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I don’t quite understand why the correct answer is A instead of B.
In”B”, “recently” could modify the adjective “extendend” and “had been” refers to an action that happened before the retailer “said” something (therefore, we have a “past before the past”, letting us use the past perfect).

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Stating that one of its many successes has been the recent extended sales hike in men's apparel, the five-store retailer said it would soon open at least two more new stores.

A. its many successes has been the recent: Use of adjective is perfect.

B. its many successes had been the recently: timeline for past activities is not required

C. its many successes is the recently: the recently extended sales - adjective (recent) is required in place of adverb (recently)

D. their many successes is the recent: out as noun (the five-store retailer) is singular. S-V error

E. their many successes had been the recent: out as noun (the five-store retailer) is singular. S-V error
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Extended sales hike is a noun phrase, hence it makes sense to use recent. Additionally the verb «has been» makes more sense tobuse as the stated info was stated in past but stands true to today so «has been» makes it all complete. A is correct due to these reasons.

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