Jc Penney, Macy, ADP discussed on WSJ What's News
You might know ADP is the biggest name in payroll. But that's just the beginning because ADP is transforming the way great work gets done with HR talent time benefits and payroll informed by data and designed for people, that's ADP always designing for people. JC penney. And Kohl's the latest retailers to report earnings both saw a decline in sales in the latest quarter. Joining me now with more details is Wall Street Journal reporter, Suzanne cap ner, Suzanne. Well, both of these companies saw declines different factors were at play for each of them. What can you tell us about what led to the sales declines for JC Penney and Kohl's the big surprise was Kohl's, which had been doing pretty well for most of last year? They started to see things slow a bit in the fourth quarter, and then slowed much more in the first quarter of this year. They blamed it on weather and the fact that some of their competitors were a lot more promotional. So they're going to step up their promotions. And they've got some initiatives that they hope will get the sales growing again, later in the year, for instance, there, they have a partnership with Amazon, where you can return items bought on Amazon to any coal store by July. You'll be able to do that with penny, you know, they've been just in the dumper for long longtime, they've gone through many. Many management changes. They've, you know, since the days of Ron Johnson, the former apple exact who tried to really overhaul that company, they haven't been able to find their footing. They have yet, anew CEO in place, who is just trying to do get some of the basic things right? Like the ordering the right goods marketing them the right way, having, you know, not having too much inventory, and she hasn't fully outlined, what her big strategic vision is for the company yet. So we'll have to wait and see. But that, you know, that has been they've been they've been hurting, and they continued to hurt, but close was the reversal that kind of caught everybody by surprise when we look at other recent retail earnings, WalMart and Macy's both reported growing sales. What's hoped those retailers? Stay ahead of the curve that others haven't been doing. I mean, WalMart's been very aggressive in trying to be competitive with Amazon, you know, they bought jet, they've bought, you know, a whole bunch of companies. They've been spending a lot of money fixing up their stores. Macy's also has been you know, trying. All sorts of new ideas. They bought this company story that they're you know, incorporating into their stores, where like the, the format changes every four to six weeks, the product and the female changes over there, trying to just make their stores, a lot, more exciting. And so they're starting to see a little bit of traction there. And then, you know, of course, the big winner today was TJ X, which owns the TJ Maxx, marshalls discount chains. And they just continued to take share from all the other apparel sellers, their same store. Sales were up five percent you know, every quarter they seem to grow, even more. And you know, it's just they offer this amazing value. You know that's really the name of the game today. What about the ongoing threat of tariffs, we heard from Macy's when they reported earnings that another round could impact the furniture business. What are you hearing from retailers overall about the threat of tariffs? Well, they're obviously all very concerned, and the, the increase recently on the third tranche to twenty five percent from ten percent is starting to eat into. Margin's Cole said, but the big game changer for most retailers will be if this fourth tranche goes into effect that would cover all Chinese imports. And that's what they're all sort of gearing up for they're talking to their suppliers about shifting production out of China. What goods could withstand a price increase. What couldn't what are there any lines? They might have to stop selling. This is like the work..