Research Topic

Corte Madera, California — Furniture and housewares retailer Restoration Hardware reported a profit of $1.8 million in the quarter ended May 3, compared with a loss of $161,000 last year. Results topped Wall Street expectations and prompted the company to raise its outlook for the year.

Revenue grew 22% to $366.3 million, from $301.3 million in the year-ago period. Wall Street predicted $346.7 million.
 

A study conducted by DHL e-commerce that compares consumer behavior across 20 markets has created a detailed look into how people shop around the world.

The “Shop the World” survey, which uses data from some 11,000 respondents, shows the growing prominence and earning potential of ecommerce and distance selling operations in different countries.

Atlanta — Consumer spending in the United States grew 4.2% year-over-year in May 2014, compared to April’s 4.1% year-over-year growth. According to Spend Trend analysis from First Data Corp., spending growth was driven by May’s warm weather, which specifically spurred spending on travel and home improvement.

Brussels, Belgium — The European Union (E.U.) is investigating lucrative tax breaks individual member countries such as Ireland, the Netherlands and Luxembourg have been giving major global companies including Starbucks and Apple. Media reports indicate the E.U. is focusing on whether certain tax loopholes these countries have provided some corporations qualify as “state aid,” which is prohibited under E.U. bylaws.

Fort Myers, Fla. — Chico’s FAS Inc. is reportedly considering taking itself private. According to Financial Times, the women’s apparel retailer has been holding talks with several private equity firms in recent weeks.

Franklin, Tenn. — Overall, mobile technology has created a roughly $8 billion industry in retail/hospitality worldwide, with POS a major factor. According to a new study from IHL Research, “Mobile POS: Reaching Escape Velocity – All Systems Go,” tablet POS systems are growing at a more than 300% rate in specialty retailers compared to 2013 levels.

San Francisco — U.S. retailers reported 5% year-over-year growth in general merchandise, apparel, furniture and other (GAFO) retail sales. According to monthly figures from in-store retail analytics provider Euclid, shoppers made fewer trips to the store than expected, but were very engaged and showed a lot of intent to buy.

Camp Hill, Pa. -- Rite Aid’s same-store sales rose 3.5% in May, boosted by a healthy increase in Rx sales.

The chain’s front-end same store sales increased 0.5%. Pharmacy same-store sales increased 5.0%. Total drugstore sales for the five-week period increased 2.5% to $2.48 billion, compared with $2.42 billion for the same period last year.

Prescription sales accounted for 68.0% of drug store sales, and third party prescription sales represented 97.4% of pharmacy sales.

ECRM compared retail circular advertising in May 2013 versus May 2014 and noted trends occurring across top retail chains. Walmart experienced a 90.1% increase in ads per circular, largely due to a reduction in the number of circulars from 10 in May 2013 to six in May 2014. Despite this decrease, overall page count remained fairly stable. These fewer, lengthier circulars were the result of an increased willingness to promote a number of categories within one circular. Eight of last May’s 10 circulars consisted of four pages or fewer.

No company hired more veterans last year than Walmart, but that distinction was only enough to earn the company the 23rd spot on Military Times annual ranking of the best companies for veterans.