Latest news with #NeilSaunders
Daily Mail
9 hours ago
- Business
- Daily Mail
Nike rival plots layoffs while assessing how to pay for US tariffs… as layoffs spread
A major Nike rival will axe 150 workers — and it may replace them with AI. Lululemon, the Canada-based athleisure brand known for its buttery-soft leggings and sweat-wicking men's shirts and pants, confirmed that it is eliminating roles on its support centre team. The affected employees handled customer service calls — including questions about online orders, return policies, and sizing options — as well as technical support for brick-and-mortar locations. 'As we continue to deliver on our strategy, we regularly assess our business operations to ensure we are well-positioned for the future,' a company spokesperson told 'Following a recent review, we have decided to evolve some aspects of our organizational structure to operate with more agility and further invest in our growth.' Independent retail analysts told CBC they believe the company will turn to AI to fill the gap. The company did not answer questions about its future AI policy. Lululemon's support centre roles are exactly the kind of formulaic, repeatable tasks that advanced computers are designed to handle. Independent retail analysts don't believe the job cuts indicate any issues for the brand. Still, under the hood, there are concerns. 'They are now struggling to generate growth in their core North American market,' Neil Saunders, a retail expert at GlobalData, told 'With costs rising, including from tariffs, Lululemon is gently pruning roles to keep costs in check.' The layoffs also come as the company reassesses its tariff strategy. A majority of Lululemon's products are made in Vietnam, Thailand, and Indonesia — countries that could face sweeping reciprocal tariffs if President Donald Trump reinstates them. In June, the company's CFO, Meghan Frank, admitted that the brand would need to raise prices to offset the levies. 'We are planning to take strategic price increases,' Frank said during the company's last earnings call. 'It will be price increases on a small portion of our assortment, and they will be modest in nature.' Price hikes are expected in stores in the fall. Lululemon pulled in $2.4 billion in revenue during its last quarter, but a majority of the company's growth came from international markets. The company currently operates 465 stores in the US and 760 globally. Jobs jettisoned Some of America's biggest companies have announced sweeping job cuts this year. In May, Walmart — America's largest employer — announced it was cutting 1,500 jobs from its tech operations and e-commerce teams. Procter & Gamble, the owner of Tide detergent and Gillette shaving products, is also undergoing significant cuts. The company said it would eliminate 7,000 positions. Job losses have been even more pronounced in the tech sector, as firms increasingly replace human employees with hyper-intelligent machines. The AI-driven job bloodbath marks a major shift for American workers. For years, mass layoffs were concentrated in US manufacturing plants. Now, they're impacting college-educated, high-to-middle-class earners. Microsoft — one of the leading firms investing in AI — is expected to lay off thousands of employees next month as it shifts resources toward deeper investments. Intel, the flagging tech giant, is also letting go of 10 to 15 percent of its manufacturing staff. Amazon CEO Andy Jassy recently said the quiet part out loud: the technology will uproot thousands of Americans from their jobs. 'As we roll out more Generative AI and agents, it should change the way our work is done,' he wrote to his employees in a memo. 'It's hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce.' So far, the cuts haven't had a statistically significant impact on overall job numbers in the US. Last month, employers continued to add jobs.
Daily Mail
3 days ago
- Automotive
- Daily Mail
Costco unveils all new type of store in huge leap for brand... and members will be delighted
Costco is about to do something it's never done before — open a gas station without the store. The membership-only retailer is planning to open its first standalone gas station in the spring of 2026 at the Mission Viejo Freeway Center. The site will take over a former location of the now bankrupt Bed Bath & Beyond location at the Mission Viejo Freeway Center. Unlike its usual gas setups outside warehouse stores, this station will operate solo — no convenience store, no big-box shopping required — just fuel. It will feature 40 gas pumps and cater exclusively to Costco members. Shoppers are already buzzing about the move. 'I think this is a great idea for members since they already have the logistics and it will hopefully make the store stations less crowded,' a Reddit user wrote. Others called the project an 'absolute win' and urged Costco to roll out more standalone stations — perhaps with car washes or mini-marts attached. The news comes after Costco announced it would expand its gas station hours. Weekday hours are 6am to 10pm, and are open from 6am to 8.30pm and 7.30pm on Saturdays and Sundays. While several social media users were thrilled about the news, others questioned Costco's decision. A few Reddit users insisted the station will be in a 'terrible location' while others didn't believe it was as important as Costco stores themselves. However, Neil Saunders of GlobalData revealed this concept could work in the retailer's favor as its cheap gas prices is a reason why the chain is 'wildly popular.' 'Costco is building a new stand-alone location in Orange County to help manage demand that can't be serviced at the station by its store,' Saunders told 'If successful, there are other locations where this could be implemented.' Costco competitors like Sam's Club and Walmart have added gas stations to select locations for its customers. Sam's Club's fuel stations are primarily for members, but some locations are also open to the public. Walmart operates over 400 fuel and convenience stores nationwide and is opening 40 to 45 stations this year. A few customers believed the gas station wouldn't make a difference and that it would be in a 'terrible' location Costco competitors are undergoing massive revamps such as self-checkout axing for AI technology to in-store makeovers. However, the warehouse store is also making changes of its own, some of which have infuriated its members. The company made headlines after confirming its decision to swap Pepsi for Coca-Cola. The first Coke machine was installed at one of its newest stores in California, and more will be added to food courts nationwide later this summer. Members were also disappointed by significant menu changes and claimed the chain hiked its food court prices. Some new features that left its exclusive membership holders smiling include earlier shopping hours and a $10 monthly delivery credit.
Yahoo
3 days ago
- Business
- Yahoo
At Home blames bankruptcy on tariffs, consumer uncertainty
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Citing a host of challenges — including the pandemic, supply chain disruptions, inflation and tariffs — furniture retailer At Home on Monday filed for Chapter 11 in the U.S. Bankruptcy Court in Delaware. The company is also in financial straits, with $2 billion in debt, which would be wiped out thanks to an agreement with nearly all lenders. At Home also has an agreement for $600 million in debtor-in-possession financing — a $200 million infusion for the restructuring and beyond, plus a roll-up of $400 million in existing senior secured debt. The filing comes at a tough time for a retailer dependent on seasonal business: In its latest fiscal year, 40% of its net sales came from holiday and seasonal decor and accessories, per court filings. Once At Home exits bankruptcy, many of the uncertain macroenvironment and supply chain issues it describes as factors in its filing will still be there to challenge it further. In court papers, the retailer said that, while demand spiked during the pandemic, supply chain disruptions and freight costs were burdens. Later, demand cooled significantly, in part because of inflation rates and a depressed housing market. 'These dynamics are unlikely to change in the near term,' GlobalData Managing Director Neil Saunders said in emailed comments. In-store traffic fell about 24% at the start of this year, compared to pre-pandemic averages in 2020, according to a statement from Chief Financial Officer Jeremy Aguilar. 'Even as consumer spending generally improved in the latter half of 2024, I understand that consumers tended to spend their dollars on essentials (as opposed to home decor and similar products offered by At Home) due to economic uncertainty and reduced consumer confidence,' Aguilar wrote in a court filing. With about 90% of its products from overseas, tariffs have been a particular challenge for At Home. 'While At Home has had to deal with tariffs for some time given the nature of its business, the volatility of the current tariff environment came at a time when the management team was working to address the company's existing issues,' per the filing. 'These newly imposed tariffs and the uncertainty of ongoing U.S. trade negotiations intensified the financial pressure on the company, accelerating the need for a comprehensive solution.' The retailer, founded in 1979 as Garden Ridge Pottery and later shortened to Garden Ridge, previously filed for bankruptcy in 2004. In 2014 the company was renamed At Home. Four years ago, private equity firm Hellman & Friedman acquired the company for $2.8 billion, including debt. At Home runs 260 stores across 40 states, averaging about 105,000 square feet per store, plus e-commerce facilities; each year 70 million customers visit its stores, which generate about 93% of sales revenue, and about 53 million customers visit its website. The average price point per product is under $20 with a typical customer spend of about $75 per visit, per court filings. About 7,170 people work in its retail stores, corporate offices and distribution centers. The always-low-prices strategy isn't enough for a sector with hard-hitters like Ikea and Wayfair, according to Saunders. 'There is way too little inspiration and not nearly enough excitement to draw people into the stores — particularly in areas where competition is high,' he said. 'Nor are prices all that sharp to provide a reason to choose At Home over other players.' The dependence on brick and mortar has been a drag on profits in recent years. The company cut back on new store openings 'due to low brand awareness, weak consumer demand, and mixed new store execution,' Aguilar said. But 'underperforming stores remain a part of At Home's portfolio,' in part because some of those locations are still under lease. The company's massive debt has been its biggest issue, but — given ongoing economic uncertainty and stiff competition — not its only one. 'Chapter 11 will not solve these problems and while the debt reduction will buy time, At Home needs to go back to the drawing board to assess its wider business model,' Saunders said. Recommended Reading Five Below to convert hundreds of stores to higher-priced concept
Yahoo
3 days ago
- Business
- Yahoo
Home Decor Giant Struggles with Tariff Pressures
Retail sellers have been in inconsistent territory lately, as buying trends and consumer sentiment shifts reflect an uncertain economy. Retail Insight Network recently suggested that, in the coming months, retailers will watch closely 'as the effects of tariffs, inflation, and interest rates continue to shape purchasing patterns.' And for one major purveyor of home goods, it seems all of these issues have been problematic – so much so that it's filing for bankruptcy. Most Read on IEN: Auto Giant Files for Bankruptcy, Blames Tariffs Ship Carrying 3,000 Vehicles Abandoned in Pacific Ocean Yaskawa Moving Headquarters from Illinois to Wisconsin PODCAST: Deere Clears the Air; Battery Factory Halted; P&G Cuts 7,000 At Home is a retailer that was first established way back in 1979 and has grown significantly since. The brand was acquired a few years back by a private equity firm for $2.8 billion and operates more than 260 stores with 7,000+ employees. So why is At Home filing Chapter 11? The company says that after gaining a boost from pandemic spending, it was saddled with heavy freight costs and supply chain disruptions. As demand started to wane due to inflation, the business accumulated some $2 billion debt. Company leaders say today's consumer spends less than they did a few years back, due to reduced confidence and economic uncertainty. The other issue, said At Home, is tariffs: the company sources 90% of its goods from overseas, according to Retail Dive, and this volatility of the current environment added significant pressure at a time when At Home was trying to solve its other problems. So, instead, the problems will be addressed through the bankruptcy proceedings: according to reports, its $2 billion in debt will be wiped out based on agreements that have been reached with many lenders. The home decor and furniture seller will also close 26 stores. Brad Weston, CEO of At Home said the company's recent efforts "will improve [its] ability to compete in the marketplace in the face of continued volatility and increase the resilience of [the] business for the long term." That said, some experts are less optimistic about the path forward for At Home. CBS News quoted Neil Saunders, managing director of GlobalData, who said that even if the retailer is able to tackle its debt, the dynamics that are contributing to the purchasing slowdown are 'unlikely to change in the near term.' Click here to subscribe to our daily newsletter featuring breaking manufacturing industry news. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Int'l Business Times
3 days ago
- Business
- Int'l Business Times
At Home Files for Bankruptcy, Set to Close 26 Stores by Fall
At Home, the Texas-based home décor and furniture retailer, has filed for Chapter 11 bankruptcy and announced plans to close 26 of its stores by September 30, 2025. The move comes as the company struggles with high debt, rising costs, and changes in consumer spending. In court documents filed Monday, At Home blamed "persistent inflation," higher interest rates, and rising tariffs for its financial problems. The company also said that several of its stores were not performing well, making it hard to keep all locations open. Brad Weston, CEO of At Home, said in a statement that the bankruptcy process will help the business survive long term. "These changes will improve our ability to compete and increase the resilience of our business," he explained. According to CNN , the company also said it has reached an agreement with its lenders to cut down nearly $2 billion in debt. As part of that plan, it will receive $200 million in new funding to keep stores running during bankruptcy. At Home Shuts Down Stores Across US, New Owners Step In The company is based in Coppell, Texas, and operates over 260 stores across 40 states. Despite the bankruptcy, At Home said it will continue normal operations, including processing orders and honoring its loyalty program. However, a small group of hedge funds and investment firms in New York and California will now take over ownership of the company, USA Today said. So far, 26 store locations are confirmed to close by fall. These include locations in New York, California, Florida, Washington, and other states. Six stores had already shut down over the past year. Retail experts say At Home's troubles are not unique. Other big chains like Big Lots, Joann Fabrics, Macy's, and Party City have also faced recent store closures or bankruptcy. Analyst Neil Saunders noted that At Home struggled to stand out in a crowded market. "Its offerings aren't exciting enough to attract customers in areas with strong competition," he said. Originally published on
