New executives named to NRF board
NEW YORK — The National Retail Federation has announced the newest executives elected to serve on its board of directors. The announcement was made during NRF’s 101st Annual Convention in New York. Each new board member will serve a three-year term. Macy chairman, president and CEO Terry Lundgren was re-elected to serve another full-year as chairman of the NRF board.
The new executives elected to serve on NRF board of directors include:
Thomas Belk, Belk chairman and CEO;
David Jaffe, Ascena Retail Group president and CEO;
Craig Levra, Sport Chalet chairman, president and CEO;
David Ratner, president of Dave’s Soda and Pet City; and
Laura Sen, BJ’s Wholesale Club president, CEO and director.
Additionally, the following executives were elected to the NRF board of directors as representatives of the associate member advisory council. Each will serve a one-year term.
Bill Gonzalez, Microsoft general manager of worldwide distribution and services;
Karen Lowe, IBM general manager of global retail industry;
Ramón Martín, American Express president of merchant services Americas; and
Alison Paul, Deloitte & Touche LLP principal.
“These distinguished additions to the NRF board of directors will further position NRF as the leader on issues that impact the retail industry and the American consumer,” NRF president and CEO Matthew Shay said. “The collective level of experience and professionalism these new Board members bring to the table will complement the stellar list of executives who have been representing NRF’s members, our community and our industry.”
Stop & Shop answers call of cost-conscious customers
QUINCY, Mass. — Stop & Shop has reintroduced its Guaranteed Value product line in an effort to help customers on a budget.
The line, which includes about 200 items, touts prices that are an average of 20% to 25% less than national brands. What’s more, 60% of the items cost $2 or less. What’s more, packaging for items that are part of Guaranteed Value have undergone a makeover, with the yellow, blue and red packaging being replaced with a bright orange and white design that highlights the value offered with each product.
“With rising food and gas prices, customers are seeking more savings than ever and our Guaranteed Value products offer customers the ability to save on many of the items they need at prices family budgets demand,” Stop & Shop spokeswoman Suzi Robinson said. “We continue to quality test and improve on all of our Guaranteed Value products to ensure customer satisfaction.”
Target holds off sale of credit card business
MINNEAPOLIS — Target announced that it has temporarily suspended its efforts to sell its credit card receivables portfolio. The company said it remains committed to selling the portfolio on appropriate terms, but based on discussions with potential partners the company has determined that it is not in its best interests to finalize a transaction at this time. Later in 2012, the company said it expects to re-engage in discussions with a limited number of potential partners, and expects to be well-positioned to streamline those conversations based on the groundwork established in its 2011 efforts.
Target also announced that it intends to retire the 2008 receivables financing provided by Chase Card Services, a subsidiary of JPMorgan Chase. In 2011, Chase provided Target an option to retire this financing, and this option expires at the end of January. Retiring this financing, prior to its expected payoff in late 2013, will allow Target to market the portfolio when the company resumes partner discussions later in 2012. Target will pay Chase approximately $2.8 billion to retire this financing, along with a make-whole premium that will reduce fourth quarter 2011 earnings per share by approximately 8 cents. Target anticipates it will recoup some or all of the cost of this premium through lower expected interest expense in 2012 and 2013.
“Our desire to sell the portfolio on appropriate terms remains the same today as it was when discussions began, but we believe that now is not the time to finalize a transaction,” Target EVP and CFO Doug Scovanner said. “We believe a pause in discussions until later in 2012, combined with repayment of the Chase Card Services financing, will enable Target to reach an agreement with a high-quality financial partner on acceptable terms.”
In January 2011, Target announced that it intended to actively pursue a sale of its credit card receivables portfolio, and that if an appropriate transaction were to occur it likely would be achieved late in 2011 or early in 2012. The company now believes a transaction could occur in late 2012 or early 2013, about a year later than originally expected.