News

Krispy Kreme acquired in billion dollar deal

BY Marianne Wilson

A company that achieved global fame for its simple glazed doughnuts has been acquired by the owners of a growing coffee empire.

Krispy Kreme Doughnuts has agreed to be acquired by JAB Beech Inc., a unit of German investment firm JAB Holding Company, for about $1.35 billion. The deal, which would take Krispy Kreme private, is the most recent in a string of purchases by JAB Holdings, including its acquisition in late 2015 of single-serve coffee maker Keurig Green Mountain.

JAB also has controlling stakes in other coffee companies, including Peet’s Coffee & Tea and Caribou Coffee, , Espresso House and Baresso Coffee. In addition, the company has controlling states in Einstein Noah Restaurant Group, the luxury shoe brand Jimmy Choo, and Coty Inc.

Under the terms of the arrangement, Krispy Kreme will continue to be independently operated from its current headquarters in Winston-Salem, N.C.

“JAB’s experience and industry knowledge make them the ideal partner to help grow the iconic Krispy Kreme brand throughout the world,” said Tony Thompson, CEO of Krispy Kreme, which operates more than 1,100 Krispy Kreme shops around the world.

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DESIGN/CONSTRUCTION

Nautica gets back to its roots

BY Marianne Wilson

New York City-based lifestyle apparel retailer, Nautica, a division of VF Corp., has opened a flagship in Manhattan, in the SoHo neighborhood.

The 2,000-sq.-ft. store opening embodies the brand's refreshed marketing and design strategy which celebrates the company’s roots as well as its established nautical heritage.

"We are thrilled to open the doors to the Nautica flagship store in one of the world's top shopping destinations. It is exciting for our brand and consumers to have a retail location in the city that we have called home for over 30 years," said Karen Murray, president of Nautica.

The new store features reimagined nautical environment with references to a modern cityscape—the energy of the city and essence of the sea provided inspiration for the sophisticated, boutique-style store environment.

Nautical references can be found throughout the 2,000 square foot space, with signature design features such as wooden beams made of natural oak wood to capture the essence of a boat and the architecture of the city.

An in-store design element, "The Style Bar," offers a selection of the season's key pieces in a curated presentation where customers can explore new styles. Digital tablets are available and equipped with editorial look books where shoppers can browse head-to-toe styled looks for inspiration.

The store also offers custom tailoring and same day home delivery in Manhattan for all online and in-store purchases.

Nautica operates 244 full price Nautica stores and more than 3,000 Nautica branded shop-in-shops worldwide. In 2003, the company was acquired by VF Corporation.

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TENANT UPDATE

Pat Catan opens its first store under ownership of Michaels

BY Marianne Wilson

Michaels Companies will unveil a 26,500-sq.-ft. Pat Catan’s Crafts and Floral store on May 13 – the first opening since Michaels acquired Pat Catan’s parent company earlier this year.

Michaels acquired Pat Catan’s parent company, Lamrite West, Inc., on February 2, for $150 million. The store opening scheduled for May 13 in Norwalk, Ohio, is the first to occur since the acquisition of Strongsville, Ohio-based Lamrite, operator of 32 Pat Catan’s stores.

At 26,500 sq. ft., the new Pat Catan’s store is smaller than the company’s average store size of 32,000 sq. ft. and considerably smaller than other locations the company has opened recently. For example, on January 21, a Pat Catan’s store that opened in Delaware, Ohio, measured 33,000 sq. ft. and last October new stores in Austintown and Oregon, Ohio were 49,000 square feet. The typical Michaels store is about 18,000 sq. ft.

Michaels has indicated that it expects expect Lamrite to generate $225-250 million in revenues, which includes both Darice and Pat Catan’s stores, but did not disclose the number of new Pat Catan stores it expects to open. Rather, Michaels has indicated it plans to open 43 Michaels stores this year, a figure which includes 13 relocations. The company also plans to close 10 Michaels stores and 10 of its Aaron Brothers stores.

Over time, Michaels maintains that its internal real estate and market penetration study shows the combined U.S. and Canadian markets can support approximately 1,500 Michaels stores, but that analysis was done prior to the acquisition of Lamrite, which is also a wholesaler of arts and crafts in addition to operating the Pat Catan’s stores. Michaels has said “the acquisition is expected to enhance our private brand development capabilities, accelerate our direct sourcing initiatives and strengthen our business-to-business capabilities.”

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