MACY'S announced plans to open up to 30 new Macy's small-format locations across the country, beginning in 2024 through fall 2025. This expansion is in addition to the nearly 15 small-format Macy's and Bloomie's locations that Macy's currently operates. Macy's said its small-format stores play a major role in its omnichannel strategy to expand in existing markets, enter new markets and maintain a presence in existing markets by replacing stores that may not be as productive. 

Macy's small-format stores, launched in 2020, are strategically located in off-mall shopping centers to bring the brand closer to existing and desired customers while also encouraging more frequent visits. The Company said that year-to-date through spring 2023, its small-format stores open for more than one fiscal year have achieved positive comparable owned plus licensed sales growth. Macy's small-format stores are roughly 1/5 the size of the full-line stores and offer a curated and localized selection of Macy's assortment. 

Bloomie's, the smaller store concept by Bloomingdale's, recently announced its inaugural West Coast location in Seattle, WA, set to open in November. This will be the third Bloomie's location to open, adding to existing stores located in Fairfax, VA and the Chicago area. Bloomingdale's intends to further expand its small-format store footprint in the future. 

SPROUTS FARMERS MARKET confirmed plans to open six more stores in the Philadelphia, PA area, expanding its store count to 11 over a two year span. The Company will open three new stores in the city, one in Montgomery County, and two more at undisclosed locations. Two of the three city locations are planned for Quartermaster Plaza and Roosevelt Mall, and both will open by the middle of next year. The third city location is currently being built on Columbus Boulevard and is expected to open in 2025. Outside of the city, the Company is opening in Limerick, PA, but has not announced a timeline for opening. 

As we've previously reported in August, FRANCHISE GROUP announced the successful completion of its acquisition by a group including members of the Company's senior management team, led by CEO Brian Kahn, in a financial partnership with a consortium that includes certain of Brian Kahn's affiliate entities, B. Riley Financial and Irradiant Partners. 

S&P downgraded the issue-level rating on the Company's second-lien term loan to CCC+ from B-. S&P's B+ rating on the Company's first-lien term loan is unchanged. The outlook remains negative, reflecting the possibility that S&P will lower the Company's rating over the next 12 months if operating performance faces more pressure than forecast.

BIRKENSTOCK begins trading on the NYSE under the ticker symbol "BIRK" today. The Company announced last week that it planned to offer 32.3 million shares priced at $44 - $49 each, raising $1.58 billion and valuing the Company at $9.20 billion. L Catterton, the private equity firm owned by LVMH, acquired a majority stake in Birkenstock in 2021. After the IPO, L Catterton will hold an 82.8% stake in Birkenstock. 

On September 30, SCHEELS opened a 250,000 square-foot location at Chandler Fashion Center in Chandler, AZ, which is in the Phoenix metro. The Company added 100,000 square feet to a former Nordstrom's. The store features a ferris wheel, a saltwater aquarium, and a wildlife mountain, and it sells sneakers, team sports gear, and fishing and hunting equipment. The Company's largest store is a 295,000 square-foot location in Sparks, NV. 

SCHNUCK MARKETS plans to open a Schnucks Fresh store on October 25 in Oak Grove Village, MO, marking its second small-format, fresh-focused store. The 23,000 square-foot store will primarily offer products in departments like produce, seafood, deli, bakery, and meat. It will feature technology including Instacart-supplied electronic shelf labels and a robotic inventory-scanning system from Simbe Robotics. 

The first Schnucks Fresh location, which opened in 2021 in Jasper, IN was intended to give Schnucks access to an area where one of its standard stores would have been too large to be viable. The new store is larger than the inaugural store, which comprises 18,000 square feet, but much smaller than a typical Schnuck's, which averages 60,000 square feet. 

H-E-B opened a store in Allen, TX on October 4, marking its fourth location in North Texas. The store features a True Texas BBQ restaurant, a full-service pharmacy, and a home decor department, as well as curbside and home delivery options.

Last month H-E-B revealed further growth plans for the Dallas-Fort Worth metro area, including construction on stores in Melissa, Prosper, and Rockwall. These stores are expected to open in 2025. 

AHOLD DELHAIZE opened a 58,000 square-foot Hannaford store in Scarborough, ME, marking the chain's 66th store in the state, and its 187th overall. 

BOSCOV'S opened a 151,000 square-foot store at Meadowbrook Mall in Bridgeport, WV, marking its first location in that state. The store opened in a former Sears location. The family-owned department store chain operates 50 stores in nine Northeastern states. 

On September 6, we reported that VARSITY BRANDS and Atlas Holdings jointly announced the signing of a definitive agreement for the sale of Varsity Brands' Herff Jones Graduation Business, including the Scholastic and Collegiate brand portfolio and manufacturing facilities to Atlas.

On October 2, the Company and Atlas announced the completion of the sale. Terms of the transaction were not disclosed. Varsity Brands will retain its Yearbook business, which will be operated within its Varsity Spirit operating segment. The Graduation Business, which focuses on the senior experience and commencement for students, offers products, including caps and gowns, fine paper, jewelry, and frames. 

ALIMENTATION COUCHE-TARD is aiming to sell 68 U.S. Circle K convenience stores, located across 21 states, with concentrations in Indiana and Ohio. The stores average 2,300 square feet and an average lot size of 23,000 square feet. Of the sites, 37 are fee-owned and 31 are leased, while 42 properties sell fuel, and the balance are convenience only. The bid deadline has been set for November. 

RITE AID CORPORATION announced that the NYSE informed the Company that it is no longer in compliance with NYSE continued listing standards. The Company's stock price has been trading below $1.00 per share since August and closed on October 4 at $0.54, representing a market capitalization of just $30 million.

Under NYSE rules, the Company is provided with certain cure periods and its common stock will continue to be listed and traded on the NYSE during the cure periods, subject to compliance with other continued listing requirements.

As we have been covering, reports indicate the Company is planning to file bankruptcy, which will likely include the closure of several hundred stores. 

Hundreds of pharmacists and other employees at WALGREENS stores around the country planned a walk out from Monday through Wednesday this week, according to reports. At issue is working conditions for those in the pharmacy section of Walgreens. According to the reports, "The planned walkouts … are set to take place October 9-11. It comes after similar actions last month at CVS stores, where pharmacists likewise complain that staffing cuts have left them overburdened… Earlier this month, 85,000 Kaiser Permanente healthcare workers — including hundreds of pharmacists — went on strike for three days after failing to reach a contract agreement with the private healthcare company.”

"One of their top concerns was short-staffing, which several workers previously told Insider left employees overwhelmed and caused long wait times for patients."

Walgreens management says that they are "engaged and listening to the concerns raised by some of our team members," and acknowledge that employees are feeling "immense pressure" right now.

On Walgreens’ website, some stores showed their pharmacies were temporarily closed on Monday.

Unlike other labor strikes, there is no union leader to coordinate and publicly address the movement. Instead, pharmacy employees are using platforms like Reddit and Facebook to plan walkouts. As a result, it is also difficult to confirm how many pharmacies will be closed. According to reports, the walk outs could impact well over 500 interested stores (out of approximately 9,000) across the country.

REGIS CORPORATION received written notice from the NYSE that it is no longer in compliance with NYSE continued listing standards. The Company's stock price has been trading below $1 per share with a 30 trading-day average price of $0.92. The Company's stock price closed at $0.67 on October 6, representing a market capitalization of just $30.6 million, making it noncompliant with the NYSE market capitalization requirement.

Under NYSE rules, the Company is provided with a six month cure period and its common stock will continue to be listed and traded on the NYSE during the cure period, subject to the Company's compliance with other continued listing requirements. If Regis does not regain compliance with the minimum share price requirement, its common stock will be subject to suspension and delisting from the NYSE. If its common stock ultimately were to be delisted, it would negatively impact the Company by reducing the liquidity and market price of the common stock. As of June 30, Regis had $42.8 million in liquidity, including $33.3 million in revolver availability and $9.5 million in cash. 

STARBUCKS will close seven stores in downtown San Francisco, CA, effective October 22. The Company currently operates 59 locations throughout the city.

In recent months, several retailers have shuttered locations in downtown San Francisco, including Nordstrom, which closed its store at Westfield San Francisco Centre in August. Target recently announced it would shutter nine stores in key cities across the U.S., including one in San Francisco, amid theft and safety concerns. However, Starbucks did not cite crime as its reason for closing the stores. 

KRISPY KREME is exploring strategic alternatives for Insomnia Cookies, including considering an all-cash sale. The Company acquired a majority stake in the cookie brand in 2018 to build its e-commerce and digital capability as well as to assist Insomnia's U.S. and International expansion. CEO Mike Tattersfiels said, "Both efforts have been successful and it's time for the next strategic step for both companies."

General Interest

Soaring Bankruptcies... According to data provided by Epiq Bankruptcy, which provides U.S. bankruptcy filing data, commercial Chapter 11 bankruptcies have soared 61% YOY to 4,553 during the first nine months of 2023. Small business filings rose 41% to 1,419, and all types of bankruptcy filings in the commercial sector rose 17% to 18,680. Consumer filings also rose this year, up 17% to 313,458. High-profile retail filings included David's Bridal, Bed Bath & Beyond, and Party City. 

While both commercial and individual filings remain below pre-pandemic levels, the increase is a sign that challenges are building, including expanding debt.