Collective Brands to be acquired for $1.3 billion, broken up
New York — Shoe manufacturer Wolverine Worldwide Inc. announced Tuesday that it has partnered with equity firms Blum Capital Partners and Golden Gate Capital to acquire Payless ShoeSource parent Collective Brands Inc. for about $1.3 billion.
Upon closing later this year, Wolverine – parent of Merrell and Hush Puppies — will buy Collective’s unit that owns brands Keds, Saucony and Stride Rite, which as a group generated revenues in excess of $1 billion last year. The investment firms will jointly acquire the Payless ShoeSource chain and Collective Licensing International unit, which will operate as a single company. The pair had combined sales of over $2 billion last year.
Last August, Collective Brands had announced that it would close nearly 500 underperforming stores over three years and was examining its alternatives.
Office Depot swings to profit in Q1
Boca Raton, Fla. — Office Depot Inc. reported Tuesday that it swung to a profit of $41 million in the first quarter ended March 31, compared with a loss of $15 million in the same period last year.
Sales fell 3.4% to $2.87 billion, missing Wall Street’s expected $2.89 billion in revenue. Same-store sales at the office supply retailer’s North American stores decreased 6%, and total sales for the division dropped 8% to $1.2 billion, impacted by store closures and fewer selling days.
CVS/pharmacy debuts updated mobile app
Woonsocket, R.I. — CVS/pharmacy said Tuesday it has introduced an updated mobile app that allows shoppers to digitally store their ExtraCare card in their smartphone, eliminating the need to carry an ExtraCare card when shopping.
The CVS mobile app now allows members to scan the barcode on the back of their card or type in their account number manually. After the barcode is captured, customers’ smartphones will work just like ExtraCare cards at the register.
Available as a free download from Apple’s App Store or through Google Play, the CVS app also offers prescription management, mobile shopping, store locating services and access to the CVS/pharmacy weekly circular.
"During the past few months, we’ve significantly expanded the mobile options available to our digitally-minded customers with the goal of creating the most personalized and accessible shopping experience," said Rob Price, senior VP marketing and chief marketing officer for CVS/pharmacy.