Supply Chain & Merchandising

PLEASANTON, Calif. — Safeway Inc. reported net earnings from continuing operations of $1.06 per diluted share for the fourth quarter which ended Dec. 29, 2012. This includes a $0.12 per diluted share benefit from legal settlements. When you exclude this benefit, earnings per diluted share is 94 cents. This represents a 58% improvement in earnings per diluted share over last year when the settlements are included and a 40% improvement when the settlements are excluded. 

CINCINNATI — Kroger on Tuesday promoted Robert Clark as group VP non-perishables.

"Robert brings impactful leadership and extensive merchandising experience to our team," stated Michael Donnelly, Kroger's SVP merchandising. "His valuable knowledge of our customers across the country will further strengthen our strategic direction."

As group VP, Clark will be responsible for grocery, health and beauty, adult beverage, general merchandise and pharmacy.

New York -- OfficeMax Inc. and Office Depot have formally announced an agreement under which the two companies would combine in an all-stock merger that would transform the office supply sector of retail. The merger, which creates a single company with nearly $18 billion in revenue, was unanimously approved by the board of directors of both chains.

NAPERVILLE, Ill. and BOCA RATON, Fla. — The office retail field narrowed Wednesday, as OfficeMax and Office Depot officially announced an agreement to merge into a single company. The combined company would have had pro forma combined revenue for the 12 months ended Dec. 29, 2012 of approximately $18 billion.

Under the terms of the agreement, OfficeMax stockholders will receive 2.69 Office Depot common shares for each share of OfficeMax common stock.

ROCKFORD, Mich. — Outdoor and sports apparel manufacturer Wolverine Worldwide reported that its consolidated fourth fiscal quarter revenue was $652.2 million, growth of 60.5% versus the prior year.

In the fourth quarter, excluding non-recurring transaction and integration expenses, earnings per share were 48 cents compared with the company's prior guidance of 12 cents to 22 cents per share.  

NEW YORK — Iconix Brand Group has acquired Lee Cooper, a global lifestyle brand with over a 100-year heritage for $72 million in cash. The brand was acquired through the company's Luxembourg subsidiary, Iconix Luxembourg Holdings Sarl. 

New York -- Office Depot and OfficeMax are in talks to merge, according to reports by the Wall Street Journal and Bloomberg.

The retailers are discussing as potential stock swap that would result in a single company with nearly $18 billion in revenue, reports said. The combined company would be better positioned to take on Staples, Walmart and other competitors.

The second and third largest players in the office retail space could soon join forces. According to published reports,OfficeMax and Office Depot could announce a merger this week.

The rumors have gotten Wall Street buzzing as pre-market trading saw shares of Office Depot and OfficeMax up 28.5% and 20%, respectively.