Millennial brides force David’s Bridal, fresh out of bankruptcy, to try something new

David’s Bridal already has something old: 60 years in the bridal industry. Now, David’s Bridal is looking to conquer the new bridal landscape even as the $2.4 billion bridal-wear industry declines along with the marriage rate. Those investments include Blue Print Registry, which David’s Bridal acquired last year, giving it technology to help brides plan their registry, import registries from other retailers and register for cash. It is evaluating other ways to help brides streamline wedding plan


David’s Bridal already has something old: 60 years in the bridal industry. Now, David’s Bridal is looking to conquer the new bridal landscape even as the $2.4 billion bridal-wear industry declines along with the marriage rate. Those investments include Blue Print Registry, which David’s Bridal acquired last year, giving it technology to help brides plan their registry, import registries from other retailers and register for cash. It is evaluating other ways to help brides streamline wedding plan
Millennial brides force David’s Bridal, fresh out of bankruptcy, to try something new Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: lauren hirsch, jeenah moon, bloomberg, getty images
Keywords: news, cnbc, companies, second, millennial, bankruptcy, retailer, fresh, try, bridal, stores, force, davids, retailers, brides, dresses, help


Millennial brides force David's Bridal, fresh out of bankruptcy, to try something new

David’s Bridal already has something old: 60 years in the bridal industry. Now, having emerged from three months in bankruptcy proceedings, it is trying something new as start-up competition and millennial brides upend its market.

The retailer filed for bankruptcy in November, saddled in debt that partially stemmed from its $1.05 billion sale to private equity firm Clayton Dubilier & Rice in 2012. It emerged from bankruptcy in January, a quick in-and-out made easier after its lenders and equity investors agreed on a new structure.

“We are very happy to be on the other side of it,” Chief Executive Officer Scott Key told CNBC.

Now, David’s Bridal is looking to conquer the new bridal landscape even as the $2.4 billion bridal-wear industry declines along with the marriage rate. Newer online retailers like Reformation offer brides more relaxed alternatives to traditional gowns. Online retailers like Jasmine Bridal are making their own wedding dresses and selling them for less than gowns sold in stores in the past.

Millennials are also marrying later — though later weddings could lead to more expensive affairs.

“We are making significant investments in improving our overall customer experience,” said Key.

Those investments include Blue Print Registry, which David’s Bridal acquired last year, giving it technology to help brides plan their registry, import registries from other retailers and register for cash. It unveiled a new commercial in January that reminded brides “most importantly, something you.” It is working with its in-house alteration team to help brides customize and personalize their dresses. It is evaluating other ways to help brides streamline wedding planning.

It is also offering more dresses in a broader array of sizes, while making certain dresses available at more price points. It lowered prices of many of its best-selling bridesmaid dresses.

One significant change not in the works is cutting away at its store base. Unlike many retailers that enter bankruptcy to help get rid of bad leases and trim their footprint, David’s Bridal emerged with roughly the same 300 or so stores it had across the U.S., Canada, U.K. and in Mexico, through franchise owners. It continues to add to its footprint in Canada, opening up a store in Vaughan, Ontario, last month. It has two stores owned by franchisees in Mexico, with two more in the works.

Barring the occasional exception, most David’s Bridal stores are profitable, said Key.

The retailer is also hoping to avert another trend marked by other bankrupt retailers: a second trip back to bankruptcy court. Gymboree filed for the second time earlier this year, while Payless is planning its own potential second trip into bankruptcy court, CNBC has reported, though those plans could still be averted.

While credit ratings agency S&P has said it sees positive signs for the retailer with its “significantly reduced balance sheet debt and a still fairly well-recognized brand name,” it has also raised some potential pitfalls. S&P said the bridal retail landscape remains challenging, and there is “execution risk” associated with David’s Bridal’s new strategies.

Key, though, says he remains confident, in part due to its continuing hold in the bridal market and the changes the company expects to implement.

Out of bankruptcy “we can return to what we do well: servicing one in three brides in the market place,” said Key.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: lauren hirsch, jeenah moon, bloomberg, getty images
Keywords: news, cnbc, companies, second, millennial, bankruptcy, retailer, fresh, try, bridal, stores, force, davids, retailers, brides, dresses, help


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Another wave of retail store closures coming. ‘No light at the end of the tunnel’

Another wave of store closures is expected to hit shopping centers and malls this year with “no light at the end of the tunnel,” according to a new research report. Retailers have already announced 2,187 new store closures since Jan. 1, including Gymboree, J.C. Penney, Charlotte Russe and Ann Taylor parent company Ascena Retail, according to Coresight Research. That’s up 23 percent from the number of announcements documented at the same time last year, the market research group said. Already thi


Another wave of store closures is expected to hit shopping centers and malls this year with “no light at the end of the tunnel,” according to a new research report. Retailers have already announced 2,187 new store closures since Jan. 1, including Gymboree, J.C. Penney, Charlotte Russe and Ann Taylor parent company Ascena Retail, according to Coresight Research. That’s up 23 percent from the number of announcements documented at the same time last year, the market research group said. Already thi
Another wave of retail store closures coming. ‘No light at the end of the tunnel’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: lauren thomas, robert barnes, getty images
Keywords: news, cnbc, companies, tunnel, retail, announced, expected, closures, group, thing, light, coresight, wave, coming, retailers, store, research, end


Another wave of retail store closures coming. 'No light at the end of the tunnel'

Another wave of store closures is expected to hit shopping centers and malls this year with “no light at the end of the tunnel,” according to a new research report.

Retailers have already announced 2,187 new store closures since Jan. 1, including Gymboree, J.C. Penney, Charlotte Russe and Ann Taylor parent company Ascena Retail, according to Coresight Research. That’s up 23 percent from the number of announcements documented at the same time last year, the market research group said. And there’s “potentially many more on the way due to companies currently in the bankruptcy process and more on the horizon.”

In 2018, Coresight tracked 5,524 store closure announcements in the U.S., which was down more than 30 percent from a record 8,139 closures announced in 2017. David Simon, CEO of the largest mall operator in the U.S., Simon Property Group, recently said the pace of store closures was slowing, but he expected more in 2019, with a handful of private equity-backed retailers on his so-called watch list.

Analysts say the U.S. is still “over-stored,” especially when compared with other countries. As more purchases are happening online, there’s less of a need for so much retail real estate. And the retailers that are still opening new locations are thinking much smaller.

Already this year, Coresight said retailers have announced 1,411 store openings (offsetting about 65 percent of store closures), largely stemming from dollar and discount chains.

Department store chains and specialty apparel retailers, meanwhile, are the two categories within retail still expected to shrink. But not everyone views store closures as bad news.

“You don’t always look at store closures as a negative thing,” said Brandon Famous, senior managing director of the retail advisory group at commercial real estate services firm CBRE. “That doesn’t always dictate consumer sentiment. All the numbers point up,” he added, referring to the industry forecasts for retail sales growth in 2019.

“With any vacant department store, an owner has the opportunity to increase their rent, to reinvigorate or reinvent the space,” Famous said. “In many cases a landlord looks forward to the opportunity of getting that space back. In many cases it will be a positive thing.”


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: lauren thomas, robert barnes, getty images
Keywords: news, cnbc, companies, tunnel, retail, announced, expected, closures, group, thing, light, coresight, wave, coming, retailers, store, research, end


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Target to sell Flamingo razors, adding to its roster of online brands like Casper and Harry’s

The big-box retailer’s latest deal is with Flamingo, a women’s body care brand launched late last year by men’s shaving start-up Harry’s, which is already being sold in Target stores. Starting Monday, Flamingo’s razors and shaving gel for women will be in all of Target’s 1,800 locations across the U.S., marking the brand’s bricks-and-mortar debut. For Target, selling goods from brands like Flamingo is helping the company increasingly become known as a “cool” place to shop. (Walmart did start sel


The big-box retailer’s latest deal is with Flamingo, a women’s body care brand launched late last year by men’s shaving start-up Harry’s, which is already being sold in Target stores. Starting Monday, Flamingo’s razors and shaving gel for women will be in all of Target’s 1,800 locations across the U.S., marking the brand’s bricks-and-mortar debut. For Target, selling goods from brands like Flamingo is helping the company increasingly become known as a “cool” place to shop. (Walmart did start sel
Target to sell Flamingo razors, adding to its roster of online brands like Casper and Harry’s Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-04  Authors: lauren thomas, source
Keywords: news, cnbc, companies, stores, flamingo, adding, razors, online, target, retailers, brands, women, harrys, casper, roster, walmart, shaving, sell


Target to sell Flamingo razors, adding to its roster of online brands like Casper and Harry's

Target is stocking its shelves full of brands born on the internet in hopes of appealing to younger shoppers who don’t want the same Old Spice deodorant or Schick razor their parents use.

The big-box retailer’s latest deal is with Flamingo, a women’s body care brand launched late last year by men’s shaving start-up Harry’s, which is already being sold in Target stores. Starting Monday, Flamingo’s razors and shaving gel for women will be in all of Target’s 1,800 locations across the U.S., marking the brand’s bricks-and-mortar debut.

For Target, selling goods from brands like Flamingo is helping the company increasingly become known as a “cool” place to shop. And for brands like Flamingo — which uses sleek packaging to promote women shouldn’t be embarrassed to shave their underarms — the deal offers huge exposure and reach to consumers en masse that would be hard to achieve alone.

“We know Target is such a core part of [our core customer’s] weekly shopping experience,” Allie Melnick, general manager of Flamingo, told CNBC. She said the brand completed survey work before it determined this would be a “natural collaboration.” In many big-box stores, the heavily trafficked aisles that sell razors and other body care for women “haven’t been touched” by old-school brands in a really long time, presenting an opportunity for Flamingo to move into retail, Melnick added.

Target has inked a handful of similar deals with so-called digitally native brands including Casper for mattresses, Native for deodorant, Harry’s for men’s shaving essentials, Quip for electronic toothbrushes and Bark for dog toys. The approach is somewhat different than that of one of Target’s biggest competitors, Walmart, which has gone the way of outright buying some of these digitally native brands, like Bonobos and Moosejaw. (Walmart did start selling Harry’s razors in its stores last year, after Target.)

Another retailer going the same route as Target is Nordstrom. The department store chain has lined up a series of brands in recent months including sneaker maker Allbirds, luggage retailer Away and Casper to sell in its stores, often for a limited period of time. The news has helped generate buzz and pull shoppers in who want to test out those products offline. Unlike Flamingo and Harry’s, though, Allbirds, Away and Casper already have their own stores and are growing that network today.

Tie-ups between traditional retailers and these up-and-comers make sense for a number of reasons, including the fact that the collaboration can help young brands decide if they should open their own standalone stores as a next step, according to Jake Mendel, of Silicon Valley Bank’s Early Stage Practice in New York. Many of these brands born on the internet bring with them cult-like followings — huge Instagram audiences — that legacy retailers like Target and Walmart can potentially piggyback on, Mendel added.

“Big retailers are acutely aware that direct-to-consumer brands are building close and authentic relationships with their customers, which seems to be driving a willingness to be more flexible on terms than they have historically,” he said.

It’s also worth noting a lot of these tie-ups thus far have been in the consumer-packaged-goods space — for things like razors, toothbrushes and deodorant.

“If you’re selling a product with a low absolute dollar margin, even if your gross margins are insane, you still need to move a lot of volume to build a large scale business,” Mendel said. “With [the large majority] of consumer sales still happening through retail channels, these partnerships are a great way to reach large volumes very quickly.”


Company: cnbc, Activity: cnbc, Date: 2019-02-04  Authors: lauren thomas, source
Keywords: news, cnbc, companies, stores, flamingo, adding, razors, online, target, retailers, brands, women, harrys, casper, roster, walmart, shaving, sell


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Some retailers put plans on hold amid economic uncertainty, Yellen says

“We are hearing anecdotal reports about businesses beginning to put investment plans on hold because of [economic] uncertainty,” she told CNBC’s Steve Liesman, who was moderating a panel session. Yellen said those investments in consideration could include things like upgrades to a retailer’s supply chain. “The trade tensions, I think, really concern businesses … in terms of what the future holds in store,” Yellen added. “I think if [the government shutdown] continues, it could impact consumer


“We are hearing anecdotal reports about businesses beginning to put investment plans on hold because of [economic] uncertainty,” she told CNBC’s Steve Liesman, who was moderating a panel session. Yellen said those investments in consideration could include things like upgrades to a retailer’s supply chain. “The trade tensions, I think, really concern businesses … in terms of what the future holds in store,” Yellen added. “I think if [the government shutdown] continues, it could impact consumer
Some retailers put plans on hold amid economic uncertainty, Yellen says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-14  Authors: lauren thomas, getty images
Keywords: news, cnbc, companies, retailers, amid, hold, trade, yellen, told, sales, macys, terms, consumer, things, uncertainty, think, plans, economic


Some retailers put plans on hold amid economic uncertainty, Yellen says

Retailers are increasingly cautious heading into 2019, with fears of cooling global growth and a market sell-off top of mind, Janet Yellen, former chair of the Federal Reserve, said Monday, during the National Retail Federation’s annual Big Show in New York.

“We are hearing anecdotal reports about businesses beginning to put investment plans on hold because of [economic] uncertainty,” she told CNBC’s Steve Liesman, who was moderating a panel session. Yellen said those investments in consideration could include things like upgrades to a retailer’s supply chain.

“The trade tensions, I think, really concern businesses … in terms of what the future holds in store,” Yellen added.

Her comments came on the heels of a handful of major retailers including Macy’s and Kohl’s reporting somewhat disappointing holiday sales last week. Macy’s stock had its worst day ever last Thursday, falling nearly 18 percent, when CEO Jeff Gennette said traffic at Macy’s stores and online “weakened” in mid-December and didn’t bounce back until close to Christmas. Analysts and investors had been expecting retailers to come out with more upbeat holiday sales, considering how strong consumer confidence has been in the U.S.

Now, headed into 2019, the fear is any momentum retailers had in 2018 is starting to fade. The driving narrative for much of 2018 was that with unemployment at record lows, consumers were more willing to open up their wallets and shop. Companies ranging from luxury brands to discount retailers reaped the benefits of that.

But now, the U.S. government has now been partially shut down for 24 days, the longest in history. President Donald Trump also launched a high-stakes trade war against China last year, keeping many retailers on their toes, as they don’t know what additional tariffs could be implemented next, if any.

“I think if [the government shutdown] continues, it could impact consumer psychology and consumer sentiment,” Yellen said Monday. But, she added, she doesn’t think there will be “disruption” so long as it ends “quickly.”

Also speaking at the NRF’s Big Show on Sunday, Kroger CEO Rodney McMullen told CNBC’s Sara Eisen, “From a customer standpoint … they feel incredibly good about the economy, but very nervous about where are things headed.”

“So, if you talk about things in the present, incredibly complimentary and excited,” McMullen said. “If you change the question a little bit in terms of, ‘Where do you think things are going?’ … a lot more uncertainty.”

Still, according to Yellen, “the fundamentals underlying consumer spending look excellent.” She said, “All the hard data we have on economic activity suggests things are in good shape.”


Company: cnbc, Activity: cnbc, Date: 2019-01-14  Authors: lauren thomas, getty images
Keywords: news, cnbc, companies, retailers, amid, hold, trade, yellen, told, sales, macys, terms, consumer, things, uncertainty, think, plans, economic


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Recession threat has retailers thinking twice about big decisions

Businesses are waiting for economic data and holiday-quarter earnings to come out before they make decisions on how much and where to invest. It’s going to be “very hard for businesses to keep expanding,” she added, saying retailers are increasingly having a harder time finding labor. NRF chief economist Jack Kleinhenz said it normally takes 15 to 18 days then, after the shutdown has ended, to get retail sales data. The National Retail Federation had been predicting retail sales would be up at l


Businesses are waiting for economic data and holiday-quarter earnings to come out before they make decisions on how much and where to invest. It’s going to be “very hard for businesses to keep expanding,” she added, saying retailers are increasingly having a harder time finding labor. NRF chief economist Jack Kleinhenz said it normally takes 15 to 18 days then, after the shutdown has ended, to get retail sales data. The National Retail Federation had been predicting retail sales would be up at l
Recession threat has retailers thinking twice about big decisions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-14  Authors: lauren thomas, andrew harrer, bloomberg, getty images
Keywords: news, cnbc, companies, retailers, thinking, decisions, retail, sales, earnings, consumer, waiting, come, threat, big, businesses, holiday, recession, twice


Recession threat has retailers thinking twice about big decisions

What does the U.S. economy have in store for retailers in 2019?

For many, it looks to be a waiting game.

Businesses are waiting for economic data and holiday-quarter earnings to come out before they make decisions on how much and where to invest. They’re waiting to see if the economy is slipping into a recession. Waiting to see if global trade tensions rise or ease. And waiting to see if consumers pull back on discretionary spending should their tax refunds shrink. And while these companies wait, some are seemingly holding off on big investments.

There’s a 50 percent chance, at least, the U.S. heads into a recession in 2019, KPMG principal and chief economist Constance Hunter said during a panel with members of the media during the National Retail Federation’s Big Show in New York on Monday.

It’s going to be “very hard for businesses to keep expanding,” she added, saying retailers are increasingly having a harder time finding labor. And that’s just one of their challenges today.

Hunter’s comments echoed those of Janet Yellen, who said Monday morning at the Big Show that she has anecdotal evidence that businesses are starting to hold off on investment plans because of economic uncertainty. That could mean a retailer is waiting to upgrade its logistics, for example.

On the heels of Macy’s coming out with disappointing holiday sales last week ahead of its fourth-quarter earnings report, Hunter also said she expects this upcoming earnings season “will come in more surprising to the downside” than analysts have been predicting.

Nonetheless, it might take a while for analysts and companies alike to know exactly how the industry has been performing − for better or for worse − over the past few weeks, which includes the all-important holiday shopping season.

The government’s report on December retail sales was expected to come out on Wednesday and will now be delayed because of the federal government shutdown, which is now the longest in history.

NRF chief economist Jack Kleinhenz said it normally takes 15 to 18 days then, after the shutdown has ended, to get retail sales data. That’s going to delay organizations like NRF in making their own sales predictions. “Businesses are just waiting to see,” he said.

The National Retail Federation had been predicting retail sales would be up at least 4.5 percent in 2018, and between 4.3 and 4.8 percent during the holiday season.

Meanwhile, some retailers at NRF are still showing confidence in their ability to perform, even in the midst of so much uncertainty.

Target CEO Brian Cornell had said last year, ahead of the holiday season, that the consumer environment was the strongest he’d seen in his career. He didn’t move much from that messaging on Monday morning.

“I think we can all agree, 2018 was a really good year for retail,” Cornell said during a panel session at NRF’s Big Show. “Consumer confidence is still quite high. … The average consumer, they are looking at gas prices that have continued to decline.”

“Will that continue forever? Probably not,” he cautioned.


Company: cnbc, Activity: cnbc, Date: 2019-01-14  Authors: lauren thomas, andrew harrer, bloomberg, getty images
Keywords: news, cnbc, companies, retailers, thinking, decisions, retail, sales, earnings, consumer, waiting, come, threat, big, businesses, holiday, recession, twice


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Retailers are slashing iPhone prices across China as consumers say the phones aren’t worth the cost

Apple’s latest iPhone models are facing huge discounts in China as retailers try to sell the struggling devices. That comes as the top-of-the-line Apple smartphones have posted poor China sales on what experts say are too-high prices for the world’s largest smartphone market and a lack of innovative features compared to local competitors like Huawei. Other third-party sellers on the site had the devices for even cheaper, offering flash sales to try to unload iPhones. Sunion, an Apple re-seller,


Apple’s latest iPhone models are facing huge discounts in China as retailers try to sell the struggling devices. That comes as the top-of-the-line Apple smartphones have posted poor China sales on what experts say are too-high prices for the world’s largest smartphone market and a lack of innovative features compared to local competitors like Huawei. Other third-party sellers on the site had the devices for even cheaper, offering flash sales to try to unload iPhones. Sunion, an Apple re-seller,
Retailers are slashing iPhone prices across China as consumers say the phones aren’t worth the cost Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-11  Authors: arjun kharpal, visual china group, getty images, marlene awaad, bloomberg, chinafotopress
Keywords: news, cnbc, companies, site, china, phones, xr, sales, version, prices, worth, iphone, sell, slashing, consumers, yuan, market, cost, apple, say, retailers


Retailers are slashing iPhone prices across China as consumers say the phones aren't worth the cost

Apple’s latest iPhone models are facing huge discounts in China as retailers try to sell the struggling devices.

That comes as the top-of-the-line Apple smartphones have posted poor China sales on what experts say are too-high prices for the world’s largest smartphone market and a lack of innovative features compared to local competitors like Huawei. The technology giant itself acknowledged earlier this month that unexpectedly low sales in the Chinese market would likely lead to worse-than-anticipated first quarter revenues.

One of the most recent iPhone cost cuts in the country came from Suning, a large Chinese retailer, which changed the price of the 128GB version of the iPhone XR from 6,999 yuan ($1,036) to 5,799 yuan ($858) — a 1,200 yuan ($178) discount.

Other third-party sellers on the site had the devices for even cheaper, offering flash sales to try to unload iPhones. One seller had a 256GB version of the iPhone XS Max, Apple’s most premium device, for 9,699 yuan ($1,436), way below the U.S. firm’s official selling price of 10,999 yuan ($1,628) for that smartphone.

Still, that remains more expensive than in the U.S., where the same phone would sell for $1,249, according to the Apple website.

And that’s just on one site. Other retailers in China are also putting their iPhones on sale. Sunion, an Apple re-seller, was advertising 700 yuan off for both the 128GB and 256GB versions of the iPhone XR. E-commerce site Pinduoduo, which allows third-parties to sell products, also had hefty discounts across all of the latest iPhone models.

Apple’s issues in China are down to two major factors, experts and local consumers say: It got its pricing wrong, and it has failed to introduce features to excite consumers in a forward-thinking technology market. Now, analysts said, competitors have taken market share in the premium smartphone space.


Company: cnbc, Activity: cnbc, Date: 2019-01-11  Authors: arjun kharpal, visual china group, getty images, marlene awaad, bloomberg, chinafotopress
Keywords: news, cnbc, companies, site, china, phones, xr, sales, version, prices, worth, iphone, sell, slashing, consumers, yuan, market, cost, apple, say, retailers


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Cramer Remix: Retailers are facing a new, harsher reality

Wall Street’s recent distaste with the retail sector is evidence that the economic layout is changing for public retail companies, CNBC’s Jim Cramer said Thursday as the group slid on holiday sales disappointments. “Going forward, you need to understand that not all retailers are created equal anymore, and that [SPDR S&P Retail] ETF doesn’t work. And when you’re a mall-based chain, Wall Street has no patience for anything disappointing.” “When you look at the pockets of strength and weakness, it


Wall Street’s recent distaste with the retail sector is evidence that the economic layout is changing for public retail companies, CNBC’s Jim Cramer said Thursday as the group slid on holiday sales disappointments. “Going forward, you need to understand that not all retailers are created equal anymore, and that [SPDR S&P Retail] ETF doesn’t work. And when you’re a mall-based chain, Wall Street has no patience for anything disappointing.” “When you look at the pockets of strength and weakness, it
Cramer Remix: Retailers are facing a new, harsher reality Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-10  Authors: elizabeth gurdus, brendan mcdermid, samyukta lakshmi, bloomberg, getty images, david paul morris
Keywords: news, cnbc, companies, youre, sales, reality, work, wall, harsher, facing, potential, cramer, macys, remix, stocks, retail, retailers


Cramer Remix: Retailers are facing a new, harsher reality

Wall Street’s recent distaste with the retail sector is evidence that the economic layout is changing for public retail companies, CNBC’s Jim Cramer said Thursday as the group slid on holiday sales disappointments.

“Welcome to the new economy,” Cramer said. “Going forward, you need to understand that not all retailers are created equal anymore, and that [SPDR S&P Retail] ETF doesn’t work. And when you’re a mall-based chain, Wall Street has no patience for anything disappointing.”

The “Mad Money” host spoke on the heels of a difficult few weeks for some storied U.S. retailers: Sears has been teetering on the brink of liquidation, J.C. Penney announced more store closures and Macy’s caught a downgrade from Bank of America analysts Thursday after missing holiday sales expectations.

“When you look at the pockets of strength and weakness, it leads you to a simple conclusion,” Cramer said. “If you’re a mall-based retailer offering relatively full-price goods — like Macy’s — and you don’t have a phenomenal online business, your stock is getting hammered, often much worse than the actual company is being hammered.”

Still, Cramer argued that while stocks including Macy’s, Kohl’s and Target have cratered, they currently “reflect the potential negatives fully, and none of the potential positives.”

“I think all three can safely be bought at this point as value plays,” he said, adding that “they may work better as trades than investments because their stocks are very oversold.”


Company: cnbc, Activity: cnbc, Date: 2019-01-10  Authors: elizabeth gurdus, brendan mcdermid, samyukta lakshmi, bloomberg, getty images, david paul morris
Keywords: news, cnbc, companies, youre, sales, reality, work, wall, harsher, facing, potential, cramer, macys, remix, stocks, retail, retailers


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Finding a fix for retail’s trillion-dollar problem: Returns

As online sales boom, there’s an inevitable side effect: More merchandise is getting returned, boosting costs and complexity for retailers. These companies say higher rates of online shopping and more lax return policies are factors contributing to the rise of returns. Average return rates vary by category, but clothing and shoes bought online typically have the highest rates with 30 to 40 percent returned. Eric Moriarty, vice president of B-Stock Solutions, a liquidation marketplace said as e-c


As online sales boom, there’s an inevitable side effect: More merchandise is getting returned, boosting costs and complexity for retailers. These companies say higher rates of online shopping and more lax return policies are factors contributing to the rise of returns. Average return rates vary by category, but clothing and shoes bought online typically have the highest rates with 30 to 40 percent returned. Eric Moriarty, vice president of B-Stock Solutions, a liquidation marketplace said as e-c
Finding a fix for retail’s trillion-dollar problem: Returns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-10  Authors: courtney reagan, amanda lasky
Keywords: news, cnbc, companies, trilliondollar, try, online, fix, returned, return, billion, returns, finding, rates, sales, retails, problem, sobie, retailers


Finding a fix for retail's trillion-dollar problem: Returns

As online sales boom, there’s an inevitable side effect: More merchandise is getting returned, boosting costs and complexity for retailers.

The shift can be staggering.

“Shoppers return 5 to 10 percent of what they purchase in store but 15 to 40 percent of what they buy online,” David Sobie, co-founder and CEO of Happy Returns told CNBC.

Not being able to see an item in person accounts for part of the difference, but consumers also shop differently online than in-store, Sobie said. They may order multiple sizes or colors to try on at home, and then ship or take back what they don’t want, with shipping paid for by the retailer, both ways in some cases.

With costs mounting, understanding why shoppers return items and dealing with the logistics is a key issue that retailers are only beginning to tackle. A number of new businesses are sprouting up to try and wrangle the problem for retailers. These companies say higher rates of online shopping and more lax return policies are factors contributing to the rise of returns. However, there are more options for what to do with the returns, which can help to keep tons of unwanted items out of landfills and save retailers’ profit margins.

Average return rates vary by category, but clothing and shoes bought online typically have the highest rates with 30 to 40 percent returned.

Eric Moriarty, vice president of B-Stock Solutions, a liquidation marketplace said as e-commerce becomes a bigger percentage of retail sales, more returns will be coming back.

“In 2018, it will be somewhere in the area of $400 billion worth of inventory … with $90 [billion] to $95 billion returned post-holiday,” he said.

In the next several years, as e-commerce grows globally, “the amount of returns is going to be over a trillion dollars a year,” Tobin Moore, CEO and co-founder of reverse logistics technology company Optoro, said.


Company: cnbc, Activity: cnbc, Date: 2019-01-10  Authors: courtney reagan, amanda lasky
Keywords: news, cnbc, companies, trilliondollar, try, online, fix, returned, return, billion, returns, finding, rates, sales, retails, problem, sobie, retailers


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Sears was the Amazon of its day, now Jeff Bezos’ behemoth reigns

As bankrupt Sears Holdings inches toward liquidation, Amazon on Monday became the most valuable public company in the world, surpassing Microsoft. Many people consider Sears to have been the Amazon of its day. In many ways, Sears set the bar for retailers such as Walmart and Target to follow. And it’s those companies, including Amazon, that ultimately sped Sears’ demise. Sears shares hit an all-time high of $195.18 in April 2007, when Amazon’s stock was hovering around just $60.


As bankrupt Sears Holdings inches toward liquidation, Amazon on Monday became the most valuable public company in the world, surpassing Microsoft. Many people consider Sears to have been the Amazon of its day. In many ways, Sears set the bar for retailers such as Walmart and Target to follow. And it’s those companies, including Amazon, that ultimately sped Sears’ demise. Sears shares hit an all-time high of $195.18 in April 2007, when Amazon’s stock was hovering around just $60.
Sears was the Amazon of its day, now Jeff Bezos’ behemoth reigns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-09  Authors: lauren thomas, getty images, becky quick, scott olson
Keywords: news, cnbc, companies, bezos, websites, amazons, behemoth, world, sears, jeff, amazon, stores, reigns, day, company, ways, retailers, walmart


Sears was the Amazon of its day, now Jeff Bezos' behemoth reigns

As bankrupt Sears Holdings inches toward liquidation, Amazon on Monday became the most valuable public company in the world, surpassing Microsoft.

Many people consider Sears to have been the Amazon of its day. It was the so-called everything store. Shoppers could order items through Sears’ print catalogs and later pick them up in stores, a service that many retailers are just now starting to incorporate with their websites today. In many ways, Sears set the bar for retailers such as Walmart and Target to follow. And it’s those companies, including Amazon, that ultimately sped Sears’ demise.

Sears shares hit an all-time high of $195.18 in April 2007, when Amazon’s stock was hovering around just $60. Over the years, Sears’ market cap has tumbled from roughly $30 billion to under $100 million, as the company has struggled with sales declines and failed to invest in its stores. Meantime, Amazon’s growth has accelerated as its online business has flourished.


Company: cnbc, Activity: cnbc, Date: 2019-01-09  Authors: lauren thomas, getty images, becky quick, scott olson
Keywords: news, cnbc, companies, bezos, websites, amazons, behemoth, world, sears, jeff, amazon, stores, reigns, day, company, ways, retailers, walmart


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Target reports holiday same-store sales growth of 5.7%, maintains 2018 outlook

Target added it remains on track to report digital sales growth of more than 25 percent in 2018, which would make it the fifth consecutive year it’s been able to do so. Target is still expecting same-store sales growth of roughly 5 percent during the fourth quarter, and adjusted earnings per share for fiscal 2018 of between $5.30 and $5.50. Analysts who cover the company have been calling for fourth-quarter same-store sales growth of 5.1 percent, and full-year earnings of $5.39 per share, accord


Target added it remains on track to report digital sales growth of more than 25 percent in 2018, which would make it the fifth consecutive year it’s been able to do so. Target is still expecting same-store sales growth of roughly 5 percent during the fourth quarter, and adjusted earnings per share for fiscal 2018 of between $5.30 and $5.50. Analysts who cover the company have been calling for fourth-quarter same-store sales growth of 5.1 percent, and full-year earnings of $5.39 per share, accord
Target reports holiday same-store sales growth of 5.7%, maintains 2018 outlook Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-09  Authors: lauren thomas, courtney reagan, kamil krzaczynski
Keywords: news, cnbc, companies, past, target, sales, reports, retailers, growth, holiday, samestore, 57, stores, maintains, analysts, cornell, online, outlook, 2018


Target reports holiday same-store sales growth of 5.7%, maintains 2018 outlook

Target saw a surge of shoppers head to its stores and website this past holiday season, a sign that its investments in store remodels and delivery services are paying off, and an early sign that consumers across the U.S. spent more on gifts this year.

The retailer said in a Thursday press release that sales at its stores and website operating for at least 12 months climbed 5.7 percent this past holiday season. That’s compared with growth of 3.4 percent a year ago and surpassing some analysts’ expectations. Target shares were last falling around 1 percent after climbing more than 1 percent in pre-market trading on the news.

Based on Thursday’s results, Target said it’s maintaining its profit outlook for the fourth quarter and fiscal 2018. It also announced the retirement of CFO Cathy Smith, in addition to a handful of other management changes.

Overall, CEO Brian Cornell said he’s “very pleased” with Target’s performance during this past November and December, both in stores and online. The company said it managed to attract more shoppers who also spent slightly more per visit. Some of its strongest sales were in the baby and toy categories.

“In 2019, we expect to build on this momentum … and deliver profitable growth throughout the year,” Cornell said in a statement.

Target said digital sales were up 29 percent during the holidays, thanks to the retailer offering more delivery options like buy online pick up in store. It said the amount of online orders fulfilled through either in-store pick up or a curbside pick up services was up 60 percent from a year ago and accounted for roughly 25 percent of online sales during this past November and December. Target added it remains on track to report digital sales growth of more than 25 percent in 2018, which would make it the fifth consecutive year it’s been able to do so.

Target is still expecting same-store sales growth of roughly 5 percent during the fourth quarter, and adjusted earnings per share for fiscal 2018 of between $5.30 and $5.50. Analysts who cover the company have been calling for fourth-quarter same-store sales growth of 5.1 percent, and full-year earnings of $5.39 per share, according to a survey by Refinitiv.

Should Target meet its same-store sales expectations for the fourth quarter, the company said that will make 2018 its strongest year for sales growth since 2005.

Last November, Cornell told analysts there was “no sign” consumer spending was cooling off heading into the holidays. That was after he said the consumer environment in the U.S. was in best shape he’d seen in his career, helping fuel Target’s growth.

Target’s latest investments — like remodeling bigger stores, opening up smaller-format shops in certain cities and adding more in-house brands — “are helping it compete with the likes of Walmart in terms of prices, the department stores in terms of merchandising, and Amazon in terms of delivery,” Telsey Advisory Group analyst Joseph Feldman said in a note to clients ahead of Thursday’s press release.

Feldman was expecting Target’s same-store sales would be up 5 percent during the holidays. Like many retailers, he said Target should have benefited from a longer shopping season — more days in between Thanksgiving and Christmas — and the demise of retailers like Toys R Us and Sears.

Aside from J.C. Penney, which earlier this week reported a decline in holiday same-store sales, Target is one of the first major U.S. retailers to offer analysts and investors a better look at its performance over the past few weeks.

Wholesaler Costco said Wednesday that sales — excluding gasoline and currency fluctuations — were up 7 percent during the five weeks ended Jan. 6. Its e-commerce sales climbed nearly 24 percent.

In addition to Smith’s departure as Target CFO, which is expected to happen once a successor is named, Target said its HR chief, Stephanie Lundquist, will take a new role as president of food and beverage. She will be reporting directly to Cornell. Melissa Kremer will be taking over Lundquist’s HR role.

As of market close on Wednesday, Target shares are up about 6 percent so far this year, bringing the retailer’s market cap to roughly $36.7 billion.


Company: cnbc, Activity: cnbc, Date: 2019-01-09  Authors: lauren thomas, courtney reagan, kamil krzaczynski
Keywords: news, cnbc, companies, past, target, sales, reports, retailers, growth, holiday, samestore, 57, stores, maintains, analysts, cornell, online, outlook, 2018


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