The Supply Side briefs: Griddles recalled, retailers continue with store closures
by January 13, 2016 6:54 pm 106 views
• Wal-Mart recalls 330,000 griddles, citing electrical shock threat
Wal-Mart Stores Inc. is recalling 330,000 Rival brand griddles because they pose an electrical shock hazard, according to the Consumer Product Safety Commission (CPSC).
The risk with these kitchen griddles is a problem with cracks in the heating element which could lead to shocks if water gets inside while it’s in use or plugged into the electrical outlet.
The griddles were sold at Walmart stores nationwide and online between July 2015 and Dec. 2015 for about $20 on average. The CPSC said there has not been any injuries reported but they advise consumers to unplug and cease using these griddles immediately. The product can be returned to Walmart for refund.
• Finish Line to shutter 150 stores over three years
It’s that time of year when retailers re-evaluate their store fleets set out to find cost savings amid shrinking margins due to online competition and rising wages.
Finish Line announced last week that it is closing 150 of its 617 stores over the next three years. The stores slated for closure are deemed underperforming, generating roughly $1 million in annual sales, less than half the company average, said Edward Wilhelm, chief financial officer for the specialty retailer.
Finish Line President Samuel Sato said during the recent investor call that his chain has misfired in terms of merchandising, often not securing enough exclusive versions of those hot sneaker products to distinguish itself from rivals.
• Gap posts disappointing holiday sales, to close 175 stores
Gap announced plans to close about one-quarter of its stores (175 locations) in North America in 2016, after a disappointing holiday from the Old Navy and Banana Republic brands. Net sales for the company decreased 4% to $2 billion in the five-week period that ended Jan. 2.
Gap said its holiday sales declined 5% overall, with Banana Republic falling 9% from a year ago. Old Navy sales were down 7%. compared to posting an 8% gain in the year-ago period. Gap management said the 175 store closures and layoffs were expected to cost the retailer $150 million in the short term.
Simeon Siegel, senior retail analyst at Nomura Research, said in 2015 Gap warned investors all year that there would be challenges with the holiday.