Burlington adds CPG and Macy’s muscle to board
PepsiCo’s top marketer and a former top Macy’s executive are the newest members of off-price retailer Burlington Stores board of directors.
The operator of more than 500 stores expanded its board to eight members with the addition of Frank Cooper III, chief marketing officer, global consumer engagement for PepsiCo’s global beverages group, and William “Mac” McNamara, former chairman and CEO of Macy’s Midwest division.
“I am delighted to welcome Frank and Mac to the Burlington Stores board adding further strength and range to our board of directors,” said Burlington president, CEO and chairman Tom Kingsbury. “Frank’s proven track record in brand development and significant experience in digital and social media will be highly valuable to our company. Equally important is Mac’s deep knowledge of retail. Mac is a highly talented merchant and marketer demonstrated by his many accomplishments during his 30-year career at Federated/May Company.”
Kinsgbury added that Burlington will look to leverage the pair’s experience in its ongoing efforts to capitalize on an enhanced off-price operating model.
Cooper was elevated to his current role at PepsiCo in 2010 after previously serving as CMO of sparkling beverages for PepsiCo Americas Beverages. Prior to PepsiCo, Cooper served as vp of interactive marketing at America Online and also co-founded in 1998 Urban Box Office Networks. A Harvard Law School graduate, Cooper began his career at music labels such as Motown and Def Jam Records.
McNamara spent 30 years in the department store industry. He began his career at Filene’s, a division of May Department Stores, rising through the ranks of the merchandising organization. In 1995, he was promoted to lead all brand merchandising and private label product development for ladies sportswear. In 2000, he was promoted to vice chairman of May Department Stores and in 2005, upon completion of the merger between Federated and May, he became chairman and CEO of the company’s Midwest division. In 2008, McNamara became president of Macy’s Reinvent Strategies and served in that capacity through his retirement in 2009.
Family Dollar rejects Dollar General’s tender offer
Matthews, N.C. — The heated battle for Family Dollar Stores rages on, with Family Dollar on Wednesday rejecting a $9.1 billion takeover bid from rival Dollar General and reaffirming its support of its deal with Dollar Tree. Family Dollar also urged shareholders not to tender their shares to the competing chain.
Last week, after repeated rejections by Family Dollar, Dollar General went hostile with its bid and took the same offer, $80 per share, directly to investors. But in a statement on Wednesday, Family Dollar called Dollar General’s offer to buy shares directly from shareholders “illusory” because it would not actually purchase the shares unless the two companies reach an agreement.
“Our board of directors, with the assistance of outside advisors and consultants, reviewed all aspects of Dollar General’s tender offer and concluded unanimously that this highly conditional offer is illusory because, as Dollar General is well aware, the offer cannot close on the terms proposed,” stated Family Dollar chairman and CEO Howard Levine. “Tenders into the Dollar General Offer will be meaningless since there is no way that Dollar General can purchase shares that are tendered.”
In rejecting Dollar General’s latest offer, Family Dollar once again raised the concern that the deal with its rival would ultimately not close due to antitrust regulatory issues.
“There is a very real and material risk that the transaction proposed by Dollar General would fail to close, after a lengthy and disruptive review process,” Levine said. “Accordingly, our board has rejected Dollar General’s tender offer and reaffirmed its support of the transaction with Dollar Tree, which delivers attractive value in the form of immediate upfront cash and upside participation in a combined Dollar Tree-Family Dollar entity, as well as closing certainty.”
In July, Family Dollar accepted an $8.5 billion buyout offer from Dollar Tree. Family Dollar has steadfastly backed this lower bid, saying regulators are less likely to interfere over antitrust concerns.
Toys “R” Us seeks young fashionistas
Leading accessories retailer Claire’s plans to open 100 of its distinctive branded shops with thousands of products within Toys “R” Us stores worldwide by year end and alluded to the possibility of more locations to come.
The arrangement between Toys “R” Us and Claire’s follows what the companies described as a successful pilot program in Europe. Accordingly, most of the 100 Claire’s branded shops will be located in Toys “R” Us stores throughout Europe. However, there will be 12 locations in the U.S. open before year end, including two locations set to open this week at the company’s flagship Toys “R” Us and FAO Schwartz stores in New York. Additional U.S. locations scheduled to open by the end of October will be located in Murrieta, CA; Colorado Springs, CO; Jensen Beach, FL; Florence, KY; Waldorf, MD; Henderson, NV; Toledo, OH; Tulsa, OK; Philadelphia, PA; and Houston, TX.
Shoppers will be able to choose from thousands of products found in Claire's stand-alone stores, including a unique assortment of jewelry, headbands, hair and fashion accessories, jewelry holders, legwear and seasonal items. The new shops will feature distinctive purple Claire's signage, as well as gray fixturing coupled with moveable display floor racks. The two brands will support the launch with a cross-promotional program that includes targeted email marketing, social media and signage within participating Toys "R" Us stores.
"Claire's has long been a destination for young fashion-forward shoppers looking to find the most trend-right accessories, and we're delighted to bring their expertise to our tween business," said Antonio Urcelay, chairman and CEO of Toys “R” Us. "We continue to explore new concepts that bring fresh merchandising content and offerings to our Toys "R" Us customers around the world."
"We are excited to expand our Claire's global footprint to Toys"R"Us locations across the globe and expose new customers to our fashionable brand," said Beatrice Lafon, Claire’s CEO. "The Claire's shops in Toys "R" Us stores will offer consumers a constantly refreshed assortment of the hottest trending jewelry and accessories for which Claire's is known."
Toys “R” Us operates 877 stores in the U.S. and Canada and 710 international locations while Claire’s operates 3,114 stores.