Growth is Key Industry Issue for 2006
New York City, Retailers will be focusing on accelerated growth this year, according to research by the National Retail Federation (NRF) Foundation and BearingPoint, a leading global management and technology consulting firm.
The study, “Retail Horizons: Benchmarks for 2005,” was unveiled on Tuesday at the NRF’s annual convention in New York City. It revealed that the majority of retailers cited their mission of growth as a priority initiative. Close to three-quarters (71%) of retailer executives listed growing existing same-store sales as their top priority.
“We are now seeing retailers refocus their efforts on growth initiatives in an effort to increase sales, expand their consumer base and retain customer loyalty, “ said Tracy Mullin, president and CEO, NRF.
Other key findings of the study include:
The study suggested several approaches retailers could take to provide competitive advantage and generate robust prospects for profitability. These include:
Kmart Reduces Full-Time Employee Roster
Troy, Mich., Kmart has outlined a new plan that reduces its full-time work force in favor of more part-timers at its 1,400 stores nationwide.
Some recently terminated full-time Kmart employees have been offered some of the part-time slots.
The new plan is entitled “Full-Time-Part-Time Workforce Adjustment Guidelines,” and is one of the latest cost-cutting steps taken by Kmart since it merged with Sears, Roebuck and Co. last year.
Eddie Bauer Identifies Accounting Errors
Redmond, Wash., Newly emerged from bankruptcy, Eddie Bauer Holdings has identified errors in its balance sheets and cash-flow statements. The company has issued a statement saying that the errors will be corrected, but that they will not have an effect on net cash flows.
The company also announced the departure of CFO Timothy McLaughlin, who has been replaced in the interim by David Taylor, effective immediately.
The financial understatements are related to lease accounting.