Attitudes: Retailers

Volatility in the retail industry is now hitting senior retail executives in the pocketbook.   Seventy-three percent of retail companies paid little to no bonuses to senior executives in 2017 for 2016 performance, with 35% paying no bonus and 38% paying only small bonuses to their executives, according to new research by Korn Ferry. The company conducted an analysis of 40 North American retailers with annual sales between $1 billion and $50 billion  

There is an endless list of adjectives to describe the first six-months of the Trump administration. But one modifier is both accurate and acceptable — and that word is unpredictable.   For context, the first six months of the Obama and Bush administrations were fairly predictable. Both embarked on a legislative agenda that looked and felt a lot like their campaign platforms and while the legislative process for both was rocky, we knew what we were in for. Not so much this time around.  

The most digitally savvy generation to date has a soft side for physical stores.    Despite being digital natives, 57% of Generation Z say they prefer to shop in-store rather than online, according to a report from CrowdTwist, a provider of multichannel loyalty and engagement solutions.   

A new fraud pattern is emerging.    For 84% of U.S.-based companies, EMV has lowered their fraud prevention costs. However, 52% of retailers said their card not present (CNP) losses are growing.   This is according to the “2017 Global Payments Insight Survey: Merchants and Retailers,” from ACI Worldwide and Ovum. The study tapped 1,475 payments executives globally in December, 2016 -January, 2017.   

Wages

Amazon may face a contender for Whole Foods Market.   JP Morgan research analysts said in a note that Walmart could step in as a rival bidder for the grocery chain, reported CNBC, attracted by Whole Foods' more affluent customer base and strong brand.   

In a sobering statistic, one out of every 27 employees was apprehended for theft from their employer in 2016.   That's according to “The 29th Annual Retail Theft Survey,” conducted by Jack L. Hayes International, a loss prevention and inventory shrinkage control consulting firm. The survey is based on reports on over 380,000 shoplifting apprehensions that took place in 23 large retail companies, representing 16,038 stores with combined 2016 annual sales in excess of $370 billion.   

Wary about business conditions and jobs, consumer confidence dipped a bit further in May. But consumer still remain optimistic on the whole about the economy.     The Conference Board said Tuesday that its Consumer Confidence Index fell to 117.9 in May, from a revised 119.4 in April. The index hit 124.9 in March, its highest mark in 16 years.  

PREIT’s mall-pruning program picked up during the retail real estate industry’s big RECon show.   As the show floor opened in Las Vegas, the Philadelphia-based company announced it had put up for sale Logan Valley Mall in Altoona, Pennsylvania, and Valley View Mall in LaCrosse, Wisconsin. PREIT reported it had received unsolicited interest in these properties and was willing to dispose of them to increase its cash position.