Tuesday, July 18, 2017
National Retail News
Retail sales fell for the second straight month, according to the National Retail Federation. Sales slipped 0.1% in June after being unchanged in May. Sales in June were driven by online and other non-store sales. Building materials and furniture also reported gains, perhaps reflecting a stronger housing market. The US Commerce Department said June retail sales fell 0.2%, weighed down by declines in receipts at service stations, clothing stores and supermarkets. Among retailers still reporting monthly sales, L Brands was down 9.0% and Costco was up 6.0%. See our sales reports below...Walgreens Boots Alliance has announced a new Rite Aid deal, effectively ending its nearly two-year quest to acquire the chain. The divestiture agreement with Fred’s Pharmacy, whereby Fred’s would buy 865 stores, is also terminated. The move comes after Walgreens struggled to win FTC approval of the deal. Under the new agreement, Walgreens will acquire 2,186 of Rite Aid’s 4,523 stores and 3 distribution centers for $5.175 billion in cash. Rite Aid will receive a $325 million termination fee. The 2,186 stores included in the new agreement are primarily located in the Northeast, Mid-Atlantic and Southeast. Under the terms of the agreement, Rite Aid will provide certain transition services to Walgreens for up to three years after the closing, which is expected to occur within the next six months. Upon closing, Walgreens will begin acquiring the Rite Aid stores and related assets on a phased basis over roughly six months, and convert acquired stores to the Walgreens brand over time.