Supply Chain & Merchandising

Albertsons’ Jewel-Osco division has a new executive at the helm.     The company has named Doug Cygan division president, effective immediately, overseeing 186 stores in Ill., Ind. and Iowa. Cygan was most recently Jewel-Osco’s VP marketing and merchandising. He joined the company in April 1980 as a part-time clerk, staying with the chain as he completed his education and worked his way up through the ranks.  He became VP marketing and merchandising in 2011.   

While some industry observers fear that robots will replace retail workers, Boxed is embracing the technology.   The online retailer, which sells consumer packaged goods in bulk, announced on Thursday, April 27, that it will completely automate its fulfillment center in Union, New Jersey, with robotics — a move that will contribute to driving reliable profits, according to Business Insider.  

Although Amazon's sales advanced by a respectable 23% over the quarter (do link to our story yesterday), the pace of growth at the online behemoth remains much slower than it was over most of the prior fiscal year. Some of this is the result of a less favorable exchange rate diluting contributions from the international business. However, some is also down to a more challenging demand environment in North America which has limited spending uplifts on products within Amazon's core territory.  

In a major restructuring of its eastern U.S. distribution network, Ace Hardware Corp. intends to open a new 1.1. million-sq.-ft. Retail Support Center in Pennsylvania while closing a handful of other facilities.   The moves will play out over the next 24 months.  

More retailers are putting mobile devices into their associates’ hands.   Momentum is so strong that within three years, 89% of retailers will give their associates access to mobile solutions, according to “The Mobile World of Retail,” a report from Boston Retail Partners. BRP surveyed the top North American retailers to explore the current state of how mobile technology is shaping retail capabilities, priorities and processes.   

Authentic Brands Group has taken a 51% stake in Frye, one of the nation’s oldest footwear brands, with an eye to expanding its footprint.   ABG will co-own the brand in partnership with Global Brands Group Holding Limited, from whom it acquired the stake. This is the first time ABG and Global Brands, who have had a long history of collaboration, co-own a brand.   

Barnes & Noble has ended its quest for a new chief executive with an in-house promotion.   The struggling bookseller named Demos Parneros as CEO, effective immediately. Parneros, who has served as COO of Barnes & Noble since November 2016, is a longtime Staples veteran. Prior to joining Barnes & Noble, he was president of North American stores & online for the office supply giant.  

Starbucks Corp. met profit expectations for its second quarter even as its sales disappointed.     The retailer’s net earnings increased 13.5%, to $652.8 million, or 45 cents a share, in line with expectations. Revenue totaled $5.28 billion, less than expected.   Same-store sales rose 3%, also below forecasts, as average tickets rose 4%. Customer transactions were down 2%, which the company attributed to a change in its rewards program.