Finance & Capital Management

Fort Myers, Fla. – Chico’s FAS Inc. announced plans to open 40 new stores and spend $30 million rolling out new POS systems, including mobile technology, in fiscal 2015. But the retailer also said it would shutter 120 existing locations over the next two years to improve its overall store fleet productivity and slash jobs. The closings are expected to ultimately result in expense savings of approximately $55.2 million upon completion.

The CEO of Sprouts Farmers Market Inc. credits consumers’ increasingly strong “desire to eat healthier” with his company’s big sales surge in the fourth quarter.

The Arizona-based company posted sales of $734.6 million, an increase of 21%, for the fourth quarter ended Dec. 28. Same store sales were up 8.5%.

By John Orr, Ceridian

With the Affordable Care Act, employers’ new reality is here, right now — and contrasts starkly with the past: Retailers that run payroll, time and attendance, scheduling, and benefits administration the way they used to will probably run afoul of the Employer Mandate, also known as “Play or Pay.”

St. Petersburg, Fla. – HSN Inc. had a successful fourth quarter of fiscal 2014, beating Wall Street estimates for both net income and sales. Net income rose 11% to $68.3 million from $61.6 million, while net sales grew 10% to $1.12 billion from $1.1 billion.

Digital grew 12%, reaching a milestone of representing more than half HSN’s business. Mobile remains the company’s fastest-growing platform with growth of 40% in the quarter.

Washington, D.C. -- Walmart and the Walmart Foundation announce an initial investment of $16 million to seven national nonprofit organizations, as part of a new Opportunity initiative, a $100 million commitment to help increase the economic mobility of entry level workers in retail and adjacent sectors. The $100 million commitment was first announced last week by Walmart president and CEO Doug McMillon, in conjunction with the roll out of new opportunities and enhanced benefits for Walmart associates.

Chico’s FAS Inc. has revealed plans to close more stores, cut jobs and decrease its capital spending to $100 million for fiscal 2015, a 29% decrease to its three-year average.

New York -- Jay Carney, former White House press secretary for the Obama administration and current CNN analyst, has been appointed senior VP of worldwide corporate affairs for Amazon, effective March 2. The newly created position brings Amazon’s worldwide public relations and public policy shops into one department under Carney.

The news was first reported by Politico, which noted that Carney will leave CNN and divide his time between the online retail giant’s headquarters in Seattle and Washington, D.C.

Plano, Texas -- J.C. Penney swung to an unexpected loss in its fourth quarter amid heavy holiday discounter. But the retailer reported strong, better-than-expected sales, particularly on the online front.  

Penney posted a loss of $59 million for the quarter ended Jan. 31, compared to a profit of $35 million in the year-ago period. (Penney benefitted from a one-time tax benefit last year.)
 
Total sales rose 2.9% to $3.89 billion from $3.78 billion a year ago. Online sales rose 12.5% to $428 million from a year ago.