Friday, July 29, 2016

GNC shares plunge after CEO resigns and company suspends earnings guidance

Pedestrians walk by a GNC store in New York.Shares of GNC dropped 25 percent Thursday, after the nutritional supplement company announced CEO Michael Archbold will step down. Pittsburgh-based GNC also suspended its earnings guidance for fiscal 2016.

The news followed a poor showing for the retailer's same-store sales, a key metric that indicates the health of existing, stable stores. The company reported a 3.7 percent slide in same-store sales for domestic company-owned stores, which includes online sales from GNC.com. In U.S. franchise locations, same-store sales dropped 6.6 percent in the quarter.. . . more

Chipotle Opens First Tasty Made Burger Location in Ohio This Fall

It’s official. Chipotle is getting into the burger game. After months of speculation, Chipotle today confirmed a few details regarding its forthcoming burger concept. As Eater was the first to report, the restaurant will be called Tasty Made, and will make its debut in Lancaster, Ohio this fall.

The new concept will specialize in burgers, fries, and milkshakes. According to a press release, Tasty Made will take a page from Chipotle’s book when it comes to serving "food with integrity" (although that phrase has been called into question thanks to last year’s E.coli outbreak).. . . more

Supervalu falls short in Q1

Image result for save a lot store Supervalu Inc. on Wednesday lower-than-expected profit for the first quarter amid ongoing efforts to spin off its Save-A-Lot division.
 
Supervalu’s discount banner, Save-A-Lot reported a 1.7% rise in net sales to $1.42 billion. In June, Supervalu announced its intent to spin off Save-A-Lot as a separate company within the next two years.. . . more

Amazon crushes earnings expectations

Two weeks after its second annual Prime Day surpassed expectations, Amazon’s winning streak continued as it posted its fifth straight quarter of profitability.
  
The online giant posted adjusted earnings per share of $1.78 for the quarter ended June 30, easily surpassing expectations for $1.11. Net income was $857 million, compared with $92 million in the year-ago period.
     
Amazon Web Services (AWS) was crucial to the company’s second quarter profit performance, and accounted for more than half of its overall profits, reported mashable.com.. . . more

Retail Demand for Space Holds, Despite Sales Slowdowns in Stores and Restaurants

Dunkin DonutsWhen news of sluggish sales hits the retail real estate sector, department stores and apparel retailers emerge as the usual suspects for waning demand for space. Restaurants are usually seen as alternative anchors that can occupy vacant anchor spaces, drive shopper traffic and help malls maintain healthy leasing levels.

That picture is becoming more complicated. Restaurants have experienced weaker foot traffic and sales for about six quarters, according to RBC Capital Markets. Restaurant spending increased by about 6.25 percent by the end of the first quarter of 2016, but that was down from a spending increase of 8.0 percent in the second quarter of 2015.. . . more

Sports Authority’s Demise Shakes Faith in Consignment Deals

Image result for sports authority store closingSports Authority Inc. limped into bankruptcy in March with a straightforward plan to survive as a smaller, more nimble purveyor of bats, balls, sneakers and sweatpants.

Job One? Close unprofitable stores and sell off their inventory.

But almost immediately a fight broke out over who owned some of that inventory: The retailer or the vendors who supplied it on consignment? Employees had to pull more than $25 million in stock from liquidation sales while the company and the suppliers bickered about how deeply to slash prices and who got the money.. . . more

Mass. sales tax collections fall for first time in 3 years

Boston, Massachusetts -- 6/22/2015-- Clothes hang on the rack at 2nd Time Around in Boston, Massachusetts June 22, 2015. Jessica Rinaldi/Globe Staff Topic: 25downpage-shop Reporter: Massachusetts merchants often complain that shoppers skip brick-and-mortar outlets for online rivals. But local retailers now have some numbers that could back up that claim: Statewide, sales tax collections have dropped for the first time in more than three years.

The state Department of Revenue’s just-released June tax collection figures show a 1.3 percent decline from the same month a year earlier.. . . more

U.S. Economy Grew a Less-Than-Forecast 1.2% in Second Quarter

Image result for weak economic growthThe U.S. economy expanded less than forecast in the second quarter after a weaker start to the year than previously estimated as companies slimmed down inventories and remained wary of investing amid shaky global demand.

Gross domestic product rose at a 1.2 percent annualized rate after a 0.8 percent advance the prior quarter, Commerce Department figures showed Friday in Washington. The median forecast of economists surveyed by Bloomberg called for a 2.5 percent second-quarter increase.. . . more

Wednesday, July 27, 2016

Whole Foods struggles to get back on its feet

A little over a year after being accused of price-gouging, Whole Foods isn't back on its feet. Sales at the company's stores open a year or more declined for the fourth consecutive quarter, according to results released Wednesday afternoon.

Whole Foods  profits declined 22% from a year ago to $120 million. Overall sales rose 2% to $3.7 billion, which was a record for the quarter, but still a far cry from the company's double digit sales growth just two years ago. . . . more

Kmart Shoots Down Reports Sears Is Closing It Down

Media reports that Kmart is slowly going out of business via stealth liquidation sales have clearly struck a nerve with parent company Sears Holdings.

The company published a blog post on Wednesday seeking to debunk claims that Kmart is getting ready to shut down after a Business Insider article last week said, citing employees, that the company was purging warehouses and putting all stock out on the sales floor in what could seem tantamount to close-out sales.. . . more

Panera 2Q same-store sales rise 2.3 percent

Panera BreadPanera Bread Co.’s systemwide same-store sales increased 2.3 percent in the second quarter ended June 28, the company reported Tuesday.

The company-owned same-store sales increase included transaction growth of 0.4 percent and average check growth of 3.8 percent, the company said, adding that in the first 27 days of the third quarter same-store sales had risen 3.1 percent.. . . more

Macy's, Nordstrom, Others Fight For Identity In An Off-Price Retail World

Image result for tj maxxNew research from The NPD Group is quite clear. Roughly two-thirds of all consumers who shop for clothes do so at off-price outlets. Their purchases represent 75 percent of all the clothing purchased across all of retail.

Drilling down, older consumers (45+) make up more than half of those buying apparel in off-price stores. Older Millennials between 25 and 34 make up about 16 percent. Each group increased its share of off-price purchases in the last year, according to NPD.. . . more

Diners are losing their appetites for eating out

Image result for slow restaurant businessOur topsy-turvy current events are causing US consumers to lose their appetite for dining out.

That opinion was expressed by Wall Street analyst Paul Westra of Stifel Nicolaus, who declared the US is at the start of a “restaurant recession.”

Westra made the observation after studying several months of weak sales at major chains.. . . more

Amazon set to test drone deliveries — but not in the United States

The world’s biggest online retailer took a big step to move drone deliveries forward.
 
Amazon has entered into a partnership with the British government that will allow the retailer to test and develop new drone delivery systems.. . . more

Retailers amping up store experience with bars, restaurants

Image result for space ninety 8Aiming to stand out in a world overflowing with retail shops and online competitors, some chains  want to become destinations for diners and drinkers, not just shoppers.

The Urban Outfitters here in Brooklyn, called Space Ninety 8, has two bars — one on the roof and another on the third floor near the men's department — as well as an Israeli barbecue restaurant. The store doesn't discourage walking around the clothing displays with a drink in hand. . . . more