TOP NEWS
* Bon-Ton Stores Inc. filed voluntary Chapter 11 petitions in U.S. Bankruptcy Court in Delaware to restructure its debt and explore potential strategic alternatives, which may include a sale of the company or parts of it under a reorganization plan. As expected, the U.S. department store chain received a commitment from its existing ABL lenders for up to $725 million in debtor-in-possession financing, subject to court approval, allowing Bon-Ton to continue operating during the financial restructuring process.
* Australian retail giant Wesfarmers Ltd. flagged A$1.26 billion worth of write-downs and impairment charges ahead of its fiscal first-half earnings report, amid worsening performances at its Bunnings U.K. and Ireland unit as well as the Target chain in Australia. Most of the hit will come from an impairment charge of A$795 million, followed by write-downs totaling A$158 million against Bunnings U.K. and Ireland.
E-COMMERCE
* Chinese conglomerate Dalian Wanda will sell a 13% stake in its multiplex unit Wanda Film Holdings to e-commerce giant Alibaba Group Holding Ltd. and state-held Cultural Investment Holdings for a total of $1.24 billion, Variety reported. Alibaba reportedly will pay $744 million for a slightly larger share of Wanda Film, which also operates a film production and distribution business.
* Tmall, the luxury goods portal of Chinese online retailer Alibaba Group Holding Ltd. partnered with mall operator Intime Retail (Group) Co. Ltd. to launch a washroom for women that features augmented-reality-powered screens and a vending machine for upscale products. The smart ladies' room was opened to the public at the West Lake Intime Shopping Mall in Hangzhou in the week of Jan. 29, with a similar space undergoing renovations in the city's Wulin Intime store.
HOUSEHOLD AND PERSONAL PRODUCTS
* Brazil's Natura Cosméticos SA aims to double the 2018 earnings of the U.K. label The Body Shop after acquiring the brand from cosmetics rival L'Oréal SA in 2017, the Financial Times reported, citing CEO Roberto Marques. The South American company reportedly will also launch on Feb. 5 a new corporate brand called Natura &Co., which will house several of its brands, including The Body Shop and Aesop, in a bid to drive global sales and expand market reach.
* Fabrizio Freda, president and CEO of The Estée Lauder Cos. Inc., signaled that the manufacturer of personal products may be looking at some small cosmetics companies in which it already has investments as it considers its M&A strategy for 2018. During a call with analysts, Executive Vice President and CFO Tracey Travis also said the company feels "very good" about its current brand portfolio but indicated that the New York-based company remains open to striking deals, including acquisitions.
FOOD AND STAPLES RETAILING
* Supermarket chain operator Kroger Co. will launch Scan, Bag, Go, a service that allows shoppers to scan and bag their purchases for a quicker checkout experience, in nearly 30 of its Ralphs stores in 2018. Customers will need to make their payments through a self-checkout area but will be able to download digital coupons and keep track of their shopping cart through an app, which also will enable payments soon.
HYPERMARKETS AND SUPERCENTERS
* Walmart Inc. is a logical buyer for Blue Apron Inc., the meal kit company that has seen its stock price plummet since going public in 2017, Gabelli & Co. analyst Matthew Trusz said in a note initiating coverage of Blue Apron. The big-box retailer could put Blue Apron's product on its shelves, easing some of the company's "well-publicized operational issues," by providing scale and a cheaper way of getting the meal kits to customers, Trusz wrote in his note. Wal-Mart declined to comment on the note or a potential Blue Apron acquisition.
HOUSEHOLD DURABLES AND SPECIALTY RETAIL
* Japanese electronics manufacturer Panasonic Corp. plans to sell online only air conditioners under its Sanyo brand during the summer season in India, The Economic Times of India reported, citing country president and CEO Manish Sharma. The company, which landed a contract to supply 60,000 air-conditioning units to India's Energy Efficiency Services, will reportedly seek to market Sanyo in the country as a "niche brand" for the youth with a "value for money" appeal.
* South Korean consumer electronics giant LG Electronics Inc. started a program Feb. 1 to cut weekly working hours to 52 in some of its home entertainment divisions, with plans to expand the initiative to other segments, Yonhap News Agency reported. It did not say how many hours employees currently work. LG is reportedly the latest South Korean company to slash its weekly working hours. Shinsegae International Co. Ltd. in January reduced its weekly hours to 35.
* South African retailer Steinhoff International Holdings NV said that Thierry Guilbert resigned with immediate effect from its supervisory board to focus on his "other executive commitments." The company, which operates home furnishings chains Sleepy's, Poundland and Conforama, said in a separate release that it will seek waivers from its creditors so that it has breathing space to develop strategic options and management can focus on trading performance.
INDUSTRY NEWS
* Employment in the U.S. retail industry rose by 11,100 jobs month over month in January as increased consumer spending during the holiday season drove additional recruitment, the National Retail Federation said, citing data from the labor department. Clothing and clothing accessories stores contributed the most, adding a total of 15,100 jobs, while sporting goods stores recorded losses of 6,300, the organization said.
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