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 consumers taking on an average of over $1,100 worth of holiday debt to Krispy Kreme’s Pop-Tart flavored doughnuts, here’s our closeout for the week.
What you may have missed
Big Lots closes deal to keep stores open
Discount retailer Big Lots confirmed at the start of this month that it has closed a deal that will enable the retailer to keep hundreds of locations open after filing for Chapter 11 bankruptcy.
The agreement with Gordon Brothers will allow Variety Wholesalers to acquire between 200 and 400 stores and up to two distribution centers. Variety Wholesalers is the parent of several discount retail banners, including Roses. Following the deal, it will continue to operate the acquired stores under the Big Lots banner.
Big Lots filed for bankruptcy in September and began closing sales at all of its stores in December after an earlier deal to sell to a private equity firm fell through. The new deal was announced days after the going-out-of-business sales began.
“This strategic acquisition allows us to serve additional customers and communities. We plan to combine the best of Variety with the best of Big Lots and are excited about the possibilities ahead,” Lisa Seigies, Variety Wholesalers’ CEO, said in a statement.
Book-A-Million names CFO
CFO Damian Doggett
Image courtesy of Books-A-Million
Books-A-Million on Wednesday announced the appointment of Damian Doggett as chief financial officer, where he will lead all aspects of the company’s financial operations. Doggett has been with the company since 2006 and held a variety of leadership positions within finance, according to a company announcement.
“I am pleased to announce Damian’s well-deserved promotion to CFO,” CEO Terrance Finley said in a statement. “His years of strong creative leadership, coupled with his dedication to addressing the evolving needs of our business make him uniquely qualified to lead our finance team and guide our financial strategy in the years ahead.”
Macy’s appoints Hermès vet to its board
Macy’s on Monday appointed Robert Chavez to its board of directors, effective April 1, according to a company announcement. Chavez most recently served as the CEO of Hermès Americas for nearly 25 years, where he oversaw operations in the U.S., Canada and Latin America.
Chavez launched his career in the Bloomingdale’s Executive Development program and went on to become a Macy’s divisional merchandising manager.
Retail Therapy
Reserve your table for date night at White Castle on Valentine’s Day
Courtesy of White Castle
Reservations opened on Monday for White Castle’s Valentine’s Day seating. The romantic tradition at the fast-food chain began in 1991. Over 300 White Castle locations are participating this year.
Couples can make their Feb. 14 reservation online at OpenTable, a restaurant reservation service. Reservations for tables are available from 4 p.m. to 9 p.m.
The Valentine’s Day deals at White Castle include a $5 Sloppy Joe combo with small fries and a soft drink, alongside a $6.99 Sloppy Joe six-pack. White Castle’s loyalty program, Craver Nation Rewards, also offers more discounts and freebies for Valentine’s Day.
Krispy Kreme announces Pop-Tart flavored doughnuts
Krispy Kreme released a Pop-Tarts doughnut box on Monday. The assortment of doughnuts incorporates Pop-Tarts flavors like frosted strawberry, frosted chocolatey fudge and frosted brown sugar cinnamon.
Courtesy of Krispy Kreme, Pop-Tarts
Select retailers will offer a six-pack box of the collection. The Krispy Kreme x Pop-Tarts Crazy Good Doughnuts collection is available individually and by the dozen in-shop, as well as for pickup and delivery through Krispy Kreme’s app and website.
What we’re still thinking about
$241.4B
That’s the total amount of online retail sales made between Nov. 1 and Dec. 31, marking an 8.7% year-over-year increase, according to figures released by Adobe Analytics. Those numbers were not adjusted for inflation.
Nearly 55% of online transactions were made on mobile devices during that period, up from 51.1% in the year-ago period.
Grocery and cosmetics represented the strongest categories of growth online this holiday season, growing 12.9% and 12.2%, respectively, per the report.
$1,181
That’s the average amount of debt consumers took on this holiday season, according to a December survey from LendingTree. That’s up from $1,028 during the 2023 holiday season.
While over a third of consumers took on holiday debt, only 44% intended to, per the report. By generation, millennials took on the most debt (42%) followed by Gen X (37%), Gen Z (34%) and baby boomers (29%).
Nearly two-thirds of consumers put purchases on credit cards, while 24% used store cards and 21% used buy now, pay later services.
What we’re watching
What’s next for Ulta
Ulta announced an unexpected leadership swap earlier this week, as Dave Kimbell retired on Monday and Chief Operating Officer Kecia Steelman was named to take his place. While the change keeps some consistency at the beauty retailer, seeing as Steelman has worked there since 2014, it is the second CEO change in just under four years and it does raise new questions about Ulta’s performance and what may change down the line.
As COO, Steelman has been leading Ulta’s shop-in-shop partnership with Target, and Piper Sandler analysts this week called her a “natural fit” to take over the CEO spot. But she also is taking the helm at a time of uncharacteristic weakness for Ulta, which has seen slowing growth and store expansion in recent months.
The beauty retailer has been challenged by increased competition in the space, namely from Sephora’s swift expansion of beauty shop-in-shops within Kohl’s stores, and is looking to grow its market share by increasing its wellness assortment and embracing newer beauty demographics like younger men.
While Kimbell largely held steady on the work former CEO Mary Dillon started, Dillon during her tenure was responsible for completely upending how the beauty world saw Ulta. Piper Sandler expects Steelman to keep investing in the initiatives Kimbell has, but only time will tell what new directions she could push Ulta toward.
