News

By Sandy Skrovan, U.S. Research Director, Planet Retail

On Target's Q1 results, Sandy Skrovan, U.S. Research Director at Planet Retail, comments:

"Don't expect a lot from Target this quarter. The data breach and subsequent fallout - including leadership turnover and ongoing shopper trust issues - weigh like an albatross around the retailer's neck. Besides dealing with internal issues, some broader retail metrics don't bode well for Target either, suggesting another disappointing quarter is on the cards."

London -- The China-based business of U.K. fashion retailer New Look has selected a POS system enabled with DigitalPersona fingerprint technology. After a successful trial at six of the retailer’s stores in February, New Look is set to expand their use of biometrics in 16 of its stores by the end of 2014, with longer-range plans to equip 100 stores by 2017.

Despite the massive data breach that hurt Target’s fourth quarter, people are not staying away from the retailer. According to a Reuters report, the company saw a dramatic improvement in traffic in the first quarter compared to its late fourth-quarter trends.

Despite posting a net sales increase for the first quarter of fiscal 2014, PetSmart’s comparable-store sales missed expectations thanks in part, according to president and CEO David Lenhardt, to a challenging and volatile consumer environment and a competitive market. The company has updated its guidance for the full year as a result.

eBay will be asking its users to change their passwords thanks to a cyberattack that compromised a database containing encrypted passwords and other non-financial data.

While many retailers were still reeling from a prolonged winter that hurt their first quarter results, Michaels saw solid results in its first quarter, posting increases in both net and comparable-store sales.

Bad weather for retail dampened sales at Lowe's, but earnings surged well into the double digits for the first quarter, the company announced Wednesday morning.

Lowe's sales increased 2.4% in the first quarter, rising to $13.4 billion. Comparable-store sales increased 0.9%.

The Mooresville, North Carolina-based retail giant reported a net earnings surge of 15.6% to $624 million for the quarter ended May 2.

Amazon.com took second place overall and was the highest-ranked retailer in the 2014 Temkin Customer Service Ratings, which rates 233 companies across 19 industries with 10,000 U.S. consumers. Other retailers in the top 12 include Chick-fil-A, Publix, H-E-B, Starbucks, Costco, QVC, and Trader Joe's.

Retailers with the most improvement over last year's ratings are Apple Store, KFC, and Food Lion. Ace Hardware and Staples saw their Temkin Customer Service Ratings fall by 15 points or more between 2013 and 2014: No retailers placed at the bottom of the rankings.

Following disappointing results during the first quarter of fiscal 2014, which were consistent with the company’s expectations, American Eagle Outfitters has decided to close 150 stores in North America during the next three years, including nearly 100 AE stores.

For 2014, the company plans on closing approximately 50 AE and 20 aerie stores in North America. The store closings will translate to annualized after-tax savings of between $10 and $15 million beginning in 2015.

Dole announced a succession plan for two of its operational divisions, which includes internal candidates transitioning to more substantial leadership roles.

“We have implemented the following succession plan at two of our operating divisions,” said Michael Carter, Dole’s president and chief operating officer. “David Murdock and I are pleased to have the following internal successors at our Vegetables and North America Fresh Fruit divisions: