Wal-Mart to close Moscow office
Bentonville, Ark. – Wal-Mart Stores Inc. is closing its Moscow office but said it is still interested in the Russian market.
The retailer said Monday that it has been looking to enter the Russian market through an acquisition, but has not found a near-term opportunity so it does not need the Moscow office at this time.
"The Russian market is a compelling retail opportunity and we believe that Russian consumers could benefit from Walmart’s value proposition," said Doug McMillon, CEO of Walmart International. "Since we have decided to enter the market through acquisition, not greenfield development, and since there is no clear acquisition partner in the near term, there is not a business reason to continue our Moscow representative office. We will continue to pursue market entry opportunities."
Wal-Mart has continued to expand its business overseas in countries including Brazil, China and India. Last month, Wal-Mart announced that it was buying a controlling stake in South African retailer Massmart in a 17 billion rand (approximately $2 billion) deal.
Cost Plus testing things out at Bed Bath & Beyond
OAKLAND, Calif. – Cost Plus confirmed that it is conducting a merchandising test with Bed Bath & Beyond involving its consumables products in three Bed Bath & Beyond stores located in San Diego, California; Totowa, New Jersey and Elmsford, New York.
For the third quarter the company reported a same-store sales increased 8.8%.Net loss for the quarter was $8.3 million, a $13.7 million improvement.
TRU loss widens in Q3
WAYNE, N.J. – Toys“R”Us reported that net sales for the third quarter were$2.7 billion, an increase of 1.9% compared with prior year, due to new locations including Toys“R”Us Express stores as well as comparable-store net sales growth of 2.3% in the domestic segment and a foreign currency translation benefit of $17 million. These increases were partially offset by a decline of 2.9% in comparable-store net sales in the international segment.
Net loss for the quarter was $93 million compared to $67 million in the prior year. The increase in net loss reflects both the decline in Adjusted EBITDA and an increase in interest expense primarily due to write-offs of deferred financing fees related to debt refinancings completed in August and higher effective interest rates. These were partially offset by an increase in income tax benefit.
Jerry Storch, chairman and CEO of Toys“R”Us, stated, “We are pleased with the progress we made during the third quarter in positioning the company for the holiday season and for the long term. We made important investments for our future during this quarter, including the opening of new stores and furthering the integration of existing stores around the world to include both toy and juvenile products. At the same time, we intensely focused on the implementation of our aggressive holiday strategy. This included the addition of approximately 45,000 seasonal employees to ensure service excellence, the doubling of our U.S. toy store base with more than 600 Toys“R”Us Express locations, and the ramping up of our inventory of hot and exclusive products.” Storch added, “Now, as we enter the heart of the holiday shopping season, we remain committed to delivering great value to our customers, providing a differentiated shopping environment with unique merchandise offerings and ensuring we have the hot toys in stock when shoppers want them.”