Finance & Capital Management

Emerging economies continue to drive global digital payment transactions — and momentum shows no signs of slowing.

Updates on the very latest legislative developments affecting retail, including wages, health care, taxes, security, and more.

At a time when most private equity firms are growing increasingly cautious about investing in retail, one firm is going against the grain.   Sycamore Partners is raising its biggest-ever fund, which it will use to invest primarily in retail, CNBC reported. The firm is looking to raise between $3 billion and $4 billion, according to the report.    The news comes a month after Sycamore closed on its $6.9 billion acquisition of Staples, which it is splitting into three parts.  

The holiday shopping season is upon us. For retailers, these last three months of the year signify a marathon of competitive sales strategies to increase foot traffic and maximize profits.    According to the National Retail Federation, the holiday season can represent as much as 30% of annual sales. To adapt to shifting consumer trends and meet peak season demands, stores plan to increase both hours of operation and staff onsite.  

Costco Wholesale Club is upping its home delivery game for online food orders as the grocery delivery market continues to heat up.   The retailer has introduced a new two-day delivery service, called CostcoGrocer, for customers across the U.S. (with the exception of those in Alaska, Hawaii, and Puerto Rico.). The service, which has a fee of $3, offers delivery of non-perishable foods and sundries, with about 500 items available. The delivery fee is waived for orders over $75.  

Off-price retailers will remain among the top performers in the U.S. retail industry during the next 12 to 18 months.   That's according to a new report from Moody's Investors Service. The outlook is not as positive for department stores, which will continue to struggle as they seek to level the playing field with both off-price and online vendors.  

Costco Wholesale Club reported better-than-expected profit and revenue for its fourth quarter.   Net sales for the 17-week fourth quarter ended Sept. 3 rose 15.8% to $41.36 billion from $35.73 billion in year-ago period, which had 16 weeks. Total same-store sales rose 6.1%, with a 6.5% increase in the U.S. and a 4.9% increase in Canada. International same-store sales rose 5.6%    E-commerce sales in the quarter were up 21%. Membership fees rose 13% to $943 million.   

As of August 31, 16 retailers have filed for Chapter 11 bankruptcy in 2017. Four of those sixteen retailers are filing for “Chapter 22”, meaning this is their second time declaring bankruptcy. Chapter 22 cases show that the first bankruptcy failed and that the firm and its advisors were too optimistic regarding the firm’s viability out of bankruptcy. The chart below summarizes the four Chapter 22 filings over the past year:  

As it heads into its most important selling season, Sears Holding Corp. is receiving another cash infusion from its CEO and largest shareholder.   Sears is borrowing $100 million from units of CEO Eddie Lampert's hedge fund ESL Investments for "general corporate purposes," according to a regulatory filing. The new infusion brings the total of Lampert's outstanding loans to Sears to $499.4 million.   

Following suit of older generations, younger shoppers want to pay for purchases with credit cards.    Specifically, Gen Z (ages 18-24) and Gen Y (ages 25-34) are comfortable using credit to make purchases, and overwhelmingly prefer credit cards to monthly payment options, according to new data from Vyze, a provider of cloud-based financial technology solutions.