Retail Stores

Go big or go home seems to be the theme of Michael Kors’ retail expansion plan. Between opening more freestanding stores and shops-in-shop and launching a new e-commerce website, Kors has big plans for his brand throughout the next year or so. According to WWD, the company plans to open 45 stores in North America in fiscal 2015, as well as 10 in Japan. John D. Idol, the chairman and CEO of Michael Kors, said the brand also plans to open more retail stores in various airports. 

Apple is in talks with several high-profile retail store chains about a mobile payment service, reports 9to5Mac. Citing a source with knowledge of the discussions, the site suggests Apple is speaking with retail store brands that sell luxury clothing and premium goods to gauge interest in such a service. An Apple-branded mobile payment solution would likely be integrated directly into iOS devices, allowing people to use their iPhones or other devices to make purchases for physical goods both on the web as well as in-store. 

Express will close about 50 of its more than 600 stores as part of an effort to rebound from a poor first-quarter earnings report. The Columbus-based fashion retailer reported net income of $5.1 million, or 6 cents per share, for the first quarter, down from $32.4 million, or 38 cents per share, during the same time last year. Wall Street analysts had expected the retailer to report earnings of 14 cents per share. The news sent Express’ stock price down by more than 9 percent in after-hours trading.

In the face of its late re-emergence into the world of mobility, and the real and rapid decline in its mainstay — new personal computer sales — you can't blame analysts for wondering about Microsoft's future prospects. After all, the company is still working to ply users’ fingers away from its now unsupported, going-on 13-year-old operating system (OS) Windows XP, even as its most recent offering, Windows 8.1 has received a lukewarm reception in the marketplace.

Tom Shull sees tens of millions of ready and loyal customers sitting out there — just beyond his reach. That's hard for any retailer to pass up, but it's even harder when your profits help soldiers and their families, said Shull, chief executive of the Army & Air Force Exchange Service (AAFES). AAFES, the U.S. military's largest retailer, is asking the Pentagon to allow it to offer online shopping to all honorably discharged veterans. The site is now available only to active service members, retirees and disabled veterans. 

On the heels of disappointing results for the first quarter of fiscal 2014, American Eagle Outfitters Inc. has decided to close 150 stores in the U.S., including 100 namesake stores. For 2014, the company is planning to close approximately 50 American Eagle and 20 aerie stores in North America. Beginning in 2015, the company anticipates annualized after-tax savings of approximately $10 million to $15 million related to these store closures. American Eagle's net income plummeted 86 percent to $3.87 million from $27.98 million. Total net revenue fell 5 percent to $646.13 million from $679.48 million.

Target may have been knocked down by a huge holiday season data breach last year, but its most recent quarterly earnings report and continuing replacement of top management show the retailer has other, bigger problems to address. Target's Canadian expansion has suffered from poorly managed inventory planning and a lack of understanding of the Canadian market. Meanwhile, merchandise even in U.S. stores has lost its gotta-have-it quality, and foot traffic had been slowly declining even before the breach happened. "They're behind the curve right now," says Sandy Skrovan, U.S. research director for Planet Retail, a retail research and advisory firm.

Sears posted a bigger loss for the first quarter as the struggling retailer failed to arrest a fall in sales despite offering heavy discounts to woo shoppers. Shares of the company, which operates Sears department stores and the Kmart discount chain, fell 7 percent in premarket trading. Sears, controlled by hedge fund billionaire Eddie Lampert, has been shedding assets and closing stores as it battles the operating losses and weak sales that have plagued the company since 2005, when the two chains were merged. 

An unlikely hero is emerging at the back of a store. A store's back-room space has become a secret weapon in the war for e-commerce market share. It enables goods processing, returns and a new delivery channel: ship from store. With a critical IT investment to support inventory visibility across a retailer's entire platform, this method of retail combat is driving revenue, supporting same-day delivery, avoiding costly markdowns and integrating the customer experience. Back rooms are now doubling as local, mini distribution centers.

At no point in the last several decades has a company's chief information officer been more important to the overall organization. That's because if CIOs can effectively manage their customers’ privacy, they'll be able to enhance loyalty, drive sales and improve a company's stock price in the midst of this challenging new environment. The recent hacking of millions of credit cards and other confidential customer information at major retail chains has put information security on the front page. A proactive, savvy CIO can put his company's safeguards on the front page as well.