J.C. Penney on Friday announced plans to close stores and reduce its workforce even as it reported its first profit since 2010. In one of its deepest cuts to date, the retailer said it will close 130 to 140 stores, which represent about 13% to 14% of its total, 1,014 store base. The locations to be shuttered are unprofitable, Penney said, and generated less than 5% of total annual sales.
Raley’s has given COO Keith Knopf the additional title of president. Raleys owner & CEO, Michael Teel announced the promotion of Knopf, who joined the company nearly two years ago, around the time Teel took majority ownership of the company. Teel will continue to direct the development of Raley’s overall strategic plan.
Digital transformation is CEOs’ number one priority this year. To make this a reality, chief executives are investing their capital in the Internet of Things (IoT), big data, robotics, and augmented reality, according to “CEO Viewpoint 2017: The Transformation of Retail,” a report from JDA Software Group and PwC.
Source: Survey: Top priority of CEOs is…
A week after bringing in advisers to determine how to return the chain to profitability, Hhgregg is preparing to file Chapter 11.
Family Christian is going out of business. The company said Thursday, Feb. 23 that it plans to close all 240 stores across 36 states, according to Reuters. Family Christian filed for Chapter 11 bankruptcy in February 2015 with more than $120 million in debt. Since then, the chain continued to face a sales slump amid growing competition from online stores.
While RH continued to make investments to transform its business model, these efforts impacted the company’s preliminary fourth quarter earnings. The furniture and housewares company, which officially changed its name from Restoration Hardware to RH last month, posted net income of $8.75 million, or 21 cents per share, for the quarter ended January 28, 2017. This was a drop from $33.3 million in fourth quarter 2015. Earnings, adjusted for non-recurring costs, came to 68 cents per share, beating analyst estimates of 65 cents per share.
Foot Locker won its race in the fourth quarter. For the fourth quarter ended January 28, 2017, the specialty athletic retailer’s profits hit $189 million, or $1.42 per share, compared with net income of $158 million, or $1.14 per share in the same period of 2015. This exceeded analyst estimates of $1.31 per share. The company’s revenue hit $2.11 billion in the period, which met Street forecasts. This was a jump from approximately $2.01 billion for the same period last year.
A new kind of makeup consultant is assisting shoppers at Watsons Shanghai. The health and beauty retailer’s flagship store in Shanghai now features a makeover kiosk. Equipped with the Consultation Mode augmented reality app from YouCam Makeup, the device enables shoppers to try on over 30 different products from their favorite makeup brands, including MaxFactor, Maybelline, and KATE Cosmetics.
Retailers are increasingly relying on mobility for customer engagement, however their marketing strategies are lagging. The fourth quarter 2016 marked the first time mobile engagement has trended down as the mobile click-to-open (CTO) rate declined by 12.6% quarter-over-quarter, and 14.4% year-over-year, according “Q4 2016 Email Benchmark Report: The Mobile Engagement Shift,” from Yes Lifecycle Marketing.
Bruised by weak fourth-quarter results, department stores are now planning more cautiously for 2017 as they re-evaluate how to compete in a rapidly changing retail environment,