News

Wearables
In 2015, consumers will inevitably begin to integrate wearable connective technology more into their daily lives. For example, Luxottica Group S.pA. is launching a multiyear R&D collaboration with Intel Corp. to create eyewear infused with smart technology. The ultimate goal is to deliver smart, fashion-forward products that are meaningful and desirable to consumers. The first product from Intel and Luxottica is expected to launch in 2015.

Washington, D.C. -- Total holiday sales, which include November and December sales, increased 4% to $616.1 billion, the highest since 2011, according to the National Retail Federation. The total was in line with NRF’s projected forecast of 4.1%. In addition, non-store holiday sales grew 6.8% to $101.9 billion.

Two technology trends stood out above all others at this week’s NRF Annual Convention. First, retailers are becoming aware that omnichannel inventory transparency is the back-end platform supporting the front-end seamless customer experience they have been building the past few years. Being able to see all inventory across all channels in real time is the key to enabling omnichannel processes such as shipping and fulfilling from store, centrally managing orders from multiple sales channels, providing “endless aisle” access to full inventory.

Grapevine, Texas - GameStop Corp. reported declining total and same-store sales for the nine-week holiday 2014 period, despite solid growth in new software sales. Total global sales for the holiday period were $2.94 billion, a 6.7% decline compared to the 2013 holiday sales period.

Burlington, Mass. – Demandware Inc. has agreed to expand into in-store retail sales by acquiring Tomax, an enterprise cloud software company that provides an integrated solution for retail POS and store operations. Total purchase price will be about $75 million, including $60 million in cash and $15 million in contingent retention-based payments.

Phoenix – PetSmart Inc. considered but ultimately rejected attempting to buy an unidentified, privately held pet retail chain before agreeing to an $8.7 billion sale in December 2014. In an SEC filing, PetSmart disclosed it decided against the purchase after determining there could be competitive and antitrust issues.

PetSmart also said 27 potential buyers showed interest in purchasing the company between August and October 2014, before PetSmart formally launched a bidding process.

Camp Hill, Pa. - Rite Aid Corp. has increased its borrowing capacity to $3 billion as part of a refinancing of an 8% senior secured notes that are now due in January 2020. Borrowing capacity will increase to $3.7 billion when the notes are paid.

Rite Aid expects, at current rates, to save approximately $20 million in annual interest expense, based on a $3 billion facility, and approximately $50 million in annual interest expense, based on a $3.7 billion facility and the redemption of the notes.

San Jose, Calif. – PayPal will release a new PayPal Here credit card reader that will include payment support for Microsoft Surface and other Windows devices. Later this year, PayPal will release an EMV-compliant PayPal Here reader to the U.S.

London - Mothercare plc intends to create faster and more convenient omnichannel fulfillment options to its customers using supply chain commerce solutions from Manhattan Associates. The Manhattan solutions will enable Mothercare to make store stock available for online sales and support more efficient customer processes to speed up delivery options through express click and collect services and ship from store.

Oak Brook, Ill. - McDonald’s USA is turning to digital menu boards for improved merchandising at more than 14,000 stores. AT&T has collaborated with Stratacache and LG Electronics to provide a completely integrated digital menu board solution.