Monday, September 29, 2014
Accelerating Retail News
Burger King has confirmed a deal to buy Tim Hortons with financial assistance from Warren Buffett. The deal, valued at about $11 billion, will allow the burger chain to expand its global presence and possibly cut taxes by moving out of the US. Under the terms of the agreement, Burger King will pay $59.74 in cash and 0.8025 shares of the new company for each Tim Hortons share. Warren Buffett's Berkshire Hathaway will contribute $3 billion in preferred equity financing for the deal, but won't have any role in management. The deal is subject to approval from the Canadian government. The merged company will be based in Canada, and with 18,000 restaurants worldwide, will become the world's third-largest fast-food company. It’s not yet know whether the new Treasury Department rules to limit tax inversions will affect this merger..Boston’s Restaurant & Sports Bar is planning to open 5 locations in Greater Baltimore. The Dallas-based chain, which specializes in gourmet pizza and pasta, signed a five-unit franchise agreement to develop restaurants in Baltimore, Baltimore County and Harford County. Boston’s has 32 locations across 22 states...Muscle Maker Grill will open 22 new locations throughout the country, which will raise the number to over 75 units. Recent openings include Las Vegas, NV, Dallas, TX, Hamden, CT, and Staten Island, NY...Destination XL Group Inc. anticipates opening 40 additional 5,000 - 6,000 s/f DXL stores in select smaller markets, for a total of 270-300 new DXL stores. Destination XL will also close approximately 40 Casual Male XL and Rochester Clothing stores...Abercrombie & Fitch anticipates opening 14 international stores throughout the year, including 8 Hollister stores and 5 Abercrombie & Fitch stores. The company also plans to open approximately 8-10 international and US outlet stores,and expects to close approximately 60 US stores, during the fiscal year...1-800-Flowers.com Inc. has entered into an agreement to acquire Harry & David Holdings for $142.5 million in cash. The deal includes Harry & David’s brands and websites, headquarters, manufacturing and distribution facilities and orchards, warehouse and distribution facilities, and 47 Harry & David retail stores...Peet’s Coffee & Tea is opening 16 stores in the greater Chicago area in a phased rollout across the market this fall, part of Peet’s US expansion effort which will bring its store total to nearly 300 locations nationwide by the end of the year...Neiman Marcus will open its first Manhattan location, 250,000 s/f three-level store in the new Hudson Yards development, in 2018. Hudson Yards include more than 17 million s/f. of commercial and residential space. As part of its New York expansion, Neiman Marcus will also open a full line store in Roosevelt Field Mall in Garden City in 2016...In December, Starbucks will open its first Starbucks Reserve Roastery and Tasting Room in Seattle. The 15,000 s/f store is designed to be an integrated coffee roasting, education and retail space. Starbucks will grow Starbucks Reserve from 800 to 1,500 stores worldwide by the end of fiscal 2015. Starbucks is on track to bring approximately 1,550 net new stores in fiscal 2014 and 1,600 net new stores in fiscal 2015, with nearly 300 net new company-operated US locations...Mattress Firm has agreed to acquire Sleep Train in a $425 million deal that will give the company more than 2,000 bedding specialty stores in 40 states. Sleep Train operates about 310 stores. Last month Mattress Firm agreed to buy Bedding Experts in a $60 million deal...Stein Mart is opening 6 new stores in fall 2014 as part of its store expansion plan that calls for 9 new locations in key growth markets, and seven relocations. The openings will bring the company's total US store count to more than 270...Krispy Kreme has signed a franchise agreement for 20 new Krispy Kreme shops in Southern Maryland, Washington, DC , Northern Virginia and nearby counties over the next several years. Krispy Kreme currently has over 260 US shops, of which approximately 160 are franchised...Ulta Beauty announced a five-year strategic plan that includes opening 100 stores annually. Ulta ended the quarter with 715 stores. ..Home décor retailer At Home hopes to expand to 600 US locations. It currently operates 75 stores that average of 120,000 s/f...Yum! Brands Inc. debuted Banh Shop, the first of two Vietnamese-inspired sandwich shops in the Dallas area which will serve Vietnamese banh mi sandwiches.