News

Amazon had a very good holiday, but wasn’t quite as stellar as the Street predicted.   The retail giant’s net sales increased 22% to $43.74 billion in the fourth quarter, lower than analysts had expected. The company’s outlook for the fourth quarter also fell short of expectations.   Net income, however, surpassed analysts’ estimates, and jumped to $749 million, compared to $482 million in fourth quarter 2015.  

More shoppers are buying groceries online, but a majority are ready to switch grocers in favor of a better online experience.   This is according to the “2017 Grocery eCommerce Forecast,” a report from Unata, which surveyed over 500 U.S. shoppers about online grocery shopping habits, intent and barriers. Details revealed that 31% of U.S. shoppers are likely to order groceries online in 2017, up from 19% of shoppers that bought groceries online in 2016.   

Nordstrom Rack is going to set up shop in a rapidly expanding area of Los Angles.    The retailer will open an approximately 27,000-sq.-st. store in fall 2017 at FIGat7th, an open-air center in the heart of downtown Los Angeles (DTLA) owned and operated by Brookfield Property Partners L.P.   The new Nordstrom Rack will join Target, H&M, Victoria's Secret, MAC and other retailers and restaurants at the center, which located at 7th & Figueroa Street.  

PetSmart has a new strategy to keep its 55,000 employees informed and abreast of key insights.   When the 1,500-store retailer wanted to improving data accessibility across its enterprise, it turned to mobility. The chain began its mobility effort by developing one mobile app in 2010. By leveraging the MicroStrategy 10 mobility platform from long-time partner MicroStrategy, the company now has nearly 20 internal apps that deliver key insights to senior leaders and associates across the enterprise, the company said.   

On the heels of a less than stellar holiday, Target Corp. is scaling back on some parts of its innovation agenda in order to concentrate on its core business.    The Minneapolis Star Tribune reported that Target has scrapped its highly secretive e-commerce startup called Goldfish, and also has shelved a prototype for a store of the future, complete with robots, that was due to be built soon.

Barneys New York has promoted its COO to the top job.   Daniella Vitale has been named chief executive officer of the New York-based upscale specialty retailer.    Vitale replaces Mark Lee, who is retiring and will assume the role executive chairman. Lee joined Barneys as chief executive in 2010. He is credited with turning the business around. Lee previously served as CEO of Gucci, and also held positions at Yves Saint Laurent, Armani and Jill Sander. He started his career at Saks Fifth Avenue. 

It doesn’t pay to clash with Ralph Lauren, one of the most iconic names in fashion retailing.      Ralph Lauren Corp. and president and CEO Stefan Larsson have “mutually agreed to part ways,” with Larsson staying on until May 1, 2017, the company said in a statement. Larsson’s departure follows disagreements with Lauren, 77, the company’s founder, executive chairman and chief creative officer. Jane Nielsen, CFO, will head up the business while it hunts for a new CEO.  

For the first time since 2014, Abercrombie & Fitch Co. has a chief executive.   The struggling retailer said it has promoted Fran Horowitz to the role of CEO. She will also join the company’s board of directors. A veteran fashion retailer, Horowitz joined Abercrombie in fall 2014 as brand president of Hollister Co. In 2015, she was tapped for the new position of president and chief merchandising officer of the entire company.