Supply Chain & Merchandising

PLANO, Texas — JCPenney, which reported sales and income decreases for the third quarter, has brought on two new executives to join fellow Apple alumnus, CEO, Ron Johnson. 

Mooresville, N.C. -- Lowe's Cos. reported Monday that net income for the quarter ended Oct. 28 dropped 44% as store-closing charges undercut a slight uptick in quarterly sales.

The home-improvement retailer reported net earnings of $225 million, compared with $404 million in the year-ago period. Charges related to store closures amounted to a pre-tax earnings reduction of $336 million.

Sales increased 2.3% to $11.9 billion, up from $11.6 billion a year earlier. Same-store sales edged up 0.7%, reversing declines in two prior quarters.

It is a good thing Target has been experimenting with smaller stores in the United States. The experience, limited as it is, will come in handy when the company begins opening stores in former Zellers locations in early 2013.

HONOLULU — Walmart is firming its commitment to Asia Pacific economies, the company announced at the annual Asia Pacific Economic Cooperation (APEC) CEO Summit in Honolulu, Hawaii, Nov. 11 to 14. 

Plano, Texas -- J.C. Penney Co. reported Monday a loss of $143 million for the quarter ended Oct. 29, compared with a profit of $44 million in the year-ago period. Sagging comps and shrinking margins led to the performance decline.

For the quarter, sales dropped 4.8% to $3.99 billion, reflecting the company’s exit from its catalog and catalog outlet businesses, which it sold off during the quarter. 

As previously reported, same-store sales dipped 1.6%.

Philadelphia -- Urban Outfitters Inc.’s third-quarter profit fell 31% amid a decline in same-store sales and as merchandise markdowns continued to weigh on margins.

For the quarter ended Oct. 31, Urban Outfitters posted earnings of $50.7 million, down from $73.1 million in the year-ago period.

Gross margin narrowed to 35.4% from 41.1%, partly due to increased merchandise markdowns at Anthropologie and Urban Outfitters. Total inventories grew by $78 million.

Unemployment is a double-edged sword when it comes to the retail industry. The high single-digit rate in the United States means retailers can be more selective in their choice of hourly workers but the downside of fewer people working is less money sloshing around the economy for shoppers to spend. The situation in Canada is the opposite of the United States, and there are some major implications for Target.

BOCA RATON, Fla. — Office Depot announced that Steve Schmidt has been named president international. Schmidt, who previously served as EVP corporate strategy and new business development, will continue to report to Neil Austrian, chairman and CEO of Office Depot.

Schmidt will oversee Office Depot’s multichannel (contract, direct and retail) international business that sells to customers directly or through affiliates in 56 countries outside of the U.S. and Canada.