News

Five takeaways about the new Walgreens-Rite Aid deal
The drug store industry awoke Thursday morning to arguably the biggest story of the year — the news that Walgreens and Rite Aid had agreed to scrap their original merger agreement one more time, this time in favor of a much smaller, seemingly more manageable deal to purchase 2,186 Rite Aid stores for $5.18 billion in cash. In the first several hours following the announcement of the deal, Chain Store Age sister publication, Drug Store News identified five important takeaways from the blockbuster agreement.
Food stamp cuts could cost retailers $70.7 billion
Proposed cuts in food stamp benefits could cost the the retail industry billions — with supermarkets and discounters taking the biggest hit. AlixPartners estimates that retail collectively stands to lose $70.7 billion during the next 10 years if the proposed cuts in the Supplemental Nutrition Assistance Program (commonly referred to as food stamps) turn into reality, CNBC reported. The budget proposed by the Trump administration calls for $191 billion in cuts to the program between 2018 to 2028.

Study: Fast Web performance outshines rich online experiences

To stand out in a highly saturated digital marketplace, retailers’ must deliver fast speeds that drive top-notch experiences. This is according to “E-commerce Performance: What Works, What Doesn’t, and What’s Next?” The report, from Retail Systems Research (RSR), evaluates 80 major retail websites on page speed performance, as well as end user experience.
Specialty lamps retailer expands online presence into Canada

Lamps Plus is making it easier for Canadian shoppers to make a purchase. The specialty lamps retailer debuted lampsplus.ca, an e-commerce website designed to provide a localized experience in Canada. Canadian shoppers have been purchasing from Lamps Plus ever since the retailer debuted online in 1998. However, the new site specifically targets the Canadian market with prices displayed in CAD dollars.
Consumer electronics giant partners with Amazon, Google

Best Buy is looking to grab share in one of the hottest categories of the "smart" home market: voice-activated devices. The retailer is adding Amazon Alexa and Google Home "experiences" to about 700 Best Buy stores nationwide. The new interactive displays will start arriving in stores in July, with the rollout complete by the end of the year. In addition, there will be an enhanced online presence for the devices on Best Buy's e-commerce site.
Fred's Pharmacy adopts poison pill ahead of merger deadline

Fred’s Pharmacy is taking action to protect itself as the deadline for the Federal Trade Commission’s decision on Walgreens Boot Alliance’s proposed acquisition of Rite Aid merger draws closer.
Convenience store chain in big expansion move

QuikTrip Corp. is expanding into two new markets. The convenience-store chain plans to open a total of 100 stores in the San Antonio and Austin (Texas) areas. Construction is expected to begin this winter, with the first locations scheduled to open in the summer of 2018. The expansion marks QuikTrip's first new market entry in six years. In 2011, the company launched its Carolinas division, adding 75 stores in Charlotte, North Carolina and Greenville, South Carolina.
Report: Merge physical and digital channels to better target shoppers

To step up customer-centricity efforts, retailers must use channels in tandem if they want to deliver personalized experiences.
The new forces shaping the retail industry are…

Affluence is out. So are the days of the mass market. A new report projects 10 years out and reveals three fundamental principles that are shaping tomorrow's consumer packaged goods and retail industries: trust, influence and personalization. In a preview of its 2017 Global Future Consumer study, A.T. Kearney predicts the death of the scale economy that focuses on catering to affluence in favor of one driven by the influence of industry stakeholders, particularly by the hyper-connectivity of the younger generations.
Upcoming gift-card change could have bottom-line impact

An accounting change could give a big boost to retailers' earnings. The new Financial Accounting Standards Board, or FASB, revenue-recognition rule (ASC 606) goes into effect for public companies in 2018. One of the major implications of the new rule involves how the unredeemed dollar portion of company-issued gift cards, called breakage revenue, is recognized, according to a report by MarketWatch. The change will impact everyone who issues gift cards, including both online and offline retailers.
Walmart Canada’s digital channel takes on Amazon

While Amazon expands its physical presence, Walmart Canada is taking its own swipe at the online giant — by moving in on its turf.
Staples acquired in blockbuster deal

The nation's largest office supply retailer is returning to private ownership. Private equity firm Sycamore Partners has acquired Staples for $10.25 per share for cash. The deal is valued at about $6.9 billion.