Corporate Governance

Analysis: Target’s top issue is the quality of its stores
At headline level, Target's results are a lot better than feared. The pace at which total and comparable sales are declining has eased over the prior quarter, and the company helped itself to a 7.7% increase in net earnings. Against a tumultuous retail backdrop, this is a not so terrible performance.
Target turnaround taking hold
Target Corp.’s efforts to turnaround its business appear to be taking hold — at least based on its better-than-expected first quarter performance. The discounter broke through the gloom that has characterized many other retailers’ first quarter results with earnings and sales that beat the Street and its own expectations. The company also gave a brighter outlook for the full year.

Report: Amazon exploring entering pharmacy market

Amazon may have its sights set on a new, multi-billion dollar market. The online giant may be on the cusp of entering the pharmaceutical dispensing business, according to a report by CNBC. The company reportedly has hired a general manager whose role is said to be helping the online retailer explore how to hang a pharmacy shingle.
Crayola Experience boosts Texas center conversion

The story of the reinvention of a mall into a multi-use development got more colorful this week. Crayola Experience announced it will place its fourth U.S. location in The Shops at Willow Bend in Plano, Texas, a Starwood mall that is adding a seven-story office tower, an expanded dining district, and the North Texas Performing Arts Center in a top-to-bottom transformation.
WPG, O’Connor go in on seven open-air centers

Washington Prime Group and O’Connor Capital Partner announced the formation of a joint venture partnership in seven open-air retail centers. WPG will be the controlling partner with a 51% stake. The seven properties are: • Arbor Hills in Ann Arbor, Michigan; • Classen Curve/Nichols Hills Plaza/The Triangle at Classen Curve in Oklahoma City; • Gateway Center in Austin, Texas; • Palms Crossing in McAllen, Texas;
Fast-food giant’s delivery service expands

More hungry customers can now get their Big Macs, fries, beverages and desserts delivered right to their door. As of Wednesday, May 17, McDonald’s is expanding its delivery service to customers in Los Angeles, Chicago, Columbus and Phoenix. Through its partnership with UberEats, the company’s “McDelivery” program now encompasses up to 1,000 restaurants in the United States.
Apple launches new store initiative

Apple wants to give its shoppers more reasons to visit its stores than to make a purchase or visit the Genius Bar.
Ralph Lauren taps veteran P&G exec as its new CEO

Ralph Lauren Corp. has named a 25-year Proctor & Gamble executive to head up its ongoing turnaround effort. The company appointed Patrice Louvet as president and CEO, effective July 17, 2017. At the time, he will also be appointed to the board. Louvet will dual report to founder Ralph Lauren in his capacity as executive chairman and to the company’s board.
Teen retailer posts mixed Q1 results

American Eagle Outfitters’ profit shrunk in the first quarter amid charges and discounting.
Lidl to make U.S. debut June 15—with low, low prices

German discount grocer Lidl is set to shake up the competition with prices that promise to turn up the heat on its U.S. competitors, who are already engaged in a price war. Lidl on Wednesday revealed the locations of the first 20 stores it will open this summer in the United States, starting on June 15. (See end of story for listing). The stores — in North Carolina, South Carolina and Virginia — are the first of up to 100 locations the grocer plans to open across the East Coast by next summer.
Teen apparel retailer files for bankruptcy protection

A month after it announced it would close 400 stores, the other shoe has dropped at Rue 21. The Warrendale, Pennsylvania-based retailer announced it has filed for Chapter 11 bankruptcy protection and entered into agreements with some of its lenders to reduce the company's debt and provide additional capital in support of its restructuring. The company, which expects to continue normal business operations throughout the process, listed its assets and liabilities in the range of $1 billion and $10 billion, according to its court filing.
More big numbers from Home Depot

The world’s largest home improvement retailer raised its earnings expectations as it announced first quarter sales and earnings gains that beat the Street. Net earnings for the first quarter of fiscal 2017 were $2.0 billion, better than expected, compared with net earnings of $1.8 billion, in the same quarter last year. For the first quarter of fiscal 2017, diluted earnings per share increased 16.0% from the same period in the prior year.