News

J.C. Penney continues to be a bright spot in the retail sector with impressive increases in same-store sales and earnings, as well as a new marketing campaign that is generating a lot of buzz.

On Thursday, the retailer announced that same store sales grew 4.1 % for the fourth quarter ended Jan. 30. A combination of strong sales growth, accelerated gross margins and disciplined expense reduction resulted in full year adjusted EBITDA of $715 million, a $435 million increase.

Most people do not get a paid holiday for “Leap Day,” Feb. 29.

Then again, most people do not work for online footwear and apparel retailer Zappos. Known for doing things a little differently, such as replacing the traditional bureaucratic management structure with decentralized “holacracy,” Zappos is taking a novel approach to Leap Day.

Imagine if the type of products consumers normally buy at the last minute represented your product assortment.

For Rocky Mountain Chocolate Factory Canada, a Vancouver, British Columbia-based specialty vertical candy retailer with about 68 Canadian stores, this is the reality of the store environment.

A lot of retailers reach the stage of installing traffic counters in their stores, but it’s at this point that problems can start. The traffic data can become unreliable or the store operations team may not know what to do with the data or how to apply it, which leaves retailers looking for the expected insights and additional sales.
The fact is, they’re there — retailers just need to know how to find them.

They are not mythological monsters, but a real phenomenon retailers say is limiting their ability to take advantage of emerging technologies.

The National Retail Federation (NRF) is officially calling on Congress to pass patent reform legislation that would put an end to “shakedown settlements” forced on retailers by “patent trolls.” Patent trolls are companies that purchase often-obscure patents for technology they did not invent, then demand licensing fees from retailers and other businesses that may not realize the technology is patented.

The Home Depot Inc. specializes in letting customers do it themselves, and is now extending that philosophy across all channels.

“We want to provide interconnected retail, and mobile is one area where we are leaning,” Matt Jones, general manager of mobile for Home Depot, said in an interview with Chain Store Age. “We want to help customers solve their problems in a couple of ways.”

According to Jones, today’s consumers are leveraging mobile devices to aid multiple parts of their shopping experience.

Sears Holdings Corp. says its trend of deep same-store sales declines is slowing, but the company did report a wider loss in the fourth quarter.

For the fourth quarter ended Jan. 30, Kmart and Sears same-store sales declined 7.2% and 6.9%, respectively, which was an improvement from the trend in the first three quarters of 2015. Sears reported a loss of $580 million, or $5.44 a share, compared with a loss of $159 million, or $1.50 a share, a year earlier. Revenue dropped 9.8% to $7.3 billion.

Target Corp. is tapping into the startup community in San Francisco and the Silicon Valley to gain a merchandising edge.

The retailer is launching a series of “Demo Days” aimed at discovering interesting new “smart” products from startup companies. The program kicked off on Feb. 23, with Target inviting 12 startups to its office near Silicon Valley to pitch “smart baby” products. Each company had 20 minutes to showcase its products and receive real-time feedback from Target.

Boston-based online home furnishings retailer Wayfair Inc. managed to shrink its net loss in the fourth quarter of fiscal 2015 while other financial results soared.

Wayfair reported net loss of $15.49 million, down from $72.55 million in the same quarter a year earlier. Growth in cost of goods sold, operating expenses and other costs did not match the rate of revenue growth. Net revenue increased 81% to $739.79 million, from $408.62 million.

The parent company of Victoria's Secret and Bath & Body Works credited the strength of its brands with helping it to buck the financial doldrums affecting many other retailers in the fourth quarter.

For the period ended Jan. 30, L Brands earned $636 million, or $2.15 a share, up from $564.8 million, or $1.89 a share, a year earlier. Net income increased 13% to $636.0 million, compared to $564.8 million last year. Net sales were $4.395 billion, an increase of 8%. Same-store sales increased 6%.