Supply Chain & Merchandising

The CEO of 99 Cents Only Stores Inc. says he's confident that the company's core business strategy remains strong despite a sharp drop in net income in the first quarter.

City of Commerce, Calif. — A sharp increase in selling, general and administrative (SG&A) expenses drove an 88% drop in net income at 99 Cents Only Stores Inc. to $1.17 billion in the first quarter of fiscal 2016 from $9.57 billion the same quarter the prior fiscal year.

The profit plummet came as total sales rose 6% to $506.17 million from $477.9 million. Same-store sales declined 1.7%, primarily due to lower customer traffic.

<The Neiman Marcus Group says currency exchange rates put pressure on traffic in the first quarter as the company reported a smaller than expected boost in same store sales. 

The retailer said same store sales increased 2.2% for the third quarter ended May 2 as the strong dollar had some impact on the retailer’s business.

Walmart Stores, Inc., president and CEO Doug McMillon invoked a baking metaphor at a retail conference in Northwest Arkansas this week to describe the company’s merchandising philosophy and approach to offering customers every day low prices.

LAKELAND, Fla. — Publix Super Markets may be considering opening a smaller-store format, according to a report in The Gainesville Sun.

Montreal, Canada — Multidev Technologies Inc., a developer of ERP and omnichannel solutions for retailers, is adding web marketplace integration to its ChainDrive enterprise retail management platform. Users will be able to market, promote and sell their products through e-commerce channels including Amazon, eBay, Rakuten, and Newegg.
 

Toys”R”Us says it is making steady progress with its “TRU Transformation” strategy despite a decline in same store sales in the first quarter.

Same store sales for the first quarter ended May 2 fell 2.3% primarily because of what the company said was "a planned decrease in promotional activity.'' International same store sales rose 1.2%, lifted by increases in the learning and core toy categories. Total sales declined by $154 million to $2.32 billion.

Shoe Carnival is planning to open smaller stores to leverage untapped markets in smaller communities, as well as the company's omnichannel capabilities.