Strategy

Dollarama ended the year with a strong fourth quarter, an increase it credits to higher customer spending.   For the fourth quarter ended January 29, 2017, the Canadian discount retailer’s sales increased by 11.5% to $854.5 million. The chain’s gross margin was 41.4% of sales, compared to 40.8% of sales.  

Murphy USA is losing its senior VP, retail operations.   Marn Cheng will resign from his position on April 30. During his 17-year tenure, Cheng has held various leadership roles within the operations team, including retail operations, fuel supply, ethanol production, customer and store support.   He is resigning for personal reasons, and plans to spend more time with family in both Malaysia and the United States, according to Murphy USA.  

Cumberland Farms, a convenience store fixture in New England and central Florida for half a century, once fielded more than 1,000 stores. Today it has pared down to 600 stores as it transforms itself from a strip-center and gas station dairy store to a chain of freestanding, modern C-stores providing food service and gasoline, along the lines of Quik Check and Wawa.  

In light of Target shares dropping 15% after their latest earnings announcement, Target CEO Brian Cornell said executives would be detailing moves for greater pricing aggressiveness and increased merchandise differentiation, both tactics that Target has been known for historically. Cornell’s pricing reference led to speculation about a price war with Walmart, which many experts surmise Target simply can’t win. Speculation aside, is a price war poised to erupt between these two mega-retailers?    

VF Corp.'s new strategy is focused on maintaining the company's longevity — even in a rapidly changing marketplace.

Ending its fiscal year with a strong fourth quarter has helped J.Jill hit year-over-year earnings growth for 20 consecutive quarters.   For the quarter ended January 28, 2017, the retailer’s total net sales increased by 14.8% to $166.9 million, up from $145.4 million in the fourth quarter of fiscal 2015. Gross profit increased to $105.5 million, up from $91.4 million in the same period last year. As a percentage of total net sales, gross profit was 63.2% compared to 62.9% in the fourth quarter of fiscal 2015.  

Retailers looking for a competitive advantage in these competitive times should consider their restrooms.  

The nation’s largest supermarket retailer is stealing customers from Whole Foods Market.    That’s according to a report by Cincinnati Business Courier, which cites a new study by Barclays investment analyst Karen Short.    Whole Foods has lost up to 14 million customers during the past six quarters, according Short.