Corporate Governance

Report: ‘Mall mix must change’
Three-quarters of gross leasable area in American malls are inhabited by stores representing the slowest-growing retail categories. That’s the basis of a report from CBRE advising mall owners to seriously consider diversifying their tenant mixes. Department stores sales are declining by around 4%, yet they take up 49% of mall space. Apparel stores that form 30% of mall makeup are growing at a 12%, but that’s well below restaurants at 32% and furniture, personal care, and health care stores at above 20%.
Regulatory Wrap-Up: Wage, paid leave ballot measures in spotlight
Wages

Study: Millennials put a premium on store associates

Generation Y may be tech-savvy, but for many, store employees still play a pivotal role in their overall shopping experience. In fact, 63% of shoppers aged 18-35 see store associates as extremely important to their retail experience, according to the “Store Associates Report,” from ChargeItSpot. The study is based on responses from more than 600 shoppers at malls across the country.
Online giant preps for Indian version of Prime Day

Amazon is getting ready to host its fourth-annual flagship sale in India. The online giant is gearing up for its “Great Indian Festival,” an event similar to Amazon’s Prime Day sale. Amazon is banking on the sale’s deep discounts, exclusive merchandise and buyback offers to attract new customers, according to Live Mint.
A Kmart closure has Illinois town mulling new opportunity

Many American communities see the closing of a long-successful department store as a tragedy. Town officials of Oak Lawn, Illinois, see it as an opportunity. “It is a great location and I think its future…can be very, very bright and strong, and so does the owner of the property,” village manager Larry Deetjen said of the shopping center at 95th Street and Pulaski Road in an interview with the Chicago Tribune.
Amazon, Whole Foods Market deal a win-win?

Amazon's purchase of Whole Foods Market appears to be paying off for both parties. The e-commerce giant has seen a spike in its online grocery sales since it acquired Whole Foods Market, according to a report by Bloomberg, which noted that the online giant immediately put about 2,000 items on its site from Whole Foods' 365 Everyday Value private brand, and sold out of almost all of the most-popular items.
Kroger Q2 profit falls on price cuts as same-store sales rise

Aggressive price cuts took a toll on the nation's largest grocery store operator in its second quarter. Kroger Co.'s net income fell to $353 million, or 39 cents per share, in the quarter ended Aug. 12, from $383 million, or 40 cents per share, in the year-ago period. Its results were in line with the Street estimates. Gross margins fell by 30 basis points.
Gymboree to exit bankruptcy

Children’s apparel retailer Gymboree Corp is exiting Chapter 11 bankruptcy as a going concern. The children's apparel retailer won court approval to exit bankruptcy with a reorganization plan that includes a comprehensive recapitalization that will eliminate about $1 billion in debt. It expects to complete its financial restructuring process and emerge from Chapter 11 by the end of the month.
Forecast: Holiday sales to be impacted by ‘lackluster’ wage growth

One of the first holiday quarter sales forecasts is out of the gate. Global retail consulting firm Kantar Retail predicts that U.S. retail sales will grow 3.7% in the fourth quarter of this year. The forecast represents an improvement relative to weak growth of only 2.9% in the year ago period. But it is underwhelming compared to average growth prior to the recession of 5.0%, according to Kantar.
One Kings Lane puts down physical roots

Online home furnishings and decor retailer One Kings Lane is making its temporary foray into brick-and-mortar retail more permanent. The retailer opened its first-ever physical location, a seasonal pop-up in the posh resort town of Southampton, New York, at the beginning of summer. But the company said the response to the temporary store was so positive that it has decided to make it a permanent space.
Target in aggressive marketing effort for exclusive brands

Target Corp. is launching an array of private brands and the discounter is giving them a big kickoff. The discounter will launch an aggressive marketing campaign for the new labels, AdAge reported, including everything from print and television spots to in-store events and visual merchandising.
Discount giant adds another massive ‘Pickup Tower’

Walmart’s self-service kiosks that cater to online order in-store pickups have hit Nevada. The discount giant has added a 16-ft. “Pickup Tower” at its Las Vegas Walmart Supercenter. The tower is the first machine to be installed on the West Coast, according to Las Vegas Review-Journal.