Kohl’s and Forever 21 Take 46 Mervyns Locations
Menomonee Falls, Wis. Kohl’s prevailed in a joint bid with Forever 21 in an auction of leaseholds held Thursday for Mervyns sites. Together, the retailers acquired 46 locations for approximately $6.25 million. Kohl’s will assume 31 of the locations while Forever 21 Inc. will assume 15, pending approval by the court overseeing Mervyns’ bankruptcy proceedings.
“We are pleased with the results of the auction,” said Kevin Mansell, president and CEO for Kohl’s Dept. Stores. “With over 1,000 stores from coast to coast, these locations provide increased presence in under-penetrated markets. We will continue to be opportunistic and prudent in our discussions with the owners of select Mervyns real estate as we continue to position Kohl’s to grow market share.”
In fiscal 2009, Kohl’s still expects to open approximately 50 stores, including the majority of the 31 former Mervyns locations.
Costco sees slight 3Q comps growth
ISSAQUAH, Wash. Costco Wholesale reported that net sales for the first quarter of fiscal 2009 increased 4% to $16.04 billion from $15.47 billion during the first quarter of fiscal 2008. On a comparable-warehouse basis, net sales increased 1%.
Net income for the first quarter of fiscal 2009 was $262.5 million, or 60 cents per diluted share, compared to $262 million, or 59 cents per diluted share, during the first quarter of fiscal 2008.
According to Richard Galanti, Chief Financial Officer of Costco, “First quarter 2009 results benefited from very strong gasoline profitability when compared to last year. Results were hurt by a slowdown in non-food discretionary sales and related reductions in margins associated with these sales, primarily in the latter half of the quarter.”
Fred’s promotes Efird to CEO
MEMPHIS, Tenn. Fred’s has promoted president Bruce Efird to ceo effective Feb. 1, 2009. Efird, who will retain the title of president and remains a director of the company, will succeed Michael Hayes, who will continue as chairman of the board of directors.
Prior to joining Fred’s, Efird was evp of merchandising for Meijer. Prior to that, Efird held management positions with Bruno’s Supermarkets and Food Lion.