Supply Chain & Merchandising

Macy’s Inc. announced that it will close 100 full-line namesake stores as part of a wider effort to improve its business and succeed in an omnichannel environment. The move comes after six straight quarters of declining same-store sales.      The department store giant said it plans to concentrate its resources on the best-performing locations, and to invest in those stores by adding new vendor shops, increasing the size and quality of staff and new technology.  

Wal-Mart Stores’ Mexican unit is shedding its apparel store chain.   Wal-Mart de Mexico SAB (Walmex) is selling its Suburbia chain to El Puerto de Liverpool SAB, one of the largest department store operators in Mexico, in a deal valued at 19 billion pesos ($1.03 billion), Bloomberg reported.  

Nordstrom Inc. on Thursday reported second quarter earnings that exceeded Wall Street estimates, and also lifted its full-year earnings outlook.   The upscale department store profit’s fell to $117 million, or $0.67 per share, from $211 million or $0.1.09 per share in the year-ago period. Analysts had expected earnings of $0.56 per share.   

Kohl’s Corp. beat analysts’ expectations for the second quarter even as its sales continued to show weakness.     The retailer posted a profit of $140 million, or 77 cents a share for the quarter ended July 30, compared with $130 million, or 66 cents a share, in the year-ago period. Excluding certain items, earnings rose to $1.22 a share from $1.07 a year ago.   Revenue fell 2% to a better-than-expected $4.18 billion. Same-store sales fell 1.8%.  

“I'm sad to see this news. Macy's is an iconic retailer with a long history of success, and one of many victims of Amazon success. In the same week that Jeff Bezos pockets roughly $800 million personal dollars, Macy's is forced to suffer a tremendous physical retail loss.  

Ralph Lauren Corp. swung to a loss in its first quarter as costs related to efforts to turn around its business cut into first quarter earnings. But it still managed to beat Wall Street expectations.   The company lost $22 million, or 27 cents per share, versus net income of $64 million, or 73 cents per share, in the year-ago period.     Revenue in the quarter was down 4% to a better-than-expected $1.55 billion.     

Target Corp. has tapped another veteran of Amazon to join its supply chain team.   The retailer announced that it has appointed Preston Mosier as senior VP, fulfillment operations, effective Aug. 14.