CHAMPS’ CHOICE: Paul Davies has been named president and chief executive officer of Champs Sports, the expanding, 540-unit division of Woolworth Corp. He succeeds Christy Bedgio, who left the company to pursue other interests, Woolworth’s said Tuesday.
The corporation also said Stuart Kessler has been named chief operating officer of the Champs Sports athletics chain. The position is new.
Davies and Kessler held the same titles at F.W. Woolworth, the 400-unit five-and-dime chain that is being liquidated. About 100 of those stores will be converted to either Champs or Foot Locker, another specialty store division of Woolworth’s.
Also, Woolworth’s is acquiring 27 Koenig Sporting Goods stores from Koenig Sporting Goods Inc., as previously announced. The stores will be converted to the Champs format. “We continue to expand the Champs Sports format throughout North America,” Roger Farah, Woolworth Corp.’s chairman and ceo, said in a statement.
FAMILY STRUGGLES: Struggling off-pricer Family Bargain Corp. expects to report a second-quarter loss this month. “The results will be enough of a miss from Wall Street estimates that we would earn a penny or two per share, that we thought we should give people a heads-up,” said Jonathan Spatz, executive vice president and chief financial officer of the 165-unit chain, based in San Diego.
Lower-than-expected sales, higher-than-anticipated costs for opening seven stores and expenses related to the contract of William W. Mowbray, former president and chief executive officer, caused the loss.
Shaved inventories in an attempt to raise turnover contributed to same-store sales slumps of 3 percent in June and 1.5 percent in July, said Spatz.
The elimination of print promotions that were run in the prior-year period also dampened sales in the quarter ended Aug. 2, he said.
MAC FRUGAL’S MILLIONS: A higher gross margin and lower operating costs propelled second-quarter earnings at Mac Frugal’s Bargains Closeouts Inc. up 65.9 percent to $5 million, or 20 cents a share.
A year ago, it earned $3 million, or 12 cents.
Sales for the three months ended Aug. 3 gained 12 percent to $176.9 million from $157.9 million, as same-store sales grew 10 percent. Mac Frugal’s has been staging a turnaround by boosting consumables to 25 percent of its mix, adding brands such as Sony, Disney, Lego and Farberware, and reducing apparel to 11 percent of assortments from 25 percent.