Strategy

Despite positive performance through mid-June, the remainder of the second quarter proved more challenging for Ann Inc., prompting the company to reduce its outlook for the second quarter so it reflects lower-than-anticipated comparable sales and gross margin rate performance.  

President and CEO Kay Krill cited soft traffic across the industry and a highly promotional environment, but added that — despite delivering a positive comp for the quarter at Ann Taylor — a disappointing performance at Loft offset results.

New York -- Costco Wholesale Corp. fell slightly short of estimates in July even as most other retailers who still report same-store monthly sales outperformed expectations.

The warehouse club giant reported a 5% rise in same-store sales for July, excluding gasoline, falling short of estimates for a 5.7% increase. The company said foreign currencies had a slightly negative impact. It was the first time in five months that Costco's sales have increased less than expected. Costco's total revenue for the month increased 9% to $8.55 billion.

Los Angeles — The Coffee Bean & Tea Leaf has inked an exclusive deal with developer L.A. Style to expand the coffee and tea retailer into Japan by the end of this year.

L.A. Style is a joint-venture partnership between fast-casual restaurateur Hotland Co. and Japan’s largest shopping mall developer Aeon Mall Co.
The deal ultimately calls for 200 stores across Japan.

Walgreens has exercised its option to complete the second step of its strategic transaction with Alliance Boots ahead of the original option period, which was between February and August 2015. The transaction, subject to shareholder and various regulatory approvals, would fully combine the two companies to form the first global pharmacy-led, health and well-being enterprise.
 

Atlanta - Global Payments Inc. has signed a referral agreement with BitPay, a provider of business solutions for the Bitcoin digital currency. This relationship allows Global Payments to incorporate the cryptocurrency into its product suite and to offer Bitcoin payment acceptance to its worldwide merchants.

Toys“R”Us has appointed Chetan Bhandari as the company’s SVP, corporate finance and treasurer. He will report to EVP and CFO Mike Short.

Wayne, N.J. – Toys “R” Us Inc. has named Chetan Bhandari senior VP, corporate finance and treasurer. In this capacity, Bhandari will be responsible for managing relationships with domestic and international lenders, depository banks, credit insurers and credit rating agencies, as well as overseeing the company’s global cash management, foreign exchange programs and capital markets activities.

Just under two weeks after Aaron’s posted disappointing second-quarter results, the company is seeking a new CEO. Ronald W. Allen, 72, plans to retire as the company’s CEO and will be stepping down from the board of directors, effective August 31, 2014.