News

MONTREAL – U.S. discount-store operators should keep an eye on their Northern neighbors, as Canadian dollar stores continue to thrive. Anticipating their growth potential, Virginia-based Dollar Tree acquired Canada’s Dollar Giant Store in November 2010, adding 86 more stores to its repertoire and marking its first expansion outside of the United States.

New York City -- Although there were some same-store drops among the discount retail players in March, most beat Wall Street expectations and showed that shoppers are continuing to spend despite a less-than-ideal economic climate.

Costco Wholesale Club was a strong performer in March, beating analysts’ estimates with a 7% rise in same-store sales for the month, excluding fuel. Wall Street expected a 5.5% increase.

The complexities of running a retail business combined with low margins prevalent in the mass market leave little room for error when it comes to achieving operating profitability. For any retailer to produce a profit is quite an accomplishment, and in the case of Walmart it is even more impressive when factoring in some of the extracurricular activities that go on in its stores.

Union, N.J. -- Bed Bath & Beyond reported Wednesday that profit for the fourth quarter ended Feb. 26 rose 25% to $283.5 million, compared with $226 million a year earlier.

The company, which forecast earnings growth for the current year that would beat Wall Street estimates, also said it expects to open 45 new stores this year across its banners , which also include Christmas Tree Shops and buybuy Baby, and expects to continue renovating and relocating existing stores.

Former retail industry executive Austin Ligon was named to the newly created position of non-executive chairman of the board at Gazelle where he will play a more active role in development of the company’s consumer electronics re-commerce business.

Washington, D.C. -- A report released Thursday by the National Retail Federation and conducted by BIGresearch found that spending on food, gifts and apparel is expected to increase this Easter.

According to NRF’s 2011 Consumer Intentions and Actions survey, the average consumer is expected to spend $131.04 on everything from candy to clothes -- up from last year’s $118.60, but still not quite meeting pre-recession spending levels.

Total spending on Easter-related merchandise is expected to reach $14.6 billion.

CAMP HILL, Pa. — Sales at Rite Aid fell during the fourth quarter and fiscal year 2011, according to financial results announced Thursday.

The 4,714-store retail pharmacy chain had sales of $6.5 billion for fourth quarter 2011, which ended Feb. 26, with a net loss of $205.7 million. Still, that was less than fourth quarter 2010’s loss of $208.4 million. For the fiscal year, sales were $25.2 billion, compared with $25.7 billion in fiscal year 2010. The year saw a net loss of $555.4 million, compared with $506.7 million in 2010.

San Francisco -- Gap has entered into a new $500 million revolving credit facility with a syndicate of banks led by BofA Merrill Lynch, J.P. Morgan and Citigroup Global Markets. The new financing matures in 2016 and replaces the company’s existing $500 million revolving credit facility. As part of the same financing agreement, the company also entered into a $400 million five-year term loan.