Whole Foods Ends Sale of Henry’s, Sun Harvest Stores
Austin, Texas, Whole Foods Market completed the previously announced sale of all 35 Henry’s Farmers Markets and Sun Harvest Markets locations, and a related Riverside, Calif. distribution center to a wholly owned subsidiary of Smart & Final, a Los Angeles-based food retailer.
All of the Henry’s stores are located in California and all of the Sun Harvest stores are located in Texas. These assets were acquired by the company as part of the Aug. 31 purchase of Wild Oats Markets.
The company reported receiving proceeds of approximately $166 million for the net assets of these stores, consisting primarily of leases, fixed assets and inventory.
Additionally, Whole Foods and Smart & Final entered into a support agreement under which Whole Foods will continue to provide certain products and services for the 35 stores for up to two years. Whole Foods anticipates that the revenue associated with the agreement will be approximately equal to its incremental cost of providing the support.
Walgreen’s 4Q Drops
CHICAGO One of the nation’s biggest drug store chain operators announced that its fourth-quarter profit dropped nearly 4%, according to Monday’s reports.
Walgreens explained that because of lower reimbursements for popular generic drugs and increased store and staff costs, their net income tumbled.
According to the company’s earnings report, total expenses increased by more than 11% to $12.8 billion, which chairman Jeffrey Rein said was out of line with reimbursements the company received. Prescription sales accounted for nearly two-thirds of the company’s business.
“Managing both expenses and lower reimbursements on some generic drugs is my top priority,” he said in a company release. “We’re going to fix this, and at the same time continue our aggressive growth plan.”
While company’s revenues rose more than 10% to $13.4 billion from $12.2 billion, its net income slipped to $396.5 million, compared to $412.3 million earnings at the same time last year.
For the year, the company said that its earnings increased by to $2.04 billion ($2.03 per share), compared with $1.75 billion ($1.72 per share).
Jonathan Adler creates giftware line for B&N
NEW YORK Barnes & Noble is teaming up with ceramist Jonathan Adler for a new collection this fall.
According to reports, the line will launch in 400 stores on Oct. 20, and will include items such as an umbrella, mug and a vase made exclusively for Barnes & Noble. The collection will range in price from $5.95 and $29.95.