News

There was quite a bit of excitement heading into this year’s RECon convention. The event is, in many respects, the annual event for retail real estate professionals from around the country (and more recently from around the world). It seemed to have a little bit more industry buzz going for it than in recent years. I think the combination of some encouraging economic indicators and the feeling that the industry is on the cusp of what may be a more sustainable long-term recovery had everyone’s optimism in high gear.

New York -- Zumiez Inc. on Tuesday said it has agreed to buy Austria-based Blue Tomato for 59.5 million euros ($75 million). The teen retailer also raised its second-quarter revenue outlook.

Blue Tomato sells branded snowboarding and skating gear, apparel and footwear through its e-commerce website, which is available in 15 languages, and five stores in Austria. The company will continue to be headquartered in Schladming, Austria, and senior management will continue in their current roles.

Dallas -- Alliance Data Systems has agreed to acquire The Bon-Ton Stores’ private-label credit card portfolio worth $475 million.

Financial terms of the deal were not disclosed.

Alliance Data, which provides private-label credit card services to retailers, will also manage the retailer's private-label credit card program.

Bon-Ton Stores, Inc., operates 272 stores in 23 states across the Northeast, Midwest, and upper Great Plains, under a variety of banners.
 

New York -- Walgreen Co. said Tuesday it will pay $6.7 billion for a 45% stake in European health and beauty retailer Alliance Boots, which is based Nottingham, England, with an option to buy the rest of the company in about three years. It is the first international venture and biggest deal ever for the U.S. chain.

PHOENIX — PetSmart shareholders should be pretty pleased with their investment now that the company's board of directors has raised the quarterly dividend. The board has approved an 18% increase to PetSmart's quarterly dividend, from 14 cents to 16.5 cents per share beginning in the second quarter of fiscal 2012.

SUFFERN, N.Y. — Ascena Retail Group has completed its acquisition of Charming Shoppes. The company also plans to cease operating and close down Charming Shoppes’ Fashion Bug business by early 2013, and is exploring a potential sale of Charming Shoppes’ Figi’s business, which markets food and specialty gift products.

In 2011, Charming Shoppes closed 124 Fashion Bug stores. The chain had previously announced its intention to continue to close certain Fashion Bug stores.

MINNEAPOLIS — Target has released its 2011 Corporate Responsibility Report, and while the company was happy to offer insight into its past performance, its focus is on the future. In that vein, the company has introduced new corporate responsibility goals:
 

• To increase its sustainable seafood selection by ennsuring its fresh and frozen seafood offerings are 100% sustainable and traceable by the end of fiscal year 2015.

• Enhance at least 50 owned-brand packaging designs to be more sustainable.

CARLISLE, Pa. — The Federal Trade Commission has approved Giant Food Stores' proposal to acquire 15 Genuardi's stores from Safeway.

The news follows Giant's Jan. 5 announcement that it would acquire the Genuardi's stores, all of which are located in the greater Philadelphia market. Giant also noted that under the terms of a consent order approved by the FTC, the Genuardi's located in Newtown, Pa., will be purchased by Newtown Market and will be operated as a McCaffrey's supermarket.

LOS ANGELES — Nearly half of U.S. shoppers plan to spend more this back-to-school shopping season than in 2011, according to the latest PriceGrabber survey.

Pooling responses from 4,450 U.S. online shopping consumers, with 1,509 of the respondents planning to shop this back-to-school season, 46% said they plan to spend more this year that in 2011, while 35% said they plan to spend the same amount (compared with 52% that expressed this sentiment in 2011) and 19% are looking to spend less this year (compared with 35% in 2011).

CARLSBAD, Calif. — Callaway Golf Company has named Harry Arnett as SVP marketing. In this role, Arnett assumes leadership of the company's global marketing, communications and go-to-market functions.  The announcement was made by Chip Brewer, president and CEO, Callaway Golf.