Department store retailer Stage Stores, owner of Bealls, Palais Royal, Peebles and Stage, has taken actions to increase productivity, reduce costs and improve profitability, estimating that these initiatives will yield approximately $5 million in annual savings. The retailer projects a CapEx of $57 million, focusing on investments in e-commerce, systems and logistics.
With e-commerce as a high priority, the retailer’s direct-to-consumer business continues to make progress. In fact, Stage has hired Bob Nebel, formerly of Sears and DSW, as Senior Vice President of e-commerce.
On November 5, Stage launched a new e-commerce platform went live, including expanded functionality and offering customers the ease of shopping, “we are quite confident that the enhanced site will contribute nicely to our holiday sales,” said Michael Glazer, president and CEO for stage Stores on a recent call with analysts.
The retailer continues to invest in inventory in order to be in good stock position on basics, and improve its .com fulfillment. While its e-commerce investment is in the low double digits, it is not the same proportion to Stage’s business as it is to other retailers. E-commerce has less impact on Stage Stores comps, which is partly why the retailer is focused on trying to ramp up growth. “We think this re-platforming is going to be the one that will really accelerate that for us,” said Steven Lawrence, chief merchandising officer for Stage Stores on the call.
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