Distribution

Don’t be fooled by Costco’s tepid sales growth and first quarter profit decline. The company is accelerating expansion and pursuing some intriguing digital partnerships while members continue to renew at record rates.

AutoZone says inventory efficiency improvements allowed the retailer to increase sales and profit in the first quarter.

For the period ended Nov. 21, net sales were $2.4 billion, an increase of 5.6% from the prior year quarter. Same-store sales increased 3.5% for the quarter. Net income for the quarter increased 8.3% over the same period last year to $258.1 million, while diluted earnings per share increased 14% to $8.29 per share from $7.27 per share in the year-ago quarter.

Designer Shoe Warehouse Inc. (DSW) is more closely connecting its digital and store channels, and using a little outside help to make it happen.

DSW has implemented eBay Enterprise in-store pickup and ship-to store in 467 stores. These new omnichannel fulfillment technologies augment the specialty footwear chain’s existing ship-from-store and dropship capabilities, also powered by eBay Enterprise.

The Children’s Place blamed unseasonably warm weather for its weak third quarter results and plans to close 200 stores by 2017 as part of its turnaround strategy.

For the third quarter ended Oct. 31, the retailer said same store sales fell 3%. The Children’s Place reported a profit of $38.5 million, or $1.88 a share, compared with a profit of $36.9 million, or $1.70 a share, in the prior year quarter. EPS was $1.93, up from $1.82. Sales rose 6.4% to $455.9 million.

The combination of acquisitions, new unit expansion and same-store sales growth enabled Mattress Firm to achieve record third quarter results and the company’s biggest deal ever is expected to close in 2016.

It’s like it is 1997 all over again with the Federal Trade Commission stepping in to block a merger between Staples and Office Depot on grounds that the deal would diminish competition.

Walmart is the only chain retailer to fully meet a goal it made related to an initiative of opening stores in “food deserts,” the Associated Press reported. [Associated Press]

The big news for retailers this holiday season has been the strong surge in online shopping. It’s not that high online volumes weren’t expected; estimates placed online purchases to be as high as 20% of total holiday sales this year.

It seems we’ve hit a tipping point, however, where online promotions are of equal or greater importance to Black Friday retail success than in-store promotions, and where Cyber Monday has morphed into Cyber Week.