News

Teen apparel retailer files for bankruptcy protection
A month after it announced it would close 400 stores, the other shoe has dropped at Rue 21. The Warrendale, Pennsylvania-based retailer announced it has filed for Chapter 11 bankruptcy protection and entered into agreements with some of its lenders to reduce the company's debt and provide additional capital in support of its restructuring. The company, which expects to continue normal business operations throughout the process, listed its assets and liabilities in the range of $1 billion and $10 billion, according to its court filing.
More big numbers from Home Depot
The world’s largest home improvement retailer raised its earnings expectations as it announced first quarter sales and earnings gains that beat the Street. Net earnings for the first quarter of fiscal 2017 were $2.0 billion, better than expected, compared with net earnings of $1.8 billion, in the same quarter last year. For the first quarter of fiscal 2017, diluted earnings per share increased 16.0% from the same period in the prior year.

Off-price giant Q1 earnings beat Street, but sales miss

The TJX Companies had a rare sales miss in its first quarter, and gave second quarter guidance below expectations. Net sales for the first quarter, ended April 29, increased 3% to $7.8 billion. Analysts had expected $7.88 billion. Consolidated same-store sales increased 1% over last year’s 7% increase, just missing analyst’ estimates.
E-retailer offers fulfillment services

Newegg is adding supply chain support to its portfolio. The electronics-focused e-retailer launched Newegg Logistics, the company’s branded logistics solution designed to help e-commerce sellers streamline order fulfillment, shipment and returns. Based on the many years it spent refining its own e-commerce logistics operations, Newegg’s service will help other businesses break into online sales.
Staples has mixed Q1

Staples reported mixed results for its first quarter as earnings came in line with expectations but its revenue fell short. The office supplies retailer reported adjusted earnings of 17 cents a share, in line with Wall Street forecasts. Total sales fell 5% to $4.1 billion, short of analysts’ expectations. Total company same-store sales fell 3%, beating estimates.
Online home furnishings retailer delves deeper into AI

Wayfair is streamlining the way its shoppers navigate its vast online catalog as they search for specific looks. The retailer launched “Search with Photo,” a new feature that leverages artificial intelligence to make it easier for shoppers to find their desired furnishings. Shoppers can now simply snap a photo to find and purchase specific products that match the looks they see and love.
Pilot Flying J adds new executive position

Pilot Flying J has added a new title to its management team. The company announced that Whitney Haslam-Johnson, previously VP of brand and customer experience, has been named to the new position of chief experience officer at Pilot Flying J. Johnson is also a member of the company’s board.
Sporting goods retailer’s sales disappoint in Q1; to streamline ops

Dick’s Sporting Goods came up short on same-store sales growth in its first quarter amid what the company called “a challenging retail environment.”
Study: Email subscribers on the rise, post-engagement lags

New subscribers are bolstering marketers’ subscription bases by leaps and bounds, yet click rates continue to decline. New subscribers make up an average of 6% of marketers' subscriber bases. This is an 8% increase year-over-year (YoY), and 30% jump over the last three years, according to “Q1 2017 Email Marketing Compass: The New Age of Email Marketing,” a report from Yes Lifecycle Marketing.
Online retailer brings baby products cross-border

As demand for American baby products increases among Chinese shoppers, Babyhaven not only saw an opportunity, it ran with it. Babyhaven is an online retailer of baby and children’s merchandise in the United States. Like other brands however, the company is feeling pressure from competitors like Amazon, Walmart, and other traditional category retailers, such as Babies “R” Us, that can not only compete on price, but can offer speedier delivery windows.
FTC not ready to move on Walgreens-Rite Aid deal

According to reports, regulators are still seeking information on the proposed merger between Walgreens Boots Alliance and Rite Aid, and the subsequent divestiture of as many as 1,200 stores to Fred's. Analysts are suggesting the implication does not bode well for the merger, as the continued Civil Information Demands from the Federal Trade Commission may be indicative that the agency is still not appeased over the merger's potential effect on the retail pharmacy market.
Starbucks’ payment system shut down takes a toll

Free coffee was on the menu at some Starbucks locations on Tuesday, due to a point-of-sale software glitch. What the coffee giant described as a typical software update ended up putting point-of-sale systems out of commission — and for longer than expected, in some locations. The outage began in the evening on Monday, May 16, and continued into Tuesday, May 17, according to CNBC.