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Sears Holdings
23 июня, 17:57

Fearing Border Tax, Retailers Boost Lobbying 31 Percent

by Kennett Werner It’s been a remarkably tough year for the retail sector. So far in 2017, retailers have set a record pace for bankruptcies and store closings. Household names are faring no better than small shops: J.C. Penney said it would shutter 138 locations in July; Macy’s expects 68 locations to close this year; and Sears Holdings will turn off the lights at over 170 Kmart and Sears stores. Since January, 50,000 retail jobs have been cut. Credit ratings agency Moody’s added to an already-grim outlook when, earlier this month, its list of U.S. retailers at risk of bankruptcy rose to 22. That’s higher than the 19 at-risk retailers singled out during the financial crisis. Amid this gloomy picture, retailers are lobbying more than ever. Lobbying expenditures rose by 31 percent in the first quarter of 2017 compared with the same period last year. So far in 2017, retailers have spent $16.4 million lobbying Congress. They spent $45.8 million last year. Retailers are pushing for “anything that puts money in the consumer’s pocket,” says Howard Davidowitz, an independent retail consultant. That means tax cuts are a top priority. It’s little surprise that lobbying spiked as Republican leadership in the House has called for a border adjustment tax. To encourage domestic production, the controversial tax arrangement would tax exporters at a lower rate than importers by allowing companies to deduct the cost of American-made goods from taxable revenue. Retailers, whose products are mostly imported, would be hard hit under the proposal. They argue that consumers would ultimately bear the cost of such a tax—to the tune of $1,700 each year—through higher prices. Retailers jumped into action to oppose the bill. CEOs of Target, Best Buy, and J.C. Penney, among others, met with President Trump in February. Retailers joined oil refiners and automakers to launch Americans for Affordable Products, an advocacy group that has aired ads criticizing the tax proposal. (Companies that primarily export, like Boeing and Dow Chemical, formed their own group—the American Made Coalition—in opposition.) Testifying before the House Ways and Means Committee, Target CEO Brian Cornell estimated that Target’s tax rate would increase by 40 percent with a border tax. He added that Target’s customers—“middle-class working families whose budgets are already stretched”—would bear the brunt through price hikes. Cornell got a sympathetic response from Rep. Erik Paulsen (R-Minn.), who once worked for Target and now represents the company’s home district. Paulsen said he could not support border adjustment in its current form. Behind the scenes, Target has spent $1.3 million lobbying just this year—jumping from number ten to number four in lobbying outlays among retailers since 2016, when it spent $1.7 million. Those efforts have kept border adjustment at bay. In an interview with CNBC last month, Treasury Secretary Steven Mnuchin criticized the scheme for creating an uneven playing field with “different impacts on different companies.” In private he has signaled to lawmakers that the tax proposal does not have White House backing. But retailers will not rest easy until they’ve killed off talk of border adjustment for good. That hasn’t happened yet: Border adjustment is tied to corporate tax reform, a centerpiece of the Republican agenda. (Authors of the Republican tax blueprint claim that border adjustment will raise $1 trillion in tax revenue over a decade, which will be necessary to offset revenue losses from their goal of a significantly lower headline corporate tax rate.) On Tuesday Speaker Paul Ryan (R-Wis.) made clear that he plans to push ahead with a tax overhaul in 2017. Earlier this month, House Ways and Means Committee Chairman Kevin Brady (R-Texas) said he wants to see border adjustment phased in over five years. Another lobbying issue for retailers is a digital sales tax. Here retailers are divided: On one side are remote sellers that have no obligation under federal law to collect and remit tax on Internet sales. On the other side are big-box retailers and Amazon, which do charge sales tax. In April, senators reintroduced a bill known as the Marketplace Fairness Act to address the discrepancy. (It passed the Senate in 2013 but never made it to the House.) The National Retail Federation, a trade group that has spent $2.3 million lobbying this year, backs the bill. A digital sales tax seems low on the list of lawmaker priorities. Mired in debates over healthcare and corporate tax reform, “Congress has bigger fish to fry,” says Richard Pomp, a law professor at the University of Connecticut. Part of the retail lobbying frenzy this year is due simply to the fact that there’s a new administration, adds Davidowitz, the consultant. “There’s a tremendous amount of change being talked about. It would be understandable that you want to get the word in as quickly as you can to the new people.” -- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.

23 июня, 17:41

Nordstrom (JWN) to Open Second Rack Store in Milwaukee Area

Nordstrom Inc. (JWN) is steering ahead with its store expansion plan evident from the announcement of its intention to open another Nordstrom Rack store in Wisconsin in fall of 2018.

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23 июня, 17:15

Sears to close another 20 stores

Read full story for latest details.

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23 июня, 14:10

Here are the 20 additional stores Sears plans to close

Sears Holdings plans to close 20 more Seritage-owned stores in the U.S., in addition to the more than 200 closures that have already been announced.

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22 июня, 22:20

Sears is shuttering 20 more stores

Sears Holdings is shuttering 20 more U.S. stores, in addition to the more than 200 closings that were already announced this year, Business Insider reports.

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22 июня, 21:36

Sears is closing 20 more stores — here's the full list

Sears Holdings is closing 20 more stores in the US, in addition to the...

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22 июня, 15:52

Sears Canada Announces Bankruptcy; Fires 2,900

Update: Sears Canada was authorized to obtain financing of C$450 million. The bankrupt company said it would close 20 full-line locations plus 15 Sears Home stores, 10 Sears Outlets and 14 Sears Hometown locations; it would also cut 2,900 positions across retail network, corporate head office in Toronto. * * * It's official - the US 'retail apocalypse' has moved north as Sears Canada (and some of its subsidiaries) have applied to Ontario Superior Court of Justice for protection under the companies’ Creditors Arrangement Act (CCAA), in order to continue to restructure its business. Sales at Sears Canada have fallen sharply since it was spun off from its equally-troubled US-based parent in 2012; the slump coincides with a broader shift in consumer preferences away from brick and mortar retailers and toward e-commerce. This shouldn;t come as a surprise to anyone, in an admission last week, Sears Canada said it has “significant doubt” that it can continue to operate for much longer. Meanwhile, its American counterpart announced that it would lay off 400 employees as part of an initiative to produce $1.25 billion in savings after admitting back in March that the future of its business is also in serious jeopardy, as Fortune reported. Statement from Sears Canada (note you would hardly think this is a 'bad' thing judging by this PR spin) Sears Canada Reinvention Continues   Over the past 18 months, Sears Canada embarked on a reinvention plan that has now begun to gain traction with customers. Sears Canada rebuilt its front and back-end technology platform, redefined its brand positioning, revamped its product assortment, and rebooted its customer experience and service standards.  The new product assortment is reflected in two pillars, The Cut @ Sears, which offers designer labels at everyday value prices, and the Sears Label, which offers premium quality and enduring styles, also at everyday value prices.  The customer experience was reinvented, both online, with a newly designed site built in-house by a new technology team, and in-store with a new format called Sears 2.0. Sears Canada also redefined its customer service standards to be best-in-class, and launched a new store in downtown Toronto to showcase its reinvention to an entirely new audience.   The Company's hard work to bring its vision to reality is reflected in reported growth in same store sales in its two most recently completed quarters. Sears Canada believes this indicates that the new brand positioning is starting to resonate with consumers.  The brand reinvention work Sears Canada has begun requires a long-term effort, but the continued liquidity pressures facing the Company as well as legacy components of its business are preventing it from making further progress and from restructuring its legacy assets and businesses outside of a CCAA proceeding.   If granted, the Sears Canada Group will work to complete its restructuring in a timely fashion and hopes to exit CCAA protection as soon as possible in 2017, better positioned to capitalize on the opportunities that exist in the Canadian retail marketplace. As a reminder, we noted last week that if Sears Canada was to go bankrupt, Lambert loses his equity stake, but he remains the company’s principal creditor. Already, Lampert has effectively laid claim to enormous amounts of the company’s assets through loans he’s made. His hedge fund, ESL Investments, also owns large stakes in Lands’ End and a Real Estate Investment Trust that gained control of some of Sears’ best properties in a $2.8 billion deal back in 2015, then leased them back to the company. Lambert owns a stake in that vehicle, too. In other words, while Sears was floundering, Lambert was busy shielding himself from the worst of the fallout. His former employees will need to make due with the public safety net.

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14 июня, 17:55

Realty Income Corp (O) Stock Has Been Thrown Out With the Bathwater

The past 12 months haven’t been particularly fun ones for owners of Realty Income Corp (NYSE:O). Then, there’s the growing number of retail store closings announcements, a little too close to home for Realty Income. Sears Holdings Corp (NASDAQ:SHLD) intends to shutter even more locations this year than had previously been announced in January.

14 июня, 17:53

Wall Street edges lower after Fed raises rates

US stocks edged down at the close after the US central bank raised interest rates for the second time this year.The Federal cited continued US economic growth and job market strength.It also said it will begin cutting holdings of bonds and other securities this year.The Dow Jones closed up 0.22% at 21,374.56, while the wider S&P 500 index fell 0.10% to 2,437.92. The tech-heavy Nasdaq fell 0.41%, to 6,194.89. "I don't think that there is really too much new in here outside of the fact that the Fed remains committed to the slow gradual normalisation process despite some of the weak data that we've had," said Mark Cabana, head of US short rates strategy at Bank of America Merrill Lynch in New York.US consumer prices unexpectedly fell in May and retail sales recorded their biggest drop in 16 months.

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14 июня, 04:30

'Retail Apocalypse' Moves North As Sears Canada Admits Its Future Is In "Serious Doubt"

The retail apocalypse that has caused the closing of thousands of department stores in the US – not to mention the evaporation of tens of billions of dollars in market capitalization - is moving north: Sears Canada revealed Tuesday that it’s exploring a sale or a possible restructuring as it draws nearer to bankruptcy. In an admission that shouldn’t come as a surprise to anyone who has ever shopped online, Sears Canada said it has “significant doubt” that it can continue to operate for much longer. Meanwhile, its American counterpart announced that it would lay off 400 employees as part of an initiative to produce $1.25 billion in savings after admitting back in March that the future of its business is also in serious jeopardy, as Fortune reported. Sears Canada’s shares slid as much as 40% on the news. "The company continues to face a very challenging environment with recurring operating losses and negative cash flows from operating activities in the last five fiscal years, with net losses beginning in 2014," the company said, according to the Financial Post. Sales at Sears Canada have fallen sharply since it was spun off from its equally-troubled US-based parent in 2012; the slump coincides with a broader shift in consumer preferences away from brick and mortar retailers and toward e-commerce. Shares of some of the biggest department and big-box stores have seen double-digit declines this year against the backdrop of a broader market rally. Macy’s, J.C. Penney, Sears and Dick’s Sporting Goods. Meanwhile, Amazon briefly climbed above $1,000. Department stores were slow to develop strong e-commerce platforms, leaving Amazon to dominate a segment of the market that’s seeing double-digit annual growth. Amazon’s share of the US e-commerce market rose to 43% this year, and its shares briefly climbed above the $1,000 threshold. Ignoring the fact that corporate mismanagement has more or less defined the Sears brand in recent years, Sears Holdings PR team assures readers that - in the grand scheme of things - the cuts to its workforce really aren’t all that significant. "While the total number of people who are directly affected represents a small fraction of our total headcount, we are conscious of the impact on individual employees," Sears said. Those workers who are being handed pink slips can hopefully find solace knowing that the retailer has promised that it will continue to take "all necessary action" to achieve profitability – short of cutting the pay of Eddie Lambert, the company’s CEO, chairman and largest shareholder. Lambert, as USA Today reported back in March, has extracted “significant value” from the company in recent months, and stands to profit further if the company goes belly up. Although in a sense, Lambert has already taken a pay cut: Sears’ stock has shed more than 41% over the past 12 months, and is down 25% year to date as well. However, Lambert has managed to protect his investment in Sears – or what’s left of it – from the seemingly inevitable bankruptcy that stands to wipe out the other shareholders – American retirees, to the extent that Vanguard and State Street both own large stakes. If Sears goes bankrupt, Lambert loses his equity stake, but he remains the company’s principal creditor. Already, Lampert has effectively laid claim to enormous amounts of the company’s assets through loans he’s made. His hedge fund, ESL Investments, also owns large stakes in Lands’ End and a Real Estate Investment Trust that gained control of some of Sears’ best properties in a $2.8 billion deal back in 2015, then leased them back to the company. Lambert owns a stake in that vehicle, too. In other words, while Sears was floundering, Lambert was busy shielding himself from the worst of the fallout. His former employees will need to make due with the public safety net.

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13 июня, 18:21

Sears сократит 400 рабочих мест

Американский ритейлер Sears Holdings заявил, что сократит около 400 сотрудников, занятых полный рабочий день в офисах компании, а также занимающих вспомогательные должности. Компания уточнила, что большинство увольнений придется на офис Hoffman Estates, однако будут совершены сокращения и в зарубежных подразделениях. Напомним, что в рамках реализации программы с целью повышения финансовой устойчивости компания сначала сократила часть сотрудников, занятых неполный рабочий день, а также уменьшила число запланированных к открытию магазинов. В апреле Sears заявила, что намеревается в фискальном 2017 г. снизить издержки на $1,25 млрд.

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13 июня, 16:29

Sears сократит 400 рабочих мест

Американский ритейлер Sears Holdings заявил, что сократит около 400 сотрудников, занятых полный рабочий день в офисах компании, а также занимающих вспомогательные должности. Компания уточнила, что большинство увольнений придется на офис Hoffman Estates, однако будут совершены сокращения и в зарубежных подразделениях. Напомним, что в рамках реализации программы с целью повышения финансовой устойчивости компания сначала сократила часть сотрудников, занятых неполный рабочий день, а также уменьшила число запланированных к открытию магазинов. В апреле Sears заявила, что намеревается в фискальном 2017 г. снизить издержки на $1,25 млрд.

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09 июня, 23:26

RETAIL BLUES: List Of Retailers In Danger Of Bankruptcy Hits Record 22. The list includes: Boa…

RETAIL BLUES: List Of Retailers In Danger Of Bankruptcy Hits Record 22. The list includes: Boardriders SA – sporting subsidiary of Quiksilver The Bon-Ton Stores – parent of department store chain Fairway Group Holdings – food retailer Tops Holding II – supermarket operator 99 Cents Only Stores – discount retailer TOMS Shoes – footwear company […]

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09 июня, 20:20

"It's A Perfect Storm": List Of Retailers In Danger Of Bankruptcy Hits Record 22

The US retail sector continues to sink at an alarming rate, and according to the latest iteration of Moody's list of retailers who are in danger of filing for bankruptcy, there are now 22 distressed retailers whose troubled financials the rating agency believes could make them potential bankruptcy candidates in the near future, up substantially from just two months ago, and topping the 19 recorded at the peak of the Great Recession. According to Moody's analyst Charles O'Shea, legacy retailers such as Sears, Neiman Marcus and others on the rating agency's retail distress list, face a "perfect storm" and warned that "you're on the Andrea Gail right now, and the water's starting to get very choppy." The worst could be yet to come as the Moody's analyst writes that "the ranks of distressed retailers is set to keep growing over the next 12 to 18 months amid a secular shift in the industry." Moody's list consists of all retailers which have ratings of Caa or lower. That number has grown to 22, or approximately 15%, of the firm's retail and apparel universe. "When you're down there in C-a land, bankruptcy is a real possibility," O'Shea said. "The majority of retailers remain fundamentally healthy," said O'Shea, "But as select groups of retailers continue to deteriorate -- in particular department stores and specialty retailers -- we believe the distressed ranks will keep growing, fueled in part by distinct vulnerabilities within the B2/B3 retail population." Focusing on those retailers with imminent default risk, Moody's adds that of 42 B2/B3 rated issuers (as of April 30, 2017), seven face $1.1 billion of maturities for asset-based loans and revolving credit facilities over the next year- elevating the risk of default for already-stressed and distressed issuers should the strong refinancing pace driving recent high-yield issuance recede. Such a risk is underscored by Moody's US speculative-grade default forecast, which predicts a decline in the overall US speculative-grade default rate to 3% by April 2018 from 4.5% today, even as spec-grade retail and apparel default forecasts trend significantly higher, at 6.7% and 6.8%, respectively. Some of the highliights from the latest Moody's report Competitive challenges are intensifying and the credit erosion among more challenged retail sectors and individual retailers is crystallizing rapidly as more issuers file for bankruptcy and miss payments The competitive challenges weighing on earnings performance for bigger retailers like Amazon.com, Walmart Stores, Best Buy and Target will have potentially devastating ripple effects for smaller, more challenged retailers over the next several quarters Common characteristics of retail and apparel companies with lower credit ratings include stressed liquidity, weak quantitative credit profiles, challenged competitive positions, sponsor ownership and erratic management structure Liquidity is typically the driving force in the assessment of credit risk, and a key determinant in any drop into Caa/Ca territory. “Risk becomes more acute when a company is facing a meaningful debt maturity." Some names that figured previously on Moody's list have already filed for Chapter 11 protoection: among them discount footwear company Payless ShoeSource and Rue21, a teen fashion retailer, both filed for bankruptcy recently, while Gymboree, a specialty seller of children's apparel, missed its June 1 interest payment and is expected to announce its bankruptcy filing shortly. While landing on the distressed list of "super fallen angels" is not a death sentence, recently JC Penney managed to crawl out of it, the probability that a company will end up in bankruptcy rather than get its financial in orders is orders of magnitude greater.  "There are companies that come out of that," said O'Shea, who noted that iconic retailer J.C. Penney "was down there, and is now out," with an improved rating. Doing the math here, with one company "out" and everyone else eventually filing, restructuring lawyers are finally going to be busy after a nearly decade-long hiatus. Below is the full list of deeply distressed retailers: Boardriders SA  - sporting subsidiary of Quiksilver The Bon-Ton Stores - parent of department store chain Fairway Group Holdings - food retailer Tops Holding II - supermarket operator 99 Cents Only Stores - discount retailer TOMS Shoes - footwear company David's Bridal - wedding dresses and formalwear seller Evergreen AcqCo 1 LP - parent of thrift chain Savers Charming Charlie - women's jewelry and accessories Vince LLC - clothing retailer Calceus Acquisition - owner of Cole Haan footwear firm Charlotte Russe - women's clothing Neiman Marcus Group - luxury department store Sears Holdings - owner of Sears and Kmart. Indra Holdings - holding company owner of Totes Isotoner Velocity Pooling Vehicle - does business as MAG, Motorsport Aftermarket Group Chinos Intermediate Holdings - parent of J. Crew Group Everest Holdings - manages Eddie Bauer brand Nine West Holdings - clothing, shoes and accessories Claire's Stores - accessories and jewelry True Religion Apparel - men's and women's clothing Gymboree - children's apparel

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07 июня, 05:00

Sears Closing Another 66 Stores; Joe's Crab Shack Files For Bankruptcy

Here's another example of when cornered hacks blame "fake news" or in this case, the "irresponsible media" for their gross incompetence, only to prove the media very much responsible and unfake. One month ago, Sears CEO Eddie Lampert blasted the media for "unfairly singling out" the company over the past decade and blamed "irresponsible" coverage for the retailer's woes. Sears, once the largest U.S. retailer, recently hit rock bottom and continued to dug when it warned investors in March there was a chance it may not survive after years of losses and declining sales. Still, that very warning did not prevent Lampert from lashing out at those who have - correctly - been warning that his company bankruptcy is just a matter of time, and back in May he kicked off the company's annual shareholders' meeting at the company's HQ with a 12 page slideshow of headlines about the company's financial distress, dating back to 2008 (Lampert is known for his peculiarities, collecting morbid headlines about his biggest asset was not known to be among them). "You'd think it was from a month ago, but it's literally been going on for a decade," Lampert told the handful of furious Sears shareholders in attendance who have seen the value of their stock wiped out over the years. There were other fireworks during the meeting, like for example when Lampert compared Sears - which hasn't posted a profit in six years - to Amazon's early unprofitable growth. He predicted people will look back and wonder how they missed the Sears' turnaround. The audience was not amused, and six shareholders questioned Lampert, including one asked if Lampert was paranoid and in denial about the company's losses. Confirming the former, Lampert denied saying there were "behind-the-scenes" counterparties trying to take advantage of the company's situation and that he was trying to adapt and preserve as many jobs as possible. "That's not about denial; that's about caring." There was little else of substance discussed, with the bulk of Lampert's 90-minute appearance focused on the negative news coverage, which - just like Hillary Clinton - he said had been "deliberately unfair." "It's irresponsible and it's been irresponsible for too damn long. We're just looking for a fair chance," Lampert said of the media. "Excuse my rant but a lot of what we're doing deserves a chance to see the light of day." Less than a month later, Sears quietly proceeded to close another 66 stores in Lampert's drive to prove that he is neither paranoid not in denial, but merely a "caring" individual with a penchant for blaming the media for all his problems. Also, the company is burning through millions in cash, so it really had no other choice. The closures will include 49 Kmart stores and 17 Sears stores, with most shut by September according to USA today. The new closures are in addition to the 180 shutdowns Sears announced earlier this year. Last month, roughly around the time Lampert was bashing "fake news" for the disintegration of Sears, the near-defunct retailer, in its latest scramble to preserve cash announced that it would delay repaying much of a $500 million loan; instead subs of Sears Holdings were granted a forebearance allowing them to repay only $100 million of the loan in July, the initial maturity date of the total debt. The remaining $400 million is not scheduled to come due until January of 2018, with Sears having an option - which it will exercise - of pushing the maturity to July of next year. The creditors will likely see at most pennies on the dollar. * * * Elsewhere, as had been largely anticipated, the operator of the Joe’s Crab Shack and Brick House Tavern & Tap chains, Ignite Restaurant Group, was finally extinguished when the company filed for Chapter 11 bankruptcy, hoping to sell itself to an affiliate of Kelly Investment Group. The company, which had seen a steep drop in sales in recent years, listed total debts as of April 30 of  $197.3 million on $153.4 million in assets. Of course, the rats left the sinking ship long ago, with CEO Robert S. Merritt resigning in April, when he was replaced with turnaround firm Alvarez & Marsal. Ignite operates, or rather operated, 137 Joe’s and Brick House restaurants in 32 states, with “large numbers” in Texas, Florida and California, plus - of all places - three franchises in the United Arab Emirates. It employs 8,400 people, including 5,500 part-time workers. The first Joe’s opened in Houston in 1991. Fear not though bland seafood fans: the brand will continue to exist upon emergency from bankruptcy: Ignite has lined up Kelly affiliate KRG Acquisitions as a “stalking horse” to open bidding in a court-supervised auction. KRG is willing to pay $50 million and assume liabilities. One thing that will not be coming back, however, is a substantial number of employees, many of whom who will be "synergized" and "restructured" away.

02 июня, 16:55

Monstrous Managers: 15 of the Most Hated CEOs of All Time

The world has seen a lot of villainous managers come and go over the years. But none is more despised than this lot of 15 CEOs.

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01 июня, 13:52

Sears Announces Kmart Malware Attack - Says EMV 'Chip' Payment System Prevented Large Scale Fraud

Content originally generated at iBankCoin.com Five days after Chipotle, Inc. announced a massive malware attack resulted in widespread theft of customer payment data, Kmart parent company Sears ($SHLD) revealed that several Kmart locations had been similarly infested with malware. While the beleagured company disclosed that "certain credit card numbers" were compromised, it appears the majority of customers were unaffected -  which the company says is thanks to their decision upgrade all Kmart locations to EMV "smart chip" credit and debit card Point-of-sale (POS) machines. All Kmart stores were EMV “Chip and Pin” technology enabled during the time that the breached had occurred and we believe the exposure to cardholder data that can be used to create counterfeit cards is limited. -Kmart This is in stark contrast to a 2014 malware attack on Kmart's older magnetic swipe Point of Sale system which resulted in the theft of customer data - allowing thieves to create counterfeit cards, according to Sears spokesman Chris Brathwaite. [2014] Brathwaite stressed that the data stolen included only “track 2” data from customer credit and debit cards, and did not include customer names, email address, physical address, Social Security numbers, PINs or any other sensitive information.   However, he acknowledged that the information stolen would allow thieves to create counterfeit copies of the stolen cards. -krebsonsecurity.com Kmart has issued a FAQ regarding the hack. While Kmart looks to have dodged a bullet, Chipotle is still using magnetic POS machines Chipotle ($CMG) declined to upgrade to the newer EMV chip reading equipment in 2015 – citing inefficiencies and concerns over delays in the authentication process in a fast paced food service environment. The breach could mean big trouble for shares of Chipotle, which have only partially recovered from an E.coli outbreak in late 2015. According to Reuters, security analysts say the company will likely face a fine based on the size of the breach and number of records compromised. “If your data was stolen through a data breach that means you were somewhere out of compliance” with payment industry data security standards, Julie Conroy, research director at Aite Group, a research and advisory firm.   “In this case, the card companies will fine Chipotle and also hold them liable for any fraud that results directly from their breach,” said Avivah Litan, a vice president at Gartner Inc (IT.N) specializing in security and privacy. -Reuters Who knows, maybe the GMO-refusing burrito merchants carry separate cyberliability insurance?  In 2015 the credit card industry shifted liability to those who haven't upgraded to EMV systems Per Gizmodo... If stores accept EMV payments, the credit card companies still accept liability for counterfeit fraud. That’s true even if the store accepts EMV payments, but also accepts magnetic stripe payments, and one of those magnetic stripe payments turns out to be fraudulent. The technical wording from Visa is, “The party that has made investment in EMV deployment is protected from financial liability for card-present counterfeit fraud losses on this date. If neither or both parties are EMV compliant, the fraud liability remains the same as it is today.” While EMV payment systems don't prevent over-the-phone credit card fraud, MasterCard said overall fraud had dropped 54% year-over-year in January of 2016. That's significant.  As the banking industry shifts towards convenient and safe digital payment systems and a cashless society, enjoy the smell of paper fiat currency while it's still around. Then go hang out with your gold and silver collection.

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31 мая, 05:23

Amazon is Now Worth More Than Every Store in the Mall Combined

  Content originally published at iBankCoin.com   Everyone knew Amazon was crushing retail, dating back at least a decade. But for some reason, very few went through with the easiest pair trade of all time -- long AMZN, short shopping mall operators. What a simple, yet brilliant, trade. Is it not? Here's an old market cap chart of when Amazon topped Walmart. Now it's worth two Walmarts. Here's another old chart that captures the spirit of Amazon's sales explosion. The current annual run rate is in excess of $140b. So how does Amazon's $143b in annual revenues stack up against other retailers? According to Exodus, there are 31 companies in the Apparel Stores industry, the names you're all familiar with when shopping at the old dead mall, whose sales equal $107b combined, with net income of $13.6b. Their composite market caps are $81.69b, the inversion of the price/sales ratio is indicative of an industry in duress. Amazon's $143b in annual sales and net income of just $9b is rewarded with a market capitalization of $469b. Think about that for a moment. The entire shopping mall, sporting +1.1% quarterly revenue growth, does more net income than Amazon, on 40% less in revenues, and yet Amazon is valued at 5x what the entire mall is being sold for on the market today. The Department Stores are an even worse comparison. TJX, M, KSS, SHLD, DDS, JCP, SRSC, SHOS and BONT combined do revenues of $129b, netting $10.17b in income, yet the composite market caps are just $68b on -4.5% quarterly revenue growth. I get Amazon is the future and they're growing at 22% per annum. But is it worth more than all the department stores and apparel stores combined 3x over? And now for the most egregious juxtaposition: Amazon vs the Discount/Variety Store industry. The Discount Variety stores include WMT, TGT, COST, DG, DLTR, BURL, PSMT, BIG, FRED and TUES. An impressive set of retailers, no doubt. Together, they sport sales of $729b with net income of $51b, enjoying median quarterly revenues growth of nearly 5%. Their market caps combined equal $389b. If you threw in another COST, you might get to match Amazon's market cap. Does any of this shit make sense to you?

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