Hey Friends,
Kohl’s has partnered exclusively with Instacart for same-day delivery services. This collaboration allows nearly 109 million households to access same-day delivery from 1,172 Kohl's department stores across the US through the Instacart app. Customers can conveniently shop for various products like accessories, home essentials, skincare, beauty items, and pet supplies, paying the in-store price and earning Kohl's Rewards.
Teen fashion retailer rue21 plans to close all of its 540 stores after filing for Chapter 11 bankruptcy. This marks the third time the company has filed, the most recent in 2017 and 2002. This adds to the list of other retailers such as The Body SHop and 99 Cents only to close all physical locations in 2024. Court documents reveal rue21 stores are "scheduled to close in the next 4 to 6 weeks."
Express also announced its plans for bankruptcy that will result in closure of 95 stores in 30 states across the US. Express, whose portfolio includes Express, UpWest and Bonobos, said operations will continue as normal but 95 Express stores and all UpWest stores will close.
UBS analysts predict that approximately 45,000 retail stores could shutter in the coming years, as the retail landscape shifts toward using physical spaces primarily for fulfillment and distribution. This projection is based on expectations of a rise in online retail penetration to 26% by 2028, alongside a 4% growth in retail sales. Factors such as banks' hesitancy to lend, increased operational costs, and consumer preferences for spending on services rather than goods also contribute to the forecasted closures. The U.S. market is seen as having an excess of retail square footage, with third-party e-commerce platforms like Temu and Shein poised to further drive online sales without the burdens of maintaining physical stores. Apparel, consumer electronics, and home furnishing retailers are identified as needing to reduce their physical footprints the most.
Shein and Forever 21 are deepening their partnership with assistance from reverse logistics specialist Happy Returns. Shein, which agreed to design, manufacture and distribute a line of Forever 21 apparel and accessories in October 2023, is now offering physical returns at Forever 21's more than 300 U.S. stores nationwide. Happy returns was acquired by UPS in late 2023.
JD Sports Fashion, the largest sportswear retailer in the UK, is set to acquire Alabama-based athletic fashion retailer Hibbett Inc. in a $1.08 billion deal. This move is part of JD Sports' expansion strategy in the United States. The acquisition will be at a price of $87.50 per Hibbett share in cash, representing a 20% premium over Hibbett's last closing price. The combined entity is projected to generate revenues of approximately $5.8 billion in North America, with the region's contribution to total sales expected to increase from 32% to 40%. JD Sports anticipates that the deal will bolster its earnings in the first full year of ownership, with projected cost savings of at least $25 million.
In some Amazon grocery news…..Prime members and customers with a registered EBT card can now get a low-cost monthly subscription with unlimited grocery delivery on orders over $35 from Whole Foods Market, Amazon Fresh, and other local grocery and specialty retailers. Amazon and Walmart are intensifying their competition in the grocery market by focusing on private-label brands to attract shoppers. Walmart recently launched "bettergoods," its biggest private-brand food release in 20 years, offering affordable, high-quality items. Amazon, despite reducing its private-label brands in other sectors, is expanding its selection at Whole Foods. Both companies recognize the importance of private-label brands in driving customer loyalty, especially amid inflation. While Walmart leads in market share, Amazon is steadily increasing its presence in the grocery sector.
Peloton continues to make headlines and is undergoing significant changes as CEO Barry McCarthy steps down amidst the company's efforts to regain stability. Facing a steep decline in share value and financial challenges, Peloton is in the process of restructuring, including slashing 15% of its workforce and seeking a replacement for McCarthy. The company's struggles come after initial success during the pandemic, highlighting the shift in consumer behavior towards in-person fitness activities. Peloton aims to streamline operations and reduce expenses to navigate this challenging period. eloton recently discontinued its unlimited free-membership tier for its app, which was introduced less than a year ago. The company aimed to attract new customers with this offer, but it didn't lead to enough conversions into paid users. According to the finance chief, Liz Coddington, the free tier was actually hindering the conversion process from free trial to paid subscription, prompting the decision to remove it.