Labor & Employment

The actions this week by two state attorneys general over the constitutionality of President Trump’s overseas business dealings have very little to do with the P&Ss of retail and restaurant owners. But here’s why it matters to your business and employees:  In the grand scheme of things, their legal maneuvering it is a stinging reminder of the role attorneys general play and how, in other circumstances critical to our business models and industry, they can have a seriously negative impact.

Already under the gun to improve business operations, Whole Foods Markets’ founder and CEO finds himself in a new struggle.  

J. Crew's troubles showed no sign of easing in the first quarter as the retailer posted its 11th consecutive quarter of same-store sales declines.    Total sales fell 6.3% to $532 million in the quarter, ended April 29. Total same-store sales fell 9%.   By brand, J. Crew sales decreased 11% to $428.5 million; same-store sales fell 12%. Madewell sales increased 17% to $84.7 million; same-store sales increased 10%.   

The clear signal sent by these first quarter numbers is that J. Crew is a company in trouble. As much as the business is used to decline, the accelerated pace of deterioration, as evidenced by the 6.3% drop in overall sales and the 12% fall in J. Crew comparables, is worrying. That this weakness comes off the back of negative prior year numbers suggests that the company has not yet reached rock bottom.  

Sears Holdings is reducing headcount as part of its ongoing effort to deliver $1.25 billion in annualized cost reductions. It's also losing a key online executive.   Sears is eliminating some 400 full-time jobs at its corporate offices, in Hoffman Estates, Illinois, and from its support functions. In addition, certain positions at the chain's field operations will be impacted. The eliminated jobs represent less than half a percent of the 140,000 full-time and part-time employees Sears had as of the end of January.  

Gymboree has filed for Chapter 11 bankruptcy protection.    The retailer announced the filing, which had been expected, on Monday morning. The chain said it has partnered with AlixPartners to assist with turnaround efforts.   

Blue Nile has a new chief executive.   Jason Goldberger was named the online retailer’s new president and CEO. He will replace Harvey Kanter, who will remain on the company’s board as chairman.  

Retail has historically been one of the most technically advanced industries, particularly in warehouses and the last mile. The industry is no stranger to automation as fast and efficient supply chains are the foundation of a strong retail operation in a competitive environment. Over the past few decades, increasing automation at the supply chain level has directly impacted both revenue and the bottom line.