Target names GM exec as chief risk and compliance officer
Minneapolis —Target Corp. has named Jacqueline Hourigan Rice as senior VP, chief risk and compliance officer. Rice is a 17-year veteran of General Motors, where she most recently served as chief compliance officer.
Rice joins Target effective Dec. 1, and will report directly to company chairman and CEO Brian Cornell. In addition, the company is elevating the position to include centralized oversight of enterprise risk management, compliance, vendor management and corporate security under her leadership.
“Earlier this year, Target stated our commitment to overhaul our information security and compliance structure and practices, and with that came the need to elevate the role of key positions in the company,” said Cornell. “Jackie is a proven leader with solid global experience and I know she has what it takes to help us move forward in this complex and ever-changing environment.”
Rice partly succeeds Ann Scovil, who retired in March as VP of assurance, risk and compliance. But in her expanded role, Rice will also be responsible for corporate security and its suppliers.
Earlier this year, Target announced that it was overhauling information security and compliance which included external searches for leaders in those areas.
In June, the retailer named Brad Maiorino as chief information security officer. He also had been with General Motors.
Ann Inc. forecasts declining sales; assesses supply chain
New York— Ann Inc. is forecasting declining sales for the fiscal third and fourth quarter and full year 2014. The company is also launching a comprehensive, end-to-end assessment of its supply chain to identify opportunities to enhance profitability, with a focus on speed, flexibility, improving product sell-through and reducing the cost of goods sold.
Ann Inc. expects third quarter sales to be $647 million, reflecting a same-store sales decline of 4.3%. Fourth quarter sales are expected to total $630 million, reflecting a same-store sales decline in the low-single digits, while net sales for the full fiscal year are expected to be $2.62 billion, reflecting a total company same-store sales decline in the low-single digits.
"Our results for the third quarter at both the Ann Taylor and Loft brands fell short of our expectations, reflecting lower mall traffic and a highly promotional retail environment,” said Kay Krill, president and CEO Ann Inc. “In addition, sales during the first half of the quarter were negatively impacted by product shipment delays related to labor uncertainty at the West Coast ports, which were mitigated by the use of air freight later in the quarter. Further to these external pressures, Ann Taylor also experienced soft product performance in select categories, resulting in its first negative comparable sales performance in the last ten quarters."
Looking ahead to the fourth quarter, Ann Taylor expects continuing challenges from holiday promotions and air freight costs, but intends to maximize productivity and gross margin performance.
Gap expanding footprint in China; testing virtual wall technology
San Francisco —Gap Inc. reported that it will surpass 100 Gap branded stores across mainland China, Hong Kong and Taiwan on Nov. 8 when the brand opens a location in Guangzhou. The milestone–reached less than four years after the first Gap store debuted in 2010–includes Gap and Gap Outlet stores.
The retailer has also seen strong growth in ecommerce and continues to push the boundaries between the physical and digital channels, exploring the use of interactive displays that extend customers’ access to its product both in and out of store. It has been experimenting with virtual wall technology to expand its product offering to customers in current stores as well as with pop-up experiences that can be used to introduce the brand to new consumers.
“We want to lead the way in bringing omni-channel to life in China,” said Jeff Kirwan, president of greater China for Gap Inc. “It’s early days yet, but with the addition of virtual experiences both in our Gap stores and in other non-traditional locations, we hope to offer more points of access to our Chinese customer so she can shop our brands wherever, whenever and however she wants.”
The company also announced that it will expand Old Navy’s footprint faster than originally planned in mainland China, with its first locations in southern and northern China. The first Old Navy outside of the Shanghai and Jiangsu province region will open in the special economic zone of Shenzhen later this week on November 8, with plans to extend its reach even further with the first Old Navy in Beijing in December, reaching seven stores in five cities in less than a year.
The company also shared that its plans for Taiwan have accelerated with its first Gap store outside Taipei opening in Hsinchu in late November, marking the first store outside Taipei and bringing the brand to five stores in that market since opening in March.