Corporate Governance

TAIPEI -- Gap will officially open its first Taiwan flagship store on March 8 as part of its ongoing strategy to expand Gap’s global footprint. With plans to open about 30 Gap stores across its Greater China region, including three in Taiwan, the brand expects to have more than 100 stores by the end of fiscal 2014.

Tampa, Fla. — RMC Property Group has acquired a 60,000-sq.-ft. shopping center in Palm Harbor, Fla., for $6.75 million, or $112 per square foot. It is located at the intersection of U.S. Highway 19 and Nebraska Avenue.

Anchor retailer Office Depot leases 100% of the center, which was built in 1997.

An estimated 3,000 suppliers and Walmart’s top executives are scheduled to participate in the retailers Product Sustainability Expo to be held from April 29 through May 1.

Promotional materials for the event, to be held at the John Q. Hammons Center in Rogers, Ark., describe it as an opportunity to recognize and celebrate amazing advances in sustainability and to discover emerging opportunities and innovations that represent a new standard in retail.

New York -- Private-equity firm Cerberus Capital Management has reached a preliminary agreement to buy Safeway Inc. for over $9 million, the Wall Street Journal reported. The deal is subject to board approval.

As part of the deal, Cerberus would pay roughly $40 a share for Safeway.

The Kroger Co., which recently completed its acquisition of Harris Teeter, reportedly was also interested in making a bid for Safeway. Even if a deal is announced between Cerberus and Safeway, Kroger could still mount a bid.

Issaquah, Wash. – Costco Wholesale Corp. reported a bigger-than-expected 15% drop in net income for the second quarter amid deep-discounting during the holidays. Net income in the quarter ended Feb. 16 fell to $463 million from $547 million.   
 
Costco blamed the lower earnings on several factors, including weaker sales of certain nonfoods merchandise categories and lower international profits. The year-ago period was also helped by a tax benefit.
 

Walmart didn’t mention competitive issues as a source of sales weakness during its fourth quarter, but reports this week from Kroger and Costco indicate they were at least a contributing factor.

New Albany, Ohio -- Abercrombie & Fitch Co. and Abercrombie & Fitch Stores, Inc. have offered to pay about $4,000 to one assistant manager for failing to pay proper overtime wages from May 16, 2010 to present, in connection with a lawsuit filed in the Eastern District of New York. Abercrombie agreed to pay the assistant manager's attorney's fees and court costs to be determined by the court.

In the sales versus margins battle at Costco, sales got the upper hand during the holiday season and the company’s second quarter ended Feb. 16.