Gottschalks Reports Net Loss in Q1
Fresno, Calif., Gottschalks Inc. reported a net loss for the first quarter of $4.0 million, compared to a net loss of $2.0 million for the same quarter the year before. Comp-store sales decreased 0.5% for the quarter, while total sales decreased slightly by 0.4% to $143.5 million, from $144.1 million for the same quarter last year.
Toys ‘R’ Us Ends Partnership With Amazon.com
Seattle, Toys “R” Us ended its partnership with Amazon.com and signed a long-term agreement with GSI Commerce to power its site, The Seattle Times reported. After a two-year long battle over contract terms, the toy retailer won the right to break its 10-year agreement with Amazon. Although the ruling put into motion a separation agreement between the companies that would remove the Toys “R” Us selection from Amazon.com by July 1, Amazon appealed the decision in April, saying it wants to reinstate the partnership, the report said. The reports also said that if Amazon doesn’t succeed in court, its operating profit could be reduced by as much as $25 million in the current quarter and $50 million for the fiscal year, due to the loss of the contract.
U.S. Chain Stores Sales Rose in Latest Week
New York City, Sales at major retailers were up 3.3% on a comp-store sales basis for the week ended May 20, following a 3.4% rise the prior week, according to Redbook Research. U.S. chain-store sales rose with emphasis on household staples, but an increase in gasoline prices and interest rates could lower sales in the second quarter. Thus far, sales at U.S. retailers in May were down 2.8% when compared with the same period in April.