Diapers.com, an online retailer under the Quidsi subsidiary of Amazon, now sells more than 30,000 clothing, apparel, and shoe items from 100-plus brands—including Carter’s, Osh Kosh, Tea Collection, and Pink Chicken—for babies and toddlers.  The clothing and shoes homepage of Diapers.com includes a “Find it Fast” box that facilitates the shopping process for parents.

With the category expansion of Diapers.com, Quidisi offers customers 13 product categories, including maternity, party supplies, nursery, and bath and skin care.

Amazon is working towards a tentative July launch for a new front-lit Kindle e-reader, which will be the second e-reader on the market with such a feature.  Barnes & Noble’s Nook Simple Touch with Glowlight was the first to introduce an e-reader giving users the option to read in the dark. 

Amazon is also aiming to release a new Kindle Fire closer to the holiday season later this year.

Best Buy is teaming up with Cooking.com to launch a microsite that will allow customers to purchase cookware and kitchen items. In addition, Best Buy’s regular assortment of appliances will be available.  Best Buy’s new site, kitchen.bestbuy.com,  will be managed by Cooking.com and there will be an additional 3,000 kitchen products for Best Buy online shoppers. 

Best Buy has elected a successor to Richard Schulze, the retailer’s founder, as Chairman of the company, effective at the end of the company's annual meeting on June 21, 2012. Director Hatim Tyabji, who has been Chairman and CEO of global mobile traffic and video management firm Bytemobile, Inc., since 2001, will replace Schulze. Tyabji is also Chairman of Jasper Wireless, Inc., which provides cloud-based management services.

Schulze will become Founder and Chairman Emeritus, an honorary position on the board, and will serve out his term as director through June 2013.

At the same time as this announcement, Best Buy also released the conclusions of its investigation into the personal conduct of former CEO Brian Dunn, who resigned in April. The investigation determined that Dunn violated Best Buy policy by engaging in a close personal relationship with a female employee that negatively impacted the work environment, though no company funds were misused in the process. The investigation also found that the Chairman of the Board at the time failed to notify the audit committee of the Board of Directors when he found out about the allegations in December 2011.

As a result of these findings, Best Buy says it will review and possibly strengthen Best Buy's relevant corporate policies and procedures.

Costco has confirmed plans to open its first Louisiana club and is working toward a mid-2013 opening.

• The building is expected to be 148,000 square feet.
• Costco has been planning this move for over a year now.
• It intends to invest over USD 40 million in the club, which will be located on the site of a former Carrollton Shopping Center near Xavier University.

According to Jeff Brotman, Costco Chairman, "We've seen firsthand the resilience of [New Orleans] residents, and we are excited about contributing to the area's revitalization."

JCPenney reported sales for the three-month period ended April 28, 2012:

• Total Q1 2012 sales decreased 20.1% to USD 3.15 billion compared with USD 3.94 billion reported for the comparable 2011 period. In addition to the impacts of the company’s transformation, sales also were affected by the discontinuation of the company's outlet business.
• Online sales at jcp.com totaled USD 271 million, a 27.9% decrease from the prior year.
• Comparable-store sales (comps) decreased 18.9% vs. an increase of 3.8% last year.
• Operating loss totaled USD 226 million, as compared with an operating income of USD 161 million in Q1 2011.
• Gross margin decreased 290 basis points (bp) to 37.6% of total sales. The decrease was a result of lower than expected sales in the quarter and the impact of taking deeper seasonal markdowns to clear inventory coming out of Q4 2011 as the company transitioned its pricing and promotional strategy.
• Selling General & Administrative Expenses (SG&A) decreased USD 121 million vs. last year as a result of better expense management and additional operational efficiencies.
• Net loss totaled USD 163 million, as compared with a net income of USD 64 million in the prior year.
• Capital expenditure totaled USD 107 million vs. USD 117 million last year.

Home Depot reported net earnings for Q1 were USD 1 billion, compared with net earnings of USD 812 million for the same period last year. Based on a strong first quarter, Home Depot expects sales to be up approximately 4.6% for the year. 

Frank Blake, Chairman and CEO said, “We saw a stronger than expected start to the year, driven by record warm weather and continued demand for core products.”

Home Depot operates 2,254 stores in 50 states, District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, Canada, Mexico, and China. 

Macy’s Launches “Brasil: A Magical Journey” Campaign

 Macy’s launched the “Brasil: A Magical Journey” campaign in select Macy’s stores and online at macys.com on May 16, 2012.

• Brazilian-inspired limited-edition women's and men's apparel, home, and accessories collections from leading designers, including Brazilian designers and offerings from the retailer’s private and exclusive brands, are featured in the program.  Capsule collections include Francisco Costa for Calvin Klein dresses; FALCHI by Falchi handbags and accessories by Carlos Falchi; footwear, accessories and apparel by RACHEL Rachel Roy + Seo Jorge, and swimwear by Brazilian manufacturers Sauipe, Despi, and ANK. Macy’s brands that will feature Brazilian-inspired products include Alfani, Bar III, American Rag, Charter Club, Style & Co., and Tommy Hilfiger.
• Launched in late April 2012, the retailer’s curated store-within-a-store, “O Mercado, the Market at Macy’s,” will feature approximately 100 exclusive apparel, home, beauty, and accessories made in or inspired by Brazil. Macy's will donate 10% of the sale price of every product in the boutique to the land conservation organization, The Nature Conservancy, to protect the Brazilian Amazon rainforest.
• The retailer also is introducing a “Give, Get and Save the Rainforest” special savings pass to raise USD 1 million for The Nature Conservancy. With a USD 3 donation while shopping at Macy’s stores, shoppers will receive a saving pass, redeemable on a day of their choice through June 17, 2012.
• Shoppers with iOS and select Android smartphones will be able to download the free “Brasil: A Magical Journey” application from macys.com/brasilapp. The app will feature augmented reality experiences such as a trip to the Amazon, Carnival, and a soccer game that can be accessed by floor markers in stores.  Using QR codes, Macy’s also is offering fashion videos with expert advices and tips.
• Macy’s kicked off the campaign preview on May 15, 2012, at its flagship store in Herald Square, New York.

On the company’s Q1 2012 earning conference call, Chief Financial Officer of Macy’s, Karen Hoguet, stated that the retailer is equipping its stores to fulfill online orders in situations where a distribution center runs out of a particular item.

• Currently, Macy’s has more than 80 stores that can fulfill orders from other stores or online.
• The retailer expects to have more than 290 store-fulfillment locations by the 2012 holiday season.
• These locations will include expanded storerooms and improved technology for better inventory management.

Nordstrom reported net sales for the first quarter (Q1 2012) ended April 28, 2012, of USD 2.53 billion, an increase of 13.7% as compared with USD 2.23 billion for the comparable Q1 2011 period.

Quarter Results

• Net Sales for multi-channel (Full-line Stores and Direct) increased 10.8% to USD 191 million.
• Net Sales for rack stores increased 19.6% to USD 91 million; while sales in the direct channel increased 44.2%.
• Same-store sales for the group increased 8.5%.
  • Same-store sales for multi-channel (Full-line Stores and Direct) increased 9.3%.
  • Same-store sales for Full-line stores increased 5.6%.
  • Same-store sales for rack stores increased 6.8%.
  • Growth was mainly driven by merchandise categories including handbags, women’s shoes and men’s shoes.
  • South and Midwest regions were the top-performing geographic areas for full-line stores.
• Gross profit as a percentage of sales decreased 31 basis points (bp). The decline was due to enhancements in Fashion Rewards program and reduction in shipping costs.
• Earnings before interest and taxes increased 2.9% to USD 280 million; representing 10.7% of total revenue as compared to 11.7% in the prior year.
• Net income increased 2.8% to USD 149 million as compared to USD 145 million in the prior year.
• Retailer opened five stores and relocated one store during the quarter.

 Outlook for FY 2012

• The retailer expects its same-store sales to increase by 4% to 6% in 2012; low single digit in Q2 2012 and high single digit in Q3 2012.

As of April 28, 2012, Nordstrom operated 231 stores, including 117 full-line stores, 110 Nordstrom Racks, two Jeffrey boutiques, one treasure & bond and one clearance store, in 30 states.

Publix has announced that Gino DiGrazia has been promoted to the role of Vice President (VP) of Finance.  In his new role, DiGrazia will take over many of the responsibilities previously held by Kelly Underhill, director of tax and treasury who retired earlier this year.  DiGrazia will combine these tasks with his current duties with the retailer’s business and reporting (BAR) unit.

Rite Aid category manager Paul Margeson has resigned. Margeson managed the pain care, gastrointestinal, smoking-cessation, and upper respiratory categories. The company intends to fill the position.

Saks reported sales for Q1 2012 ended April 28, 2012, of USD 753.6 million, a 3.8% increase as compared with USD 726 million for Q1 2011.

• Comparable-store sales (comps) increased 4.8%.
  • Strong sales growth was witnessed in women's WEAR NOW and contemporary apparel, dresses, women's shoes, and men's contemporary apparel, shoes, and accessories.
• Operating income increased to USD 64.9 million (8.6% of sales) as compared with USD 60.4 million (8.3% of sales) during the prior year.
• Gross margin increased 30 basis points (bp) to 44.4%.
• Net income totaled USD 32.15 million, compared with net income of USD 28.41 million in the prior year.
• In Q1 2012, net capital expenditure (capex) totaled approximately USD 14.3 million.

Outlook for Fiscal 2012

• Comps growth in the mid-single digit range for both Q2 2012 and H2 2012.
• Capex in the range of USD 110 million to USD 120 million.

As of April 28, 2012, Saks operates 45 Saks Fifth Avenue stores, 61 OFF 5TH stores, and saks.com.

Sam’s Club has partnered with Triad Retail Media to provide pet care information on its website. In addition to launching Pet Central on SamsClub.com, they are partnering with Louise Murray, author of Vet Confidential: An Insider’s Guide to Protecting Your Pet’s Health and head of the ASPCA’s Bergh Memorial Animal Hospital in New York, to drive pet care-related social media content.

According to Triad, Pet Central was developed to provide pet owners with an interactive shopping experience, where they can learn about proper pet care while creating a direct path to purchase and recommending Sam’s Club products. At the same time, members can interact with Murray on a range of topics ranging from puppy training to boarding pets.

“With the new Pet Central, Sam's Club has built one of the most informed base of customers when it comes to pet care, which ultimately helps drive sales online and in-store,” according to Triad CEO Greg Murtagh.

Sears Holdings board of directors has approved plans to partially spin-off its interest in Sears Canada Inc. Sears Holdings currently holds 95% of Sears Canada’s common shares. It plans to distribute its common shares of Sears Canada to holders of its own common stock. Sears Holdings expects to retain 51% of shares for Sears Canada after this distribution.    

The decision, which still must be approved by the SEC, the CSA, and Sears Canada’s board of directors is believed by Sears Holdings to enable both companies to focus on their respective businesses, and enable investors to target their investments more specifically. 

Staples reported that total company sales for the first quarter (Q1 2012) ended April 28, 2012 decreased 1% to USD 6.1 billion. In local currency unit (LCU) sales decreased 0.2%.

• Gross profit decreased 1.6% to USD 1.61 billion.
• Operating income decreased 8.7 % to USD 318.06 million.
• Net income attributed to Staples decreased 5.6 % to USD 187.16 million.

North American Delivery

• Segment sales increased 1.7% to USD 2.56 billion (an increase of 1.9% in LCU). The increase was driven by double-digit sales growth in facilities and breakroom supplies and strong growth in copy, print, and promotional products.
• Business unit income increased 2.1% to USD 200.96 million.

North American Retail

• Segment sales decreased 0.2% to USD 2.32 billion (an increase of 0.3% in LCU).
• Comparable store sales (comps) were flat, mainly due to unchanged average order size and customer traffic.
• Business unit income decreased 5.9% to USD 166.96 million.
• During the period, Staples opened three and closed six stores in the US and opened one and closed one store in Canada.

International Segment

• Segment sales decreased 8% to USD 1.23 billion (a decrease of 5% in LCU). Comps decreased 9% in Europe and weak sales in Australia and Europe.
• Business unit loss increased 297.1% to USD 18.77 million.
• During Q1 2012, Staples opened one store and closed three stores, and operated 376 stores in International Operation.

Outlook for FY 2012

• The retailer expects:
  • Total company sales to grow in low single-digits compared to the prior year.
  • Slow growth in US and a soft demand environment in Europe.
  • To generate more than USD 1 billion of free cash flow during the fiscal.

Tim Lowe, the current President of Shoppers Food & Pharmacy, has been named the Senior Vice President (SVP) of Supervalu’s merchandising organization. Lowe will assist the retailer in enhancing the efficiency and effectiveness of merchandising as well as help drive national programs. He will report to Janel Haugarth, Executive Vice President of merchandising and logistics.

Lowe has been the President of Shoppers Food & Pharmacy since 2010. He will continue to act as the banner President until a successor is named. He first joined Supervalu in 2009 as the SVP of operations at Shoppers Food & Drug.

Supervalu has announced that it will close its 400,000 square foot distribution center in Xenia, Ohio.  The facility currently services stores in Ohio, Kentucky and West Virginia. 

Operations will be consolidated with the retailer’s 640,000 square foot DC in Fort Wayne, Indiana, which currently has excess capacity.  The consolidation is expected to be completed in September 2012.

Target reported sales of USD 15.6 billion, up 6.1% from the prior year, for its Q1 period ended April 28, 2012. Sales growth is attributed to a 5.3% increase in comparable store sales (comps) and the contribution from new stores.

• Comps increased 5.3%, compared to a 2.0% increase in the same quarter the prior year.
• The number of transactions at comparable stores increased 2.0%, while the average basket size increased 3.2%.
• The 3.2% increase in basket size was mainly driven by a 2.6% rise in selling price per unit, as well as a 0.6% slight increase in units per transaction.
• Total revenue increased 5.9% to USD 16.5 billion; credit card revenue dropped (7.1%) to USD 330 million.
• Net earnings increased 1.2% to USD 697 million.
• Retail earnings before interest expense and income taxes (EBIT) increased 12.9% to USD 1.2 billion.
• Gross margin rate decreased 20 basis points (bp) to 30.2% due to downward pressure from PFresh and 5% Rewards, partially offset by a greater proportion of high-margin sales and rate improvements within categories.
• Canadian segment start-up costs resulted in an EBIT loss of USD (55) million. 
• Total REDCard penetration increased to 11.6%, up from 7.6% for the same period last year.  
• Target repurchased 10.5 million shares for USD 604 million.

As of April 28, 2012, Target operated 1,764 stores in 49 states, including 992 PFresh and 251 SuperTarget stores.

Target will partner with four boutiques for the second The Shops at Target flight. The launch will be September 9, 2012. The collection will feature more than 230 exclusive items including:

• Kirna Zabete (New York) – women’s lifestyle and fashion; 100 pieces
• Odin (New York) – men’s lifestyle and fashion; 20 pieces
• The Curiosity Shop (San Francisco) – home furnishings; 60 pieces
• PATCH NYC (Boston) – home furnishings; 50 pieces

TJX reported sales for the 13-week period ended April 28, 2012.

• Consolidated net sales were up 11% to USD 5.8 billion as compared with USD 5.2 billion reported for the comparable Q1 2011 period.
  • Net sales for Marmaxx increased 10.3% to USD 3.9 billion.
  • Net sales for HomeGoods US increased 18.5 % to USD 596 million.
  • Net sales for TJX Canada increased 8.1% to USD 640 million while TJX Europe increased 13.9% to USD 673 million.
• Consolidated Comparable store sales (Comps) increased 8%.
  • Comps for Marmaxx increased 8%.
  • Comps for HomeGoods US increased 9%.
  • Comps for TJX Canada were up 6% while TJX Europe increased 13%.
• Net income totaled USD 419.2 million as compared with USD 266 million in the prior year.
• During Q1 2012, the retailer net store count increased 33 stores, and selling area increased over 4%.

Outlook

• For Q2 2012, TJX expects comps in the range of 2% to 4%; while fiscal 2012 comps will be in the range of 2% to 3%.

As on April 28, 2012, TJX operated 2,905 stores in North America and Europe, including 983 T.J. Maxx, 884 Marshalls, and 374 HomeGoods stores in the United States; while 216 Winners, 86 HomeSense, 6 Marshalls in Canada, and 332 T.K.Maxx, and 24 HomeSense stores in Europe.

On May 21, PetSmart will unveil the new, exclusive Toys R Us Pet Collection in the Toy Chest aisle at PetSmart stores and on PetSmart.com.  PetSmart has worked with Dr. Sophia Yin to provide insights on how toys and play develop healthy and happy pets.

The Toy Chest aisle will feature 100 whimsical Toys R Us Pet items, along within their existing toy offering of over 1,000 toys.  Toys featured will provide play options for the various stages of a dog’s life and feature play patterns, such as chewing, tugging, squeaking, and fetching. 

Toys R Us announced that it raised more than USD 3.1 million in its stores across the United States and Canada for its sixth annual Autism Speaks fundraising campaign. During Autism awareness month in April, Toys R Us and Babies R Us encouraged customers to donate to the cause. Donations collected will help the organization fund research for autism, raise public awareness about the disorder, and provide support for families affected by autism. 

Babies R Us announced the launch of a new partnership with Operation Shower, an organization that hosts baby showers for military wives to ease the stress of their husbands’ deployment.  Visitors can learn how they can support this charitable program and ensure that military moms-to-be receive basic essentials for their newborns online at Babiesrus.com/OperationShower.  To kick of the partnership, the Toys R Us Children’s Fund, a public charity, has donated USD 100,000 to Operation Shower.

Paul Frank, known for his character Julius the Monkey, is partnering with Babies R Us to launch the new Small Paul designs that will be available exclusively at Babies R Us stores nationwide beginning May 23.

        Julius the Monkey

Walgreens has expanded their Prescription Savings Club, which provides discounts to certain generic medications. Updated benefits include:

• Discounts on over 8,000 brand name and generic medications
• Coverage of an additional 300 value-priced generics for a total of more than 700
• 10% discount on the purchase of all Walgreens brand, W brand, and Nice! products
• 10% savings on services from Take Care Clinics
• Discounts of 5-20% on most immunizations
• Additional discounts on diabetes management products
• Savings on numerous preventative and lifestyle medications

Membership is USD 20 per year for an individual and USD 35 for a family, including pets.

Walgreens has launched its national Retail Employees with Disabilities Initiative (REDI), an in-store training program to help people with disabilities gain retail and customer service skills. The initiative works with community organizations and vocational rehabilitation agencies to train and develop candidates. Responsibilities of trainees will include:

• Cash register operations
• Customer service
• Merchandising
• Store inventory
• Maintaining store signage and displays

The first phase of REDI will begin in parts of Arizona, Florida, Illinois, Indiana, Iowa, Massachusetts, Minnesota, New York, Oregon, Pennsylvania, Washington, and Wisconsin, with plans to reach all states by the end of 2013.

Walgreens has announced that it has selected GSD&M to be its new brand and creative agency of record. The relationship will include broadcast, print, and digital activation and creative. The first work from GSD&M is expected to break in the fall of 2012.

Walmart, Inc. reported sales of USD 112.272 billion for the first quarter ended April 30, 2012, an 8.6% increase over the same period last year. Other financial highlights are listed below.

Total Company Results for Q1

• Total US sales increased 6.2% to USD 80.195 billion. Total US comparable-store sales (comps) were up 3.0% versus the same period last year. Including the impact of fuel, comps increased 3.2%.
• Gross margin as a percentage of sales decreased 28 basis points (bp) to 24.1% over this period last year.
• Consolidated operating income increased 8.3% to USD 6.4 billion.
• Inventories increased 1.4% to USD 41.284 billion.  

Walmart US Results for Q1

• Walmart US stores sales were USD 66.341 billion, an increase of 5.9% year-over-year.
• Comps increased 2.6%, both including and excluding fuel.  The retailer reported positive comparable store traffic and ticket for the quarter.
• Operating income increased 8.1% to USD 5.033 billion.

International Results for Q1

• International sales increased 15.0% year-over-year to USD to 32.077 billion. The retailer explained that results were negatively impacted by a USD 100 million currency exchange impact. Its performance also included approximately USD 1.9 billion related to recent acquisitions.  (Viewed on a constant currency basis and excluding the impact of the acquisitions, the retailer explained that sales would have risen 10.9%).

• Operating income increased 21.2% to USD 1.319 billion. The retailer reported that its result was negatively impacted by USD 50 million due to exchange rate fluctuations.

As of April 30, 2012, Walmart US operated 621 Walmart discount stores; 3,049 Supercenters; 202 Walmart Markets, Amigo stores, and Supermercados, 14 small formats, including On Campus, Walmart Express, and Super Ahorros stores, in the United States and Puerto Rico—for a total of 3,886 units. The Sam’s Club segment, covering the United States and Puerto Rico, operated a total of 612 units.

The company’s International segment operated units in (348) Africa, Argentina (88), Brazil (528), Canada (333), Chile (320), China (370, including Trust-Mart), Costa Rica (201), Guatemala (200), Honduras (69), India (17), Japan (422), Mexico (2,106), Nicaragua (73), El Salvador (79), and the United Kingdom (542)—for a total of 5,733 International units.  Walmart, Inc. operates a total of 10,231stores worldwide. 

Whole Foods Market’s Whole Planet Foundation has launched “Make Change. Not Waste" mobile iPhone application. The retailer has partnered with BlueAvocado, an advocate of green living and producer of sustainable lifestyle products in launching the app. The mobile app will reward Whole Foods shoppers with coupons for green lifestyle actions, while raising awareness and funds for poverty alleviation.

Shoppers can receive badges and coupons from a catalog of 45 green lifestyle behaviors such as recycling, biking to work, or using reusable shopping bags, etc. Shoppers can then unlock a coupon to purchase a green product at Whole Foods once completing 10 green lifestyle behaviors.  Shoppers can also donate a percentage of the coupon value back to Whole Planet Foundation.