Labor & Employment

Profit for rent-to-own giant Aaron’s, which has struggled with declining foot traffic and sluggish sales, fell 35% for 2014 and about 2.75% in the fourth quarter of last year.

New York -- A mixed economic backdrop is expected to drive modest retail sales growth in the 3% to 4% range in 2015, compared to 5.5% average growth in 2010-2012 and 5.8% in 2002-2006, according to GE Capital. Low- and mid-income households will be particularly constrained by stagnant earnings despite improvements in employment status and the housing market as well as lower gas prices.
 
According to GE Capital, the key trends in retail include the following:

Denton, Texas -- Sally Beauty Holdings announced that president and COO Chris Brickman succeeded Gary Winterhalter as CEO effective on Feb. 1. Winterhalter will continue to serve the company as executive chairman.

The changes are consistent with the company’s previously announced executive transition plan.

San Jose, Calif. -- Orchard Supply Hardware announced it has opened three new stores, including a location in Portland, Oregon, and two in California (Irvine, and Cerritos).

In addition to the 300 jobs these new stores have created, the retailer plans to hire an additional 1,000 associates as it prepares for the busy spring season, and to support its continuing growth.
 

Arlington, Va. -- A breakdown in contract negotiations between labor and management at America’s west coast ports is threatening to turn a work slowdown into a full-scale strike, the Retail Industry Leaders Association (RILA) warned.

Boston -- Three of the nation’s largest asset disposition companies were the successful bidders in the race to liquidate inventory at Target’s 133 Canadian locations.
 
Gordon Brothers Group, Hilco Global (through its Canadian division  Merchant Retail Solutions) and affiliates of Great American Group secured approval from Target Canada and an order from a Canadian court to manage the store closing process for Target’s 133 Canadian locations, with store closing beginning February 5, 2015.
 

Columbus, Ohio -- L Brands shareholders will receive a post-holiday gift in the way of a $2 a share special dividend. The news comes as the retailer, which also increased its ordinary annual dividend by 47% to $2 a share from $1.36 a share, reported significantly better than expected profits for its fourth quarter.

L Brands, whose brands include Victoria’s Secret, Bath & Body Works and La Senza, said same-store sales increased 7% and total sales for the four-week period ended Jan. 31 increased 7% to $783.1 million.

It’s the end of an era that never really began for Target Canada as three of the biggest names in the asset disposition world begin store closing sales at Target’s 133 Canadian locations.   Gordon Brothers Group, Hilco Global and Great American Group were the successful bidders at a Jan. 27 auction and secured approval from Target Canada and an order from a Canadian court to manage the store closing process for Target’s 133 Canadian locations.  

It was a happy holiday in the home décor category and Kirkland’s is celebrating with the appointment of a new CEO and an elevated profit forecast.

Sally Beauty Holdings reported decreased profits for the first quarter, but the company’s just-named CEO says new marketing programs will be paying off soon.   Sally Beauty reported a profit of $54.9 million, or 35 cents a share, in its first fiscal quarter ended Dec. 31, compared with a profit of $58 million, or 35 cents a share last year. Analysts surveyed by Thomson Reuters forecast a profit of 38 cents a share and sales increase of 3.7 percent to $975.1 million.