OPERATIONS

Ross Stores pays $3.9 million fine for defective kids’ clothing

BY Dan Berthiaume

Pleasanton, Calif. — Ross Stores has agreed to pay a $3.9 million fine to the Consumer Product Safety Commission (CPSC) for neglecting to inform the commission within a mandated 24-hour period that it sold or stocked in stores roughly 23,000 pieces of children’s apparel with drawstrings located at the neck or waist between January 2009 and February 2012. Sales of children’s clothing with these types of drawstrings has been officially banned in the U.S. since 2011 and subject to voluntary restrictions since 1996.

As part of the fine agreement, Ross Stores will create a compliance plan to prevent future sales of defective children’s apparel but denies intentionally violating any regulations. Ross Stores previously paid a $500,000 fine in 2009 for selling defective children’s clothing during 2006 and 2007. Neither the CPSC or Ross Stores website had any information or comment on this matter.

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Mobile coupons increase store purchase likelihood

BY Dan Berthiaume

Austin, Texas – Slightly more than half of consumers (51%) said they would be more likely to buy something in-store if they received a coupon on their mobile device for that store while nearby, according to a recent mobile commerce survey from RetailMeNot and The Omnibus Company. The survey of 1,067 U.S. residents age 18 and older conducted in April 2013 also revealed:

  • One-third (33%) of consumers surveyed have conducted searches on a mobile device for coupons online.
  • More than one-quarter (26%) of consumers bought something in a physical store using a coupon found on a mobile device.
  • Of those consumers who made purchases in-store using a digital coupon, 90% had done so in the last month.
  • If a consumer received a coupon on their mobile device while already inside a store, more than 6 in 10 consumers (63%) indicated that they would be more likely to buy something.
  • More than four-in-10 (44%) 18- to 34-year-olds and 26% of respondents 35+ have searched for a coupon on the Internet with a mobile device. Almost four in 10 (39%) 18- to 34-year-olds and 18% of older consumers have actually bought something in a physical store with a coupon they found on a mobile device.

The survey also revealed that men (61%), 18-to-34-year-olds (71%) and parents (67%) are more likely than women (48%), consumers 35 and older (42%) and non-parents (46%) to have used their mobile device to make a purchase in the past month.

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Hudson Group to open 19 stores at new LAX terminal

BY CSA STAFF

East Rutherford, N.J. — The Hudson Group is opening 19 new stores at the soon-to-open Tom Bradley International Terminal at Los Angeles International Airport (LAX). The stores include Bulgari, Emporio Armani, Michael Kors, Coach, Hugo Boss, Bliss, Victoria’s Secret, Tumi, Fred Segak, Kitson, Travel & Leisure, See’s Candies, Virgin/Boost, Pinkberry, Entertainment Weekly News, CNN Newsstand Los Angeles, Angeleno, and Hudson.

"This award is a milestone for our partnership group, probably one of the most significant wins in our 25-year history,” said Joe DiDomizio, president & CEO of Hudson Group. “It demonstrates our transition from a company perhaps best known as an excellent newsstand operator to a company at ease with operating international luxury brands.”

The joint venture operating the stores includes Hudson Group Retail LLC along with equity partner Concourse Ventures, Inc. (Dale Cochran, principal), along with ACDBE partners Palazzo Concessions (Simeon Stewart and Michael Washington, principals); The Zaman Group (Karim Zaman, principal); MAJ Collection (Julie Jun, principal); and Arandia Designs (Luis Arandia, principal).

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