HBC, parent company of Saks Fifth Avenue, confirmed it has entered into a definitive agreement to acquire Neiman Marcus Group (NMG), parent company of Neiman Marcus and Bergdorf Goodman, for a total enterprise value of $2.65 billion. Upon transaction close, HBC will establish Saks Global, a combination of luxury retail and real estate assets, including Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus and Bergdorf Goodman, each of which will continue operations under their respective brands.

The Boards of Directors of HBC and Neiman Marcus Group have approved the transaction. The transaction is subject to the receipt of required regulatory approvals, and other customary closing conditions. Until closing, the companies will continue to operate separately.

The combined company will have 77 department stores (39 Saks Fifth Avenue, 36 Neiman Marcus and two Bergdorf Goodman stores), and 100 off-price outlets (95 Saks OFF 5th and five Last Call discount stores).

Unconfirmed reports indicate that Macy’s continues to be the target of Arkhouse Management, a real estate investment company, and Brigade Capital Management, a global asset manager. Further, the group appear to have upped their acquisition offer for a second time, to $24.80 per share, or a $300 million increase and valuing Macy’s at roughly $6.9 billion. The increased bid represents a more than 40% premium over Macy’s closing stock price in early December, when takeover talks first surfaced. Macy's ended 1Q24 with 718 locations in operation. 

According to reports, LL Flooring is considering filing Chapter 11 "in the coming weeks," citing the unfavorable impact of high interest rates which have curtailed home renovation activity. The reports also state that the Company's adviser, Houlihan Lokey Inc., has been contacting potential investors about a deal to inject fresh capital into the company. LL Flooring operates 431 locations nationwide.

Jack in the Box will open eight Company-operated units in the Chicago, IL area, and it has identified another 125 potential trade area opportunities for future growth in the area. The first locations are slated to open in 2025, and they will mark the first openings in Chicago in over four decades. They will include traditional freestanding locations, end-caps with drive-thru, conversion of existing buildings, and dark kitchens. 

Last month the chain announced plans to open its first stores in Georgia and a 15-unit expansion in Florida; earlier this year Jack in the Box said it would open in Michigan for the first time with five stores on the west side of the state. In 2023, the chain signed 123 new restaurant agreements. There are 2,200 Jack in the Box restaurants across 22 states, and 600 Del Taco restaurants across 16 states. 

Buc-ee's is seeking approval to build a second store in Louisiana, in Lafayette. Last year the Company revealed plans for a Buc-ee's in Ruston, with a scheduled opening in December 2025 or 1Q26. The store is expected to be 53,000 square feet and include 120 gas pumps. In addition, the Company is also looking to expand into Oklahoma, though no prospective sites have been confirmed. The Company has sites open in Texas, Alabama, Colorado, Florida, Georgia, Kentucky, Missouri, South Carolina, and Tennessee; plans are in the works for Arizona, Arkansas, Kansas, Louisiana, Missouri, North Carolina, Ohio, Oklahoma, Virginia, and Wisconsin. Buc-ee's operates 47 locations, of which the majority are located in Texas. 

According to published reports, the U.S. Federal Trade Commission is preparing to sue to block the $4 billion merger between mattress manufacturer Tempur Sealy International Inc. and Mattress Firm, apparently, over concerns about the deal’s impact on manufacturing jobs. To address the potential regulatory concerns, Tempur Sealy had previously stated it would divest some 200 stores across the country, and in May it signed agreements with six other mattress makers for Mattress Firm stores to continue carrying their brands.

Mod Pizza is reportedly on the brink of filing for bankruptcy, with speculation that a filing may occur within one week. According to the reports, nothing is finalized, and the outcome is subject to change. A spokesperson for the Company indicated there are efforts to restructure its finances, and that all options are being explored to improve its capital situation. Mod Pizza was founded in 2008 and has over 500 locations nationwide. 

In the Rite Aid, DIP case, the Debtors identified an additional 38 stores for closure, bringing the total of announced closures to 628. 

In the Express, DIP case, the Court issued an order authorizing rejection of 68 leases.

Walmart has reportedly held talks with potential buyers to sell its already shuttered medical clinics. In April, Walmart closed all 51 of its health clinics and shut its virtual healthcare operations. The talks reportedly involve health insurance companies such as Humana. Walmart recently sold MeMD, its virtual care subsidiary, to healthcare technology startup Fabric for an undisclosed value.

Balls Food Stores plans to transfer ownership of the Company to its employees. The 25-store Midwestern chain has formed an Employee Stock Ownership Plan (ESOP), which allows employees to gain an ownership interest through shares of company stock. Eligible workers will receive allocations of stock without needing to make out-of-pocket contributions. ESOPs are common within the grocery industry; Brookshire Brothers, WinCo Foods, and Publix are employee-owned. 

General Interest

The unemployment rate unexpectedly climbed in June 2024 to 4.1%, tied for the highest level since October 2021. The increase indicates the level of working age people who are employed or actively searching for a job rose to 62.6%, up 0.1%. The prime age rate, which focused on those between 25 and 54, rose to 83.7%, its highest in more than 22 years.

Employment increased by 206,000 for the month, higher than the 200,000 forecasted but lower than the 218,000 revised gain in May. Average hourly earnings increased 0.3% for the month and 3.9% from a year ago. June job creation was in large part due to 70,000 government jobs. Healthcare added 49,000, social assistance contributed 34,000, and construction was up 27,000. Several sectors saw declines, including professional and business services, down 17,000, and retail, down 9,000. 

The Food Industry Association, FMI, released a report indicating grocery industry profit margins and same-store sales growth have fallen back to pre-pandemic levels, after experiencing a spike during the pandemic. Just 38% of surveyed food retailers believed comps would grow in 2024, while 13% predict net profits will increase. The report said that food retailers are focusing on improving cost controls and cutting unnecessary expenses. In 2023, profit margins in the grocery industry hit 1.6%, the lowest level since it was 1% in 2019, as total expenses increased. Same-store sales growth of 2.1% last year was driven by inflation.