OPERATIONS

Limited Brands’ CEO pay package nearly doubles

BY CSA STAFF

New York City — Lexlie Wexner, 73, the CEO and founder of Limited Brands, received a 2010 pay package nearly double the year before, according to an analysis by The Associated Press. The increase came as business improved for the parent of Victoria’s Secret and Bath and Body Works.

Wexner’s total compensation totaled $20.1 million, up from $10.4 million in 2009, because of a hefty increase in stock and option awards and a higher performance-based bonus.

Wexner, who has been CEO of the company since he founded it in 1963, received a base salary of $1.9 million, even with last year. He received a performance-based bonus of $6.3 million, up 29% from 2009, the Associated Press reported.

The bulk of his award came in the form of stock and option awards worth $11.6 million on the date they were granted, according to a filing with the Securities and Exchange Commission on Monday. That’s nearly five times what he received in stock and option awards in 2009.

The Associated Press formula calculates an executive’s total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year.

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OPERATIONS

Sears to roll out beauty departments to more than 100 locations

BY CSA STAFF

Hoffman Estates, Ill. — Sears on Monday announced the expansion of beauty to more than 100 Sears locations and Sears.com.

The new cosmetics departments will include beauty products from such well-known brands as L’Oreal, Maybelline, Revlon and CoverGirl, in a range of hues for every woman. Additionally, beauty advisers staffing the departments will offer makeup tips and advice to customers who desire assistance in perfecting their look.

The retailer tested the beauty concept in 13 stores across the country in 2010 to drive both consideration and traffic among female shoppers, and the beauty departments were well received by customers, the retailer said. The departments will include new fixtures in a dedicated space and will give customers access to these popular cosmetics brands at the mall.

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FINANCE

Deloitte survey finds consumers bracing for higher prices

BY CSA STAFF

New York City — Despite showing no signs of spending less in recent months, a new Deloitte survey found that nearly three-quarters (74%) of Americans believe higher prices could slow their spending in the months ahead. Deloitte’s study also revealed that mobile and social connections are helping shoppers make savvier buying decisions in the wake of the recession.

Households in the United States are taking note of events that could curb their willingness to spend. For example, more than seven out of 10 (71%) respondents cite concerns about higher energy prices, up from 54% at this time last year, and nearly one-half (47%) point to higher medical costs. Additionally, 44% indicate political unrest in other countries as a factor that could cause them to lower their spending.

While four out of 10 (43%) consumers surveyed feel the economy is still in a recession, Americans in higher income brackets appear to have a more optimistic outlook than those at lower income levels. Nearly half (45%) of households earning $100,000 or more say their confidence in the economy has improved over the past six months, compared with 24% among those earning less than $100,000.

"Consumers continue to be resilient and give retailers reasons to be optimistic, despite their apparent lack of confidence in the economy," said Alison Paul, vice chairman and U.S. retail sector leader, Deloitte LLP. "With day-to-day expenses on the rise, retailers must be innovative and offer more than just low prices to attract customers. By interacting more intimately with consumers through mobile, social media and other emerging platforms, and articulating a message of value and quality, retailers will do well with worried shoppers."

Good deals are harder to find, according to survey respondents. Just over one-quarter (27%) of consumers surveyed say stores are offering more value for their money, down from nearly half (45%) of consumers who said so at this time last year. Meanwhile, 60% search more online to get the best product or price.

Among survey respondents who own a Web-enabled smartphone (32%), more 43% said they have used it specifically in a store to assist in their shopping; 37% wanted to use their phones while in a store but couldn’t because of connectivity issues. Additionally, 490% of consumers surveyed interact with retailers through social networking sites to find out about promotions, browse products, or review recommendations.

"Consumers are challenging retailers to be creative and deliver a multi-channel experience that stands out," continued Paul. "Many retailers are considering investments such as providing Wi-Fi connectivity in the store which is an excellent way to connect with the shopper at the right time during the buying process. Of course, training for store associates needs to accompany these infrastructure changes to be sure associates are knowledgeable and ready for this more informed consumer."

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