Top retail news 03-11
Apparel Store News
 

Another retailer with growing online sales and declining profits

MARCH 10, 2016, Women’s apparel specialist Christopher &amp; Banks saw its online sales surge in the fourth quarter, but it wasn’t enough to keep the company from posting an even bigger operating loss than it did the prior year. For More News

Auto Parts Related Store News

 

AutoZone races to get ready for spring

MARCH 9, 2016,  AutoZone is hiring more than 10,000 employees for its busiest selling season of the year.  The retailer and leading distributor of automotive replacement parts and accessories says it will hire more than the new full and part-time employees nationwide through April to ensure its more than 5,100 U.S. stores are staffed and ready to provide great service. For More News

Discount Stores News

 

Fred's gets February sales lift

MARCH 7, 2016,  Fred’s Super Dollar continues to see sales increases as 2016 continues. The company reported Thursday that for the four weeks ending Feb. 27, it saw net sales of $171.1 million, a 12% increase over the same period last year.  For More News

Grocery Stores News

 

Food Lion continues remodeling push

MARCH 9, 2016,  Food Lion is making a major investment in store remodels.  The grocer announced it will remodel 142 stores in the greater Charlotte, N.C., market in 2016. For More News

Home Improvement &amp; Office Products News

 

Staples closing stores

March 7, 2016,  Staples (NASDAQ:SPLS) has been trying to gain approval for its proposed merger with Office Depot, but as that becomes less likely, the retailer is looking to its Plan B: closing stores.  For More News

Restaurant News

 

Report: Restaurants report anemic February same-store sales growth

Mar 10, 2016, The restaurant industry posted a same-store sales increase in February, after reporting disappointing January results, but the growth was far from robust.  For More News

Other Retailers News

 

Surging Dollar General to open record number of stores in 2016

MARCH 10, 2016,  Dollar General reported record sales and profits last year and plans to extend the streak in 2016 with 900 stores and an even greater number in subsequent years, according to the company’s new financial targets.  For More News

 

 

 

General News

 

Retail bankruptcies and the circle of life

MARCH 7, 2016,  The last several years have seen numerous chapter 11 bankruptcies with the most recent being The Sport Authority. It may seem counterintuitive, but bankruptcies are a sign of vibrant industry and give rise to new opportunities for those who know where to look.

 

The Sports Authority is the most recent example, but other bankruptcies the past few years have included Border’s, RadioShack, Circuit City, Loehmann’s, Coldwater Creek, Mandee Shops, Frederick’s of Hollywood,  Body Shop, Cache, Dots, Love Culture, Alco Stores, Ashley Stewart, Deb Shops, Syms/Filene’s, Fortunoff’s and Anna’s Linens. Today there is a new breed of lender to retailers.  No longer are the only options for financing traditional lenders such as JPMorgan Chase, Citibank or Wells Fargo. Hedge funds have entered the lending business and so have specialty lenders that are more comfortable lending to retailers- and particularly comfortable with the risk of having to liquidate retailers. In addition, in the last two decades we have seen more retailers acquired by hedge funds as portfolio companies. Such owners have a greater willingness to acknowledge when a company is broken and when the cost of repair is not worth it. Therefore, they just cut their losses and move on to the next investment.  Finally, as the cost of chapter 11 bankruptcies (professional fees, especially) has increased and the likelihood of a successful restructuring has declined (perhaps due to fierce competition), more retailers are being liquidated than are being reorganized.

 

 

Retail employment up

MARCH 4, 2016,  A strong report on Friday from the Labor Department shows that retail employment was up 51,100 jobs in February on the heels of a gain of 52,100 in January. 

 

Compared with February 2015, retail jobs were up by 247,300. The numbers exclude gasoline stations, automobiles and restaurants. Clothing stores saw significant changes with a gain of 11,100 jobs, reflecting the arrival of sustained winter weather, the NRF noted. The Labor Department reported that total nonfarm payrolls grew 242,000 in February, and that unemployment was 4.9 %, unchanged from January.

 

Apparel Stores

 

Another retailer with growing online sales and declining profits

MARCH 10, 2016, Women’s apparel specialist Christopher &amp; Banks saw its online sales surge in the fourth quarter, but it wasn’t enough to keep the company from posting an even bigger operating loss than it did the prior year.

 

Minneapolis-based Christopher Banks, operator of 514 stores, said its sales declined to $94.6 million in the quarter ended Jan. 30 from $98 million the prior year, as it operated fewer stores. Same-store sales declined 3.4% but online sales surged nearly 50%. The company reported an operating loss of roughly $7.4 million compared to a prior year operating loss of nearly $6 million.

 

 

Men’s Wearhouse parent company to close 250 stores

MARCH 10, 2016, The company formerly known as Men’s Wearhouse plans to significantly reduce its physical presence this year by closing 250 stores, including more than 20% of the Jos. A. Bank stores acquired in 2014.

 

The major reduction is selling space by the company which changed its name to Tailored Brands earlier this year was announced in conjunction with the release of weak fourth quarter results that were in line with previously released results, which showed Jos. A. Bank stores had 32% decline in same-store sales.

 

 

Star power helps boost sales at Express Inc.

MARCH 9, 2016,  Buoyed by strong holiday sales, Express reported impressive results for its fourth quarter as the company’s turnaround remained on track. The chain issued an upbeat earnings forecast for the full year.

The specialty retailer reported better-than-expected net income of $56.1 million, or 67 cents per share compared to $41.8 million, or 49 cents per share, in the year-ago period. Net sales increased 5% to $765.6 million from $725.8 million, less than analysts had expected. Same-store sales, including e-commerce, increased 4%. E-commerce sales rose 8% to $156.3 million. “In outlet, we believe a 150-store fleet is appropriate for us,” Pericleous said. “For the full year, our net and comparable sales increased by 9% and 6% respectively, and our operating margin rose 250 basis points, resulting in a 70% increase in our diluted earnings per share and a 79% increase in our adjusted diluted earnings per share,” he said.

 

 

ShopKo Hometown store growth accelerating

MARCH 7, 2016,  March promises to be a busy month for Shopko.  The retailer will open 10 Shopko Hometown stores in late March, bringing its total number of stores opened this year so far to 12.

 

The company plans to continue to accelerate the expansion of its Hometown format with additional locations through 2017. Developed over the past five years to augment Shopko’s larger store model, the concept is focused on serving the needs of smaller rural communities. Stores average 15,000 sq. ft. to 35,000 sq. ft. Shopko opened 53 new stores in 2015, and the chain projects continued growth over the next two years.

 

Auto Parts Related Stores

 

AutoZone races to get ready for spring

MARCH 9, 2016,  AutoZone is hiring more than 10,000 employees for its busiest selling season of the year.  The retailer and leading distributor of automotive replacement parts and accessories says it will hire more than the new full and part-time employees nationwide through April to ensure its more than 5,100 U.S. stores are staffed and ready to provide great service.

 

 

AutoZone has hired over 4,600 current and/or prior U. S. Military Service Members since 2015 and has a goal of hiring more than 20,000 transitioning service members and military veterans by 2020. High school graduates, vocational/ college students, retirees and veterans are encouraged to apply. AutoZone provides ongoing training and tools to help DRIVE your career in many exciting directions.

 

Discount Stores

 

Fred's gets February sales lift

MARCH 7, 2016,  Fred’s Super Dollar continues to see sales increases as 2016 continues. The company reported Thursday that for the four weeks ending Feb. 27, it saw net sales of $171.1 million, a 12% increase over the same period last year. The announcement follows January’s sales, which also increased 12% over the same four weeks in 2015. Comparable store sales rose 0.8% for the month, compared to flat comps in February 2015.

 

Once again, Fred’s CEO Jerry Shore is crediting specialty pharmacy sales with providing a sales boost. The bump sales saw from specialty was accompanied by an increase in scripts and sales in the pharmacy department, even amid a mild cold and flu season. Shore also credited health and beauty aids as particularly strong performers despite a negative effect the mild cold and flu season had on general merchandise.

 

Grocery Stores

 

Western Canada woes trigger heavy 3Q loss for Sobeys

Mar 10, 2016,  Still struggling to overcome Safeway integration issues and beset by economic and competitive challenges in Safeway's Western Canada markets, Empire Cos. posted slow sales growth and heavy losses in the fiscal third quarter.

 

 

The parent of the Sobeys chain said net losses in the period totaled $1 billion (U.S.), triggered by a $1.3 billion impairment charge related to its assets in Western Canada. Excluding the effects of the write-down, earnings declined by 36.1% to $62.1 million (U.S.) in the quarter, while sales grew 1.5% to $4.5 billion. Comparable-store sales increased by 0.4%, although comps excluding fuel and Western Canada stores improved by 2.7% in the period, which ended Jan. 30. Western Canada stores saw comps decline by 2.7% in the quarter.

 

 

Smart &amp; Final reports results for 'exceptional year'

Mar 9, 2016,  Smart &amp; Final announced financial results Wednesday for “an exceptional year” ended Jan. 3, including record earnings.

 

 

Net income for the 13-week fourth quarter rose 7.4% to $10 million, while sales jumped 18.9% to $997.6 million — including $73.3 million attributable to an extra week in this year’s fourth quarter — and comparable stores sales increased 3.5%, including a 3.9% increase in transaction count and a 0.4% decline in average transaction size, which the company said was negatively impacted by deflation.  For the year net income climbed 15.5% to $38.3 million, while sales were up 12.4% to $4 billion and comps rose 4.5%, including a 4.4% increase in transaction count and a 0.1% increase in transaction size.

 

 

Food Lion continues remodeling push

MARCH 9, 2016,  Food Lion is making a major investment in store remodels.  The grocer announced it will remodel 142 stores in the greater Charlotte, N.C., market in 2016. Food Lion said it will invest $215 million in the stores, which includes remodeling, additional price investments throughout the year and investments in associates and the community through its Food Lion Feeds initiatives.

Charlotte is the fourth area to be remodeled.  Food Lion launched its updated store model in May 2014 as part of its "Easy, Fresh and Affordable. You Can Count on Food Lion Every Day!" strategy. The company remodeled 162 stores in the greater Raleigh, N.C., area in 2015, along with 76 stores in the greater Wilmington, N.C., and Greenville, N.C., markets in 2014. Food Lion will continue to launch enhancements across all of its nearly 1,100 stores in 2016, as well as remodel additional markets over time, the company said.

 

 

Report: Albertsons acquiring remaining Haggen stores

MARCH 8, 2016, The union that represents Haggen employees says that government regulators have given approval to a potential deal where Albertsons would purchase the remaining core Haggen stores, five of which are in Whatcom County.

 

Haggen officials did not have a comment about the union statement.  In a written statement, the United Food and Commercial Workers International Local 367 said the Federal Trade Commission has approved a potential acquisition of the core stores and that both Albertsons and Haggen are finalizing the purchase agreement.

 

 

Fry's confirms expansion plans

Mar 4, 2016,  Kroger's Fry's Food Stores division on Friday released details of a plan to expand its presence in Arizona with seven new stores in 2016, including six large-scale Marketplace units.

SN reported on Fry's activity in the market in October.

 

 

On Friday, Kroger said the expansion plan represents a $260 million investment including the six Marketplace stores, a new Fry's conventional store in Tucson, as well as fuel centers. The initiative will create more than 2,000 full- and part-time jobs.

 

 

Publix aims to own, not rent, supermarket real estate

March 3, 2016,  Publix continues to load up on real estate. The state’s dominant grocer now owns 25.9 percent of its stores, up from 22.9 percent at the end of 2014 and from just 10.7 percent a decade ago, according to an annual report released this week. Between 2005 and 2015, Publix nearly tripled the number of stores it owns, from 100 to 288. As Publix has ramped up its shopping spree, it spent $52.8 million in November on a shopping center in Wellington. Also in November, Publix paid $18.7 million for a shopping center in Jupiter. And in July, the grocer spent $16.25 million for the Shoppes at Ibis in West Palm Beach.

 

 

Publix has been tight-lipped about its real estate strategy, but the grocer long has been known for creating value in the centers where it operates. As it buys retail centers, Publix increasingly is becoming not just the owner of its own space but landlord to neighboring stores. Retailers’ real estate strategies are all over the map. Wal-Mart Stores owns 85 percent of its locations. Office Depot, on the other hand, prefers to lease its space. Office Depot says in its recent annual report that it owns the space at only “a small number” of stores.

 

Home Improvement &amp; Office Products

 

Jordan’s Furniture makes striking first impression

MARCH 9, 2016, An unusual and dramatically-lit exterior adds to the excitement at Jordan’s Furniture’s new store in New Haven, Connecticut. It also signals to passers-by that Jordan’s is not your typical furniture store — not by a longshot.

   

With seven locations in New England, Jordan’s is known for its larger-than-life, mega-sized stores that combine retail with entertainment. It pulled out all the stops for its nearly 200,000-sq.-ft. New Haven outpost, devoting 20,000 sq. ft. of the space to such attractions as an elaborate indoor rope course, a water show complete with light and sound effects, a pizzeria and ice cream counter. The retail space offers more than 125 vignettes that showcase furniture in home-like settings.

 

 

Pier 1 Imports sales better than expected

MARCH 7, 2016,  Customers responded favorably to holiday promotions at Pier 1 during the fourth quarter and the retailer is poised for an even better spring now that it plans a return to TV advertising.

 

The Texas-based home furnishings retailer reported relatively flat same store sales for the fourth quarter ended Feb. 27 (it had expected a decrease of 2% to 4%) as more shoppers were drawn to its holiday assortment. Total sales for the fourth quarter decreased approximately 1.3% (down about 0.4% on a constant currency basis) compared to the same period a year ago. E-commerce sales represented approximately 14.7% of total sales in the fourth quarter. Earnings per share was 18 cents to 22 cents. Total sales for fiscal 2016 were up approximately 0.3% (increasing about 1.3% on a constant currency basis) compared to the prior fiscal year. E-commerce sales represented approximately 16% of total sales in fiscal 2016. Same-store sales, which includes e-commerce, increased approximately 0.6%, which compares favorably against prior guidance of approximately flat growth to fiscal 2015. Fiscal 2016 earnings per share is expected to be in line with prior guidance of 42 to 46 cents per share.

 

 

Staples closing stores

March 7, 2016,  Staples (NASDAQ:SPLS) has been trying to gain approval for its proposed merger with Office Depot, but as that becomes less likely, the retailer is looking to its Plan B: closing stores.

 

The company said it could shutter 50 locations as it prepares to go it alone.   Staples agreed to buy Office Depot for $6 billion in February 2015, but in the year since, the merger has twice been rejected by the Federal Trade Commission on the grounds it would significantly reduce competition in the office supply market. The companies' B2B business is of particular interest. Office Depot and Staples typically compete for company accounts. Staples reported a 5 percent decline in same store-sales on Friday. According to Sargent, the company will have to close stores and take additional measures to stem the losses should it be forced to proceed without Office Depot.

 

 

Winter Storm Jonas hurts revenue at Big Lots

MARCH 4, 2016, Big Lots says harsh winter weather hurt traffic counts and revenue, but the closeout retailer still posted increases in same-store sales for the fourth quarter.

 

Big Lots reported income from continuing operations of $94.7 million, or $1.91 per diluted share, for the fourth quarter ended Jan. 30. Revenue dropped to $1.58 billion from $1.59 billion for the same quarter last year. Same-store sales increased 0.7%. It was the eighth consecutive quarter in which Big Lots has posted positive same-store sales. Looking ahead to the first quarter of fiscal 2016, Big Lots estimates adjusted income from continuing operations in the range of 66 to 72 cents, a 10% to 20% increase compared to last year's income from continuing operations of 60 cents per diluted share.

 

Restaurant

 

Online shopping bites into J. Alexander’s same-store sales

Mar 10, 2016,  Some J. Alexander’s and Redlands Grill restaurants apparently didn’t have a merry Christmas. The casual-dining chains, both operated by Nashville, Tenn.-based J. Alexander’s Holdings Inc., traditionally see strong sales between Thanksgiving and Christmas, at locations near malls and heavy retail areas.

 

But during the company’s fourth-quarter earnings call Thursday, executives indicated that such traffic has been slowing, at least in those retail-heavy areas, for the past three years. Sales at the company increased 11.2 percent, to $59.3 million in the fourth quarter, from $53.3 million the previous year. Net income for the quarter increased 5.9 percent, to $2.3 million, or 16 cents per share, from $2.2 million, or 15 cents, a year ago.

 

 

 

Report: Restaurants report anemic February same-store sales growth

Mar 10, 2016, The restaurant industry posted a same-store sales increase in February, after reporting disappointing January results, but the growth was far from robust.

 

February’s anemic same-store sales growth of 0.4 percent continues to fuel fears that consumer spending at restaurants has slowed to a crawl, according to data reported by TDn2K’s Black Box Intelligence through The Restaurant Industry Snapshot, based on weekly sales from over 23,000 restaurant units and more than 120 brands, representing $57 billion dollars in annual revenue.

 

 

Papa Murphy’s 4Q same-store sales decline on difficult comparisons

Mar 9, 2016,  Papa Murphy’s Holdings Inc.’s 19-quarter run of consecutive same-store sales increases ended in the fourth quarter, when same-store sales fell 3.1 percent.

 

President and CEO Ken Calwell blamed the decline on a steep rise in same-store sales a year earlier, when the parent company of the Vancouver, Wash.-based take-and-bake chain introduced its Gourmet Delites line and saw same-store sales rise 8.4 percent at company-owned units and 4.3 percent at franchised locations. Revenue for the quarter rose 19.5 percent, to $33.8 million. Net income was $2.6 million, or 16 cents per share, falling from $2.8 million, or 17 cents per share, a year earlier.  For the year, revenue rose 23.4 percent, to $120.2 million, and net income was $4.9 million, compared with $1.2 million in fiscal 2014.

 

 

Shake Shack 4Q same-store sales increase boosts profit

Mar 7, 2016,  Shake Shack Inc. saw same-store sales rise 11 percent in the fourth quarter ended Dec. 30, the company said Monday.

 

The increase helped the chain turn a profit in the quarter. Net income increased to $1.2 million, or 8 cents per share, rising from a loss of $1.4 million, or 5 cents per share, in the same period a year ago.  Revenue in the fourth quarter increased 46.8 percent, to $51.1 million, from $34.8 million a year ago.  Operating profit increased 88.1 percent, to $13.9 million in the quarter, from $7.4 million. As a percentage of sales, operating profit increased 590 basis points.

 

 

Buffet company Ovation Brands closes 92 units

Mar 7, 2016,  Ovation Brands Inc. closed 92 locations over the weekend and trucked away equipment in its second round of closures in just a month that has cut more than half of the buffet operator’s total locations.

 

The closures of Old Country Buffet, HomeTown Buffet, Ryan’s and other locations came just before Ovation was placed into bankruptcy by its owner, Food Management Partners, which bought the company in August. This is Ovation’s third bankruptcy in just eight years.

 

 

Austin-based Asian restaurant chain ramps up expansion plans

Mar 7, 2016,  Mama Fu’s Asian House, the 10-year-old Austin-based Asian restaurant chain, is “hitting its stride” with expansion and plans to open nearly a dozen locations this year, including three upcoming in the Austin area, CEO Randy Murphy said.

 

 

Such growth brings new challenges for parent company Mama Fu’s Franchise Group LLC, Murphy said in an interview with Austin Business Journal. Mama Fu’s is tentatively set to open its newest locations April 1 in northern Round Rock near Ikea, on April 18 in Bastrop and on May 2 in Cedar Park, across U.S. Highway 183 from the Cedar Park Regional Medical Center. Those dates are subject to change. Murphy said the company will spend just under $2 million on the three stores, which will employ 100-plus people combined.

 

 

Dollar Stores, Warehouse Club &amp; Other Retailers

 

Party City parties on in fourth quarter; plans to expand

MARCH 10, 2016,  Party City on Thursday posted an increase in same-store sales and profit for the fourth quarter and said it is on track to expand its footprint this year.

 

But it also cautioned that sales may slow. Party City reported a profit of $86.5 million for the fourth quarter ended Dec. 31, up from $79 million a year earlier. On a per-share basis, earnings declined to 72 cents from 83 cents. Total revenue slipped 2.8% to $781.5 million. Same-store sales increased 2.8%, fueled by a strong Halloween season. Looking ahead to fiscal 2016, Party City expects fiscal 2016 total revenues of $2.35 to $2.42 billion, and comparable sales to range from flat to up slightly. Its revenue guidance fell short of analysts' expectations.

 

 

Surging Dollar General to open record number of stores in 2016

MARCH 10, 2016,  Dollar General reported record sales and profits last year and plans to extend the streak in 2016 with 900 stores and an even greater number in subsequent years, according to the company’s new financial targets.

 

In 2015, Dollar General opened 730 new stores and remodeled or relocated 881 stores which combined with a 2.8% same store sales increase allowed it to grow total sales 7.7% to $20.4 billion. The company ended its fiscal year on Jan. 29, with 12,483 stores. Sales in the fourth quarter increased 7% to $5.3 billion and same-store sales increased 2.2% due to growth in customer traffic and transaction size. Net income for the period was $376 million, or $1.30 a share, compared to net income of $355 million, or $1.17, in the 2014 fourth quarter. Dollar General’s annual sales increased 7.7% to $20.4 billion and full year profits increased 9% to $1.17 billion, or $3.95 a share.

 

 

Sports Authority supplier slashes forecast

MARCH 8, 2016,  Sport Authority’s decision to file bankruptcy is contributing to one of its suppliers making a major downward revision to a 2016 profit forecast.

Performance Sports Group, a supplier of team sports equipment under the Bauer and Easton brands, slashed its profit forecast for the current fiscal year by 55 cents to a range of 12 cents to 14 cents from a range of 66 cents to 69 cents. Nine cents of the shortfall was attributed to anticipated losses from “a U.S. national sporting goods retailer that has filed under chapter 11.”


 

 
[]