News

By Douglas H. Meal, David T. Cohen, and Lisa L. Rachlin, Ropes & Gray LLP

Retailers, like all businesses, constantly seek to learn more about their customers in order to serve them better. In Tyler v. Michaels Stores, however, the Massachusetts Supreme Judicial Court recently ruled that a simple step taken by many retailers to help achieve this goal – collecting the ZIP codes of their customers at the point of sale – can in some circumstances violate Massachusetts’ consumer protection statute.
   

Flipping the coin
Last August in this space, I discussed the troubling sales trends and tumbling earnings from iconic retailer J.C. Penney, mentioning that the growing pains associated with implementing CEO Ron Johnson’s ambitious brand overhaul might have been a case of “too much too soon.” Given that Ron Johnson is now ex-CEO, it’s clear that those growing pains were too much to overcome.

I’m sure I don’t need to tell any retailers out there that consumers are adopting mobile technology at a breakneck pace and integrating it into every part of their lives, including shopping. And while the retail industry generally understands that mobile technology CAN add significant value to both the customer experience and their own bottom line, it may not exactly know HOW or WHY this is the case.

As part of Von Maur's march beyond its core Heartland markets, in 2008 it opened a 130,000-sq.-ft. anchor store at the 1.1 million-sq.-ft. The Greene Town Center, located in Beavercreek, Ohio, and owned by MPI. That store has become the fashion heartbeat of a vibrant mixed-use destination that was originally built by MPI in 2006, expanded in 2008, and slated to expand again in 2014 with another 40,000 sq. ft. of retail.

Von Maur got its start like many of its department store peers: An immigrant with an American dream opened a downtown store, customers came, they shopped, the brand took hold and took off.

In the case of the midwestern upscale department store banner Von Maur, the dreamer was German immigrant J.H.C. Petersen, who opened a downtown storefront in Davenport, Iowa, in 1872. He and his sons grew the business and sold it nearly a half-century later to a partnership that included two Austrian brothers -- C.J. and Cable von Maur, whose family gained full ownership by 1937.

Starbucks chairman, president and CEO Howard Schultz announced changes to the company’s senior leadership team, aimed to further accelerate the company’s global growth plans.

BEAVERTON, Ore. — Nike has promoted VP Michael Spillane to VP and GM of Nike’s Greater China geography effective June 1. 

Spillane was most recently the CEO and president of Umbro, which Nike divested of last year. Spillane replaces Craig Cheek who will move to a global role as VP and GM of Nike’s Young Athletes, where he will oversee strategy and drive growth supporting the company’s key categories around the world.

CAMP HILL, Pa. — Rite Aid's same-store sales decreased 4% in April compared with April 2012 due to an earlier Easter and introductions of new generic drugs, the retail pharmacy chain said.

The numbers released Thursday included a 3.5% decrease in sales on the front end and a 4% decrease in pharmacy sales, but the pharmacy figure included a 4.5% negative effect due to new generics. Same-store prescription count decreased by 0.2%.

Total sales for the month were $1.9 billion, a 4.6% decrease over April 2012's $2 billion.

SEATTLE — Jones Soda Co., a beverage company known for its colorful sodas and customer-designed packaging, announced the launch of Natural Jones Soda.

The Natural Jones Soda product line is sweetened with a proprietary blend of natural sweeteners including pure cane sugar, organic agave syrup and stevia. Each 12-ounce glass bottle contains 30 calories, five grams of fiber and five grams of sugar and comes in four fruit flavors: Green Apple, Orange Mango, Cherry and Lemon Lime.

NEW YORK — Delia’s has appointed Tracy Gardner as the company’s new chief creative officer, and also as a member of the board of directors. Walter Killough, who back in January announced his intention to step down as CEO April 1, has agreed to remain in the role through August 2. 

The company also named Michael Zimmerman chairman of the board, replacing Carter S. Evans, who will remain on the board.