Federated’s Sale of Lord & Taylor Approaches
New York City, Federated Department Stores Inc. is close to signing a deal to sell its Lord & Taylor chain to private-equity player Apollo Real Estate Advisors and shopping center developer NRDC Real Estate Advisors for approximately $1.2 billion, according to a report by The Associated Press. The Wall Street Journal reported that the deal could be announced as early as this week, though it still requires a final nod from Federated.
Federated, which purchased Lord & Taylor when it acquired May Department Stores Co. last year, announced this past January that it was putting Lord & Taylor up for sale, opting instead to focus all expansion plans on the larger Macy’s and Bloomingdale’s chains. At the time, Federated said it would sell the 55-store Lord & Taylor chain as a whole operation.
Food Lion to Open New Format
Salisbury, N.C., Food Lion is opening three new stores in South Carolina that represent a new format for the company, according to a report by morningnewsbeat.com. The 35,000-sq.-ft. new format has an expanded natural and organic selection, a large wine department and offers products that meet some specific dietary needs of customers, such gluten-free and dairy-free items. The renovation also includes re-designed grocery aisles, new customer-service counters and checkout lanes and a new decor package, with new signs, graphics and colors and improved lighting. Food Lion also announced last week that it is unveiling fresh makeovers at 26 stores in the tri-state area of Virginia, Maryland and West Virginia. Each store will reopen June 21.
Rite Aid Rumored to Be Eying Eckerd
Harrisburg, Pa., According to a Credit Suisse analyst, Rite Aid Corp. could be considering a purchase of some of Jean Coutu Group Inc.’s Eckerd stores if the chain decides to divest the mid-Atlantic and southeastern U.S. units.
Analyst Edward Kelly estimates the probability of such a deal at 25%. Further deterioration of Longueuil, Quebec-based Jean Coutu’s financial situation could increase the odds, according to Kelly.
Although neither Jean Coutu or Rite Aid has responded to the speculation, Rite Aid has said it will participate in ongoing industry consolidation.
Kelly estimated that the 729 Eckerd stores could be sold for $700 to $800 million.