1/7/20 - SmileDirectClub Inks Exclusive Deal With Retail Giant, Walmart

From the Simplr studios in San Francisco, this is your daily briefing.  

Introduction

This is Today in Five, for today, Tuesday, January 7th. Here are today’s headlines in digital disruption.

SmileDirectClub is starting off 2020 strong with a new partnership with Walmart. As part of the deal, SmileDirectClub will debut a host of products across Walmart’s more than 3,800 U.S. stores.

First, here are the latest headlines.

Bed Bath and Beyond Selling Some of Its Real Estate

Bed Bath and Beyond announced on Monday it has entered an agreement to sell about 2.1 million square feet of its real estate portfolio to private equity firm Oak Street Real Estate Capital and lease back the space. The spaces include retail stores, a distribution facility, and office space, according to a company press release. The company said the more than $250 million dollars generated from the transaction will go toward investing in Bed Bath and Beyond’s transformation efforts, funding share repurchasing, or reducing its outstanding debt. CEO Mark Tritton in a statement said, “This marks the first step toward unlocking valuable capital in our business that can be put to work to amplify our plans to build a stronger, more efficient foundation to support revenue growth, financial stability and enhance shareholder value.”  

Disney+ Already Valued at Over $100 Billion

According to an estimate from Barclays, Disney’s streaming service is already being valued by investors at more than $100 billion dollars less than two months after the launch of Disney Plus. Barclays pegs Disney’s core business, which includes its movie studio, parks, etc, at $213 billion dollars, leaving Disney’s direct-to-consumer streaming businesses worth around $107 to $108 billion dollars. Shares of Disney are about 6 percent above their closing price on November 11th, the day before Disney Plus launched. The stock is up more than 30 percent in the past year. Barclays said, “Just 6 weeks into launch, Disney is already pricing in a streaming business worth $108 billion, 69 percent of Netflix’s enterprise value which has taken 13 years to get here.” Disney has a market cap of about $260 billion, while Netflix is at about $144 billion.

Amazon Expands Footprint in India

Amazon is deepening its ties with India’s second-largest retail chain, Future Retail, as the e-commerce giant expands its footprint in one of its key overseas markets. The two companies said they have entered into a long-term business agreement to expand the reach of Future Retail’s stores through Amazon India marketplace. Future Retail operates more than 1,500 stores across India but has not aggressively explored sales online. As part of the agreement, Amazon India will become the authorized online sales channel for Future Retail stores. The two giants said they have agreed to focus on grocery, general merchandise, fashion and apparel, and beauty products.  

SmileDirectClub Inks Exclusive Deal With Retail Giant, Walmart

SmileDirectClub announced that it has inked an exclusive deal with retail giant, Walmart, to debut a host of consumer products across its more than 3,800 U.S. stores and the retailer’s website. Initial products include an electric toothbrush, a teeth whitening system with an LED light, whitening toothpaste, a water flosser, and an ultrasonic UV cleaner. SmileDirectClub’s Chief Financial Officer said the deal was a long time coming and that they had been working on the products for over a year.  

The deal is a win for the upstart company, as it gets the company instant name recognition inside the walls of the world’s largest retailer where many customers might be unfamiliar with the brand. Plus, the product lines are affordable and could move in good volume, which would benefit SmileDirectClub’s bottom line this year. It could also open the door to having SmileDirectClub’s teeth retainer installation shops inside Walmart stores if the products are successful. The company already has partnerships with CVS and Walgreens, displaying dedicated shops within their stores, and Walmart hasn’t ruled out shops opening at its U.S. locations. The retail giant has prioritized expanded, affordable healthcare services at the front of its stores in the past year, and SmileDirectClub shops would be a good fit.  

Closing

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Thanks for listening to this latest episode of Today In Five. We’ll see you tomorrow.