…CNBC: Sears to shutter another 28 locations “This is in addition to the 180 Sears and Kmart stores that have already been shuttered this year, and the 150 stores that are slated to be closed by the end of the third quarter.”Read more
U.S. retailers hit as immigration worries weigh on Hispanic spending by Richa Haidu at Reuters. “Not all consumer categories, however, are experiencing a significant decline in Hispanic spending. The purchase of essentials such as food and basic household goods is still on the rise, but at a much slower rate than in recent years, according to research firm Nielsen.”Read more
Target Names Minsok Pak as Company’s Chief Strategy and Innovation Officer “Most recently, Pak was Senior Vice President, LEGO Retail at The LEGO Group. In this role, Pak was responsible for leading LEGO’s branded retail channel, including more than 250 stores and e-commerce sites across 24 markets.”Press release
Lowe’s Fix for Its Home Depot Problem? Increase Hours for Customer-Facing Workers by Phil Wahba at Fortune. “This is one category in retail where service really matters,” Oppenheimer & Co. analyst Brian Nagel told CNBC on Wednesday morning.”Read more
…Where will workers come from? “The effort is to continue to retain our seasonal labor from our spring hires.” See Lowe’s Q2 Call Highlights Below
Whole Foods shareholders vote in approval of Amazon deal at CNBC. “Now, completion of the transaction is subject to regulatory approvals…Though, a source familiar with the matter has told CNBC the deal could happen sooner rather than later.”Read more
Star Wars creates in-store treasure hunt by Anousha Sakoui at Bloomberg. “Starting Sept. 1, which Disney again dubs Force Friday, fans of the sci-fi films can use smartphones to take part in an augmented-reality treasure hunt, like the Pokemon Go craze that gripped video-game fans last year. The worldwide Find the Force hunt will take place over three days, starting in Sydney, and will involve more than 20,000 stores in 30 countries.”Read more
If the Fed doesn’t meet deal’s Oct. 3 deadline, Bass Pro could demand a lower price — or walk away by Paige Yowell at Omaha World-Herald. “Industry analysts say Cabela’s probably is in a hurry to be acquired by Bass Pro, as its sales and stock price fall. Bass, on the other hand, could be wanting to pump the brakes on a deal that some analysts say looks increasingly not so good.”Read more
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Calvin Klein & Tommy Hilfiger North America Q2 Comps -2.0%Press release
For Some Craft Brewers, Sales Are Tapping Out by Jennifer Maloney at Wall Street Journal. “They used to say a rising tide lifts all boats. And it is definitely not that now,” Mr. Steinman said. His firm estimates that shipment volumes declined for 16 of the top 36 craft-style U.S. brewers last year.”Read more (subs.)
Amazon opens its grocery delivery service to Amazon Business customers by Sarah Perez at TechCrunch. “Like the consumer version of the AmazonFresh service, Amazon Business customers will need to have a Prime membership to take advantage of grocery delivery.”Read more
2017 Disability Equality Index Best Places to Work (Walgreens, Walmart, Meijer) Full list
New Balance wins the largest award ever for a U.S. company in a trademark infringement case in China at Boston Herald. “The ruling requires three shoemakers behind the New Boom brand — Zheng Chaozhong, Xin Ping Heng Sporting Goods Ltd. Co. and Bo Si Da Ke Trading Ltd. — to pay nearly $1.5 million in damages for infringing on the company’s signature slanting N logo.”Read more
AutoZone set to open store No. 6,000 this Friday by Meagan Nichols at Memphis Business Journal.Read more
Home Depot Data Breach Attys Seek $18M Fees On $27M Deal by Kat Greene at Law 360. “Attorneys who scored just more than $27 million in settlements from The Home Depot Inc. for banks suing over the 2014 data breach asked a Georgia federal court Wednesday to approve $18 million in fees, arguing their work spurred other payouts for would-be class members out of court.”Read more (subs.)
Amazon expands to 10 bookstores with openings in Seattle area and San Jose this week by Monica Nickelsburg at GeekWire.Read more
The top 7 startups from Y Combinator S’17 Demo Day 2 by John Mannes at TechCrunch. “Standard Cognitionis using machine vision to build the checkout of the future. Called autonomous checkout, the technology will allow shoppers to grab what they want and walk out of a store without having to go to a cashier.”Read more
Walton group donates $120 million to University of Arkansas to create a school of art by Jennifer Joyner at Talk Business. “The gift, announced Wednesday (Aug. 23), is the largest outright donation ever made to a U.S. university to establish a school of art, university officials said.”Read more
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Comparable sales growth of 4.5% (U.S. +4.6%) driven by improved transaction growth of 0.9% and a 3.6% increase in average ticket.
Comp sales of 7.9% in July.
We achieved positive comps in 13 of 14 regions and in all product categories.
Appliances-led product category growth was high single digit comps.
…we are disappointed with some aspects of our performance during the first half of the year.
Q2 comp growth was constrained as a result of disruption caused by changes to our store staffing model earlier in the year.
…we recognize an opportunity to invest in incremental customer-facing hours to ensure that we’re providing an excellent customer experience…We’re taking these decisive actions.
43% comp growth on lowes.com this quarter.
Double digit comps in patio.
(Pro) comps above the Company average.
Comp growth improved sequentially through the quarter but was concerning as a result of the disruption caused by our changes to our store leadership model earlier in the year.
Those changes streamlined management to provide better leadership and accountability.
Specifically, we reduced the number of assistant store managers and eliminated the department manager role and created the service and support managers.
We’re investing in hours at the customer service associate level.
We are primarily focused on adding the incremental labor to the weekend timeframes, as well as high traffic area timelines during the week.
The effort is to continue to retain our seasonal labor from our spring hires.
Comps grew 0.6% in May, 5.3% in June and 7.9% in July.
We’re seeing incremental pressure from our private label credit card program due to increase in program costs driven by higher losses, as well as casualty claims due to increased workers’ compensation costs.
We plan to open 25 stores (less than originally planned)
Analyst:So, were those big box stores Canada, or just supply, just curious what — which ones are sliding.
Richard Maltsbarger: It was a relative mix, primarily within the Canadian market in our Orchard operation.