Tipsheet: Kohl’s -2.7% | Macy’s -4.6% | Wmart Taps Hays | Kroger New C-Store | Basement Crawl
Kohl’s Q1 Comp Sales -2.7% “Kevin Mansell, Kohl’s chairman, chief executive officer and president, said, “We are encouraged by the significant improvement in sales and traffic for the March and April period, after a weak February start to the first quarter.” Press release
…Fox Business: Kohl’s Posts Higher Profit as Store Traffic Improves “Kohl’s reported a 14 percent jump in adjusted quarterly profit, helped by higher traffic in stores in March and April and as a leaner inventory helped it discount less.” Read more
Macy’s Q1 comp sales: owned basis down 5.2%; down 4.6% on an owned plus licensed basis Press release
…Reuters: Macy’s quarterly profit tumbles 39% “Net sales fell 7.5 percent to $5.34 billion, falling for the ninth straight quarter and missing the average analyst estimate of $5.47 billion.” Read more
Whole Foods bets on 365 format, cost cuts to revive growth by Jeff Daniels at CNBC. “Same-store sales in the quarter ended April 9 were down 2.8 percent, although better than the 3.1 percent decline in comps that had been projected by analysts polled by Thomson Reuters.” Read more
…Whole Foods Shakes up Board of Directors at Fortune. “Whole Foods Market named a new chief financial officer and five independent directors who were not on activist investor Jana Partners’ slate…The new independent directors are former Footlocker Chief Executive Ken Hicks, Morningstar founder and Executive Chairman Joe Mansueto, former Best Buy Chief Financial Officer Sharon McCollam, Panera Bread founder and Chief Executive Ron Shaich, and State Street Global Advisors CEO Scott Powers.” Read more
Walmart Taps Hays to Succeed Huff as EVP, Consumables, H&W at Progressive Grocer. “Wal-Mart Stores Inc. has revealed that Scott Huff, its EVP, consumables, health & wellness, who is retiring after 23 years with the mega-retailer, will be succeeded by Marybeth Hays, currently chief merchandising, marketing and supply chain officer at Walmart China. Hays will fully transition into the role on June 1.” Read more
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Stitch Fix has $730 million in annual revenue and is profitable by Jason Del Rey at Recode. “Stitch Fix still hasn’t raised any funding since a $25 million round led by Benchmark in 2014, it turns out, but many e-commerce industry insiders couldn’t figure out how. Here’s one answer: The company has been cash-flow positive since 2014…Barring a giant acquisition offer, many industry insiders expect the next stop to be an IPO for Stitch Fix.” Read more
Walmart looking into note found recounting forced labor in China at Reuters. Read more
Macy’s, JCPenney Losing Search Clicks To Newcomers Like Rent The Runway by Laurie Sullivan at MediaPost. “Newcomers like Rent the Runway, which allow women to rent a dress, have moved in to take share from traditional formalwear retail stores, as well as the paid-search advertising category, generating a 9.3% click share on the prom dress category, according to recent data from AdGooroo.” Read more
Costco gives green light for construction of Fremont chicken plant by Barbara Soderlin at Omaha World-Herald. “Costco’s corporate office has given the go-ahead for construction of the company’s planned poultry operation in Fremont. Site work could begin in a few weeks, and project managers plan a ceremonial groundbreaking for June, they told The World-Herald on Wednesday.” Read more
Sears Doesn’t Think It Needs More Customers by Phil Wahba at Fortune. “We don’t need more customers. We have all the customers we could possibly want,” Lampert told shareholders at the Sears annual meeting on Wednesday, speaking of the Shop Your Way program. His comments were confirmed by a Sears spokesman.” Read more
Delivery drone sets U.S. record by flying a package 97 miles at Fast Company. Read more
CRAWLING OUT OF THE BASEMENT – The Next Hot Housing Market: Starter Homes by Laura Kusisto & Chris Kirkham at Wall Street Journal. “Some 854,000 new-owner households were formed during the first three months of the year, more than double the 365,000 new-renter households formed during the period, according to Census Bureau data. It was the first time in a decade that more households chose to own than rent compared with a year earlier, according to an analysis by home-tracker Trulia.” Read more (subscription)
Adidas’s TaylorMade golf line settles for low-balling buyer by Josh Kosman at NY Post. “Adidas AG finally found a buyer for its TaylorMade golf division — but not at the price it envisioned…While the deal was announced at $425 million, KPS will put up only about $200 million in cash, two sources close to the situation said.” Read more
Urban Outfitters has agreed to stop selling Harley-Davidson branded merchandise by Kali Hays at WWD. “There doesn’t appear to be a monetary aspect to the settlement despite Harley initially demanding $2 million in damages.” Read more
Harris Poll Study Shows Millennials Award Higher Brand Equity to Retail Stores Compared to Older Generations “Sporting goods store brand equity is 7.7 points higher among millennials compared to baby boomers, while luxury department stores (+5.6)…electronics stores (+5.7)…off-price retailers is 4.9 points higher…footwear and department stores are 4 points and 3.8 points higher, respectively. Only hardware and home stores (-3.8) have lower brand equity among millennials compared to baby boomers.” Press release
Canadian Tire buys popular kitchenware brand Paderno Press release
Kroger to open new convenience store concept at Cincinnati Business Courier. “…a concept called Fresh Eats MKT in the eastern Columbus suburb of Blacklick…The store also features a drive-thru Kroger pharmacy.” Read more
Europe’s Fashion Brands Expand in U.S. Even as American Stores Close Doors by Saabira Chaudhuri at Wall Street Journal. “We’re not in all the malls we want to be in yet,” said Nils Vinge, head of investor relations for Swedish fast-fashion retailer Hennes & Mauritz, “There is still opportunity for physical stores.” Read more (subscription)
Gun Industry’s Post-Election Demise ‘Greatly Exaggerated’: Ruger by Matthew Rocco at Fox Business. Read more
Tipsheet Extra Stories
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Cubs retired catcher David Ross headed to Jewel-Osco with new product
Sneak peek inside Cincinnati’s first Duluth Trading Co. store
Bloomberg: The Crop That Ate America
Philly Mayor says legal marijuana should be sold in Pennsylvania liquor stores
Southeastern Grocers Could be Facing ‘Worst of Times’
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