   

Albertsons’ Jewel-Osco division has a new executive at the helm.     The company has named Doug Cygan division president, effective immediately, overseeing 186 stores in Ill., Ind. and Iowa. Cygan was most recently Jewel-Osco’s VP marketing and merchandising. He joined the company in April 1980 as a part-time clerk, staying with the chain as he completed his education and worked his way up through the ranks.  He became VP marketing and merchandising in 2011.   

Is Party City exploring a return to private ownership?   The retailer is considering a sale after being approached by a private equity firm about a leveraged buyout, Reuters reported. Buyout firm Thomas H. Lee Partners LP, which owns 55% of Party City, took the company public in 2015.     

Although Amazon's sales advanced by a respectable 23% over the quarter (do link to our story yesterday), the pace of growth at the online behemoth remains much slower than it was over most of the prior fiscal year. Some of this is the result of a less favorable exchange rate diluting contributions from the international business. However, some is also down to a more challenging demand environment in North America which has limited spending uplifts on products within Amazon's core territory.  

After growing its store base through an acquisition last year, Weis Markets is investing $90 million in its growth in 2017.    The budget includes new stores and remodels of existing locations. It also calls for supply chain improvements and continued information technology upgrades.    

Dollar General Corp. has added to its portfolio through an acquisition.    The Federal Trade Commission has approved the sale of 323 Dollar Express stores by Sycamore Partners to Dollar General, reported Reuters. The Dollar Express chain is made up of former Family Dollar stores that Family Dollar sold to Sycamore Partners in late 2015. Sycamore Partners bought the stores in 2015 when Dollar Tree sold the stores in order to win antitrust approval to buy the Family Dollar chain.   

Starbucks Corp. met profit expectations for its second quarter even as its sales disappointed.     The retailer’s net earnings increased 13.5%, to $652.8 million, or 45 cents a share, in line with expectations. Revenue totaled $5.28 billion, less than expected.   Same-store sales rose 3%, also below forecasts, as average tickets rose 4%. Customer transactions were down 2%, which the company attributed to a change in its rewards program.