Supply Chain & Merchandising

Don’t believe the rumors. Kmart is not going out of business.   That’s according to Eddie Lampert, the beleaguered  CEO of Kmart parent company Sears Holdings Corp.  

Three groups have joined together to empower commercial building landlords and tenants to improve energy efficiency in leased space and reap up to $5 billion in annual energy savings.   The Retail Industry Leaders Association (RILA), the International Council of Shopping Centers (ICSC), and the Institute for Market Transformation (IMT) are launching a coordinated national effort, called the Landlord-Tenant Energy Partnership, to reduce energy use across billions of square feet of leased space.    

For the second year in a row, Staples will close its stores on Thanksgiving.   Shoppers, however, will be able shop the office supplies giant’s e-commerce site.   

With the holidays right around the corner, retailers are already setting up for the biggest shopping season of the year. This year, retail revenue for the holidays is expected to surpass $1 trillion, compared to last year’s total of $626.1 billion.   One of the many holiday preparations brands are making to deal with this influx is bulking up in-store resources. At least 700,000 short-term retail jobs are assumed to be added across the U.S. this holiday season, helping brands fill gaps in-stores and on the back-end.  

Costco Wholesale Corp. reported a higher-than-expected profit for the fourth quarter.     In related news, shoppers opened 730,000 new credit card accounts since the Visa cards went live in June, Costco executives said on a conference call with analysts. (In June, Costco ended its longstanding relationship with American Express and switched to Visa.)    Net income rose to $779 million, or $1.77 per share, in the fourth quarter ended Aug. 28, from $767 million, or $1.73 per share, a year earlier.

Eyeing a strong holiday season, Pier 1 is working on a new fulfillment strategy to meet omnichannel shopper demand.   As the home decor retailer continues to focus on how to enhance its digi-tal channel, Pier 1 is turning its attention to drop-ship capabilities. By working with third-party suppliers, the chain will be able to augment its assortment, and “test new categories with much less risk using vendor-owned inventory,” Alexander Smith said during the company’s earnings call on Wednesday.   

The U.S. Environmental Protection Agency recognized The Home Depot for its eco-friendly freight transportation efforts.    The chain received a 2016 SmartWay Excellence Award for the fourth consecutive year for its contributions to cleaner, healthier air and reducing carbon emissions by hauling all freight with environmentally and energy efficient carriers.    

E-commerce is on the rise in the grocery segement.    Online grocery sales are gaining momentum, reaching $48 billion in 12 months as of June 2016, according the “Future of E-commerce,” a report from Kantar Worldpanel. While the overall consumer packaged goods market remained flat, increasing just 1.6% over the 12-month period, online grocery sales are outpacing the market.