Dillard’s Q4 profit up; same-store sales up for 10th straight quarter
Little Rock, Ark. — Dillard’s Inc. posted fourth-quarter net income of $161.4 million, up 14% over the year-ago period. It also reported its 10th consecutive quarter of same-store sales growth.
The department store company posted quarterly net sales of $2.106 billion, up 7% from $1.970 billion during the same quarter last year. (Net sales include the operations of the company’s construction business, CDI Contractors LLC of Little Rock. Excluding CDI, total merchandise sales were $2.087 billion, up 7% from $1.946 billion during the same quarter last year.)
Same-store sales were up 3%.
"We are pleased to report a strong finish to a very successful year at Dillard’s," said Dillard’s CEO William T. Dillard II. "Our positive sales performance and gross margin expansion combined with expense control drove strong cash flow throughout the year. As a result, we were pleased to return cash to shareholders in the form of a $5 special dividend during the fourth quarter. Additionally, we purchased $185.5 million of Class A common stock during the year. As we mark our 75th year at Dillard’s this month, we are proud of our progress and excited about the future."
As of Feb. 2, Dillard’s operated 284 stores and 18 clearance centers in 29 states.
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Visa in deal with ROAM to increase retailers’ acceptance of mobile payments
New York — Visa Inc. has entered into an agreement with mobile commerce provider ROAM, an Ingenico company, to enable merchants of all sizes to accept electronic payments using mobile technology. The companies aim to displace cash payments by expanding the reach of electronic payments to new merchant categories, and by making it easier for merchants and acquirers to take advantage of secure mobile acceptance solutions.
ROAM is a provider of mobile acceptance technology, delivering hardware peripherals, applications, and services that enable merchants to realize the benefits of electronic commerce. As part of the agreement with Visa, ROAM will participate in the Visa Ready Partner Program and has agreed to bundle its mobile point-of-sale hardware peripherals with Visa’s acceptance solutions to offer merchants globally a cost-efficient and secure way to accept card payments.
“Displacing cash payments with the security and efficiency of electronic payments continues to be a primary driver of growth for the global payments industry,” said Jim McCarthy, global head of product Visa Inc. “Visa, through its mPOS partner program, is committed to accelerating the use of mobile technology to enable merchants worldwide to accept Visa payments. Our agreement with ROAM will help us reach that goal globally.”
Kantar: Overall branded basket 4% less expensive at Walmart than Target
New York — With an overall branded basket 4% less expensive than Target’s, Walmart assumes the strongest overall lead in Kantar Retail’s semi-annual pricing study since the study began in 2009.
While strategic price discounts on key items continue to be a cornerstone of Target’s price competitiveness, rather than everyday low prices, Target’s overall basket has not been lower than Walmart’s since the January 2011 iteration of this study.
Kantar Retail revisited the same co-located Walmart and Target stores in Massachusetts in January 2013 to re-assess a previously established basket of national brand items including edible grocery, non-edible grocery, and health & beauty aids (HBA) items. Only identical SKUs from both retailers were assessed.
“While the two retailers’ baskets are still closely priced, Walmart has managed a consistent lead since early 2011,” comments Leon Nicholas, SVP with Kantar Retail and contributor to the study. “Its positioning is underpinned by management’s revived focus on EDLP.”
In contrast, Nicholas said, Target offers its best prices for guests willing to commit to value in the longer term by stocking-up, realizing gift card values on a return trip, and signing up for its REDcard (Target’s loyalty program).
“This price separation is a key strategic piece of Walmart’s efforts to shore up shopper traffic and drive its ‘save money’ brand proposition,” Nicholas noted.
Other highlights of the study include:
- Walmart’s edible grocery basket was 14.1% less expensive than Target’s, the strongest recorded price gap in the history of this study. While Walmart’s HBA basket retained its 4% price gap, Walmart’s edible grocery basket substantially reversed its position since the June 2012 assessment.
- On an individual item basis, Walmart’s basket widened the spread. Nearly one-third of the items were more than 10% less expensive at Walmart, the largest proportion of Walmart’s basket items to assert a 10% spread over Target’s since this study began.
- Walmart achieved its basket position without rollbacks. Walmart’s basket recorded no price promotions in this iteration while Target posted a total of seven temporary price cuts (TPCs). Strategic price discounts on key items continue to be a cornerstone of Target’s price competitiveness, rather than every day low prices.
- Target’s overall private label basket was 12.2% more expensive than Walmart’s. Walmart continues to hold a competitive private label basket, as it was the same price or cheaper than Target’s across all of the study’s iterations since 2009.
- With 5% Rewards, Target’s basket would have been 1.1% less expensive than Walmart’s. Though Walmart’s total basket was less expensive than Target’s. Target continues to offer a very competitive basket price to its REDcard holders.
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