News

Coffee giant serves mixed brew in third quarter
Starbucks Corp.’s revenue fell short in the third quarter even as its earnings were in line with expectations. The company posted $5.24 billion in consolidated net sales for the quarter ended June 26, up 7% over the year-ago period, but below analysts’ expectations of $5.33 billion. The increase was primarily driven by the opening of 1,876 net new stores over the past 12 months and a 4% increase in global comparable store sales.
Unilever buys Dollar Shave Club in megadeal
Consumer goods giant Unilever is paying a reported $1 billion to buy an online retail start-up that has yet to turn to profit. Unilever PLC announced it is buying Dollar Shave Club, the razor delivery subscription service known for its irreverent brand positioning and viral You Tube videos. Terms of the deal were not announced, but The New York Times and other media outlets reported Unilever is paying $1 billion in cash for the scrappy company, which has yet to turn a profit but expects to do so by yearend.

As renovations go, this one is particularly challenging

The multi-million dollar redevelopment of one of Times Square’s most iconic buildings — the former home of the Toys “R” Us flagship and future home of Gap and Old Navy flagships — is well underway.
GameStop goes seamless with geeky ‘loot’

Even geeks appreciate the convenience and hands-on experience of visiting a physical store. Recognizing the continuing popularity of brick-and-mortar, specialty video game retailer GameStop Corp. has been extending its pure-play ThinkGeek banner into physical stores. GameStop purchased ThinkGeek parent company GeekNet Inc. in 2015. ThinkGeek specializes in selling “loot,” or collectible items and memorabilia, rather than video games.
Target hires Apple veteran to oversee global logistics

A veteran of Apple has been named as the new senior VP in charge of global logistics, inventory allocation and replenishment at Target. Ben Cook will lead the optimization of Target’s inbound and outbound supply chain processes, including carrier transportation and last-mile delivery. He’ll also oversee inventory allocation and replenishment, merchandise planning operations and global logistics. He will report to Target’s executive vice president and chief supply chain and logistics officer, Arthur Valdez.
Analysis: Unilever acquires online retail startup Dollar Shave Club

The Unilever-Dollar Shave Club deal reflects the growing importance of emerging brands, vertical integration, and the consumer direct route to market favored by new CPG market entrants such as Dollar Shave Club, Honest Co., and NatureBox.
GameStop has big plans for virtual reality

Augmented reality mobile game Pokémon Go has given a big sales boost to GameStop.
Deloitte: Retailers should catch early bird back-to-school shoppers

Hesitating to offer back-to-school deals could result in significant loss of potential sales.
Kroger to create new specialty pharmacy division

The Kroger Co. is expanding its position in the pharmacy vertical. Axium Pharmacy Holdings Inc., a wholly-owned subsidiary of Kroger, will acquire Orlando, Florida-based specialty pharmacy retailer ModernHealth. Financial terms of the agreement with ModernHealth parent company ModernHC Holdings Inc. were not disclosed. The deal will create a combined specialty pharmacy that will operate as a wholly-owned Kroger subsidiary.
What’s the connection between Donald Trump and American Apparel?

Politics can make for some strange bedfellows. Donald Trump’s campaign is reportedly using American Apparel to manufacture some of its campaign apparel merchandise, according to Fortune.