Winter Holidays

By Craig Johnson, Customer Growth Partners

RadioShack CEO Joe Magnacca contends the company’s core strategies are working even though evidence of the success was hard to see between a steep third quarter loss and double digit same store sales decline.

Same store sales were down 13.4% in the third quarter ending Nov. 1, driven by traffic declines and soft performance in the mobility business, the company said. Total sales and operating revenue were $650.2 million, compared with $775.4 million last year.

City of Commerce, Calif. - 99 Cents Only Stores reported a loss loss and a decline in same store sales in the third quarter.   The company reported a loss of $3.8 million in the third quarter, ended Oct. 31, compared to income of $1 million in the prior year quarter.   Net sales increased by 5.0% to $478.3 million.  Same store sales decreased 0.7% compared with the prior year quarter.   

CHICAGO - In time for the holiday rush, General Growth Properties has introduced several new customer initiatives, including an arrangment with Uber to provide free trips (up to $60) to participating malls for all riders and free return trips for new Uber riders or those who spend more than $150 during their visit.   The shopping center developer is providing omni-channel initiatives like same day delivery; enhanced guest experience services; and one-of-a-kind holiday attractions.  

Despite the rollout of its new “Go Taller” initiative, 99 Cents Only Stores reported a decline in same store sales and profits in the third quarter.

Same store sales decreased 0.7% compared with the prior year quarter. The company reported a loss of $3.8 million in the third quarter, compared to posting an income of $1 million in the prior year quarter. Net loss as a percentage of total sales was -0.8% for the third quarter compared with net income as a percentage of sales of 0.2% for the third quarter of fiscal 2014.

Washington, D.C. – Retail sales showed slow but steady growth during November 2014. According to the National Retail Federation, retail sales, not including automobiles, gasoline stations or restaurants, increased 0.6% seasonally-adjusted from October and 3.2% unadjusted from November 2013.  The increases were in line with NRF’s holiday sales forecast, which anticipates an increase of 4.1% from 2013.   

Expense control and a more rational promotional environment helped Toys “R” Us reduce the size of its third quarter operating loss but the company had little to say about its outlook for Christmas sales and profits.

Purchase, N.Y. – A decline in the price of gasoline may be leading to a larger haul for many many people on Christmas morning. According to the latest MasterCard Advisors SpendingPulse, total retail sales without the automotive and gasoline sectors were up 3.6% in November 2014, reinforcing the dramatic decline in gasoline prices.