Retail IPOs face a litmus test with Jersey Mike’s and Reformation

Jersey Mike’s, the Blackstone-backed sandwich chain, targets up to $1.09 billion by pricing shares between $21 and $25, aiming for an $8 billion valuation. Meanwhile, the Permira-owned fashion retailer Reformation is seeking up to $239 million with a price range of $15 to $17 per share, valuing the brand at roughly $1 billion. These offerings arrive as the broader U.S. IPO market experiences a tech-driven boom, yet the retail segment remains stalled with only five listings recorded by LSEG data this year.

Rohit Singh, head of retail investment banking at Morgan Stanley, notes that while the threshold for a successful public debut has risen, certain business models remain well-positioned to capture market share. Previous retail entrants from the 2021 surge, such as Mister Car Wash and Weber, struggled significantly, often leading to privatization after lackluster stock performance. A strong showing for Jersey Mike’s and Reformation could break this cycle, potentially clearing a path for other companies in the pipeline, including Cumberland Farms and Tailored Brands, to finally move forward with their own public offerings.