Dillard's 4Q Profit Tumbles
Little Rock, Ark. (March 20, 2008) Dillard's Inc. said its fiscal fourth-quarter profit plunged 70%, hurt partly by one less week in the period and a smaller tax benefit.
The company reported late Wednesday that earnings fell to $47.3 million compared with $155 million in the previous year.
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Borders Explores Sale
New York City (March 20, 2008) Borders Group on Thursday suspended its quarterly dividend and said it was reviewing strategic options, including the sale of some or all of its businesses.
The company, which also posted a quarterly profit, said its largest shareholder, Pershing Square Capital Management, had offered to purchase some of its businesses in Australia, New Zealand, Singapore and the United Kingdom for $125 million.
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Children's Place to Exit Disney Store Business
New York City (March 20, 2008) Children's Place on Thursday said it is in advanced talks with The Walt Disney Co. for Disney to regain ownership of two-thirds of Disney Stores in North America.
Disney confirmed it was talking about potentially buying back a portion of the Disney Store chain, which Children's Place has operated under a license.
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Starbucks Announces New Upgrade
Seattle (March 20, 2008) Howard D. Schultz, the CEO of Starbucks, announced on Wednesday changes for the company as it seeks to reconnect with customers who have left for competitors or pared back their coffee budgets in hard economic times, according to the New York Times.
The initiatives are intended to restore an authentic coffeehouse experience to the stores, said Schultz, and in turn re-energize an ailing stock that has lost half its value in the last 15 months.
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Barnes & Noble 4Q Profit Drops
New York (March 20, 2008) Barnes & Noble reported a 9% decline in fourth-quarter profits Thursday amid a challenging retail environment.
Barnes & Noble said that it earned $115.04 million in the three-month period ended Feb. 2, compared with $126.73 million in the year-ago period.
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Hy-Vee to Test Smaller Store Model in Nebraska
Lincoln, Neb. (March 20, 2008) Hy-Vee Inc. is planning to test a small format in Lincoln, Neb. that will serve a neighborhood where the employee-owned chain is closing its full-sized supermarket.
The store will be approximately 20,000 to 25,000 sq. ft. larger than a convenience store and without the limitations of that format, but smaller than Hy-Vee's metropolitan supermarkets.
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Nordstrom Partners with Rocker on Clothing Line
Seattle (March 20, 2008) Nordstrom said it will begin selling a line of clothing designed by musician Pete Wentz of the pop rock band Fall Out Boy, according to the Puget Sound Journal.
The company said the clothes will be made by Wentz's Clandestine Industries and designed by Wentz and the Nordstrom Product Group in-house design team. They'll be sold in Nordstrom's junior department BP.
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Dick's Sporting Goods Partners With Reebok
Pittsburgh (March 20, 2008) Dick's Sporting Goods Inc. announced a partnership with Reebok through which the sports apparel-maker will launch a men's and women's clothing collection that will be featured in all 340 Dick's stores in the United States.
No financial terms of the partnership were disclosed in a news release from Reebok, which has headquarters in Canton, Mass., and is a subsidiary of adidas.
Macy's to Start New Celebrity Ads
Cincinnati (March 19, 2008) Macy's has brushed up its spring campaign with two new ads and its first celebrity ad in Spanish, according to the Associated Press.
The company plans to debut the Spanish version of the spot featuring guitarist Carlos Santana and R&B singer Mariah Carey on Sunday, with the English version of that and another ad with Calvin Klein model Gabriel Aubry rolling out in network primetime next week.
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Charlotte Russe Extends Offer Deadline
San Diego (March 19, 2008) Charlotte Russe Holding Inc. said Wednesday its board approved an extension of the expiration date of its modified "Dutch Auction" tender offer.
The tender offer was originally set to expire at 5 p.m. on Thursday and will now expire at 5 p.m. on April 2, the company said.
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Charming Shoppes Reports 4Q Loss
Bensalem, Pa. (March 19, 2008) Charming Shoppes Inc. said Wednesday it swung to a loss in its fourth quarter as sales at stores open at least a year fell at each of the company's brands.
For the quarter ended Feb. 2, the company reported a loss of $127.6 million, compared to a profit of $24.9 million in the prior-year quarter.
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Michaels CFO Resigns
Irving, Texas (March 19, 2008) Michaels Stores announced that Jeffrey Boyer, president and CFO, will resign effective April 4.
Michaels will conduct a search for a replacement CFO and will consider both internal and external candidates, the company said.
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Payless to Remain at Former WiseBuys Stores
Topeka, Kan. (March 19, 2008) Payless ShoeSource, which operates Payless stores within the company's wholly owned subsidiary WiseBuys Stores, will continue to operate its Payless "store-within-a-store" concept after the WiseBuys stores are converted into Hackett's.
Seaway Valley Capital Corp. acquired both WiseBuys Stores, Inc. and Patrick Hackett Hardware Co. in 2007 and is merging the operations of the two retailers under the "Hackett's" brand. Hackett's will also roll out a variety of branded footwear in the former WiseBuys stores. After the store conversions, Hacketts will operate nine locations including Canton, Gouverneur, Hamilton, Massena, Ogdensburg, Potsdam, Pulaski, Tupper Lake, and Watertown-all in New York. Hackett's is also seeking additional locations in New York, Vermont, Massachusetts, Connecticut and Pennsylvania.
Study Shows Fewer Shopping Trips
Schaumburg, Ill. (March 18, 2008) A Nielsen study revealed that consumers are combining errands and making fewer shopping trips. Reasons behind the trend, according to The Nielsen Co. report released on Monday, include high gas prices and other economic pressures.
Nielsen's consumer packaged goods (CPG) research showed that while shopping frequency across most retail channels is flat or declining, supercenters, which enable consumers to combine shopping trips with more items in one store, continue to show growth.
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Wal-Mart to Make Seiyu Wholly Owned
Tokyo (March 18, 2008) Wal-Mart Stores announced Tuesday it will make Seiyu Ltd. a wholly owned unit. The world's largest retailer said it seeks the flexibility it needs to turn around the long-unprofitable Japanese supermarket operator Seiyu, Japan's fifth-biggest retailer by sales.
According to Wal-Mart, the move received approval at its shareholders meeting earlier Tuesday, enabling Wal-Mart to buy the remaining stake it doesn't already own in Seiyu. The approval cleared the way for Wal-Mart to boost its stake in Seiyu to 100% from about 96%. Seiyu has struggled in the intensely competitive Japanese market since Wal-Mart first invested in it in 2002 and hasn't made a net profit on an annual basis since then.
Hannaford Reveals Huge Breach
Portland, Maine (March 18, 2008) Hannaford Bros. grocery chain announced late Monday it has experienced a security breach that has exposed more than 4 million card numbers and led to 1,800 cases of fraud.
Hannaford said credit- and debit-card numbers were stolen during the card-authorization process and about 4.2 million unique card numbers were exposed, placing the case among the largest data breaches in history.
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Office Depot Faces Down Dissidents
Delray Beach, Fla. (March 18, 2008). Office Depot, Inc. advised stockholders on Tuesday to reject an attempt by Levitt Corp., a Florida-based real estate development company, and Woodbridge Equity Fund LLP, its wholly owned subsidiary, to nominate two dissident directors to the Office Depot board at this year's annual meeting of stockholders.
The meeting is currently scheduled for April 23, 2008.According to Office Depot, The Woodbridge Group is attempting, through the nomination of its two dissident directors, to remove Office Depot current chairman and CEO Steve Odland and former chairman and CEO David I. Fuente from the board.
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Study Examines Attitudes Toward Supermarkets
Baltimore (March 18, 2008) A Vertis Communications study released on Tuesday examined consumer attitudes toward supermarket offerings and non-traditional grocery outlets, finding grocery prices and sales are most important to female shoppers, and convenience and service is most attractive to men.
The "Customer Focus 2008: Grocery" study revealed that almost half of chief female shoppers said price-related offerings such as lowest everyday prices, best advertised specials and store coupons were most important in deciding where to spend their grocery dollars. Forty-eight percent of women age 35-49 who do more than 60% of the grocery shopping value these offerings, as do 47% of chief female shoppers age 50 and older, and 46% of chief women shoppers age 18-34.
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Wal-Mart Continues Green Push in Vegas
Bentonville, Ark. (March 18, 2008) Wal-Mart has installed a technology at a new supercenter in Las Vegas that is lowering energy consumption and reducing its carbon footprint. The system was designed and manufactured by Hill Phoenix, a manufacturer of commercial refrigeration systems based in Conyers, Ga.
The Second Nature technology has been installed in what Wal-Mart calls its second-generation, High-Efficiency store (HE.2) designed to use 25% less energy than a baseline Wal-Mart Supercenter. It significantly reduces the carbon footprint by lowering refrigerant charge by 75%.
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CVS Caremark to Settle Medicaid Fraud Case
Chicago (March 18, 2008) Authorities investigating a Medicaid fraud case involving CVS Caremark Corp. said Tuesday the CVS Caremark has agreed to pay almost $37 million to nearly two dozen states and the federal government. The payment is in settlement of claims that CVS Caremark billed Medicaid programs for a more expensive formulation of an antacid.
The settlement in the case-the first of its kind for a retail pharmacy company-came after a lengthy investigation that began in 2001, when a suburban Chicago pharmacist alerted authorities.
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Staples Confirms $3.67 Billion Corporate Express Offer
Framingham, Mass. (March 18, 2008) Staples Inc. announced on Tuesday that it will offer $3.67 billion to acquire Corporate Express Inc., although the Dutch office-supply wholesaler has already rejected it.
Staples also said it will submit the offer to a Netherlands regulatory agency before May 13.
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Wal-Mart Continues Green Push in Vegas
Bentonville, Ark. (March 18, 2008) Wal-Mart has installed a technology at a new supercenter in Las Vegas that is lowering energy consumption and reducing its carbon footprint. The system was designed and manufactured by Hill Phoenix, a manufacturer of commercial refrigeration systems based in Conyers, Ga.
The Second Nature technology has been installed in what Wal-Mart calls its second-generation, High-Efficiency store (HE.2) designed to use 25% less energy than a baseline Wal-Mart Supercenter. It significantly reduces the carbon footprint by lowering refrigerant charge by 75%.
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Walgreens Brings Health-Clinic Services to Workplaces
Deerfield, Ill. (March 17, 2008) Walgreen Co., which added its retail health-clinic concept to locations last year, is taking those services into large-company work sites with a pair of acquisitions announced Monday.
Walgreen Co. said it is establishing a new Walgreens Health and Wellness division with the planned purchase of I-trax Inc., based in Chadds Ford, Pa., and Whole Health Management of Cleveland. Walgreens said it is buying I-trax for $278 million in cash, but it did not disclose terms of the Whole Health transaction.
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Urban Outfitters Explores New Concepts
Philadelphia (March 17, 2008) Urban Outfitters CEO Glen Senk last week disclosed a series of initiatives for the company's Anthropologie, Free People and Urban Outfitters banners. These include everything from entering new categories to creating different retail formats and concepts.
Senk told Women's Wear Daily that there are about 12 concepts the company is thinking about right now. A board meeting is slated for April to focus on these ideas.
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Kroger Adds Online Coupon Service
Dulles, Va. (March 17, 2008) Kroger has become the first retailer to endorse Shortcuts, a new free service for paperless online coupons from AOL.
The program allows customers, via the Shortcuts Web site, to set up an account using the store loyalty card they use at any Kroger store.
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Nordstrom to Offer Recyclable Bags, Boxes
Seattle (March 17, 2008) Nordstrom Inc. said Friday it will start offering recyclable shopping bags and gift boxes as well as a reusable shopping tote bag to customers this year.
The company will sell the linen tote bag for $21.95, starting on Saturday in West Coast markets. It will expand the product across the country throughout the year.
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Bath & Body Chief Marketing Officer Resigns
Solon, Ohio (March 17, 2008) Bath & Body Works chief marketing officer, Anne Martin-Vachon is leaving the company, according to Women's Wear Daily. The search for a replacement is reportedly underway.
Before she was recruited to B&BW, a division of Limited Brands, in 2006, she was VP, global cosmetics at Procter & Gamble, working on such brands as Cover Girl, Max Factor, Olay, Ivory and Crest.
Talbots to Close 20 Stores
Hingham, Mass. (March 17, 2008) On the heels of its March 12 report that it experienced a 4Q net loss of $171 million, Talbots Inc. announced Monday that it plans to close 20 underperforming stores in 2008. The company has not yet publicly identified the stores that will close.
Talbots said it had slowed its growth plans for the year as the company struggled.
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Wal-Mart Rx Plan Saves Customers $1 Billion-Plus
Bentonville, Ark (March 14, 2008) Wal-Mart Stores Friday that it has saved U.S. consumers more than $1 billion with its $4 prescription plan. The plan launched in September 2007.
Dr. John Agwunobi, senior VP and president of health and wellness at the retailer, noted that the plan had further-reaching implications because many of Wal-Mart's competitors cut their prescription prices as well.
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Tommy Bahama Names New CEO
Seattle (March 14, 2008) For the first time in its 15-year history, Tommy Bahama is getting a new chief executive, according to the Seattle Times.
Parent company Oxford Industries said retail-industry veteran Terry Pillow will step in when Tommy Bahama CEO and founder Tony Margolis retires June 1.
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Correction: Coach Appoints New COO
New York City (March 14, 2008) A story posted Monday on www.chainstoreage.com and carried electronically in the CSA Weekly Newsletter incorrectly identified Jerry Stritzke as the new CEO of Coach. In fact, he will succeed Keith Monda, Coach's current president and COO, upon his retirement at the end of this fiscal year-June 28. Monda will remain a member of the company's board of directors.
Stritzke, whom Coach also appointed as an executive officer, effective March 17, joins the company from Limited Brands, where he most recently held the position of COO and co-leader of Victoria's Secret, which included oversight for Victoria's Secret Stores, Victoria's Secret Direct, Victoria's Secret Beauty and Pink. Prior roles at Limited Brands included CEO of Mast Industries, a wholly owned subsidiary of the Limited and a sourcing organization and supplier of merchandise for Victoria's Secret, Express, Abercrombie & Fitch and Limited Stores.
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Easter Spending to Reach $14.4B
Washington, D.C. (March 14, 2008) With Easter falling on March 23, the earliest Easter since 1913, consumers will be welcoming the first tastes of spring while planning for the holiday.
According to the National Retail Federation's 2008 Easter Consumer Intentions and Actions Survey, conducted by BIGresearch, consumers are expected to spend a total of $14.44 billion on Easter food, apparel, gifts, flowers, decorations and candy. The average consumer will spend $135.03 on the holiday, similar to last year's expected $135.07.
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Talbots Appoints New Marketing Chief
Hingham, Mass. (March 14, 2008) Talbots Inc. said Friday it has created a chief marketing officer role as part of its strategy to refresh the clothing retailer's brand. Talbots appointed Lori Wagner to oversee all advertising, catalog development and direct marketing.
Wagner most recently served as chief marketing officer of Cole Haan's Nike division, where she was responsible for the repositioning of the brand and all aspects of worldwide marketing and advertising.
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Hallmark to Stop Some Online, Catalog Sales
Kansas City (March 14, 2008) Hallmark Cards Inc. will stop online and catalog sales of flowers and gifts at the end of April.
Nearly 100 employees will be affected by closing the direct-to-consumer business, which had been marketed through the company's Web site and catalog.
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Restructuring Costs Hurt AnnTaylor 4Q
New York City (March 14, 2008) AnnTaylor Stores Corp. said Friday it swung to a fourth-quarter loss, hurt by costs related to a restructuring program and falling traffic at its namesake stores
Losses for the quarter ended Feb. 2 totaled $6.7 million vs. a profit of $21.5 million last year. Revenue fell nearly 2% to $600.8 million from $610.5 million in the year-ago quarter, which contained an extra week.
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I get this from the CBRE national retail director. -Richard
CBMS's average coupon rate, as reported by Market Watch, improved relative to Conventional from last week by 24 b.p.
Posted by: Richard
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±200 people from their real estate department where laid off last week– down from about 600 people.
- Most of these were in east coast markets where they had 5/6 people in a region, and are now down to 1.
- Nearly all of the So Cal real estate staff is being retained.
- The number of stores they are going to be closing is going to be in the hundreds…..but most of those will be the ones inside the Targets, banks, grocery stores, etc..
- Plans still call for 600 new store openings in the US
- CA focus in going to be on drive thru location (except in urban areas, etc.)
- Not only did Howard Schultz take back the reins as CEO, he also brought back the original real estate boss (who did the first 4,000 stores), who in-turn is rehiring most of the original team at the boardroom level of the real estate dept.
- They are definitely going back to the core, and that includes their menu – they will be getting rid of their breakfast sandwiches, and probably a lot of other stuff that takes away from their core identity.
This is all fairly public knowledge, but I thought this was a good So Cal focused update. I've wondered how the Starbuck's within a store concept was doing. I guess that's the answer.
Posted by: Richard
