Good morning,

A cyberattack has hit Hasbro, disrupting parts of its operations and forcing the company to take systems offline. The toymaker warned it could take several weeks to fully recover as it works to contain the breach.

The intrusion, detected in late March, has affected order processing and shipments, prompting Hasbro to activate contingency plans to keep operations running. The company is still assessing whether any data was compromised as external cybersecurity experts investigate.

Hasbro joins a growing list of major retailers — including Marks & Spencer, WH Smith, JD Sports, and Ikea — that have been hit by cyberattacks in recent years, underscoring rising risks to retail supply chains and operations.

Let’s dive into today’s edition.

U.S. spice giant McCormick & Company has agreed to acquire most of Unilever’s global food business — including brands such as Hellmann’s and Knorr — in a deal valuing the unit at nearly $45 billion. The transaction includes $15.7 billion in cash, with the remainder paid in equity.

The deal will significantly expand McCormick’s presence beyond spices into condiments and packaged foods, while allowing Unilever to pivot toward higher-growth segments such as beauty and personal care. The transaction, the largest in both companies’ histories, is expected to close in mid-2027 pending approvals.

The deal reflects a broader shift in the food industry, as companies streamline portfolios through divestitures and spin-offs amid weakening consumer demand. Shares of McCormick fell 6%, while Unilever declined 4% in early trading, signaling investor caution toward the deal.

Amazon will impose a 3.5% fuel and logistics surcharge on third-party sellers using its fulfillment services, citing rising costs linked to the ongoing war in Iran. The levy will take effect on April 17 across the U.S. and Canada.

The move comes as oil prices surge, with Brent crude jumping above $107 per barrel amid concerns over supply disruptions in the Middle East. Amazon said it had absorbed higher costs so far, but is now passing on a portion through temporary fee increases.

The surcharge, averaging about 17 cents per unit for FBA shipments, aligns Amazon with peers such as UPS, FedEx, and USPS, which have also raised fuel-related charges. The company emphasized that the increase remains lower than that imposed by other carriers.

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Aldi has launched a new U.S. website and app powered by Instacart’s white-label platform, marking a shift away from building its e-commerce stack in-house. The move deepens a partnership that began in 2017, with Instacart now serving as Aldi’s exclusive digital fulfillment partner.

Instacart’s Storefront Pro platform will handle the full online experience, including product discovery, recommendations, and checkout, while preserving Aldi’s branding. The system also integrates features such as meal planning and personalized shopping tools.

The shift reflects broader industry trends, as grocers increasingly outsource e-commerce infrastructure to specialized platforms to keep pace with rising online demand. Instacart, which has processed over 1.5 billion grocery orders, is positioning itself as a full-stack digital backbone for retailers navigating rapid growth in online grocery.

Sam’s Club, owned by Walmart, will raise its annual membership fee by $10 starting May 1, bringing the basic tier to $60 and its premium “Plus” plan to $120. The move marks its first price increase since 2022.

The new pricing keeps Sam’s Club below rival Costco but in line with BJ’s Wholesale Club. The increase comes as membership and sales continue to grow, with U.S. net sales rising 3.1% to $93 billion and e-commerce sales jumping 23% year over year.

Analysts estimate the fee hike could generate more than $200 million in additional annual revenue, supporting margins as operating costs rise. Costco increased membership fees in 2024 for the first time in seven years, after months of investor pressure, with BJ’s following suit with its own first hike in seven years.

Nike said it expects sales to decline through the rest of 2026, as continued weakness in China and ongoing restructuring efforts weigh on performance. The company forecast a low single-digit sales decline for the year, including a 2% to 4% drop in the current fiscal fourth quarter, compared with expectations for growth.

A key pressure point remains China, where Nike projected a roughly 20% sales decline in the current quarter, following a 7% drop in the most recent period. The slowdown in the region comes despite broader gains in North America, Europe, and other international markets, underscoring uneven recovery across geographies.

For its fiscal third quarter, Nike reported profit of $520 million, down from $794 million a year earlier, while earnings per share came in at 35 cents. Revenue was largely flat at $11.28 billion, as growth in wholesale channels — up 5% to $6.5 billion — helped offset a 4% decline in direct-to-consumer sales.

Saks Global has secured $500 million in exit financing from senior bondholders, positioning the luxury retailer to emerge from Chapter 11 bankruptcy later this summer. The funding builds on earlier debtor-in-possession financing and is intended to stabilize operations and support restructuring efforts.

The company has used the bankruptcy process to streamline operations, including closing more than 20 department stores, winding down parts of its off-price business, and consolidating distribution and service centers. These steps are part of a broader effort to refocus on its core luxury retail business.

Operationally, Saks said vendor relationships have improved, with over 650 brands resuming shipments and inventory receipts rising. The retailer also reported stronger customer engagement, with higher spend per visit and improved online conversion rates, as it works toward a more stable financial footing post-restructuring.

CVS Health plans to open roughly 60 new stores in 2026, marking a return to expansion after several years of net closures aimed at streamlining its retail footprint.

The new locations will include a mix of full-format stores, outlets inside Target locations, and smaller pharmacy-only formats, as the company continues to refine its store strategy. While openings are planned, a limited number of closures are still expected, largely tied to lease expirations and relocations.

CVS has closed hundreds of stores in recent years — including about 800 over three years and an additional 270 planned in 2025 — as it sought to improve profitability and renegotiate insurer contracts. The shift comes amid rising competition, theft, and changing consumer behavior across the pharmacy sector.

U.S. retail sales rose more than expected in February, signaling resilient consumer demand after a weak start to the year. Retail purchases increased 0.6% from the prior month, reversing a January decline, while sales excluding autos and gasoline rose 0.4%.

The gains were broad-based, with 10 of 13 categories posting increases, including clothing, personal care, and sporting goods. Motor vehicle sales climbed 1.2%, the strongest since July, as demand recovered following weather-related disruptions earlier in the year.

However, rising gasoline prices driven by the war in Iran are emerging as a risk, with pump prices climbing above $4 a gallon. Higher fuel costs could begin to weigh on discretionary spending if the conflict persists.

Allbirds has agreed to sell its intellectual property and key assets to American Exchange Group for $39 million, marking a sharp decline from its peak valuation of over $4 billion. The deal comes after years of slowing sales and mounting losses for the sneaker maker.

The transaction values the company at a fraction of the $301 million it raised during its 2021 IPO, reflecting a steep erosion in investor confidence. Shares have fallen more than 95% since listing as the brand struggled to maintain growth.

The acquisition is expected to give Allbirds access to broader retail distribution and operational support, as American Exchange looks to scale its presence in lifestyle and footwear segments. Once positioned as a sustainability-led disruptor, Allbirds has struggled with demand, inventory, and profitability challenges