Supply Chain & Merchandising

Costco Wholesale Club has tapped its longtime director as its new chairman.   The company announced the election of Hamilton “Tony” James to the position of chairman. He replaces Jeff Brotman, who co-founded Costco with James Sinegal in 1982. Brotman passed away unexpectedly on Aug. 2.  

Liquidation efforts took a toll on J.C. Penney in its second quarter, which reported earnings and same-store sales below estimates.    Penney's net loss widened to $62 million in the quarter ended July 29, or 20 cents per share, from $56 million, or 18 cents per share, in the year-ago period.   

The chief executive of the nation's largest specialty pet retailer of services and solutions has left the building.   PetSmart announced that Michael J. Massey has stepped down from his position as CEO, president and board member. Raymond Svider, managing partner at BC Partners, will serve as executive chairman and oversee the company’s operations with the senior leadership team while the board searches for a new chief executive.   

Amazon is looking at food-prep technology first developed for the U.S. military that would allow the online giant to deliver meals that do not require any refrigeration.   The technology, known as microwave assisted thermal sterilization, or MATS, was developed by researchers at Washington State University, CNBC reported, and is being brought to market by a Denver-based startup called 915 Labs.  

Although J.C. Penney's numbers are not a disaster and represent a significant sequential improvement over the prior quarter, they are nevertheless underwhelming. While we maintain the company is moving in the right direction, the lack of progress on profit and same-store sales both highlight that the turnaround program is a long-term endeavor that will take some time to deliver.  

Macy's appears to be making some headway in its turnaround efforts, reporting second quarter sales and profit that topped estimates. But the retailer still reaffirmed its downbeat guidance for the year.    Net income increased to $116.0 million, or 38 cents per share, up from $11.0 million, or 3 cents per share, in the year-ago period. Adjusted earnings per share was 48 cents.  

Southeastern Grocers has made a temporary appointment permanent.   The supermarket operator, parent company of Winn-Dixie, Bi-Lo, Fresco y Más, and Harveys, has appointed Anthony Hucker president and CEO, effective immediately. Hucker has served as interim president and CEO since July 1, 2017.  

Increased traffic gave a boost to Kohl's, which reported sales and earnings that topped analysts’ estimates in the second quarter.   The company's net income rose to $208 million, or $1.24 per share, in the quarter ended July 29, from $140 million, or 77 cents per share, in the year-ago period.