Never a shortage of retail developments to comment on it seems. Today, looking at Walmart’s news that it will need to raise prices because of the Trumpian Tariff Disaster, Dick’s buying Foot Locker (for some reason that remains to be seen), Canadian Tire keeping the Bay brand in Canada and Wayfair’s hat trick. So it goes…
Walmart Pricing: So when Walmart says something is going on to make them raise their prices, that should really get America’s attention about how destructive the Trumpian Tariffs are on consumers and the economy. And in typical Donaldese, he told Walmart they should “eat” the added costs. Imagine if something came along to raise the costs of his crypto/hotel/golf course/assorted crap businesses and someone told him to just suck it up and make less money. I don’t think that would go over very well.
Dick’s Buying Foot Locker: Have to admit, this one stymies me right now. Dick’s has been one of the best retailing companies in America, doing lots of things right. On the surface this deal doesn’t seem to make an enormous amount of sense, not sure why they want a larger footprint (pun intended) in the sneaker and footwear business given that they already have a pretty large presence in the sector. Given Dick’s track record, will have to give them the benefit of the doubt right now. Longer term, I remain skeptical.
Canadian Tire Buying HBC Assets: In a way this is poetic, the seemingly largest general merchandise retailer in Canada buying the IP and branding scraps of what is the most iconic brand in the country. They didn’t pay a lot for them and they will probably make their money back just on selling those striped blankets: whether they actually open Bay stores is iffy. We’ve seen a lot of great brands die slow and painful deaths with very few of them being resurrected. Not sure where HBC will end up on this scale.
Wayfair Sets Third Big Store: With one store in the Chicago market and a second recently announced for Atlanta to open next year, the big online home furnishings retailer said it will open a third, in 2027, in Westchester County north of New York City. Good to see them moving forward on stores, it’s really the only way they will actually become profitable. But getting there at one store a year is going to take forever to get the necessary physical presence they will need. But at least it’s a start.
Monday…Monday…you can find me posting all the time….
WarrensReport 