News Briefs

Subway has completed its blockbuster sale to Roark.

The deal was first announced in August 2023, with the nearly 60-year-old quick-serve sandwich chain entering into a definitive agreement to be acquired by affiliates of Roark Capital. The Atlanta-based private equity firm owns numerous fast-casual franchise chains through two holding companies.  

Privately-held Subway did not release financial details of the transaction, but The Wall Street Journal at the time reported the final bid from Roark was roughly $9.6 billion, making is one of the biggest deals in the fast-food industry since Roark’s Inspire Brands acquired Dunkin’ Brands for $11.3 billion in 2020.

The acquisition comes on the heels of Subway’s three years of sales growth and positive global net restaurant growth for the first time since 2016. Looking ahead, there are no anticipated changes to Subway’s leadership team, strategic focus or operating plans. The company said it will continue its focus on ongoing culinary and digital innovation, modernization of restaurants.

“The entire Subway system is excited that our sale to Roark is complete,” said John Chidsey, CEO of Subway. “As we look to our future, our growth journey is far from over. With a continued strategic focus on delivering better food and a better guest experience, our next chapter will be the most exciting yet.”

One of the world's largest quick-service restaurant brands, Subway has nearly 37,000 restaurants across more than 100 countries.

Walmart is adding more heft to its already considerable grocery presence.

The retail giant has unveiled Bettergoods, a line of on-trend, chef-inspired foods featuring "trend-forward" ingredients and flavors. With 300 items spanning frozen, dairy, snacks, beverages, pasta, soups, coffee, chocolate and more, Walmart described the new line as its largest private brand food launch in 20 years. 

Walmart is the nation’s largest grocer by revenue. It reported grocery sales of $264 billion for its most recently completed fiscal year.

Bettergoods items range from under $2 to under $15, with most products available for under $5. The products were curated by Walmart’s product development team that collaborated with suppliers across the globe to source quality, the retailer said.

The products fall in three distinct catories: culinary experiences, plant-based and made-without (includes items that cater to different dietary lifestyles, such as gluten free, or made without artificial flavors, colorings or added sugars.)

Walmart is also facing growing competition from Target on grocery private brands. In February, Target launched a low-priced private brand called Dealworthy that includes 400 everyday basics such as paper towels, paper plates, body wash, charging cables and cotton balls. Some of the items under that line cost less than $1 and most are under $10.

“Today’s customers expect more from the private brands they purchase – they want affordable, quality products to elevate their overall food experience," said Scott Morris, senior VP, private brands, food and consumables, Walmart. "The launch of bettergoods delivers on that customer need in a meaningful way. Bettergoods is more than just a new private brand. It’s a commitment to our customers that they can enjoy unique culinary flavors at the incredible value Walmart delivers.”

Walmart is launching the new brand amid growing competition from Target on low-priced private   brands. In February, Target unveiled a new low-priced brand, Dealworthy,  that includes 400 "everyday" basics across apparel and accessories, essentials and beauty, electronics, and home items. Prices start at less than $1, with most items under $10.

BJ's Wholesale Club continues its national expansion.

The membership warehouse club retailer announced three new club lcoations, with plans to open in Staten Island, New York; Brooksville, Fla.; and St. Johns, Fla. The Staten Island club will mark BJ's 49th location in New York, while  Brooksville and St. Johns will mark its 40th and 41st locations in the Sunshine State.

Earlier this year, BJ’s announced six new clubs opening across the Southeast and Midwest, as well as expansion into its 21^st state, Kentucky, with an opening in Louisville in early 2025.

“Our real estate pipeline is the strongest it’s been in more than 20 years, and we look forward to helping more families save up to 25 percent off grocery story prices every daym,”  said Bill Werner, executive VP, strategy and development, BJ’s Wholesale Club.

On the company’s fourth-quarter earnings call in March, BJ’s chairman and CEO Bob Eddy said the company is planning to open 12 new locations in fiscal year 2024, and 15 new gas stations. 

Each new BJ’s location is expected to create approximately 150 jobs for its respective community. Clubs feature an assortment of fresh foods, produce, full-service deli offerings, bakery goods, grocery staples and household essentials, in addition to home décor items, toys, tech products and pet supplies.

Headquartered in Marlborough, Mass., the retailer operates 244 clubs and 175 BJ's Gas locations in 20 states.

Follett Higher Education Group has tapped a technology and infrastructure expert to join its c-suite.

Mani Suri joined North America’s largest campus retailer as its new chief information officer on April 22, and will serve as the senior leader responsible for the coordination of information technology functions.

Suri has more than 25 years of experience in IT. Prior to joining Follett, he served as chief information officer at Ulta Beauty, where he helped modernize in-store and digital experiences for customers. Previously, Suri was chief information officer for 7-Eleven and modernized the company's global retail platform. 

Suri also held leadership positions at global commercial real estate firm CBRE, multinational information conglomerate Thompson Reuters, and spent 17 years as a software engineer at Capital One where he played a key role in the development of Capital One's Innovation Lab.

“In a world of rapidly-changing technology, Mani has a demonstrated track record of solving complex challenges, leading strong teams, and generating value for customers," said Emmanuel Kolady, CEO of Follett Higher Education, who recently spoke with Chain Store Age about the retailer’s frictionless shopping rollout. "As CIO, Mani will implement technological solutions throughout the organization, elevating the customer experience for the 6+ million students Follett serves."

Follett Higher Education supports over 6 million students through its 1,000+ physical and online collegiate retail stores across North America.

North America’s largest shopping mall has announced a trendy new tenant.

Digitally-native apparel brand Edikted will soon open at Mall of America, marking its third location in the United States and first in Minnesota. Edikted launched in 2021 and has since grown its presence on social media, gaining popularity on TikTok and becoming a favorite of Gen Z consumers. 

Edikted has gone viral after celebrities and influencers such as Hailey Bieber, Olivia Rodrigo, and Addison Rae were spotted wearing the brand. Edikted offers a variety of closet staples, including statement pieces, swimwear, and accessories.

“Edikted has created a strong community of fashion enthusiasts and trend seekers online, and we’re excited to unite this fanbase in-person for the opening of the brand’s first Minnesota location,” said Carrie Charleston, VP of leasing at Mall of America. “This viral digitally native brand is in tune with their audience and what is trending in the fashion world, and their fun retail space will be just as social media worthy as their clothing.”

The new Edikted store will further grow Mall of America’s fashion offerings. Last month, the mall hosted a limited-time sample sale from Rent the Runway. 

At 5.6 million square feet, Mall of America, located in Bloomington, Minn., is the largest shopping and entertainment complex in North America with up to 520 world-class retail stores and restaurants, and several entertainment attractions.

A $8.5 billion acquisition of three luxury brands may be in jeopardy.

The Federal Trade Commission (FTC) is getting ready to sue to block the proposed merger of Tapestry Inc. and Capri Holdings, reported the New York Times Deal/Book, citing people familiar with the matter. Tapestry, whose portfolio includes Coach, Kate Spade and Stuart Weitzman, entered into an agreement in August 2023 to acquire Capri Holdings, which is made up of Michael Kors, Versace and Jimmy Choo in a deal with an enterprise value of  approximately $8.5 billion.

The deal would create a U.S.-based luxury powerhouse with operations in more than 75 countries. Industry experts said is would also help both companies better compete against their European rivals, particularly LVMH, whose 75 brands include Tiffany, Fendi, Louis Vuitton and Dior.

The acquisition, which has been approved by regulators in the European Union and Japan, has been under scrutiny from the FTC for months, according to the Times report. FTC.’s commissioners are expected to meet next week to discuss the case, a move that could precede a formal vote on whether to file a lawsuit, the report said, noting it is still possible that the agency could decide not to sue.