Strategy

Store closures, layoffs and shifting consumer preferences weighed down Macy’s bottom line, negatively impacting its fourth quarter earnings. And the retailer doesn’t see its slump ending in the near future.    Macy's net income fell to $475 million in the quarter ended Jan. 28, compared with $544 million in the year-ago period. Adjusted earnings per share came to $2.02, better than analysts had expected. Analysts had expected $1.95 per share for the quarter, according to FactSet.  

While Lidl has made clear its plans to expand to the U.S., many grocery retailers may not have expected it to make its stateside debut quite so soon. Recent reports that the chain will open its first stores on U.S. soil this summer, ahead of schedule, mean that the pressure is on for domestic grocery chains to determine how to react to their latest challenger.  

Walmart on Tuesday reported a solid fourth quarter amid a big increase in online sales and higher store traffic. The company also announced it is raising its dividend.   Walmart earned $3.76 billion, or $1.22 per share in the quarter ended Jan. 31, compared with $4.57 billion, or $1.43 per share, in the year ago period. Walmart’s earnings were impacted by investments in its digital business as it continues to boast its defenses against Amazon and other online competitors.    

In a move that could attract more tech start-ups, New York City will be the home to one of the newest innovation labs.   The 250,000-sq.-ft. “Union Square Tech Hub,” which was announced in December, will include 58,000 sq. ft. of “fluid space” for startups, and a 36,500 sq.-ft. tech training center, reported TechCrunch.   

Nike has brought its experiential retail format to Miami Beach. The company has opened a two-story, digitally connected, 31,000-sq.-ft. store on Lincoln Road, in the heart of Miami Beach.   Similar to Nike’s new store in Manhattan’s SoHo, the Miami location is designed to deliver the best of Nike products and personalized, immersive experiences services through a series of unique spaces. These include zones dedicated to running, soccer and basketball where consumers can try out the brand’s latest products.

Declining mall traffic is taking a toll on Perfumania.   Perfumania Holdings Inc. has hired advisers to explore strategic alternatives, including a debt restructuring, Reuters reported. It also plans to negotiate with landlords to exit some of its 313 Perfumania stores.   The company recorded debt of approximately $164 million on Oct. 29 and $2.1 million in cash and cash equivalents, the report said.  

The Wendy’s Co. is bullish on expansion.   The chain wants to add approximately 1,000 locations by 2020, reported Nation’s Restaurant News.    

The $500 million sale of online diamond and jewelry retailer Blue Nile has been completed.   The company was acquired by an investor group comprised of Bain Capital Private Equity, Bow Street and Adama Partners for $40.75 per share in cash. The transaction, first announced on Nov. 7, 2016, was approved by shareholders on Feb.2, 2017.  

It’s closing time for MC Sports.   The chain, which filed for Chapter 11 bankruptcy protection on Feb. 14, is closing all 66 of its stores across the Midwest. A joint venture between Tiger Capital Group and Great American Group is conducting the going-out-of-business sales, which are now underway.  

Thomas “TJ” Drought, who spent nearly 20 years in the employ of WP Glimcher, has joined Steiner + Associates as an executive VP.