Labor & Employment

▲Construction and construction costs are not an exact science: Information derived from data may be predicable; people are not.

▲ The process takes time: Construction encompasses more that just the time it takes to physically build a store. It also involves the lease-negotiating phase, drawing phases, permit phase and bidding phase.

▲ Smaller spaces don’t always translate into big cost reductions: It’s often assumed that as store square footage gets smaller, the overall costs go down.

More strategic. That’s how Greg Esgar, CFO of Massage Envy Spa, the nation’s largest therapeutic massage chain, sums up the evolving role of today’s CFO. Esgar joined the Scottsdale, Arizona-based business as financial chief in 2004, two years after it was founded. As part of the executive team, he helped spur the company’s growth from 17 locations to its present total of nearly 1,000 sites in 49 states. With its membership-based, monthly-fee business model, Massage Envy Spa eschews the luxury amenities and high prices of traditional day spas.

As the key cog in the wheel of a retail chain’s financial structure, today’s retail CFOs find themselves caught in the crosshairs of senior management and stakeholders demanding maximum profit and measurable growth amid increased consolidation and tightened revenues.

But that’s nothing new. Financial chiefs have always had to balance profit and loss with expansion strategies.

Unlike most consumers, the retail industry doesn’t take a holiday in the summer. As we head into July, three very different retail companies are very much in the news. One has the industry all abuzz over who will be its next chief, while another has launched a pioneering employee initiative. And the newly appointed chief of the third wants to turn a cult L.A. brand into a global powerhouse. I’m fascinated by all three:

•  Target: At press time, there is no clear front-runner to replace ousted CEO Gregg Steinhafel.

Brussels, Belgium - Delhaize Group has appointed Kevin Holt as CEO for Delhaize America. Holt, formerly president of retail operations at Supervalu, will also become a member of the Delhaize Group executive committee and will start effective July 7 and lead the group’s U.S. operations.

Tewksbury, Mass. – Demoulas Supermarkets Inc. has fired CEO Arthur T. Demoulas. The retailer also fired director of operations Bill Marsden and VP of grocery Joe Rockwell.

Demoulas had been waging a public battle with his cousin Arthur S. Demoulas, a stakeholder and director of the company, about finances. Arthur T. Demoulas has claimed that his cousin seeks to raise prices and lower wages. The cousins have also publicly disagreed about agreements with suppliers and vendors.

Sausalito, Calif. - Retailers dominated a list of the worst companies in the U.S. to work, taking eight of the top 11 spots. According to a report from corporate review site Glassdoor.com, Books-A-Million is the worst company to work for in the U.S., with common employee complaints including low pay, high stress and limited promotion opportunities.

More than a dozen of Walmart’s top merchants are in new roles following a realignment of responsibilities that chief merchandising and marketing officer Duncan Mac Naughton said is designed to recognize customers’ needs and serve them more efficiently.
 

Sporting goods and apparel retailer Academy Sports + Outdoors has renewed multi-year contracts with Auburn University and the University of Alabama. The renewal means that it will continue to sell the universities’ licensed products in its 13 Alabama stores.
 
The retailer is currently an official sponsor of University of Alabama’s Crimson Tide and official sporting goods retailer for Auburn University’s Tigers, and has been working with the two universities for several years.
 

New York -- Dov Charney, the ousted chairman and CEO of American Apparel Inc., is fighting back against his dismissal.