Business Analytics

The statement  “class action for wage and hour violations” has become an all too familiar phrase in the retail industry. The issue is also a dynamic one with constant changes from year to year, and even month to month. The bad news is that the number of wage and hour class actions filed on a daily basis continues to rise. According to the Economic Policy Institute, the number of FLSA (Fair Labor Standards Act) cases filed in the federal court is more than five times the number 20 years ago.    

Ann Arbor, Mich. – Gas prices may be falling, but the price of recovering from a data breach is steadily climbing. According to a new study from authentication technology provider Duo Security, the average cost of data breach recovery reached $12.7 million in 2014, compared to $11.6 million in 2013 and $9 million in 2012.  

 

The market trend was detailed in a survey conducted by Johnson Controls Global WorkPlace Solutions in partnership with PeopleWise. According to the study, facilities management is the most outsourced service, with 82% of the respondents currently outsourcing some part of facilities management and real estate services.

San Jose, Calif. – “Super Saturday,” the Saturday before Christmas (Dec. 20), was not quite super for retailers expecting a sales bonanza. According to data from in-store analytics provider RetailNext, compared to the equivalent date in 2013, net sales were down 9%, store traffic was down 10.6%, total transactions fell 8% and average transaction value was 0.9% lower.   However, there were a couple of bright spots. Conversion rate rose 0.4 percentage points and sales per shopper increased 1.8%.

Deerfield, Ill. – Cost synergies from its ongoing merger with U.K. drugstore chain Alliance Boots GmBH helped boost net earnings at Walgreen Co. 16% to $809 million in the first quarter of fiscal 2015 from $695 million the same quarter a year earlier. The combined synergies for Walgreens and Alliance Boots in the first quarter were approximately $140 million and remain on track to reach at least $650 million in fiscal 2015.

Sales rose 7% to $19.6 billion from $18.33 billion. Same-store sales increased 5.7%.

New York - Retail sales worldwide, including both in-store and Internet purchases, will total nearly $22.5 trillion this year. According to new figures from EMarketer, the global retail market will see steady growth during the next few years, and in 2018, worldwide retail sales will increase 5.5% to reach $28.3 trillion.  

Indianapolis – The Finish Line Inc. reported an 11% improvement in net income during the third quarter of fiscal 2014, rising to $2.58 million from $2.32 million. Lower impairment and store closing charges, a slowed pace of growth in cost of sales, and an income tax benefit all helped spur the growth in profit.   Consolidated net sales were $395.8 million, an increase of 9% from $364.45 million. Same-store sales rose 4.5%.

Fort Worth, Texas – Pier 1 Imports Inc. met Wall Street expectations with a 33% year-over-year decline in profits during the third quarter of fiscal 2015. Net income fell to $17.9 million from $26.8 million, with an increase in selling, general and administrative (SG&A) expenses driving the reduction.  

Finish Line CEO Glenn Lyon cited the company’s struggle to keep up with customer demand for new products even as the firm reported an increase in profitability for the third quarter.

The company reported an 11% improvement in net income during the third quarter, rising to $2.58 million from $2.32 million. Lower impairment and store closing charges, a slowed pace of growth in cost of sales, and an income tax benefit all helped spur the growth in profit.

Despite reporting a 33% year-over-year decline in profits during the third quarter, Pier 1 Imports CEO Alex Smith said he is confident in the chain’s value proposition going forward in 2015.