Supply Chain & Merchandising

Target Corp. came roaring back in its second quarter from a year-long sales slump amid evidence that its investments in online and store remodels are paying off. The discounter raised its outlook for the year.   Sales rose 1.6% to $16.43 billion in the quarter ended July 29, beating analysts' estimates of $16.30 billion. Same-store sales rose 1.3%, also more than analysts had expected. Comparable digital sales surged 32%.  

Grocery is one of the fastest-growing segments of retail — just not in Chicago.   Over the past two years, 25 supermarket shut their doors in Chicagoland. Sixteen new ones opened, but they were smaller than the ones that closed, making for what Mid-America Real Estate calls an “alarming” loss of 544,512 sq. ft. of inventory.  

Posting less-than-expected earnings in its second quarter, the nation's largest sporting goods retailer plans to take a more promotional stance.   Dick's Sporting Goods reported consolidated net income of $112.4 million, or $1.03 per diluted share, for the quarter ended July 29, compared to $91.4 million, or $0.82 per diluted share, in the year-ago period. Excluding certain items, earnings came in at 96 cents, lower than the $1.01 that   analysts had expected.  

The spring selling season was a busy one for the nation's largest home improvement retailer as Americans continue to spend money on their homes — both new and existing ones.   A pair of home improvement records were broken in Home Depot's second quarter as the Atlanta-based retail giant reported the highest quarterly revenue in its history. The retailer also set a new high for net earnings.  

TJX Companies reported second-quarter revenue and earnings that beat the Street, fueled by strong traffic across all its brands.      Total sales rose 6% to $8.36 billion, beating analysts' estimates of $8.29 billion, in the quarter ended July 29. Same-store sales rose 3% for the quarter, also better than expected. By brand, same-store rose 7% at Home Goods and TJX Canada; 2% at Marmaxx (TJ Maxx and Marshalls); and 1% at TJX International.   

The delivery wars continue to heat up.  

Shoppers turned out in force in July, driving retail sales to their largest gain since December 2016.   Retail sales in July increased by 0.6% June on a seasonally adjusted basis, triple the revised 0.2% growth seen in June, according to the National Retail Federation. Sales have increased by 3.5% year-over-year. (The NRF numbers exclude automobiles, gasoline stations and restaurants.)  

After a solid first quarter, Home Depot has posted an even stronger set of second quarter figures. Total sales rose by 6.2% with underlying comparables up by 6.3% overall and by 6.6% in North America. Given the long run of big uplifts in same-store numbers, this is a very impressive performance.