Sales & Marketing

Memphis, Tenn. – Fred’s Inc. beat Wall Street expectations for profit despite swinging to a net loss of $29,000 in the first quarter of fiscal 2015 from net income of $6.1 million in the same period the prior year. The retailer missed on net income of $509 million, up 2% from $498.3 million.

Higher salary and benefit costs helped move Fred’s into the red. Same-store sales climbed 0.8%.

Jerry A. Shore, CEO, said pharmacy is a critical component of Fred’s strategy for profitability moving forward.

Amazon is upping the ante in the fulfillment wars by expanding its same-day delivery service for Prime members to more markets and making it free.

The company added two new markets, San Diego and Tampa Bay, to its list of same-day delivery areas while also reducing the price to free for orders over $35. The company already offers same-day delivery in several regions, including New York, Philadelphia, San Francisco, Seattle, Atlanta, Boston, Baltimore, Dallas-Ft. Worth, Indianapolis, Los Angeles, Phoenix, and Washington, D.C.

Issaquah, Wash. – Costco Wholesale Corp. reported rising profit in the third quarter of fiscal 2015. But a surging dollar and low gas prices resulted in sluggish sales growth and an unusual same-store sales decline, the company’s first quarterly drop since 2009.

Net income increased 9% to $516 million from $473 million, aided by relatively flat operating expenses.

Total revenue for the quarter, ended May 10, increased 1% to $26.1 million, below Wall Street expectations, from $25.8 million last year.

Costco Wholesale Corp. reported its first quarterly decline in same store sales since 2009, although profit at the club store did rise.

Same store sales declined 1% in the third quarter ended May 10, including fuel and foreign currency impacts. This was below the 0.7% growth expected by analysts. The company said sales were hurt by low gas prices and a stronger dollar that reduced the value of sales from overseas markets.

Toronto – Shoppers Drug Mart Corp. is providing members of its Shoppers Optimum loyalty program with My Optimum. My Rewards, a new personalized digital experience. The new digital platform includes an enhanced Shoppers Drug Mart app and a digital Optimum card.

Optimum members will now receive personalized offers and points via their mobile device, email or the Web, and can load them to their digital or plastic Optimum card. They can also scan their digital Optimum card directly from their smartphone to earn and redeem points.

Grapevine, Texas -- GameStop Corp.’s net income rose to $73.8 million in the first quarter, ended May 2, from $68 million, a year earlier.

Global sales increased to $2.06 billion from $2.00 billion, helped by the releases of games such as "Evolve" and "Mortal Kombat X."
Same-store sales rose 8.6%.

Brian Cornell, CEO and chairman of Target Corp., has focused on digital innovation since he took the top spot at the chain last August. He recently participated in a Q&A at the high-profile tech event, the Code Conference, in Ranchos Palos, California.  

Here are some highlights from his conversation, as posted on Target’s very own Bullseye View blog.

Des Moines, Iowa - Two leases have been signed for ground-floor retail space at The Foundry in Ames, Iowa, including Starbucks. Committed tenants for the luxury student housing complex near Iowa State University also include Barefoot Campus Outfitter.