jikAmerican Apparel Says Former Founder, CEO Dov Charney Under Investigation By SECde

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(smcgee)

Any hope founder of American Apparel Dov Charney had of returning to the company may have gone out the window this week, after it was revealed that the Securities and Exchange Commission opened an inquiry into the circumstances leading to his departure.

The New York Times reports that American Apparel learned last month that the SEC had begun an investigation in matters related to Charney’s conduct while at the company, including the handling of company finances.

The company said in a filing this week that the investigation was initiated “with respect to matters arising from” the internal review into Charney’s behavior. American Apparel says it will cooperate fully with the investigation.

In June 2014 when Charney was first ousted, the company said that he was fired for allowing employees to be publicly shamed and for just being a jerk in general.

Company documents publicized after the initial ousting suggested that Charney misused company property and funds. In some instances, the board says Charney used American Apparel money to pay for family members’ travel, as well as letting friends use homes paid for by the company when they weren’t being used by Charney.

Problems continued to arise for Charney while he was acting in a consultant capacity for the company. Soon after he was suspended by the board, a video hit the Internet that purportedly showed him dancing around naked in front of employees.

Finally, in December, American Apparel announced that Charney would officially leave the company following an internal investigation for “alleged misconduct and violations of company policy.”

At the time, the company said “it would not be appropriate for Mr. Charney to be reinstated as CEO or an officer or employee.”

Dov Charney in S.E.C. Investigation, American Apparel Says [The New York Times]

by Ashlee Kieler via Consumerist

jikBanks Aren’t Really Going To Replace Everyone’s Credit Cards This Yearde

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(Jeremy P)

Hey, remember how the major credit card companies were going to replace all of our magnetic stripe credit cards sometime this year with computer chip cards sometime this year? You know, like what the rest of the world uses? That isn’t happening. We’ll get our computer-chip cards, sure, and some retailers might be able to read them. However, banks might take until 2017 or so to replace all of our cards.

Yes, 2017. It’s possible that your bank or credit union might be waiting to switch out your current credit and ATM card when it expires, which pushes the date to convert the entire country out to 2017. CNN reports that one estimate is that maybe a quarter of all cards in the U.S. will actually be replaced by the end of 2015. (Warning: auto-play video)

Bank of America told CNN that most of its cards will be chip-laden by the end of the year, but not all of them. Not that it matters all that much, anyway: while cards with chips are safer from being cloned, that doesn’t mean baddies can’t get hold of your card number and go on an online shopping spree.

However, merchants might be the losers in this scenario: they have to replace their card readers, which will cost at least a few hundred dollars per cash register, or be liable for any fraudulent purchases made in their stores.

You’re about to get a new credit card … and it’s an epic failure [CNN] (Warning: auto-play video)

by Laura Northrup via Consumerist

jikWalmart Entices Shoppers To Try Online Grocery Pickup With Discountsde

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(KFSM)

Does the idea of placing an online grocery order at Walmart and then simply visiting the store to pick it up appeal to you? Walmart is now experimenting with a few pilot stores where you can do just that, and now they’re experimenting with special discounts to get customers to try it out.

Offering discounts for online orders makes sense: while they have to employ order pickers, a facility like Walmart’s new pickup-only grocery store near its mothership in Arkansas only needs to have pickup kiosks and a warehouse: there’s no need for retail aisles, pretty displays, or even cashiers. That could make pickup-only grocery more profitable…assuming that enough customers decide to try it.

In the industry, this kind of setup has a terrible acronym: BOPIS, or “buy online, pick up from store.” Walmart sent out e-mails offering $5 off any purchase or $10 off a $50 purchase to persuade customers to give it a try.

While ordering online and picking up at the store normally doesn’t save shoppers any time, in the case of a full grocery order that may be different. The Pickup Grocery test store is in Arkansas is a retail laboratory of sorts that’s meant to test this concept for possible implementation everywhere.

Wal-Mart uses discount to woo more consumers to pickup format [City Wire] (via RetailWire)

by Laura Northrup via Consumerist

jikMacy’s CFO: Sales Are Sluggish Because Women Don’t Want To Put Makeup On To Shop Therede

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(The Caldor Rainbow)

You there, with the bare lips and the TJ Maxx bag binge-watching Scandal online: Did you decide to skip Macy’s and head to an off-price store because you just couldn’t bear to tear yourself away from Netflix and put your face on that day? Macy’s CFO seems to think an aversion to lipstick and millennials’ love of digital content (among other things) is funneling customers away in favor of off-price stores, leading to sagging sales.

Macy’s reported 1.8% increase in revenue last quarter to $9.36 billion fell short of analyst expectations, and it’s the fault of those makeupless women and millennials shopping with mobile devices, Macy’s CFO Karen Hoguet explained during an industry conference on Tuesday, as reported by MarketWatch.

“We did some consumer research, and the customers said, she likes going to the off-price retailers because she doesn’t have to put lipstick on,” Hoguet said, according to a transcript of the event cited by MarketWatch, implying that said customer would feel pressured to slap on the war paint to go to Macy’s.

Along with that is the growing consumer trend of shopping for electronic devices and services like streaming media, and millennials’ habit of using mobile phones to shop instead of going into bricks-and-mortar stores, she added.

“I think part of that is the customers are buying other things, whether the electronics, cable services, Netflix, whatever,” she said, all things Macy’s doesn’t sell. There doesn’t seem to be any actual data linking the popularity of Netflix or other services to the downward slide of physical retail stores, however.

Macy’s is trying to remedy by that luring millennials into stores, where the retailer has had success selling them impulse purchases like cosmetics (need that lipstick to go shopping, natch), shoes and apparel. In an attempt to make that happen, Hoguet says Macy’s is focusing on getting millennials on board when they get engaged, and then keeping them once they’re hooked on flatware and bed skirts.

Macy’s didn’t offer MarketWatch a comment on Hoguet’s reported remarks, shoppers who hate putting on lipstick, or a link between paying for a monthly digital content subscription.

Macy’s CFO blames millennials, Netflix and lipstick haters on shifting retail landscape [MarketWatch]

by Mary Beth Quirk via Consumerist

jikAmerican Express To Fight Court Ruling That Would Let Retailers Encourage Use Of Competing Cardsde

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(The.Comedian)

Back in February, a federal court ruled that American Express merchant agreements violate antitrust laws, resulting in higher costs for consumers, by forbidding retailers that accept AmEx from encouraging customers to use competing cards like those from Visa, MasterCard, and Discover. Today, the credit card company’s CEO said the company is asking the court to stay this ruling.

American Express typically charges merchants higher per-transaction fees than the competition, so it only makes sense that some retailers would want to nudge shoppers toward using the less-expensive option by, for example, offering a small discount for using a MasterCard. However, the AmEx merchant agreements include so-called “anti-steering” or non-discrimination provisions that forbid the retailer from doing anything to favor one card network over the other.

The court ruled this prohibition “results in higher costs to all consumers who purchase goods and services from these merchants.”

But according to the Wall Street Journal, American Express CEO Kenneth Chenault told investors today that the company intends to try to stay this ruling. If granted, that would allow the current anti-steering rules to remain in place while AmEx appeals.

“Fighting this suit was the right call in 2010 and continuing to fight is the right call now,” Chenault explained.

The appeals process can’t begin until after the court determines the remedy in the case; that issue was not resolved at the time of the ruling.

by Chris Morran via Consumerist

jikNow There’s A Bidding War For The Smoldering Remains Of RadioShackde

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(cambelina)

Since RadioShack finally declared bankruptcy last month, the assumption has been that Standard General, a hedge fund that has lent the Shack large amounts of money for its failed comeback attempt, would win the bankruptcy auction. They would buy 1,700 or so of the stores that are left, along with RadioShack’s brand. Now a different lender has joined the bidding, but claims that the auction favors Standard General.

That other lender is Salus Capital Partners, one of the lenders that provided the Shack with some fresh batteries back in 2013 and stood against the chain closing a large number of its stores during its pre-bankruptcy decline.

The Standard General deal had the advantage of keeping a large number of stores open, and preserving about 9,000 retail jobs. Salus hasn’t said what their plans are with the Shack’s retail operations, but their teaming up with a team of liquidators indicates that they would be more likely to sell off the stores and fixtures and maybe keep the RadioShack brand going as an online retailer.

The final hearing about the different parts of what used to be RadioShack will be held tomorrow, at which time the court will approve (or not) the winning bids for different parts of the company. As we’ve shared before, other creditors are not super thrilled with Standard General’s status as almost-winners.

Bidding War to Determine RadioShack’s Fate [Wall Street Journal]

by Laura Northrup via Consumerist

jikWalgreens Cashiers No Longer Required To Tell Customers To “Be Well”de

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(JeepersMedia)

Having someone wishing you well is always nice, but when it’s a pre-ordained phrase that you know the person is required to say as part of their job, well, not everyone loves that. And so it goes that Walgreen Co. says it’s putting an end to its “Be well” campaign that had cashiers bestowing the canned blessing upon customers.

A spokesman told the Chicago Tribune that the campaign had run its course after a few years, but didn’t explain why it was getting the axe at this particular time.

“It’s accomplished its goal of reinforcing our branding,” spokesman Michael Polzin said. “We’ll continue to build our relationships with customers in other ways.”

Walgreens employees learned about a few other changes in how they’re to deal with customers in a memo cited by the Tribune, including suggestions that workers learn customers’ names and that they should thank them for their purchase.

When a shopper walks into the store, employees no longer have to say “Welcome to Walgreens” verbatim, but can opt for something like, “Good morning” or “Welcome Back, Mrs. Doe.”

If you weren’t a fan of hearing “Be well” every time you buy a six-pack of ramen and a supply of gummy bears (don’t judge), you aren’t alone: Walgreens workers started a Facebook page called Walgreens Gone Wrong last year to air their issues with the required phrase.

Workers noted that it was somewhat ridiculous to say “be well” when someone’s buying cigarettes, or entirely awkward when aimed at a “cancer patient picking up post chemo meds.”

Then there are those who don’t mind saying nice things to customers, but having to stick to a script just didn’t feel right.

“I love and respect my customers, and of course, want them to be well, but it’s just not necessary to sound like an insincere carbon copy routine Walgreens worker,” said one. “This is definitely a step in the right direction.”

Walgreen nixes ‘Be well’ at checkout line [Chicago Tribune]

by Mary Beth Quirk via Consumerist