Corporate Governance

Walgreens Boots Alliance has announced a new Rite Aid deal, effectively ending its nearly two-year quest to acquire the Camp Hill, Pa.-based drug store chain. The divestiture agreement with Fred's Pharmacy, whereby Fred's would buy 865 stores, is also terminated.  

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 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.      

Affluence is out. So are the days of the mass market.    A new report projects 10 years out and reveals three fundamental principles that are shaping tomorrow's consumer packaged goods and retail industries: trust, influence and personalization. In a preview of its 2017 Global Future Consumer study, A.T. Kearney predicts the death of the scale economy that focuses on catering to affluence in favor of one driven by the influence of industry stakeholders, particularly by the hyper-connectivity of the younger generations.

Lamps Plus is making it easier for Canadian shoppers to make a purchase.   The specialty lamps retailer debuted lampsplus.ca, an e-commerce website designed to provide a localized experience in Canada. Canadian shoppers have been purchasing from Lamps Plus ever since the retailer debuted online in 1998. However, the new site specifically targets the Canadian market with prices displayed in CAD dollars.   

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.    

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.  

While Amazon expands its physical presence, Walmart Canada is taking its own swipe at the online giant — by moving in on its turf.