News

Footwear retailer beats Street in Q2; identifies cost savings
DSW Inc. on Tuesday posted better-than-expected results for its second quarter and reaffirmed its full-year outlook. The company also said it expects to see $25 million of annualized savings in 2017 as a result of a restructuring program it launched earlier this year, with about $7 million of the total to be realized this year. The retailer said the savings would result “from organization realignment and improvements in procurement and other business processes.”
Dismal Q2 puts Abercrombie turnaround in question; to close more stores
Abercrombie & Fitch Co.’s turnaround was called in to question on Tuesday as the chain posted a wider loss in its second quarter, hurt by a decline in tourist traffic at its flagship locations. The teen apparel retailer also revealed that it expects to close up to 60 U.S. stores as their leases expire this fiscal year. On its quarterly conference call, company executives said the chain has flexibility to close even more stores, with about half of its U.S. leases expiring by the end of 2017, the Wall Street Journal reported.

C-store chain in money-saving lighting retrofit

Quik Mart Stores has made the move to LED lighting. The Tucson, Arizona-based convenience store/gas station chain replaced the existing fluorescent and HID interior and exterior lighting with solid state LED lighting at 25 locations in the Tucson market. The retrofit was completed by SCS Energy Solutions Corp.’s SCS Lighting Division, which also developed a solution for beverage and freezer cooler lighting, as well as enhancing existing merchandise displays.
Unlikely allies: Obama and Walmart

In a scenario that few could have predicted, Walmart has emerged as one of President Obama’s most reliable corporate allies, a partner that has backed the White House on more than a dozen initiatives, including Obamacare and climate change, bloomberg.com reported.
Canadian c-store giant buying up more U.S. stores

On the heels of the biggest deal in its history, Canada’s Alimentation Couche-Tard Inc. has entered into yet another deal to expand its U.S. footprint. The retailer has signed an agreement to buy 53 stores in Louisiana, primarily in the Baton Rouge market, from American General Investments and North American Financial Group for an undisclosed price.
Toys ‘R’ Us promotes chief merchant to president

Toys "R" Us announced the appointment of Melanie Teed-Murch as president, Toys "R" Us, Canada, effective Sept. 1. Teed-Murch joined the retailer in 1996 as a store manager for Toys "R" Us in Kitchener, Ontario. She went on to hold a variety of senior leadership, merchandising and operational roles with increasing responsibility, including her most recent position as Canada's chief merchant.
Tanger hits the NASCAR track with car sponsorship

Tanger Outlets is putting its pedal to the metal marketing-wise, signing on as lead sponsor of Martin Truex Jr.’s No. 78 NASCAR racer and his Furniture Row Racing Team. The striking red-and-black Tanger Toyota will debut at the Federated Auto Parts 400 on September 10 at Richmond International Raceway in Virginia before motoring on through the 10-race Chase playoff series.
Amazon to test 30-hour workweek

Amazon.com is going to give select employees the chance to work a shorter week for reduced pay — but with full benefits.
Big Lots profit tops Street; raises forecast

Big Lots Inc. isn’t letting soft sales in the second quarter damper its outlook. Instead, the retailer raised its profit forecast for the year. The discounter on Friday reported fiscal second-quarter net income of $22.7 million, which surpassed analysts’ expectations, from $17.64 million in the year-ago period. Revenue totaled $1.2 billion in the period, which missed Street forecasts. Same-store sales inched up 0.3%.
Arts and crafts giant cuts sales outlook

Michaels Cos. said increased spending cut into its bottom line in the second quarter. The chain lowered its same-stores outlook for the rest of the year, citing a “choppy” retail environment. For the quarter ended July 30, the company posted a profit of $35.6 million, compared with $35.7 million in the year-ago period, amid spending to integrate recently-acquired arts and craft wholesaler Lamrite West and the timing of distribution expenses.