Supply Chain & Merchandising

It’s not over yet for the embattled Sears Holdings, which is streamlining its operations on the heels of what appears to be a brutal fourth quarter.    The long-struggling retailer on Friday announced a comprehensive restructuring that will cut at least $1 billion in operating costs a year. The plan involves reducing corporate overhead (although Sears did not specify, job cuts are likely), closer integration of the Sears and Kmart operations and improving its merchandising, supply chain and inventory management.

L.L. Bean is in a cost-cutting mode.    The company, which is evaluating all aspects of its business, is offering early retirement incentives (it hopes to trim about 500 positions), freezing pensions and taking a “hard look” at its free shipping and generous re-turns policy, the Associated Press reported.   

CVS Health on Thursday reported record fiscal fourth-quarter and full-year 2016 results   Net revenues for the three months ended Dec. 31 increased 11.7% to $46 billion, up from $41.1 billion in the year ago period.  

Amid efforts to crack down on the sale of counterfeit goods, Alibaba is in a center of another related fight.   The Chinese e-commerce giant said Thursday, Feb. 9, that several intellectual property (IP) agencies were filing false complaints against vendors that continue to sell fake goods on its e-commerce platforms, said Fortune.   

Web searches are often inconsistent due to irrelevant keywords and content, making it more important than ever for brands to use more retail-specific factors to stay relevant.    Details that can improve brands’ visibility in Google searches are shared in the “E-commerce Ranking Factors 2017 — Ten Things eCommerce Sites Need to Know to Rank on Google,” a report from Searchmetrics that analyzed the top 20 desktop search results on Google for over 6,000 industry-specific keywords.   

Target soon won’t be the only discounter to feature an in-store Chobani Cafe.    The popular Greek yogurt brand will open a 2,000-sq-.ft. café at Walmart’s new supercenter in the Houston suburb of Tomball, reported the Houston Business Journal. The store is scheduled to open on Feb. 15.  

A less than stellar holiday season for U.S. department stores has led Moody's Investors Service to revise its forecasts downward for the sector's operating income.   In its new report, the rating agency said it now expects 2016 aggregate operating income to decline 18%, rather than 11%, and for sales to also decline in the year ahead.  

Whole Foods Market on Wednesday reported a disappointing first quarter and also lowered full-year sales and earnings guidance.    Net income was $95 million for the quarter ended Jan. 15. The company earned an adjusted 39 cents a share during the quarter, in line with estimates.   Total sales in the quarter increased 1.9% to $4.9 billion, less than the Street expected.