FINANCE

Rent-A-Center Inc. has taken action to reduce the likelihood that an investor gains unsolicited control of the company.   The nation's largest rent-to-own operator has adopted a stockholder rights plan, or a so-called poison pill, that would become exercisable if a group buys 15% or more of its outstanding shares.  

A new deal could give Amazon a foothold in the Middle East.   Amazon has agreed in principle to buy Souq.com, a leader in the Middle East's online shopping market, according to a report in Reuters.   

Payless could be the newest retailer headed toward bankruptcy.   The struggling retailer could file for bankruptcy as soon as next week. In the meantime, Payless is already making plans to reorganize operations by shuttering stores, according to Bloomberg.   

A combination of sluggish mall traffic, a shaky sporting goods industry, and poorly performing merchandise took a toll on The Finish Line in the fourth quarter and fiscal 2016.  

Highly promotional activity and increased multichannel initiatives not only helped Shoe Carnival hit its expectations, but exceed $1 billion in net sales for the year.   For the quarter ended January 28, 2017, the retailer’s net sales were $234.2 million, a 0.2% increase, compared to net sales of $233.7 million for the fourth quarter of fiscal 2015. While it was in line with its goals, this was just shy of Wall Street’s prediction for sales of $235 million.  

Online gaming is taking its toll on GameStop in a big way.   The retailer said that its video game category was weak, particularly in the second half of the year. This challenge, combined with shoppers’ attraction to online gaming, contributed to a total global sales decrease of 13.6% to $3.05 billion for the fourth quarter ended January 28, 2017.   The company earned $208.7 million, in the fourth quarter, compared with profits of $247.8 million for the same period a year ago.  

Despite dire statements made on a recent SEC filing, Sears and Kmart stores will remain as fixtures on the retail landscape for some time to come, according to retail real estate experts contacted by Chain Store Age.   “The news was not news,” said REIT analyst Alexander Goldfarb of Sandler O’Neill + Partners about a Sears filing that questioned its own future as a “going concern.”  

With Easter being almost a month later than last year, Americans are on track to spend more than ever, according to the National Retail Federation.