Supply Chain & Merchandising

The U.S. shopper’s love affair with the off-price channel shows no signs of winding down any time soon.       Ross Stores easily beat analysts’ expectations as its earnings increased 13% in the quarter ended Oct. 29, amid better-than-expected revenue growth and stronger margins.   

Abercrombie & Fitch’s efforts to turnaround its struggling namesake brand aren’t finding much traction with shoppers.   The teen apparel brand on Friday said that its profit declined 81% in the third quarter and warned that it expects a challenging holiday season for its namesake banner.     Abercrombie posted net income of $7.88 million, or 12 cents per share, for the quarter ended Oct. 29, down from $41.9 million, or 60 cents per share, in the year-ago period.  

Foot Locker reported third-quarter profit that surpassed analysts’ expectations.   The retailer’s earnings soared 96.3% in the quarter ended Oct. 29 to $157 million, or $1.17 a share, up from $80 million, or 57 cents, a year ago.   Total sales increased 5.1% to $1.886 billion this year. Same-store sales were up 4.7%.  

Move over Amazon Marketplace — Crate and Barrel is moving onto your turf.   Crate and Barrel has expanded its online assortment by launching its own marketplace, which it describes as a highly curated selection of products based on Crate and Barrel's merchandising style. Shoppers enter the marketplace directly from the retailer’s website.  

Ace Hardware Corporation reported a sales miss in the third quarter -- even if the co-op wasn't expecting to match its impressive results in the prior-year quarter.   “The third quarter of last year was the best in company history, with revenues up 13.2% and net income up 45.3%,” said John Venhuizen, president and CEO. “As a result, our expectation for the third quarter of this year was modest sales growth and lower net income. We whiffed on sales, but exceeded our net income budget for our domestic business."

Best Buy Co.’s sales and profits in the third quarter topped forecasts, but the retailer warned that the recall of a Samsung smartphone is likely to impact its holiday sales.   Best Buy’s profit jumped 55% to $194 million, up from $125 million in the same period a year ago. Adjusted for one-time expenses, it earned 62 cents a share, which was higher than the 47 cents analysts were expecting.  

A familiar U.S. retailer will soon make its exit from the U.K. retail scene.    Staples, which operates some 105 stores in the United Kingdom, has agreed to sell its U.K. retail business and operations to Hilco Capital Limited. The use of the Staples brand in the U.K. will be phased out over the coming months.   In May, Staples announced plans to explore strategic alternatives for its European operations as part of its new strategy.  

As retailers expand their operations beyond their domestic borders, many are finding new opportunities to connect with new shoppers.    This message was delivered in “PayPal Cross-Border Consumer Research 2016,” a report from PayPal and Ipsos, a study that investigated the online domestic and cross-border shopping habits of more than 28,000 consumers in 32 countries.