Industry Updates: Discount and Specialty Stores – April 2015
Best Buy President and Chief Executive Officer Hubert Joly has added the title of Chairman to his responsibilities after long time board member and now former Chairman Hatim Tyabji and several others decided to step down.
Corel announced that Patrick Nichols has been appointed as Corel’s Chief Executive Officer (CEO).
Dollar General has announced that Rhonda M. Taylor, Senior VP and General Counsel, has been promoted to Exec VP and General Counsel.
EVINE Live Inc. the digital commerce company formerly known as Value Vision Media Inc. and ShopHQ, announced that Tim Peterman has joined the company’s leadership team as Exec VP and CFO, replacing Bill McGrath. As the company continues to transition its business, EVINE Live is consolidating leadership and announced it is eliminating President Bob Ayd’s position. EVINE Live also announced the departure of Teresa Dery, Senior VP and General Counsel. The company has appointed Chief Strategy Officer, Russell Nuce, as interim General Counsel, effective immediately.
Fred’s, Inc., announced several key management changes, including: Bryan Pugh named Chief Merchandising and Marketing Officer (CMMO). Craig Barnes promoted to Exec VP Supply Chain, Global and Domestic Logistics. Mike Holligan promoted to Exec VP of Store Operations.
Petco has filled two key executive roles as it continues to build a team to successfully execute key strategic initiatives. The company has named Michael M. Nuzzo as Exec VP and CFO and Michael W. Zuna as Senior VP and Chief Marketing and Digital Officer. As CFO, Nuzzo will be responsible for leading the company’s overall financial strategy and execution, with accountability for finance, information technology, legal, investor relations, supply chain, and business development functions. As Chief Marketing & Digital Officer, Zuna will be responsible for leading the company’s effort to engage with pet parents and nurture powerful relationships for better lives together. He will have accountability for all marketing, advertising, public relations, digital and e-commerce activities for Petco.
PetSmart Inc. is looking to drive growth with six new executive appointments focused in the areas of customer experience, merchandise planning, strategy, initiatives, sourcing and real estate. The additions to the senior leadership team reflect the first major hires by PetSmart’s newly installed President and CEO, Michael Massey. Joining the company are: Eran Cohen, Exec VP of Customer Experience; Ron Cooperman, Exec VP of Strategy, Initiatives and Real Estate; Ted Passig, Exec VP of Buying and Sourcing; Phil Vostrejs, Exec VP of Merchandise Planning Allocation, Distribution and Supply Chain; and Brian Amkraut, Senior VP of Real Estate. The company also announced that Gregg Scanlon has been promoted to Senior VP of Store Operations and Services and through this promotion has been named to the senior leadership team.
RadioShack, under new ownership after emerging from bankruptcy, announced the departure of now former CEO Joe Magnacca. The announcement came a day after Standard General was given the green light by a bankruptcy court judge to acquire RadioShack’s assets.
RadioShack’s new ownership group has named former Dell Executive Ron Garriques as the company’s new CEO. He replaces Joe Magnacca who just stepped down.
Target announced that Anne Dament has been named Senior VP of Merchandising to lead what the company is calling the strategic repositioning of its food business. Dament most recently served as VP of Services at PetSmart, but the bulk of her career has been spent in the food industry.
Tiffany’s CEO Michael J. Kowalski retired from the company March 31, 2015. Kowalski, will continue to serve as non-executive chairman. The board has tapped Frederic Cumenal, the company’s President, as Kowalski’s successor.
Toys “R” Us Inc. has named a new head merchant to drive product innovation and differentiation at the company’s Babies “R” Us stores. Reg McLay has been named Senior VP, Babies “R” Us Business. In this role, McLay will lead the Babies “R” Us merchandising team in the U.S. He will report to Hank Mullany, president of Toys “R” Us, U.S.
Advance Auto Parts, Inc. announced its financial results for the fiscal year ended January 3, 2015. Annual sales jumped to $9.69 billion from the previous total of $6.49 billion. Much of the increase is attributed to the acquisition of General Part which was finalized in January, 2014.
Amazon.com, Inc. announced financial results for its year ended December 31, 2014. Net sales increased 20% to $88.99 billion, compared with $74.45 billion in 2013.
American Girl Inc. a wholly owned subsidiary of Mattel, Inc., announced financial results for the year ended December 31, 2014. Net sales fell to $620.7million from $632.5 million from the previous year.
Bed Bath & Beyond Inc. reported financial results for the full year of fiscal 2014 ended February 28, 2015. Net sales for fiscal 2014 were approximately $11.881 billion, an increase of approximately 3.3% from net sales of approximately $11.504 billion in fiscal 2013. Comparable sales for both fiscal 2014 and fiscal 2013 increased by approximately 2.4%.
Books-A-Million Inc. announced financial results for the year ending January 31, 2015. Annual sales increased to $474.1 million, up from $470.3 million from the previous year.
CafePress Inc. reported financial results for the full year ended December 31, 2014. Net revenues from continuing operations for 2014 totaled $229.5 million.
CDW announced financial results for the fiscal year ended Dec. 31, 2014. Annual revenue rose to $12.1 billion from $10.8 billion for the previous year.
Conn’s, Inc. announced its financial results for the full year ended January 31, 2015. Consolidated revenues increased 24.4% to $1.5 billion due to new store openings and an increase in same store sales of 8.0%;
Dollarama Inc. reported an increase in sales for the fiscal year ended February 1, 2015. Annual sales increased by 12.9% to $2.33 billion.
Five Below, Inc. announced financial results for the fifty-two weeks ended January 31, 2015. Net sales increased by 27.0% to $680.2 million from $535.4 million in the comparable period in fiscal 2013; comparable store sales increased by 3.4%.
Fred’s, Inc. reported financial results for the year ended January 31, 2015. Fred’s total sales for fiscal 2014 were $1.970 billion versus $1.939 billion for fiscal 2013,. On a comparable store basis, fiscal 2014 decreased 0.6% versus an increase of 0.6% for the year-earlier period.
GameStop Corp. reported sales and earnings for the fiscal year ended Jan. 31, 2015. For fiscal year 2014, total global sales were $9.30 billion, a 2.8% increase (a 4.3% increase in constant currency) compared to $9.04 billion in fiscal 2013. Full year consolidated comparable store sales increased 3.4% compared to fiscal 2013, primarily driven by better than expected next-generation hardware sales and growth in the pre-owned category.
Gordmans Stores, Inc. announced results for its fiscal year (fifty-two weeks) ended January 31, 2015. Net sales increased 2.4% to $634.6 million compared to $619.6 million in the fifty-two weeks ended February 1, 2014.
Insight Enterprises, Inc. reported results of operations for the year ended December 31, 2014. For the full year, consolidated net sales increased 3% compared to the full year 2013 to $5.3 billion.
Mattel, Inc. reported full year financial results as of December 31, 2015. Net sales fell by seven percent to $6.02 billion from $6.5 billion.
O’Reilly Automotive, Inc. announced record revenues and earnings for its full year ended December 31, 2014. The results represent 22 consecutive years of comparable store sales growth and record revenue and operating income for O’Reilly since becoming a public company in April of 1993. Sales for the year ended December 31, 2014, increased $567 million, or 9%, to $7.22 Billion from $6.65 Billion for the same period one year ago.
Overstock.com, Inc. reported financial results for the fiscal year ended Dec. 31, 2014. Annual revenues rose to $1,497 million from $1,304 million for the previous year for a 15% increase.
PC Connection, Inc. announced financial results for the year ended December 31, 2014. Net sales for the year ended December 31, 2014 were $2.46 billion, an increase of $241.7 million or 10.9%, compared to $2.22 billion for the year ended December 31, 2013.
PCM, Inc. reported financial results for the year ended December 31, 2014. Annual net sales declined slightly to $1.356 billion from $1.36 billion for the previous year.
Restoration Hardware Holdings Inc. reported that total revenue for the year came in at $1.87 billion, up from $1.55 billion from the previous year.
Sears Outlet Stores announced annual financials for the fiscal year ended January 31, 2015. Annual net sales increased to $663.7 million from a total of $610 million from the previous year.
Six Flags Entertainment Corporation announced its fifth consecutive year of record financial performance as it posted a company-high $1.2 billion in revenue, an increase of $66 million or 6 percent over 2013.
Systemax Inc. announced financial results for the fiscal year ended December 31, 2014. Annual sales rose to $3.44 billion from $3.35 billion for the previous year.
The Andersons, Inc. announced financial results for the full year ended December 31, 2014. Annual revenues from the retail group totaled $140.8 million.
The Michaels Companies, Inc. announced record financial results for the fiscal year ended January 31, 2015. For the full year, net sales increased 3.7% to $4.74 billion. Comparable store sales for fiscal year 2014 were 1.7% or 2.4% on a constant currency basis,
The Pep Boys – Manny, Moe & Jack announced annual financial results for the fiscal year ending January 31, 2015. Annual revenues came in at $2.08 billion, a slight increase from the $2.07 million recorded from the prior year and down from $2.09 from two years ago.
Tiffany & Co. reported its results for the 12-month period ended January 31, 2015. Net sales rose 5% to $4.25 billion.
Toys“R”Us, Inc. reported financial results for the full year of fiscal 2014 ended January 31, 2015. Annual sales slipped slightly down to $12.36 billion from $12.54 billion from the previous year.
U.S. Cellular Corporation announced financial results for the year ended December 31, 2014. Total operating revenues for the year were $3.89 billion down one percent from $3.92 billion for the previous year.
Williams-Sonoma, Inc. announced operating results for fiscal year 2014 ended February 1, 2015. Fiscal Year 2014 net revenues grew 7.1% to $4.699 billion versus $4.388 billion in Fiscal Year 2013 with comparable brand revenue growth of 7.1%.
Mergers and Acquisitions
PetSmart’s investors have officially approved a buyout of the company by a private equity firm, setting up a payout to stockholders of $83 per share. In December, PetSmart announced it accepted a bid on the company for $8.7 billion. The company expects the transaction to close on March 11. The buyout means PetSmart will become a private company.
PetSmart, Inc. announced that its stockholders approved the acquisition of PetSmart by a consortium led by BC Partners, Inc. and including La Caisse de dépôt et placement du Québec, affiliates of StepStone Group LP and Longview Asset Management, LLC at its special meeting of stockholders held March 6, 2015.
Alco Stores announced going-out-of-business sales have been completed and all retail functions have been liquidated.
At Home has entered a new market with the opening of its first New Mexico store.
Best Buy has announced that it is shutting down its Future Shop stores in Canada, consolidating under the Best Buy name and spending $200 million on its e-commerce capabilities. Best Buy says it has converted 65 of the Future Shop locations into Best Buy stores and 66 others are closing immediately. Best Buy acquired Canada’s Future Shop chain in 2001 for C$581 million. The company will now have a total of 192 locations across Canada, including 136 large-format stores and 56 Best Buy Mobile stores.
Conn’s, Inc. announced plans for the opening of 15 to 18 new stores and the closure of two stores during the current fiscal year.
Five Below, Inc. announced that in 2015 the company plans to open 70 new stores and generate a same store sales increase of approximately 3%.
Five Below, Inc. announced that after opening its first stores in Alabama this month, the company has opened its first stress in Kentucky.
GameStop Corp. announced plans to increase its Technology Brands segment store count by approximately 350 to 550 stores, while reducing its video game store count by approximately 3% as part of its on-going sales transfer initiative.
Leslie’s Poolmart Inc. plans to open 41 new stores this year by the end of May.
Meijer has announced that it will invest nearly $50 million to remodel and expand four supercenters in Ohio, bucking a trend set by Walmart and other retailers of focusing on smaller stores. The project is slated to be finished later in 2015 and will provide each store with a new facade, remodeled gas station and drive-thru pharmacy. The remodeled supercenters will also have enhanced floor plans to allow for expanded selections in departments throughout the store.
The Michaels Companies, Inc. announced that it plans to net an additional 30 locations during the current fiscal year.
Party City enjoyed a nice first-day boost on April 16 after the company completed its initial public stock offering. A total of 21,875,000 shares were priced at $17 in the offering and began trading at $20.15. By the end of the first day’s trading, shares had advanced $3.70 to close up 21.8% at $20.70. The company’s ticker symbol is PRTY.
TigerDirect, a division of Systemax Inc., is closing all but three of its stores in the U.S. and internationally. The only stores it’s keeping open are its flagship store in Miami along Flagler Street, one in its technology products distribution center in Georgia and one in Puerto Rico, which has a significant business-to-business operation in that market. The 31 other stores are expected to be shuttered by the end of June. Each store that’s closing is eliminating about 40 jobs, according to TigerDirect. the company has made the strategic decision to accelerate its business-to-business and public sector customer focus, but mostly via its website.
99 Cents Only expects to derive significant benefits from a switch to natural gas fueled vehicles at its main distribution center in California. The extreme value retailer said it opened a fully operational compressed natural gas (CNG) filling station on site at the company’s main distribution center in the Los Angeles suburb of City of Commerce. The move is the final step in the company’s plan to adopt a green approach to a private fleet operation that serves 383 stores in California, Arizona, Nevada and Texas. Over the past 18 months, 75% of the company’s fleet was converted from diesel to CNG which it contends benefits communities because its trucks are cleaner, quieter and more efficient. The 53 CNG trucks the company operates will drive approximately 3.7 million miles and will help reduce greenhouse gas (GHG) emissions by 6,500 metric tons over the next seven years, according to the company.
Meijer has announced that all stores scheduled to be remodeled will meet Leadership in Energy and Environmental Design (LEED) standards and include exterior lighting and parking lot upgrades. Additionally, the introduction of newer technology in key areas during the remodel process results in reduced energy usage and a more energy-efficient store.