Corporate Governance

There’s been a reorganization at Whole Foods Market.   On Wednesday, the natural-foods retailer named a new chairwoman and five new independent directors, effective immediately. It also appointed a former Kohl’s executive as CFO.   The changes come as activist investors and restless shareholders have been demanding Whole Foods accelerate the turnaround its business. The board shakeup came on the same day as the retailer released second quarter earnings that met analysts’ expectations. 

Office Depot’s profit in the first quarter more than doubled as its reduced store count led to lower operational costs.   The company's net income increased to $116 million, or 22 cents per share, in the quarter ended April 1, from $46 million, or 8 cents per share, in the year-ago period. Its results beat analysts’ expectations.  

Timberland has made yet another executive appointment to support its growth strategies.   The company named footwear industry veteran Tracy Smith as VP and general manager of Timberland North America. In this role, he will lead the strategic vision and operations of Timberland’s wholesale and direct to consumer businesses in North America, with responsibility for strategy, merchandising, sales, marketing and operations.  

The Retail Design Institute’s most prestigious event is returning to New York.    The Institute will hold its 46th Annual Design Awards Gala & Fundraiser at Current at Chelsea Piers, overlooking the Hudson River and Chelsea Piers marina, on May 24, 2017, from 6-9 p.m. The event will celebrate Best in Class Design projects from around the world, and also the winner of the coveted Store of the Year award. Proceeds from the event will benefit the Institute's 2017 Student Design Competition Prize Fund.  

Hudson’s Bay Co. has brought in professional advice regarding its potential merger with Neiman Marcus.    The Canadian department store company has hired a debt restructuring adviser, investment bank Evercore Partners Inc., to review the potential acquisition and provide Hudson’s Bay Executives with ways on how it could proceed without Hudson’s Bay assuming Neiman Marcus’ full debt, according to a Reuters report on CNBC.com.     

As retailers continue to navigate challenging conditions, they need to ensure their people strategies and pay programs are flexible and supportive, not ridged and dated. What follows are different approaches to working through some of the difficult, but necessary, steps to improving retail pay programs to fit the basic actions some retailers must now take.    Being Proactive Not Reactive

There’s been a shakeup at Bon-Ton Stores.   The department store retailer announced that Kathryn Bufano, president and CEO, will leave the company when her contract expires on August 25. She will be succeeded by William Tracy, currently the retailer’s COO. He will be Bon-Ton’s fourth chief executive since 2012.   

The free shipping wars seem to be heating up again.   In a posting on its website, Amazon said it has lowered its free shipping minimum for non-Prime members on eligible items to $25. Merchandise will be delivered in five to eight business days.   It’s the second time this year that Amazon has made it easier for shoppers to qualify for free shipping. In February, the online giant reduced its minimum order amount from $49 to $35.   

Party City on Tuesday announced earnings and revenue that topped expectations, and said it would launch an online marketplace for party services.