By Staff -- Home Textiles Today, 10/1/2007 12:00:00 AM
Target Cuts Comp Outlook
Back-to-school failed to galvanize consumers, and Target was among the retailers pulling back. The 1,537-unit upscale discounter cut its September comp sales estimate from the 4% to 6% range to a modest 1.5% to 2.5%. Target said the trend was "primarily attributable to weaker guest traffic in September vs. our year-to-date trend," adding, "Sales results in Florida and the Northeast are somewhat weaker than the rest of the country." Actual results will be reported Oct. 11.
Fortunoff Taps Merchant Vernon
Dave Vernon has joined Fortunoff as executive vp/gmm home, reporting to Arnie Orlick, ceo. He was senior vp, textiles, Macy's Home Store group, joining Macy's in 2004 from the then Florida-based Burdines division of Federated. Orlick said, "It's a pleasure to work with somebody of his talent. I have had enough on my plate as merchant and operating head to accomplish the goals that we have."
Wal-Mart Tests Vendor Carbon Output
Wal-Mart will launch a pilot program with the Carbon Disclosure Project to monitor the carbon emissions impact of its supply chain, starting with seven everyday product categories: DVDs, toothpaste, soap, milk, beer, soda, and vacuum cleaners. "This is an opportunity to spur innovation and efficiency throughout our supply chain," said John Fleming, evp and chief merchandising officer, Wal-Mart Stores Division. CDP chief executive Paul Dickinson noted, "Wal-Mart will encourage its suppliers to measure and manage their greenhouse gas emissions, and ultimately reduce the total carbon footprint of Wal-Mart's indirect emissions."
TJX Settles ID Theft Suit
Looking to recover customer relationships in the wake of a massive computer hack, The TJX Cos. has entered into a settlement agreement, subject to court approval, for class actions in the U.S., Canada and Puerto Rico. Millions of TJX shoppers were subjected to identity theft and some had debit or credit cards fraudulently used. Estimated settlement costs were previously reflected in TJX's fiscal 2008 2Q charges and estimated fiscal '09 non-cash costs. TJX has established helplines: (866) 484-6978 (and (866) 903-1408 in Canada) regarding the settlement.
Bombay Company in Chapter 11
After three years of mounting losses, specialty retailer The Bombay Company filed for Chapter 11 last month, in the Fort Worth Division of the U.S. Bankruptcy Court for the Northern District of Texas. The company secured $115 million in DIP financing, and said it hopes to identify a "strategic or financial investor." The news came on the heels of Bombay's $52.8 million loss for the year ended Feb. 3 and a loss of $15.4 million for the first quarter ended May 5. Bombay ceo David Stewart said, "This course of action was seen as the best route to help preserve our internationally respected brand while working to secure our future."
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