Supply Chain & Merchandising

The countdown is on.    With 12 shopping days left before Christmas, holiday shoppers mean business. They have their shopping lists in hand, devices are charged, and they want their desired merchandise in their hands — fast. And with Adobe reporting that 5% of customers drive 35% of revenue, retailers would be foolish not to deliver.   

Retailers will engage new channels, “geek up” their stores, and use technology to refine inventory management and anticipate customer desires in 2017.   That’s according to Software AG, which released a list of six disruptive digital trends retailers must address in 2017. Here’s a recap:   

Retailers and restaurants in the United States won’t get any relief in 2017 in the battle to win customers.    That’s according to Fitch Ratings' Outlook report, which says that retailers will continue to face a competitive environment in 2017 as they navigate changing customer preferences.  

The food safety crisis that took the wind out of the sails of formerly high-flying Chipotle Mexican Grill has finally taken a toll on the chain’s executive suite.   The chain announced that Monty Moran has stepped down as co-CEO and from his board seat, effective immediately. Chipotle founder Steve Ells, currently co-CEO, will be the sole chief executive. He will also remain chairman.   

The nation’s largest maternity clothing retailer failed to meet sales and earnings expectations in the third quarter amid changes designed to focus on its core operations.     Destination Maternity reported a net loss of $1.5 million in its fiscal third quarter.   On a per-share basis, the company said it had a loss of 11 cents. Losses, adjusted for non-recurring costs, were 9 cents per share.   

Fred’s acknowledged it had a tough fiscal third quarter, but the company is making many changes and looking forward to a brighter future.      The first action Fred’s will take will be closing 40 underperforming stores in the first half of 2017, which  provides an immediate benefit to earnings of more $4 million.  

Restoration Hardware reported better-than-expected earnings and sales for the third quarter, but the upscale home furnishings retailer cut its full-year outlook amid slow sales of its holiday collection.    The company also said that its name will change in January to RH, which is the same as its stock ticker.   Restoration Hardware reported net income of $2.5 million. Earnings, adjusted for non-recurring costs, were 19 cents per share.  

Hudson’s Bay Co. is bullish on robotics.