Modern Restaurant Management magazine compiles restaurant industry headlines, new products, openings and personnel announcements in our weekly MRM News…
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.
Source: Pier 1 sales drop for Q2
The chief executive of Stein Mart has stepped down after only some six months on the job. The off-price retailer announced that Dawn Robertson resigned as CEO and as director of the company’s board, effective Sept. 27, 2016. She also served as chief merchandising officer. Stein Mart president and CEO D. Hunt Hawkins, a 20-year company veteran, was named interim CEO.
Source: A speedy exit for Stein Mart CEO
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.
Source: REI’s DC eyes ‘free energy’
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.
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.
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.
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.
Shoppers at select West Elm stores will soon have their very own listening rooms — with state-of-the art sound speakers. The home furnishings retailer announced a partnership with Sonos to sell the company’s sound speakers and components in its U.S. stores and website, and to install “Sonos listening labs” in 16 West Elm stores. The listening rooms will be outfitted with West Elm’s signature modern furnishings and accessories and Sonos home sound system products.
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.