News

American Eagle names new executive VP, CFO
American Eagle continues to strengthen its management team to further drive its growth. Bob Madore has been appointed executive VP and CFO, starting Oct. 28. In his new role, Madore will oversee all aspects of finance, merchandise planning and allocation, and investor relations. He will report to American Eagle’s CEO Jay Schottenstein.
Tips for Complying with the New Overtime Rules
In response to public concern that wages at the low end of the pay scale were slow to rise, particularly for store managers and assistant store managers, the United States Department of Labor (DOL) updated the Fair Labor Standards Act (FLSA) regulations defining which white collar workers must be paid overtime pay. The DOL estimates that more than 4 million employees nationwide who are not currently paid overtime will now have to be paid overtime, and the majority of those will be employees of retail stores and restaurants.

Report: EMV delays slow security efforts

One year later, retailers still await the promise of chip-card security. The one-year anniversary of the Europay, MasterCard, Visa (EMV) mandate is looming, yet delays by the card industry have left thousands of new chip readers unused and consumers with far less improvement in security than what was expected, according to a recent survey from the National Retail Federation.
REI’s DC eyes ‘free energy’

Never mind going for the gold, REI has visions of platinum — LEED platinum, that is. Outdoor retailer REI has designed its distribution center to be ‘Net Zero Energy.’ By creating a facility that produces enough renewable energy to meet its own annual energy consumption requirements, REI hopes earns LEED Platinum status — the highest level in the U.S. Green Building Council’s (USGBC) rating system.
Pier 1 protects brand with ‘poison pill’ plan

In addition to posting its earnings, Pier 1 announced a plan to protect the company from potential takeover bids. On Tuesday, the home decor chain announced a “Rights Protection Agreement,” which will protect itself from any single shareholder seeking to acquire a 10% stake or more, as summarized in an article in MarketWatch.
Farm and Ranch giant buys Petsense

Farm-and-ranch industry leader Tractor Supply has always been interested in the pet business, and it even operates two standalone HomeTown Pet stores in Tennessee.
Gap veteran fills top marketing spot at Old Navy

Who says you can’t go home again? Certainly not Gap Inc., which appointed Jamie Gersch as the senior VP, chief marketing officer of its Old Navy banner, reported adage.com. She replaces Ivan Wicksteed, who left the company in March. She will come aboard at the end of October.
Pier 1 sales drop for Q2

Despite strong digital gains, Pier 1 is feeling the effect of soft store sales during the summer. Net sales for the second quarter for fiscal 2017, ended Aug. 27, 2016, decreased 6.7% to $405.8 million, compared to $435.0 million for the same period last year. Comparable store sales for the quarter decreased 4.3%. Gross profit also fell during the second quarter, hitting $145.0 million, compared to $154.6 million in the second quarter of fiscal 2016.
Conn’s to embark on $700 million securitization transaction

Specialty retailer Conn’s is preparing for its newest round of securitization. Conn’s has entered into an agreement to securitize approximately $700 million of retail installment contract receivables, with an expected Oct. 6 closing. The face amount of the notes to be issued is $1.12 billion, with an advance rate of 77.5% of the outstanding customer receivables portfolio balance. This equates to approximately 89.5% of net book value at July 31, 2015.
Walmart ups the e-commerce ante

Walmart’s next e-commerce power-play is reportedly in the works. In its latest move to compete against its online nemesis amazon.com, Walmart is reportedly ready to invest up to $1 billion in Flipkart, according to an article in Quartz.