Data & Analytics

It may only be mid-June, but retailers nationwide are already eyeing their share of almost $800 billion in estimated back-to-school sales.   Store shelves — both physical and virtual — are already being stocked with this year’s hottest apparel, school supplies, electronics and dorm essentials, all in hopes of luring early bird shoppers. However, beefing up inventory isn’t enough to guarantee a successful back-to-school shopping season.  

The food retail industry has been flush with big mergers lately, but today’s stunner has no precedent.  

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.  

In a sobering statistic, one out of every 27 employees was apprehended for theft from their employer in 2016.   That's according to “The 29th Annual Retail Theft Survey,” conducted by Jack L. Hayes International, a loss prevention and inventory shrinkage control consulting firm. The survey is based on reports on over 380,000 shoplifting apprehensions that took place in 23 large retail companies, representing 16,038 stores with combined 2016 annual sales in excess of $370 billion.   

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.  

Eco-friendly home improvement retailer TreeHouse's new outpost in Dallas is billed as the nation's first energy-positive (meaning it will generate more energy than it uses) big-box store.   The 35,000-sq.-ft. space offers a curated selection of products, materials and technologies — some not available elsewhere—designed to promote healthy and sustainable spaces.  It also offers turn-key services and programs, including kitchen and bath design. solar energy kits, home insulation and "smart" home installation.

E-commerce has generated significant volumes of sales in the electronics and clothing industries, but has yet to gain traction in other retail sectors.  

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.