News Briefs

The sporting goods and outdoor recreation retailer retailer named Chad Fox to the newly created role of executive VP and chief customer office, overseeing omnichannel, marketing, customer insights and customer care. He joined Academy in January 2024, and reports directly to CEO Steve Lawrence.

Fox brings nearly 25 years of retail, agency, and consumer packaged goods marketing experience to Academy. Most recently, he spent five years at Dollar General, where he served as senior VP and chief marketing officer and led the brand strategy, marketing, media and digital teams 

Prior to joining Dollar General in 2019,  Fox spent 13 years in various executive positions at Walmart, including as VP of retail marketing from 2019 – 2019, where he guided marketing and media activities across all merchandising categories, seasonal events, and digital products and services. 

"Chad brings a wealth of retail brand strategy, marketing, media, data analytics, and digital experience that Academy will leverage to execute our long-term growth initiatives to attract and engage customers through communications, content and experiences and build a more powerful omnichannel business, while continuing to build Academy's brand awareness as we grow in existing and new markets,” Lawrence stated.

Academy opened 14 new stores in fiscal 2023.  The company, which currently operates 282 stores across 18 states, plans to continue its expansion efforts with a goal of opening a total of 120 to 140 new stores by the end of 2027.

Fraudulent returns had a significant impact on returns this holiday season, with a quarter of U.S. consumers engaging in a practice called "wardrobing."

One-in-four U.S. consumers bought an an item with the intent to return it ("wardrobing") after use during the 2023 holiday season, according to a Harris Poll survey in partnership with Forter of more than 2,000 U.S. and more than 1,000 U.K. consumers.  

The practice is most common with millennials and Gen Z. Nearly half (47%) of these return abusers in the U.S. this holiday season are between the ages of 18 and 34. 

In other findings, 56% of U.S. consumers admit to wardrobing in the past. Consumers admit to wardrobing apparel (36%), footwear (25%) and personal electronics (19%). The vast majority of return abusers are between the ages of 18 and 34. 

Simple, consumer-friendly return policies are becoming more important for online retailers and merchants to have, according to the poll data. An overwhelming 70% of U.S.consumers said they will stop shopping with a brand if their return policy becomes too complicated. More than half (57%) of U.S. consumers will stop purchasing from a brand that charges for returns.

A similar survey from SAP Emarsys Customer Engagement showed that nearly nine-in-10 (88%) of U.S. consumers have stopped shopping with a retailer because of a paid returns policy being introduced. Over half (54%) said they actively avoid retailers that charge to return items.

CVS Health is trimming its footprint inside Target.

The pharmacy retailer and health care company plans to close “dozens” of its pharmacies inside Target stores between February and April, reported The Wall Street Journal. Employees affected by the shutterings will be offered comparable roles within CVS, and prescriptions will be transferred to a nearby CVS pharmacy.

The closures comes as CVS  has been working to reduce costs as it continues to transform itself into a major health care company. In November 2021, the company said it planned to close approximately 300 stores annually during the next three years “to reduce store density in certain locations.”

CVS, which operates approximately 9,000 stores nationwide, operates a pharmacy in about 1,800 of Target’s 1,956 stores in the U.S., reported CNBC. (In December 2015, CVS Health completed a deal to acquire all Target pharmacies and retail clinics across 47 states.)

In March 2023, CVS completed its approximate $8 billion acquisition of Signify Health. And in February, it entered into a deal to Oak Street Health in a deal valued at approximately $10.6 billion. Oak Street operates primary care centers that service people with Medicare Advantage plans.

7-Eleven, Inc. is expanding its footprint. 

The convenience store giant has entered into an agreement to acquire 204 stores from Sunoco LP, which includes Stripes convenience stores and Laredo Taco Company restaurants. The deal is valued at approximately $1 billion. 

The stores being acquired are located across West Texas, New Mexico and Oklahoma. The locations will join the more than 13,000 7-Eleven, Speedway and Stripes locations that 7-Eleven currently operates, franchises and/or licenses across the U.S. and Canada. With the addition of the stores, 7-Eleven will own and operate all Stripes and Laredo Taco Company locations across the United States.

"Stripes and Laredo Taco Company have been a great addition to our family of brands since they initially joined us back in 2018," said Joe DePinto, CEO of 7-Eleven, Inc. "We're excited to welcome the remaining Stripes stores and Laredo Taco Company Restaurants to the family, and we look forward to serving even more customers across West Texas, New Mexico and Oklahoma."

The transaction will close after satisfaction of customary closing conditions, including necessary regulatory clearance.  

"Stripes and Laredo Taco Company have been a great addition to our family of brands since they initially joined us back in 2018," said Joe DePinto, CEO of 7-Eleven, Inc. "We're excited to welcome the remaining Stripes stores and Laredo Taco Company Restaurants to the family, and we look forward to serving even more customers across West Texas, New Mexico and Oklahoma."

Sunoco said it will use proceeds from the sale to reduce debt and "execute on future growth opportunities."

A third-generation family member is taking the reins of Big Y Foods.

Michael D’Amour, COO of Big Y since 2019, will transition to the role of president and CEO, effective Jan. 26.  With the change, current CEO Charles L. D’Armour will become executive chairman of the board. He is the son of Big Y co-founder Gerald D’Amour and was appointed president in 2006 and CEO in 2019. 

In other moves,  Richard D. Bossie, who currently serves as senior VP of retail operations and customer experience, has been named VP and COO.

“For nearly 90 years, Big Y has been proud to honor the legacy of our founders, Paul and Gerry D’Amour, as a family company focused on our employees, our customers and the communities we serve,” Charles L. D’Amour said in a press release reported by MassLive.   “I have worked closely with Michael D’Amour, other members of our 3rd generation of family members along with the rest of our leadership team who are all well poised to lead our company and continue that legacy of service. I have the utmost trust and confidence in Michael and Rick to continue our company’s growth and success.”

Based in Springfield, Mass., Big Y operates 84 locations throughout Massachusetts and Connecticut, including 70 supermarkets, Table & Vine Fine Wines and Liquors and 13 Big Y Express gas and convenience locations. It is one of the largest independently owned supermarket chains in New England. 

The events in the Red Sea are already causing a serious headache for U.S. businesses in both the short- and long-term.

In the short-term, ocean-freight costs for shipments bound for the East Coast from China will continue to increase. Prices are already up by 52% since the crisis began, as ships look to reroute around South Africa as part of their trans-Atlantic route, leading to a delay of up to three weeks. 

While East Coast shipments are bearing the brunt, businesses are increasingly looking to reroute shipments entirely to go to West Coast ports, pushing up prices there as freight firms adjust their capacities. Businesses are now looking at spending $1,000 more for West Coast shipments than they were before the situation in the Red Sea began.

Businesses will be facing delays in receiving stock, which will have the most significant impact on those selling seasonal goods. In the longer-term, lead times will increase for imported goods, meaning businesses will have to shift their normal decision-making timescales to ensure they have adequate stock.

It is impossible to predict what will happen next, and, with the geopolitical situation in the region showing no signs of abating soon, businesses need to brace themselves for long-term disruption and restart conversations around onshoring or nearshoring to boost resilience.

Matthias Menck is principal consultant at supply chain and procurement consulting firm at Proxima.