Supply Chain & Merchandising

BJ’s Wholesale Club this week formally announced that it planned to explore strategic alternatives and confirmed what had been speculated about in the market place for at least four years. The possible sale of BJ’s and its 189 clubs isn’t likely to have a meaningful impact on the marketplace and could potentially benefit the likes of Sam’s Club and Costco.

Northbrook, Ill. -- Hilco Real Estate said Thursday it has formed Hilco Real Estate Managed Asset Resolutions to provide turnkey loan servicing to lenders and other real estate investing entities on their most deeply-distressed loans and REO assets.

Jerry T. Hudspeth has joined Hilco as CEO of the new group. Joining Hudspeth on the leadership team are Ronald M. Lubin, Edmund H. Terry and Michael Tsandilas.

GRAND RAPIDS, Mich. — Net sales for Spartan Stores slightly declined nearly 0.6% to $782.3 million during the third quarter.

During the quarter, which ended Jan. 1, Spartan also experienced a rise in operating earnings, which increased from $13.7 million in third quarter 2009 to $16.6 million. Third-quarter earnings from continuing operations improved 42% percent to $7.5 million, or 33 cents per diluted share, from $5.3 million, or 23 cents per diluted share.

Washington, D.C. -- A report released Thursday by the Institute for Supply Management said that the U.S. service sector, which includes retailers, grew in January at the fastest pace in five years. The report, along with other data, suggests a growing economy and stronger hiring.

The private trade group said its index of service sector activity rose to 59.4 last month. That was up sharply from December's reading of 57.1. It was the fourteenth straight month of growth and the highest reading since August 2005.

MINNEAPOLIS — Target said that although its comparable-store sales were below expectations in the South and Northeast, the company believes overall sales will be driven by two of its recent initiatives.

Target chairman, president and CEO, Gregg Steinhafel, said that while the company "expects the economy to remain challenging, Target's PFresh remodel program and REDcard Rewards 5% savings program continue to operate in line with expectations."

DEERFIELD, Ill. — Walgreens on Thursday posted January sales of $5.9 billion, representing an increase of 11.3% from last year. Early morning trading of Walgreen stock was up 51 cents to $42.48.

Only 2.8 percentage points of that increase can be attributed to the acquisition of Duane Reade, the Deerfield, Ill.-based retailer stated. Total front-end sales increased 11.5% in January, and pharmacy sales increased 10.8%, accounting for 66.1% of total sales for the month.

New York City -- Many retailers surprised with solid January revenue reporting on Thursday, despite snowstorms that raged across the country during the month.

The reports, many of which surpassed Wall Street expectations, offer encouragement that strength in consumer spending is continuing after a merry holiday season.
 
Costco Wholesale Corp, Victoria's Secret parent Limited Brands and teen retailer Wet Seal were among those that beat analyst expectations. Target, however, lagged, behind.

Retail sales during January offered a mix bag of results and made it rather tricky to determine how much results were influenced by harsh winter weather, gift card redemption rates, a still shaky economic recovery and individual company strategies.