Best Buy posts disappointing December
Minneapolis — Best Buy Co. reported Friday that December sales were less than the company anticipated, as fewer-than-expected shoppers filled the retailer’s stores over the holiday selling month.
Same-store sales fell 1.2% in December, an improvement from the 4% drop in the same period last year. Total revenue was flat at $8.4 billion. Its online division shone, recording a 26% rise in revenue for the month.
Despite the lackluster showing in December, Best Buy reaffirmed its annual guidance.
“Based on our performance in December we continue to expect to achieve our annual guidance, despite customer traffic that was lower than expected until the last week before Christmas, which resulted in December revenue that was slightly lower than our expectations," said CEO Brian Dunn
Target announces first 24 stores in Ontario
Minneapolis — Target Corp.’s plan to open 125-135 stores in Canada is rapidly taking shape, as the retailer has released the locations of its first 24 stores in the country.
As previously announced, Target purchased the leasehold interests of 189 sites currently operated by Zellers Inc.
The majority of Target’s initial two dozen stores will open in early 2013, and include four locations in Toronto (Centrepoint Mall, Cloverdale Mall, Shoppers World Danforth and East York Town Centre).
“Target looks forward to continuing our strong reputation of being a good neighbor in the Canadian communities in which we will do business,” said Tony Fisher, president, Target Canada.
Approximately $10 million to $11 million will be invested to remodel each facility. Staffing per store will number 150 to 200.
Target said it will announce additional store locations in the coming months.
American Eagle launches global agency review
Pittsburgh — American Eagle Outfitters said Friday that it has begun a search for a marketing communications agency partner or partners.
The scope of services, according to the retailer, will include traditional and digital media strategy, planning and execution, as well as collaboration in creative development for its American Eagle Outfitters, Aerie and 77kids brands in North America and internationally.
“Hiring an agency is a natural evolution in the growth of the AEO family of brands,” said Michael Leedy, CMO.
Ark Advisors of New York will manage the search and expects to conclude reviews in first quarter 2012.