Tipsheet: Cornell Iview | Citi Hugs Costco | Neiman Cuts 225 | W.Foods -1.9%
Walmart unveils manufacturing plan to create 1.5 million new jobs at Fox Business. “The road map identifies four major obstacles — a lack of qualified workers, excessive government regulation, dated tax and trade agreements and a lack of coordination among suppliers — and calls on specific government and business entities to act together to address them.” Read more | Press release
Treasury Secretary Steven Mnuchin hints the administration may soon take “a position” on Amazon’s tax collection policy by Tae Kim at CNBC. “Mnuchin said. “I am encouraged that Amazon is now charging tax, I believe, on their own sales but not the marketplace. I’m not sure I understand the consistency on that.” Mnuchin is referring to e-commerce giant’s “third-party” marketplace, where other firms sell goods on Amazon’s website. This compares to its “first-party” business where the internet company sell products directly to customers.” Read more
Neiman Marcus will eliminate roughly 225 positions across all of its brands and operating divisions by Korri Kezar at Dallas Business Journal. Read more
COSTCO GOLDMINE – Citigroup CEO touts the $100 billion Citi took from American Express by Elizabeth Gurdus at CNBC. “If I came in and said, ‘Jim, let me tell you about a deal that we’re gonna do. And that deal is going to be with a terrific partner, one of the best retailers in the world. And in that deal we’re going to bring in $10, $11 billion of receivables. We’re gonna bring in new cardholders. And those cardholders, in a single year, are going to spend $100 billion on that card,’ think about it,” Corbat said.” Video/Read more
Whole Foods Q3 Comp Sales -1.9% “John Mackey: “Our comparable store sales improved sequentially on a one- and two-year basis in the third quarter, and that momentum has accelerated 220 basis points in the fourth quarter, resulting in positive overall comps for the first three weeks.” Press release
Target Isn’t Worried About Amazon’s Whole Foods Purchase by Susie Gharib at Fortune. “Speaking with Susie Gharib at Fortune’s Brainstorm Tech conference, Cornell says he’s sticking with the plan he designed in February…“We decided to play the long game,” says Cornell. “We’re really planning the Target of tomorrow.” In fact, he adds, the Amazon news validated Target’s strategy. “It validated the fact that stores still matter,” explains Cornell.” Video/Read more
How J.C. Penney is approaching digital differently: ‘We’re not trying to be Amazon’ by Maria Halkias at Dallas Morning News. “Our customers have household incomes of $60,000 to $90,000, and they tend to be hardworking, two-income families living both in rural and urban settings,” Amend said. “They don’t have the discretionary income to commit to membership fees.” Read more
Best Buy adds Dyson in-store shops to demo vacuums, hair dryers by Kavita Kumar at Star Tribune. “Dyson Demo Experiences, ranging in size from 40 to 400 square feet, will roll out to about 90 of Best Buy’s U.S. stores next month. In these mini-shops, customers can try Dyson products such as its $400 Supersonic hair dryer.” Read more
Tractor Supply Q2 Comp Sales +2.2% “Adjusting for the week shift, last year’s comparable store sales increase would have been 1.0%.” Press release
Amazon has a secret health care team called 1492 focused on medical records, virtual doc visits by Eugene Kim at CNBC. “The new team is currently looking at opportunities that involve pushing and pulling data from legacy electronic medical record systems…It is also hoping to build a platform for telemedicine, which in turn could make it easier for people to have virtual consultations with doctors, one of the people said.” Read more
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Loblaw Q2 Sales: Revenue +3.2%, Food retail comp +1.0% Press release
PRIVATE LABEL PERFORMS – If Kroger’s private label business was its own company it would land at about No. 127 on the Fortune 500 by Alexander Coolidge at Cincinnati Enquirer. “In the last 18 months (Kroger) has rolled out 1,000 new food and household items, growing its house-branded offerings to more than 30,000 products.” Read more
O’Reilly Automotive Q2 Comp Sales +1.7% Press release
P&G tops Wall Street views, but activist Peltz says it must fix ‘root cause’ of its slow growth at CNBC. “Earnings per share: 85 cents adjusted vs. a forecast for 78 cents, according to a Thomson Reuters consensus estimate by analysts. Revenue: $16.08 billion vs. an estimate of $16.02 billion.” Read more
STUDY: People could save on average up to 15% buying school supplies online if they shopped somewhere other than Amazon by Grace Donnelly at Fortune. Read more
Supervalu buys Central Grocers warehouse; deal may put more store brands in supermarkets by Greg Trotter at Chicago Tribune. “Supervalu Holdings has entered into an agreement to buy Central Grocers’ massive distribution center in Joliet for $61 million. A bankruptcy court judge approved the deal Tuesday, despite some objections from unsecured creditors.” Read more
Carter’s Q2 US Comp Sales +6.0% Press release
Walmart Has Cancelled All SNES Classic Edition Preorders by Mitch Wallace at Forbes. “(The) email message cited a possible “technical glitch” for the mishap, and said that the fact that the item was even displayed on the website in the first place was a massive mistake.” Read more
Build-A-Bear Q2 Comp Sales -0.9% Press release
Criticism, concern expressed about Wal-Mart’s new in-store merchandising policy by Kim Souza at Talk Business. “I am another Advantage employee that will be losing my job after 15 years. This was all put out for bid, the top 5 companies willing to pay the most get to stay. Now these reps will become glorified WM employees and have to bow down each time they walk through the door. No thank you!” Read more
Lidl just won the first battle in its war against Kroger by Hayley Peterson at Business Insider. “U.S. District Judge John A. Gibney Jr. ruled Tuesday that the logos look “somewhat alike” but said “private” and “preferred” have different definitions, according to The Richmond Times-Dispatch. “I think the public interest lies in competition,” he said, according to the Times-Dispatch. “I don’t find they have an identical or similar meaning.” Read more
Tipsheet Extra Stories
This is ModCloth’s Plan to Win Over Customers after the Walmart Acquisition
‘Star Wars’ toy fatigue may finally be setting in
Young Walmart cashier’s act of kindness leaves foster parent in tears
Want a job, mate? Amazon is hiring Aussie speakers
Wal-Mart strategically buying up land in Bentonville
Two antique dealers plead guilty for selling $4.5M of elephant ivory
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