Strategy

Issaquah, Wash. – Costco Wholesale Corp. is reportedly off to a litigious start in the first half of 2015. According to the Wall Street Journal, Costco is suing Johnson & Johnson’s Vision Care division for allegedly fixing prices on contact lenses.

Chicago - Potbelly Corp. has promoted Julie Younglove-Webb as its new senior VP of operations. Younglove-Webb will oversee all aspects of company operations.

Younglove-Webb joined the Potbelly 2008, as a general manager and then a district manager before assuming various operations roles and being promoted to her latest role as Central Zone VP, overseeing 250 shops. She replaces John Morlock, who will now serve as senior VP of ops growth.

San Francisco – The Gymboree Corp. shrank its net loss in the fourth quarter of fiscal 2014 to $7.4 million, from $167.2 million in the same quarter a year earlier. The elimination of a non-recurring $157.2 million non-cash impairment charge in the fourth quarter of fiscal 2013 contributed to the reduction in net loss.

Net sales rose 7% to $375.6 million, from $351 million. Same-store sales rose 5%. In fiscal 2015, Gymboree plans to close 30-40 stores and open about 12 stores.

Denton, Texas - Sally Beauty Holdings Inc. has announced it is currently investigating reports of unusual activity involving payment cards used at some of its Sally Beauty stores in the United States. The retailer reported a security breach that may have exposed fewer than 25,000 customer credit card numbers in 2014; media reports indicate this is a separate incident.

New York -- O’Reilly Automotive posted a strong first quarter, laying the foundation for continued growth in 2015. America’s second largest retailer in the automotive aftermarket industry said its expansion plans are on track after profit rose in the first quarter on higher sales and better margins, continuing a trend of 15% or greater profit growth for the past six years. The company said it plans to build a new distribution center in Texas to help support its 205 new stores in 2015.

New York -- Expansion plans are under way at surging Tractor Supply Co., which had a 5.7% increase in same store sales and a 19% increase in earnings in the first quarter.

The Tennessee-based retailer said it plans to open 110 to 115 new stores in 2015, as well as build a new distribution center in Casa Grande, Ariz. For the first quarter, same store transaction count increased 4.8% and average ticket increased 0.8%. Pet and heating consumables, fencing, truck accessories and tools all performed well, the company said.

Mississauga, Canada – Target Corp.’s exit from Canada is reportedly not turning out as smoothly as the retailer had hoped. According to the Toronto Globe and Mail, Target is returning 55 leases it could not find a bidder for to their landlords.

Target is also returning 19 leases for office and warehouse space in Canada. The company operated a total of 133 stores in Canada; meaning about 40% of the store leases did not attract bidders.

Seattle - REI will open a third distribution center, located in Goodyear, Arizona. The specialty outdoor retailers seeks to better support its stores and customers through faster product replenishment and delivery.