Retail Stores

Big Lots officials are hammering away at numerous changes they hope will fatten the bottom line, company executives told investors at a recent conference. They're so confident, in fact, that they recently initiated a cash-dividend program for shareholders, a first for the company. Many of the changes are those that have been reported before: making furniture a key part of the business, becoming the Hostess snack-cake thrift outlet, and working harder to appeal to Big Lots’ target customer, nicknamed "Jennifer." But one change that's underway might surprise the industry and customers alike: improvement to the store's electronic security systems.

Tablets have been touted as "reinventing" and "revolutionizing" retail. Retailers and consumer-facing businesses have been testing the use of tablets to ­­­­­­­­gain operational and marketing advantages, and they like the results. Here are some ways retailers are getting big impact out of small screens:

One business segment in which Microsoft is unlikely to announce layoffs this week are its retail stores. The stores, the brainchild of former long-time Wal-Mart executive David Porter, who was brought on board in 2009, number 101 in the United States, Canada and Puerto Rico. Microsoft has 58 full-line retail stores and 43 "specialty stores." According to Microsoft, its specialty stores are located in malls across the U.S. and Canada and are typically a smaller footprint than full-line stores, are located in central locations in the mall and and offer a curated assortment of products.

Aaron's Inc. on Tuesday said it plans to close 44 underperforming stores in the third quarter of fiscal 2014 and continue other cost-reduction initiatives in response to disappointing core business performance. The electronics, furniture and appliances rentals retailer also revised its earnings guidance downward for the second quarter. The company praised the performance of its recently purchased Progressive Finance unit. "With that said, we're disappointed with our core business results and are taking aggressive action to respond to the challenging economic environment and the evolving industry in which we operate," said Ronald W. Allen, CEO, Aaron's. 

Wolverine Worldwide will close 140 retail locations as part of an effort to make its store operations more profitable. The closures, mostly Stride Rite stores, will happen over the next 18 months, the footwear giant announced yesterday. The pending closures are part of a plan to improve overall profitability and address a fundamental shift in consumer shopping behavior. The specific locations that will close haven't been released. 

Online retailers are constantly experimenting and iterating on connecting social media campaigns with more sales, and this is certainly true of Amazon.com's efforts with its automated add-to-cart hashtag, #AmazonCart. With the tagline "Add it Now, Buy it Later," Amazon has implemented a process whereby users who link their Twitter ID to their Amazon account can add products to their shopping cart from within Twitter simply by replying to any tweet including an Amazon link with the hashtag #AmazonCart. Amazon touts this as a convenient way for users to capture items seen while browsing Twitter for future reference. Retailers are supporting the effort by tweeting instructions and opportunities to use the hashtag from their own brand accounts.

Sales at U.S. retailers rose in June by the smallest amount since January, but most stores except for auto dealers and home-improvement outlets boasted an improvement in revenue. Sales were also a bit stronger than previously reported in May and April, according to revised government data. That could give an extra pop to the estimate for U.S. growth in the second quarter when the government reports the preliminary figure at the end of the month. Retail sales account for about one-third of consumer spending, the main engine of economic activity, and the report helps determine gross domestic product. 

Staples said it will end a pilot program with the U.S. Postal Service to set up mini-post offices in the company's retail outlets, after several protests outside the stores. Postal workers have protested the program for months, objecting to expanding post office services to Staples stores, staffed with nonunion workers. The news comes days after the American Postal Workers Union won the support of the American Federation of Teachers (AFT) after it approved a resolution to boycott Staples.

Apparel Magazine's annual Top 50 ranks the 50 apparel brands with the highest overall profit margin. Despite harsh weather across much of the nation negatively impacting sales, a handful of retailers were still able to keep profit margins healthy. Overall profitability of the Top 50 fell from an average of 7.1 percent last year to 6.1 percent this year, signifying a switch in consumer spending from soft to hard goods. Here's a quick look at the top 10 retailers on the list:

Just as the baby boomer generation fueled the growth of suburban mall development, millennials and their life experiences are inspiring radical changes in retail. As the largest U.S. generation, millennials and their preferences will matter to the huge consumer complex for decades to come.