Corporate Governance

Nordstrom delivered a strong performance in its fiscal third quarter even as a hefty charge related to its Trunk Club business ate into its profit.   Total net sales rose 7.2% to a better-than-expected $3.5 billion from $3.2 billion a year ago, fueled by the shift of the company’s popular anniversary sale to the quarter. Same-store sales increased 2.4%, also more than expected. As it has done in recent past quarters, Nordstrom Rack outpaced the full-priced division, Net sales were up more than 10%, and same-store sales rose nearly 4%.

Weakness in apparel helped make for a disappointing third quarter for J.C. Penney Co. as the retailer cuts its forecast amid sliding sales.   On the positive side, Penney said sales trends improved in October, fueled by increasing momentum behind its new appliance business.  

Neil Saunders, CEO of retail insights and consulting firm Conlumino, comments on J.C. Penney’s results for the third quarter in which sales came in under forecasts.   “After a good run of growth, J.C. Penney has faltered this quarter with both total and comparable sales slipping into negative territory. While the company is now overlapping some tougher prior year comparatives, this is nonetheless a disappointing outcome that takes the shine off some of the recent progress made under its recovery program.  

Today, many businesses make free shipping standard. Or, establish majorly moderate price points through which consumers can earn free shipping.    However, free shipping often comes with a price – literally and figuratively. And the truth is, many companies are not positioned to do “free” shipping all that well.   

Alex and Ani has promoted Cindy DiPietrantonio to president of the company.           DiPietrantonio joined the jewelry and lifestyle brand in July 2016 as interim COO, and her transition to president has happened in “a very natural, organic way,” the company said.  

Retailers and other employers of minimum-wage earners can expect to see their labor costs go up in four states.    Voters in the states of Colorado, Maine, Washington, and Arizona all approved measures to raise their state’s minimum wage in Tuesday’s election.   The biggest hike will be in Maine, where the minimum hourly pay will increase from $7.50 to $12 by 2020, and later increasing with inflation.    

The unexpected election of Donald Trump as president has serious implications for the retail supply chain, which could especially effect online commerce,    

Chinese shoppers were so eager to participate in Singles Day that they purchased more in the first hour than the entire 24-hour event in 2013.   Specifically, more than $7 billion of gross merchandise volume (GMV) was settled through Alipay on Alibaba’s China and international retail marketplaces within the first two hours of the 2016 “11.11 Global Shopping Festival,” according to a company statement. The annual shopping event kicked off at 12 a.m. China Time, on Nov. 10.  

Competition is fierce in the apparel business — even for online players with a devoted following.   Los Angeles-based women’s apparel retailer Nasty Gal has filed for Chapter 11 bankruptcy protection.      

As Amazon continues to up the ante on convenient, fast shipping options, shoppers expect their favorite brands to follow suit.   Specifically, 42% of shoppers surveyed consider three- or four-day shipping "fast" – a significant drop from the 63% who said so last year. Instead, the majority (83%) of shoppers consider fast shipping to mean delivery within two days or less, according to the “2016 Deloitte Holiday Study,” a report based on responses from 5,038 consumers in the United States.