eCommerce

By Neil Axler

“You can’t get your nails done online, you can’t get dry cleaning done online and you can’t eat the Internet.” These are the dominant themes from retail clients (property owners) over the last few years. Today’s shopping center acquirers are looking for “necessity centers” with a stable rent roll. These centers consist of restaurants, nail salons and other destination retail that is not competing with e-commerce.

Separating itself from Sears Holdings a year ago has not helped Land’s End financial footing judging from the company’s fourth quarter profit and same store sales decline.

Land’s End sales declined 4.9% to $504.6 million and net income declined 28% to $33.1 million in the fourth quarter ended Jan. 30. Merchandise sales and services were negatively impacted by a $3.4 million product recall in the quarter that negatively impacted net income by $2.6 million.

Las Vegas -- Kleinfeld Hudson’s Bay, a glamorous bridal shop on the top floor of the Hudson’s Bay’s flagship and headquarters building in Toronto,  took the big prize — Store of the Year — in the Association for Retail Environments 2015 Design Awards. The annual awards recognize the best in retail design, store fixtures and visual presentation.
 

The Army and Air Force Exchange Service (AAFES) recently conducted a first-of-its-kind initiative designed to simplify the process of selling to the major retailer.

Working with the American Logistics Association, AAFES participated in the trade group’s 2015 Exchange Impact Workshop in Dallas. Led by AAFES Chief Merchandising Officer Ana Middleton, she and more than 50 AAFES representatives detailed the Exchanges’ go to market strategy to an audience comprised of manufacturers, brokers, distributors, and service providers.

Philadelphia -- Five Below Inc. on Wednesday reported better-than-expected fiscal fourth-quarter net income of $33.3 million. It also confirmed plans to open 70 stores in 2015, up from 62 in 2014.

Net sales in the quarter, ended Jan. 31, increased by 24.4% to $263.8 million from $212.0 million the year-ago period. Same-store sales increased by 3.2%. The results exceeded Wall Street expectations.

For the year, the company reported profit of $48 million. Revenue was reported as $680.2 million.

Teen and tween specialty retailer Five Below is accelerating store growth this year even though its relatively young store base mustered a modest 3.2% fourth quarter same store sales increase.

Five Below opened 62 new stores last year compared to 60 units the prior year to end the year with 366 locations in 21 states. The additional selling space and a 3.2% comp increase caused sales to increase 24.4% to $264 million from $212 million. Profits increased to $33.3 million compared to $24.8 million.

Yet another study has documented retailers’ inability to keep pace with shoppers’ heightened expectations for a seamless experience driven by all manner of technological advancements.