Former Target exec to head up grocery chain
Houston-based Fiesta Mart has appointed a retail veteran as its new chief executive.
The Hispanic grocery store chain named Sid Keswani as CEO, effective August 9, 2017. He replaced outgoing chief executive Mike Byars.
Keswani previously served 19 years at Target Corp., rising to the rank of senior VP. He went on to serve as senior VP of operations for Susser Holdings, which operates over 625 convenience stores. While at Susser, Keswani helped add over 125 additional stores to the portfolio via acquisitions and new store growth in just 18 months. For the past three years, Keswani served as the COO of Aspen Heights, a real estate development firm in Austin, Texas.
“We are very excited that Sid is joining Fiesta at this time in our growth strategy,” Ken Brotman, managing partner at ACON Investments, said in a statement. “He brings a great deal of relevant experience and skills to Fiesta as we look forward to our next phase of growth.”
Fiesta Mart operates 68 stores in the Houston, Austin and Dallas-Fort Worth markets. The company is owned by private equity firm Acon Investments, which acquired it from Fiesta's family owners in April 2015.
Birchbox on block?
Online subscription beauty retailer Birchbox may be looking to sell itself.
The company has been discussing a potential sale with several retailers, including Walmart, reported Recode. If the discounter were to acquire Birchbox, it would be the chain's fifth e-commerce acquisition since last August.
Birchbox has raised more than $80 million from investors since it was founded in 2010, in addition to previously undisclosed venture debt that the startup secured in 2015, according to Recode. Although the debt is coming due in early 2018, Birchbox has multiple offers on the table to restructure it, which is expected to alleviate any pressure to sell.
In addition to its e-commerce site, Birchbox operates two stores, one in New York City's SoHo neighborhood, and another in Paris, which it opened in spring 2018.
The discussions of a sale come as Birchbox has been working to right its business this year following a rough 2016 that included two rounds of layoffs, Recode said.
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Analyst: Amazon stock to hit $1,275 per share in 2018
Amazon is the "best long-term growth story available to investors today." But don't expect the company to generate meaningful profits anytime soon.
That's according to MKM Partners managing director Rob Sanderson who, on Tuesday, raised his price target on the online giant's stock to $1,275 per share, up from $1,095.
"We think investors will continue to be supportive of aggressive spending because: (1) retail and computing end-markets are massive and still appear untapped, (2) Amazon has dominant position as a disruptor, (3) the reallocation of value in these ecosystems to Amazon’s favor is tangible to investors and (4) investor confidence in management execution is as good as we have ever seen," wrote Sanderson.
In his note, Sanderson said that subscription revenue growth, a proxy for Prime adoption, grew by over 50% again in Amazon's second quarter. Also, usage of core Amazon Web Services (AWS) is accelerating.
Major investment areas for Amazon are expansion of its fulfillment network, AWS capacity and driving Prime memberships, including video.
Sanderson advised that Amazon has never been valued on near-term profit and likely won’t be until investors can see a limit on growth opportunities.
"Until then, we think revenue growth and share gain will matter more than profitability," he stated. "We do not expect Amazon will generate meaningful profits anytime soon. The company should be managed for profits until growth opportunities become more limited or more risky, in our view."