Today in retail news, Pinterest inked an agreement to buy eCommerce fashion retailer THE YES for its social media platform, while Walmart announced it is building four new fulfillment centers to improve delivery speeds. Plus, Kohl’s has two new contenders placing bids to buy out the department store retailer, and Grubhub is introducing a new Meals for Deals incentive program in partnership with Street Cred Capital.
Kohl’s Gets 2 Competing Takeover Bids
Kohl’s has been the recipient of takeover bids from private equity firm Sycamore Partners and Franchise Group, a retail holding company.
Sycamore will value the department store chain at around the mid-$50s a share, with Franchise Group offering around $60. Kohl’s closed Thursday at $41.18.
The Kohl’s board, while short on the details of the bids, will be looking into them. However, there’s no guarantee that the board will be receptive. Any deal would likely still be several weeks away.
Street Cred Capital, Grubhub Start Sales Incentive for Mobile Carrier Workers
Street Cred Capital, which provides lending solutions for mobile companies, will be working with Grubhub on a new incentive program for mobile carriers.
The Meals for Deals program will add incentives for mobile carriers for sales performances, with sales goals being rewarded with meal credits.
Street Cred Capital will work alongside mobile carriers and merchants on collecting sales data reports every month, per the release. From there, it will give a tiered reward list to incentivize the best sellers.
Street Cred Capital plans to issue Grubhub meal credits for employees who have gotten to those tiers every month. This will help with Grubhub’s usual corporate offering, letting employees access a daily or weekly stipend via credit.
Lululemon Trumpets ‘Strong Start’ to 2022
Despite supply chain issues, inflation and the ongoing impact of COVID-19, apparel retailer Lululemon said it began the year on a strong note as it continues its five-year growth plan.
“While we are not immune to these challenges, our omni operating model, balanced growth strategy, and unique approach toward innovation enable the positive results we are reporting today and anticipate for the full year,” CFO Meghan Frank said Thursday (June 2).
The Canadian company’s earnings report showed a 32% increase in revenue in North America and 29% internationally. The report also said direct-to-consumer revenue rose by 32%, and accounted for 45% of the company’s total net revenue, versus 44% in the first quarter of 2021.
“In the first quarter of 2022, continued momentum in the business enabled us to achieve a strong start to the year,” said Calvin McDonald, Lululemon’s CEO. “These results provide a solid foundation as we begin our next five-year journey and deliver against our new Power of Three ×2 growth plan.”
Pinterest to Acquire Online Fashion Retailer THE YES
Pinterest took another step toward its goal of becoming more commerce-focused with an agreement to buy THE YES, an online fashion shopping platform.
“With hundreds of brand merchants on its platform, the team at THE YES has built an extensive fashion taxonomy that uses human expertise and machine learning to power a comprehensive algorithm in fashion,” the social media platform said on its website. “THE YES’s brand relationships and shopping expertise can potentially be applied to other categories on Pinterest such as home, beauty and food.”
Founded in 2018 by CEO Julie Bornstein and CTO Amit Aggarwal, THE YES has scaled over the years to offer users personalized daily shopping feeds that learns their tastes as they buy from merchants.
Walmart Intros 4 Next-Gen Fulfilment Centers
Walmart is opening four new next-generation fulfillment centers with high-tech capabilities using a combination of people, robotics and machine learning. The move is to ensure that the retail giant can continue cranking out orders to consumer fast, whether in-store, pick-up or delivery.
The first of the new centers will open this summer in Joliet, Illinois, 45 miles southeast of Chicago. Walmart leased a 1.1 million-square-foot complex at 3501 Brandon Road owned by CenterPoint Properties.
Walmart also has a 1.6 million-square-foot distribution center in Elwood, Illinois and a 1 million-square-foot building in Spring Valley, Illinois, according to a Friday (June 3) press release.
In the spring of 2023, Walmart is planning a next-gen warehouse facility in McCordsville, Indiana, and in 2024, another will open in Greencastle, Pennsylvania.