Finance & Capital Management

No retailer is immune to theft — even discounters.   That’s why Dollar General has completed a speedy installation of an electronic article surveillance (EAS) solution from Checkpoint Systems chainwide.    The discounter began its journey by testing EAS pedestals and deactivation systems in a limited number of stores to determine the benefits of how visible EAS tagging deters shoplifting and protects high-theft inventory.   

Big Lots on Friday posted an unexpected decline in total revenue in its fourth quarter as a reduced store count cut into its sales. But the chain’s earnings topped the Street.      The close-out retailer also boosted its dividend and initiated a new share buyback program.  

Wet Seal was acquired at a bankruptcy auction by a firm that plans to rebuild the brand.    Gordon Brothers announced it is acquiring the Wet Seal brand and its related intellectual property. The transaction is pending final court approval.   The acquisition includes the other brands within the Wet Seal portfolio, including Arden B, Blink, Chic Boutique and several others.   

Equity One CEO David Lukes has accepted the chief executive’s position at DDR Corp., it has been announced in a press release from DDR. Equity One was acquired by Regency Centers in November to form the largest REIT focused on shopping center development.   Two of Luke’s lieutenants at Equity One will join him in leading the Beachwood, Ohio-based company. COO Michael Makinen and CFO Matthew Ostrower will perform the same roles at DDR.  

Costco Wholesale Corp.’s second quarter profit took a hit amid higher costs. And for the first time since 2011, the retailer is raising the cost of entry into its stores.   As of June 1, Costco’s annual fee for individual and business members will increase by $5.00, to $60. The executive membership fee will go up $10, to $120.    Costco’s net income for the quarter, ended Feb. 12, fell 5.7% to $515 million, or $1.17 per share, below Wall Street expectations.  

InvenTrust Properties has acquired The Shops at Town Center in Germantown, Maryland for $53.6 million. The necessity-based property boasts a strong lineup of food and beverage tenants including Baja Fresh, Chipotle, and Zoe’s Kitchen.  

The Kroger Co. has broken its impressive record of 52 consecutive quarters of same-store sales growth.    The supermarket giant on Thursday posted an unexpected decline in fourth-quarter same-store sales on Thursday amid ongoing food price deflation and increased competition.   Kroger’s net income fell to $506 million, or 53 cents per share, for the quarter ended Jan. 28, in line with estimates, and down from $559 million, or 57 cents per share, a year earlier.   

Ahold Delhaize’s Food Lion and Hannaford U.S. supermarkets had both strong fiscal fourth quarters and for fiscal 2016, the company stated in an earnings report. Volume growth was particularly strong, more than offsetting the impact of inflation on sales.   Underlying operating margins improved, driven by the “Easy, Fresh & Affordable” strategic initiative and synergies, said Ahold Delhaize.  

Privately-owned, family-operated Meijer announced plans to invest more than $375 million in new and remodeled stores in 2017 across its six-state footprint.    The investment includes the construction of seven new Meijer supercenters and 22 remodel projects. While Michigan, Indiana, and Wisconsin will each welcome new Meijer supercenters later this year, dozens of other Meijer stores have begun or will soon begin remodel projects to enhance the customer shopping experience.  

Abercrombie’s efforts to revive its namesake brand still have a ways to go judging by its fourth quarter performance. But Hollister is on the upswing.    Abercrombie & Fitch Co.’s total revenue in the quarter, ended Jan. 28, fell 7% to $1.04 billion, slightly below expectations.