August 9, 2023
CAMPING WORLD will acquire RV Arizona Consignment Specialists in El Mirage, AZ. The transaction established a platform and plan for a nationwide rollout of consignment-exclusive locations and integration into the Company's existing dealership locations with consignment sales. It is anticipated to close in 4Q23. Over the 36-month period ending June 30, 2023, the Company has more than doubled its used RV sales to just under $2 billion on a TTM basis.
In other news, Camping World closed on the asset and real estate purchase of Crain RV in Little Rock and Springdale, AR. Upon completion of renovations, the Company intends to open these locations as Forest River RV Little Rock and Alliance RV Northwest Arkansas.
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In the BED BATH & BEYOND, DIP case, the Court entered an order approving the sale of the Harmon and Face Values intellectual property to Harmon Retail Holdings for $200,000. The Debtors stated that they have finalized store closing sales and will no longer be operating any stores. The Debtors filed a motion seeking to reject 24 unexpired leases, which "do not provide value to the estates and that did not generate value in either lease auction." The Debtors provided notice of the rejection of 248 other unexpired leases in connection with the previously approved procedures. No other details were provided.
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REI will open a nearly 40,000 square-foot store in Beaverton, OR in Spring 2024. The Company currently operates eight stores in the state, but this will be its largest. In addition, REI Re/Supply, a standalone store dedicated to used gear and apparel, will open in Clackamas, OR on September 2.
The Company has several new stores scheduled to open in the next several months, including in Prescott, AZ; Sarasota, FL; Bedford, NH; Huntington, NY; and Laguna Hills, CA. REI operates 181 locations in 42 states.
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TRACTOR SUPPLY set a new long-term growth target of 3,000 stores in the U.S., 200 more than its previous target. The Company currently has 2,200 locations and plans to open 70 new units this year. New store openings will gradually ramp up over the next few years, with plans for 80 in 2024, then 90 per year in 2025 and beyond, until the 3,000 target is met. Tractor Supply will fund store expansion in part through sale-leasebacks of some of its new stores, as well as a handful of the 117 completed stores that it currently owns.
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SAVE A LOT announced the re-licensing of its remaining 18 Company-operated stores, finalizing its ongoing strategy to shift ownership and operations of all Save A Lot locations to independent, licensed ownership and to foster continued brand growth as a licensed wholesaler. The Company initially intended to retain operations in its home market of St. Louis, but these locations are being acquired by Leevers Supermarkets, a current Save A Lot Retail Partner with 29 stores in markets including Denver, CO and Philadelphia, PA. Leevers will continue to operate the acquired stores under the Save A Lot banner. The Company indicated that while it is no longer operating stores directly, it will continue to partner closely with individual Retail Partners like Leevers and others across its network to provide a base for testing new innovations and programs before deploying them to all stores.
In an update on the KROGER/ALBERTSONS proposed merger, a district court judge in Northern California dismissed a consumer antitrust lawsuit aiming to halt the proposed merger. The lawsuit was filed in February and alleged that the acquisition violates the Clayton Antitrust Act and Sherman Antitrust Act, and that Albertsons' $4 billion dividend would hurt Albertsons' financial standing, result in higher prices, and worse services. The judge denied the plaintiffs' motion for a preliminary injunction.
Last week, AMAZON FRESH announced significant changes, including a refreshed store format and expanded online access. Several months after pausing the rollout of its Amazon Fresh stores, Amazon completed updates to a pair of Chicago, IL-area locations, in Schaumburg and Oak Lawn. The stores feature more than 1,500 new products, new department signage, a Krispy Kreme donut shop, and merchandising features that are meant to add excitement; the stores also now feature a few self-checkout stations to provide another option besides Amazon's proprietary checkout technology. At the same time, Amazon is adding new online grocery services aimed at bringing the Fresh name to more households and integrating its various grocery brands, including Whole Foods, so that shoppers can put all their items in one cart.
PUBLIX ceased operations of its in-store Aprons Cooking Schools on July 31 but will continue its online cooking classes. Aprons Cooking School hosted weekday classes and summer courses for kids at 11 Publix locations in Georgia, Virginia, and Florida. In addition to ending the in-person cooking school, Publix will discontinue its full-service catering, which includes delivery service and set-up.
AHOLD DELHAIZE announced that its U.S.-based supply chain subsidiary, ADUSA Distribution, has converted a distribution center in Chester, NY for self-distribution purposes. The 600,000 square-foot site was formerly operated by C&S Wholesale Grocers and will route an estimated 65 million cases of product each year for Hannaford and Stop & Shop stores.
The Company began transitioning to self-distribution in 2019 and now operates about two dozen facilities along the East Coast. Last year, the Company added facilities in York and Bethlehem, PA.
HUDSON'S BAY is closing a store in Burnaby, BC, Canada after 54 years in operation. The Company said it will continue to serve the community from three surrounding stores.
L.L. BEAN plans to open two new stores in the U.S. and two in Canada, including its first locations in Quebec. The U.S. locations are slated to open in Hanover (September 8) and Peabody (October 6), MA, while the Canadian locations are opening in Saint-Bruno-de-Montarville (August 25) and Boisbriand (September 29), Quebec. To coincide with the Quebec openings, the Company will introduce a French-language e-commerce site for Canadian customers. In addition, the Company will add Dillard's and outdoor goods retailer Moosejaw, recently acquired by Dick's Sporting Goods, to its roster of U.S. wholesale key accounts, as well as 10 independent specialty retailers in the Southeastern U.S.
L.L. Bean operates 56 stores in 19 states across the U.S., along with 25 stores in Japan and 12 stores in Canada.
THE CONTAINER STORE plans to open six new small format stores this year, as well as three in FY24. The FY23 openings include San Mateo and Woodland Hills, CA (fall), Princeton, NJ (fall), Gaithersburg, MD (winter), Miami, FL (spring 2024), and Huntington, NY (spring 2024). The small format concept was founded in September 2022 with an opening in Colorado Springs, CO, followed by openings in Salem, NH and Thousand Oaks, CA.
In the TUESDAY MORNING, DIP case, the Court issued an order converting the Chapter 11 cases to Chapter 7. The U.S. Trustee is directed to appoint a single interim Chapter 7 trustee to administer the cases. The Court issued orders rejecting an additional 34 unexpired leases. During the proceedings, the Debtors closed 264 of the 464 units they operated as of the petition date. Hilco Merchant Resources, LLC acquired the designation rights to the remaining 200 stores at an auction.
FIESTA RESTAURANT GROUP agreed to be acquired by Authentic Restaurant Brands, a portfolio company of investment firm Garnett Station Partners, LLC. Authentic currently operates restaurants under several brands, including Primanti Bros Restaurant & Bar (39 stores in PA, OH, WV, and MD), Whelihan's Pub & Restaurant (25 stores in PA and NJ), and Mambo Seafood (13 stores in TX). Following the completion of the transaction, Fiesta and its 162 stores (134 Company-owned, 28 franchised) will operate as an independent, privately-held company under its existing leadership. Authentic will pay $8.50 per share to Fiesta's shareholders, representing a total transaction value of about $222 million. The agreement includes a 30-day "go shop" provision and is subject to shareholder approval. Affiliates of Jefferies Financial Group and AREX Capital Management, who together own about 30% of Fiesta's shares, have agreed to vote to approve the transaction. The deal is expected to close during 4Q23.
WAWA converted an 8,000 square-foot store on Drexel University's campus in Philadelphia, PA into a fully digital, shelfless shopping experience. Items inside the store can only be purchased through Wawa's mobile app or via in-store touch screens; staff members then collect the items and put together the order. The change comes amidst Wawa closing several Philadelphia stores due to concerns about crime.
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