Corporate Governance

The first fully autonomous drone delivery to a customer home has occurred, and the retailer behind it is not who you would expect.   Leading convenience chain 7-Eleven partnered with independent drone delivery service Flirtey and the Nevada Institute for Autonomous Systems (NIAS) to complete two deliveries from a store in Reno, Nevada on Sunday, July 10. 7-Eleven merchandise, including hot and cold food items, were loaded into a Flirtey drone delivery container and flown autonomously using precision GPS to a local customer’s house.

Some three years after he returned to save J.C. Penney, industry veteran Myron E. (Mike) Ullman will retire from the company on Aug. 1.    Ullman is passing the reins of chairman of Penney’s board of directors to current CEO Marvin R. Ellison. The succession is in accordance with a transition plan the company outlined in 2014.  

Marla and Barry Beck, Founders of Bluemercury, open 100th store (Photo: Business Wire)   Bluemercury is testing a larger format space.    The specialty beauty products and spa retailer announced the opening of its 100th store, in Savannah, Georgia.     

Efficient Collaborative Retail Marketing (ECRM), a leader in business innovation and technology, has hired retail business-to-business media veteran Wayne Bennett as senior VP, retail to lead business process initiatives between the retail industry and the supplier community that serves them.  

Starbucks Corp.’s revenue fell short in the third quarter even as its earnings were in line with expectations.       The company posted $5.24 billion in consolidated net sales for the quarter ended June 26, up 7% over the year-ago period, but below analysts’ expectations of $5.33 billion. The increase was primarily driven by the opening of 1,876 net new stores over the past 12 months and a 4% increase in global comparable store sales.    

Starbucks Corp.’s “express” store format made its international debut, in London.   Designed for people on-the-go, the store has a welcoming environment with the barista and customer at its heart. Design features include textures of complementary natural wood and marble. It offers a streamlined menu with items displayed on digital menu boards that rotate throughout the day. The open layout allows for an early order point, which allows customers to order, pay and pick-up even faster.  

Target Corp. has expanded its commitment to renewable energy.    The discounter kicked off its first wind power partnership, buying a portion of the energy produced by a Starwood Energy Group wind farm to offset 100% of the energy used at 60 Target stores throughout Texas.   

With back-to-school spending on a “stock up” cycle rather than a “make do” cycle, total spending for K-12 and college school supplies is expected to reach $75.8 billion, up from last year’s $68 billion, according to the National Retail Federation’s annual survey conducted by Prosper Insights and Analytics.   

Alex and Ani is ramping up its store growth.   The Cranston, Rhode Island-based retailer plans to open 27 new locations in North America by the end of 2016, giving it a total of some 90 stores.     With the majority of its stores located on the East Coast, Alex and Ani, which is privately held, is now looking further afield. It will make its Southern California debut this fall, in Orange County.    

Restaurants now dominate retail for 15% of all sales, a point ahead of grocery for the top area of expenditure. Now it’s time for the special conditions of retail leasing to dominate the minds of shopping centers owners and managers, according to CBRE experts.