Corporate Governance

Wayne, N.Y. -- Toys “R” Us CEO Antonio Urcelay has replaced Gerald Storch as chairman of the company. Urcelay, appointed interim CEO at Toys “R” Us in May 2013, was officially named chief executive in October.

Storch, who had previously served as CEO, is stepping down as chairman to dedicate more time to his consulting company, Storch Advisors, Toys “R” Us said in a filing with the Securities and Exchange Commission.

By Kathy Gersch, executive VP, Kotter International

One thing is certain in the world of retail: the pace of change is accelerating, and competition is fierce. Longstanding retail behemoths are dying, new specialty stores are springing up overnight, and everyone is desperately searching for new ways to stay ahead of the competition while keeping themselves from sinking. People talk about this, but in my opinion, they are missing the true problem.

New York – Barnes & Noble employed cost-cutting measures that shifted net loss to net income for the second quarter of fiscal 2014 even as net sales took a tumble. Net income of $13.2 million compared to a roughly $502 million net loss reported in the second quarter of fiscal 2013.

New York – Aeropostale Inc. has adopted a poison pill that would be set into motion if a stockholder buys 10% of the company.  

The struggling retailer said it was not adopting the plan, effective November 26, 2013, in response to any takeover proposal. Rather, the plan aims to provide stockholders with adequate time to fully assess a takeover bid, and, if appropriate, allow the board time to explore alternatives to maximize stockholder value, the company said.

New York – Tiffany reported a 50% increase in net income in its third quarter of fiscal 2013, increasing to $94.6 million from $63.2 million. Net sales were $911.5 million, up 7% from $852.7 million.

Net sales growth was strong worldwide but especially pronounced in the Asia-Pacific region, where net sales increased 27% compared to the same period in the prior year. Tiffany credited global net sales performance as driving its net income growth.

Fort Myers, Fla. – Chico’s FAS reported declining net income during the third quarter of fiscal 2013 even as net sales grew. Net income totaled $35.8 million, down 15% from $42 million in the same period a year earlier.

Columbus, Ohio – DSW Inc. experienced a successful third quarter of fiscal 2013, with net income and total sales both rising from the same period in the previous year. Net income equaled $55 million, up roughly 10% from $50.1 million, while total sales of $633 million were about 7% higher than $593 million.

In one negative result, same-store sales fell 0.7%. However, the retailer opened 16 new stores and launched new omni-channel initiatives.

Plano, Texas – Myron Ullman, CEO of embattled department store chain J.C. Penney, has reportedly bought $1 million of company stock. According to the Associated Press, Ullman purchased 112,000 shares at $8.95 apiece on or around Nov. 22.

Toronto -- RBC, Best Buy and Future Shop are partnering to offer a redemption option in Canada that provides clients access to more than 90,000 merchandise and electronic items, through the RBC Rewards online channel.

Richmond Hill, Ontario – Cross-channel fulfillment programs are the top omni-channel priorities among retailers, a newly released study of 337 global retail decision-makers, “The Retail Order Management Imperative,” conducted by Forrester Consulting on behalf of OrderDynamics, revealed.

While only 49% of retailers currently use an order management system, many of these solutions are ill-equipped to support complex cross-channel fulfillment offerings.