Corporate Governance

Muji, the Tokyo-based global retailer, will open its largest store to date — underneath its very own hotel.      The company will open a hotel in in Tokyo's Ginza district in spring 2019. The hotel will be located in a new, 10-story building that will also house a 35,000-sq.-ft. Muji flagship. The store will occupy one basement floor up to part of the sixth floor above ground, with the rest of the space above devoted to the hotel, according to the Nikkei Asian Review.  

The nation's largest wholesale club operator reported strong sales for the month of June, both domestically and globally.   Costco Wholesale Corp. posted net sales of $12.17 billion for the five weeks ended July 2, 2017, up 5% from $11.33 billion during the year-ago period. Total same-store sales were up 6%.   In the U.S., same-store sales rose 6.5% in June. International same-store sales increased 6.2%. Canadian same-store sales rose 3.2%.   

In ancient Greek mythology, the Amazon were described as a tribe of man-slaying women warriors. Similarly, today’s Amazon is sometimes described as a slayer – of brick-and-mortar stores – blamed for the demise of multiple retailers. So, it’s interesting that the company has offered to pay $13.7 billion for Whole Foods Market and its brick-and-mortar footprint of more than 460 stores.    

A potential partnership could help Amazon enter the wireless business — a move that could further streamline its digital services.    Amazon CEO Jeff Bezos and Charlie Ergen, CEO of Dish, reportedly may be considering partnering on a potential wireless project. With Amazon’s financial backing, sources said the team could create an Internet of Things (IoT) network, reported the Wall Street Journal.  

A new fraud pattern is emerging.    For 84% of U.S.-based companies, EMV has lowered their fraud prevention costs. However, 52% of retailers said their card not present (CNP) losses are growing.   This is according to the “2017 Global Payments Insight Survey: Merchants and Retailers,” from ACI Worldwide and Ovum. The study tapped 1,475 payments executives globally in December, 2016 -January, 2017.   

The Home Depot had acquired a company that will it enable it to expand its tool and equipment rental offerings to both professional and do-it-yourself customers.   After years of working with Compact Power Equipment, The Home Depot announced a deal to acquire the equipment rental and maintenance services company for $265 million in cash. The transaction is expected to close by the end of the company's fiscal second quarter.  

The town managers of New Lenox, Illinois, needed a new train station, so they bought a shopping center.   It was three years ago that Mayor Tim Baldermann and New Lenox purchased the Rock Island Station Shopping Center, according to the Chicago Tribune.  It invested more than $3 million in the site, which included buying out the businesses of the four stores there, demolishing them, and doing an environmental clean-up.    

Victoria's Secret is casting a shadow on parent company L Brands.   L Brands said that net sales fell 6% to $1.21 billion for the five weeks ending period ending July 2. Total same-store sales fell 9%, worse than expected, dragged down by a 17% decline at Victoria's Secret. On the positive side, same-store sales rose 8% at Bath & Body Works.  

CBL has named Alan Lebovitz senior VP of management to succeed Jerry Sink, who has retired after a 25-year career at the company. Lebovitz will oversee the staff and operations at the company’s 123 properties, a responsibility that encompasses some 300 employees and 77 million sq. ft. of retail.  

Premium denim brand True Religion Apparel Inc. has struck a deal to erase $350 million of its debt.    The company announced Wednesday that it has filed for Chapter 11 bankruptcy protection and signed a restructuring agreement with the majority of its lenders, including private equity owner TowerBrook Capital Partners. It listed assets and liabilities in the range of $100 million to $500 million.