News

Issaquah, Wash. – Costco Wholesale Corp. reported a bigger-than-expected 15% drop in net income for the second quarter amid deep-discounting during the holidays. Net income in the quarter ended Feb. 16 fell to $463 million from $547 million.   
 
Costco blamed the lower earnings on several factors, including weaker sales of certain nonfoods merchandise categories and lower international profits. The year-ago period was also helped by a tax benefit.
 

In the sales versus margins battle at Costco, sales got the upper hand during the holiday season and the company’s second quarter ended Feb. 16.

Ongoing weakness at Staples' North American retail division has resulted in the planned closure of 225 units as part of a larger expense savings program and increased emphasis on digital initiatives.

The store closure announcement, part of a larger plan expected to save $500 million by the end of 2015, was announced in conjunction with the release of fourth-quarter results and new insights regarding the company’s online business.

Bad weather and a reduction in food stamps didn’t seem to have an effect on Kroger during the fourth quarter as the retailer posted a 4.3% increase in identical-store sales, meaningful profit improvement and offered an optimistic outlook for the year ahead.

Oscar Mayer is giving bacon lovers a reason to wake up early. The brand has unveiled the first-ever iOS device that wakes people up with the smell of bacon. The device, called Wake Up & Smell the Bacon, syncs with the Oscar Mayer Wake Up & Smell the Bacon iPhone app to emit the scent and sound of sizzling bacon when the rooster crows.

The Children’s Place is the latest retailer to say heavy promotions and bad weather hurt its fourth-quarter results.

The company’s net earnings in the quarter ended Feb. 1 dropped 18% to $15.7 million, from $19.1 million in the year-ago period, which had an extra week. It reported net sales of $467.5 million for the quarter, down from $509.2 million in the year-ago period. Same-store sales declined 4.3%.

Snack manufacturer Mondelez International has entered into a global strategic partnership with Facebook, as the company continues to shift more media spending to digital, especially social and mobile, across the entire consumer journey.

The NPD Group has signed a market information services agreement with Nielsen, a leading global provider of information and insights into what consumers watch and buy, for school and office supplies retail market data and analytic services.  

By combining Nielsen’s market information, including sales data from food and drug channels, with NPD’s existing school and office supplies business, which covers office superstores, mass merchants, e-commerce and other retailers, NPD says it will deliver the industry’s most complete view of the marketplace.

PetSmart plans to open 70 net new stores this year, including approximately 50 of its standard prototypes, 20 micro stores and three PetsHotels. That’s 10 more than last year, during which the largest specialty pet retailer of services and supplies also closed five stores and opened three new PetsHotels.

The company will spend remaining capital expenditures on store remodel-type projects, supply chain, technology, maintenance and other infrastructure improvements.

Walmart didn’t mention competitive issues as a source of sales weakness during its fourth quarter, but reports this week from Kroger and Costco indicate they were at least a contributing factor.