News Briefs

HBC, the Canadian parent company of Saks Fifth Avenue and Hudson’s Bay, is one step closer to acquiring a premier luxury brand.

HBC has announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of in connection with the companies' previously announced transaction through which HBC will acquire Neiman Marcus Group NMG for $2.65 billion.

The expiration of the HSR Act waiting period satisfies a closing condition for the transaction, which remains subject to other customary closing conditions, including approval by the Federal Trade Commission. Until closing, the companies will continue to operate separately.

In July 2024, HBC entered into a $2.65 billion agreement to buy Dallas-based retailer Neiman Marcus Group in a deal valued at $2.65 billion. Amazon is among the investors in the deal. 

[READ MORE: Parent company of Saks to acquire Neiman Marcus in blockbuster deal]

The combined company, to be called Saks Global, will include the Saks Fifth Avenue, Saks Off 5th Neiman Marcus and Bergdorf Goodman brands, each of which will continue operations under their own brand names. It will be led by Marc Metrick, the CEO of Saks.com. 

The combined company would have only two real competitors in the high-end U.S. department store market: Bloomingdale's, which is owned by Macy's Inc., and Nordstrom. 

Reports of a possible Saks and Neiman’s merger have circulated for years. But the latest negotiations picked up heat about a year ago, with two companies engaged in serious discussions for months.

Casual dining chain Tony Roma’s has promoted its interim CEO.

Mohaimina “Mina” Haque, Esq., has been appointed to the chief executive role after serving as Tony Roma’s outside counsel since 2021, managing global legal matters and providing strategic guidance. A member of the Forbes Business Council, Haque has an expertise in business and franchise law, and founded her own law firm in 2019.

"I’m truly honored to lead Tony Roma's through this exciting chapter as we’ve already made incredible strides,” said Haque. “I’m eager to continue building on this momentum, reinvigorating the passion and innovation that has made Tony Roma’s a household name for generations.”

Haque was named interim CEO for the chain, which specializes in ribs, steak, seafood and more, in June of last year. Tony Roma’s says she helped reshape the company's Environmental, Social, and Corporate Governance (ESG) initiatives, and laid the groundwork for Tony Roma’s future growth. As the company's first female CEO, Haque has been at the forefront of “encouraging innovation and sustainability” within the company.

[READ MORE: Nation's largest restaurant chains increase units by 2% in 2023]

"I've spent the past year studying the challenges that our industry faces and implementing targeted solutions," Haque added. "The strategies we've executed at Tony Roma's, including operational optimization and adapting to changing consumer preferences, can serve as valuable lessons for the wider restaurant sector. By adopting these approaches, our goal is to improve our franchisees’ viability and success in the long term."

Founded in 1972, Tony Roma’s operates 86 locations in 20 countries worldwide, with 11 in the United States.

New data from Mastercard shows that online and in-store sales rose in July, partially due to back-to-school shopping.

Mastercard’s SpendingPulse insights for July showed U.S. total retail sales (excluding automobiles) increased for both online (+8.2%) and in-store (+2.9%) retail sales compared with the same time last year.

While the back-to-school shopping season got off to a solid start, there was some evidence of consumers holding back spending earlier in the month as they waited for promotions to kick-in mid-July. Online apparel sales were up +5.4% compared to July 2023, an uptick that happened in the second half of the month. Total apparel sales last month were fairly flat year-over-year.

[READ MORE: The most popular back-to-school retailer is…]

Consumers also enjoyed dining out in July as restaurant sales were up 2.9% year-over-year. Grocery also saw positive growth, up 2.4% year-over-year.

Mastercard’s data echoes several other recent reports that showed increased sales in July. According to U.S. Census Bureau data, core retail sales (excludes automobile dealers, gasoline stations and restaurants) rose 0.4% from June to July and 5.2% year-over-year. Core retail sales were up 3.4% year-over-year for the first seven months of the year.

Data from Brick Meets Click/Mercatus’ monthly survey showed that online grocery sales increased 9.2% in July over last year. Delivery sales surged 22% in the month, aided by ongoing promotional efforts. Ship-to-home also posted strong results, climbing 6%, and pickup remained steady year-over-year.

The University of Michigan’s Index of Consumer Sentiment rose to 67.8 in a preliminary August reading, up from 66.4 in the prior month, marking the first increase since June. 

Consumers’ views on current economic conditions fell to 60.9 in August from 62.7 in the prior month. But the index on expectations about the future rose to 72.1 — the highest level since April — from 68.8.

Presidential election developments were a major driver of the August survey, according to Joanne Hsu, director, Surveys of Consumers. Sentiment for Democrats rose 6% as Vice President Kamala Harris gained ground in the wake of replacing Joe Biden as the Democratic nominee for president.  Sentiment for Republicans fell 5%. 

“Overall, expectations strengthened for both personal finances and the five-year economic outlook, which reached its highest reading in four months, consistent with the fact that election developments can influence future expectations but are unlikely to alter current assessments,” Hsu said. 

Year-ahead inflation expectations came in at 2.9% for the second straight month. These expectations ranged between 2.3 to 3.0% in the two years prior to the pandemic. 

Long-run inflation expectations came in at 3.0%, unchanged from the last five months. These expectations remain somewhat elevated relative to the 2.2-2.6% range seen in the two years pre-pandemic. 

The survey showed that 41% of consumers believe Harris is the better candidate for the economy, while 38% said Trump is better.

“Survey responses generally incorporate who, at the moment, consumers expect the next president will be,” said Hue, who noted that consumer expectations are subject to change as the presidential campaign comes into greater focus, even as consumers expect that inflation-still their top concern-will continue stabilizing.

Abercrombie & Fitch Co. is partnering to expand the global distribution and product range of its Abercrombie Kids brand.

The retailer has entered into a partnership with Haddad Brands, which specializes in licensed children’s clothing and accessories with a portfolio of brands that include Nike, Ralph Lauren, Jordan, Converse, Levi's and more, and a network of retail partners around the world. It will be the first time that Abercrombie Kids items will be sold at non-Abercrombie stores.

Under the terms of the agreement, A&F Co. will continue to design, produce and sell Abercrombie Kids in its owned-and-operated retail channels as it does today. The company’s partnership with Haddad Brands will focus on creating new distribution channels for the brand and growing the product line by adding infant and toddler categories to the existing assortment, which is currently for 5-to 14-year-olds.

“As we work to diversify A&F Co.’s channel mix and drive sustainable, profitable growth, we are thrilled to partner with Haddad Brands to build on our success and create an opportunity to grow the brand in the years ahead by engaging with new customers globally,” said CEO Fran Horowitz.

[READ MORE: Abercrombie & Fitch posts record quarter as profit soars, sales top $1B]

The Abercrombie Kids’ fall/back to school 2025 line will be available in Haddad Brands’ showrooms globally in September.

“Haddad is honored, humbled, and proud to partner with Abercrombie Kids and, more importantly, Abercrombie & Fitch Co.’s exceptionally talented team, from their leadership down through the entire organization,” stated Jack Haddad, president Haddad Brands. Combined with our incredible team, our seamless collaboration gives us great confidence that the Abercrombie Kids product will continue to resonate with consumers globally. We look forward to extending the Abercrombie Kids brand, making the product available to more consumers in the United States and worldwide.”

 Rite Aid continues to shrink its portfolio.

The drug store chain is closing all 186 stores in Michigan, reported The Detroit News. The newest list of store closures in Michigan submitted in bankruptcy court in recent days marks Rite Aid’s complete exit from the state. Some of the locations have already closed, with the rest to go dark by the end of September.

In addition, Rite Aid is closing its distribution center in Michigan’s Waterford Township, effective Aug. 16.

Rite Aid filed for Chapter 11 bankruptcy protection in October. Since the filing, the company has closed hundreds of stores. As of Feb. 29, Rite Aid operated 1,704 stores across the United States, according to its website. It is expected to emerge from bankruptcy with about 1,300 locations. 

In July, a U.S. bankruptcy judge has approved the chain’s restructuring plan, which cut its debt by about $2 billion and turn over control to its key creditors. 

[READ MORE: Rite Aid restructuring plan approved, slashes debt]

In July, Rite Aid acknowledged that an unauthorized intruder gained access to some of its corporate systems in June 2024. The company said no social security numbers, financial information or patient information were exposed in the breach.