Associated Retail Operations (ARO) exceeded its cash flow budget by 26 percent through the second quarter of 2025. These results are important as the company continues to focus on financial strength and operational discipline.
The strong performance reflects ARO’s company-wide priority in improving cash flow and highlights the importance of running well-operated stores that are guest-focused.
“We’ve been running great stores, operating at a high level and it’s paying off,” said Greg Welling, vice president of retail operations. “From team members taking care of guests to department managers and store directors running outstanding operations, to all the support we receive from AFS, everyone has contributed to this result. It’s a reflection of how engaged our teams are and how hard they work every day.”
ARO leaders say the positive results come from consistent execution at every level of the business. Improvements in inventory management, shrink reduction, scheduling efficiency and promotional planning all contributed to the gains.
“This kind of momentum is exciting for all of us,” Greg said. “Our store leaders and team members are working incredibly hard and they’re finding innovative ways to deliver a great shopping experience, at a high standard, while continuing to provide great guest service.”
The improved cash flow gives ARO increased flexibility to reinvest in high-priority areas such as store upgrades, new equipment to help team members and tools to enhance the experience for shoppers.
Company leadership emphasized the importance of maintaining momentum throughout the second half of the year.
“Our performance so far is encouraging, but we know we must keep going,” Greg said. “We need to keep executing at a high level and remain focused on being great every single day. We can see that our guests are responding to what we are doing and that is the exciting as we enter the second half of the year.”