Supply Chain & Merchandising

Off-price retailers will remain among the top performers in the U.S. retail industry during the next 12 to 18 months.   That's according to a new report from Moody's Investors Service. The outlook is not as positive for department stores, which will continue to struggle as they seek to level the playing field with both off-price and online vendors.  

The holiday shopping season is upon us. For retailers, these last three months of the year signify a marathon of competitive sales strategies to increase foot traffic and maximize profits.    According to the National Retail Federation, the holiday season can represent as much as 30% of annual sales. To adapt to shifting consumer trends and meet peak season demands, stores plan to increase both hours of operation and staff onsite.  

Costco Wholesale Club is upping its home delivery game for online food orders as the grocery delivery market continues to heat up.   The retailer has introduced a new two-day delivery service, called CostcoGrocer, for customers across the U.S. (with the exception of those in Alaska, Hawaii, and Puerto Rico.). The service, which has a fee of $3, offers delivery of non-perishable foods and sundries, with about 500 items available. The delivery fee is waived for orders over $75.  

As it heads into its most important selling season, Sears Holding Corp. is receiving another cash infusion from its CEO and largest shareholder.   Sears is borrowing $100 million from units of CEO Eddie Lampert's hedge fund ESL Investments for "general corporate purposes," according to a regulatory filing. The new infusion brings the total of Lampert's outstanding loans to Sears to $499.4 million.   

Energy is the fourth largest in-store operating cost for retailers, with the average 50,000-sq.-ft. retail building spending around $90,000 each year on energy costs. Retail building managers are constantly trying to better regulate their buildings’ energy costs, so understanding where those charges come from can be extremely beneficial.   

Costco Wholesale Club reported better-than-expected profit and revenue for its fourth quarter.   Net sales for the 17-week fourth quarter ended Sept. 3 rose 15.8% to $41.36 billion from $35.73 billion in year-ago period, which had 16 weeks. Total same-store sales rose 6.1%, with a 6.5% increase in the U.S. and a 4.9% increase in Canada. International same-store sales rose 5.6%    E-commerce sales in the quarter were up 21%. Membership fees rose 13% to $943 million.   

Amazon’s new program could give carriers like United Parcel Service and FedEx a run for their money.   The online giant is experimenting with a program that rivals services handled by longtime partners UPS and FedEx. Specifically, it is dabbling in a program designed to make more products available for free two-day delivery and relieve overcrowding in its warehouses, according to Bloomberg.