Mass Merchant

Despite strong online volume, low store traffic translated into weak fourth quarter sales for Kohl’s.   For the quarter ended January 28, 2017, the department store chain’s profits fell 15% to $252 million, or $1.44 per share, from $296 million for the same period last year. Meanwhile, revenue dropped 2.8% to $6.21 billion, from $6.39 billion in 2015. Yet, the company still exceeded analysts’ expectations of revenue hitting $6.2 billion, or $1.32 per share.  

CBRE has brought in a former Sears executive to help retailers monetize under-performing retail space through partnerships with outside brands.   Kevin Marschall, formerly director of strategic partnerships and licensed business at Sears, has joined CBRE as a store-within-a-store specialist in the company’s retail partnerships unit.  

1. The import tax wild card. The Trump administration has floated a new tax policy that would apply a 20% tax on imports from Mexico, as well as other countries with which the United States has a trade deficit. If implemented, this tax could have a disproportionally large negative impact on merchants that export much of the goods they sell — i.e., almost all of our readers.  

Walmart’s house brands are getting a new audience — millennials.   Jet.com, which caters to the cost-conscious Gen Y segment, has started offering private label brands — Great Value, Equate and Sam’s Choice — from its parent company, Walmart, according to Bloomberg.   

RCG Ventures has purchased Oak Brook Square in Flint, Michigan, for $14.2 million. Anchored by TJ Maxx and Hobby Lobby, the 152,073-sq.-ft. center is located across the street from the Genesee Valley Mall in Flint’s largest trade zone.

TJX Cos. is preparing to debut a new retail banner.   Speaking on the chain’s quarterly call with analysts, TJX CEO Ernie Herrman said the company will open four home goods stores in the United States under a new nameplate this year, CNBC reported.   The new concept will allow TJX to enter new markets and sell products that it hasn't currently penetrated with its HomeGoods footprint, Herrman said, according to the report.     

It’s a record that most retailers are envious of, particularly in today’s competitive and disrupted marketplace.    TJX Cos. on Wednesday posted its 21st consecutive year of same-store sales increases, as well as better-than-expected income and revenue results for its fourth quarter. The off-price retailer also raised its quarterly dividend and announced a share repurchase program.  

Retailers shouldn’t expect consumer tax refunds to equate into a sales boom anytime soon.   A record low number of Americans will spend their tax returns this year, while the second-highest number on record will put the money into savings, according to the annual tax return survey released by the National Retail Federation and Prosper Insights & Analytics. The study, which is based on responses from 7,609 consumers, was conducted Feb. 1 - Feb. 8.