Finance & Capital Management

J.C. Penney announced a positive development on the financial front.   The department store retailer announced it has successfully completed refinancing its $2.25 billion five-year senior secured term loans, which should generate about $24 million in interest expense savings.  

Malls and outdoor centers are increasingly seeking out small and local merchants to help them stand out from the competition.   Kimco, for example,  has expanded a program that offers small businesses one year of free rent and reduced property charges, CNBC reported.  Originally started in California four years ago, the program has since been expanded to centers in 19 states.    

Sports apparel retailer The Finish Line topped Street estimates for its first quarter, turning in a solid performance in a challenging retail environment.    The company reported net income of $9.63 million for the period ended May 28, down 29.9% from $13.73 million in the year-ago quarter, amid higher costs.     Net sales rose 2.28% to $453.52 million, higher than expected,  from $443.39 million in the same quarter last year. Same-store sales increased 1.5%.  

Retail group argues for  debit card swipe fee regulations.   The National Retail Federation said Congress should reject a proposal from the head of the House Financial Services Committee to repeal a cap on debit card swipe fees. According to the NRF, the fees have saved consumers billions of dollars over the past five years.  

Ralph Lauren Corp. made headlines with its June 7th announcement that it planned to close 50 stores and lay off 1,000 employees as part of a restructuring in response to lower sales.     The announcement  didn't go into specifics about the luxury brand’s plans to correct its course. But some industry insiders speculate that the background of Ralph Lauren CEO  Stefan Larsson, who took the reins of the company in September,  holds the key.   

The National Retail Federation on Thursday pointed a dire outcome if the new overtime regulations are implemented as is.     The NRF told the House Small Business Committee that the new regulations  will lead to hiring freezes and layoffs for full-time workers if enacted as planned December 1.   “Proponents of this rule have touted the changes as a welcomed job creator,” NRF senior VP for government relations David French said. “These claims are riddled with partial truths.”

Some things are easier said than done. And increasingly, that notion applies to closing stores.   Although analysts and investors say that retail companies need to continue to shrink their store portfolios, the decision to do has become increasingly complex for merchants, many of whom have already shed their most unprofitable locations, according to a CNBC report.  

Think online is the biggest challenge traditional retailers face? Think again.  

Bed Bath & Beyond Inc.’s  first quarter profit  declined amid flat sales and  increased expenses that cut into its bottom-line.   The company’s profit fell to $122.6 million from $158.5 million in the year-ago period, less than analysts had expected.   Sales remained flat year-over-year at $2.74 billion, also below estimates. Same-store sales decreased 0.5%. 

The renovation of Philadelphia Mills, that city’s largest outlet shopping center, is now complete according to owner Simon. New entrances, lighting, flooring, and dining pavilion highlight the project, which was begun in 2014.   The renovation attracted several new retailers to the location, among them Express Factory, Rack Room Shoes, Steve Madden, and Starbucks.  Longtime tenants such as Saks Off 5th, HomeGoods, and Marshalls followed Simon’s lead with store re-dos of their own.