eCommerce

Mexico City -- Multiple reports on Wednesday revealed that Wal-Mart Stores’ Mexican arm has been leveled with new allegations concerning tax evasion and money-laundering schemes.

The accusations against Walmex were outlined in a letter by U.S. Rep. Henry Waxman, sent Tuesday to Wal-Mart CEO Michael Duke and suggesting that the company “"may have had compliance issues relating not only to bribery, but also to 'questionable financial behavior' including tax evasion and money laundering in Mexico."

City of Industry, Calif. -- Hot Topic reported Wednesday a loss of $800,000 for the second quarter, tightened from a $6.2 million loss in the prior-year quarter.

Revenue rose 4.6% to $157.8 million compared with $150.9 million, and same-store sales increased 3.9%.
 

Savannah, Ga. -- Despite narrowing its loss in the second quarter from $10 million to $7.9 million this quarter, Citi Trends still missed Wall Street expectations.
 
Revenue edged up 2% to $132.3 million, which also missed analysts’ forecast. Wall Street expected sales of $133.9 million.
 
Same-store sales slipped 4%.
 

New York – A report by Women’s Wear Daily said that shapewear brand Spanx will launch a retail presence, with four store openings in the coming months.

Expanding its online and department-store presence, Spanx will open three standalone branded stores in October, according to WWD, located in Tysons Corner Center in McLean, Va.; Garden State Plaza in Paramus, N.J.; and King of Prussia Mall in Philadelphia.  A fourth store is slated to open at Atlanta’s Hartsfield-Jackson airport.

Moorestown, N.J. -- Philadelphia-based Pennsylvania Real Estate Investment Trust said that Crazy 8 will open its Moorestown Mall property, located in Moorestown, N.J.

The 2,505-sq.-ft. store is slated to open this fall in the 1 million-sq.-ft. enclosed regional mall anchored by Macy’s, Lord & Taylor, Sears and Boscov’s.
 

I’ve written before about the ongoing trend of some of the biggest names in retail downsizing. Now I’m seeing how brands like Target, Wal-Mart and Office Depot are rolling out smaller new store formats in urban environments, and it has me thinking about how this downsizing phenomenon might be even more important than many people realize.

Minneapolis -- Target Corp. reported Wednesday that profit for the second quarter remained essentially flat at $704 million.

Sales advanced 3.5% to $16.45 million, boosted by a 3.1% same-store sales rise in the quarter but missed Wall Street’s expected $16.75 million in revenue.

New Albany, Ohio -- Abercrombie & Fitch reported Wednesday that net income in the second quarter slid 52% to $15.5 million, compared with $32 million in the year-ago period.

Total sales rose 4% to $951.4 million, missing Wall Street’s forecast of $954.9 million, and U.S. sales fell 5%. The retailer said Wednesday it is cutting its 2012 earnings guidance and will open fewer international Hollister stores in fiscal 2012 than initially planned.
 

Framingham, Mass. -- Staples reported Wednesday that profit for the quarter ended July 28 plummeted 32% to $120.4 million from $176.4 million, prompting the office supply retailer to cut its full-year guidance.

Soft sales and slowed traffic in North America sent total revenue downward 6% to $5.5 billion; North American retail sales slipped 3%. Same-store sales declined 2%. Sales abroad fell 18%.

Los Angeles -- A PriceGrabber back-to-school survey released on Wednesday found that 48% of consumers believe retailers are offering better back-to-school shopping promotions this year.

According to the survey, 88% of consumers chose 'sales' as the top retailer promotion that will entice them to make a back-to-school purchase this year. Forty-nine percent of shoppers cited coupons; 44% noted that "free items with purchase" would persuade them to buy; and 34% selected sales available online only.