StORES Magazine - August 2007 - (Page 18)

UPFRONT 10 THINGS YOU MAY HAVE MISSED on big-box stores aimed at stopping Wal-Mart from building a supercenter in the city. The city council failed to override the veto. the shoe fits…Genesco, which twice spurned buyout offers from Foot Locker, will instead be taken over by Finish Line, the Indianapolis-based specialty retailer of athletic footwear and team-themed apparel. The transaction is worth about $1.5 billion in cash and assumption of debt. Genesco operates footwear chains such as Journeys and Johnston & Murphy, as well as Hat World; Finish Line also owns the Man Alive and Paiva stores. Un-limited…Limited Brands is selling a majority stake in Limited stores to Sun Capital Partners. “We have moved from a portfolio of brands and businesses to an enterprise powered by two world-leading brands: Victoria’s Secret and Bath & Body Works,” noted Leslie Wexner, chairman and CEO of Limited Brands, which earlier sold its Express chain to Golden Gate Capital. The company will take an after-tax loss of about $42 million on the sale of Limited stores, which Wexner founded in 1963. Selective compliance…New York City restaurants are complying with a first-in-the-nation local ban on artificial trans-fats in fried goods and bread spreads, but posting calorie counts on menu boards is another thing altogether. Both were required as of July 1, but quick-service operators such as Yum! Brands, McDonald’s, Burger King, Wendy’s, White Castle and Quiznos are supporting a New York State Restaurant Association lawsuit challenging the requirement. Compiled by David P. Schulz 6 1If After the show, shop…Harpo Studios in Chicago’s West Loop is the forum where myriad guests and studio audiences gather for tapings of the “Oprah Winfrey Show.” Soon, right across the street from the theater, will 4 Option Care, a specialty pharmacy based in Buffalo Grove, Ill. Option Care specializes in medications and services for complex ailments that may include the need for intravenous or other in-home treatment, such as hemophilia, cancer, multiple sclerosis and rheumatoid arthritis. Customer service or Trojan Horse? WalMart plans to open 1,000 MoneyCenters offering check cashing and money transfers in its stores by the end of the year. The retailer will also introduce the Wal-Mart MoneyCard, a reloadable Visa, in conjunction with GE Money and Green Dot. Wal-Mart said it will add value to the lives of customers currently “outside the mainstream banking system,” while critics characterize the effort as “a back door into banking.” 9 Cartoon reality…7Elevens across the country were converted to Kwik-EMarts selling Buzz Cola, Krusty O’s cereal and Squishees. The temporary 7 2 be a 4,500-sq.-ft. store selling Oprah-branded merchandise from beach totes to workout gear, as well as other items with Winfrey’s stamp of approval. There will also be a small café in the location, expected to open this fall. Bidding war…What had been a dispersal sale by Jones Apparel involving Barneys New York has turned into a bidding war between Dubai-based Istithmar and Japan’s Fast Retailing, parent of UNIQLO. Jones, which was unable to sell itself, said in late June it would sell Barneys to Istithmar for about $825 million. Two weeks later, Fast Retailing jumped in with an unsolicited offer of $896 million. Jones acquired Barneys for about $400 million three years ago. Barneys operates seven full-line stores, 14 co-op units and 13 outlet stores. 5 Split decisions…Target lost a ruling in Merced (Calif.) County Court in its attempt to build a SuperTarget in Atwater, Calif., when the judge said its environmental impact statement was not sufficiently detailed. Meanwhile, in San Diego, Mayor Jerry Sanders vetoed a ban 3 makeover coincided with the July 27 release of “The Simpsons Movie.” After that, 7Eleven’s Japanese parent, Seven & I Holdings, plans to spend about $2.4 billion over the next four years to open 1,000 new stores and remodel existing units. The capital spending is made with an eye toward boosting U.S. sales, including fuels, by at least 15 percent. Option play…Walgreens continues to expand its health offering with the $760 million purchase of Paring channels…Pier 1 Imports will close 100 stores, including all Pier 1 Kids and clearance outlets, shut down its e-commerce site and exit the catalog business to focus solely on Pier 1 units in an effort to effect a turnaround. In its most recent fiscal quarter ended June 2, the company’s sales were $356.4 million, down 5.2 percent from the year before, while losses from continuing operations totaled $56.4 million. 10 8 18 STORES / AUGUST 2007 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of StORES Magazine - August 2007

Contents Executive Editor's Page President's Page Upfront NRF News Retail People Concept2Watch Supermarkets Cover Story Online Marketing In-Store Marketing RFID Data Management Payment Systems Software Loss Prevention E-Commerce Risk Management Communications Loyalty Marketing Human Resources Mobile Commerce Loeb Retail Letter Arts Update Point of View Advertising Index Retail Industry Calendar

StORES Magazine - August 2007

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