Retail

Minneapolis – Best Buy’s “Renew Blue” cost reduction program appears to be succeeding, as the retailer reported profit instead of loss during the fourth quarter and fiscal year 2013. The improvements came even as revenues in both periods declined compared to the same periods a year earlier.

During the fourth quarter, Best Buy reported net earnings of $311 million, a substantial improvement from its $460 million net loss a year earlier and above Wall Street projections.

A slowdown in firearms and ammunition sales as well as severe winter weather affected Big 5 Sporting Goods’ fourth quarter same-store sales.

Net sales increased about 2% to $248 million from $243.6 million, while same-store sales declined 0.5%. During the quarter, net income rose 30% to $5.2 million from $4 million compared to the same period in the prior year.

During the fiscal year, net income almost doubled, rising 87% to $27.9 million from $14.9 million. Net sales improved 6% to $993.3 million from $940.5 million and same-store sales rose 3.9%.

Minneapolis – Target Corp. saw dramatic year-over-year declines in its net earnings for the fourth quarter and fiscal year 2013, as the negative impact of its massive data breach and damages from its Canadian operations took effect. The chain warned that continuing costs related to the breach may affect its profits in the first quarter of fiscal 2014.

By Richard P. Fennelly, director of product development, Coilpod

It’s a well-known industry fact that refrigeration and freezer appliances, which are no longer exclusive to supermarkets, are major electricity “hogs” in retail stores.  

In a sign of some progress in its turnaround efforts, J.C. Penney reported a net profit of $35 million for the fourth quarter ended Feb. 1, compared to a loss of $552 million a year ago. Excluding a tax benefit and other items, Penney had a loss of $206 million for the quarter.

Looking forward, the company expects same-store sales to increase approximately 3% to 5% for the first quarter and to increase mid-single digits for the full year 2014.

Chicago — Aurelio’s Pizza has leased a 5,163-sq.-ft. store at 1212 South Michigan Avenue in Chicago. It will become Aurelio’s flagship location and first corporate-owned restaurant in downtown Chicago.

RKF’s Chicago office represented the landlord on the long-term lease. Baum Realty represented Aurelio’s.

Washington, D.C. -- The National Retail Federation (NRF) is officially recognizing the financial institution JPMorgan Chase & Co. for its decision to issue Europay, Mastercard and Visa (EMV)-compliant payment cards that require customers to enter a personal identification number (PIN), as well as store their personal data in an encrypted microchip.

Abercrombie & Fitch’s fourth quarter was affected by the company’s closure of 24 Gilly Hicks stores in the fourth quarter, as well as other asset impairment charges and charges related to its profit improvement initiative.

Although the company’s net income decreased significantly in the quarter — 58% — it did not fall as much as Wall Street expected.

The company’s board also approved a $150 million accelerated share repurchase plan, to be executed during the first quarter.