Business Analytics

By Kristin Graham Koehler, [email protected]; and Brian P. Morrissey, [email protected]

Weaker than expected December sales at Target will cause fourth quarter profits to come in at the low end of an earlier forecast, the company said.

Sales at Target for the five week period ended December 31, increased 0.8% to $10.2 billion while same store sales were essentially flat, below the company’s guidance which called for an increase in the low single digits. The performance was driven by a low single digit decrease in comparable store transactions, offset by an increase in average transaction size.

Brisbane, Calif. -- Bebe Stores Inc. reported Thursday that sales for the second quarter plunged 11.7% to $124.6 million, from $141.1 million last year.

Same-store sales plummeted 10.5%, and the women’s apparel retailer now says it expects its second quarter net loss will be larger than previously estimated.
 
Foot traffic fell 15% in the second quarter, which caused inventory per sq. ft. to jump 27.5%.

Up until recently, when an Old Chicago restaurant or a Rock Bottom brewery scored a high-traffic, high-performance location, the reason for the success couldn’t be quantified. In order to grow strategically, parent company CraftWorks Restaurants & Breweries knew it had to get to the bottom of the site-success formula.

Camp Hill, Pa. -- Rite Aid Corp. reported Thursday a profit of $60.5 million for the quarter ended Dec. 1, compared with a year-earlier loss of $54.5 million and marking the first time since quarter-ended May 2007 that the drugstore retailer has turned a profit.
 
Rite Aid also raised its forecast for the year, abandoning earlier forecasts of a loss for the year and instead suggesting that the company may turn an annual profit.
 

WALTHAM, Mass. — Profitect, a provider of retail software, has appointed Mike Mitchell as its new director of global professional services.

Mitchell will lead the company’s project management and business consulting efforts. Prior to joining Profitect, Mitchell served as VP of customer service for Agilence, Inc., overseeing all product implementation, support and professional auditing services.

Toronto -- As consumers continue to seek more convenient methods of shopping, through mobile and online, the potential for further sales erosion continues to threaten retailers, according to a new study by branding and design firm Shikatani Lacroix.

The report, “RE:STORE – Redefining Retail,” finds that 59% of U.S. shoppers “showroom” – or browse for products in store but then buy them online.

HOFFMAN ESTATES, Ill. — New York Mets baseball executive Paul DePodesta is the newest member of the Sears Holdings board.

Although his qualifications are somewhat unconventional, DePodesta was elected to the board because his experience as VP of player development and amateur scouting for the Mets is believe to help Sears Holdings in the area of personnel development.