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Richmond seeks developers for Coliseum property

Two Richmond city authorities issued a request for interest Thursday to redevelop the area surrounding the Richmond Coliseum into a hotel-anchored mixed-use development, the City Center Innovation District. Owned by Richmond’s economic development authority, the 9.4-acre property includes the shuttered Coliseum and other structures that were part of the failed Navy Hill development proposal.

The Richmond Economic Development Authority and the Greater Richmond Convention Center Authority invited development teams to submit applications by Dec. 20 to be considered for phase one of the project. In-person visits to the property will take place Nov. 29, according to the project website.

The $1.5 billion Navy Hill project was killed by Richmond City Council in February 2020 after city residents strongly objected to the public-private plan driven by former Dominion Energy Inc. President and CEO Thomas F. Farrell II, who formed NH District Corp. with other Richmond business leaders to develop a 10-block area that included the Richmond Coliseum site. No other groups submitted plans after the 2017 call for proposals by Mayor Levar Stoney, a vocal proponent of the deal.

The new request, however, appears to be more in the mold of the city’s Diamond District redevelopment, which was part of the Richmond 300 master plan created with extensive citizen input. According to the city’s announcement, the City Center Innovation District Small Area Plan is also a “direct outcome” of the comprehensive plan. A 242-page RFI notes that the first phase of the project would include the following properties, which are occupied by currently unused buildings:

  • Richmond Coliseum, 601 E. Leigh St., 7.36 acres
  • Sixth Street Marketplace, 530-550 E. Marshall St., 0.624 acres
  • Blues Armory, 411 N. 6th St., 0.487 acres
  • Park space, 406-408 N. 7th St., 1 acre
The Richmond Coliseum, seen here, has been closed since 2019, when some city officials backed the Navy Hill plan to build a new arena, a project quashed in 2020. Photo taken by Kate Andrews for Virginia Business in August 2019.

The plan must include demolition of the Coliseum, which has been closed since 2019, and development of a hotel with at least 500 rooms and meeting space, according to the planning document. The City Center Innovation Small Area Plan suggests adding public green spaces on part of the Coliseum footprint, with a main plaza at the intersection of North 6th and East Clay streets that could “serve as a citywide convening space” for concerts, festivals and ice skating when weather permits. Smaller spaces could be used for outdoor dining, playgrounds or other uses, according to the small area plan, which was released in November 2021.

The Coliseum site presents an opportunity for a grocery store with “sit-down, fast-casual dining and … space for entertainment and local vendors,” according to a market analysis prepared by AECOM that was included in the RFI.

The Blues Armory building, a 1910-built brick castle-like structure that once housed the Richmond Light Infantry Blues, must be renovated in a “creative adaptive reuse,” and proposals also must include “a significant number” of residences at multiple price levels; retail space; parking areas; and Class-A office space for biotech and life sciences businesses, many of which are already located nearby in the Virginia Bio+Tech Park. Public transit, pedestrian walkways, bike paths and open spaces also are priorities, according to the RFI.

In another change from the Navy Hill project, which was also criticized for its early funding plan to create a special tax district, the developers of City Center’s first phase must instead use “financing approaches that minimize public investment and risk and maximize private investment,” the document says, although it doesn’t offer further specifics. The project must also generate new revenue sources for the EDA, GRCCA and the city, as well as creating a fund to support technical assistance and training for minority-owned businesses and funding postsecondary scholarships for financially disadvantaged Richmond Public Schools students.

“Now is the time for Richmond to reinvigorate this part of our downtown to be a more vibrant destination for innovation, residential life and tourism,” said Richmond City Council Vice President Ellen F. Robertson, who represents District 6, where the property is located, in a statement. “The collaboration between the Richmond EDA and GRCCA is the right approach to getting this redevelopment project done.” Robertson was among the council members who rejected Navy Hill in 2020.

“We are thrilled to start the redevelopment of our City Center and to align it with the vision of the City Center Innovation District Small Area Plan,” said Leonard Sledge, executive director of the Richmond EDA. “All of the pieces are in place to position the redevelopment of the Coliseum site into a mixed-use, hotel-anchored development. We look forward to seeing this initial phase of the City Center redevelopment become a lively innovation district that attracts both established and startup companies, adds mixed-income housing, creates green space, expands tourism and so much more, while also creating opportunities for as many Richmonders as possible.”

After the Dec. 20 deadline for RFI submissions, an evaluation panel made up of representatives from the city and the two authorities are set to release a shortlist of development teams in winter 2023. Those groups will be invited to respond to a request for offers that will be evaluated by the same panel. In spring or summer 2023, the panelists expect to select one or more development teams for the project, pending approval by the EDA and GRCCA boards and other public bodies as needed.

Youngkin tours Amazon’s new robotics fulfillment center in Suffolk

Amazon.com Inc.’s 3.8-million-square-foot robotics fulfillment center in Suffolk opened in September, but the global retail colossus held an official grand opening at the facility Thursday, allowing Amazon officials to show off the center to Gov. Glenn Youngkin, who attended the opening event and took a tour.

The $230 million, four-and-a-half-story building in Northgate Commerce Park is the second-largest building in Virginia — behind the Pentagon — and has 1,500 employees. It processes about 200,000 packages per day, with plans to ramp up to 1 million per day. 

General Manager Gregory Lum puts a vest on Gov. Glenn Youngkin before the pair tour Amazon’s robotics fulfillment center in Suffolk. Photo by Robyn Sidersky

Under construction for the past two years, it’s one of dozens of Amazon facilities around the commonwealth, including several in Hampton Roads, but it’s Amazon’s first robotics fulfillment center in Virginia. Located at 2020 Northgate Commerce Parkway, the facility is nine football fields long and has more than 13 miles of conveyance, Gregory Lum, the facility’s general manager told the crowd assembled for the center’s grand opening.

In addition to Youngkin, government officials in attendance included U.S. Rep Bobby Scott, state Secretary of Commerce and Trade Caren Merrick, Virginia Secretary of Transportation W. Sheppard “Shep” Miller III and state Del. Emily Brewer, R-Isle of Wight, among others.

“When I think of Amazon, I think of innovation. I think of boldness. I think of a company that is driven every day to be best in class. And those themes resonate with our governor, who wants Virginia to be best in class,” Merrick said during the event.

Youngkin highlighted the workforce Amazon is creating across the commonwealth, and the 30,000 jobs the company already has created here, as well as investments the retailer has made in logistics facilities and HQ2, Amazon’s $2.5 billion East Coast headquarters being built in Arlington, which is expected to create another 20,000 to 25,000 jobs over the next decade. 

“Today we have the chance to peek inside, peek inside at the amazing capabilities that drive Amazon’s ability to provide extraordinary customer service, state-of-the-art access and opportunity to customers, and oh, by the way, the coolest robots you have ever, ever seen,” Youngkin said. “What we will see today is the next generation of what robotics alongside an extraordinary workforce can do together … but it also represents the commitment that Amazon has made to maintain a culture that rests on innovation.”

The building represents Amazon’s newest robotics technology in the country, an Amazon spokesperson told Virginia Business. The Suffolk center packages items that are 18 inches or smaller and serves the entire mid-Atlantic region, one of the reasons for the facility’s immense size.

“We have introduced the robotics technology to help make our operations safer and more efficient and that’s exactly what they’re doing,” said Amazon spokesperson Rachael Lighty, adding that the robotic technology allows Amazon to ship packages to its customers faster and more efficiently, allowing human employees to focus on more sophisticated roles. Lum, the facility’s general manager, noted that the robots do “the heavy lifting” so humans don’t have to.

Gov. Glenn Youngkin chats with Amazon employee Tamya Crawford on a tour of the new facility in Suffolk. Photo by Robyn Sidersky

While touring the facility, Youngkin stopped to chat with employees working alongside robots to process and prepare customer orders for delivery. Thousands of items peeked out from yellow bins, waiting to be placed in Amazon-branded packaging. 

Youngkin stopped and spoke with Tamya Crawford, an area manager overseeing a team for one part of the fulfillment process. “It’s not easy work, but it’s rewarding,” said Crawford, who worked for Amazon for about a decade at facilities in Pennsylvania and Central Virginia before joining the Suffolk center this year.

Fifth District economy little changed since August, Fed says

The economy in the Federal Reserve’s Fifth District (a multistate region including Virginia, North Carolina, South Carolina, West Virginia and Maryland) has been largely unchanged since August, according to the latest edition of the Federal Reserve’s Beige Book, released Wednesday.

Published eight times per year, the Beige Book is based on anecdotal information about economic conditions gathered from the 12 Federal Reserve Banks. It is compiled from reports by bank and branch directors, as well as information gathered from business contacts, economists, market experts and other sources.

Manufacturing activity was little changed in the district since August, according to the Beige Book report. District ports had high activity levels, but trucking companies saw declines in demand. Retail spending rose moderately. Travel and tourism declined on balance. Residential and commercial real estate slowed, and loan demand softened.

Manufacturers were able to work through backlogs as new orders slowed, however. Respondents reported a continuing lack of qualified workers and other labor difficulties as employees switched back and forth between companies depending on pay. Manufacturers also reported some supply chain improvements, but some, especially those in retail, said they expected consumers to cut down on spending in the near future.

While ports in the Fifth District reported strong demand due to ship diversions from West Coast ports, where labor negotiations continue, trucking companies reported slowing demand. Imports outpaced exports at ports, and import volumes were led by heavy equipment and furniture. Inland constraints continued to lengthen the time that containers dwelled in ports.

The Fifth District labor market remained tight and employment grew steadily, according to the Fed. Survey respondents worried that labor shortages impacted customers’ experiences, and students returning to high school and college worsened the problem. Some firms reached their ceilings on wage increases to attract and retain workers, and one implemented productivity incentives that could pay out up to $36,000 a year.

Prices for goods  in the Fifth District continued to rise, but at a slightly slower growth rate than in recent months. Manufacturers and service providers noted year-over-year price growth, with some input costs falling as freight and energy prices dropped.

Retailers reported modest growth in sales and revenue despite low foot traffic. Total retail sales rose, although big-ticket sales dropped. Some retailers reported that customers pulled back on nonessential goods like home décor and higher-end beauty products.

Leisure travel declined slightly, but business travel picked up. One hotelier reported that revenue remained strong because average room rates were higher than last year’s. Food service respondents reported mild declines in sales.

Housing market activity dropped as interest rates rose, and housing inventory for sales hit all-time lows. Pending and closed sales were down, and prices decreased modestly, although demand in some urban markets with strong job growth remained strong.

Residential construction sales decreased, and some builders offered incentives, price reductions and free upgrades to sell existing new home inventory.

Commercial real estate market activity slowed, but the industrial and multifamily segments continued to see strong demand for leasing, low vacancy rates and increasing rental rates. Demand for Class A office space, particularly in suburban markets, remained strong. New commercial real estate construction continued to experience supply chain disruptions and labor shortages.

Loan demand weakened across all commercial loan types as interest rates and concerns about cash flow rose. Demand for residential mortgages dropped. Deposit growth slowed, and some bankers noted inflation could be pressuring account holders.

Lowe’s to open distribution facility in Suffolk

North Carolina-based home improvement retailer Lowe’s Cos Inc. will establish a coastal holding facility in the city of Suffolk, adding 100 jobs, Gov. Glenn Youngkin announced Thursday.

Lowe’s had more than $96 billion in sales in fiscal 2021 and it operates or services nearly 2,200 home improvement and hardware stores, employing more than 300,000 associates. The company employs more than 11,000 workers in Virginia, primarily through retail establishments. In February, Lowe’s announced plans for a warehouse and distribution center in Roanoke County, creating an expected 70 jobs.

The Suffolk plant will be at the Virginia Port Logistics Park and will receive imported goods through the Port of Virginia to supply regional distribution facilities.

“Welcoming a major distribution facility for a Fortune 50 company of Lowe’s caliber is a testament to Virginia’s world-class port, transportation infrastructure and supply chain ecosystem advancing the logistics industry,” Youngkin said in a statement. “We are confident Lowe’s will find this strategic location and the exceptional workforce in Hampton Roads beneficial to achieving its goals and look forward to a long-term partnership.”

The Suffolk expansion will complement the retailer’s 69 stores across Virginia by helping the company manage flow of imported products, Don Frieson, executive vice president of supply chain at Lowe’s, said in a statement.

“We selected Virginia and the city of Suffolk because of its proximity to the Port of Virginia, as well as the uniquely skilled workforce in the local area,” Frieson said. “This coastal holding facility is part of an ongoing investment in Lowe’s supply chain to better serve our stores and customers.”

The Virginia Economic Development Partnership worked with the city of Suffolk and the Port of Virginia to secure the project for the commonwealth and will support job creation through the Virginia Jobs Investment Program, at no cost to Lowe’s. The company is also eligible to receive benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program.

Kroger begins effort to eliminate single-use plastic bags in mid-Atlantic stores

Kroger employees wore green shirts that read “Reusable in, Single-use out,” as they greeted customers on Monday with colorful bags.

A Kroger located in Henrico County in Central Virginia is the pilot store for Kroger’s initiative to remove single-use plastic bags in the mid-Atlantic division by 2025, according to James Menees, the corporate affairs manager for Kroger mid-Atlantic, which includes Virginia, West Virginia, Kentucky, Tennessee and Ohio. This is part of the company’s push to eliminate single-use plastic in all U.S. stores by 2025.

“We’re looking forward to moving our Zero Hunger, Zero Waste initiative forward,” Menees said. “One of the pillars of that social impact plan is to eliminate single-use plastic bags in all of our stores in the state of Virginia.”

The Zero Hunger, Zero Waste Foundation is Kroger’s nonprofit for innovation in food waste, access and security, according to its website.
Customers are encouraged to bring their own bags, or purchase the 10-cent plastic bag or the 99-cent tote bags. The reusable, 10-cent plastic bags are at least 40% made out of recycled material and are designed to be used 125 times, according to the written information on the actual bags. The proceeds from the purchase of reusable bags will go to the foundation, according to a press release.

More than 100 billion single-use plastic bags are thrown away each year, according to Kroger, and 90% of those bags are never reused. Even with initiatives such as reusable bags and bag taxes, the U.S. has one of the highest rates globally for plastic waste generated per person, according to the

Organization for Economic Cooperation and Development. The OECD is an international organization established over 60 years ago to work with governments and citizens on policy initiatives.

The world produces twice as much plastic waste as two decades ago, according to a recent OECD report. The bulk of plastic waste ends up in landfill, incinerated or leaking into the environment, and only 9% successfully recycled, according to the report. The OECD has statistics to illustrate the consequences of plastic in the environment, including its contribution to greenhouse gas emissions that ultimately cause global warming, according to the organization.

The best option is choosing the bag one already owns rather than buying new ones, because even reusable bags have an environmental cost upfront, according to National Geographic.

State legislators passed a law in 2021, after years of attempts, that allowed localities to adopt a plastic bag tax. Only a few districts have incorporated the measure, including Roanoke and areas in Northern Virginia.

A main issue is remembering to bring one’s own reusable bag to the grocery store, according to Henrico County resident and Kroger customer Mary Atkins. Atkins has been waiting for the push to come to Richmond, she said.

“If I were thinking about the fact that I was coming to the store,” Atkins said, “but sometimes it’ll be a set of things on a list, and I’ll head out the door and then realize.”

A representative with the county’s program Keep Henrico Beautiful greeted Kroger customers at the door Monday, handing out “Go Green” bags on the first day of the initiative.

“We love to see people out with their reusable bags,” said Megan Brown, the executive coordinator for Keep Henrico Beautiful. “A lot of people are already coming and have mentioned that they don’t use plastic bags anyway, so it’s just super nice to see that and see their smiles.”

Kroger has 17 other Richmond-area locations, although a grocery representative did not have a timeline for phasing out plastic bags at those locations.

New York-based grocer Wegmans is phasing out single-use plastic bags entirely by 2022. Aldi, a German-founded grocer with U.S. headquarters in Illinois, announced it will phase out plastic bags in all stores by the end of 2023.

Capital News Service is a program of Virginia Commonwealth University’s Robertson School of Media and Culture. Students in the program provide state government coverage for a variety of media outlets in Virginia.

Dollar Tree names new C-suite execs after shakeup in June

After a C-suite shakeup this summer, Chesapeake-based Fortune 500 discount retailer Dollar Tree Inc. is filling spots on its leadership team. This week, the company named a new chief operating officer and chief development officer.

On Monday, Dollar Tree named Michael Creedon Jr. chief operating officer. Creedon had been with Advance Auto Parts since December 2013 and rose from president of Autopart International, a wholly-owned subsidiary of Advance, a role he held for four years, to president of the company’s north division, from 2017 to 2020, to president of U.S. stores from 2020 to 2021 and then executive vice president of U.S. stores.

“I am extremely pleased to announce that Mike Creedon will be joining the Dollar Tree team as our new chief operating officer. Mike’s impressive career in retail is rooted in a deep knowledge and understanding of his customers,” Dollar Tree President and CEO Mike Witynski said in a statement. “Mike will be instrumental in driving the execution of our strategy, and a key leader supporting our culture transformation in Dollar Tree, Family Dollar and Dollar Tree Canada stores.”

Before joining Advance Auto Parts, he was vice president and general manager of Sensormatic LLC’s North America sales and operations from 2010 to 2013. The company is the retail security division of Tyco International Inc. He earned his bachelor’s from Middlebury College and a finance certificate from the Chicago Graduate School of Business.

“I look forward to joining the Dollar Tree organization at this key stage in its transformation. We will be committed to improving the in-store experience for our shoppers, as Dollar Tree and Family Dollar are well-positioned to be a critical solve for the millions of households dealing with historic inflation,” Creedon said in a statement. “My team will be focused on improving operational processes and efficiencies to better support our store associates and field leaders, and the customers they serve. We will be focused on recruiting, training and retaining key retail associates and help them build their careers at Dollar Tree.”

On Wednesday, Dollar Tree named Pedro Voyer its new chief development officer. He previously served as the international general manager for Panera and chief operating officer of Caribou Coffee and Einstein’s Bagels, all brands owned by JAB Holding Co. Voyer also served as chief development officer for Burger King Corp.’s U.S. and Canadian portfolio, and he held leadership positions at YUM Brands, Tricon, PepsiCo International and Bain & Co. Consulting. Voyer has a degree in mechanical engineering from Universidad Simon Bolivar in Venezuela and an MSC/MBA from the Tokyo Institute of Technology/MIT.

“I am extremely pleased to announce that Pedro Voyer will be joining Dollar Tree as our new Chief Development Officer. With more than 25 years of leadership experience in the domestic and international multi-unit food and beverage industry, Pedro has a strong track record in profitable new unit growth, portfolio asset management and facility management,” Witynski said in a statement. “Pedro will lead our real estate teams to enable our long-term growth and provide customers with a shopping experience that wows them each time they visit our stores.”

Dollar Tree has more than 15,600 Dollar Tree and Family Dollar stores across the United States and Canada. In June, the Fortune 500 company parted ways with its chief operating officer, chief strategy officer, chief financial officer, chief information officer and chief legal officer. The move followed a proxy battle with activist investor group Mantle Ridge LP, which was settled in March after Dollar Tree named Richard Dreiling, former chairman and CEO of rival Dollar General, as the board’s executive chairman. Mantle Ridge CEO Paul Hilal became vice chair.

“I am eager to join the Dollar Tree team at such a pivotal time in the organization’s transformation. The Dollar Tree and Family Dollar brands have a unique opportunity for growth in what I consider to be one of the most attractive sectors in retail at this time,” Voyer said in a statement. “My teams will be committed to supporting the organization to drive sustainable new unit growth, improved store condition, productivity and profitability by enhancing the customers’ shopping experience in our stores.”

Other recent hires to Dollar Tree’s C-suite include Jeffrey A. Davis as chief financial officer in late August, and Bobby Aflatooni as chief information officer in late July.

“We continue to work aggressively in our efforts to build a world class retail leadership team that will enable us to accelerate the growth of the company. Pedro’s addition represents the sixth chief officer that has joined the company in less than five months. We are committed to delivering improved long-term operating performance for the benefit of all Dollar Tree stakeholders,” Witynski said.

In the second quarter, Dollar Tree increased sales 6.7% to $6.77 billion, up from $6.34 billion in the second quarter of 2021. It had a 14.2% increase to $2.12 billion from $1.86 billion in the prior year’s second quarter.

22 acres in Innsbrook to be developed into mixed-use

Newton, Massachusetts-based Northland has acquired 22 acres to build a mixed-use development at the “North End” of the Innsbrook area in Henrico County, from Raleigh-based Highwoods Properties.

The site is located on the north end of the Innsbrook Corporate Center, at the Intersection of Interstate 95, Nuckols Road and Lake Brook Drive. It already has 5.5 million square feet of office space, 3,400 apartment and residential units, seven hotels and 20 restaurants, according to a news release from Cushman & Wakefield | Thalhimer.

Jane DuFrane, senior vice president and Richmond market leader for Highwoods Properties, said that the northern area of Innsbrook does not have many food choices or amenities in easy walking distance so Highwoods sought a partner to develop retail. Highwoods is known for building office space , but knew this area needed to be a mixed-use community in order to help its customers retain and attract talent.

“We wanted to urbanize without increasing the traffic,” DuFrane said.

The site is zoned for up to 700 residential units (600 apartments, 100 condos), 55,000 square feet of retail and a 150-room hotel. Early-stage design and master planning efforts will begin this year, but the completion date has not been announced.

Highwoods Properties owns 12 acres adjacent to the site where it could develop 315,000 square feet of Class A office space as part of the 34-acre mixed-use development.

“The firm plans to introduce a diverse mix of retail options, including chef-curated restaurant concepts and amenity boutiques centered around activated open space, for both future multifamily residents and office tenants,”  Northland wrote in a news release announcing the acquisition.

“We’re thrilled to establish Northland’s entrance into the Richmond market with such a transformative, landmark project. Richmond, and especially the area’s numerous active suburbs, has long been a compelling target market for Northland given its consistently fervent population growth, institutional higher education ecosystem, and flourishing Fortune 500 job prospects,” Santo Dettore, associate vice president of development at Northland, said. “This site represents the next step of the Northland development platform, enabling us to leverage our extensive experience in mixed-use design and large-scale master planning to create a vibrant neighborhood for residents, employees, and visitors to the area.”

Sale negotiations were handled by Eric Robison of Cushman & Wakefield | Thalhimer’s Capital Markets Group, along with David Baird and Michael Denise of Cushman & Wakefield’s Baltimore land development team.

Arko to acquire Transit Energy Group for $375M

Arko Corp., a Fortune 500 holding company for Richmond-based convenience store chain GPM Investments LLC, announced Monday that GPM and some of its subsidiaries have agreed to acquire South Carolina-based Transit Energy Group for approximately $375 million plus the value of inventory.

Transit Energy Group has about 150 convenience stores and fuel supply rights to approximately 200 dealers. GPM will also acquire TEG’s bulk storage, distribution and transportation assets. Arko will have more than 1,530 convenience stores and more than 1,800 wholesale dealer sites once the transaction closes. The acquisition expands the company’s retail footprint into Alabama and Mississippi and will add about 285 million gallons of fuel to the 2 billion gallons Arko sells annually.

“Arko will add value to our stores with their diverse offerings, and ably serve our many loyal retail and wholesale customers,” TEG President and CEO Stephen Lattig said in a statement. “TEG would not be the success it is today if it were not for the dedication of its team members. We are excited that our team and company are joining a growing and dynamic organization.”

Energy investment firm ECP formed TEG, a privately held convenience store and wholesale fuel company in the Southeast United States, in July 2019. TEG owns stores in Alabama, Arkansas, Louisiana, Mississippi, Missouri, North Carolina, South Carolina and Tennessee, operating under the Flash Market brand and others.

Of the value of inventory, $50 million is deferred and payable in two annual payments of $25 million, either in cash or in shares of Arko’s common stock (subject to certain conditions) on the anniversaries of the closing.

Arko plans to finance about $60 million of the transaction. Oak Street Real Estate Capital, a division of Blue Owl Capital, expects to fund the remaining roughly $265 million as part of a $1.15 billion agreement announced in May 2021. Oak Street expects to acquire the real estate assets from TEG, and Arko expects to lease those assets from Oak Street. The incremental rent estimate is approximately $16 million.

Arko expects the acquisition to add about $18 million of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) annually, which it expects to become a $27 million annual run rate after the incremental rent payment to Oak Street.

“We believe this significant, accretive acquisition will drive strategic growth with the addition of an exceptional team, well-known stores and other assets to our family of community brands,” Arko President, Chairman and CEO Arie Kotler said in a statement. “A deal of this magnitude complements our core capabilities and will create long-term value for Arko stockholders and valuable synergies given our existing footprint and proven strategy of adding value to strong local brands while keeping jobs in place.”

Arko Corp. made the Fortune 500 list for the first time in 2022, ranking No. 498. Since 2013, the company has completed 21 acquisitions. In July, Arko acquired Fredericksburg-based Quarles Petroleum, one of the East Coast’s largest fleet-fueling cardlock operators, for $170 million.

Arko now has more than 11,000 employees across more than 3,000 locations. In 2021, the company reported a net income of $59.4 million.

Academy Sports + Outdoors opens first Va. location

Sporting goods retailer Academy Sports + Outdoors has opened its first store in Virginia with a location in Henrico County’s Short Pump area.

The Texas-based Fortune 500 company opened Monday in a 58,075-square-foot store at 11861 W. Broad St. in The Corner at Short Pump, with 60 employees. Its grand opening is scheduled Friday, Aug. 19 through Sunday, Aug. 21 and includes giveaways and appearances by the Richmond Flying Squirrels mascots.

The Short Pump location is the third of nine stores that Academy plans to open in 2022, adding to its 262 stores in 17 states. Founded in 1938, the company has a goal of up to 100 new stores during the next five years, according to a news release. In 2020, the company went public, after its 2011 acquisition by KKR, which purchased the chain from the Gochman family.

The company ranked No. 481 on Fortune 500’s 2022 list with more than $6.7 billion in revenue and more than 16,000 employees.

 

CarLotz to merge with San Francisco’s Shift

Richmond-based CarLotz Inc., the nation’s largest consignment-to-retail used vehicle business, will merge with San Francisco-based Shift Technologies Inc., a similar platform on the West Coast, the companies announced Tuesday.

The companies will combine in a stock-for-stock merger, according to a news release and will trade on Nasdaq under SFT. At the close, the new company will have a cash position of about $125 million, according to a news release. CarLotz’s stock was trading at 57 cents per share on Tuesday; the stock has gradually fallen from its January 2021 height of $11.92 per share, hitting a low of 40 cents per share last month.

CarLotz and Shift have complementary geographies, with CarLotz’s strong presence in the mid-Atlantic and Shift’s West Coast footprint.

“While this is an exciting day for both companies, the merging of Shift and CarLotz will be most beneficial to consumers looking to buy or sell a used car,” CarLotz CEO Lev Peker said in a statement. “Shift’s technology and consumer sourcing abilities combined with our consignment and retail remarketing expertise will provide one extraordinary, omnichannel experience.”

Shift’s CEO also released a statement.

“The Shift and CarLotz teams have admired each other and our respective businesses for quite some time. We’ve always seen a considerable amount of strategic and cost synergies with a combined entity,” Shift co-founder, CEO and Chairman George Arison said in a statement. “We are strongly convinced that the merger will put us in a position to pursue a profitable future. As such, this is a transformative moment in Shift’s history by enabling us to advance our vision to be the end-to-end destination for car ownership that controls its own destiny.”

Under the terms of the merger agreement, CarLotz shareholders are expected to receive approximately 0.692158 shares of Shift common stock for each share of CarLotz common stock, according to the release.

The deal is expected to close in the fourth quarter, subject to CarLotz’s and Shift’s shareholders approvals and other regulatory approvals. Arison will step down as CEO of Sept. 1, but will remain in his position as board chairman; Shift President Jeff Clementz will succeed him as CEO.

CarLotz was founded in 2011 in Chesterfield County before expanding nationwide. It went public in January 2021 after partnering with Acamar Partners Acquisition Corp., a SPAC. Last year, CarLotz announced an expansion of its headquarters in Richmond that would create 192 jobs. Peker, who is based in Los Angeles, took over as CEO of CarLotz in April; he had previously served as CEO of CarParts.com, an online retailer of automotive parts and accessories. He replaced CarLotz co-founder Michael Bor, who left the company in March.

CarLotz’s net revenue in 2021 increased 118% to $258.5 million, from $118.6 million in 2020. Tuesday, the retailer reported its second quarter 2022 earnings, which rose 51% to $76.5 million, up from $50.8 million during the same period in 2021. Retail sales increased 21% from the same period last year.