OPERATIONS

Former Sears Canada CEO named chief executive of Sephora Americas

BY Marianne Wilson

New York — Sephora announced Thursday that Calvin McDonald has been named president and CEO of Sephora Americas, effective Jan. 1, 2014.

McDonald, who previously served as president and CEO of Sears Canada, succeeds David Suliteanu.

Suliteanu, who has helmed Sephora Americas since July 2000, will become CEO of Kendo Brands, which is owned by Sephora’s parent, LVMH Moet Hennessy Louis Vuitton SA.

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FINANCE

Dunkin’ Brands Q3 net income jumps 36%; continues expansion push

BY Dan Berthiaume

Canton, Mass. – Dunkin’ Brands Group, the parent company of Dunkin’ Donuts and Baskin Robbins, reported that its third quarter net income grew 36% to $40.2 million.

Revenue increased 8.5%, from $171.7 million, to $186.3 million.

Part of the reason Dunkin’ Brands enjoyed such as successful quarter was the addition of 22 net new restaurants worldwide by Dunkin’ Brands franchisees and licensees. This includes 81 net new Dunkin’ Donuts U.S. locations, 73 net new Baskin-Robbins International locations, 67 net new Dunkin’ Donuts International locations, and one net new Baskin-Robbins U.S. location. In addition, Dunkin’ Donuts U.S. franchisees remodeled 98 restaurants during the quarter.

Dunkin’ Brands also cited a systemwide sales increase of 5.8%, driven by same-store sales growth of 4.2% at U.S Dunkin’ Donuts stores and 3.2% at U.S, Baskin-Robbins stores, as helping to drive revenues, as well as increased franchise fees due to favorable development mix and incremental franchise renewals, and increased sales of ice cream products. Net income was boosted by operating income growth.

"With 222 net new openings year-to-date, we now have 7,500 Dunkin’ Donuts restaurants in the U.S and the demand by existing and prospective franchisees to grow with us has never been stronger said Nigel Travis, chairman and CEO, Dunkin’ Brands Group, Inc.

Travis said the company believes it can have 15,000 Dunkin’ Donuts restaurants in the U.S., including approximately an additional 3,000 east of the Mississippi and 5,000 in the western part of the country.

“Notably this quarter, we opened our first restaurants in Denver, Colorado, and sold additional store development agreements in Southern California bringing the total to 70 restaurants planned for the Southern California region,” he said. “Additionally, just last week we announced that we have begun to sell store development agreements for the central part of the state, including the Fresno, Bakersfield, Sacramento, and Santa Barbara areas."

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MARKETING/SOCIAL MEDIA

Millenials to outspend Baby Boomers by 2017

BY Marianne Wilson

New York — The Millennial generation is expected to outspend Baby Boomers by 2017, yet retailers underestimate the size and purchasing power of this consumer, according to a new study by Berglass + Associates and Women’s Wear Daily.

The study, “What Happens When Millennials Get the Wallet,” found that retailers do not fully understand the needs of Millennials and are employing business strategies and tactics that do not apply to this customer.

“Millennials have different motivations, attitudes and behaviors than previous generations, and retailers need to adjust their business strategies accordingly in order to thrive,” said Les Berglass, CEO of Berglass + Associates. “For the first time in several decades, we will see a new member of the C-suite, who will be responsible for driving two-way communication between the Millennial customer and the brand and for developing initiatives that will deliver long-term growth.”

The online survey, which was conducted in September 2013, queried 121 U.S. business leaders in all sectors of retail (including department stores, specialty stores, home shopping and direct-mail catalogs) primarily in the apparel, accessories, footwear and beauty sectors. Key findings unveiled in the survey include:

  • Approximately half of respondents are unaware that Millennials are expected to outspend Baby Boomers annually within five years.
  • Millennials rely most on their friends to make buying decisions, yet more than a quarter of respondents mistakenly believe that online advertising is the number one influencer of Millennials’ purchasing activity.
  • Of the executives that were surveyed, more than 30% are CEO’s or presidents, who plan to significantly increase their digital leadership over the next three years.
  • Sixty percent of respondents are not conducting any research or analysis of the Millennial customer.
  • Only 36% of respondents from companies with both physical stores and e-commerce sites offer a seamless customer experience, yet Millennials expect the channels to be integrated.

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J.Hoffman says:
Nov-01-2013 12:06 pm

Who are the Millennial Shoppers - Accenture Research
I simply want to contribute some research from Accenture that relates to important article: "Who are the Millennial Shoppers" -- http://bit.ly/16Rtmav. Of course, research is available from other sources.

J.Hoffman says:
Nov-01-2013 12:06 pm

I simply want to contribute some research from Accenture that relates to important article: "Who are the Millennial Shoppers" -- http://bit.ly/16Rtmav. Of course, research is available from other sources.

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