Strategy

Party City Holdco Inc. narrowed its loss in the first quarter as gross margins improved. The party supplies retailer and wholesaler reported a loss of $394,000, in line with Wall Street expectations, for the quarter ended March 31, down from a loss of $8.5 million in the year-ago period. Total revenue was flat at $457.7 million, which missed Street forecasts.

Furniture manufacturer Herman Miller will continue its transformation from a maker of modern office furniture to a lifestyle brand with the opening of its first retail store. The store, opening in late 2016, will be located in the company’s recently opened flagship in Manhattan’s Gramercy neighborhood. The non-retail components of the flagship—the Herman Miller and Geiger showrooms—are already open, by appointment.

Online retailer—and would-be rival to Amazon— Jet.com is continuing to spread its wings. The retailer is testing a home delivery service for fresh groceries in certain markets in the metro areas of New York, New Jersey and Connecticut, Pennsylvania and Washington, D.C. According to an email sent to some customers, produce delivery will take one to two days, with no fee for orders of $35 or more.

Call it a spring retail funk. The day after Macy’s posted disappointing results for its first quarter, Kohl’s Corp. upped the ante, reporting an 87% drop in net income amid heavy one-time costs. Kohl’s net income for the three months that ended April 30, was $17 million, down 87% from the $127 million Kohl's earned in the year-ago period. Excluding impairments, store closings and one-time costs, net income was $58 million, down 55%.

Mark Horgan has been named executive vice president and chief investment officer at Brixmor Property Group and been give a wide range of responsibilities as the newest member of a revamped senior leadership team.

It’s a sobering statistic: North American retailers lose $158.5 billion annually to supplier issues. Out of stocks cause 4.1 percent in lost revenue, according to retailwire.com; just as troubling, overstocks result in 3.2 percent in lost revenue for the average retailer. Retailers continue to refine their compliance programs to strike the right balance of inventory and meeting higher consumer service standards.

The risk associated with a possible security breach claimed the top spot for the first time ever in an annual ranking of the top 25 risk factors by retailers. Security risks shared the top spot with general economic conditions, which have remained tied at the top since 2013.

Petco is expanding its store portfolio and distribution center network. In keeping with its 2016 growth plan, which includes 27 new store openings year-to-date, Petco will open a new distribution center on May 11, 2016, in Reno, Nevada. The company will also open a new Unleashed by Petco store in Maryland, and re-open a newly expanded Southern California Petco store in place of a previous Unleashed by Petco locations.

Macy’s on Wednesday reported its fifth consecutive decline in same-store sales, and announced plans to improve its performance, from new product launches to more off-price shops. The nation’s largest department retailer also reduced its sales and earnings guidance for the year. Similar to many retailers, Macy’s is challenged by an overall retail environment marked by sluggish traffic, increased competition and cautious consumers.

The nation’s two largest office-supply chains have pulled the plug on their $6.3 billion merger.