FTC clears way for merger between Men’s Wearhouse and Jos. A. Bank
New York — The Federal Trade Commission on Friday determined that the merger between Men’s Wearhouse and Jos. A. Bank does not violate antitrust laws. The commission had been conducting a detailed review of the proposed $1.8 billion deal.
The Men’s Wearhouse expects to close on its acquisition for Jos. A. Bank in the next 30 days after Men’s Wearhouse agreed to pay $65 a share for Jos. A. Bank earlier this year in a deal valued at $1.8 billion that will create a company with more than 1,700 stores and pro forma annual sales of $3.5 billion.
"Together, Men’s Wearhouse and Jos. A. Bank will have increased scale and breadth, and Jos. A. Bank’s strong brand and complementary business model will broaden our customer reach,” said Men’s Wearhouse president and CEO Doug Ewert. “Men’s Wearhouse shareholders will benefit from approximately $100 to $150 million of run-rate annual synergies realized over three years, through improving purchasing efficiencies, optimizing customer service and marketing practices, and streamlining duplicative corporate functions.”
Plans also call for Men’s Wearhouse to leverage its vertical direct sourcing model to improve combined merchandising and sourcing across the combined company and rationalize inventory over time.
Dollar General CEO: Keeping it simple is key to success
Goodlettsville, Tenn. — Keep it simple — that’s secret to Dollar General’s success Rick Dreiling, chairman and CEO of the 75-year-old company said at its shareholders annual meeting.
"Simple neighborhood stores, simple, frequently-needed items and everyday low prices," he said. "For 75 years, [Dollar General has focused] on helping low- and middle-income families save money and save time by offering quality, basic merchandise at affordable prices in convenient, small-box neighborhood stores."
Dollar General is the largest discounter with more than 11,000 locations across 40 states, Dreiling said, and the company will add some 700 new stores in 2014.
"We still have room to grow," Dreiling said. "We will continue to relocate, remodel and refresh our stores to build our brand and enhance our customer shopping experience."
In 2013, Dollar General’s net sales increased by 9.2% to $17.5 billion, Dreiling said. That represents $220 per square foot. Same-store sales grew 3.3%, marking the company’s 24th consecutive year of same-store sales growth.
Wal-Mart promotes Broader to new exec role in international division
Bentonville, Ark. — Wal-Mart Stores announced the promotion of Shelley Broader, currently president and CEO of Walmart Canada, to executive VP, president and CEO of Walmart EMEA, effective June 1. In her new role, she will lead Walmart’s retail operations and oversee business development in Europe, the Middle East, Sub-Saharan Africa and Canada and will report directly to David Cheesewright, president and CEO, Walmart International.
Wal-Mart will announce Broader’s successor at a later date. She will continue to have responsibility for the Canadian market — along with Europe, the Middle East and Sub-Saharan Africa — until her successor is in place.
Broader joined Walmart Canada as chief merchandising officer in December 2010 and was promoted to president and CEO of Walmart Canada in September 2011. She joined Walmart with more than 20 years of leadership experience across the North American retail industry, which included key leadership roles with retailers Michael’s and Hannaford Bros.
"Shelley has been a strong leader since joining Walmart Canada and is the ideal person to leverage the tremendous potential the EMEA region holds for our company," said Cheesewright. "Shelley’s leadership of our business in Canada during a time of increased competition underscores her knowledge of the retail environment which will serve her well in her new role."