Corporate Governance

In an age when mall owners’ overriding challenge is what to do with the space left by departed department stores, one 50-year-old center in California landed a new one.   Penney last week opened a 119,000-sq.-ft. location at Inland Center in San Bernardino, joining co-anchors Macy’s, Sears, and Forever 21. The fully renovated space it occupies was last home to Gottshalks.   

Current retail thinking that the high and the low ends are driving the industry has gotten a boost from CBRE Group.   High street rents are off the charts worldwide, according to company’s just-released Global Retail Rents report. Rents in prime shopping locations during the second quarter were up 30% in Rome, 24%, 20% in Milan, and 14% in Sydney and New York.  

Relatively slow supply chains are hindering department stores’ ability to compete effectively in today’s retail market.     

Starbucks Corp. has unveiled a new store environment for its Teavana division.    In the new store design, tea is not hidden in tins. Instead, loose-leaf teas are boldly displayed in large glass cylinders for customers to see and smell as employees help them create custom blends.  

The chip card (EMV) era has arrived with the promise that data in retail environments will be better protected. Cardholders will have much greater security at the point of sale with their own card data. But, while it will be much more difficult for thieves to steal card data at the point of swipe, the hackers are still hacking and data is still being lost – almost daily.  

Walmart recently announced that it provided pay increases for its managers who are currently making approximately $45,000 per year. By raising their salaries to $48,500 and keeping their duties intact, Walmart will not need to worry about the new federal overtime rules that go into effect on Dec. 1. As we all know, Walmart sets the pace for change (e.g., selling unboxed deodorant and antiperspirant, selling groceries and general merchandise in the same store, etc.) but will retailers follow suit here by simply increasing wages? Likely not.  

Spence Diamonds is dropping anchor in the United States with an innovative store concept and unique product offering.    The diamond retailer will open a store in Austin, Texas, on Nov. 7, followed by a location in San Jose, Calif., on Nov. 10. A store in Scottsdale, Arizona is planned for first quarter 2017, with additional markets to be announced soon.  

Nordstrom’s longtime CFO is stepping down.    Nordstrom announced that executive VP and CFO Mike Koppel has decided to retire from the company in spring 2017. Koppel will remain in his role until then to support the search for a new CFO and assist with his successor's transition.    Koppel joined Nordstrom in 1999 and has been the company's finance head since 2001.  

Nordstrom may be closed on Thanksgiving Day, but a new team of associates will be ready to serve shoppers come Black Friday.    The chain will hire approximately 11,400 seasonal employees that will be trained to serve customers at its Nordstrom and Nordstrom Rack stores, as well as in its fulfillment and distribution centers that support stores, Nordstrom.com, Nordstromrack.com, HauteLook and Trunk Club.   

While many retailers still struggle with how to leverage the Black Friday sales frenzy, REI has other plans in mind.   For the second year, REI will remain closed on both Thanksgiving Day and Black Friday, the busiest shopping day of the year. “Instead of feeding the Black Friday frenzy, we're closing our 149 stores and giving our 12,287 employees a paid day off,” REI’s website reported.