Hudson’s Bay Q4 profit falls on expenses; to invest in digital initiatives
Toronto — Hudson’s Bay Company’s net profit for the fourth quarter fell to $29.1 million from $86.8 million in the year ago period, amid higher expenses.
The company’s sales for the quarter, ended Feb.1, rose 74% to $2.41 billion, largely driven by the inclusion of Saks, which it acquired in November 2013. Same-store sales rose 6.6%, with an increase of 5.2% at its namesake stores, a 3.1% increase at Saks, and a decline of 1.3% at Lord & Taylor.
The company will make a significant digital investment applying the lessons from Saks’ more developed e-commerce to its other chains, according to The Globe and Mail.
"Following our acquisition of Saks in November, we have developed a strategic roadmap with four core growth strategies," stated Richard Baker, HBC’s governor and CEO. "First is the expansion of HBC Digital to drive sales across all of our banners. Second, we will prioritize the expansion of Off 5th, Saks’ value-oriented format.”
Baken said the retailer plans to significantly increase Off 5th’s presence through new stores and digitally.
“Expansion of Saks into Canada is our third major strategy,” Baker said. “We believe the Canadian market represents an opportunity for up to seven full-line Saks Fifth Avenue locations and up to 25 Off 5th stores, as well as digital commerce initiatives.”
ARTS releases Change4Charity standard; designed to aid retailers’ charity programs
Washington, D.C. — The Association for Retail Technology Standards (ARTS), a division of the National Retail Federation, is releasing its Change4Charity Standard. If adopted by point-of-sale vendors and donation processors, the standard will lower costs for retailers and support greater participation in charity programs by smaller retailers and non-profits.
The goals for this standard are to support as many different types of selling systems as possible without increasing transaction times and to lower the integration costs for retailers, making it easier to adopt “Change4Charity” programs. ARTS estimates that more than $358 million was raised for nonprofits in 2012 from checkout charity campaigns.
“As more consumers move to electronic payments, the idea of dropping change into a donation jar at the register is fading,” said NRF VP of retail technologies Tom Litchford. “At the moment, the cost of integrating selling systems to separate charities is a barrier for smaller retail companies, and many smaller charities don’t have the resources to take advantage of electronic integrations. We are eager to push this out to retailers who want to make a difference in the communities they serve.”
In addition to solution providers, the Retail Orphan Initiative (ROI) and retail communities, ARTS worked with charity processors for their engagement and assistance.
The work team was chaired by Oracle’s David Dorf with contributions from global POS and loyalty solution providers and retailers. Other contributors were Cisco Systems, Cumulus Data Services, Demandware, Digital Donations, DonateWiseNow, Epicor, MicroStrategy, Mini Donations, PCMS Datafit, PricewaterhouseCoopers, SAP, Starmount and Toshiba Global Commerce Solutions.
Shoe Carnival launching first national ad campaign
Atlanta — Footwear retailer Shoe Carnival on April 6 will launch its first integrated national advertising campaign in support of the spring season. The campaign accompanies the brand’s U.S. expansion and debuts a new tagline, "A surprise in store."
“Our aggressive expansion plans call for us to open 30 to 35 stores per year,” said Todd Beurman, senior VP of marketing at Shoe Carnival. “Couple that with our rapid e-commerce growth, and now is the time for us to employ an integrated, national advertising campaign to introduce the rest of America to the Shoe Carnival brand and to remind our existing customer base that there’s always something new for them to discover at Shoe Carnival."
In its first national campaign, “Boxed Surprise,” Shoe Carnival highlights its unexpected selection of brand name shoes and accessories at great prices, and the stores’ fun, inviting environment. “Home Runway,” the first in a series of national TV commercials for the campaign, celebrates the joy and anticipation of new shoes and shows that there’s a surprise in every shoebox at Shoe Carnival.”
“Home Runway” will run on national cable beginning April 6, and digital and social media will support these efforts.