Corporate Governance

When Whole Foods Market announced in May that it planned to open a new chain of stores offering a lower price point and specifically targeting millennials, it’s safe to say that the reaction from industry analysts and observers was underwhelming. Responses have ranged from confusion to outright skepticism, and there is a general sense of uncertainty surrounding the whole enterprise.

Franklin, Tenn. – Retailers lose $1.1 trillion worldwide due to inventory distortion. According to new research from IHL Group, by fixing problems such as out-of-stocks and excess inventory from overstocks, retailers could improve their revenues by 7.5%.

The combined cost of poor merchandise planning alone equals $452 billion. Inventory distortion costs retailers nearly $158 for every person on the planet, and $252.2 billion annually in North America. The Asia/Pacific region contributes 39% of all inventory distortion.

Minneapolis – Christopher & Banks Corp. swung to a net loss of $1.4 million in the first quarter of fiscal 2015, compared to net income of $2.6 million the same quarter a year earlier. Total costs and expenses exceed net sales of $91.62 million, which was an 11 % drop from $103.37 million, while same-store sales dropped 11.7%.

During the second quarter of fiscal 2015, Christopher & Banks expects to open one new Missy, Petite, Women (MPW) and 14 new outlet stores, and also close one CB store and convert seven others to MPW stores.

Washington, D.C. - Import cargo volume at the nation’s major retail container ports has returned to normal levels following ratification of a new West Coast labor agreement, according to the monthly Global Port Tracker report released by the National Retail Federation (NRF) and Hackett Associates.

Deerfield, Ill. - Walgreens is collaborating with the new social competition app Challenged to challenge customers to bring their best summer beauty tip to life in a 12-second video using either Circa Beauty or Nonie Creme Colour Prevails products. Beauty expert Lauria Locsmondy of the Walgreens Social and Content creative team will judge the top 3 "viewed" Beauty Challenge videos submitted based on use of Circa and/or Colour Prevails items as primary component of the look, clear steps to achieve the look, and summer-relevant look.

Sunderland, Vt. - William R. McLaughlin has been named as the new president of the Orvis Company Inc. He will succeed Raymond G. McCready, who will retire later this year.  

McLaughlin will assume the post July 27. McLaughlin's early career included leadership roles with Pillsbury and PepsiCo. At Pepsi, he managed several of their international businesses and rose to become president of Frito Lay Europe, Middle East & Africa.  From 2000 to 2012, McLaughlin was president & CEO of the specialty retailer Select Comfort Corp.

Hoffman Estates, Ill. – Sears Holding Group Inc. has filed a $1.57 billion subscription rights offering with the SEC for its real estate investment trust (REIT) known as Seritage Growth Properties. The offering would give Sears shareholders the right to buy up to 53.3 million shares of the REIT at a share price of $29.58.

Seritage also plans to sell 9.5 million class C non-voting shares to Fairholme Capital Management LLC, Sears’ second-largest shareholder, at the same price. This would give Fairholme a roughly 12% stake in Seritage.

Corte Madera, Calif. - RH, Restoration Hardware, will announce plans for the launch of a new business on Thursday, June 11, after market close. RH chairman and CEO Gary Friedman will unveil the new concept during the company’s first quarter fiscal 2015 earnings video.

No other details have been made available at this time.

Ankeny, Iowa – Casey’s General Store beat Wall Street expectations for profit and revenue during the fourth quarter of fiscal 2015. Net income roughly doubled to $41.34 million from $20.94 million, fueled by a drop in cost of goods sold.

Total revenue fell 14% to $1.65 billion from $1.92 billion, but still exceed analyst estimates.

During fiscal 2016, Casey’s plans to build or acquire 75 to 113 stores, replace 10 existing locations and complete 100 major remodels.

Toronto - Sears Canada Inc. has closed a transaction to sell and leaseback three properties to Concord Pacific Group of Companies. The transaction, originally announced on March 11, 2015, has closed for total proceeds of $140 million.