In a week heavy with financial reports from major retailers, there were some clear winners and losers.
On the positive side of the ledger, Target reported strong sales and income and comp growth across its core categories, plus a 30% gain in online sales, as it raised its 2015 earnings guidance. But CEO Brian Cornell warned there is work to be done to bring Target’s complex supply chain more in line with its focus on omnichannel operations and the $1 billion tech investment behind it.
Staples had a successful second quarter with sales up 1% and North American B2B revenue up by 3%, driven by a 4% sales growth in contract and local currency.
On the other hand, American Apparel signaled it may go out of business sometime in the next 12 months when reporting disappointing Q2 results. The company, facing mounting debt, declining sales and cash issues, is aggressively pursuing a turnaround plan it unveiled to shareholders in June.
And Sears saw a rare move into the black for its second quarter, but it was fueled by the sale of store assets which it is leasing back from a REIT it set up last year.
In addition to retail financials, here are some other important stories across the wide world of stores, ecommerce and operations we were watching this week.
J.C. Penney is gearing up for its omnichannel future in an effort to satisfy the needs of its customers…Facebook gears up for a second ecommerce push allowing a small number of brands to sell directly through its new “shop” section on their pages… ArtistBe.com launches completely new responsive design and optimized site….. It’s back-to-school season and there are four things millennials want with your online business.
Shipping and delivery
The ability to buy its way into the full truckload (FTL) brokerage sector, while gaining significant capabilities in freight backhaul services, led UPS to its $1.8 billion acquisition of Coyote Logistics. … Wonolo, a San Francisco startup with an app that matches workers with available temp positions, has based much of its growth on the booming ecommerce sector, especially fulfillment and delivery operations…. Amazon working on a secret project called “Amazon Flex” which could allow customers to pick up packages at Amazon’s new Kirkland facility in Washington… The Internet of (Postal) Things is coming, including data-gathering sensors on delivery trucks, smart connected mailboxes and more.
Bitnet and PAY.ON partners to enable Bitcoin acceptance globally … Shoptiques.com launches in Canada, marking the fourth country Shoptiques.com has store partnerships….Walmart sees slower growth globally in Q2.
Mergers and Acquisitions
QVC plans to acquire zulily for $2.4 billion, which will represent a combined annual revenue of more than $10 billion…Continuing a recent trend in logistics consolidation, Geodis, Europe’s fourth-largest supply chain operator, plans to acquire OHL for an estimated $800 million…. Oracle announced it is acquiring Maxymiser in an effort to manage marketing programs across all digital channels…
Advertising helped Wayfair beat Q2 expectations. … Nordstrom highlights its omnichannel experience with its Q2 gains. … American Eagle reported strong second quarter growth of 12% to a record of $797 million, compared to $711 in 2014.
… And more
Target announced it will settle up on its data breach with Visa Inc.,agreeing to pay Visa issuers up to $67 million.