Department Store

New York -- A mixed economic backdrop is expected to drive modest retail sales growth in the 3% to 4% range in 2015, compared to 5.5% average growth in 2010-2012 and 5.8% in 2002-2006, according to GE Capital. Low- and mid-income households will be particularly constrained by stagnant earnings despite improvements in employment status and the housing market as well as lower gas prices.
 
According to GE Capital, the key trends in retail include the following:

Columbus, Ohio -- L Brands shareholders will receive a post-holiday gift in the way of a $2 a share special dividend. The news comes as the retailer, which also increased its ordinary annual dividend by 47% to $2 a share from $1.36 a share, reported significantly better than expected profits for its fourth quarter.

L Brands, whose brands include Victoria’s Secret, Bath & Body Works and La Senza, said same-store sales increased 7% and total sales for the four-week period ended Jan. 31 increased 7% to $783.1 million.

New York -- U.S. retail and consumer (R&C) total transaction value for 2014 hit a five-year high and surpassed the $100 billion mark for the second year in a row, according to PwC’s U.S. retail and consumer deals insights 2014 Year in Review and 2015 Outlook report.

Nashville, Tenn. -- It’s a changing of the guard at Kirkland's. Following its successful holiday performance, the home goods company announced that current president and COO Mike Madden will step into the CEO role, effective Feb. 8. He succeeds Robert Alderson, who will remain on the company’s board, which is being expanded to accommodate his addition.

Plano, Texas -- J.C. Penney is partnering with InStyle magazine to reinvent its 850 in-store salons nationwide in a move that could help the retailer pump up its volume and increase traction with younger shoppers. The new concept, called The Salon by InStyle, will make its debut in July, at 15 locations across Chicago, Dallas, Miami and Los Angeles.

Boston -- Three of the nation’s largest asset disposition companies were the successful bidders in the race to liquidate inventory at Target’s 133 Canadian locations.
 
Gordon Brothers Group, Hilco Global (through its Canadian division  Merchant Retail Solutions) and affiliates of Great American Group secured approval from Target Canada and an order from a Canadian court to manage the store closing process for Target’s 133 Canadian locations, with store closing beginning February 5, 2015.
 

St. Louis -- Brown Shoe Company announced that Kenneth Hannah has been named senior VP and CFO of the company, replacing Russ Hammer as of Feb. 16.

Hannah most recently served as executive VP and CFO of J.C. Penney Co. Prior to that time, he served in multiple executive roles at SunEdison (formerly MEMC Electronic Materials), including president of Solar Energy and of Solar Materials and as VP and CFO.

New York -- Cache on Wednesday said it had filed for Chapter 11 bankruptcy protection after running out of capital and time to complete its turnaround. The women’s apparel retailer will continue to operate its business, but intends to continue to reduce its store count and sell and renegotiate some of its leases.

Cache chairman and CEO Jay Margolis said the company filed Chapter 11 with the goal of “securing Cache’s future.”