Finance & Capital Management

Costco and BJ’s reported impressive same-store sales for June, and that’s good news for Sam’s Club. Given the strong correlation in performance between Sam’s and its direct competitors it is reasonable to assume Sam’s is on track to easily attain its second quarter same-store sales guidance, which calls for an increase in the range of 3% to 5%. Sam’s posted a first-quarter comp increase of 4.2% but doesn’t provide monthly updates.

Stronger-than-expected sales from a number of retailers in June is adding credence to a recent forecast that this year’s back-to-dchool season could be the strongest in the past five years, which is good news for Walmart as it looks for a strong ending to its second quarter.

Shoppers continue to face a lot of economic headwinds this back-to-school season, but one forecaster has seasonal sales growing by 6.2% to $467 billion, the most since 2006.

Stronger-than-expected retail sales in June had media outlets using words like “soar” and “surge” to describe the gains reported by retailers who disclose monthly results. While it is probably overstating things to characterize increases of 4.5% at Target, 6.7% at Macy’s and 4.8% as Walgreens as anything other than an “increase,” the hyperbole on the part of the media and analysts can be forgiven because everything is relative, and the numbers are fantastic compared with earlier this year.

Former Walmart China executives Rob Cissell and Shawn Gray have joined the retail subsidiary of Indian conglomerate Reliance Industries, according to the Economic Times of India. Cissell will serve Reliance CEO and Gray will serve as COO, according to the newspaper.

It’s only been two months since Walmart acquired an undisclosed minority interest in Chinese online supermarket operator Yihaodian, but now the company is indicating it may conduct an initial public stock offering in the United States, according to Bloomberg.

The new agency said the Shanghai-based company is looking to expand aggressively and quoted Yihaodian chairman Yu Gang as saying the company will most likely sell shares to the public in the United States but offered no timetable.

Now that Walmart has completed its acquisition of a majority stake in South African retailer Massmart a major competitor contends it will need to lay off 8.6% of its work force to improve its competitive position.

That’s according to South African media reports indicating rival Pick n Pay Stores said it was looking to eliminate 3,137 of its 36,673 positions. Conversely, Walmart has said it will create 15,000 jobs in South Africa within five years, implying a fairly robust level of expansion.

The 4.5% increase in same-store sales Target reported for June was at the high end of the company’s expectations, came on top of a prior year increase of 1.7% and was driven primarily by an increase in average transaction size with a more modest benefit associated with increased traffic.

San Diego -- Warehouse club operator PriceSmart reported Thursday that net income for the quarter ended May 31 rose to $16.3 million, compared with $12 million in the year-ago period.

Sales surged 23.6% to $421.6 million, from $341.2 million.

The company had previously announced it acquired 131,524 sq. ft. of land in Cali, Colombia, upon which it will build its second warehouse club in Colombia.
 

Atlanta -- Citi announced Thursday that it has renewed its U.S. private-label credit card partnership with Office Depot.
 
“The Office Depot Business Credit Card and the Office Depot Personal Credit Card both provide our customers with the increased spending power they need in these economic times,” said George Hill, senior VP store operations, Office Depot.

Camp Hill, Pa. -- Rite Aid Corp. said Thursday that it has shifted executive VP store operations Brian Fiala to the position of executive VP human resources, responsible for all aspects of human resources, including training, recruitment, talent management, compensation and benefits and labor relations. He will report to John Standley, Rite Aid president and CEO.

Fiala succeeds Steve Parsons, who is leaving Rite Aid to take another position.