Today’s Tipsheet: Lowe’s to Buy Orchard Supply | Costco Cuts Off Iran | Big Lots Rebound?


“Lowe’s Agrees to Buy Orchard Supply Hardware” by Mattioli and Glazer at WSJ.  “Under the agreement, Lowe’s would acquire at least 60 of Orchard’s 91 stores, plus an option to buy the rest, the people said. They said Orchard is expected to propose the deal Monday in a Chapter 11 bankruptcy filing…The deal would helpLowe’s diversify into a smaller-box format, a strategy that other big-box retailers are trying as more sales move online. Orchard stores average 36,000 square feet of selling space, the people said. Lowe’s stores average about 113,000 square feet of selling space. Lowe’s plans to keep the Orchard name and operate the stores independently, one of the people said.”  Read more:


“Lowe’s Enters into Purchase Agreement with Orchard Supply Hardware” – Lowe’s Press Release.  “Lowe’s Companies, Inc. the world’s second largest home improvement retailer, today announced it has entered into an asset purchase agreement with Orchard Supply Hardware, under which Lowe’s will acquire the majority of Orchard’s assets for approximately $205 million in cash.”  Read more:


“New Sanctions Hit Iran: No Shopping at Costco” by Tom Gara at WSJ.  “A tightening noose of economic sanctions has been working to strangle the Iranian economy in recent years, as Western powers push the country to abandon its nuclear program. The effects have been felt at levels high and low, from raging inflation for food and basic goods to a 20% reduction in the capacity of the country’s oil industry.  And now, to add a small insult to a large economic injury, the country’s diplomats and overseas businesses are being cut off from Costco.  Read more:


“Wal-Mart de Mexico Puts Restaurant Business Up for Sale” at 4-Traders.  “Walmex shares barely moved on the news, with the market viewing the proposed sale as encouraging, but not spectacular.  “What people really want to see is for the stores’ sales numbers to improve month-to-month,” said Gerardo Roman, head trader at Mexican brokerage Actinver…During the first five months of the year, Walmex’s comparable store sales for Mexican outlets slipped 0.5% versus the same period of 2012.”  Read more:


“Big Lots may rebound as new CEO, sales moves take hold” at Reuters.  “Sales of the company, whose 1,505 U.S. stores are mainly located in strip malls, have been under pressure for the past two years from the weak economy and higher gasoline prices, the newspaper said.  But the arrival of the new CEO, David Campisi, and his 30 years of merchandizing experience, should help turn the tide, Barron’s said.”  Read more:


“Ernst & Young Announces Entrepreneur Of The Year® 2013 Award Winners in Upper Midwest”  “Ernst & Young LLP announces the Ernst & Young Entrepreneur Of The Year® 2013 Award winners in the Upper Midwest. The award recognizes outstanding high-growth entrepreneurs who demonstrate excellence and extraordinary success in such areas as innovation, financial performance and personal commitment to their businesses and communities.”  See the list:


“Wal-Mart: Is Reputation A Leading Indicator?” at Seeking Alpha.  “A company’s DNA is steadfast. Changes may occur that permeate strategy, store design, and earnings, but the inner-workings of a company depend upon a history of decisions that pave the way for the future.”  Read more:


“Dollar General Sued Over Use of Criminal Checks in Hiring” by Andrew Harris at Bloomberg.  ““People who have been convicted of crimes and have paid their ‘debt to society,’ eventually ought to have a fair shot in the job market — especially if the conviction was years earlier and had nothing to do with the job they seek,” John Rowe, director of the EEOC’s Chicago-area office, said in a statement announcing the lawsuit.”  Read more:


“The Problem With Mobile Advertising Isn’t Mobile. It’s Advertising” by Doug Stephens at Retail Prophet.  “And one can’t help but wonder why, if everything is truly going mobile, advertising on mobile devices remains so ineffective? How, if as studies suggest, we are almost never without our mobile devices, can advertising on those devices be so bad?”  Read more:


Thanks for reading…


Follow on Twitter @retaileyeretail