Washington, D.C. – In a conversation with Daniel Esteban Novoa, Executive Vice President of the Hispanic Retail Chamber of Commerce, he tells us that in recent years, the retail sector has experienced a strong consolidation trend, driven by changes in consumer behavior, technology, logistical challenges, and regulatory and trade pressures. Between 2024 and 2025, several strategic transactions stood out, reflecting companies’
pursuit of greater scale, supply chain efficiency, omnichannel presence, and access to new market segments.
Key Transactions
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Walgreens Boots Alliance was acquired by Sycamore Partners for approximately USD 10 billion. The deal marks a significant move to reshape one of the largest pharmacy retailers through private equity investment, leveraging its broad store network, pharmaceutical capabilities, and health services.
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Dick’s Sporting Goods acquired Foot Locker in a USD 2.4 billion deal. With this transaction, Dick’s aims to strengthen its footprint in athletic footwear and urban lifestyle retail, combining complementary store networks, optimizing operations, and capitalizing on brand synergies.
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E.l.f. Beauty acquired Rhode, Hailey Bieber’s skincare brand, for about USD 1 billion (USD 800 million upfront and an additional USD 200 million tied to performance). The acquisition expands E.l.f. ’s prestige and luxury beauty portfolio, boosts distribution, and reinforces its positioning in the skincare segment.
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Home Depot acquired SRS Distribution in 2024 for approximately USD 18.3 billion. This acquisition broadens Home Depot’s offering for professional customers, adds specialized construction products, and strengthens its logistics capabilities in high-growth verticals.
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C&S Wholesale Grocers completed the acquisition of SpartanNash Company in 2025 for USD 1.77 billion, adding both wholesale distribution and retail operations. The move enhances supply chain efficiency, reduces costs, and improves operational scale to better serve independent and corporate supermarkets.
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Catalyst Brands LLC was formed through the merger of SPARC Group and JCPenney in late 2024/early 2025, consolidating brands like Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica under one umbrella. The strategy focuses on revitalizing iconic retail brands through consolidation, portfolio restructuring, and joint operational efficiencies.
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Key Trends
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M&A activity goes beyond simple expansion: the focus is on achieving economies of scale, strengthening logistics, lowering operational costs, and enhancing omnichannel strategies.
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Private equity firms are showing strong interest in retail brands with valuable assets, defined store networks, or cultural and niche consumer relevance.
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Many deals include earn-out structures, brand preservation strategies, and agreements to keep management or creative teams involved post-acquisition.
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Regulatory scrutiny, antitrust pressures, and logistics/tariff costs are influencing both valuations and deal structures.
Market Implications
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For consumers: potential benefits include more competitive pricing and stronger logistics coverage, though risks remain if consolidation reduces local competition.
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For smaller retailers: opportunities arise in forming alliances, pursuing reverse acquisitions, or specializing to avoid being sidelined.
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For investors: retail assets with strong branding, efficient logistics, and a solid physical + digital presence are becoming especially attractive.
