Corporate Governance

Chain Store Age makes no secret of the fact that we are a retail publication – and have been since 1925. Our readership is retail headquarters executives and our content is directed toward, and influenced by, that very group.

In the September 2014 issue, however, we looked at another group – one that is integrally involved with retailers and often determines the success of a single store or an entire market:  retail brokers.

By Joe Tichar, senior VP of corporate operations, DDR, Beachwood, Ohio

Forward-thinking retailers are increasingly leveraging their brick-and-mortar locations to establish omnichannel models that meet the growing consumer demand for a more convenient, more cost-effective and more personalized shopping experience.
 

J.C. Penney Co. is testing new design treatments, merchandise presentations and service options at its new — and first ever — location in Brooklyn, New York. Located at Gateway Center, the 124,000-sq.-ft., single-level store boasts a contemporary exterior that incorporates clean lines, large glass panels, red accents and the unmistakable Penney logo.

The interior is bright and modern, with large murals of local landmarks. A variety of flooring surfaces, including polished concrete, wood laminates and grey ceramic tile, complement the streamlined design.

Houston -- In a deal that will create a national specialty bedding retail powerhouse, Mattress Firm Holding Corp. has agreed to acquire rival The Sleep Train Inc. for about  $425 million. As part of the deal, Mattress Firm said that it will also assume certain additional liabilities totaling about $15 million.

Sleep Train operates approximately 310 specialty mattress stores, primarily in California, Oregon, and other Western states. It reported net sales of $471 million for the 2013 fiscal year.

Issaquah, Wash. – Costco Wholesale Corp. on Thursday reported that its revenue for the fourth-quarter climbed 9% to $34.8 billion. Total same-store sales, excluding negative impacts from gasoline price deflation and foreign exchange, increased 7%.

Costco plans to open nine new warehouse stores before the end of calendar year 2014.

During the full fiscal year 2014, Costco reported a 7% jump in net sales to $110.2 million from $102.9 million. Total same-store sales rose 6%.  

San Jose and Menlo Park, Calif. – EBay and Facebook both reportedly experienced technical issues on Sept. 3. According to Fox Business, some EBay users were unable to gain entry to their accounts, while others reported their accounts had disappeared and their sales were no longer listed on the site.

Minneapolis – Women’s specialty retailer Christopher & Banks Corp. swung to a profit of $3.4 million in the second quarter of fiscal 2014, compared to a net loss of $285,000 in the prior year period. Higher pretax income and income operating, as well as a tax benefit, helped push Christopher & Banks into the black.

Evansville, Ind. – Increases in cost of sales and selling, general and administrative expenses (SG&A) drove a year-over-year reduction in net income during the second quarter of fiscal 2014 at Shoe Carnival Inc. The company reported net income of $2.58 million, down 59% from $5.84 million the same period a year earlier.

Net sales fared better, rising 3% to $222.1 million from $216.4 million. Same-store sales dropped 2.1%.

Ottawa, Canada - Trying to stay competitive with Amazon.com on price may not be the best path to success for department store and discount retailers. According to pricing analysis of 1,000-plus household goods based on Amazon’s own assortment relative to Kohl’s, Walmart, Target and Macy’s conducted by 360pi and Retail Systems Research from March-June 2014, Kohl’s was consistently 30%-60% above Amazon’s pricing for this sample, but also reported the healthiest financials of the group.

Atlanta – Havertys Furniture Company Inc. reports its total written business for the third quarter to date of 2014 is up approximately 3.1% from the same period last year and written same-store sales are up approximately 3.5%. This increase was driven by a record setting Labor Day holiday weekend for which total written business was up approximately 7.4% from the same four-day period the prior year.