Canadian Tire to Open New Concepts
Toronto Canadian Tire Corp. plans to launch two new store concepts this year, according to a Globe and Mail report.
It also plans to re-model bigger stores to focus on its stronger categories, such as sporting goods and hardware supplies. The concepts aim to help the company bolster its business after a sluggish economy caused weak sales in its first quarter, the report said.
The new concepts will begin to launch in the summer. Approximately 100 rural and “underserved” smaller markets have already been identified for the smaller store format, according to the report.
The new stores will have about one-third the selling space of a traditional Canadian Tire outlet, the report said.
JCPenney improves April comps
PLANO, Texas JCPenney reported a comparable-store sales decrease of 1.7% for the four weeks ended May 3, 2008, compared to guidance for sales to decrease mid- to high-single digits and compared to a 3.4% decrease last year. According to the company, sales benefitted in the month from more favorable weather trends in some regions of the country that boosted seasonal apparel sales, and customer response to promotional and clearance activities.
Total company sales for the month were $1.33 billion compared with $1.32 billion last year. The top performing merchandise divisions during the month were in apparel and family footwear, while fine jewelry and home categories continued to experience weaker sales. Geographically, the best performing regions of the country were the Northeast and Central regions.
Management’s guidance for the four-week period ending May 31, is for a mid-single digit decrease in comparable store sales, compared to a 0.9% decrease in last year’s May period.
Kohl’s reports strong April sales, raises outlook
MENOMONEE FALLS, Wis. Kohl’s reported that sales for the four-week period ended May 3, increased 12% to $1.3 billion from $1.1 billion last year. On a comparable-store basis, sales increased 3.5%.
Larry Montgomery, Kohl’s chairman and ceo, commented, “We were encouraged by the improvement in our sales performance in April as business in seasonal categories improved. We will be conservative in our inventory planning and expense management as we continue to expect our customers to be cautious in their spending.”
As a result of April’s performance, the company now expects earnings to exceed its previous guidance of 40 cents to 42 cents per diluted share.