June 21, 2023
Home Depot was notified that TRC Capital Investment Corporation made an unsolicited “mini-tender” offer to purchase up to 500,000 shares (less than 5% of total shares) of Home Depot’s common stock, at an offer price of $280 per share. This price is 4.5% lower than the closing price of Home Depot’s common stock on the NYSE on June 5, the last trading day prior to the date of the offer, June 6. The Company does not endorse this unsolicited mini-tender offer and recommends shareholders do not tender their shares as the offer is significantly below the current market value. The offer expires July 7.
In other news, as part of its annual investor conference, Home Depot reaffirmed its FY23 guidance, said it planned to open as many as 80 new stores in the next five years, and provided a Market Stability Outlook. Richard McPhail, EVP and CFO said, “Once the home improvement market returns to stability, we expect to see sales growth consistent with how our business has performed in the past,” adding, “while the base case assumes share capture, we are not ruling out a case for even higher growth. In our Accelerated Growth Case, we would expect sales and earnings per share to grow faster than the Market Stability Base Case.”
Click here to request a sample list of future openings and closings.
Cineplex provided 2Q23 box office results to date, including May and the first 11 days of June. The Company noted that the comparable May 2019 period included an all-time record for the Company and the second highest grossing film of all time, Avengers: End Game. The Company said June is off to a strong start with SpiderMan: Across the Spider-Verse, which established a record for the highest opening for the first weekend in June and surpassed its predecessor, Spider-Man: Into the Spider-Verse released in 2018, by 341%. For the period from April 1 to June 11, Cineplex’s box office revenue increased 88% from 2019, with combined box office and theatre food service revenue amounting to 92% of 2019 revenue. For May, box office revenue was $48 million, or 69% of May 2019 sales. For June-to-date, box office sales exceeded June 2019, representing 121% of the first 11 days of June 2019.
Walmart will invest $257 million to build a 330,000 square-foot beef-packing plant in Olathe, KS, which will create 667 permanent jobs. Construction is set to begin later this year and is slated to be completed sometime in 2025. The Company also invested a minority stake in Sustainable Beef, which will allow it to source angus beef from its own newly built processing center in North Platte, NE.
In the Christmas Tree Shops, DIP case, the Debtors filed a motion to reject 10 unexpired leases on stores. The Debtors previously indicated they plan to close 10 stores by the end of June.
Click here to request a list of future closings.
In the David’s Bridal, DIP case, deadlines in conjunction with bidding procedures for the Debtors assets were rescheduled, as follows:
- Bid deadline 6/20/2023
- Auction 6/21/2023
- Notice of Successful Bidder 6/21/2023
- Sale hearing 6/27/2023
In the Bed Bath & Beyond, DIP case, the Court entered an order authorizing the rejection of two leases, located in Cincinnati, OH.
In addition, the Debtors have scheduled a separate auction for the buybuy Baby assets on June 28. The auction of all assets other than buybuy Baby will start as scheduled on June 21.
For more information about Bed, Bath & Beyond's store closings, see the updated data below.
Smashburger has struck deals to develop 26 new stores. The Company signed a multi-unit development agreement to expand its footprint in Utah, bringing new locations to Salt Lake City. Multi-unit franchisee Michael Walker of Zuvachs LLC will lead the Utah expansion and acquired two existing Smashburger locations in Salt Lake City through the deal. In addition, the same franchisee will build five Fazoli’s locations in Salt Lake City.
Smashburger is also looking to expand within Southern California, Georgia, the Carolina’s, as well as Florida. The Company recently opened its first “virtual drive-thru” concept at its new corporate-owned restaurant in Houston, TX. Customers who place an order online or through the Smashburger app will be able to have food delivered to a designated parking lane.
Aldi opened its first store within the city limits of Miami, FL on June 15; it already operates six other stores in the Miami-Dade county.
Click here to request a sample list of future openings.
Dollar General lowered its FY23 sales and comp guidance and now expects to open 990 new stores, down from 1,050 previously.
In other news, the Company plans to open its first store in Montana in Fall 2023, marking its 48th state. Two locations are currently under construction in Columbia Falls and Eureka. The discount retailer is also evaluating additional areas for potential growth in the state.
Click here to request a sample list of future openings.
The Rockport Company commenced voluntary proceedings under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware to restructure its assets. Rockport intends to seek authorization to pursue a sale process through an auction. The proposed bidding procedures, if approved by the court, would require interested parties to submit binding offers to acquire Rockport’s assets. The Company indicated that it entered into negotiations with a potential purchaser, “who has significant experience in the industry,” to serve as a stalking horse bidder. Gregg Ribatt has resigned as CEO and Joseph Marchese of PKF Clear Thinking was appointed chief restructuring officer.
LL Flooring received a letter from Howard Jonas, a consortium of investors with more than 5% of the Company’s outstanding shares, encouraging the Company to accept the offer made on May 26 by F9 Investments and Cabinets to Go to acquire the Company for $5.76 per share. According to the letter, Howard Jonas believes the offer is “a fair starting point for acquisition discussions.”
Camping World is acquiring Van Boxtel RV in Green Bay, WI. The acquisition is anticipated to close in 3Q23 and will bring the Company’s Wisconsin store count to seven.
The Company is also rolling out a new RV dealership format which dedicates select individual dealerships exclusively to selling, servicing, and showcasing a specific RV brand’s products. The recent opening of a Jayco-focused Camping World store in Morgan Hill, CA marks the debut of this format. The Company intends to open, acquire, or convert manufacturer exclusive locations across its network. The first wave of branded dealerships will open in the following markets:
At its first annual Retail Supplier Summit, CVS management discussed its new store prototype to reinforce its position as “the front door of health care in America.” According to management, the first thing the new format is expected to do is “increase the relevance of our health and wellness offering, less from an assortment perspective and more from the storytelling and the editorial nature of the format. The second is we’re trying to make it really easy for consumers to find products. The third is we’re trying to simplify the store for our colleagues, make it easier to stock, make sure everything has a home and remove a lot of the clutter.”
The latest iteration of the CVS Pharmacy prototype is in Millis, MA, about 30 miles outside Boston. Eighteen percent of the SKUs typically found in a CVS store have been eliminated. The paring of the merchandise mix, which was executed through the lens of the Company’s focus on health and wellness, was accompanied by the elimination of unnecessary shelf tags and other signage. Management said, “A few things are different when you walk in the Millis store. The first is the colleague faces the consumer. By doing that, there’s an immediate connection. The second is the store is built in a circuit, which creates a natural movement around the store. The third is that our end-caps are all very intentionally done. They’re editorialized; there’s an end-cap story. We also have feature tables that talk about more complicated stories like sleep. That allows us to actually take the consumer through a racetrack of multiple stories.”
On June 28, a new Lidl will open in Washington D.C. This will be the 28th Lidl in the D.C. MSA (Lidl’s headquarters is in Arlington, VA).
Click here to request a sample list of future openings and closings.
On the same date, June 28, a new Whole Foods Market will also open in Washington D.C. The 47,000 square-foot Whole Foods location joins 23 other stores in the D.C. MSA.
Click here to request a sample list of future openings and closings.
Darden Restaurants completed its acquisition of Ruth’s Hospitality Group on June 14. The Ruth’s Chris Steak House brand now joins Darden’s portfolio of brands that include Olive Garden, LongHorn Steakhouse, Yard House, Cheddar’s Scratch Kitchen, The Capital Grille, Seasons 52, Eddie V’s, and Bahama Breeze. Ruth’s Chris operates 155 locations globally, including 81 Company-owned and 74 franchised locations.
On June 15, Amazon opened the first phase of its HQ2 building in Arlington, VA. The first phase, known as Metropolitan Park, includes more than 2 million square feet of office space, 50,000 square feet of retail space, and a 2.5 acre public park with amenities for the community, including protected bike lanes and walking paths, a dog park, children’s recreation area, a community garden, public art installations, and a central green. Amazon has committed $160 million to nonprofit organizations in the Washington D.C. area as part of its move to the region.
In March, Amazon announced it is pausing construction on its second headquarters as it reassesses its office needs amid ongoing job cuts. Amazon chose Arlington in 2018 and is projected to spend $2.50 billion to bring more than 25,000 jobs by 2030.
Click here to request a sample list of future openings and closings.
Hy-Vee opened a new 135,000 square-foot store in Gretna, NE on June 13, which cost $37 million. A 6,300 square-foot Aisles Online grocery delivery and pickup service and an adjacent 4,250 square-foot Hy-Vee Fast & Fresh accompanies the store. It also includes a new large, open food hall dining area for fast-casual dining, which includes Hy-Vee’s expanded breakfast menu, a pub, Mealtime offerings, Mia Italian, HyChi and Hibachi, Nori Sushi, Market Grille Express, Long Island Deli, and a Wahlburgers.
Harris Teeter, a subsidiary of Kroger, is expanding its delivery service to customers across Baltimore and throughout greater Maryland. Delivery is now available in Frederick and the Baltimore metro area, with expansion into more zip codes through June. Delivery assortment spans more than 30,000 items including fresh produce, meats and seafood, and private label items.
The below retailers recently released their earnings reports. To request more information on these companies, or to discuss the financial performance with a retail industry expert, please click here.
