Corporate Governance

MEMPHIS — Discount retailer Fred's realized positive third-quarter results, thanks to "strong customer traffic, higher gross margins in its general merchandise and pharmacy departments, as well as improved management of controllable operating costs," Fred's CEO Bruce Efird said.

Total sales for the retailer rose 2% to $444.4 million, compared with the year-ago period, while comparable-store sales were flat. Net income increased 16% to $9 million, compared with last year, while earnings per diluted share rose 20% to 24 cents.

The holiday season is about to get underway with what is expected to be the single greatest spending orgy in the history of commerce with more than $20 billion spent on Black Friday compared with $19.3 billion last year, according to MasterCard Advisors SpendingPulse.

Amsterdam -- A Monday report by Bloomberg said that Royal Ahold NV will grow its online business, expand its store count in Belgium and add 150 convenience operations in an effort to ramp up sales.

The Dutch owner of Stop & Shop is also on a cost-cutting mission, saying it will reduce expense by $473 million over three years via supply chain improvements and a reduction in logistics and overhead expense.

New York City -- The third annual Retail Finance Outlook released Tuesday by CIT Group found that 80% of retail executives expect their holiday sales to increase or remain the same as last year. And they are eying social media as a means to drive sales.

Among the notable shopping days this holiday season, more than one-third of executives expect Black Friday sales to increase this year; more than a quarter expect Cyber Monday sales to be up and nearly a quarter expect Super Saturday sales to increase.

Carle Place, N.Y. -- 1-800-Flowers.com announced Tuesday the signing of a 45-store franchise development agreement for its Fannie May Fine Chocolates division with GB Chocolates. The agreement calls for 45 new Fannie May franchise stores beginning in December 2011, with all open and operating by year-end 2014.

The first three stores under the agreement are slated to open in Minnesota in time for the Christmas holiday. The agreement provides exclusive development rights for several Midwestern states as well as specific cities in Florida and Ohio.

North Plainfield, N.J. -- Shopping center owner and manager Levin Management Corp., in its annual pre-holiday survey, found that more than a third of its retail tenants predict 2011 sales will be higher than 2010’s, while just 18.9% project a drop in sales for the 2011 holiday season.

The remaining 44.2% expect this year’s holiday sales to mirror last year’s.

Memphis, Tenn. -- Discounter Fred's Inc. reported Tuesday that profit for the third quarter rose 16% to $9 million, compared with $7.8 million a year earlier.

Revenue increased 2% to $444.4 million from $435 million last year, missing Wall Street’s expected $446.5 million in revenue.

Same-store sales rose 1.5%.

New York City -- A new retail concept, Wonder!, has opened it first location in Deerfield, Ill. The 135,000-sq.-ft. space is intended as a one-stop shopping solution, focused on children ages birth to seven years. It combines a broad selection of product (including baby gear, furniture, bedding, apparel, and toys) with an array of experiential elements.

Menomonee Falls, Wis. -- Kohl’s Corp. was recognized with its third Green Power Partner of the Year Award by the U.S. Environmental Protection Agency, the U.S. Department of Energy and the Center for Resource Solutions. The chain is the first retailer to be named Partner of the Year for three consecutive years.

East Cleveland, Ohio -- Walgreens received GE Lighting’s Retailer of the Year award in recognition of the drugstore chain’s transition from F28 to F25 linear fluorescent lamps, a strategic move that enabled the company to achieve a 9% energy savings while also extending its re-lamp cycle — how frequently it changes bulbs — by 10%. The award was presented at GE’s third annual LED & Energy Efficient Lighting Trends for Retail conference, held at the lighting unit’s headquarters in East Cleveland, Ohio.