News Briefs

Home improvement retailers are gaining favor among consumers.

Sixty-four percent of home improvement shoppers say they would “definitely” shop at their local store again, an increase of nine percentage points from 2024, according to the J.D. Power 2025 U.S. Home Improvement Retailer Satisfaction Study. The report pointed to the proactivity of employees for the increase in satisfaction, as they are taking more initiative to keep the stores clean, and greeting and assisting customers. Customers are also browsing online more before visiting a brick-and-mortar location, improving their experience.

“The collaborative nature of customers and employees essentially working together toward the same goal has improved the shopping experience,” said Michael Taylor, senior managing director of the retail intelligence practice at J.D. Power. “Customers are coming into stores with greater knowledge of what they want, if store employees can make helpful suggestions, it increases the likelihood that customers will return to that store.”

[READ MORE: EXCLUSIVE Q&A: Lowe’s provides AI aid to shoppers and associates]

J.D. Power’s report found that Lowe’s ranked highest in customer satisfaction with a score of 680, and Ace Hardware ranked second at 672. The home improvement study average was 671.

Menards and The Home Depot came in just behind the average at 669 and 665 respectively. In last year’s J.D. Power survey, Menards ranked highest in customer satisfaction with a score of 678, followed by Ace Hardware (676) and The Home Depot (665).

Methodology

J.D. Power’s 2025 home improvement study is based on responses from 2,143 customers who purchased home improvement-related products from a home improvement retailer within the previous 12 months. The study was fielded from July 2024 through March 2025.

Ikea U.S. has launched a new rewards offering for members of its free loyalty program, which launched in 2011 and has over 21 million members nationwide.

The new rewards offering allows Ikea Family members to earn points throughout the entire customer journey, from planning to shopping and purchasing. The points can be redeemed for a variety of benefits, including discounts on purchases, delivery savings and free meals at the Ikea Restaurant. 

Members can earn rewards through a variety of ways, from one point for every $1 spent on online and in-store purchase to 50 points by creating an Ikea family profile, registering and attending an Ikea event, booking and attending a planning appointment, or creating a gift registry.

"Our Ikea Family members represent some of our most engaged customers nationwide and we wanted to provide enhanced value to them in every interaction they make with our brand,” said Nicole King, customer engagement & loyalty manager at Ikea U.S. “This is an exciting next step in our journey to create benefits for our most loyal customers, on top of all the perks they already know and love. From special discounts to surprise offers and personalized rewards, this new offering is our way of saying thank you for being part of Ikea Family.”

[READ MORE: Ikea expanding in Texas with three smaller-format locations]

To celebrate the new benefit, Ikea will host a limited-time “Spend and Earn” promotion from May 7-26. Consumers will earn $10 for every $100 they spend and will receive a voucher for their final earnings, which can be redeemed from June 3 to Aug. 31, 2025.

A fast-growing discount grocer has acquired three former Big Lots locations to continue its expansion.

Aldi has purchased three storefronts formerly occupied by the retailer, according to USA Today, citing legal documents filed on May 9. The future Aldi stores are located in Denham Springs, La. (a suburb of Baton Rouge), Taylor, Mich. (a suburb of Detroit) and Nacogdoches, Texas (Eastern Texas).

The property acquisitions come as Aldi continues to expand its footprint across the United States. The chain recently opened its first two stores in the Las Vegas area with two more in the works, along with future stores planned in Southern California and Arizona.

Aldi plans to open more than 220 new stores this year, with the ultimate goal of opening 800 new locations by the end of 2028.

Last month, it was announced that Big Lots would reopen 132 stores across 14 states in May. The openings come under the direction of new owners Variety Wholesales, building on the positive customer response to the initial reopenings of Big Lots stores in April, the company said.

[READ MORE: Big Lots to reopen 132 stores in May — here are the locations]

With global headquarters in Essen, Germany, Aldi operates more than 7,200 store locations around the world, including more than 2,200 stores in 39 U.S. states with over 45,000 associates.

A specialty apparel, accessories and footwear retailer will implement cloud-based RFID technology across its retail operations.

Starting in the second quarter of 2025, Tilly's will deploy the Nedap iD Cloud RFID solution in all its stores nationwide. The retailer aims to enhance inventory visibility and accuracy, optimize product availability, and streamline operational efficiencies.

By leveraging Nedap iD Cloud, Tilly's also intends to streamline item tracking from the distribution center to store shelves, ensuring seamless restocking and supporting its successful in-store pickup and same-day delivery programs. 

Tilly’s will integrate inventory data across its physical stores, e-commerce platform, and mobile app, receiving exact, real-time tracking of each item, which will help reduce stockouts.

"Partnering with Nedap and implementing the iD Cloud platform is a pivotal step in our 2025 strategy to increase market share,” said Erik Quade, CIO of Tilly's. "By enhancing inventory accuracy and leveraging real-time data insights, iD Cloud empowers us to optimize operations, streamline the customer journey, and deliver a seamless experience. This partnership is more than a technology investment—it's about building the foundation to drive sustainable growth for the longer term."

In addition to improving inventory accuracy and operational efficiency, in the future Tilly’s plans to leverage RFID for year-end inventory counts and data-driven loss prevention. 

"Tilly's has always been at the forefront of innovation in digital retail, and their dedication to enhancing the shopping experience is evident,” said Ailen Bilharz, VP of iD Cloud North America at Nedap: “With the insights from iD Cloud, they are well-positioned to drive meaningful impact across their stores and teams for years to come."

[READ MORE: 2025: The year RFID breaks through]

Headquartered in Irvine, Calif., Tilly’s operates more than 240 stores across 33 states.

American Eagle Outfitters warned of poor first-quarter results as merchandise-related problems led to higher promotions and mark-downs.

The apparel retailer also pulled its fiscal year 2025 guidance, citing “macro uncertainty and as management reviews forward plans in the context of first quarter results.”

“We are clearly disappointed with our execution in the first quarter,” said Jay Schottenstein, executive chairman and CEO. ”Merchandising strategies did not drive the results we anticipated, leading to higher promotions and excess inventory. As a result, we have taken an inventory write down on spring and summer goods.”

The company estimates  first-quarter sales of about $1.1 billion, which represents a 5% drop year over year. Comparable sales are expected to be down approximately 3%, with American Eagle down 2% and Aerie down 4%. 

American Eagle expects a net operating loss of around $85 million and an adjusted operating loss of about $68 million, which reflects higher-than-planned promotional activity and an inventory charge of roughly $75 million related to the merchandise write-down of spring and summer merchandise. The loss also included $17 million in asset impairment and restructuring charges to close two fulfillment centers as part of an optimization effort. The retailer had previously forecast  $20 million to $25 million in operating income for the quarter.

[READ MORE: American Eagle Outfitters, Synchrony renew partnership]

Schottenstein struck a positive note about the current quarter.

“We have entered the second quarter in a better position, with inventory more aligned to sales trends,” he said. “Additionally, we are actively evaluating our forward plans. Our teams continue to work with urgency to strengthen product performance, while improving our buying principles.”

American Eagle Outfitters will report its final first-quarter results on May 29.

Kohl's is looking to refinance with a $360 million offering of new senior secured notes.

The struggling department retailer, which is currently looking for a new chief executive after its CEO was fired "for cause" earlier this month, said the notes are expected to be secured by, among other collateral, 11 distribution centers and e-commerce fulfillment facilities, which will be held in a newly-formed holding company.  

Kohl’s said it intends to use the net proceeds from the offering in a series of transactions resulting in the repayment of borrowings under its revolving credit facility. Kohl’s then expects to borrow under its revolving credit facility to repay all of its 4.25% notes due 2025 at maturity.

Fitch Ratings assigned a “BB-plus” rating on the new notes. 

"Kohl’s rating and outlook reflects its ongoing operational challenges,” Fitch said in a commentary on Tuesday. “The company is adjusting its operating strategy, but its ability to stabilize market share, particularly in apparel, is uncertain. The rating recognizes Kohl’s tools in executing its turnaround, including a reasonable asset base and ability to invest $400 million in capital expenditures.”

In a press release on the new offering, Kohl's noted that the offering "is subject to market and other conditions, and there is no assurance that the cffering will be completed or, if completed, the terms on which it will be completed."