It’s been another week with far more retail news than there is time in the day. Below, we break down some things you may have missed during the week and what we’re still thinking about.
From REI’s commitment to DEI to an executive departure at Adidas, here’s our closeout for the week.
What you may have missed
GameStop looks for a buyer for (some) operations
GameStop on Tuesday announced that, as part of an international evaluation of its assets, the company wants to sell off its operations in France and Canada.
Image via Ryan Cohen’s X feed
CEO Ryan Cohen stated on X that the company has set up an email address for anyone who is interested in pursuing an acquisition. “High taxes, liberalism, socialism, progressivism, wokeness and DEI included at no additional cost if you buy today,” Cohen wrote.
The retailer in December said it was continuing a comprehensive store portfolio review, which identifies potential store closures.
REI weighs in on the DEI debate
In a company message from CEO Eric Artz and President Mary Beth Laughton, REI last week stood firm in its DEI positioning, saying it “will always be” a values-led company. That’s despite extensive pressure from the Trump administration and conservative activists to change longstanding diversity practices.
“To stray now would be not just antithetical to who we are but fundamentally at odds with our ability to steward a thriving co-op for future generations,” the two leaders said, noting that its values have been critical to success since its founding in 1938. “We believe time outside is a human right and should be available, equitable and safe for all. That we have a responsibility to steward our public lands. And that we must do all that’s humanly possible for the long-term health of our planet.”
The message comes as Laughton prepares to take over as CEO in March. The co-op has long positioned itself as a people-first company, including through initiatives like OptOutside, which gives all employees Black Friday off to connect with their families and nature.
“Honoring and celebrating a diversity of experiences, perspectives and contributions makes this co-op stronger,” Artz and Laughton wrote. “This work is vital to our survival.”
Hasbro is ‘Playing to Win’ in strategic overhaul
Toy and game company Hasbro on Thursday said it’s embarking on a strategic turnaround plan.
Dubbed “Playing to Win,” one of the plan’s goals is expanding Hasbro’s reach from 500 million kids, families and fans to 750 million by 2027. Hasbro also said it wants to drive mid-single digit revenue growth between 2025 and 2027, capturing $1 billion in gross cost savings in the process. The company wants half of that to flow to its bottom line.
The plan arrived as Hasbro reported Thursday that its 2024 fiscal year revenue declined 17%, from $5 billion to $4.1 billion. The drop was driven primarily by the divestiture of its film and TV business — when excluding the segment, revenue declined 7%.
The five point foundation of the plan involves building profitable franchises; increasing play and collectible appeal for fans age 13 and up across all brands; expanding reach in emerging markets; building capabilities in video games, services and e-commerce; and driving profit through retail and licensing partnerships. Hasbro also plans to collaborate with partners on upcoming movies, themed hotels, cruise ships, restaurants and AAA video games.
“Our new strategy is grounded in the key insights which will drive Hasbro’s evolution into a modern play company: serving fans of all ages around the world at every price point, and meeting fans where they are playing, which is increasingly online,” said CEO Chris Cocks.
Retail therapy
Hot Girl Meg enters tequila
Image courtesy of Chicas Divertidas Tequila
Megan Thee Stallion is entering the celebrity tequila business. The artist introduced a tequila brand Chicas Divertidas, the brand announced Feb. 15.
The drink comes in blanco for $70 and reposado at $80, and is available for pre-order. The 750ml bottles will also be available in limited quantities at select U.S. retailers.
Krispy Kreme, Hulu partner on a hole-some treat
Image courtesy of Krispy Kreme, Hulu
Krispy Kreme and Hulu on Monday announced they collaborated on four new doughnuts that are inspired by movie snack bars. Flavors include blue raspberry slush, caramel popcorn, cookie dough and a “candy double feature,” that includes milk chocolate candy pieces and mini chocolate chips.
Krispy Kreme x Hulu movie snack doughnuts are available for a limited time at Krispy Kreme stores, via their app and website and at select retailers.
What we’re still thinking about
4
That’s how many years Eric Wise spent as the general manager of Adidas’ global basketball business before leaving the role, per a LinkedIn post from the executive this week. It was part of an almost nine-year journey with the global sportswear giant that also included senior positions in product and merchandising.
Though he did not offer specifics, the executive said it’s “time for me to step into my next chapter.”
Adidas confirmed Wise’s departure in an email and said the company is “grateful and appreciative of the significant contributions that Eric has made.” The retailer did not respond to questions about who would take on the role or if the departure was tied to its recent restructuring plan. The sportswear giant announced a restructuring program last month aimed at reducing complexity across the business.
“While leading the basketball business, I am proud of our achievement — relaunching the category, expanding partnerships, establishing a strong presence in Los Angeles and achieving incredible sales gains on the business side,” Wise said.
Adidas “isn’t just a company — it’s a global culture,” Wise said.
6.7%
That’s how much net income fell at Somnigroup International — previously Tempur Sealy International — during the fourth quarter, reaching $71.9 million. The company also reported net sales increased 3.2% to $1.2 billion.
The company earlier this month closed on its deal to acquire Mattress Firm after the Federal Trade Commission moved to block the deal.
Looking ahead, the company expects to divest 73 Mattress Firm stores and the entire Sleep Outfitters subsidiary store fleet, which was agreed upon in September to address the FTC’s antitrust concerns.
What we’re watching
What’s going on with Saks and Neimans?
This week was heavy with news regarding Saks and Neiman Marcus. At the end of last year the companies announced that Saks Global acquired Neiman Marcus for $2.7 billion, with Saks CEO Marc Metrick leading the expanded company.
Now, after more than a century the Neiman Marcus flagship in downtown Dallas is closing and Saks warned suppliers they will have to wait for payments. Additionally, well-known personal stylist Catherine Bloom, who worked at Neiman Marcus since she was 18, resigned from the company and joined Nordstrom as its director of luxury styling.
Questions regarding the future of the company, including if vendors will agree to Saks’ terms for inventory, remain.
Editor’s note: This story has been updated to include comment from Adidas on Wise’s departure.