September 20, 2023
INSTACART begins trading today on the Nasdaq under the symbol "CART." Last week the Company submitted an updated filing for its proposed IPO, setting an offer price of $28 to $30 per share (up from $26 to $28 initially reported). The Company plans to issue 22 million shares in total, consisting of 14.1 million newly issued shares from the Company and 7.9 million shares from selling stockholders (primarily current and former officers, directors, and employees). At the top end of the pricing scale, Instacart will receive roughly $660 million in proceeds (up from the first target of $616 million), and the offering implies an enterprise valuation of up to $10 billion (up from $8.60 billion to $9.30 billion).
SPROUTS FARMERS MARKET plans to open 40 new locations next year, up from the 30 stores it aims to open in 2023. The Company said it has seen success with this year's openings, including its recently opened Haddon Township, NJ store, giving it confidence to expand even more rapidly next year. Expansion has been focused on both new and established markets, with key markets including California, Arizona, Texas, Florida, and the mid-Atlantic.
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STATER BROS. will open a new 46,000 square-foot store in Chino, CA on September 20, bringing its Southern California store count to 170, including three in Chino.
BIRKENSTOCK filed for an IPO, though the number of shares and price range remain to be determined. The Company plans to list on the NYSE under the ticker symbol BIRK. Reports indicate that the IPO could be valued at more than $8 billion. L Catterton bought a majority stake in Birkenstock in 2021 in a deal that valued the Company at about $4.80 billion. L Catterton is affiliated with LVMH, which owns 75 fashion and cosmetics brands.
NORDSTROM announced plans to open a new, 26,000 square-foot Nordstrom Rack in San Diego, CA. With the addition of this new location and 10 other announced store openings, Nordstrom will operate 68 Nordstrom Rack stores, 22 Nordstrom stores, five Nordstrom Locals, and one asos I Nordstrom in California. The store is scheduled to open in Fall 2024.
WALMART is reportedly exploring buying a majority stake in ChenMed, operator of primary care clinics for seniors. The reports note that the companies are in the initial phase of discussions, and therefore “a deal could still be weeks away.” According t other reports, ChenMed ma be valued at several billion dollars. The Company operates on a value-based care model, offering to cover the cost of medical care for older people while taking a financial risk.
AMAZON opened a 600,000 square-foot "tech hub" at the former Lord & Taylor building on Fifth Avenue in Manhattan, NY. Amazon purchased the site from WeWork in 2020, and now employs 2,000 workers there. More than 35,000 square feet of space on the first floor will be used for retail. Additionally, Amazon has partnered with City University of New York to provide class and event space for 25 associated colleges.
ALBERTSONS is introducing a new service called "Flash" which will provide online order pickup and delivery in 30 to 50 minutes. Flash is currently available at more than 2,000 locations, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, and Tom Thumb banners. Customers can place Flash orders via the Company's website and apps at the same cost as purchasing an item in-store. Shoppers can select up to 35 items for Flash pickup or delivery. Albertsons also offers 30-minute delivery in partnership with DoorDash since February 2022. The assortment of 6,000 items includes fresh produce, dairy, eggs, snacks, packaged goods, and frozen foods.
FRESHTAKE, a new grocery store concept that combines convenience, dining, and recreation, is opening a 42,000 square-foot store in Augusta, GA in the summer of 2024. The location was previously a Whole Foods. The store will feature an in-store cafe with seating for 130, two outdoor balconies with patio seating and a walk-up barbecue smokehouse, a 5-hole putting green, and an in-store beer and wine bar. Other features include a sushi bar, pizza and pasta station, sandwich bar, full-service hot food bar, bakery, and a juice/smoothie bar. FreshTake will offer Instacart pickup and delivery services and provide prepared foods delivery and catering services. The grocery concept is the initiative of Jackson Mitchell, CEO of Jackson Mitchell Holdings, which operates five Little Giant Farmers Market locations in the Atlanta, GA area.
TRUE RELIGION opened a 2,000 square-foot store in Atlanta, GA at the Cumberland Mall, its 46th store in the U.S. and its first new store since 2019. While the Company says it remains a digital-first DTC brand, its omnichannel growth strategy is to identify and open selectively in key locations. True Religion is also expanding in India, Indonesia, South Korea, the Philippines, South Africa, Lebanon, and Qatar. Stores will open this fall in Mumbai, Jakarta, Manila, and Johannesburg. It also plans to open 65 stores in China by 2026, with China to represent 10% of its global brand volume by that year.
JACK IN THE BOX opened its second location in the Salt Lake City, UT area in Ogden (the first opened in July). The location features the Company's drive-thru only prototype and includes a walk-up window for ordering and pickup, dedicated parking for mobile, and third-party delivery orders. The first Salt Lake City location reported record-breaking first full month sales that outperformed the previous record setting new market opening by 66%. This was the chain's first new market in over a decade, but this location features dine-in seating. The chain plans to open more locations in new markets, including Louisville, KY.
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DULUTH TRADING invested $53 million to build its first-ever automated distribution and fulfillment center and selected Manhattan Active Warehouse Management to drive and optimize operations. A new distribution and fulfillment facility opened in Adairsville, GA on September 18 which will serve Duluth's 65 retail stores and growing e-commerce business. The Company's ambitious growth plan includes the goal to achieve at least $1 billion in sales by 2025. Its FY23 outlook is for sales of $645 million to $660 million.
WEST MARINE announced that it has "successfully consummated a transaction that will enable the Company's strategic transformation and long-term growth. The transaction includes $125 million in fresh capital provided by existing lenders and L Catterton and a refinancing and/or exchange of existing debt, the result of which will provide the Company with liquidity, significantly reduced total debt, and a strengthened balance sheet."
CAMPING WORLD is set to acquire Edmundson RV in Edinburgh, IN. The transaction is anticipated to close in 1Q24 and will increase the Company's Indiana location count to four.
PET VALU announced the opening of a 670,000 square-foot distribution center in Brampton, ON, Canada, as part of its $110 million supply chain transformation. The facility will bring unprecedented scale and automation to Canada's pet sector as the largest distribution center and robotics automation installation dedicated to serving the pet specialty industry. Pet Valu expects the facility to be fully operational by 1H24, following a phased transition period.
SHEETZ opened its 700th store on September 12 in Columbus, OH. The Company has a presence across six states with plans to expand to Michigan; its first store in Detroit is slated to open in 2025. The Company's long-term aim is to reach 1,000 stores.
Quarterly Earnings
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