Department Store

Macy’s longtime CEO, Terry Lundgren, will step down in the first quarter of 2017, to be succeeded by a company veteran.    Lundgren, who has been CEO of the department store giant since 2003,  is stepping down as the retailer finds itself challenged with a transformed retail landscape and changing consumer demands.  He will be succeeded by Jeff Gennette, 55, who was named president of Macy’s in 2014 after serving as chief merchandising office since 2009. 

Bed Bath & Beyond Inc.’s  first quarter profit  declined amid flat sales and  increased expenses that cut into its bottom-line.   The company’s profit fell to $122.6 million from $158.5 million in the year-ago period, less than analysts had expected.   Sales remained flat year-over-year at $2.74 billion, also below estimates. Same-store sales decreased 0.5%. 

Some things are easier said than done. And increasingly, that notion applies to closing stores.   Although analysts and investors say that retail companies need to continue to shrink their store portfolios, the decision to do has become increasingly complex for merchants, many of whom have already shed their most unprofitable locations, according to a CNBC report.  

With all the attention placed on cybercrime, it is easy to overlook the threat posed by old fashioned shoplifters and dishonest employees.  

Restoration Hardware Holdings Inc. (RH) has appointed Hilary Krane to its board of directors, effective immediately.   Krane is the executive VP, chief administrative officer and general counsel of Nike Inc. She will also serve on the board’s audit committee. Prior to joining Nike in 2010, Krane held various roles at Levi Strauss & Co., including senior VP, general counsel and corporate affairs.  

H&M isn’t letting a weak second quarter performance stand in the way of its ambitious expansion plans.   The Swedish retailer’s profit in the quarter, which ended May 31, fell 17% to 5.357 billion Swedish kronor ($649.6 million), according to MarketWatch, as unusually cool weather dimmed sales of spring clothing and a strong U.S. dollar added to its costs. The strong dollar will have a negative impact on purchasing costs for the third quarter and a neutral effect in the fourth, the chain said.  

WP Glimcher announced that CEO and vice chairman Michael Glimcher has resigned from the REIT founded by his father, Herbert. Board member Louis Conforti was named interim CEO at the company slated to be rebranded as the Washington Prime Group.   Several other senior leadership changes were announced, including the replacement of Mark Ordan as board chairman with Robert J. Laikin, who had been the board’s lead independent director. Ordan stays on as a director.  

Circuit City is reportedly getting closer to a relaunch.   The new owner of the defunct consumer electronics chain is currently working with brokers from CBRE to open a 6,000-sq.-ft. to 9,000-sq.-ft. prototype store in Dallas, reported consumer electronics industry publication Twice.     The relaunched business will also include a dedicated e-commerce site, as well as a presence on digital marketplaces such as Amazon.