H&M Takes on California
San Francisco, Following the success of its two stores in downtown San Francisco, fast-fashion retailer H&M is expanding its presence in the Bay Area, according to a report in Friday’s San Francisco Chronicle. The Swedish import will open locations in Walnut Creek and Concord. Both stores are scheduled to open by the spring, the newspaper reported.
H&M will enter Southern California by the fall, with a store in Pasadena and one at the Beverly Center, Los Angeles.
Federated Consolidates Distribution
Cincinnati, The repercussions of the massive Federated and May merger are playing out in the supply chain, with a major plan to close five distribution centers in 2006. The move is part of a nationwide consolidation of Federated Department Stores’ distribution center network to maintain efficiency and reduce duplication as it realigns its Macy’s operating divisions, as previously announced. The five facilities closing in 2006 are among 31 distribution centers operated by the company.
Closing in June 2006 will be distribution centers in Manchester, Conn.; Baltimore; Aurora, Colo.; Portland, Ore.; and Salt Lake City. Responsibility for merchandise handled by these facilities will be shifted to other distribution centers operated by Federated in each region of the country.
“Advances in logistics and distribution center technology allow us to handle a larger volume of goods more effectively with fewer facilities that are more regional in nature. This helps us to deliver fresh fashion merchandise to the selling floors of our stores more quickly and consistently across the country,” said Tom Cole, Federated vice chair. “Streamlining our distribution center network to reduce redundancy and expense also is important to our ability to deliver value to our customers and shareholders.”
Distribution center consolidations are consistent with Federated’s previously announced estimates to realize approximately $175 million in cost synergies in 2006 and $450 million in annual cost synergies in 2007 and beyond as a result of the May Company merger.
Gas Sales Lift The Pantry
Sanford, N.C., Gasoline-related profits boosted the first quarter results of convenience store chain The Pantry. The company expects to report earnings per share for the quarter ended Dec. 29 of between $1.43 and $1.48, more than twice its earnings per share from the same quarter a year ago. The company will release its full results for the quarter on Jan. 26.