Retail round-up: Law firm appointed to examine former BHS directors; Macy’s store closures; and Sports Direct’s rising staff turnover rate
Law firm Jones Day to help FRP probe conduct of ex-BHS directors
FRP Advisory has hired law firm Jones Day to examine the conduct of former BHS directors in the period leading up to the high-street retailer’s collapse, according to Sky News.
Jones Day is set to help FRP, which was given the joint administrator role to BHS by the Pension Protection Fund, investigate transactions involving BHS before Arcadia tycoon Sir Philip Green sold the department store chain to Retail Acquisitions for just £1.
Staff turnover at Sports Direct surged to 22% in 2015
Mike Ashley-owned Sports Direct has revealed in its annual report that turnover among its salaried UK staff including those working at its headquarters and managers in its stores increased by more than three percentage points to 22% in 2015.
The figure is almost three times the average turnover rate of 8% for UK employers, according to a survey last year by the Chartered Institute of Personnel and Development.
The sportswear retailer stated: “Store manager stability with Sports Direct is currently sitting at 80.4%, this is a decrease of 12 [percentage points] on the [2015 full year] figure.
"Assistant manager and footwear manager stability currently sit at 79.8% and 83.5% respectively, which is a decrease of six [percentage points] and seven [percentage points] across the positions.”
Macy's set for store closures as sales and profits fall
Macy’s has confirmed its plans to shut about 100 stores next year in the wake of falling sales, The Guardian reported.
The US retailer revealed that it would instead focus on boosting its online investments and increase its exclusive products.
Macy’s said its profits fell to $11m (£8.47m), or 3 cents a share, in the second quarter, compared with $217m or 64 cents a share in the same period a year earlier.
Turnover at the department store chain slipped 3.9% to $5.87bn in the three months ended July 30. Revenue at stores open at least a year, including licensed businesses such as beauty, fell 2%.
The company, which operates the upscale Bloomingdale’s stores, said it would prioritise its investments in stores that offer the highest growth potential.
“The announcements we are making today represent an advancement in our thinking on the role of the stores, the quality of the shopping experience we will deliver, and how and where we reinvest in our business for growth,” said Macy’s president Jeff Gennette, who will succeed Terry J Lundgren as chief executive in the first quarter of 2017.