Sales & Marketing

Online sales and returns are taking toll on retailers’ bottom lines.

Operating earnings as a percent of sales has declined by up to 25% due to a shift from in-store to online sales, combined with e-commerce and omnichannel investments and the high cost of fulfilling e-commerce transactions, according to a study by strategic retail advisory firm HRC Advisory.

Retailers who fail to maintain a clean, well-maintained store are putting themselves at a strong competitive disadvantage.

That’s the takeaway from a new survey conducted by Harris Poll for the Cintas Corp., which found that 93% of U.S. adults would not return to a retailer if they experienced some type of issue related to the facility. The top five factors that would turn patrons away from a store were:

• General bad odor – 78%
• Dirty restrooms (e.g., floors, stalls, mirrors, odor) – 66%

Aeropostale will reportedly file for bankruptcy protection this week and subsequently close more than 100 of its 800 stores, according to The Wall Street Journal.

The struggling teen apparel retailer plans to reorganize under a Chapter 11 filing this week ahead of May rent payments, the report said. On Aeropostale has been struggling for some time. The chain has recorded three consecutive years of losses as its struggles to deal with a teen audience whose spending tastes now favor fast-fashion giants such as H&M as well as online retailers.

Sears Holdings has been having issues attracting shoppers to stores, as evidenced by the recent decision to close 78 brick-and-mortar locations.

However, the department store retailer is not giving up on efforts to drive store traffic. Sears is combining the eternal appeal of Mom and its strong history of omnichannel customer service to give shoppers a good reason to visit their local store.

Photo: Erik Westedt, left, and Scott Kaplan have joined JLL’s growing Southern California team.

There is a lot of tenant activity going on at the Miracle Miles Shops in Las Vegas with several notable retailers expanding, renovating and growing new concepts.

South Dakota has filed a lawsuit against four online retailers, joining a growing number of other states in a battle that could well end up in the Supeme Court, according to a report by corporatecounsel.com

GNC Holdings Inc. announced Monday it is undertaking a strategic review whose options could include a sale of the company.

The health-and-wellness retailer said it is also considering accelerated refranchising strategies, partnerships and other collaborations, and capital structure optimization. The announcement comes on the heels of disappointing first quarter results.