News

Dollar General Q1 profit jumps, beats Street
Higher customer spending and lower advertising costs not only boosted Dollar General Corp.’s profits, but contributed to better-than-expected first quarter earnings. For the period ended May 5, the discounter’s net sales increased by 6.5% to $5.61 billion, compared to $5.27 billion in first quarter 2016. Net income fell to $279.5 million, or $1.02 per share from $295.1 million, or $1.03 per share, a year earlier. However, this still beat the average analysts' estimate of $1 per share, according to Thomson Reuters.
Regulatory Wrap-Up: Where state and national policy meets retail
Wages
Federal $15/Hr Minimum Wage . As promised, U.S. Senator Bernie Sanders with support from Democratic Leadership introduced a bill this week to raise the federal hourly minimum wage to $15 by 2024 to index it to inflation starting in 2025. Passage is highly unlikely, although Democratic leadership has vowed to make the Fight for $15 a larger focus of the party platform.

Drug store giant enters Colorado

CVS Pharmacy opened its first store in the Centennial State. CVS Pharmacy’s newest location resides in Parker, Colorado. It is the first of three stores slated to open in the greater Denver market this year.
Express swings to loss in Q1, but cost savings plan stays on track

Despite a rough first fiscal quarter, Express remains committed to its ongoing plan to manage costs, optimize its store fleet and improve profitability. For the quarter ended April 29, the specialty apparel retailer posted a net loss of $4.5 million, or $0.06 per share. This included a net negative $0.03 per share impact related to certain discrete tax items and the exit of Canada.
RadioShack shuts down 1,000 stores

RadioShack Corp. has entered into the newest chapter of its financial saga. The company, which recently filed for bankruptcy protection, closed 1,000 stores over the Memorial Day weekend. This move leaves the chain with a mere 70 company-owned stores and 500 dealer stores in operation across the U.S., according to Fortune.
Fred Segal ups the ante on Hollywood flagship

Fred Segal is designing its new flagship to be more than a just “a store.” Instead, it’s creating “a style and design laboratory.”
Five in-store amenities helping to drive traffic and engagement

Retailers looking to bring customers in the door need to upgrade the shopping experience with added amenities. That's according to JLL, whose new report examines how brick-and-mortar retailers can deliver in-store experiences and brand loyalty through added amenities. The report, JLL’s Retail Amenities Guide, notes that today's shoppers have countless options when it comes to where they can buy, leaving retailers with fewer opportunities to create brand converts.
Online giant granted patent for parachute-dropping drone

Amazon’s newest win aims to further improve how it delivers packages. The online giant won a patent from the U.S. Patent and Trademark Office on May 30, for an “aerial package delivery system.” While Amazon is no stranger to using drones, the company’s newest air-based endeavor raises the bar another notch.
Walmart augments training with virtual reality

While the industry continues to explore how to leverage virtual reality, Walmart is embracing the technology in a big way. The retail giant will be adding VR-based instruction at its 200 Walmart Academy training centers in the United States by the end of the year. The technology will be used to educate approximately 140,000 employees that go through the program each year, according to Walmart.
Lululemon starts year strong, but division restructuring is underway

Product innovation, an enhanced digital experience, and its first-ever global brand campaign boosted Lululemon’s first quarter earnings — however these gains are not swaying the company’s restructuring plans. The athleisure brand is currently restructuring Ivivva, its activewear brand for girls. The division will operate primarily as an e-commerce business, supported by only a select number of stores in key communities across North America.
Hot fitness equipment start-up to expand retail footprint

Peloton, a four-year-old startup that sells exercise bikes tied to a live-streamed workout experience, is revving up for expansion armed with fresh capital. The company announced it has recently closed a $325 million series E financing round, which brings its total valuation to $1.25 billion. The round was led by Wellington Management, Fidelity Investments, Kleiner Perkins, and True Ventures. Other significant investors in this round included Comcast NBCUniversal, GGV Capital, Balyasny, and QuestMark.
Study: E-commerce fraud is declining — but the battle continues

E-commerce fraud as a percent of sales dollars may be on the decline, however losses still account for billions of dollars. This was according to the “Q1 2017 Global Fraud Index,” a report from Pymnts.com and Signifyd. The study measures and benchmarks innovations and trends that are reshaping the payments and commerce ecosystem.