Corporate Governance

The purchasing power of Walmart shoppers is on the rise as gas prices come down and the improved spending outlook has the company’s share price setting new highs. What’s there to worry about?

Plenty, according to a survey of top executives conducted by the Business Roundtable, an organization that represents companies who combined employ more than 14 million people and generate $6 trillion in annual sales. Member companies include the likes of Walmart, General Electric, AT&T, ExxonMobil and American Express.

Early indications are it will be a solid year for Back-to-School sales and that’s good news for Walmart. The company typically enjoys healthy seasonal sales, but this year it will be facing more challenging sales comparisons during the back half of the year as it begins lapping prior year same store sales increases. Click here.
 

Improved procurement processes at Gymboree are being eyed as a means for the specialty retailer to reduce expenses.

Gymboree, operator of 1,155 stores, said it retained the procurement management firm LogicSource after the firm conducted a detailed analysis of Gymboree’s procurement spend and identified significant savings opportunities. LogicSource will give Gymboree access to its broad-reaching procurement industry expertise, provide a comprehensive vendor network, and drive efficiencies through smart centralization, according to LogicSource.

Richfield, Minn. -- The interim CEO of Best Buy told shareholders Thursday that the company is committed to changing its fundamentals in order to operate closer to its potential.

Mike Mikan is trying to right the electronics retailer’s ship as it attempts to recover from the sudden – and unseemly – departure of CEO Brian Dunn as well as the ensuing resignation from chairman and founder Richard Schultz over the last two months.

Armonk, N.Y. -- A survey released Thursday by IBM found that chief marketing officers and chief information officers must join forces in order to connect with today’s consumer across new channels including mobile devices and social networks.

Davenport, Iowa -- Department store retailer Von Maur said Thursday it has begun construction on an expansion of its e-commerce fulfillment center to support continued growth in its web presence.

Projected for completion in October 2012, the expansion will add an additional 73,000 sq. ft. to the company's current 46,000-sq.-ft. center in Davenport, Iowa.

San Francisco -- The Gymboree Corp. and procurement management firm LogicSource announced Thursday an agreement under which LogicSource will provide procurement and management expertise to deliver cost savings to Gymboree.

Terms of the agreement were not disclosed.

Beachwood, Ohio -- Blackstone's flagship real estate fund and DDR Corp. announced Thursday hat a joint venture formed by the two entities has closed on the acquisition of a portfolio of 46 shopping centers previously owned by EPN Group.

The joint venture has assumed approximately $635 million of senior non-recourse debt and has originated an additional $320 million non-recourse loan facility, which has a five-year term.

A heat wave washed over Las Vegas just in time for the International Council of Shopping Centers’ annual RECon event May 20-23 — and the mood inside the Las Vegas Convention Center was just as elevated.

“I am very bullish on this year’s RECon,” said Andy Graiser, co-president of A&G Realty Partners, Melville, N.Y. “Growth is becoming evident in most all categories, and it’s smart growth.”

Sustainability is a top priority for Walmart, and energy efficiency is central to its efforts. One of the chain’s three primary long-term objectives is to use 100% renewable energy. Walmart is actively working to meet that goal with projects that employ a wide range of technologies, from solar power to fuel cells, in development across the country.