Today in Retail: GameStop Beefs up Legal Team; Snipes Acquires Expressions to Expand US Footprint
Today in retail, Costco tries to control costs as inflation continues to rise, while Gap’s muted sales report doesn’t scare investors. Plus, Petco adds vet services through the acquisition of Thrive Pet Healthcare.
Costco Competes With Itself on Price via Unusual ‘Jewelry and Tires’ Product Mix
Costco CFO and 38-year company veteran Richard Galanti highlighted the company’s expertise in jewelry and tires while discussing the retailer’s fiscal second-quarter earnings from its 872 members-only warehouse clubs and increasingly active digital sales, which were up 12.6%.
Galanti also pointed to high single-digit gains in its largest online category, which consists of electronics, appliances, and TVs. Costco’s membership fees rose 10% last quarter and are now approaching a $4 billion annual source of revenue 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 down is unprecedented.
GameStop Appoints FinTech Legal Vet Cindy Yang from Duane Morris
GameStop appointed Duane Morris FinTech attorney Cindy Yang as vice president and assistant general counsel as the company continues its move from a brick-and-mortar video game store to an eCommerce technology marketplace.
In her new role at GameStop, Yang will work with the company’s general counsel, Mark Robinson, who was formerly assistant general counsel and the chief ethics and compliance officer. He’s been with GameStop since 2015 and took over the top legal role permanently in January.
Since early last year, GameStop has been restructuring its board of directors and senior management, starting with the board appointment of eCommerce pet marketplace Chewy co-founder and CEO Ryan Cohen, who has focused on the company’s digital transformation.
Petco Buys Veterinary Services for its Stores
California-based pet health and wellness company Petco has agreed to purchase a 50% stake in veterinary firm Thrive Pet Healthcare, which serves more than 1.3 million pet families annually and operates almost 100 veterinary hospitals at Petco stores in 14 states.
The acquisition gives “pet parents” a one-stop solution to convenient, affordable, high-quality pet care. Petco and Thrive formed their partnership in 2017 to meet pet needs under one roof. They launched full-service veterinary hospitals in Petco pet care centers that promises high-quality veterinary services to pets and their parents conveniently.
German Shoe Giant Snipes Growing US Footprint
German footwear and streetwear retailer Snipes’ U.S. expansion plans continued this week when it acquired Expressions, a sneaker company based in New England.
The deal gives Snipes ownership of Expressions’ 35 stores in Connecticut, Massachusetts and Rhode Island. The companies did not release the terms of the deal.
Snipes — owned by Germany’s Deichmann SE, Europe’s largest shoemaker — adds another U.S. sneaker chain to its stable, following its acquisition of Jimmy Jazz late last year. The company now has 680 stores worldwide.
Gap Sees Stock Rise Despite ‘Muted’ Sales Report
Gap presented a positive profit 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 Q4 earnings report that it expects its shipping issues to improve.
The company on ahead Thursday (March 3) reported a fourth-quarter loss of $16 million on sales of $4.53 billion, up from $4.42 billion during 2020’s holiday season.
The company says Old Navy saw its fourth-quarter net sales muted in part due to supply chain impacts, up 2% over 2019, in line with what the company predicted in November. Gap’s flagship store and Banana Republic both saw sales decline in part due to store closures.