Corporate Governance

Struggling Sears Holdings Corp. may be aiming its new line of connected home appliances and tools directly at rival department store chain J.C. Penney.  

Retail store expansion could get a boost from lower rents in the next 12 months as real estate investment trusts react to volatility in global financial markets, according to Pacific Investment Management Co.   In a report titled, “U.S. Real Estate: A Storm Is Brewing,” PIMCO portfolio managers John Murray and Anthony Clarke forecasted a drop of as much as 5% in commercial real estate prices due to a confluence of factors including public market volatility, tightened regulations, and uncertain foreign capital flows.

So far, bidding on the 464 stores of bankrupt sporting goods retailer Sports Authority has been limited. According to Reuters, Dick’s Sporting Goods has placed a bid on 17 Sports Authority stores, with other bidders only attempting to purchase single locations. 

Walmart Canada has appointed Lee Tappenden, COO, Walmart Canada to the position of president and CEO, Walmart Canada, effective Aug. 15.   Tappenden joined Walmart in 1996 and has held a number of global leadership roles with the company, including chief merchandising officer with Walmart Japan and VP of merchandising for the international division.  

The National Retail Federation (NRF) is publicly supporting a tax reform proposal released today by House Ways and Means Committee Chairman Kevin Brady, R-Texas.  

Japanese specialty apparel retailer Uniqlo is expanding its U.S. presence into the Southeast, and is also expanding its relationship with Disney.    The company will open a two-level, 25,000-sq.-ft. store on July 15 in Disney Springs at Walt Disney World Resort in Lake Buena Vista, Florida. It will be Uniqlo’s first location in the Southeast.   

Michael O’Hanlon, who has been an executive with Wayfair Inc. for a decade, is transitioning to a new role with the company.   O’Hanlon has been named VP of government and industry relations. Previously Wayfair’s VP of corporate and business development since September 2006, O’Hanlon will now spearhead government relations strategy and ongoing collaboration with legislators, policymakers, regulators and other industry leaders at the federal, state and local levels.  

Every seven seconds, a Baby Boomer turns 50. Boomers represent a substantial and critical employee demographic for retailers. The retail trade industry in the U.S. employs 15 million people, or nearly 10% of the workforce, and approximately 38% of this workforce is over the age of 50.   

Nordstrom  plans to shutter its location at Horton Plaza, in downtown San Diego.  The store, which opened in 1985, will remain open through August 26, 2016.   "These are always tough decisions to make, but in taking a look at the store's performance and our business needs into the future, we believe this is the best direction to take," said Jamie Nordstrom, president of stores for Nordstrom. "We look forward to serving our loyal Horton Plaza customers at our other San Diego stores.”  

Watch out Best Buy, the nation’s largest ecommerce retailer is on your tail.   According to a report by barrons.com, Amazon has moved ahead of Walmart to take the number two spot, behind Best Buy, as the nation’s largest electronics retailer.