Today in retail: GameStop strengthens its legal team
In retail today, Costco is trying to control costs as inflation continues to rise, while Gap’s muted sales report doesn’t scare off investors. Additionally, Petco is adding veterinary services through the acquisition of Thrive Pet Healthcare.
Costco competes on price via unusual ‘jewelry and tires’ product combination
Costco CFO and 38-year company veteran Richard Galanti highlighted the company’s expertise in jewelry and tires while discussing the retailer’s second fiscal quarter profits from its 872 clubs. – members-only warehouses and increasingly active digital sales, which grew by 12.6%.
Galanti also highlighted high single-digit gains in its largest online category, which includes electronics, appliances and televisions. Costco’s membership fees rose 10% last quarter and are now approaching a $4 billion annual revenue stream for the 46-year-old retailer.
With inflation at 7.5%, the highest level in the company’s history, the pressure to keep prices and costs low is unprecedented.
GameStop Appoints Duane Morris FinTech Legal Vet Cindy Yang
GameStop has named Duane Morris FinTech attorney Cindy Yang vice president and assistant general counsel as the company continues its transition from a brick-and-mortar video game store to an e-commerce technology marketplace.
In his new role at GameStop, Yang will work with the company’s general counsel, Mark Robinson, who previously served as deputy general counsel and chief ethics and compliance officer. He has worked at GameStop since 2015 and took over the legal position on a permanent basis in January.
Since the start of last year, GameStop has restructured its board and senior management, starting with the appointment of co-founder and CEO of Chewy pet market Ryan Cohen to the board, who focused on the digital transformation of the company.
Petco buys veterinary services for its stores
Petco, a California-based pet health and wellness company, has agreed to acquire a 50% stake in veterinary company Thrive Pet Healthcare, which serves more than 1.3 million pet families through year and operates nearly 100 veterinary hospitals in Petco stores in 14 states.
The acquisition provides “pet parents” with a one-stop solution for convenient, affordable and high-quality pet care. Petco and Thrive formed their partnership in 2017 to meet the needs of pets under one roof. They have launched full-service veterinary hospitals at Petco Pet Care Centers that promise high-quality veterinary services to pets and their parents in a convenient way.
Germany’s giant shoe snipes increase their footprint in the United States
German footwear and streetwear retailer Snipes’ U.S. expansion plans continued this week with the acquisition of New England-based sneaker company Expressions.
The deal gives Snipes ownership of Expressions’ 35 stores in Connecticut, Massachusetts and Rhode Island. The companies did not release terms of the agreement.
Snipes – owned by Germany’s Deichmann SE, Europe’s biggest shoemaker – is adding another American sneaker chain to its stable, following the acquisition of Jimmy Jazz late last year. The company now has 680 stores worldwide.
Gap sees inventory rise despite ‘muted’ sales report
Gap presented a positive earnings picture for the year despite “muted” sales caused by store closures and supply chain issues. The company – which also owns Old Navy and Banana Republic – said in its fourth-quarter earnings report that it expects its shipping issues to improve.
The company on Thursday (March 3) announced a loss of $16 million in the fourth quarter on sales of $4.53 billion, compared to $4.42 billion during the 2020 holiday season.
The company says Old Navy saw net sales in the fourth quarter partly due to supply chain impacts, up 2% from 2019, in line with the company’s November forecast. The Gap flagship store and Banana Republic both saw sales decline in part due to store closures.