Direct To Consumer (DTC)

For the first time ever, UPS is going to add a surcharge for orders delivered to homes during peak holiday times.    The surcharges, which apply only to residential deliveries, could boost the buy-online-pickup-in-stores (BOPIS) strategy deployed by many store-based retailers.  The move comes as the shipping giant look to combat its escalating costs, which include increased investments in hiring, in the wake of the shipping boom caused by rising online package volumes.    

Walmart is buying the hot men's clothing company Bonobos for $310 million in cash.    The move is in keeping with Walmart's recent efforts to beef up its online offerings and widen its appeal by buying digitally native brands that target millennials and younger consumers. Founded online in 2007, Bonobos has expanded its assortment over the years and has also opened 35 brick-and-mortar stores ("Guideshops"). It also has a partnership with Nordstrom.   

J. Crew is entering into a deal that it expects will put it one step closer to improving its business.   The fashion retailer has won the support of more than 50% of its term loan holders to trim its $2 billion debt load and end intellectual property litigation. This was according to sources familiar with the situation, according to Reuters.  

The Bebe brand is undergoing a transformation — thanks to a new parent company.   Global Brands Group Holding Limited, a leading branded apparel, footwear, and fashion accessories company — and a spin-off of global exporter Li & Fung Ltd., is partnering with the Bebe brand to relaunch a new e-commerce platform. In addition, the company will redesign the brand’s international brick-and-mortar stores to better meet the heightened shopping expectations of Bebe’s consumers.  

The retail sector is used to change, but every so often an event occurs that shakes the industry to its core. Amazon's acquisition of Whole Foods is one of those.   On the surface, the purchase -- which comes with a $13.7 billion price tag -- is surprising. However, there is an inherent logic in the move which, in our view, brings benefits to both businesses.  

In a blockbuster deal, online giant Amazon is acquiring Whole Foods Market in an all cash transaction valued at $13.7 billion, or $42 a share.    John Mackey, co-founder and CEO of Whole Foods, will remain CEO of the grocer after the deal closes. Stores will continue to operate under the Whole Foods banner, and the company's headquarters will remain in Austin, Texas.  

Chuck Grom, analyst, Gordon Haskett analyst:

The nation's largest toy store retailer saw its sales decline and net loss widen in a rough first quarter. For the quarter ended April 29, Toys "R" Us reported a net loss of $164 million. That's up from net loss of $126 million in the year-ago period.