The retail industry saw a rebound in M&A activity in 2024 due to easing inflation and improved consumer spending, with retail alone seeing deals worth $97 billion, a growth of 47% compared to 2023. In 2025, retailers are strategically positioning themselves to leverage M&A for geographic and market expansion, portfolio diversification, and brand optimization. We anticipate a continued focus on innovation, sustainability, and restructuring efforts, as well as an increased emphasis on private ownership strategies to drive long-term growth and stability. Below, we dive into four 2025 M&A deal trends in retail, with examples for each.

2025 M&A Deal Trends in Retail 

The following trends highlight key themes shaping M&A activity in the retail industry for 2025:  

• Geographic and Market Expansion   
• Consolidation & Portfolio Diversification   
• Strategic Restructuring and Focus   
• Private Ownership for Long-term Focus on Company Strategy  

Trend 1: Geographic and Market Expansion  

Retail companies continue to actively acquire complementary businesses to strengthen their market positions, expand portfolios, and enter new high-growth market segments. Geographical diversification, particularly in North America, remains a safe and strategic approach for growth.   

[January 2024]: 7-Eleven Acquires 204 Gas Stations and Convenience Stores from Sunoco  

7-Eleven bolstered its presence in key U.S. regions with the $950 million acquisition of 204 gas stations and convenience stores from Sunoco. This strategic move enhances 7-Eleven’s footprint along the interstate highway system within the southwest to increase its overall market share. The acquisition also supports the growth of the 7NOW delivery business, helping it target $1 billion in revenue through improved last-mile delivery services. Additionally, 7-Eleven aims to drive sales of proprietary products to 34% of total revenue by the end of 2025.  

[July 2024]: Casey’s General Stores Purchases 198 CEFCO Convenience Stores  

Casey’s General Stores expanded its footprint in the southern United States with the $1.5 billion all-cash acquisition of 198 CEFCO convenience stores from Fikes Wholesale. This deal adds locations in Texas, Mississippi, Florida, and Alabama, solidifying Casey’s presence in Texas, a strategic growth area with ~150 locations. This acquisition provides immediate scale to complement Casey’s recent acquisition of Texas-based Lone Star convenience stores. Casey’s strategic plan focuses on penetrating high-growth markets, particularly in the southern U.S., to capture a new customer base and increase market share in this highly competitive region.   

[August 2024]: Frasers Group Investment in Accent Group 

In August 2024, Frasers group, a UK-based retail conglomerate, made a strategic move by acquiring a 14.65% stake in Accent Group, a prominent wholesale retailer specializing in athletic footwear, appeal, and lifestyle products based in Australia and New Zealand. The acquisition marks a significant step in Frasers Group’s ongoing international expansion efforts, particularly in the fast-growing markets.  

Trend 2: Consolidation and Portfolio Diversification  

Retail companies continue to diversify and optimize their portfolios to fuel growth and adapt to evolving consumer and economic conditions. In the luxury sector, significant consolidation is underway as conglomerates like LVMH, Kering, and Tapestry expand their portfolios to achieve economies of scale and reduce competition. Additionally, many brands are venturing into new product categories to maintain high growth and attract younger customers. Consolidation and portfolio diversification remain key strategies to drive growth and resilience in a competitive market.  

[July 2024]: EssilorLuxottica Acquires Supreme Holdings  

EssilorLuxottica, the French eyewear giant, acquired Supreme Holdings for $1.5 billion, marking a significant diversification beyond its traditional focus on eyewear. Supreme, a highly influential brand in youth culture, skateboarding, and fashion, represents a growing opportunity in the streetwear and lifestyle apparel market. This acquisition strengthens EssilorLuxottica’s presence in the luxury sector by focusing on high-growth luxury streetwear. Supreme operates with a digital-first model and a strong online presence, alongside 17 retail stores. EssilorLuxottica gains immediate access to a well-established DTC framework, providing the company with valuable insights into managing DTC relationships, and allows EssilorLuxottica to diversify its brand portfolio and tap into Supreme’s loyal customer base, primarily comprising younger, fashion-forward consumers. 

[December 2024]: Hudson’s Bay Company Acquires Neiman Marcus Group  

Hudson’s Bay Company (HBC), the retail conglomerate that owns Saks Fifth Avenue, acquired Neiman Marcus Group (NMG) for $2.65 billion. This deal consolidates two major players in the North American luxury market, strengthening HBC’s competitive position against rivals such as Nordstrom and Bloomingdale’s while targeting a new customer segment. By integrating Neiman Marcus, HBC diversifies its brand offerings across various luxury segments by offering a broader and more varied product assortment, as well as operational synergies in supply chain management, inventory control, and technological innovation. By consolidating key luxury retail brands, HBC aims to leverage its existing resources to reinforce its market position and reduce costs. 

Trend 3: Strategic Restructuring and Focus  

Brands are streamlining their portfolios to concentrate on core offerings to improve bottom-line profitability and operational efficiencies. Many are achieving this by divesting underperforming or non-core assets, enabling them to focus on their strongest and most profitable business segments.   

[January 2025]: B&Q to purchase 5 Homebase stores in the UK  

In January 2025 B&Q, a leading home improvement retailer in the UK, announced the acquisitions of five leasehold stores operating under the Homebase brand for £2.5 million ($3.2 million). This follows, B&Q recent acquisition of three Homebase stores in the Republic of Ireland in December 2024. The acquisition, which will add over 25,000 square meters of retail space, will see the stores converted to the B&Q brand by the end of 2025, further expanding B&Q’s footprint and enhancing its offerings in both the UK and Ireland. 

[June 2024]: HanesBrands Divests Champion to Authentic Brands Group  

HanesBrands, a leading global apparel manufacturer, sold its Champion brand to Authentic Brands Group for $1.2 billion in an all-cash transaction. This divestiture aligns with HanesBrands’ long-term growth strategy by allowing the company to refocus on its core innerwear business, which boasts long-standing customer loyalty and profitability. The sale also reduces operational complexity, enabling HanesBrands to focus on its innerwear sector that has recently achieved market share gains, particularly among younger consumers. This growth is attributed to new product innovations and increased brand marketing investments, leading to improved operating margins.   

[September 2024]: LVMH Sells Off-White to Blue Star Alliance  

LVMH, the luxury conglomerate, sold its stake in Off-White to Blue Star Alliance in a strategic shift within the luxury fashion industry. While the financial terms of the transaction were not disclosed, this move reflects a broader trend of portfolio streamlining and a focus on core operations. By divesting Off-White, LVMH reinforces its position as a leading luxury conglomerate while emphasizing its heritage luxury brands—a segment experiencing strong demand and profitability.  

[October 2024]: SpartanNash Acquires Fresh Encounter Inc. To Expand Retail Footprint  

SpartanNash, a leading food solutions company acquired Fresh Encounter (FEI), a 49-chain supermarket chain with locations in Ohio, Indiana, and Kentucky. This acquisition expands SpartanNash’s retail presence by 33% and plans to integrate the stores into its existing network. This move aligns with SpartanNash strategic growth plan, expanding its operations across the Midwest and solidifying its market position.   

Trend 4: Private Ownership for Long-Term Focus on Company Strategy  

As companies pivot to new initiatives, many are opting for private ownership to shield themselves from short-term market pressure. Private companies gain enhanced operational flexibility, enabling them to adapt to evolving market conditions and consumer trends. Free from shareholder demands for immediate profits, private companies can prioritize long-term strategic investment allowing for sustainable growth over time.  

[April 2024]: L’Occitane International Goes Private for $1.94 Billion  

L’Occitane International transitioned to private ownership in a deal valued at approximately $1.94 billion. This privatization enables the company to implement strategic initiatives without the pressure of meeting short-term market expectations. Additionally, the move provides greater operational flexibility and creates a longer runway for investments in sustainable growth.  

[December 2024]: Nordstrom Family Takes Nordstrom Private with El Puerto de Liverpool for $4 Billion  

The Nordstrom family, in collaboration with Mexican retailer El Puerto de Liverpool, took Nordstrom private in a $6.25 billion transaction. Under the new ownership structure, the Nordstrom family holds a 50.1% stake, while Liverpool owns 49.9%. This move allows Nordstrom to leverage Liverpool’s strong eCommerce presence through its Liverpool Pocket app and click-and-collect service for in-store returns for online purchases. Free from the pressure of delivering immediate results to public investors, Nordstrom can now focus on long-term investments, such as adapting more quickly to shifting consumer preferences.  

Looking Ahead

As we move into 2025, retail companies will leverage M&A to strengthen market positions and streamline operations as well as to support long-term strategic goals, positioning themselves for sustainable growth amid shifting consumer expectations.  

To successfully navigate an increasingly competitive landscape, retailers can reach out to Clarkston’s experts. Our team can help to align M&A strategies with long-term value creation by identifying strategic opportunities, assessing potential synergies, and developing tailored integration plans that drive sustainable growth and operational efficiency.