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Kevyn Aucoin Beauty Re-Brands with Digital Focus TM The off-price platform for buyers and sellers. There’s a way to And then there’s manage your inventory. the right way. WHICH WILL YOU CHOOSE? Be efficient. Gain visibility. Get INTURN. LEARN MORE SEPTEMBER 6, 2017 3 BUSINESS A Target spokeswoman noted: “We have more than 120 stores in Florida and are currently anticipating the vast major- ity of them to be in the path of Hurricane Irma. This week, we’re providing stores Hurricane Irma Threatens with additional supplies that we know our guests need to stock up on, including water, batteries, flashlights, toiletries, camping supplies, cleaning supplies and Heavy Retail Impact non-perishable food. We’ll continue to push as many products to our stores as ● The storm could Puerto Rico we safely can before the hurricane hits. prepared for the We anticipate that Target stores will close provide a one-two onslaught of this weekend and will provide a store punch following Harvey. Hurricane Irma. closure list once it’s available. “We’ll work to reopen stores as quickly as BY SHARON EDELSON WITH possible, and have supply chain teams pre- CONTRIBUTIONS FROM EVAN CLARK paring to restock needed supplies as quickly as we can after the storm passes,” she said. As Hurricane Irma barrels toward Flor- “Target has a long-standing commitment ida and grows in strength, it threatens to to supporting our team and communities hit retailers even harder than when Har- before, during and after disasters.” vey flooded Houston just two weeks ago. A Kohl’s Corp. spokeswoman said of Some big chains, including Wal-Mart Hurricane Irma, “We are monitoring it at Stores Inc., are expecting to close more this point in time.” stores than they did in Texas and con- A J.C. Penney Co. Inc. spokesman said: sumers are primed to react quickly, given “Our teams are currently monitoring Hur- the wall-to-wall hurricane coverage and ricane Irma for any potential impact to J.C. forecasts that Irma will soon grow to be a Penney. We’ll continue tracking the storm’s potentially catastrophic category five storm. projected path over the coming days and Evan Gold, executive vice president for take all precautions to ensure the safety of global services at Planalytics, which tracks our associates and store locations. As with how businesses are impacted by weather, Hurricane Harvey, should Irma impact the said Harvey erased an estimated $1 billion communities we serve, the Golden Rule in retail sales. (That represents the actual Relief Fund — a program that provides sales lost, not purchase that were moved aid to associates experiencing financial up or deferred in the face of the storm). hardship caused by unforeseen situations “Irma by comparison is a larger storm such as natural disasters — will be available in terms of physical size,” Gold said. “It’s to assist associates in need.” a stronger storm and it’s taking aim at After Hurricane Harvey, the J.C. Penney Florida. It has the potential to impact a Company Fund committed to a $500,000 larger swath of land.” caused record-breaking flooding in and — water, flashlights, batteries and fuel grant to the Golden Rule Relief Fund, and Gold said consumers often go through around Houston, the resources — both cans. To help out with the Florida water as of last week, associates had contrib- “hurricane amnesia,” forgetting about financial and human — of some retailers situation, we’ve mobilized 800 truckloads uted an additional $25,000 to assist fellow past storms and not reacting to incoming and shopping centers could be strained by of water. Once again, we’re monitoring employees, the spokesman said. threats until the last minute. But with Irma. The storm’s negative impact to the and tracking the storm. We’re hoping for “Disasters don’t destroy demand, they Harvey so fresh in the mind, and the economy has been pegged by Accuweather that hard right turn in the Atlantic.” displace demand forward or back in time total fallout still being tabulated, he said at $160 billion, making it more costly than This wouldn’t be the first time Wal- or online, just as homeowners in Florida consumers appear to be stocking up now. Hurricanes Katrina and Sandy combined. Mart has dealt with two major hurricanes are now stocking up before Irma arrives,” That pattern could accelerate with more “Right now, we’re looking at a potential almost back-to-back. Hurricane Katrina, said Craig Johnson, president of Customer hurricane headlines as Irma hits Puerto impact to 400 stores” due to Hurricane the 2005 category five storm, was con- Growth Partners LLC. “Houston saw a Rico Wednesday. Irma, a Wal-Mart spokesman said. That’s sidered at the time to be the costliest shortfall in August retail sales of $1.6 Irma could cause life-threatening winds, far more than about 125 Wal-Mart, Sam’s weather event in the country’s history, billion, some 15 percent below normal storm surges and rainfall hazards to north- Club and Neighborhood Market stores, with an estimated $75 billion in damage monthly sales of $10.5 billion. With most eastern Leeward Islands Tuesday, the Virgin which were closed for several days due to to New Orleans and the Mississippi coast. stores open by Aug. 31, the shortfall is Islands and Puerto Rico today, according to Harvey. Katrina was followed two weeks later by already reversing out.” the National Hurricane Center. Hurricane The procedures for preparing for Hur- Rita, another category five hurricane that Online sales continued wherever watches were issued for the Dominican ricane Irma are “very similar to Harvey, devastated parts of southeastern Texas consumers had connectivity, and will nor- Republic, Haiti, the southeastern Bahamas, where we put in place an emergency and southwestern Louisiana, and signifi- malize as soon as homeowners return to and Turks and Caicos on Tuesday. center,” the Wal-Mart spokesman said. cantly impacted the Florida Keys. their residence and any last-mile delivery Irma could directly impact the Bahamas “We have an emergency center activated “We’re able to communicate with issues are resolved. Even if only 200,000 and Cuba as “an extremely dangerous for this one [Irma] as well.” the people in the Texas region,” the automobiles of the 500,000-plus vehi- hurricane later in the week,” the National “We’re working with our operations spokesman said, “and we’re moving into cles damaged by Harvey are replaced at Hurricane Center said. team on the ground as people are prepar- preparation mode for Irma. With the a blended average of $27,000 each, $5.4 Coming so close on the heels of Hurri- ing for the storm,” he said. “We’re making emergency operations center in place, billion in sales will be generated in the cane Harvey, a category four storm that sure we have the products people need we’re able to speak to both regions.” coming weeks, Johnson said. BUSINESS Hudson’s Bay Sees Sales Inch Up; Posts Wider Loss ● The Saks Fifth Avenue and Gilt percent. Consolidated comparable sales executive chairman Richard Baker to that reorganized its corporate teams and parent saw online sales grow also inched up by 0.4 percent. admit HBC is “optimistic about the cut 2,000 jobs in an effort to create 350 Earnings before interest, taxes, depre- remainder of the year.” million Canadian dollars in annual savings. by double digits and is gaining ciation and amortization came in at 207 “The current retail environment pro- That plan was rolled out along with hutterstock S million Canadian dollars, compared to 263 vides both challenges and opportunities, first-quarter earnings that showed HBC’s X/ ground in luxury. RE million last year. and while it was a tough second quarter as net loss had grown to 221 million Canadian / BY KALI HAYS Sales got a boost from digital, where con- expected, we continue to make the smart dollars from 97 million Canadian dollars in EFE - solidated revenue increased 12.7 percent, decisions necessary to succeed in this rap- the first quarter of 2016, on total retail sales EPA The Hudson’s Bay Co. is still mid-”trans- but also from three new Saks locations and idly evolving landscape,” Baker added. down by 3 percent to 3.2 billion Canadian formation,” but its second-quarter sales 26 new Saks Off 5th locations. He also alluded to the possibility that dollars. are showing signs of improvement. The company pointed to handbags and some HBC real estate will be sold this “In these rapidly changing times, you The department store chain and oper- men’s as top performers at Saks and said year, saying “HBC has a long, successful need to react fast to the market,” HBC’s ator of Lord & Taylor, Saks Fifth Avenue full-price sales in women’s showed a “nota- history of accretive transactions with chief executive officer Jerry Storch said at and Gilt posted a net loss of 201 million ble increase.” our real estate assets and we are actively the time. Canadian dollars ($162.3 million), an For the rest of the year, HBC said it will exploring further opportunities to build HBC noted that the reorganization is ico photograph by Llorca/ by ico photograph R increase from 142 million Canadian dollars be focused on the digital presence of its on this track record.” “progressing as expected,” but that it will a year ago, on total retail sales of 3.3 banner stores. The results follow HBC’s decision earlier have “a much larger impact” on the latter uerto uerto P billion Canadian dollars, which are up 1.2 The second-quarter results led this year to create a “transformation plan” half of the year.
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