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This
Week's Top Stories in Retail
May
30, 2008
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Kroger
in Partnership with The Little Clinic Cincinnati (May
29, 2008) The Kroger Co. and The
Little Clinic LLC on Thursday announced a partnership aimed at
bringing walk-in medical clinics and consumer-health solutions
to Kroger stores across the country.The Little Clinic
currently operates 26 walk-in medical clinics inside Kroger
stores.
Kroger said it has made a significant
investment in The Little Clinic to support a substantial
clinic rollout. Financial terms of the investment were not
disclosed.
Walgreens
Expanding to Alaska Deerfield, Ill. (May 29, 2008)
Walgreen Co. will open its first
stores in Alaska in 2009,
giving the chain a presence in all 50 states, plus the
District of Columbia and
Puerto Rico.
The first
store is planned for Anchorage, with an opening
date of summer 2009. Two more locations are expected to open
by the end of that year. The company is initially focusing on
Anchorage and Southcentral
Alaska.
Starbucks
Enters Argentina Seattle (May 29, 2008)
Starbucks Coffee Co. is supporting
its international expansion with its first coffeehouse in
Argentina. The
location is set to open Friday.
The store will be a
joint venture between Starbucks Coffee International, a wholly
owned subsidiary of Starbucks Coffee Co., and Operadora
Internacional Alsea, S.A. de C.V., a wholly owned subsidiary
of Alsea S.A.B. de C.V. The store will be located at
Alto Palermo Shopping Center, one of
the country's premiere shopping
centers.
Costco's
Profit Up 32% Issaquah, Wash. (May 29, 2008)
Costco Wholesale Corp. said
Thursday that its quarterly profits jumped 32%, beating
expectations. The company credits the increase to consumers
who are shopping the stores to take advantage of the chain's
discounts on food and gasoline.
Costco reported a net
income of $295.1 million for the fiscal third quarter,
compared to $224.0 million a year earlier.
Blockbuster
Launches In-Store Downloads Dallas (May 29, 2008)
Blockbuster is preparing to pilot
in-store kiosks that will allow customers to download movies
onto their portable devices within two minutes. James Keyes,
Blockbuster's chairman and CEO, revealed the test at the
company's annual shareholder meeting Wednesday.
The
kiosk, designed for the pilot version by NCR, allows shoppers
to search and browse for downloadable films, watch trailers
and buy or rent movies with a credit card or pre-loaded
Blockbuster card. Over time, it will also allow them to
subscribe to kiosk or other service usage.
Barnes
& Noble Launches Mobile
Site New York
City (May 29, 2008)
Barnes & Noble introduced
B&N Mobile on Wednesday. This e-commerce site (www.bn.com/mobile)
is accessible via any mobile device with a Web browser.
However, the application is tailored for Blackberry and iPhone
users.
"Our goal is to serve customers from wherever
they are, in a multitude of platforms," said B&N chief
executive Marie Toulantis.
Sears
Blames Slumping Sales for 1Q Loss Hoffman
Estates, Ill. (May 29, 2008)
Sears Holding Corp. reported a $56
million first-quarter loss Thursday. It blamed the fact that
consumers were spending more of their money to cover the
rising costs of gas and food.
These factors affected
all of the company's divisions. Sears store sales dropped 9.8%
domestically, while Kmart stores sales slumped 7.1%. Total
domestic same-store sales declined
8.6%.
Phillips-Van
Heusen Shuts Geoffrey Beene Outlets New York
City (May 29, 2008)
Phillips-Van Heusen said Wednesday
that it will shutter the 100-unit outlet division of its
Geoffrey Beene menswear brand.
Approximately 25 of the
stores will be converted into Calvin Klein outlets, a brand
the company also operates. These stores are expected to
generate more traffic and higher profits than the Geoffrey
Beene line. The remaining stores will be closed by the end of
the fiscal year.
Sweetbay
CEO Leaves Post Tampa, Fla. (May 29, 2008)
Shelley Broader is leaving her post
as CEO of the Sweetbay Supermarket chain, effective June 15.
She will be accepting a position "in retailing outside of the
supermarket industry," the Delhaize-owned chain said
Wednesday. Broader's successor at the 107-store Sweetbay chain
has not yet been identified.
Broader, who joined
Sweetbay's sister banner, Hannaford Bros., Scarborough, Maine, in 1991, had spearheaded the
conversion of Delhaize's Kash n' Karry chain in Florida
to the Sweetbay format during the last four
years.
DSW
President Rejoins Limited Brands Columbus, Ohio (May 29, 2008)
Limited Brands said Thursday that
Peter Horvath is rejoining the company as executive VP of
business integration, effective at the end of June. He will
report to Martyn Redgrave, executive VP and chief
administrative officer for Limited Brands.
In this
role, Horvath will spearhead a number of operational
strategies and initiatives, according to the company.
Timberland
Opens Franchised Store in Brazil Stratham, N.H. (May 29, 2008)
Outdoor apparel and footwear
company Timberland has opened its first franchised store in
Brazil. The unit is
located at Guarulhos
International
Airport, in Sao
Paulo.
The
unit is being operated by local license partner, Sao Paulo
Alpargatas.The company plans to open three more shops this
year. Two of them will also be through
franchising.
Coach
to Acquire Asian Retail Businesses New York City (May
29, 2008) Coach Inc. said Thursday
that it will acquire its domestic retail businesses in Hong
Kong, Macau and Mainland China from its current distributor,
the ImagineX Group. Besides giving Coach control of its
distribution in this region, the company said that the
acquisition will enable it to directly manage a significant
growth opportunity among Chinese consumers.
There will
be a phased buyout of the current Coach retail businesses in
Hong Kong, Macau and China over the next
year. Thibault Villet, Coach's president, Greater China, will
lead the operations of these businesses.
Finlay
Losses Widen in 1Q New York City (May
28, 2008) Jewelry chain Finlay
Enterprises announced Wednesday that its losses widened in the
first quarter as same-store sales fell and the company's
recently acquired Bailey Banks & Biddle stores failed to
meet expectations.
The loss for the period ended May 3
totaled $11 million, compared with $7.6 million a year ago.
Finlay closed its Parisian stores in fiscal 2007. Excluding
those discontinued operations, the loss for the prior-year
period totaled $7.8 million.
Target
to Carry New Hayek Line Minneapolis (May 28, 2008)
Target has teamed with designer
Sami Hayek-brother to actress Selma Hayek-to carry a new
line of home furnishings and accessories.
Target said
on Tuesday that it would launch Sami Hayek for Target, a
limited-edition collection including items such as bedding,
furniture and stationery.
Sears'
Lampert Ups AutoNation Stake Ft. Lauderdale,
Fla. (May 28, 2008) Sears Holdings
Corp. chairman Edward Lampert has brought his stake in
AutoNation to about 39%, according to an article in the South
Florida Business Journal.
According to Securities and
Exchange Commission filings on Tuesday, Lampert bought about
521,000 shares on May 22 for between $15.44 and $16 each. He
now holds about 69.6 million shares.
Tennessee
Withdraws From Wal-Mart Energy
Partnership Nashville, Tenn.
(May 28, 2008) After having been
selected as one of 19 states to partner with Wal-Mart Stores
in an energy audit program for state capitols, Tennessee
announced that it has changed its mind about
participating.
The announcement came from the
Tennessee governor's office.
According to Wal-Mart spokesman Dennis Alpert, "The governor's
office notified us that they were withdrawing from the
program, and that's all we know."
Borders
Group Loss Narrows
in 1Q Ann Arbor, Mich.
(May 28, 2008) Borders Group Inc.
said its losses narrowed in the first quarter although its
same-store sales fell, and Wall Street greeted Tuesday's
relaunch of the bookseller's retail Web site with a sell-off
of its shares.
Borders Group said it lost $31.7 million
in the three months ending May 3, compared with a loss of
$35.9 million for the comparable period of 2007.
Senior
VP Named for Macy's Regional HQ St.
Louis (May 28, 2008)
Macy's Inc. has named Betsy Zeino
as senior VP, regional director of stores for the Midwest region. She will be based in
St.
Louis, according to the St. Louis
Post-Dispatch.
Zeino, who joined Macy's in 1998, most
recently served as regional VP of stores based in Houston.
Chico's
1Q Profit Falls on Economic Conditions Fort Myers, Fla.
(May 28, 2008) Chico's FAS Inc.
said Wednesday its first-quarter profit dropped 73% as sales
of its core apparel brand dropped and expenses
increased.
The women's apparel retailer reported
earnings fell to $12.7 million compared with $47.2 million a
year earlier.
Polo
Ralph Lauren Profit Rises New York
City (May 28, 2008)
Polo Ralph Lauren Corp. reported a
higher quarterly profit on Wednesday, helped by strong sales,
a lower tax rate and acquisitions. Net income rose to $103.5
million in the company's fiscal fourth quarter, ended March
29, from $73.2 million a year ago.
The company, whose
brands include Polo, Chaps and Club Monaco, said net
revenue increased to $1.24 billion from $1.03 billion a year
ago, as higher wholesale and retail sales offset a decline in
licensing revenue.
Dollar
Tree 1Q Profit Rises 14% Chesapeake, Va.
(May 28, 2008) Strong sales and a
lower tax rate led discount retailer Dollar Tree Inc. to
report Wednesday that its fiscal first-quarter profit grew
14%.
For the quarter ended May 3, net income jumped to
$43.6 million from $38.1 million in the prior year quarter.
Wegmans
to Expand Headquarters Chili, N.Y. (May
28, 2008) Wegmans Food Markets is
expanding its corporate headquarters in Chili, N.Y. The
company has made an application to be heard at the town's
upcoming planning-board meeting.
The plan calls for
creating a 400,000-sq.-ft. office building at their
Fisher
Road location. If approved, 600 to
800 current employees could relocate to the new facility, with
plans to expand by 200 to 300 new positions in the coming
years.
American
Eagle Profit Falls New York City (May
28, 2008) American Eagle Outfitters
said on Wednesday quarterly net profit fell, hurt by greater
markdowns resulting from lower-than-expected sales.
The
company said net profit in the first quarter was $43.9 million
compared with $78.8 million a year earlier. As previously
disclosed, sales rose 5% to $640.3 million in the quarter,
which ended on May 3, but same-store sales fell
6%.
Big
Lots Names Exec Columbus, Ohio (May 27, 2008)
Big Lots announced on Tuesday the
appointment of Christopher Chapin as senior VP of store
operations, effective immediately. Chapin will report to CEO
Steve Fishman and will oversee store standards, field
operations, customer service, process development and program
implementation for the company's 1,300+ closeout retail stores
in 47 states.
Previously, Chapin was with Limited
Brands as VP/store operations and YUM Brands as national
director of operations.
Save
Mart Names COO Modesto, Calif. (May 27, 2008)
Save Mart Supermarkets on Monday
appointed Steve Junqueiro COO of the chain.
The company
also named Mike Silveira chief administrative officer, and
Steve Ackerman acting CFO.
Sears
to Partner with LL Cool J Hoffman Estates,
Ill. (May 27, 2008) Sears Holdings
said Tuesday it plans to launch in its Sears stores an
exclusive apparel line by the rapper and film celebrity LL
Cool J.
Irv Neger, senior VP, apparel, Sears Holdings
Corp. said the move is part of "an ongoing commitment to
increase our relevance in the apparel industry, and bring
fashions to our customers that are both on-trend and
affordable."
Gap
Integrates Web Sites San Francisco (May
27, 2008) The Gap Inc. announced
Tuesday it would integrate its four Web sites-Gap, Banana
Republic, Old Navy and Piperlime-in order to allow the
company's customers to move more freely among the brands'
sites.
As part of the integration, customers will fill
one virtual shopping bag and pay just one shipping fee. Until
now, shoppers had to visit the company's four concept sites
separately to make
purchases.
Mistrial
Denied to Former CVS Execs Woonsocket, R.I. (May 27, 2008)
A judge has denied a mistrial for
two former CVS executives, the company said on Tuesday. The
judge, presiding in the federal corruption trial of Carlos
Ortiz and John R. Kramer-former VPs who are accused of paying
former state senator John Celona to advance CVS's legislative
agenda-formally denied the mistrial but will allow defense
lawyers to question the government's star witness again about
what they believe were his lies under oath.
Lawyers for
Ortiz and Kramer have argued that Celona offered false
testimony last week that contradicted previous statements he
made before a grand jury investigating the case and at an
earlier corruption trial.
A&F
in Anti-Counterfeiting Raids New
Albany, Ohio (May 27, 2008)
Abercrombie & Fitch announced
on Tuesday that the company has embarked on a series of
search-and-seizure efforts throughout Ireland, as part of
its global anti-counterfeiting initiative.
During the
last few months, the company said numerous raids have been
conducted, including several within Dublin.
The retailer indicated that shops across the Irish capital
will receive cease-and-desist letters notifying owners they
are selling fakes
illegally.
Cato
Details Expansion Charlotte, N.C.
(May 27, 2008) The Cato Corp. will
add 40 new Cato stores and 30 new It's Fashion units this
year, company chairman, president, and CEO John Cato said
during the company's annual shareholders' meeting.
"Our
plans for this year are to accelerate It's Fashion store
openings primarily through the development of our It's Fashion
Metro concept," Cato said.
Macy's
Expands CE Kiosks New York
City (May 27, 2008)
Macy's announced the rollout of its
consumer-electronics kiosk units to more than half of its
full-line department stores around the country. The
announcement comes on the heels of a two-year pilot with
ZoomSystems.
Macy's new e-Spot automated shops offer
the latest consumer electronics with touchscreen technology
that processes the transaction and completes the sale. The
machines will offer widely demanded brands including Apple,
Sony, Canon and MyVu.
Vons
Enters Small Store 'Market' Long
Beach, Calif. (May 27, 2008)
Vons has launched a new concept
store The Market in Southern
California.
Vons said that it had been
working on the format for more than a year, according to the
OC Register. The Market opened a 15,000-sq.-ft. location in
Belmont Shore and offers a
scaled-down selection of groceries and a large variety of
ready-to-eat meals.
Borders
to Offer E-Commerce After Seven Years Ann
Arbor, Mich. (May 27, 2008)
Borders Group is jumping back into
online retailing with a Web site after a seven-year
partnership with Amazon.com. The new site is designed to evoke
the feeling of browsing at a neighborhood
bookstore.
Tuesday's launch of Borders.com comes more
than two months after Borders announced it might put itself up
for sale. Just last week, Barnes & Noble Inc. confirmed it
put together a team to study the feasibility of a deal. But
Borders Group Inc. president and CEO George Jones told the
Associated Press that pushing forward with Borders' return to
Web retailing is key-regardless of whether a sale
materializes.
Impairment
Charge Hurts Foot Locker 1Q Results New York
City (May 23, 2008)
Foot Locker Inc. on Thursday said
fiscal first-quarter profit fell, hurt by an impairment charge
and nearly flat sales. Profit for the quarter ended May 3 fell
82% to $3 million compared with $17 million a year ago. Sales
were nearly flat at $1.31
billion.
The
impairment charge is related to a note receivable due from the
purchaser of the company's former Northern Group operation in
Canada, which the
company sold in 2001.
S&P
Names CVS Drug Store of Choice New York
City (May 23, 2008)
Standard & Poor's has named CVS
the drug store of choice, citing the chain's growth
opportunities in retail and pharmacy benefit management. As
reported in BusinessWeek, S&P said that it believes CVS
Caremark is "well positioned for market-share gains, following
the acquisition of Caremark Rx in March 2007, and the
continued turnaround of recent drug store acquisitions."
S&P
also said that it has a positive outlook on the future of the
U.S. drug store
industry, as an aging population will mean an increase in
demand for prescription
medications.
Books-A-Million
1Q Profit Drops, Cuts Jobs Birmingham, Ala. (May 23, 2008)
Books-A-Million Inc. reported that
its net income dropped by more than 57% in the first quarter
of 2008.
Net income for the company's first quarter
dropped to $900,000 compared to $2.1 million in its first
quarter last year.
Giant
Eagle Expands Generic Drug Program Pittsburgh (May 23, 2008)
Giant Eagle Inc. said Thursday
that, effective immediately, it will begin offering a 90-day
supply of more than 400 generic drugs for $10. The program is
available at 205 Giant Eagle pharmacy locations in Pennsylvania, Ohio, West
Virginia and Maryland.
The
program expands on Giant Eagle's success in offering 30-day
supplies of some 400 generic drugs for $4, launched in
November 2006.
Kroger
Extends Gas Discounts Cincinnati (May 23, 2008)
Kroger Co. has expanded its gas
discount program across its regions.
Most of the
regional fuel-discount programs in the Kroger Co.'s chain give
regular shoppers 10? off per gallon at company gas stations
for every $100 they spend in a Kroger store. But the programs
previously weren't carried over between regions, so a
vacationing shopper at a Kroger-owned Ralphs store in
California, for instance,
didn't get the spending credit for the discount back home in
Cincinnati.
Report:
Consumers View Economy in Worst
Condition Columbus, Ohio (May 23, 2008)
About 3 in 5 Americans (62.3%)
believe the economy is in the worst shape they have
experienced in their lifetime, according to the May American
Pulse Survey.
About 77.1% of Democrats and people
between 18-34 years old (65.8%) are most likely to echo this
sentiment, the report said.
Dillard's
1Q Profit Drops 94% New York City (May
23, 2008) Dillard's Inc. said
Thursday its fiscal first-quarter profit tumbled 94% on a
sharp decline in same-store sales, fueled by a weak economic
environment.
For the period ended May 3, the company
reported income of $2.7 million compared with $42.9 million in
the year-ago
quarter |
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Pattie
L. Hoffman | Project Administrator, on behalf of Anthony Buono
CB
Richard Ellis | Retail Services
4141 Inland
Empire Blvd., Ste 100 | Ontario, CA
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T 909 418
2298 | F 909 418 2230 pattie.hoffman@cbre.com
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