Finance & Capital Management

Bentonville, Ark. – U.S. Magistrate Judge Erin Setser has recommended that Wal-Mart Stores Inc. and former Wal-Mart CEO Mike Duke face a shareholder lawsuit alleging they concealed corrupt activities at Wal-Mart’s Mexican operation.

The suit, filed by a Michigan pension fund, claims Wal-Mart knew of bribery allegations involving its Wal-Mart de Mexico business in 2005 and conducted an internal investigation in 2005 and 2006, but never notified shareholders.

Gap had a good April in terms of sales, and a large part of the reason is the company’s Old Navy banner.

The company reported that April net sales increased 10% to $1.33 billion for the four-week period ended May 3, versus $1.21 billion last year. Gap’s comparable sales for April 2014 were up 9% versus a 7% increase last year.

For the first quarter so far, Gap’s net sales have increased 1% to $3.77 billion versus $3.73 billion last year. The company’s comparable sales so far have decreased 1% versus a 2% increase last year.

Westminster, Colo. — The Westminster Economic Development Authority and the city of Westminster, Colorado, have entered into an agreement with OliverMcMillan to redevelop the 105-acre site of the former Westminster Mall.

Bebe stores cited various factors, among them severe weather conditions that caused 136 store closures, the shuttering of 19 unproductive stores and the timing of Easter in late April, as contributing to its 17.2% net sales decrease in the third quarter from the prior-year quarter.  

Net sales dropped to $93.5 million from $112.9 million for the third quarter a year ago. Comparable store sales for the quarter decreased 5.7%. The sales decrease, according to the company, was also fueled by one fewer retail week in January in the current fiscal year.

Chicago - The fast-casual segment continues to obtain share from full-service chains and drive limited-service growth, making up 15% of the $231 billion limited-service restaurant segment. The “Top 150 Fast-Casual Chain Report” from Technomic shows that fast-casual sales increased 11% in 2013, while all limited-service chains grew by only 3.5%.

Sprouts Farmers Market’s president and CEO Doug Sanders credited the company’s focus on offering healthy food at affordable prices for 28 consecutive quarters of positive same-store sales growth as well as record first quarter results that outperformed its targets.

New York -- There are more store closings in Sears’ future. In an address at Sears Holding Corp.’s annual shareholders meeting, chairman and CEO Edward Lampert said the company would close stores and look for ways to leverage its real estate as it continues to focus on integrated omnichannel retail and its Shop Your Way rewards program.

"Closing stores is going to be part of our future," Lampert said. "I'd rather do (fewer closures) rather than more, but the world has shifted."

New York – Barnes & Noble Inc. reportedly plans to open about 300 new stores on college and university campuses in the next five years. According to Reuters, Barnes & Noble wants to expand its college bookstore footprint from the current 696 locations to 1,000.