Retail

Store closings are part of the business, but is this business as usual?

2017 is just two months old, but we have already experienced what feels like a year’s worth of major store closing and liquidation announcements from national brands. This spike in store closings seems to have rattled retail industry professionals, and has gotten retail analysts and observers talking about big shifts – and thinking not only about what comes next, but how painful the transition might be in the meantime.

RH Q4 profits top Street forecasts

While RH continued to make investments to transform its business model, these efforts impacted the company’s preliminary fourth quarter earnings. The furniture and housewares company, which officially changed its name from Restoration Hardware to RH last month, posted net income of $8.75 million, or 21 cents per share, for the quarter ended January 28, 2017. This was a drop from $33.3 million in fourth quarter 2015. Earnings, adjusted for non-recurring costs, came to 68 cents per share, beating analyst estimates of 65 cents per share.

Study: Mobile click-to-open rates slipped in 2016

Retailers are increasingly relying on mobility for customer engagement, however their marketing strategies are lagging. The fourth quarter 2016 marked the first time mobile engagement has trended down as the mobile click-to-open (CTO) rate declined by 12.6% quarter-over-quarter, and 14.4% year-over-year, according “Q4 2016 Email Benchmark Report: The Mobile Engagement Shift,” from Yes Lifecycle Marketing.
Supermarket retailer promotes COO

Raley’s has given COO Keith Knopf the additional title of president. Raleys owner & CEO, Michael Teel announced the promotion of Knopf, who joined the company nearly two years ago, around the time Teel took majority ownership of the company. Teel will continue to direct the development of Raley’s overall strategic plan.
Moody’s sees further department store 'rationalization'

Bruised by weak fourth-quarter results, department stores are now planning more cautiously for 2017 as they re-evaluate how to compete in a rapidly changing retail environment,
Penney announces profit—and plans to downsize store fleet

J.C. Penney on Friday announced plans to close stores and reduce its workforce even as it reported its first profit since 2010. In one of its deepest cuts to date, the retailer said it will close 130 to 140 stores, which represent about 13% to 14% of its total, 1,014 store base. The locations to be shuttered are unprofitable, Penney said, and generated less than 5% of total annual sales.
Top 10 Retail Predictions for 2017

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.
L Brands’ same-store sales flat, lowers 2017 outlook

L Brands is preparing for steep losses in the near-future, specifically across its Victoria’s Secret brand. For the quarter ended January 28, 2017, net sales were $4.489 billion, an increase of 2% compared to $4.395 billion for the quarter ended January 30, 2016. The company’s net income was $631.7 million compared to $636 million last year.
Online home decor retailer soars in Q4, beating Wall Street expectations

Wayfair credits innovation, increasing brand awareness and repeat customers for its strong fourth quarter growth. The home decor brand’s total net revenue for the fourth quarter ended December 31, 2016, rose 33.1% from last year to $984.6 million, topping analysts’ expectations for $975.32 million. The company’s gross profit was $238.6 million, or 24.2% of total net revenue.
Report: Sears slashes HQ jobs

On the heels of announcing a comprehensive restructuring plan, Sears eliminated 130 jobs at its corporate office on Thursday, Feb. 23. The layoffs, which are part of a $1 billion cost-cutting plan, were relayed in an email sent to corporate employees Thursday afternoon, according to Business Insider.