STORES Magazine - June 2008 - (Page 18)

trEnDS 10 THINGS YOU MAY HAVE MISSED close 120 stores. The national housing slump and credit crunch “overwhelmed the operating and merchandising improvements we have made over the past two years,” says executive chairman Robert DiNicola. Turnaround specialist Michael Gries was named interim CEO. Cutting back … Starbucks will reduce store openings over the next four years while at the same time stepping back from its music and entertainment ventures. This comes as the Seattlebased coffee purveyor reported a decline of 28 percent in secondquarter earnings. Starbucks, which opened 1,800 stores in 2007 and had originally planned to open 1,600 this year, now says it will open no more than 1,020 units in 2008 and, at least in the United States, will limit new-store openings to 400 annually from 2009 to 2011. Medicare Part D. CVS, Walgreens, Rite Aid, Longs, Duane Reade and Kerr are among the retailers displaying notices telling patients that doctors can e-mail prescriptions rather than use old fashioned pads or faxes. Only about 6 percent of physicians currently e-prescribe, according to provider SureScripts. Tempered magic … Walt Disney regained ownership of some 220 Disney Stores and also obtained the right to close another 98 poorly performing stores without having to take responsibility for their leases. Hoop Retail Stores, the bankrupt subsidiary of The Children’s Place Stores, had been operating Disney Stores in North America since acquiring them in November 2004. James D. Fielding was named president of Disney Stores Worldwide, which also Compiled by David P. Schulz 8 Arby’s gobbles up Wendy’s … It was two years in the making, but Triarc, parent of the Arby’s restaurant chain, closed a deal to purchase Wendy’s International for $2.35 billion. The man who made it happen is Nelson Peltz, owner of Atlanta-based Triarc and an investor in Wendy’s. Triarc’s offer trumped a competing bid made by a group that included some Wendy’s employees and franchisees. 1 4 6 Courts 1, consumers 0 … Costco won’t be able to offer consumers any great bargains on wine and beer after a federal court in San Francisco said it would not rehear a case involving the validity of Washington State’s Prohibition-era laws. Costco argued that the statutes were anti-competitive because they dictated automatic price markups and prohibited delivery of wine and beer to a warehouse. The decision upheld an appeals court ruling in January denying Costco’s challenge. Which way is the wind blowing? The country’s two dominant home improvement retailers are moving in opposite directions on expansion. With consumer spending slowing, Home Depot will close 15 stores and scale back 2008 new openings from 86 to 36 units. Meanwhile, rival Lowe’s says it is in the midst of opening 120 new units this year and will continue to grow store count at a rate of about 8 percent a year. 9 2 Tempest in a handbag … Violation of academic freedom is being alleged after leather goods maker and retailer Coach paid for a college course designed by the public relations firm for the International Anti-Counterfeiting Coalition. Faculty members at Hunter College, a branch of the City University of New York, say creation of the course was not guided by “scholarly wisdom” but by commercial and financial considerations. Coach is a member of the IACC; company CEO Lew Frankfort is a Hunter College alumnus. e-Rx … Pharmacies, including major drug store chains, have launched a campaign to raise public awareness of electronic prescriptions, which will become mandatory January 1 for scripts covered under 5 includes 107 units in Europe and joint-venture locations in Japan. New menu numbers … Calorie counts of food items must be posted in chain restaurant locations in New York City, at least until the Food and Drug Administration weighs in on the issue, a federal appeals court has ruled. Restaurateurs fought the calorie-posting regulation that applies only to chains operating at least 15 locations in the United States. No fines will be imposed for non-compliance before July 18 to allow for further legal challenges. 7 Curtains Linens ’n Things has lost a long battle against insolvency, filing a Chapter 11 petition for bankruptcy protection. The Clifton, N.J.-based housewares and home goods retailer plans to 3 A new source … NRDC Equity Partners is wasting no time in exploiting synergies between Lord & Taylor department stores and its recent acquisition of Fortunoff. First came the conversions of jewelry departments from licensed operations to Fortunoff offerings. Next will be a rollout of Fortunoff bridal registry shops to all 48 Lord & Taylor stores. The new store-within-a-store units will range from 3,000 to 20,000 sq. ft. and feature a variety of housewares and home goods. 10 18 STORES / JUNE 2008 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - June 2008

STORES Magazine - June 2008 Contents Executive Editor's Page President's Page Tesco Tests Carbon Labels What Shoppers Think 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Cover Story: Boom - or Bust Green Retailing Concept2Watch Online Marketing Building Traffic Water Management Branding Digital Marketing Loyalty Programs Special Report: Taking on Teens Supply Chain - Robo Crop Human Resources Supply Chain - Directory Assistance Loeb Retail Letter Arts Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - June 2008

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