News

Top 10 Retail Predictions for 2017
1. The import tax wild card. The Trump administration has floated a new tax policy that would apply a 20% tax on imports from Mexico, as well as other countries with which the United States has a trade deficit. If implemented, this tax could have a disproportionally large negative impact on merchants that export much of the goods they sell — i.e., almost all of our readers.
NYC gets its third Saks Fifth Avenue store — with a twist
Saks Fifth Avenue is giving New York City a new “boy’s club.” The chain’s first-ever Saks Downtown Men’s store is a stand-alone 16,000-sq.-ft. location dedicated to men’s categories. Featuring a strong focus on modern fashion, it carries more than 100 brands, including a dominant assortment of designer footwear and accessories. Located at 250 Vesey Street in lower Manhattan, the store also features an “experiential shopping environment.”

Lifestyle specialty retailer readies for EMV

Pacific Sunwear is one step closer to more secure in-store payments. PacSun is working with BTM Global to implement and integrate EMV (Europay, Mastercard, Visa) software that will support the global stand-ard for credit card and debit card payments. The implementation will roll out across more than 494 stores in all 50 states and Puerto Rico, a move that will strengthen payment security and protect its customers’ data.
Online home decor retailer soars in Q4, beating Wall Street expectations

Wayfair credits innovation, increasing brand awareness and repeat customers for its strong fourth quarter growth. The home decor brand’s total net revenue for the fourth quarter ended December 31, 2016, rose 33.1% from last year to $984.6 million, topping analysts’ expectations for $975.32 million. The company’s gross profit was $238.6 million, or 24.2% of total net revenue.
Canadian retailer posts lower Q4 sales

Weaker results in its European, Saks Off 5th and Gilt operations contributed to lower fourth quarter sales for Hudson’s Bay Company For the fourth quarter ended January 28, 2017, the company’s consolidated comparable sales decreased 1.2%. Specifically, DSG (Hudson’s Bay, Lord & Taylor and Home Outfitters) same-store sales increased 0.6%, and Saks Fifth Avenue comparable sales increased 0.1%.
Off-price unit helps Nordstrom beats Q4 profit estimates

Nordstrom Inc. reported better-than-expected profit for its fourth quarter amid a strong performance by Nordstrom Rack and cost cuts. The department store retailer reported that it earned $201 million, or $1.15 per share, for the quarter ended Jan. 28, compared with $180 million in the year-ago quarter. Excluding certain items, the adjusted earnings came to $1.37 per share. Analysts had estimated $1.15 a share on average.
L Brands’ same-store sales flat, lowers 2017 outlook

L Brands is preparing for steep losses in the near-future, specifically across its Victoria’s Secret brand. For the quarter ended January 28, 2017, net sales were $4.489 billion, an increase of 2% compared to $4.395 billion for the quarter ended January 30, 2016. The company’s net income was $631.7 million compared to $636 million last year.
Kohl’s Q4 profits fall, but beat forecasts

Despite strong online volume, low store traffic translated into weak fourth quarter sales for Kohl’s. For the quarter ended January 28, 2017, the department store chain’s profits fell 15% to $252 million, or $1.44 per share, from $296 million for the same period last year. Meanwhile, revenue dropped 2.8% to $6.21 billion, from $6.39 billion in 2015. Yet, the company still exceeded analysts’ expectations of revenue hitting $6.2 billion, or $1.32 per share.
Report: Majority of consumers use mobile to shop

The increasing use of smartphones has drastically impacted the consumer's path to purchase — and the momentum continues. Most online U.S. consumers (60%) now use mobile technology for shopping, and two thirds (67%) searched online for additional product information, according to “The Consumer Technology Association's (CTA) Path to Purchase Using Mobile Devices Market Research report.”
Report: Lowe’s terminates more than 500 employees

Lowe’s is the latest retailer making job cuts. The home improvement retailer has laid off more than 500 full-time corporate employees company-wide — its latest effort to streamline the company and boost profitability, the Charlotte Observer reported.