Papa Gino’s Expands Chain With Optimization Solution
Papa Gino’s Inc. is streamlining its growth strategy by deploying location-optimization software.
The Dedham, Mass.-based privately held company, which operates 170 Papa Gino’s pizzerias and 200 D’Angelo’s sandwich shops, has plans to expand both of its brands outside of New England. In an effort to ease this transition, the chain will use location-optimization software from geoVue, Woburn, Mass.
Using predictive analysis, geoVue delivers predictive store trade areas that enable retailers to determine which are the best markets to enter, expand in or even exit. The solution also determines how the chain should optimize store clusters that operate within specific markets, and how to localize marketing and merchandising.
Armed with geoVue, Papa Gino’s evaluated all of the markets in the eastern half of the United States to determine which markets would be the best fit for its brands. The company then determined locations within each market by assessing each of the retail areas within a market. Finally, the solution evaluated factors including demographics, competition and anticipated demand for competing brands in the area.
“The solution gives us insights into which markets are priorities and why,” said Anthony Padulo, the company’s senior VP of franchise development. “The software also assists in helping us determine how many restaurants we should open in a given market, which trade areas they should be located in and how to prioritize them.”
Papa Gino’s, which added the solution in June 2006, will use geoVue to plan more than 200 locations over the next five years.
Sears Holdings ceo unhappy with 2Q
HOFFMAN ESTATES, Ill. Sears Holdings today reported net income of $176 million, or $1.17 per diluted share, for the second quarter ended Aug. 4, compared with net income of $294 million, or $1.88 per diluted share, for the second quarter ended July 29, 2006. The company attributed the decline in its second quarter results from the same quarter last year to lower operating results at both Sears Domestic and Kmart, which were partially offset by improved operating results at Sears Canada.
“We are disappointed with our second quarter results. Our gross margins came under pressure from sales declines and increased promotional activity, and as a result, our net income was significantly below last year and our expectations,” said Aylwin Lewis, Sears Holdings’ ceo and president.
Sears Domestic’s comparable-store sales declined 4.3% for the quarter, while Kmart’s comparable-store sales declined 3.8%. Total domestic comparable-store sales declined 4.1%. The company reported lower sales across most merchandise categories at both Kmart and Sears Domestic, partially offset by increased sales of women’s apparel at both Kmart and Sears Domestic, as well as within consumer electronics and footwear at Sears Domestic. For the quarter, total revenues declined $0.6 billion to $12.2 billion in fiscal 2007, as compared to $12.8 billion for the second quarter of fiscal 2006.
Lane Bryant pres. joins Christopher & Banks
MINNEAPOLIS Former Lane Bryant president Lorna Nagler will join Christopher & Banks as president and ceo effective Aug. 31. She will replace Matthew Dillon, who resigned from his position as president and ceo and as a member of the board of directors today. Nagler has also been elected as a member of Christopher & Banks’ board of directors effective Aug. 31.
Nagler most recently served as president of Lane Bryant, a division of Charming Shoppes. Before joining Charming Shoppes in April, 2002, Nagler served as a senior vp and general merchandising manager for apparel and jewelry at Kmart Corp.