By Devika Krishna Kumar and Siddharth Cavale
(Reuters) – A resurgence in spending helped by an improving U.S. economy bolstered back to school season sales for retailers in September, but stagnant wages may force more discounting in the coming months, keeping pressure on margins.
September’s results showed surprise growth for apparel retailers as parents and students rushed to malls and stores for the latest fashions as schools began reopening across the country.
(Reuters) – Wal-Mart Stores Inc, the biggest U.S. private sector employer, said on Tuesday that its 1.3 million workers would have to pay more for healthcare and it would end benefits for some part-time staff in a move that could prompt other companies to follow suit.
The world’s largest retailer said it would raise health insurance premiums for its entire U.S. workforce beginning in January. In addition, Wal-Mart will end coverage for employees who work fewer than 30 hours a week, a change that will impact 2 percent of U.S. workers, or about 30,000 people.
Sept 23 (Reuters) – Snow Glow Elsa has a big job ahead of
her – even for a princess with magical powers.
The doll, one of only four toys to feature on three major
guides of top toys for the holiday season, has the task of
reviving Jakks Pacific Inc, which has reported losses
for the last two years and declining revenue since 2009.
(Reuters) – Family Dollar Stores Inc rejected Dollar General Corp’s sweetened takeover bid, saying the offer still did not address antitrust concerns, raising the prospect that the No. 1 U.S. deep discount chain will go “hostile” with its offer.
Dollar General raised its offer for Family Dollar Stores on Tuesday by 2 percent to $9.1 billion, or $80 per share, and said it was willing to sell up to 1,500 stores to clear any antitrust review.
(Reuters) – Target Corp cut its full-year earnings forecast as it offers more discounts to attract cash-strapped customers and win over shoppers unnerved by a massive holiday-season data breach.
The third-largest U.S. retailer, however, said sales and traffic have improved in the past few weeks as the back-to-school season begins.
By Siddharth Cavale and Sruthi Ramakrishnan
(Reuters) – Weak results from the likes of Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research, Stock Buzz) and Macy’s Inc (M.N: Quote, Profile, Research, Stock Buzz) are the latest sign less affluent U.S. consumers are still pinching their pennies and the trend appears to be hurting upmarket retailers as well.
A number of large U.S. retailers who cater to low and middle income consumers reported disappointing quarterly comparable sales this week, pointing to a cutback in spending and a shift in preferences to stores nearer to home.
Aug 14 (Reuters) – Wal-Mart Stores Inc cut its
full-year profit forecast, citing higher employee healthcare
costs and increased investment in its online business, and the
company said heavy discounting was likely to continue into the
holiday shopping season.
As expected, the world’s largest retailer also reported flat
U.S. same-store sales, excluding fuel, for the second quarter -
the sixth quarter of declining or no growth.
(Reuters) – Target Corp (TGT.N: Quote, Profile, Research, Stock Buzz) cut its second-quarter profit estimate as it resorts to price cuts to attract cash-strapped consumers and win back customers unnerved by a huge holiday-season data breach.
The warning on Tuesday showed that new Chief Executive Brian Cornell, who takes over the third-largest U.S. retailer next week, has his work cut out for him.
(Reuters) – Beleaguered retailer Target Corp (TGT.N: Quote, Profile, Research) named former PepsiCo and Wal-Mart executive Brian Cornell as CEO and chairman as it tries to regain customer confidence following a devastating data breach last year that hit earnings.
Cornell, the first outsider to lead Target, has his work cut out. The company’s comparable store sales have declined in three of the last five quarters, while store visits have fallen for six straight quarters.
(Reuters) – Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research, Stock Buzz) replaced its U.S. head Bill Simon with Asia chief Greg Foran as it seeks to restore the fortunes of its largest business after a year of sluggish sales.
A 35-year retail veteran who started out as a teenage part-timer stocking supermarket shelves, Foran is being moved to the United States just two months after becoming the head of Wal-Mart’s Asia business.