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.
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.
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.
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.
J.Crew raised a few eyebrows last week when it introduced a women's size 000. Shopping news site Racked noted the new size would be the equivalent to a size XXXS and referenced a commenter who said the physical product featured a 23" waist. A spokesperson for J.Crew defended the addition, telling Today.com, "We're simply addressing the demand coming from Asia for smaller sizes than what we carried. Our sizes typically run big and the Asia market tends to run small ... To further put into perspective, these sizes add up to the smallest possible percentage of our overall sizing assortment."
Apple has won the right to trademark the design of its retail stores in the EU. The Court of Justice of the EU announced that Apple's flagship stores satisfy three conditions: they constitute a sign, can be graphically represented, and distinguish Apple products from third-party goods and services. Apple was able to trademark the design of its retail stores in the U.S. last year, about 2.5 years after filing the original application. The company also wanted a trademark overseas, but was met with resistance from German officials. The battle was eventually referred last year to the European Court of Justice.
After testing the waters of a physical store experience through a series of pop-up shops, online beauty subscription service Birchbox will open its first store, in New York City, today. The brand will attempt to translate the excitement that accompanies opening a box full of new products to try out each month by offering testers of more than 2,000 products a "Try Bar," where shoppers can experiment with different products, as well as a Build Your Own Birchbox section, where they can select five sample-size products for $15.
