Retail

New York -- Private-equity firm Cerberus Capital Management has reached a preliminary agreement to buy Safeway Inc. for over $9 million, the Wall Street Journal reported. The deal is subject to board approval.

As part of the deal, Cerberus would pay roughly $40 a share for Safeway.

The Kroger Co., which recently completed its acquisition of Harris Teeter, reportedly was also interested in making a bid for Safeway. Even if a deal is announced between Cerberus and Safeway, Kroger could still mount a bid.

Issaquah, Wash. – Costco Wholesale Corp. reported a bigger-than-expected 15% drop in net income for the second quarter amid deep-discounting during the holidays. Net income in the quarter ended Feb. 16 fell to $463 million from $547 million.   
 
Costco blamed the lower earnings on several factors, including weaker sales of certain nonfoods merchandise categories and lower international profits. The year-ago period was also helped by a tax benefit.
 

Just as the winter months draw to a close, SC Johnson's Glade brand announced a line of new spring-inspired scents, which it says will evoke the excitement of the change of seasons.

The Glade Limited Edition Spring Collection consists of five new fragrances:

Columbus, Ohio – DSW Inc. is opening two new stores on March 14. The stores will be located in Schererville, Ind., and Birmingham, Ala.

Customers will be eligible to participate in DSW Rewards, a free loyalty program in which customers earn certificates toward future DSW purchases and receive special member-only offers. Customers can also participate in the Shoe Lover community on Facebook to receive exclusive offers and giveaways.

Walmart didn’t mention competitive issues as a source of sales weakness during its fourth quarter, but reports this week from Kroger and Costco indicate they were at least a contributing factor.

Northbrook, Ill. – The U.S. Secret Service has reportedly arrested three members of a family living in Northbrook, Ill., for running a sophisticated shoplifting ring that stole items from stores ranging from Maryland to Texas during the past 10 years.

The Children’s Place is the latest retailer to say heavy promotions and bad weather hurt its fourth-quarter results.

The company’s net earnings in the quarter ended Feb. 1 dropped 18% to $15.7 million, from $19.1 million in the year-ago period, which had an extra week. It reported net sales of $467.5 million for the quarter, down from $509.2 million in the year-ago period. Same-store sales declined 4.3%.

Denton, Texas – Sally Beauty Holdings Inc., which sells cosmetics and hair care products both through salons and its own chain of more than 3,000 retail Sally Beauty Supply stores globally, is reporting that it discovered an attempted data breach.