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.
Supermarket giant names new retail lead
Kroger Co. has made changes in its executive team, including naming a new retail VP. Calvin Kaufman was named senior VP of retail divisions. He will replace Sukanya Madlinger, who is retiring in June. Madlinger has been with Kroger for 31 years.

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.
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.”
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.
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.
Urban Outfitters Q1 profit falls 60%

Urban Outfitters reported disappointing results for its first quarter, weighed down by heavy promotional activity at its namesake and Anthropologie banners. The company’s net income fell 60% to $11.94 million, or $0.10 per share, down from $29.56 million, or $0.25 per share, in the year-ago period. Analysts had expected the company to earn $0.16 per share,
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.
Beloved movie gets sequel treatment — with help from this retailer

The countdown is on to the highly-anticipated U.S. debut of a sequel to the popular holiday-themed movie “Love Actually.”
Chicago’s largest grocer to buy Strack & Van Til stores

Jewel Food Stores (Jewel-Osco), a wholly-owned subsidiary of Albertsons Companies, is expanding its footprint in Indiana. Jewel-Osco said it has entered into an asset purchase agreement with Central Grocers to acquire 19 Strack & Van Til stores and other certain assets. Strack & Van Til is owned by Central Grocers, which filed for bankruptcy protection at the beginning of May.