Target Australia, Kmart Australia select Core Solutions to streamline global sourcing
Hong Kong Two of the largest retailers in Australia, Target Australia and Kmart Australia, have selected Core Solutions’s CBX PLM/Sourcing system to streamline global sourcing of private-label merchandise.
The group has purchased the complete CBX PLM/Sourcing suite and will leverage its capability to help shorten product-development cycles, reduce end-to-end lead times, increase visibility and improve supplier management and operational efficiency. The system is expected to be implemented and ready to ‘go live’ early next year.
CBX PLM/Sourcing will help Kmart, Target and Coles Group Asia convert traditionally manual sourcing processes based heavily around spreadsheets, e-mails and faxes to streamlined processes enabled by a Web-based, centrally managed collaboration, workflow and business-intelligence system.
“Despite the current economic conditions, Target and Kmart have pushed forward with CBX PLM/Sourcing, because they recognize the strategic importance to elevate the group’s global sourcing capability to the next level. Target and Kmart have shown an enormous amount of commitment from top to bottom to make this project a success,” said Michael Hung, CEO of Core Solutions.
Boscov’s to close 10 stores
BOSTON Boscov’s will be running store clothing sales at 10 locations on Aug. 16 as part of its restructuring plan.
The closings are being run by the Gordon Brothers Group and Hilco Merchant Resources.
Boscov’s filed for Chapter 11 bankruptcy protection earlier this month with the U.S. bankruptcy court in Delaware. It had $538 million of assets and $479 million of liabilities as of May 3, a court filing shows.
JCPenney breaks even, raises FY outlook
PLANO, Texas JCPenney broke even its second quarter, with earnings of 0 cents pe share compared with earnings of 52 cents per share last year. According to the company, second-quarter earnings were impacted by a pre-tax negative swing in non-cash qualified pension plan expense of $106 million, or 28 cents per share after-tax, compared to last year’s second quarter. Net income for this year’s second quarter was a loss of $1 million versus income of $117 million last year.
Total sales in the second quarter decreased 7.9% compared with last year, while comparable-store sales decreased 9.5%, the company reported. JCPenney said the strongest merchandise results were in shoes and women’s apparel, and geographically, the best performance was in the Southwest region of the country. The weakest results were in children’s apparel and in the Southeast region.
“JCPenney’s financial performance in the second quarter shows that our strategy to navigate the current, very difficult consumer climate is working and will continue to position us well over the near and longer term. Our stepped up style along with the quality and value that have become synonymous with the JCPenney brand allowed us to compete as one of the strongest anchors in the nation’s malls, where we are customers’ value destination,” said Myron Ullman, III, chairman and chief executive officer of JCPenney.
In view of its better-than-expected second quarter operating results and expectations for further gross margin improvement in the second half, management has raised its 2009 full year earnings guidance to a range of 75 cents to 90 cents per share. This guidance updates the previous range of 50 cents to 65 cents per share provided with the company’s first-quarter earnings release.
For the third quarter, JCPenney expects total sales to decrease 3% to 5%, comparable-store sales to decrease 5% to 7% and earnings per share to be in the range of a loss of 5 cents to earnings of 5cents per share.