News

Specialty outdoor retailer’s sales — and donations — surge
The nation’s largest consumer co-op reported a solid year amid ongoing sustainability achievements. REI reported annual revenues of $2.56 billion in 2016, up 5.5% from $2.42 billion in 2015. Same-store sales, which include direct to consumer sales, rose nearly 4% and digital sales grew by nearly 18%.
Three ways Amazon Go’s automation will impact the retail industry
Could “paper or plastic?” become a question of the past? In early December, Amazon opened its checkout-free store concept, Amazon Go, in Seattle. Initially open only to employees, the store is expected to open to the public early this year. With the e-commerce giant’s “just walk out” technology, customers are able to swipe their app when they enter, pick up items they want off the shelves, and exit without cash registers or lines.

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.
Penney losing key executive to Hershey

The chief marketing officer of J.C. Penney is leaving the company after two years on the job. Mary Beth West is leaving the department store retailer on March 31 to become senior VP and chief growth officer of the Hershey Co. She will join Hershey on May 1. West joined Penney in April 2015 after serving on the company’s board of directors for 10 years.
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.
Former Gymboree CEO to head up Banana Republic

It’s a homecoming of sorts for Mark Breitbard. Gap Inc. on Tuesday named Breitbard as president and CEO of its struggling Banana Republic division. Breitbard served as CEO at The Gymboree Corporation from 2013 until he stepped down in early 2017. From 2010 to 2013, he held leadership positions across Gap North America, where he was instrumental in delivering the product-led resurgence of Gap’s North America business.
Bloomberg: Walgreens could sell additional assets to Fred’s

There is another development in Walgreens’ quest to acquire Rite Aid.
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.
Beauty retailer expands augmented reality experience

A new app enhancement is helping Sephora shoppers complete their look. By adding new augmented reality-based features to the Sephora Virtual Artist app, the chain enables shoppers users to virtually try on thousands of shades of single and palette eyeshadows directly through their mobile device. This service augments the app’s existing functionality that allows users to try on an assortment of lip colors and false eye lash styles.
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%.