Retail Stores

Hennes & Mauritz AB, Europe's second-biggest clothing retailer, reported fourth-quarter profit that topped analysts’ estimates as the company added stores in China and the U.S. and expanded its collection. Net income rose to 6.22 billion kronor ($760 million) in the three months through November, the Stockholm-based company said in a statement today. This year "has gotten off to a good start, with strong sales in both December and January," H&M CEO Karl-Johan Persson said in the statement. The stronger U.S. dollar will affect the company's sourcing costs, he added.

Retail is an evolving, exciting industry right now, and that's unlikely to change in 2015. Disruptive forces will continue to play their part — whether technology based, competitively based or a combination — creating challenges for retailers, but also fantastic opportunities. Here are some things to watch for in 2015:

As one retailer closes the book on its Canadian operations, another is writing its first chapter there. Japanese-owned specialty store Uniqlo said Monday that it will open two flagship locations in Toronto in fall 2016, its first stores in Canada. It then plans to expand its presence with a shop in Vancouver. "Entering the Canadian market is a milestone for the company and a significant step in our growth strategy," said Larry Meyer, CEO of Uniqlo USA and Canada.

When J.C. Penney announced this month that it would shutter 40 U.S. stores, At Home Group Inc. saw an opening. Executives at the retail chain, which sells home decor in warehouses and other large spaces, checked the list of targeted stores and called J.C. Penney within a few hours to express interest in buying some of them. It helps that At Home had already researched J.C. Penney's more than 1,000 U.S. locations ahead of time, just as a shopper would gear up for a big sale.

J.C. Penney and Hallmark have decided they have a match. Last fall, the two companies tested 500-square-foot shops selling cards, gifts, gift wrap and bags in 15 Penney stores. The companies expect to move ahead with the collaboration and open more Hallmark shops in Penney stores later this year. "Our Hallmark pilot has gone well and we will be exploring additional Hallmark shops inside J.C.Penney later this spring," said Penney spokeswoman Sarah Holland.

It was a brief stint for Target in Canada. Less than two years after opening there, Target announced last week that it would close its 133 Canadian stores. Some Canadian Target customers responded emotionally to the news on Target Canada's Facebook website ("totally heartbroken," "please don't go," "good riddance," "you obviously don't understand Canadians"). Target CEO Brian Cornell decided to close the stores after determining that they

J.C. Penney is bringing back its print catalog five years after ditching it to focus on the web, The Wall Street Journal reported. The retailer stopped mailing the "Big Book" catalog in 2009 and phased out its distribution of 70 smaller catalogs a year later, the Journal said. The move is substantiated with data showing that many of its online sales were driven by what the shoppers saw in print, the newspaper said. The new, 120-page book will present items from the company's home department and will be sent to select customers in March.

From securing the ideal piece of real estate to hiring a qualified sales staff, opening and operating a physical store is a costly endeavor for retailers. So which are getting the most bang for their buck? A recent report by Jefferies analyst Randal Konik figured out just that. Based on his coverage universe, which includes specialty stores and off-price retailers, Konik analyzed companies' returns on investment as it relates to what they earn in sales per square foot, compared to what they pay in rent per square foot.

Last weekend another teen fashion retailer, Wet Seal, filed for Chapter 11 Bankruptcy protection. On the face of it, Wet Seal is just another mid-market fashion retailer that failed to grow profitably. A deeper look makes it apparent that the world of teen fashion has changed irrevocably. The list of casualties is long: while cheap-not-so-chic retailers Delia's and Deb Shops are headed for the dustbin of history, and American Apparel struggles to find its identity, other higher-end retailers have also had some real trouble retaining customers.

Sears, despite its own problems keeping its staff employed, is riding to Target workers’ rescue. A day after Target announced plans to close all 133 of its locations in Canada, Sears Canada offered discounts to its competitor's employees and invited them to apply for jobs at its stores. "In recognition of the challenging retail landscape and yesterday's announcement regarding the exit of Target from the Canadian market, Sears Canada wishes to do something meaningful to help employees affected by store closings and job losses and to do so in a respectful manner," the company said in a statement on Friday.