Retail News For the Week

Earlier this month, Cache said its December sales were weaker than expected, and lowered fourth-quarter expectations.

Best Buy spokesman Ron Channg denied media reports that Lu's departure was related to the division's failure to meet targets.

"Our sales results grow by the day. The fact that we're going to open our second store in China next week demonstrates our optimism about our prospects in China," Channg said.

Best Buy is still seeking a successor for Lu.

“The proposal put forth today is simple, targeted economic stimulus that will quickly put money into consumers’ pockets where it can boost economic growth by creating demand throughout all sectors of the economy,” NRF senior VP for government relations Steve Pfister said. “Given the financial stress that consumers will be under in the coming year, stimulus legislation is essential to the health of our nation’s economy and to the jobs that rely upon the strength of that economy.”

However, with consumers grappling with high debt, rising food and fuel costs, and negative savings, some retail experts said the proposed $150 billion stimulus package would not do enough to spur flagging consumer spending.

"Everybody recognizes that the stimulus is not going to do anything on a permanent basis. It's just a drop in the bucket," said Howard Davidowitz, chairman of New York-based retail consulting firm Davidowitz & Associates Inc.

Chief executive Lee Scott outlined plans in a speech Wednesday to push for more energy-saving products for Wal-Mart shoppers, work with other retailers on social and environmental standards for the foreign companies they buy from, and trim prescription and health-records costs at home. He spoke before about 7,000 Wal-Mart store managers in Kansas City, where the company holds a convention center meeting at the start of every year to look at new products and sales plans for the year ahead.

Scott said the effort follows on goals he set in 2005 that started Wal-Mart's current drive to use less energy in its stores, cut down solid waste from things such as packaging and sell more environmentally friendly products.

Scott laid out three areas for Wal-Mart's attention. He said rising energy costs are hurting Wal-Mart customers, so the retailer will work with its suppliers to offer more energy-saving products. A Wal-Mart statement said this would include making its most energy-intensive products, such as computers, microwaves and water heaters, 25% more efficient within three years. It will also seek to cut power use by the flat-screen televisions it sells by 30% by 2010.

In the second area of attention, Wal-Mart will launch an effort with other major retailers to improve social, ethical and environmental standards among its global suppliers. The chain will work with the international retail body CIES to come up with those standards and find a way to share joint auditing of foreign factories, which now are visited by inspectors from many individual customers.

In the third area of attention, U.S. health care, Scott said Wal-Mart can help drive down the costs of prescriptions beyond the $4 generic drugs it has introduced. The retailer will contract with "select employers" to help them manage their employee prescription claims and processing.

It will also work with doctors to increase the number of electronic prescriptions, which it said would save costs compared to paper records, and introduce electronic health records for all its U.S. employees and retirees by the end of 2010.

According to a Securities and Exchange Commission filing, Bett will leave the company March 15.

Bett joined Pacific Sunwear in 2005 from Limited Brands Inc., where she served as VP and general merchandise manager of Express Men's stores. Limited sold its majority stake in the Express brand in July.

Early this month, Pacific Sunwear said it will close its 154 Demo stores as the result of a review of strategic alternatives for the urban-apparel brand. The company had already closed 74 underperforming Demo stores last May. The closures will be completed by May of this year.

Pacific Sunwear said Bett will be entitled to receive benefits under its executive severance plan.

Leading the charge: robust sales of Macintosh computers. The company sold 2.3 million Macs, up from 1.6 million the year before.

However, sales for the iPod aren't climbing with the same speed as before. Apple said it sold 22 million iPods in the first quarter, compared with 21 million the year before.

Apple's sales results got a big boost from the iPhone. Apple said it sold 2.3 million iPhones (at $399 apiece) in the quarter. All told, some 4 million iPhones have been sold since their late June launch.

In addition to Ullman's appointment, Philip Francis, chairman and CEO of PetSmart, has been elected as first vice chairman of the board, chairman of the finance committee and treasurer. Meanwhile, chairman and CEO of Saks, Stephen Sadove, will take on the role of second vice chairman of the board.

Kip Tindell, chairman and CEO of The Container Store, was named chairman of the awards and nomination committee.

Each will serve a two-year term.

No reason was given for his departure. Since he is not expected to be replaced, other executives will assume his duties.

In November, the company reported third-quarter profit rose 3% on higher retail, Internet and catalog sales, beating Wall Street expectations.

Wal-Mart said that 7.3% of its sales associates had no health insurance, down from 9.6% a year ago.

According to a survey of 802,091 employees, Wal-Mart said 50.2% had a Wal-Mart health plan, while 22.3% were insured by a spouse's plan, 4.3% by Medicare and 4.2% by their parents, school or college.

"With 690,970 associates—and more than 1.1 million people in total—now covered by Wal-Mart’s plans, we can see that the improvements we’ve made are being embraced by our associates and their families," said Linda Dillman, Wal-Mart's executive VP of benefits and risk management.

The company also said it will commission a study to better understand why some workers declined coverage and to identify things that can be done to encourage them to accept it in the future.

Shanahan has been with the specialty apparel retailer since 1992. During her tenure, she held various positions and increased her responsibilities within a variety of areas, including real estate, social responsibility, government affairs and public policy, loss prevention and The Gap Foundation.

She became general counsel in 1998 and corporate secretary in 2000.

Sears Holdings said it will have five business units under the new decentralized structure, each focused on specific categories and capabilities. These units are: operating businesses, support, brands, online and real estate. Each unit will have a leader and advisory group. Senior Holdings executives will oversee performance.

"We are convinced that our businesses can operate more efficiently and effectively, and we continue to look for ways to make that happen," said Sears Holdings chairman Edward S. Lampert.

Sears Holdings was formed after the 2005 merger of Kmart and Sears. At that time, the company initially focused on a centrally managed structure to control costs and focus on integrating the two companies. The new corporate structure, however, will "create smaller, focused teams that are clearly responsible for their units,” Lampert said. “These units will increase autonomy and accountability, create greater ownership and enable faster, better decisions.”

The operating business unit will focus on current product lines, such as appliances, apparel and electronics. Support will include marketing, store operations and customer strategy. The real estate and online units will focus on increasing the sales productivity of real and virtual holdings.

Sears Holdings has reported profit declines for the past two quarters, and sales at stores open at least a year have fallen at both Kmart and Sears for the past seven quarters.

In a filing with the U.S. Securities and Exchange Commission, the company said it expects to take an accounting charge of about $200 million for severance and related costs associated with the layoffs.

Sprint Nextel said it expects to complete the job cuts in the first half of the year, with final reductions complete by the end of June. The cuts will include management and non-management positions throughout the company.

The report, which quoted sources familiar with the situation, said that Whitman recently began delegating more daily responsibilities and was completing succession plans. John Donahoe, president of eBay’s auction business unit, is reportedly the leading candidate to succeed Whitman, the report said. eBay did not comment on the matter.

Whitman, one of the country’s most high-profile executives, joined eBay 10 years ago. At that time, she said no chief executive should stay in their position for more than a decade for the benefit of the executive and the company.

Despite the company’s slower growth recently, eBay has grown into one of the Internet’s most visited sites under Whitman’s leadership.

eBay will announce fourth-quarter results on Wednesday.

Whole Foods is jump-starting the initiative by declaring Tuesday “Bring Your Own Bag Day.” The chain will give out more than 50,000 reusable shopping bags to customers at checkouts. Also, beginning immediately, each Whole Foods store will work on depleting stocks of disposable plastic grocery bags at the checkouts and will help raise awareness about the benefits of reusable bags.

"We hope to inspire shoppers to prompt positive environmental change by adopting the reusable bag mind-set," said A.C. Gallo, co-president and COO, Whole Foods Market.

William Blair & Co. will assist the chain’s management team in developing strategies to strengthen its competitive position, increase shareholder value and better communicate its value proposition to shareholders and other stakeholders.

Sears Holdings chairman Edward Lampert sees the move as a way to revitalize the company in the face of tough competition from companies such as Wal-Mart Stores Inc., the newspaper said, citing unnamed people familiar with the situation.

Spokeswoman Kimberly Freely issued a short statement Saturday confirming Sears Holdings is "introducing an organizational structure that provides operating businesses with greater control, authority and autonomy." She declined to comment further.

Sears spokesman Chris Brathwaite told Bloomberg News via e-m-mail Saturday that each of Sears’ business units will have a designated leader and a group of executive advisors to oversee performance, according to USA Today.

The company's more than 1,000 trucks will run on biodiesel made from soy or canola oil.

The switch to biodiesel is part of Safeway's campaign to make its operations more environmentally friendly.

Bennet previously worked with May Department Stores Co. for more than 27 years.

The company said it would offer lower premiums to workers who demonstrate that they live a healthy lifestyle

The Safeway plan will be connected to the company's online FoodFlex service, which launched in November as a way to encourage healthy shopping. Participating customers provide details on their family's health and lifestyle and are given nutritional analysis of their store purchases, delivered through their Safeway card.

Menzer began his Wal-Mart career in 1995 as the company's CFO and was promoted to president and CEO of Wal-Mart International in 1999.

The chain said it will phase out the operations of its distribution center in North Canton, Ohio, during the next two months. Currently 234 people work at the center.

Trans World, which sells music, videos and other items through such stores as F.Y.E. and Suncoast, will use centers in Albany and Carson, Calif., to service its current retail locations.

Also, Trans World said it will close its Johnstown, N.Y., fixture facility, where 18 are currently employed. No timeframe was given for its closure.

Wal-Mart and 1-800 Contacts plan to integrate their in-store, Internet and phone services beginning in the fall.

Details of the agreement were not disclosed, but it will combine 1-800 Contact's services with the care of independent eye doctors at nearly 3,000 Wal-Mart and Sam's Club stores.