Mass Merchant

There are few demographic segments that have generated as much discussion in the retail community as Millennials. A great deal of literal and virtual ink has been spilled discussing the importance of catering to this large and influential group of young adults. From their spending habits to their social and behavioral characteristics, addressing the priorities and preferences of Millennials is seen as critically important for any retailer that wants to remain competitive in today’s marketplace.  

In its new study of retail bankruptcies, Fitch Ratings identified seven retailers as being “at risk” for filing bankruptcy in the next year to 24 months.  

Costco Wholesale Corp. reported a higher-than-expected profit for the fourth quarter.     In related news, shoppers opened 730,000 new credit card accounts since the Visa cards went live in June, Costco executives said on a conference call with analysts. (In June, Costco ended its longstanding relationship with American Express and switched to Visa.)    Net income rose to $779 million, or $1.77 per share, in the fourth quarter ended Aug. 28, from $767 million, or $1.73 per share, a year earlier.

Creating an innovative customer experience is top of mind for Target. Now it needs the right solutions.   As a result, Target launched a new website that invites start-up companies to pitch ideas for new technology platforms that will help the big-box retailer enhance the customer experience in its stores and through its digital channels, according to an article in the Minneapolis Star Tribune.

In response to public concern that wages at the low end of the pay scale were slow to rise, particularly for store managers and assistant store managers, the United States Department of Labor (DOL) updated the Fair Labor Standards Act (FLSA) regulations defining which white collar workers must be paid overtime pay.     The DOL estimates that more than 4 million employees nationwide who are not currently paid overtime will now have to be paid overtime, and the majority of those will be employees of retail stores and restaurants. 

There is a leadership change underway at Stein Mart.   Dawn Robertson resigned from her position of CEO and company direc-tor. D. Hunt Hawkins, the chain’s president and COO, has been named interim CEO.  

JLL has been selected to manage retail leasing for Woodmore Towne Center in Glenarden, Maryland, which is being expanded into a 245-acre mixed-use development.   Under construction at the location east of Washington D.C. off the Capital Beltway are 1,100 residential units, two hotels, and a million sq. ft. of office space. Expansion of the retail space, which has drawn Nordstrom Rack to the center, will bring it to a total of 800,000 sq. ft.  

Who says you can’t go home again?   Certainly not Gap Inc., which appointed Jamie Gersch as the senior VP, chief marketing officer of its Old Navy banner, reported adage.com. She replaces Ivan Wicksteed, who left the company in March. She will come aboard at the end of October.