Target and Starbucks team toward Canada expansion
Toronto — Target Canada Co. and Starbucks Coffee Canada announced Wednesday an agreement that will put Starbucks licensed stores inside most of the 125 to 135 stores that Target plans to open in the region.
"Our goal is to bring the true Target brand shopping experience to our Canadian guests, so expanding our relationship with Starbucks as we enter the Canadian marketplace is a natural fit," said John Morioka, senior VP merchandising, Target Canada. There are currently 1,097 Starbucks locations within Target stores in the United States.
Starbucks store openings will coincide with Target’s entrance into the Canadian market beginning in spring of 2013. Stores will offer an expanded selection that includes not only Starbucks beverages but also breakfast and lunch items.
"We continually look for new and relevant opportunities to bring the Starbucks experience to communities across the country, and this strategic relationship represents another way we’re able to create meaningful connections with both new and existing customers," said Colin Moore, president, Starbucks Canada.
Abercrombie & Fitch Q4 profit falls 80% on holiday promotions, flat sales
New Albany, Ohio — Margin squeezes and flagging same-store sales hurt Abercrombie & Fitch Co.’s fourth quarter profit dropped nearly 80% drop, to $19.6 million from $92.6 million a year earlier, amid margin squeezes and flat same-store sales.
"Our results for the fourth quarter were below our expectations in an extremely challenging environment.,” said Mike Jeffries, CEO and chairman, Abercrombie & Fitch Co. “However, we are confident that we are on track with our long-term strategy of leveraging the international appeal of our iconic brands to build a highly profitable, sustainable, global business.”
On a conference call with analysts, Jeffries blamed "highly aggressive promotional environment" for being unable to raise prices to counter the effect of higher apparel manufacturing costs.
Sales for the period ended Jan. 29 rose 16% to $1.33 billion, from $1.15 billion. In the United States, sales increased 4% to $962.2 million. Same-store sales overall were flat. By brand, same-store sales fell 4% at namesake stores, dropped 3% at Abercrombie kids and increased 2% at Hollister Co.
For the full year, the company reported net income of $127.7 million, compared with $150.3 million for the prior year. Sales rose 20% to $4.16 billion from $3.47 billion, and total same-store sales increased 5%. It opened 47 new international stores and closed 71 U.S. stores during fiscal 2011.
Plans in 2012 call for opening five international Abercrombie & Fitch flagship locations, one abercrombie kids flagship, and opening approximately 40 international Hollister stores.
Based on current new store plans and other planned expenditures, the company expects total capital expenditures for fiscal 2012 to be approximately $400 million, predominantly related to new stores and investments in the distribution center and direct-to-consumer operations.
Office Depot adds style with desk line
BOCA RATON, Fla. — Office Depot is hoping to appeal to working women with a new desk accessories line.The See Jane Work line includes mix-and-match organizational products starting at just $3.99.
"It helps to have a good system of organization and well-designed products that are as functional as they are beautiful," said Holly Bohn, founder of See Jane Work. “This new collection encourages female professionals to be innovative with organization, and provides them with plenty of design options to enhance, improve and brighten their workspace."
See Jane Work was created by entrepreneur Holly Bohn eight years ago when she set out to decorate the offices of her accounting business and became discouraged by the challenge of finding desk accessories with style, utility and quality. Bohn’s approach lead to the creation of See Jane Work.
“This exciting line of desk accessories is a great complement to the wide assortment of everyday organizing solutions that are currently available at Office Depot," said Farla Efros, EEVP and chief merchandising officer for Office Depot. "The collection reinforces our commitment to help female professionals stay organized with little things that work in a big way."