TJX Sells Bob’s Stores Division
Framingham, Mass. The TJX Cos. said Wednesday that it has sold Bob’s Stores to private-equity firms Versa Capital Management and Crystal Capital. Bob’s, which sells casual clothing and footwear for the entire family, has 34 stores throughout the Northeast. It is TJX’s smallest division.
Terms of the sale were not disclosed. TJX said the deal will result in a $15 million, or 3 cent-per-share charge, in the third quarter.
“While we continue to believe Bob’s Stores has great potential and an excellent organization, our decision to sell the business reflects our vision to grow TJX as a global, off-price company,” TJX president and chief executive Carol Meyrowitz said in a statement. “We believe that focusing on the significant opportunities to expand the domestic and international presence of our core, off-price concepts is the right strategy for us at this time.”
Bob’s had sales of approximately $310 million in 2007, or about 2% of TJX’s $18.6 billion total sales. Same-store sales grew about 5% during the last fiscal year. However, Bob’s operating loss was expected to grow this year, from a loss of $17.4 million to a loss of about $18 million, according to analysts.
Citigroup analyst Kimberly Greenberger told investors in a research note that the sale removes a “distraction” for TJX, according to the Associated Press.
“We believe TJX’s sale of Bob’s will help (management) maintain focus on its core off-price business model as Bob’s was the only non-off-price division in TJX’s portfolio of brands and was not a strategic fit in our view,” she wrote.
Costco offers promotions with LeverageCard.com
IRVINE, Calif. Costco has partnered with LeverageCard.com to allow consumers to buy Costco Membership Certificates online and then receive Costco promotions and coupon booklets.
Certificates purchased through LeverageCard.com can be used to renew, upgrade or register for a membership in any Costco store nationwide. The minimum purchase is $50 and for each certificate purchased, LeverageCard.com will send one complimentary coupon booklet, which includes coupons for free items and discounts on Costco staples, including fresh meat and bottled water, worth over $40.
“This relationship with Costco is a terrific step for us as we look to expand our gift card offerings and provide unique offers and savings to our users,” said Mark Edward Roberts, CEO and co-founder, Leverage. “We are proud to be working with Costco in a way that so dramatically enhances the customer experience for both Costco and Leverage shoppers.”
Consumers will also be able to exchange their purchased Costco Membership Certificates for other gift cards available on LeverageCard.com using the site’s signature swapping system.
Springs names senior account manager
ROCK HILL, S.C. Springs Creative Products Group has named Teri Thom as senior account manager. In this capacity, Thom’s responsibilities include sales and product development for Jo-Ann Stores, Target, Tractor Supply Company, Cracker Barrel, Scholastic, A.C. Moore and Books are Fun.
Before joining Springs Creative Products Group, Thom worked in merchandising and product development for Jo-Ann Stores in Hudson, Ohio. Prior to that, she served as a buyer for Dillard’s Department Stores and a store manager for The Gap.