Costco same-store U.S. sales rise 9 percent during quarter – While many retailers are fighting to keep their heads above water, Costco Wholesale’s latest figures prove a tight economy means relatively smooth sailing for the Issaquah-based company. Costco’s fourth-quarter profit rose 6.8 percent to $397.8 million, and revenue increased 12.8 percent to $23.1 billion. Stephanie Hoff, senior retail analyst with Edward Jones in St. Louis, said Costco’s sales will be a mixed bag in coming months: Necessities like food, which the retailer packages in bulk, will continue to fly off the shelves, but the chain’s electronics and apparel items will be harder to sell over the holidays. [Source: The Seattle Times]
Cold weather forecasts could warm frigid consumers — Good news for retailers has been sparse over the last several weeks, but if Storm Exchange Inc.’s recent predictions for a cold winter prove true, sales could receive a much-needed boost. Storm Exchange reports year-over-year temperatures in the Midwest and Northeast have a 90 percent probability of increasing this month, giving apparel retailers a prime opportunity to sell winter wear. “Cold temperatures are a critical driver of consumer shopping behavior in September and October,” said Paul Walsh, Storm Exchange chief strategy officer. [Source: Market Watch]
Walgreens withdraws bid for competitor — In an admittance of defeat, Walgreens officially withdrew its unsolicited $2.8 billion bid for Longs Drug Store on Oct. 8. Walgreens CEO Jeffrey Rein said Longs refused to “engage in a constructive dialogue,” adding that the decision to remove the bid from the table was made in the best interest of Walgreens’ shareholders, customers, and employees. Longs agreed to be acquired by CVS Caremark, Walgreens’ biggest competitor, for $2.7 billion in September. Although Walgreens’ bid was heavier, Longs officials said striking a deal with the chain would require a time-consuming antitrust review, which they wanted to avoid. [Source: The Chicago Tribune]
Music retailer hunting for new CEO — The online retailer eMusic.com will be operating to a new tune now that CEO David Pakman, who helped the site amass roughly $70 million in revenue, has accepted a position at a Big Apple investment firm. The music retailer, which boasts a catalog of more than 4 million tracks, is seeking a new CEO to take its reins when Pakman departs at the year’s end. [Source: internetretailer]
