Strategy

New York City -- A privacy ruling from California’s highest court which found that the practice of asking credit card customers for ZIP codes constituted a violation of state consumer privacy statutes could have substantial implications for retailers, warns Mac Nadel, retail/wholesale, food & beverage industry practice leader for Marsh Inc.

By Mac Nadel, [email protected]

Bentonville, Ark. -- According to reports by Reuters and Bloomberg on Friday, Wal-Mart Stores is transferring management of its e-commerce business to store-level leadership in developed countries and said that two online executives are leaving the company.

According to the reports, e-commerce leaders in markets such as the United States, Canada and the United Kingdom, will now report directly to the heads of stores in those countries instead of global e-commerce executive Eduardo Castro-Wright.

Mooresville, N.C. -- Lowe’s Cos. reported Monday that profit for the quarter ended July 29 was $830 million, down from $832 million in the year-ago period. The home improvement retailer closed seven underperforming stores on Sunday and trimmed its earnings forecast for the year.

“Despite some recovery in our seasonal business, our performance for the quarter fell short of our expectations," said Robert A. Niblock, CEO.

Net sales edged up 1.3% to $14.5 billion; same-store sales dipped 0.3%.

SEATTLE — In another sign that the U.S. economy is affecting lower-income families more than those in higher earning brackets, luxury retailer Nordstrom reported a same-store sales increase of 7.3% for its second quarter and net sales of $2.72 billion, an increase of 12.4% compared with net sales of $2.42 billion for the same period last year.

Walmart is due to report second quarter results on Tuesday, and the same-store sales and traffic trends at the company’s U.S. stores division will dominate the discussion.

PLANO, Texas — While such higher-end apparel retailers as Nordstrom and Dillard's boasted impressive quarterly earnings and sales, those that cater to the middle class didn't deliver quite as strongly. Case in point, JCPenney, which reported net income of $14 million, or 7 cents per share, for the second quarter ended July 30. Net income for the same period last year was $14 million, or 6 cents per share.

LITTLE ROCK, Ark. — Shortly after Nordstrom reported a 20% quarterly earnings gain, fellow luxury retailer Dillard's posted net income of $17.6 million, or 32 cents per share, compared with $6.8 million, or 10 cents per share, for the same period last year.

Same-store sales for the second quarter were up 6%. Net sales for the quarter were $1.44 billion compared with $1.4 billion last year.

SARASOTA, Fla. — Charlie Bowlus, CEO and founder of ECRM has died unexpectedly from complications following emergency surgery three weeks ago.

NAPERVILLE, Ill. — OfficeMax announced that it has appointed Mike MacDonald as EVP and president of its global contract organization and Steve Mongeau as SVP sales and growth initiatives, effective Aug. 15.