Data & Analytics

Commentary: Downtick in February largely a temporary blip
After solid start to the year, retail is now back in softer growth territory. While the 2.1% rate of overall expansion is not disastrous, it is much lower than the past few quarters and is largely the result of higher gas prices which buoyed sales at gas stations by 15.8%. The pure retail number is more concerning, with the 0.8% increase being the slowest growth recorded since February 2013.
Christopher & Banks Q4 disappoints; to roll out merchandising changes
Changes are coming to Christopher & Banks Corp. On the heels of a 7.8% decrease in its fourth quarter sales, the women’s apparel retailer is launching a new merchandising strategy that include a bigger focus on fashion over core items. Christopher & Banks also will review styles on a weekly basis to identify emerging trends and mark down slower-moving products, said interim president and CEO Joel Waller on the company’s quarterly call with analysts.

Consumers cautious in February

The delay of tax refunds helped keep consumer spending in check on February. Retail sales in February inched up 0.2% seasonally adjusted over January, according to the National Retail Federation. (The NRF numbers exclude automobiles, gasoline stations and restaurants.) The industry’s performance in February was mixed. Electronics and appliance stores took the biggest hit, with sales falling 2.8% over the previous month.
Walmart issues $157 million in bonuses to employees

The bonuses, along with annual pay raises, were included in employees’ March 9 paycheck. Over the past two years, Walmart has invested billions of dollars in training, education and higher wages. These programs offer associates skills, knowledge and tools to help them grow with the company and provide great customer service during a time of rapid change in shopping habits.
Couche-Tard’s Circle K remodels, earnings increase

Canada-based convenience store operator Alimentation Couche-Tard posted net earnings of $287 million in the third quarter of its fiscal year, up 4.7% from the previous-year period. Same-store merchandise sales fell by a point in Europe, but were up 1.9% in the U.S. Same-store gasoline sales volumes rose 2.8% stateside. Couche-Tard’s global rebranding of its Circle K stores proceeded at a quick pace during the quarter, with more than 1,000 U.S. stores completed.
Bon-Ton misses Q4 estimates

Weak traffic and unseasonably warm weather impacted Bon-Ton’s earnings for the fourth quarter. For the period ending January 28, 2017, the department store chain reported net income of $44.7 million, or $2.09 per diluted share. These earnings fell short of analyst estimates by 37 cents. The chain reported revenue of $900 million for the period, and comparable store sales decreased 4.7%.
Report: Retailers are running in place when it comes to IoT

Retailers remain stuck when it comes to Internet of Things (IoT) initiatives, according to “The Internet of Things in Retail: Getting Beyond the Hype.” The second annual report from RSR shows that retailers are increasingly aware of the impact of IoT on customer engagement and competitive advantage. Yet, they are still hesitant to invest in cutting edge technologies due to operational challenges and a lack of supporting infrastructure.
Neiman Marcus exploring options — including sale

Neiman Marcus posted another quarter of declines for its second quarter. For the period ended January 28, 2017, the chain reported total revenues of $1.40 billion, a decrease of 6.1% compared to $1.49 billion for the second quarter of fiscal year 2016. Comparable revenues decreased 6.8%.
Footwear retailer’s sales rise, but fall short on expectations

DSW credits inventory management and more focused campaigns for its profit growth during the fourth quarter. For the period ended January 28, 2017, the chain’s sales increased 0.4% to $674.6 million, including $27.9 million in revenues from Ebuys. This profit of 20 cents per share was four cents better than analysts were expecting for the quarter, however sales missed their estimates of $695.5 million. Adjusted net income was $16.5 million, an increase of 43% over last year.
Sporting goods retailer officially files for Chapter 11

Gander Mountain has filed for bankruptcy, but it is proactively seeking a buyer. The sporting goods retailer, which announced Friday, March 10 that it has filed for Chapter 11 protection, said it will pursue a “going concerns sale,” enabling it to function without the threat of liquidation for the foreseeable future.
Teen apparel retailer beats Q4 forecasts

An increase in revenue and comparable store sales helped Tilly’s beat analyst expectations for the fourth quarter. For the period ended January 28, 2017, Tilly’s revenue was $160.2 million, an increase from $159.1 million last year. Net sales also topped Wall Street forecasts of $159.9 million. The chain also beat analyst predictions of earnings hitting 21 cents per share. Tilly’s posted a profit of 22 cents per share.
Discounter bolsters tech team through ‘acquihiring’

Data and analytics is more than a business foundation — it is a key differentiator in an increasingly competitive marketplace, according to Target’s senior VP Paritosh Desai. As a result, Target is making a big push to add top tech talent, from software engineers to data scientists — a move that pushed the chain to “acquihire” tech companies. In this practice, larger companies acquire smaller ones to obtain their technology and, essentially, hire their leadership and teams.