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It’s been another week with far more retail news than there is time in the day. Below, we break down some things you may have missed during the week and what we’re still thinking about.
From Sam’s Club’s goal of growing membership “not tethered to a physical club,” to Justice celebrating Pac-Man’s 45th anniversary, here’s our closeout for the week.
What you may have missed
JD Sports says it is now bigger than Foot Locker in North America
“We are in regular dialogue with our brand partners but it is too early to comment on the potential sector impact,” the retailer said Wednesday.
The macroeconomic environment aside, JD Sports ended its last fiscal year on a high note, with 5.8% organic revenue growth. In North America, the group’s revenue grew 7.5% and CEO Regis Schultz said the company is now “bigger than Foot Locker” in the region this year. In addition to JD, the company in North America also runs Finish Line, Shoe Palace, DTLR and Hibbett.
The acquisitions JD Sports has made in the past year, including U.S.-based Hibbett, should add 10% to the brand’s revenue in the upcoming fiscal year. JD Sports plans to open 150 new stores in the year ahead, relocate or convert 100 locations and shutter about 50, the latter mostly in Eastern Europe.
Scentbird partners with Neiman Marcus
Fragrance subscription service Scentbird announced a collaboration with Neiman Marcus. The luxury department store has curated 30 fragrances in its “Neiman’s Select” collection, according to an announcement.
Scentbird subscribers will have access to the assortment in 8 ml travel sizes. Brands represented include Montale, Mancera, Thameen London, Vilhelm Parfumerie and Fragrance du Bois, among others. Every purchase comes with a complimentary case, and Scentbird offers a way to purchase full-sized bottles directly from the collection on the Neiman Marcus website.
“Sharing similar Midwestern roots, we appreciate the sense of community and culture that defines Fargo and trust that our wide selection of premium brands and exceptional service will appeal to shoppers across the region,” President Jim von Maur said in a statement.
The company is going through a $100 million renovation of its existing stores in the coming years. Von Maur Department Stores was founded in 1872 in Davenport, Iowa.
Retail therapy
Justice powers up for Pac-Man
Tween brand Justice is releasing a Pac-Man collection. The collaboration with Bandai Namco Entertainment America is launching in time for the summer and coincides with the game’s 45th anniversary.
The line of swimwear, clothes, backpacks and more is available exclusively at Walmart stores nationwide and on Walmart’s website. The limited-edition collection also includes a varsity jacket, trucker hat and crossbody bag.
Ranch lovers, unite!
Hidden Valley Ranch launched seven new flavors with redesigned bottles. The brand’s new ranch offerings include blue cheese, cajun blackened, cilantro lime, cracked pepper and sweet barbecue. New seasonings include garlic ranch and creamy jalapeno ranch.
The redesigned packaging includes an improved flow control cap and inverted easy-squeeze bottle. Kickin' Cajun Blackened Ranch is available exclusively at Kroger while the blue cheese, sweet barbecue and cracked pepper ranches are only at Walmart.
What we’re still thinking about
40%
That’s how many Sam’s Club transactions come from its digital channels, including Scan & Go and its website, according to a Wednesday company announcement tied to Walmart’s investor day. The company said Sam’s Club will use enterprise platforms, like its fulfillment network, to expand its e-commerce presence and “grow membership not tethered to a physical club.”
Membership income at Sam’s Club was also up 22% over the past two years, while tenured membership was above 90%. By demographic, the club retailer is resonating with younger consumers, with Gen Z and millennial shoppers making up more than half of its new members.
The retailer will also continue building out its footprint, building on plans announced in January 2023 to open 30 new clubs. Every year after that, Sam’s Club anticipates opening 15 new clubs for the foreseeable future.
Newman steps into the role May 12 and joins the health-focused retailer from UPS where he also served as CFO.
Tom Cowhey, who took the CFO role at CVS just last year, will become a strategic adviser to CEO David Joyner in May.
What we’re watching
Rite Aid reportedly contemplating bankruptcy again, less than a year after exiting its last one
Rite Aid, which exited bankruptcy court only in September, may be headed toward Chapter 22. The drugstore retailer is once again contemplating bankruptcy and attempting to sell itself, according to The Wall Street Journal, citing “people familiar with the matter.” Rite Aid didn't immediately respond to a request for comment on the matter.
The company filed Chapter 11 in the fall of 2023 and closed hundreds of stores, emerging seven months ago as a private company, with about $2 billion less debt plus some $2.5 billion in exit financing. The company now runs over 1,200 stores in the U.S., but may need to close more locations, per the Journal’s report. The chain has struggled for years, and two attempts at mergers in recent years — with rival Walgreens, then grocery chain Albertsons — failed. U.S. drugstore chains have generally focused on healthcare operations in recent years and have long offered lackluster retail experiences.
