Corporate Governance

In a sobering statistic, one out of every 27 employees was apprehended for theft from their employer in 2016.   That's according to “The 29th Annual Retail Theft Survey,” conducted by Jack L. Hayes International, a loss prevention and inventory shrinkage control consulting firm. The survey is based on reports on over 380,000 shoplifting apprehensions that took place in 23 large retail companies, representing 16,038 stores with combined 2016 annual sales in excess of $370 billion.   

E-commerce has generated significant volumes of sales in the electronics and clothing industries, but has yet to gain traction in other retail sectors.  

Chuck Grom, analyst, Gordon Haskett analyst:

West Elm has announced the newest location for its fledgling West Elm Hotels portfolio.   The company, a division of Williams-Sonoma, is teaming up with Signature Development Group and Jordan Real Estate Investments to develop a hotel in Oakland, Calif. Expected to open in 2020, the hotel will be located in Oakland’s Uptown neighborhood, and will celebrate the rich diversity and history of the location.   

J. Crew is entering into a deal that it expects will put it one step closer to improving its business.   The fashion retailer has won the support of more than 50% of its term loan holders to trim its $2 billion debt load and end intellectual property litigation. This was according to sources familiar with the situation, according to Reuters.  

Eco-friendly home improvement retailer TreeHouse's new outpost in Dallas is billed as the nation's first energy-positive (meaning it will generate more energy than it uses) big-box store.   The 35,000-sq.-ft. space offers a curated selection of products, materials and technologies — some not available elsewhere—designed to promote healthy and sustainable spaces.  It also offers turn-key services and programs, including kitchen and bath design. solar energy kits, home insulation and "smart" home installation.

Despite the many sales that showrooming has afforded Amazon over the years, the retailer surely doesn't want to become a victim going forward.  

Website accessibility is shaping up as the next big challenge for retailers with regards to ADA compliance.    A Miami federal judge has ruled that Winn-Dixie violated the Americans with Disabilities Act by not making its website, which was recently updated, accessible to blind and visually impaired users, the Miami Herald reported. The Jacksonville, Florida-based supermarket chain has set aside $250,000 to revamp its online site and was ordered to pay the plaintiff’s legal fees, according to the report.  

The Kroger Co. lowered its earnings guidance amid a decline in Q1 same-store sales as price competition in the supermarket industry intensifies.    Sales rose 4.9% to a better-than-expected $36.3 billion for the quarter ended May 20, up from $34.6 billion last year. Same-store sales excluding fuel declined 0.2%, the second consecutive quarter of decline.  

German discount grocery retailer Lidl made its hotly-awaited debut in the United States on Thursday, opening the first nine of 20 locations it plan to open over the summer.  The chain expects to have 100 stores up and running within a year.