Data & Analytics

As consumers become increasingly digitally influenced, retailers are struggling to find the right mix of technology to drive engagement.  

Ace Hardware reported a slight increase in revenue during the first quarter, as well as more substantial progress in net income.   Revenue came in at $1.2 billion, up 0.1% from the first quarter of 2016. Net income of $28.3 million was up 8.4% over the year.   Same-store sales were down 0.2% due to decreased customer traffic, reported by the approximately 3,000 Ace retailers who share daily retail sales data.  

Although Walmart is an old-school retailer, it is not afraid to learn new tricks and to shift its thinking. This youthful and innovative approach has helped it deliver another solid set of results in a highly competitive market.  

Ikea is looking to expand in presence in North Carolina.   The retailer said it is submitting plans to the Town of Cary, N.C., for a potential Raleigh-area store, which would be the second Ikea location in the state. The proposed 15-acre site would be located adjacent to the existing Cary Towne Center, approximately 12 miles west of downtown Raleigh and two miles from downtown Cary.  

The Buckle is losing its finance chief.   The apparel retailer on Thursday said that Karen B. Rhoads, senior VP of finance and CFO, will retire later this summer. She will continue to serve as a member of the board. Rhodes joined the Buckle in 1980, and has served as CFO since 1991.     The retailer has hired an executive search firm to assist with the search for Rhoads’ replacement. Rhoads will remain in her role to support the search and to assist with the transition.  

E-commerce or brick-and-mortar retail environments continue to merge, and retailers are in the hot seat to optimize the customer experience.   As a result, the need to adopt innovative technologies to engage shoppers has never been stronger. This was according to the “2017 Customer Experience/Unified Commerce Benchmark Survey” from Boston Retail Partners.   

Automation may be mission-critical to operational longevity in the retail industry, but it could be creating a significant pool of “stranded workers.”   Six million to 7.5 million retail jobs likely will be automated out of existence in the coming years, leaving a large portion of the retail workforce at risk of becoming “stranded workers.” Retail cashiers are at highest risk for automation technologies, and women hold 73% of these positions.  

Gap Inc.’s reported a 12% jump in first quarter profit amid another strong performance from its Old Navy division.    Net income rose to $143 million, or 36 cents per share, in the quarter ended April 29, from $127 million, or 32 cents per share, a year earlier. Its results easily beat the Street, which had predicted earnings of 29 cents per share.   

Expansion-minded Ross Stores turned in a solid performance in its first quarter amid what its CEO called “uncertainty and volatility” in the retail environment.    The off-price retailer, which is opening some 80 to 90 stores annually, reported earnings per share for the quarter ended April 29, 2017 of $.82, up from $.73 in the year-ago period. Net earnings grew to $321 million, compared to $291 million in the prior year.   

At headline level, Target's results are a lot better than feared. The pace at which total and comparable sales are declining has eased over the prior quarter, and the company helped itself to a 7.7% increase in net earnings. Against a tumultuous retail backdrop, this is a not so terrible performance.