Mergers & Acquisitions

Weak sales made for a rough second quarter for Office Depot.   The retailer said its profit fell to $24 million, or 5 cents a share, short of Wall Street expectations, compared with $210 million, or 38 cents a share, in the year-ago period. (The 2016 quarter included a $250 million fee paid by Staples to Office Depot after Staples abandoned its intent to acquire its rival.)  

Ralph Lauren starts its new fiscal year in much the same way as it ended the last one: with sales lines splashed with red ink to indicate the severe declines across most divisions of the company. Some of this would be excusable if the iconic brand were at the start of a journey of reinvention, but this comes after multiple attempts to get the firm back on track - most of which have proved to be fruitless.  

Sprouts Farmers Market doesn't plan on backing out of its partnership with Amazon any time soon.   Despite Amazon’s recent announcement to purchase of Whole Foods Market, Sprouts Farmers Market plans to continue its role as an Amazon Prime Now delivery partner. More so, the grocer expects the program to extend to more than half of its store network, according to Food Navigator-USA.   

Retail has reached a tipping point. Omnichannel shopping is no longer the “new thing” — it is THE THING. Demographics and technology have permanently altered consumer behavior, and retailers have felt the impact in an unprecedented manner.   In today’s environment, proactive management of the store portfolio is not an option—companies must actively pursue a forward-looking, dynamic, and data-centric approach to design the optimal store portfolio to ensure ongoing viability.  

Alibaba Group Holding is expanding its online travel footprint.  

Rapha, the upmarket and trendy British bikewear brand, has been sold to two grandsons of Sam Walton, founder of Wal-Mart Stores.    Rapha, founded by branding consultant and lifelong cyclist Simon Mottram in 2004, has been sold to RZC Investments, a private equity firm run by Steuart and Tom Walton, who are reported to be committed mountain bikers. The firm also has an investment in bike maker Allied Cycle Works, based in Little Rock, Ark.   

One of the nation's leading supermarket executives has tapped a retail and digital veteran to join its team.    Albertsons Companies appointed Kevin Turner, former COO at Microsoft, as vice chairman of the board of managers of AB Acquisition, its direct parent. Turned has also been named senior advisor to Albertsons chairman and CEO, Bob Miller.  

Gap's local franchisee in Australia is ending its four-year relationship with the specialty retailer.

The financially struggling OrotonGroup is expected to close its six Gap stores by the end of January as it looks to focus on its core Oroton handbag business and limit related future losses.  In June, Oroton, which operates 70 stores and is best known for its luxury handbags, announced it was exploring options, which could include a sale of its business.