Consumer Affairs & Relations

The actions this week by two state attorneys general over the constitutionality of President Trump’s overseas business dealings have very little to do with the P&Ss of retail and restaurant owners. But here’s why it matters to your business and employees:  In the grand scheme of things, their legal maneuvering it is a stinging reminder of the role attorneys general play and how, in other circumstances critical to our business models and industry, they can have a seriously negative impact.

Already under the gun to improve business operations, Whole Foods Markets’ founder and CEO finds himself in a new struggle.  

The clear signal sent by these first quarter numbers is that J. Crew is a company in trouble. As much as the business is used to decline, the accelerated pace of deterioration, as evidenced by the 6.3% drop in overall sales and the 12% fall in J. Crew comparables, is worrying. That this weakness comes off the back of negative prior year numbers suggests that the company has not yet reached rock bottom.  

Neiman Marcus Group is going it alone — at least, for now.

Out-of-state Web-based retailers are taking a stand against paying sales tax in the state of Massachusetts.   According to a directive from the Department of Revenue, any online retailer vendor headquartered outside of the state is required to register, collect and remit sales tax. In Massachusetts, this is 6.25%. The directive applies to companies that sold more than $500,000 annually in the state and made sales for in-state delivery in 100 or more transactions.  

Social media may be a popular platform for ad delivery, but that doesn't mean it is a trusted one.   Despite listing social media as the source of the second-highest volume of ad messages they receive — behind only television — consumers ranked social media last among their most trusted channels, according to a study by the Chief Marketing Officer Council. Consumers ranked friends, television, search engines and newspapers as more trusted sources.  

Lowe's is making another round of job cuts.   The home improvement chain is laying off some 125 information technology workers and many of the jobs to India, The Charlotte Observer reported. Lowe’s currently employs approximately 1,000 people in information and technology and analytics in Bangalore, India.   

Ascena Retail Group, operators of such brands as Ann Taylor, Lane Bryant and Dressbarn, is planning to close hundreds of stores. The news came on the heels of a brutal third quarter.   The company reported a net loss of $1.031 billion, or $5.29 per diluted share in the third quarter ended April 29, compared to net income of $15 million last year, or $0.08 per diluted share, in the year-ago quarter.   

It appears that L'Oreal has settled on a buyer for The Body Shop.   The French cosmetics giant is in exclusive talks to sell its Body Shop division to Brazilian make-up company Natura Cosmeticos, Bloomberg reported. The reported price: $1.1 billion,   Natura is the largest Brazilian cosmetics company.   The transaction would be subject to regulatory approval and would be expected to close later this year.    

Approximately 80% of low-income households will not opt for Amazon's new discounted Prime program.    That's according to a broadlines and hardlines retail report by Gordon Haskett Research Advisors analyst Chuck Grom, which looks at Amazon, Walmart, Dollar General and Dollar Tree as Amazon announced discounted Prime membership for those on federal assistance. Here are excerpts from Grom's report: