An Activist Target In Retail
Per the weekly precog feature of Activist Strategy last week, we talked about a retailer that could be an activist investor target. Outlined below is an excerpt. You can get the full piece and more by subscribing, or get a 2-week free trial...
Last year, the retailer put in place a buyback, fending off activists. Its core business remains stable and less discretionary than other parts of retail. It basically runs a store in a store format, although many don't realize this. It's sales per sq. ft. are industry leading and its distribution network is unique to its business model.
The retailer has a unique enough offering and set up to get private equity buyers to the negotiating table, and the turnaround aspect and growth opportunities to potentially get the buyout consummated.