Friday, January 30, 2015

Coach's Sales Continue to Plummet, But the Relative Success of Its New Stores Offers Hope

Taken in a vacuum, Coach's sales numbers don't look too hot right now. The American retailer reported Thursday morning that in the second quarter, which ended Dec. 27, sales dropped 14 percent to $1.22 billion. North American sales dropped 20 percent, with same-store sales down 22 percent. In sum, the company's income shrank from $297 million during the same period in 2013 to $183 million.

Here's the good news: a glossier finish does seem to be working for the brand. According to CEO Victor Luis, stores remodeled in Coach's new design concept have been significantly outperforming old locations. . . . more

Dollar General blasts FTC as deal escapes

In the end Family Dollar danced with who brung ’em — leaving behind a rejected suitor feeling twice beaten.

Shareholders of Family Dollar voted to approve its $8.5 billion merger with Dollar Tree, after support for a $9.7 billion counteroffer from Dollar General fizzled out amid reports the Federal Trade Commission would require some 4,000 store divestures for approval of the latter deal — more than twice the number of locations Dollar General was prepared to give up.. . . more

Kate Spade Saturday and Jack Spade to Shut Down All Stores

Kate Spade Saturday's L.A. store. Photo: Kate SpadeAfter just two years on the market, Kate Spade Saturday — Kate Spade's lower-priced, more casual offshoot — is closing all 19 of its stores. Jack Spade, Kate Spade & Company's 22-year-old menswear brand, is also shuttering all 12 of its stores. Stores will close gradually over the first half of 2015, and Kate Spade Saturday's e-commerce site will remain active during that time.

In a statement, the company said that "key elements of Kate Spade Saturday's success" will be incorporated into the main Kate Spade line, and that Jack Spade will pursue "a new business model... to leverage the distribution network of its retail partners and expand its e-commerce platform.. . . more

Jones New York to close stores, end wholesale business

Jones New York announced Thursday that it is closing stores, discontinuing its wholesale business and will look at strategic alternatives for its brand.

The privately-held women's clothing company says that it is making the move after a review of its recent performance and outlook.. . . more

Whole Foods, Half Off

John Mackey, the co-founder and co-chief executive officer of Whole Foods Market, is making for the produce section of his 80,000-square-foot flagship store in Austin, Texas. He walks with a slight limp, the result of osteoarthritis in his hip after years of jogging and basketball, so it’s easy for customers to recognize him and chat him up.

One, clutching a ground beef and veggie taco lunch, tells him he’s been shopping at Whole Foods for three decades.. . . more

Shake Shack set to shake up Wall Street

Shake Shack is already immensely popular with foodies in Manhattan and Brooklyn. And now it's about to take another part of New York by storm: Wall Street.

The upscale burger joint priced its initial public offering at $21 a share Thursday evening. That's above the price range Shake Shack set earlier this week, which it had already raised due to strong demand. . . . more