Labor & Employment

Going private may take some pressure off a company, but it is not without its risks.   In June, the Nordstrom family, which owns 31.2% of the department store's stock, announced it planned to explore taking the company private. But in its latest quarterly filing with the Securities and Exchange Commission, Nordstrom executives warned of the potential risks that might come with a move, reported Puget Sound Business Journal.   

The nation's largest shopping center operator is suing Starbucks Corp. over its plan to shutter the retailer's 78 Teavana stores in Simon malls.   In a lawsuit filed Aug. 21, Simon Property Group said that Starbucks is breaching its leases by closing the Teavana stores and “shirking its contractual obligations at the expense of Simon’s shopping centers and the dozens of communities they serve and support,” reported the Indianapolis Business Journal.   

Consumer confidence increased in August to the second highest level since late 2000.    The Conference Board's Consumer Confidence Index rose to 122.9 in August, up from 120 in the prior month. Economists had expected the index to rise to 122.5 in August.    The Present Situation Index increased from 145.4 to 151.2. The Expectations Index rose marginally from 103.0 last month to 104.0.  

The deals at Ollie's Bargain Outlets were too good for shoppers to pass up in the retailer's second quarter, which topped analysts' expectations.   The value retailer, whose motto is "Good Stuff Cheap," said that its net income increased 50.1% to $19.7 million, or $0.30 per diluted share, in the quarter ended Aug. 29, from $13.1 million, or $0.21 per diluted share, in the year-ago period. Adjusted net income, increased 34.0% to $17.8 million, or $0.27 per diluted share, in the quarter.   

Wages

An 11-year veteran of Canadian department store giant HBC is stepping down.    HBC, whose banners include Hudson's Bay, Saks Fifth Avenue, and Lord & Taylor, announced that Don Watros, president of HBC International, has made the decision to leave, effective September 29, 2017. The company did not name a successor.   

J.Crew Group named an internal associate as CFO as the retailer continues to struggle to turn around its namesake brand.   The retailer announced that Vincent Zanna, previously senior VP of finance and treasurer, has been promoted to CFO and treasurer, effective immediately. He will continue to report to Michael Nicholson, who was previously CFO and COO, and now serves as president and COO.    

As much as Sears deserves credit for the various actions it has been taking to shore up the company, there is no denying that this (Sears second quarter financials) is a miserable set of numbers. Indeed, the precipitous drop in comparable sales and the continued lack of progress on profit suggests the company isn't moving far or fast enough to ensure its long-term survival.