News Briefs

The Kroger Company is getting out of the specialty pharmacy business. 

The grocery giant said it has entered a definitive agreement to sell its specialty pharmacy unit to CarelonRx, a unit of U.S. health insurer Elevance Health. The financial terms of the transaction were not disclosed, but it is not expected have an effect on Kroger’s full-year financial outlook, the company said.

Kroger’s specialty pharmacy business serves patients with chronic illnesses that require complex care, including rheumatoid arthritis, growth hormone deficiencies, multiple sclerosis and bleeding disorders. It is separate from the chain’s in-store pharmacies and The Little Clinics, which are not part of the deal.

"As part of our regular review of assets, it became clear that our strong specialty pharmacy business unit will better meet its full potential outside of our business,” said Colleen Lindholz, president of Kroger Health. “One of the most important considerations was continued operations to ensure minimal disruption to our associates and patients. We are confident this transaction will help the business to grow and deliver better results for patients."

The sale is not connected to Kroger’s proposed merger with Albertsons, reported by MarketWatch. In February, the FTC  issued an administrative complaint and authorized a lawsuit in federal court to block the merger.

The deal, subject to customary closing conditions and regulatory approvals, is expected to close in the second half of 2024. It is not expected to impact Kroger's 2024 fiscal forecasts.

RBC Capital Markets, LLC is serving as financial advisor and Weil, Gotshal & Manges LLP and Arnold & Porter Kaye Scholer LLP are serving as legal advisors to Kroger.

Baskin-Robbins has added a new feature to its mobile app to bolster convenience for its customers.

Customers nationwide can now order ice cream, sundaes, beverages and more through the BR App, with items ready for pickup in as little as 15 minutes. First launched in 2016, the BR allowed customers to access coupons and promotions. Now, customers can order ahead and pick up their items in store.

“When we set out to evolve the BR App experience, we kept digital convenience and guest feedback top-of-mind,” said Nicole Boutwell, senior director of customer marketing & brand experience at Baskin-Robbins. “With these expanded capabilities to our app, guests can enjoy their favorites faster and unlock new ways to celebrate all of life’s moments with ice cream.”

To promote the new feature, customers can save $3 on an order of $10 or more, available for all registered app users through May 17 with promo code TASTY at checkout.

Founded in 1945, Baskin-Robbins, known for its 32 flavors of ice cream, operates more than 7,700 retail shops in 33 global markets.

Fossil Group is on the hunt for a new chief executive.

The struggling watchmaker said that Kosta N. Kartsotis is stepping down as CEO and board member, effective immediately. To ensure a seamless transition, he will remain with Fossil in a transitional role until September 2024. After that, Kartsotis, who had led the company for nearly 25 years, will provide consulting services to the company until September 2025. 

Jeffrey N. Boyer, executive VP and COO since April 2021, has been appointed as interim CEO and as a board member. The board has retained an executive search firm to identify a permanent CEO and will consider both internal and external candidates. 

The leadership shakeup comes as Fossil continues to struggle. The news of the change was included in the company’s fourth quarter and full-year results. For the year, sales fell 16% to $1.4 billion and net losses totaled $157 million. The company also announced a strategic review of its current business model and capital structure. 

Kevin Mansell, lead independent director, has been appointed as chairman, effective immediately. Mansell, who was elected to the board in May 2019, has over 40 years of retail industry experience, most recently serving as chairman, CEO and president of Kohl’s Corp. until his retirement in May 2018. 

“On behalf of the entire board, I thank Kosta for his unwavering commitment and leadership to Fossil,” stated Mansell. “We have great confidence in Jeff to guide the company through this period of transition as we undergo a strategic review, continue to advance our Transform and Grow Plan and pursue our search for the company’s next CEO in our effort to create long-term value for our stockholders.”

The Body Shop has shut down all of its U.S.-based operations.

The global natural beauty and skincare products retailer has filed for Chapter 7 bankruptcy protection in court documents filed with the U.S. Bankruptcy Court for the Southern District of New York. The U.S. operation has assets of between $50 million and $100 million, and liabilities of between $10 million and $50 million, the court documents revealed.

Earlier this month, the Canadian subsidiary of the Body Shop announced it has started restructuring proceedings by filing a Notice of Intention (NOI) to Make a Proposal pursuant to the Bankruptcy and Insolvency Act (Canada). While all of Body Shop Canada’s 105 store remain open for business, the retailer has identified 33 stores it will close in the “near term,” with liquidation sales already underway. 
 
In the same release, the company said that, as of March 1, 2024, The Body Shop US Limited has ceased operations.

The move comes after The Body Shop was acquired by a private equity firm, which put its U.K. business on the selling block in February. According to a report by WWD,  the retailer plans to close 75 stores across the U.K., leaving it with 116 stores.

Global architecture and design firm MG2 has expanded its offerings.

The firm has launched MG2 Advisory, a new service designed to provide strategy and insights to empower emerging and established DTC retail brands, national retailers and mixed-use developers working with retail tenants. MG2 principal and retail strategist Melissa Gonzalez leveraged her early years on Wall Street with trend-setting retail experiences and proprietary consumer insights research to develop the new service.

MG2 Advisory is an outgrowth of services that the company has provided to a select number of design clients for many years. Now also available as a standalone offering, Advisory provides clients with the added benefit of a library of consumer insights reports and years of proprietary research.

Combining hands-on, tactical project experience, industry knowledge, and established positioning as thought leaders, MG2 Advisory will support clients at all stages of the project lifecycle and provides customized solutions based on their distinct needs and goals.

A proprietary model serves as the foundation for every project and partnership, with a holistic, four-stage methodology exploring the sociological, psychological, and emotional needs of target personas. The process is designed to clients unlock competitive differentiation and uncover new ways to elevate and reimagine brand experience and environmental design.

“Our four-step approach does more than provide solutions to specific, agreed-upon objectives but also uncovers additional opportunities for brand positioning and differentiation as well as future iteration and optimization," said Gonzalez.

It’s only March, but Wawa is already thinking summer.

The convenience-store chain has launched  hiring efforts for the summer season with the goal of hiring close to 1,500 new employees for roles at Wawa stores from the New Jersey Shore to the beaches of Delaware, Maryland and Virginia.  With more than 60 stores located in those areas preparing for the summer season, the recruiting campaign will continue through the summer season. 

The annual employment effort is focused primarily on filling the seasonal jobs needed to support summer store operations and bolster Wawa’s growing family of associates. 

“It’s never too early to start planning for summer and that includes lining up seasonal work while spending time at the beach or shore,” said Maria Kalogredis, chief people officer, Wawa. “We have many associates that start with us during the summer and enjoy their experience so much that they stay with us and go on to soar to new heights in their careers.” 

In February, the retailer announced plans to open more than 70 new stores in 2024. The openings will include Wawa’s first locations in three new states: Alabama, Georgia and North Carolina. 

The privately held Wawa operates nearly 1,000 locations throughout Pennsylvania, Delaware, New Jersey, Maryland, Virginia, Florida and Washington, D.C. It has more than 40,000 employees.