Assailed by the relentless and merciless rise of e-commerce, brick-and-mortar retailers are struggling to adapt to an increasingly online world. Will this retail destruction continue in the year ahead? And what are the major retail trends that investors should watch? Read on to find out.
Category: Retail
Here’s Why Cabela’s Incorporated Stock Climbed 26% in 2016
The $5.5 billion purchase agreement not only came with a hefty premium for shareholders, it brought an end to the uncertainty many Cabela’s shareholders had been facing about the future of the brand. It’s not exactly that the company was struggling, but it had to compete with a major rival in Bass Pro Shops while also dealing with the shift of many consumers to buying online.
Macy’s Last Line of Defense: Everyone Else at the Mall
Macy’s has been reporting comp-sales declines for two full years. Recently, rumors have been swirling that management may be ready to throw in the towel and sell the company .
Sears, Kmart Drop 31 Trump Home Items From Their Online Shops
Major U.S. retailers Sears and Kmart this week removed 31 Trump Home items from their online product offerings to focus on more profitable items, a spokesman said on Saturday. The decision follows retailer Nordstrom Inc’s announcement this week it had decided to stop carrying Ivanka Trump’s apparel because of declining sales, prompting President Donald Trump to take to Twitter to defend his daughter.
Why Sears Holdings, Infinera, and Ellie Mae Jumped Today
Friday provided another strong finish to a positive week for the stock market, as major market benchmarks once again found themselves at unprecedented heights. The Dow finished with gains of almost 100 points, and the S&P 500 and Nasdaq Composite joined the Dow in record territory.
Susquehanna Sees a Chance to Sell Sears at a Profit
Man, I mean, I thought this company was in trouble 10 years ago , when its stock was trading north of $135 a share. But the bad news just never seems to stop at Sears.
Sears Says to Cut $1B in Costs, Shares Surge
Beleaguered retailer Sears Holdings Corp said on Friday it would cut costs by $1 billion and reduce debt and pension obligations by at least $1.5 billion this year, sending its shares soaring as much as 40 percent. The company also said it had sold five Sears full-line stores and two Auto Centers for $72.5 million in January, and had engaged Eastdil Secured to raise at least $1 billion from the sale of its real estate.
Sears Shares Explode More Than 50% Because Retailer Thinks It Can Stay Alive
With its stock hovering near an all-time low and credit default swaps pricing in the potential for a bankruptcy filing this year, Sears Holdings CEO Eddie Lampert decided to take action. To the extent Sears’ latest tactics are just smoke and mirrors designed to stop the bear raid on its stock, however, is the big question.
Trump’s Tweets Don’t Have Much Effect on Stock Market
Donald Trump’s tweet knocking Nordstrom coincided with the company’s stock’s best and most-traded day of the year. President Trump tweeted about two companies on Wednesday — one praising Intel , another knocking Nordstrom .
Nordstrom Shares Rally for Second Day as Trump Aide Makes Potential Ethics Misstep
Nordstrom shares continue to rally on Thursday as one of Trump’s top aides raises eyebrows by urging Americans to buy the Ivanka Trump line Nordstrom just dropped. Nordstrom shares rallied on Thursday for a second day as one of his top aides may have violated ethics laws by urging Americans to buy the Ivanka Trump line it just dropped.
CVS Falls Despite Positive Fourth-Quarter Earnings
CVS Health shares were falling Thursday despite the company beating the analyst consensus estimate on fourth-quarter earnings. However, CVS missed on revenue.
These Major Mall Anchors Are Getting Trumped by Amazon.com
Mall anchors Dillard’s , J.C. Penney , Nordstrom and Macy’s immediately traded higher after Donald Trump’s election win on Nov. 8. Meanwhile, Amazon.com traded lower. Between Nov. 14 and Dec. 8, these trends reversed big time.
Trump vs Nordstrom: The latest bout raising ethical concerns
In this May 13, 2016 file photo, the Nordstrom logo is displayed above the post where it trades on the floor of the New York Stock Exchange in New York. Nordstrom shares sunk after President Trump tweeted that the department store chain had … treated his daughter Ivanka “so unfairly” when it announced last week that it would stop selling Ivanka Trump’s clothing and accessory line.
Why Sears Holdings Corp. Fell 25% in January
The storied retailer is running out of shareholder confidence. January started with Sears taking out loans from a hedge fund managed by Eddie Lampert, the company’s own chairman and CEO.
Warning Signs Mount on Sears’s Path
The struggling retailer bought some breathing room through moves to raise more than $1.5 billion in recent weeks, but investors are growing increasingly doubtful that Sears will ever get back on track. The cost of insuring the retailer’s bonds hit new highs and its stock price continues to tumble falling 5% Monday to close at $6.52, an all-time low, signaling fresh concerns about the retailer’s future Sparking the latest bout of investor anxiety were downgrades of Sears’s debt last month by Fitch Ratings and Moody’s Investors Service that were prompted by the retailer’s dismal holiday sales and continued losses.
Gap Stock Rises on Report of January Sales Growth
Shares of Gap are rising in after-hours trading on Monday after the retailer reported that same-store and net sales increased in January and in its fourth quarter. The Gap stock is rising nearly 3% to $23.63 a share in after-hours trading on Monday after the San Francisco-based company reported that its 2016 fourth quarter and January sales were up after a dismal holiday season for retailers.
Tiffany Stock Downgraded To Neutral From Buy At Mizuho After Abrupt CEO Departure
Tiffany & Co. shares were downgraded to neutral from buy at Mizuho Monday, after the company surprised investors with the news that Chief Executive Frederic Cumenal was stepping down with immediate effect.
Dollar General says it will add 10,000 jobs this year
Dollar General Corp. says it plans to create 10,000 jobs this year tied to the opening of 1,000 stores and two distribution centers. The discount retailer says the new jobs will increase its workforce by about 9 percent.
Fumbling Retail CEOs Should Now Be Very Scared
Amid poor holiday seasons, lagging stock prices and angst about the long-term impact of the shift toward digital shopping, it appears retail CEOs are now on a very short leash. said Sunday that CEO Frederic Cumenal will step down effective immediately after less than two years on the job.
Why Shares of SuperValu Inc. Plunged 10% in January
Fiscal third quarter revenue fell slightly to $3.0 billion, and the company swung from net income of $34 million a year ago to a loss of $26 million. This continues the long deterioration of SuperValu’s business.
Tiffany & Co. CEO resigns amid company’s financial concerns
The New York-based retailer announced Sunday that Frederic Cumenal’s departure is effective immediately and the search has begun for a successor. Cumenal joined Tiffany in 2011 and was named its chief executive officer in April 2015.
A Macy’s, Inc. Fire Sale Would Be Bad for Investors
CEO Terry Lundgren has been trying to rally his employees with the slogan, “A setback is a setup for a comeback.” However, despite having led a remarkable comeback at Macy’s after the Great Recession, Lundgren may be losing confidence in Macy’s ability to recover from its recent declines in sales and earnings.
10 Highest Dividend-Yielding Stocks
Many investors are naturally drawn to stocks that offer up a high dividend yield. However, a high yield can often indicate that a company is in trouble.
Trump CEO Brain Trust Huddles as Corporate America Splits
President Donald Trump has needled Mary Barra at General Motors Co. He’s troubled Doug McMillon at Wal-Mart Stores Inc. and gone after Boeing Co., once headed by Jim McNerney.
Nordstrom Said to Wind Down Ivanka Trump Brand Partnership
Nordstrom Inc. is winding down its relationship with the controversial Ivanka Trump brand, according to a person with knowledge of the situation, a move that follows boycott threats and concerns about the first daughter’s conflicts of interest. The department-store chain is reducing the amount of Ivanka Trump merchandise it stocks, though some inventory may remain for now, according to the person, who asked not to be identified because the decision isn’t yet public.
Sears’ sorrows
The 130-year-old company operates one of America’s best-known department store brands, Sears, Roebuck & Company, along with the ubiquitous Kmart chain, and was America’s largest retail company until 1989. But the firm has recently found itself in a crisis as it struggles to turn a profit as Americans increasingly shop online rather than in shopping centres.
Target Slims Down After Less Than Festive Holiday Season
It looks like Target will join the growing list of retailers opting to slim down a bit after a tepid holiday shopping season. Target has canceled Goldfish, an e-commerce start-up launched a year ago, and has killed a prototype for a robot infested store of the future that was scheduled to soon be constructed in Silicon Valley, according to report Wednesday afternoon by Star Tribune .
Wal-Mart dumps its version of Amazon Prime for new path
Wal-Mart is replacing a program that offered free shipping but had an annual fee with one that has a lower free shipping threshold and faster delivery as it hopes to answer Amazon’s powerful Prime membership success. The retailer says it will reduce shipping time to two days on 2 million of its most popular items including essentials like diapers and pet food as well as hot toys and electronics.
Wal-Mart Takes Latest Shot at Amazon
Wal-Mart Stores will offer U.S. shoppers free two-day shipping on a minimum order of $35 starting Tuesday, its latest attempt to compete with rival Amazon.com popular Prime shipping program. Free shipping will replace ‘Shipping Pass’, Wal-Mart’s existing two-day shipping program that charges shoppers an annual membership fee of $49.
Wal-Mart opts for free, faster shipping on necessities
Wal-Mart is replacing a program that offered free shipping but had an annual fee with one that has a lower free shipping threshold and faster delivery as it hopes to answer Amazon’s powerful Prime membership success. The retailer says it will reduce shipping time to two days on 2 million of its most popular essentials like diapers, pet food and cleaning supplies.
Why Rite Aid Corporation Stock Plunged Today
Walgreens Boots Alliance will also be required to divest up to 1,200 Rite Aid stores, as well as other certain additional related assets if required to obtain regulatory approval for the transaction. The final acquisition price will depend on the number of required store divestitures — $7.00 per share if 1,000 or fewer are required, $6.50 per share if 1,200 are required, and a pro-rata adjustment if the number falls between 1,000 and 1,200.
Costco Wholesale Corporation’s Worst Move in 2016
Costco had a decent fiscal 2016, with comparable-store sales up 4% globally and 3% in the United States when the impact of falling gasoline prices is factored out. In addition, net income for the year was roughly the same as 2015, coming in at $2.35 billion, or $5.33 per diluted share, compared to $2.38 billion, or $5.37 per diluted share last year.
Should TrueCar Investors Be Concerned About This Development?
Brick-and-mortar retailers thrive when they capitalize on the impulsive spending of their consumers. When a customer peruses the aisles of Wal-Mart for milk and eggs, but also grabs a box of Russell Stover chocolates from the endcap, Wal-Mart wins.
How to Trade the Week’s Most Active Stocks – Rite Aid, Intel, Starbucks and More
Put down the 10-K filings and the stock screeners. It’s time to take a break from the traditional methods of generating investment ideas.
Why Sears Holdings Corp Tumbled Again Today
As of 2:54 p.m. EST, shares were down 9.7%. The retailer’s stock began dropping on Wednesday after Fitch Ratings issued a foreboding note on the struggling department-store chain.
Will President Trump’s Tax Reform Help Retailers? The Devil Is in the Details
Other department store chains also reported poor results. For the past two years or so, among apparel and home-focused retailers, only off-price merchants such as TJX Companies One of the few potential bright spots for retailers such as Macy’s and Kohl’s is corporate tax reform.
Judge rejects $80M penalty in Wal-Mart truck drivers lawsuit
A federal judge on Wednesday refused to force Wal-Mart to pay $80 million in penalties in a lawsuit alleging the retail giant failed to pay hundreds of truck drivers in California the minimum wage for certain tasks. Wal-Mart acted in good faith when paying the drivers and had reason to believe its payment policy aligned with California law, according to U.S. District Judge Susan Illston in San Francisco.
Why Abercrombie & Fitch Co. Stock Was Cut in Half in 2016
Shares of the fashion retail brand dropped more than 54% throughout the year, according to data provided by S&P Global Market Intelligence , after the company posted multiple quarters of declining same-store sales. It’s estimated to have notched a net loss for the year.
Target to Push Chemical Transparency in Sustainable “Better-For-You” Products Push
Target on Wednesday, Jan. 25, unveiled its new policy on “transparency, proactive chemical management and innovation,” including eliminating PFCs and other chemicals from its products and full disclosure of the chemical ingredients its stores stock. Target’s new chemical strategy is “a first in the retail industry” in that it “addresses our entire value chain, operations and every product we sell,” the company said in a blog post, including both its own branded products and other brands stocked in stores.
American Express: Signs of Life Amidst the Costco Rubble
In January 2015, the stock traded as high as $94. Two years later and the stock price cannot sniff $80, much less its former highs.True, it is well off its lows from last year, but it might be quite a while before it regains its former heights.