Consumer & Retail Q1 2023

Industry Trends

U.S. Consumer Confidence Rebounds Slightly in March

The U.S consumer confidence index experienced a slight recovery in March after declines in the previous two months, reaching 104.2, up from 103.4 in February. The index measures consumers' attitudes, buyer intentions, expectations for inflation, stock prices, and interest rates. The rise in consumer confidence is attributed to improved expectations for the economy. Although the index rose in March, it remains below the average level of 104.5 in 2022.¹

Annual Inflation Climbs 6% Since Last Year

The CPI rose 0.4% in February and 6% from a year ago, in line with expectations. The drop in energy prices helped keep inflation in check, while shelter costs increased sharply, accounting for over 60% of the total CPI increase. Excluding food and energy, core CPI rose 0.5% in February and 5.5% on a 12-month basis. The report raises concerns about the potential for sustained inflation, particularly as supply chain disruptions and labor shortages persist.²

U.S. Retail Sales Dip in February 2023 Following January Surge

US retail sales fell 0.4% in February 2023, lower than the anticipated 0.3% decline, following a 3.2% surge in January, the most significant gain since March 2021. Furniture stores (-2.5%), restaurants (-2.2%), and miscellaneous retailers (-1.8%) experienced the most significant declines, while non-store retailers (1.6%), health (0.9%), and food and beverage stores (0.5%) saw growth. Excluding autos, sales fell 0.1%, while core retail sales rose 0.5%. Sales are not adjusted for inflation.³

Retailers Put Pressure on Suppliers to Lower Costs

Changes in consumer spending and persistently high supply chain costs stemming from the pandemic are shifting the relationship between retailers and suppliers. Walmart, Whole Foods, and other major companies are pressuring suppliers to lower prices or even canceling orders for products ranging from clothing to appliances. As shortages ease and supplier-buyer dynamics return to pre-pandemic norms, retailers are leveraging their scale and buying power to gain greater control of their supply chains.⁴

Largest Transactions Closed

Target
Buyer
Value($mm)

Vivint Smart Home, Inc.
NRG Energy, Inc.
$5,540.27
Poshmark, Inc.
NAVER Corporation
$1,637.10
VIA Motors Inc.
Ideanomics, Inc.
$550.98
Operations of MGM Resorts Mississippi, Inc.
Cherokee Nation Entertainment, LLC
$450.00
Horizon Global Corporation
First Brands Group, LLC
$408.40
Assets of Transit Energy Group, LLC
GPM Transportation Company, LLC; GPM Southeast, LLC; GPM Investments, LLC; GPM Empire LLC; GPM Petroleum, LLC
$383.24
Clean Uniform Company
UniFirst Corporation
$300.00
Dream Hotel Group, LLC
Hyatt Hotels Corporation
$300.00
Volta Inc.
Shell Oil Company
$252.55
Streamsong Resort
Lone Windmill LLC
$160.00

Other Financial Buyer Transactions Closed

Target
Buyer
Value($mm)

New York Marriott East Side
Värde Partners Europe Limited; Hawkins Way Capital, LLC
$153.00
The Camby in Phoenix
KHP Capital Partners
$110.80
AC Hotel Phoenix Biltmore
Nella Investment Advisers
$67.80
Hotel Colonnade Coral Gables, Autograph Collection
Crescent Real Estate LLC
$63.00
Ocala North RV Resort, LLC
DLP Capital LLC
$33.00

Other Strategic Buyer Transactions Closed

Target
Buyer
Value($mm)

16 Marriott-branded hotels in United States
NewcrestImage, LLC; Hospitality Capital Partners, LLC
$137.30
Ace Group International, LLC
Sortis Holdings, Inc.
$85.00
Flooring Liquidators, Inc.
Live Ventures Incorporated
$84.00
AC Hotels by Marriott
OTO Development, LLC
$59.60
Carson Toyota, Inc.
Fletcher Jones Automotive Group
$48.60
Minneapolis Marriott Southwest, Inc.
MN Opus VII LLC
$23.60
Candlewood Suites
Low Income Housing Institute
$20.20
Boardwalk Inn & Suites
HLOM, LLC
$12.75
Treasure Bay Resort & Marina
Equity Management Partners, Inc.
$10.88
WoodSprings Suites
DEA Jacksonville LLC
$7.90
Comfort Suites near Indianapolis Airport
Singh Estate LLC
$7.10
Things Remembered, Inc.
1-800-FLOWERS.COM, Inc.
$5.00
Baby Dolls Of Dallas Inc
RCI Hospitality Holdings, Inc.
$$4.85
Super 8 Motel In Gulfport, Mississippi
Shreeji Hotels LLC
$4.40
Beach Road Fish House & Oyster Bar, Inc.
Corner Lot
$1.90
BurgerFi International, Inc.
Lionheart Equities, LLC
$$0.75
Belami and Confero
SKYX Platforms Corp.
$0.23

Data Assumptions

This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.

Glossary

EBIT - Earnings Before Interest and Taxes
EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
LTM - Last Twelve Months
TEV - Total Enterprise Value

Sources:

"US Consumer Confidence." The Conference Board, 28 March 30, 2023.
Cox, Jeff. “Inflation gauge increased 0.4% in February, as expected and up 6% from a year ago.” CNBC, 14 March 2023.
“U.S. Retail Sales.” Trading Economics, Accessed 29 March 2023.
Young, Liz. “Supplier, Buyer Relations Are Shifting Again as Pandemic Strains Ease.” The Wall Street Journal, 15 March 2023.

Consumer & Retail Q1 2023

Industry Trends

U.S. Consumer Confidence Rebounds Slightly in March

Annual Inflation Climbs 6% Since Last Year

U.S. Retail Sales Dip in February 2023 Following January Surge

Retailers Put Pressure on Suppliers to Lower Costs

Largest Transactions Closed

Other Financial Buyer Transactions Closed

Other Strategic Buyer Transactions Closed

PCE Transactions

Contacts

Joe Anto

David Jasmund

SITE MAP

OFFICES

Consumer & Retail Q1 2023

Industry Trends

U.S. Consumer Confidence Rebounds Slightly in March

Annual Inflation Climbs 6% Since Last Year

U.S. Retail Sales Dip in February 2023 Following January Surge

Retailers Put Pressure on Suppliers to Lower Costs

Largest Transactions Closed

Other Financial Buyer Transactions Closed

Other Strategic Buyer Transactions Closed

hbspt.cta._relativeUrls=true;hbspt.cta.load(460423, 'c75550e9-a6ec-4352-afc0-b388371c67b4', {"useNewLoader":"true","region":"na1"});

PCE Transactions

Contacts

Joe Anto

David Jasmund

Please Share This

SITE MAP

OFFICES