The Weekly Closeout: Layoffs at Walgreens and what would it mean if Nordstrom went private?

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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 L.L. Bean’s 2023 sales decline to Ikea’s new plant-based hot dog, here’s our closeout for the week.

What you may have missed

Guitar Center names chief merchandising and marketing officer

On Tuesday, musical instrument retailer Guitar Center announced that Kristin Shane is the company’s new executive vice president and chief merchandising and marketing officer. Shane will be responsible for product, promotions, visual merchandising, omnichannel experience and activations. Her new position is effective immediately.

Shane joins Guitar Center from PetSmart, where she was a senior vice president and chief merchandising officer. She also previously was merchandise manager for beauty and personal care at Target.

“My goal is to ensure that every interaction with Guitar Center is not just inspiring but also deeply resonates with our customers’ passion for music, setting new standards in retail excellence and customer satisfaction,” Shane said in an announcement.

Shane will report to CEO Gabe Dalporto, who took over the top spot late last year. 

L.L. Bean faces second year of declines in 2023

Sales at outdoor retailer L.L. Bean were “down slightly” in 2023, according to a press release emailed to Retail Dive. The retailer’s net revenue, which landed at $1.7 billion, was down about 5.6% based on the $1.8 billion L.L. Bean reported last year. Last year’s figures were down 1% year over year. As a private company, L.L. Bean isn’t required to release detailed financial data.

Two people sit in the back of a car with the trunk open.

Outerwear, sweaters and denim were all growth categories last year.

Courtesy of L.L. Bean

 

The result, which led to L.L. Bean’s third highest revenue mark, was good enough that the outdoor retailer granted its 5,600 employees a 9% bonus, 4% of which was a 401(k) contribution. Outerwear, sweaters and denim were all growth categories, and the retailer’s “Boat and Tote” bags — which drive the most new customers — grew demand by 31%.

“2023 was a challenging year across the outdoor specialty retail industry, and we were not immune to the headwinds,” L.L. Bean CEO Stephen Smith said in a statement. “However, we are encouraged by the return on our omnichannel investments and the momentum that has created.”

Last year, L.L. Bean opened four stores in North America, launched a French language e-commerce site aimed at Canadian shoppers and added its products to more than 100 new storefronts and e-commerce sites. Among the retailer’s new wholesale partnerships are Academy Sports and Outdoors, Dillard’s and Moosejaw.

Walgreens closes two distribution centers, impacting hundreds of employees

Walgreens on Sunday closed two distribution centers — one in Orlando, Florida, and the other in Dayville, Connecticut — impacting a total of 646 employees. 

“As Walgreens continues to work on solutions to help build business momentum and improve the efficiency of our operations, we have looked closely at our distribution center network, streamlining capacities wherever possible to best support our stores,” the company wrote in letters to both states as part of the Worker Adjustment and Retraining Notification Act. 

The company last fall paused on plans to expand micro-fulfillment centers and last summer closed an e-commerce distribution center in Illinois. Also last summer the company said it would close 150 stores in the U.S. and 300 in the U.K. as part of a cost-cutting effort that targets at least $800 million in savings this year.

Retail therapy

Hi-Chew wants to save chocolate bunnies this Easter

This Easter season, Hi-Chew is promoting its “Save a Chocolate Bunny, Eat Hi-Chew” campaign and its newest seasonal product, the Hi-Chew Bites Easter Egg. Hi-Chew Easter bunnies took to the neighborhoods of Manhattan on Tuesday to hand out classic Easter eggs filled with its candy to spread the campaign, according to a company press release.

Hi-Chew mascots outside a a display of  its Save a (Chocolate) Bunny, Eat HI-CHEW campaign for Easter

Hi-Chew is inviting customers to sign a pledge to save the chocolate bunnies this season.

Courtesy of Hi-Chew

 

Through March 25, Hi-Chew is giving up to 1,000 customers samples of the new candy and limited edition campaign merch, upon signing an online pledge to save the chocolate bunnies this season. 

Ikea to host baby shower for the U.S. arrival of plant-based hot dogs

Ikea’s plant-based version of its store cafeteria hot dog is now available in the U.S., according to a Tuesday press release sent to Retail Dive. The Plant Dog is made with rice protein, onion, apple, salt, pepper and a smokiness to give it a balanced taste and characteristic sausage flavor.

A brand image of Ikea's plant-based hotdog dressed and decorated for a baby shower.

Ikea is hosting a baby shower for the launch of its plant-based hot dog.

Courtesy of Ikea

 

To celebrate the food’s arrival, Ikea U.S.will host a Plant Dog Baby Shower-themed event at stores on April 11 from 4-8 p.m. The in-store event will allow shoppers to sample the plant-based hot dog, play games and more.

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