News

Wal-Mart issues ‘zero tolerance’ policy for global suppliers

BY Staff Writer

Bentonville, Ark. — Wal-Mart Stores is tightening the reins on its global suppliers. Effective March 1, the retailer is implementing a "zero tolerance" policy for any supplier who subcontracts work to factories without the company’s knowledge, the Associated Press reported. Previously, Wal-Mart gave suppliers three chances to correct mistakes.

As part of the new rules, Wal-Mart will require all factories in Bangladesh to undergo an electrical and building safety assessment from an independent agency.

"While an overall global approach is necessary, there is a need for heightened attention to the risks specifically related to building structure in Bangladesh," Wal-Mart said in a 10-page letter to suppliers Tuesday.

In addition, beginning June 1, suppliers must have an employee stationed in countries where they subcontract to ensure compliance. In the past, suppliers relied on third-party agents to monitor activity.

Wal-Mart will hold a meeting for clothing suppliers from the United States and Canada on Thursday to explain the new policy changes, the report said.

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BJ’s taps LogicSource for print procurement and management

BY Marianne Wilson

Norwalk, Conn. — BJ’s Wholesale Club has reached a multi-year agreement with LogicSource Inc. to provide enhanced print procurement and management services that will deliver significant cost savings to BJ’s. Terms were not disclosed.

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"The co-sourcing model offered by LogicSource is a great fit for us,” said Julie Reed, VP strategic sourcing and procurement and chief procurement officer. “Our onsite team will have the enhanced technology, processes, and resources they need to drive to the next levels of cost savings, innovation, and efficiency for BJ’s."

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Tuesday Morning reports 2Q loss, names new COO

BY CSA STAFF

DALLAS —Tuesday Morning reported that for the second quarter, the company’s net sales increased 4.5% to $285.3 million, from $273.1 million in the second quarter of fiscal 2012.

The company reportd that its net loss for the quarter was $21.5 million, or 51 cents per share. The company reported net income of $15.9 million or 37 cents per share in the second quarter of fiscal 2012.

Brady Churches, president and CEO, stated, "We are pleased with our initial sales progress, which was driven by enthusiastic customer response across a range of seasonal merchandise and well-received deals during the second quarter. This does not, however, obscure the challenges ahead, which includes the need for a major revitalization across every facet of our operations. While the company has taken some positive first steps in this regard, including a difficult but necessary inventory write-down, much work remains to restore Tuesday Morning’s core value proposition."

Comparable-stores sales increased by 5.6% compared to the second quarter of fiscal 2012 and were comprised of a 5.3% increase in average ticket and a 0.3% increase in traffic.

Earlier the company announced that John Rossler as EVP, COO, effective immediately. Rossler has been serving as an executive advisor to Tuesday Morning since October, 2012, and his focus has been primarily on operational efficiencies, including overall cost control, supply chain and real estate. His distinguished career in retail includes serving as president and CEO of DSW Inc. and Retail Ventures Inc.

"John Rossler is precisely the operational expert we need to help execute Tuesday Morning’s revitalization," said Brady Churches, president and CEO of Tuesday Morning. "From store operations to supply chain to improved real estate strategies, the company will benefit from John’s relentless attention to detail and proven retail track record."

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