Eye-on-Retail Tipsheet 11/19/12

Breaking this morning…Lowe’s Q3 Earnings

Lowe’s Reports Third Quarter Sales and Earnings Results.  Highlights:

Q3 comparable comp sales +1.3%  (vs. Home Depot Q3 comp sales +4.2%)

Q3 net earnings of $396 million, a 76% increase vs. same period a year ago (vs. Home Depot Q3 net earnings of $947 million)

Lowe’s full year anticipated sales expected to be flat on a 53 week basis.  (THD anticipates +5.2% growth on same 53 week basis)

Lowe’s plans to open 10 stores in fiscal year ’12

Full Lowe’s Q3 press release:  https://phx.corporate-ir.net/phoenix.zhtml?c=95223&p=irol-newsArticle&ID=1760033&highlight=

Link to today’s Lowe’s Q3 Earnings Conference Call held at 9:00 am EST:  https://phx.corporate-ir.net/phoenix.zhtml?c=95223&p=irol-EventDetails&EventId=4869856 

Tomorrow’s edition of Eye-on-Retail will feature key nuggets from today’s conference call

“2012 Businessperson of the Year” by Fortune.  Of note:

#1- Jeff Bezos, CEO – Amazon

#11- Frank Blake, CEO – Home Depot

#12- Glen Murphy, CEO – GAP

#15- Carol Meyrowitz, CEO – TJX Cos.

#17- Michael Duke, CEO – Walmart

https://money.cnn.com/gallery/news/companies/2012/11/16/business-person-of-the-year.fortune/2.html 

“Amazon’s Jeff Bezos: The ultimate disrupter” by Adam Lashinsky at CNN Money/Fortune.  “Customer focus is a cultural issue, Bezos says, that distinguishes Amazon from other companies, whose chiefs craft strategy in competitive terms. “When they’re in the shower in the morning, they’re thinking about how they’re going to get ahead of one of their top competitors,” Bezos says. “Here in the shower, we’re thinking about how we are going to invent something on behalf of a customer.”  https://management.fortune.cnn.com/2012/11/16/jeff-bezos-amazon/

“Sorry, Netflix Subscribers, Amazon’s No Longer Testing Prime for $7.99 a Month” by Tricia  Duryee at All Things D (Hat Tip: slashgear.com). “Amazon is no longer giving consumers the option of paying $7.99 a month for Amazon Prime, the loyalty program that includes free two-day shipping and video streaming. An Amazon spokesperson confirmed: “We regularly test new options for our customers. At this time, we’ve completed our test and are no longer signing up new customers for Amazon Prime monthly memberships.”  https://allthingsd.com/20121116/sorry-netflix-subscribers-amazons-no-longer-testing-prime-for-7-99-a-month/

“Home Depot opens Mexican store within eyesight of Arizona” by Keith Rosenblum in Inside Tuscon Business.  “The logo of yet another American retail chain now stands tall in this border city, one more domino in a two-decades process that is seeing more U.S. companies become part of the retail landscape in Mexico…it’s 96th and 97th stores in Mexico.”  https://www.insidetucsonbusiness.com/news/home-depot-opens-mexican-store-within-eyesight-of-arizona/article_a451150a-2f46-11e2-9fcc-001a4bcf887a.html

“Walmart, Gap, Best Buy, Costco take on Quebec’s language watchdog over French signs” by Sidhartha Banerjel in Macleans.ca. “Quebec’s language watchdog, The Office Quebecois de la Langue Francaise, wants the retailers to change their signs to either give themselves a generic French name or add a slogan or explanation that reflects what it is they’re selling.  The changes are outlined on a website run by the language agency that gives businesses options on how to change their names. For example, Walmart, a household name on the retail scene that doesn’t really have a French equivalent, could change its signs to “Le Magasin Walmart.” https://www2.macleans.ca/2012/11/18/big-businesses-heading-to-court-against-quebec-government-over-french-signs/

Nielsen Report Shows Business Opportunities among Asian-American Consumers.  Key insights:

If Asian-Americans were a country, they would be the 18th largest economy in the world.

28 percent of Asian-American households have incomes greater than $100,000 compared to 18 percent of total U.S. households.

70 percent of Asian-Americans own smartphones.

Asian-Americans over index on household purchases such as fresh produce; dried vegetables and grains; baby food and supplies; and photographic supplies.

https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20121116005510&div=-1245645151

Valspar Announces Strategic Partnership with Retailer B&Q to Launch the Valspar Brand in the United Kingdom and Ireland.  “Valspar will be positioned as one of B&Q’s flagship paint brands and the two companies are collaborating to create an entirely new consumer experience not seen before in the U.K. decorative paints marketplace…The new retail concept will be rolled out to all 350 locations throughout 2013.”  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20121116005553&div=-1245645151

Eye-on-Retail Tipsheet 11/16/12; Target & Dollar Tree release Q3 earnings

Highlights from Target Q3 Earnings Call on 11/15/12

Q3 US sales increased 3.4% to 16.6 billion in third quarter 2012 from 16.1 billion last year

Q3 US comp +2.9%

Heard on the call…

Online:

Free wi-fi now rolled out across the chain.

Target sees a halo effect from stores to their online site.

Not currently offering “buy online ship to store” but it’s something they’re looking at.

In store, Target has created QR codes for each of their top 20 toys, allowing guests to purchase by scanning the QR code in store and then having the toy shipped anywhere in US for free.

City Target stores:

There are now five City Target stores operating in four different metro areas:  Chicago, LA, San Francisco and Seattle with plans to open three more in 2013.

Typical guest is younger and more affluent than seen across the chain as a whole.

See pics of Seattle City Target here (from Seattle PI):  https://blog.seattlepi.com/thebigblog/2012/07/23/photos-tour-seattles-new-city-target/#6468-28)

Canada:  

Moving forward to open first stores by next April.

5% Reward “Red Card”:  (Note — Target is in love with their Red Card and talked about it at length on the call)

14% penetration on purchases in Q3, up 400 basis points from a year ago.

In Kansas City, where the Red Card was launched a year earlier, penetration reached 20% this month.

Big driver is the debit card which continues to grow at a 3:1 clip vs the credit card. As expected, Red Card use is higher online and in certain categories (assumption being higher dollar ticket items).

Comps:

Comps strongest in food, health and beauty.

Comps in apparel were up slightly, strongest in mens and active wear.

Hardline comps down overall; softest in electronics which reflects mature product cycles.

Pricing:

Target didn’t seem to think that competitors layaway programs were having much of an impact on sales.

Regarding price match policy over holidays, Target doesn’t see much price matching in stores now and doesn’t anticipate much over holidays either.  Will assess program after holidays to see if they should consider in 2013.

https://investors.target.com/phoenix.zhtml?c=65828&p=irol-newsArticle&ID=1759107&highlight= 

Highlights from Dollar Tree Q3 Earnings Release on 11/15/12

Q3 net sales +7.8% (1.72 billion)

Q3 comp sales +1.6

Q3 opened 111 stores, expanded or relocated 16, closed 4.

Q3 retail selling square footage +7.1% compared to a year ago to 40.1 million square feet.

See full release here:  https://www.dollartreeinfo.com/investors/global/releasedetail.cfm?ReleaseID=721513

“How Apple, Target and Starbucks are skirting Seattle’s billboard laws” (Video) by Amy Rolph at Seattle PI / KOMO News in Seattle.  “This is a fascinating report from seattlepi.com’s news partner KOMO News. City law dictates that billboards on buildings can only advertise merchandise actually sold inside — but many companies have found a creative way of getting around that rule.”  https://blog.seattlepi.com/thebigblog/2012/11/14/how-apple-target-and-starbucks-are-skirting-seattles-billboard-laws/  

“Costco (Home Depot & Others) Offers Shoppers Mortgage Refinancing Loans” (Video) on Fox Business News.  “George Mason University professor Anthony Sanders says increasing regulation on banks has opened the door for non-traditional lenders…Home Depot offering home repair loans.”  https://video.foxbusiness.com/v/1971748544001/

“Denver is First to Experience the New Office Depot – a New Store Concept Designed by Customers, for Customers.”  “Office Depot has built an entirely new store experience for its customers, and is debuting it in four new stores in Denver. The new concept store was created to encourage customers to interact more with products, with Office Depot associates, and with each other – all in a brand new store designed around the way customers want to shop. the new Office Depot Denver stores feature a PC Bar where people can sit down, plug in their laptop or tablet and get to work. There is also a computer rental station, free Wi-Fi throughout the store, a recharge station and free, self-serve coffee.”  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20121115005067&div=-1245645151

“Wal-Mart sales under global pressure, shares down” by Brad Dorfman at Reuters. “”When you see a slowdown in sales and then pressure in traffic, that causes investors to be cautious,” Brian Yarbrough, analyst at Edward Jones.  https://www.reuters.com/article/2012/11/15/us-walmart-results-idUSBRE8AE0V420121115

“Wal-Mart Expands Foreign Bribery Investigation” Stephanie Clifford in The New York Times / CNBC:  “Walmart disclosed on Thursday that it has expanded an internal investigation into bribery accusations in Mexico to Brazil, China and India.”  https://www.cnbc.com/id/49842387

“Ahold Expects Markets Conditions to Remain Difficult” by Robert van den Oever in Capital.gr.  “Dutch retailer Royal Ahold NV said Thursday it sees no relief from an intensely competitive U.S. market, as it continues to sacrifice margin in an attempt to attract cost-conscious consumers.”  https://english.capital.gr/News.asp?id=1666691

People Section:  Congrats to Marvin Ellison, Exec. VP at Home Depot, on being named an Outstanding Alumnus at The Fogelman College of Business & Economics.  https://www.hispanicbusiness.com/2012/11/14/u_of_m_business_college_honors.htm

Eye-on-Retail Tipsheet 11/15/12: Walmart Q3 earnings highlights

Breaking News — Highlights from Walmart’s Q3 earnings release this morning…

Q3 Earnings:  $1.08/share (vs. $1.07/share expected by analysts) an 11.3% increase from $.97/share in the same quarter a year ago.

Q3 Net Sales:  $113.2 billion, an increase of 3.4% from Q3 last year.

Q3 Comp Sales US:  +1.5% in 13-week period ending Oct. 26, 2012.

Q3 Op Income:  $6.1 billion.  +4% from last year.

Heard on the Call…

“During the quarter we added approximately 13 million retail square feet through 173 net new, expanded and relocated units”

“1.4% lift in ticket”

“Market share increase of 50 basis points in food, consumables and over the counter combined according to Nielsen”

“Grocery business..delivered a low single digit positive comp”

“Value-pack sizing…helped increase market share in pets by 100 basis points vs. last year”

“Top layaway items included 50″ televisions, gaming consoles and tablets”

“Polaris – our search engine developed in-house is improving conversions by 10-15%”

“During Q3 we opened 59 Supercenters”

“We also continue to accelerate growth in our small formats, which now represents approximately 250 units, in the third quarter we opened another 33 Neighborhood  Markets across the country, this is in addition to the 23 we opened in the first half of this year, this format allows us to grow coast to coast with an eye towards localizing it for a local community.”

“Neighborhood Market formats comping in the mid single digits”

“On track to add 125 Supercenters and 80 small stores this fiscal year”

“Open 40-50 total units in Q4 including 20-25 small stores”

“We’ll generate over 2 billion impressions across social media this holiday, more than three times last years total.”

“Projecting Q4 comps…from 1%-3% for Walmart US”

Sam’s Club breakout Q3

Q3 Sam’s Club comp sales, without fuel:  +2.7% from Q3 last year

“7 new clubs opened (Q3)”

“Traffic up 1.5% and ticket up 1.2%”

“Disappointed that comp sales were beneath our guidance”

“Rotisserie chicken — when there is one in the basket ticket is larger”

“Reduced prices on apples..beauty and baby.”

“Baby category up double digit comps with improvement in distribution”

“Lowered prices on condiments, cooking oil and paper products”

“….learn from our memebership pilot in Texas”

“Projecting Q4 comps…from 1.5%-3.5% for Sam’s Club”

https://news.walmart.com/news-archive/investors/walmart-reports-q3-eps-of-108-reaffirms-top-end-of-full-year-eps-guidance-company-is-well-positioned-for-q4-holidays-1759095

Walmart’s New Subscription Service Offers a Box of Goodies on the Cheap  “Today it (Walmart) launches Goodies Co., a monthly service that will send you a package of sweets and snacks for $7, including shipping. The twist on this particular offering is something that the megaretailer does best — pricing things unbelievably low.  Goodies, which is coming out of beta today, is being run entirely by @WalmartLabs, Walmart’s tech team in San Bruno, Calif. While it continues in the experiment phase (as evidenced by not using the Walmart brand yet), the employees at @WalmartLabs will curate and source the brands — even though Walmart stores represent the largest grocer in the country.”  https://www.walmartlabs.com/walmarts-new-subscription-service-offers-a-box-of-goodies-on-the-cheap/ 

“Hate big box stores? Home Depot wants you to feel the love” by Steve Payne in Canadian Contractor:  “The challenge for the Home Depot (and all retailers), Hamad said, was to “make an emotional connection with contractors.” And this is often difficult, he admitted, because “25 per cent of contractors, only, go to [our] pro desk. The other 75 per cent don’t. They shop in the aisles.” https://www.canadiancontractor.ca/industry/hate-big-box-stores-home-depot-wants-you-to-feel-the-love#ixzz2C9QV12Or

“Big Businesses Find a Cause They Can Support: Small Businesses” by Robb Mandelbaum in The New York Times.  “Big businesses reaching out to help smaller businesses has come into vogue since the recession.  And several corporations have run contests — Wal-Mart, Chase Bank and Staples have furnished winning small companies with opportunities for retail distribution, capital and office equipment.”  https://www.nytimes.com/2012/11/15/business/smallbusiness/samuel-adams-brewer-counsels-small-businesses.html?pagewanted=all

NBC News — “Target employees protest over Thanksgiving shifts” by Ben Popken. “Target employees are seeing red after the retailer announced its stores will open at 9 p.m. on Thanksgiving night, cutting into holiday time for workers. An online petition asking Target to not open on Thanksgiving has over 179,000 signatures, and the number continues to rise.” https://lifeinc.today.com/_news/2012/11/13/15136983-target-employees-protest-over-thanksgiving-shifts?lite 

“How The Little Boston Shop Polka Dog Bakery Wound Up In Target” by David Cooperstein at Forbes. “How they were found remains a mystery. Ironically in today’s world, Target reached out to the owners of Polka Dog with a letter. Except for a comment about having scouts around the country, Deb and Rob do not know for sure how they were chosen to get that letter.”  https://www.forbes.com/sites/davidcooperstein/2012/11/13/how-target-put-main-street-into-its-big-box-brand/

“Analysis: Amazon faces new obstacles in fight for holiday dollars” by Alistair Barr in Reuters. “”The big retailers are in a much better space than they were last year,” Nemer said.  Wal-Mart, the world’s largest retailer, has probably made the most progress online, the analyst added.  It launched a new search engine for Walmart.com this year that has led to shoppers being 10 to 15 percent more likely to purchase after searching for products on the site, according to Wal-Mart.  Wal-Mart also recently started same-day delivery tests in San Francisco, San Jose, Northern Virginia, Philadelphia and Minneapolis, using some of its 4,000 stores as distribution centers for quicker shipping of online orders.”  https://www.reuters.com/article/2012/11/14/us-amazon-holiday-idUSBRE8AD09U20121114

“Walmart Kicks Sustainability Up Another Big Notch” at sustainablebusiness.com.  “Right now, the Walmart Sustainability Index covers about 100 different categories such as apparel, electronics and toys, and  that number should double by the end of the year. Roughly 500 suppliers have gone through the evaluation process.”  https://www.sustainablebusiness.com/index.cfm/go/news.display/id/24279 

“Home Depot Adopts Feline Holiday Mascot” by Natalie Zmuda at Ad Age.  “…And so was born Richard the Cat. Described as quick-witted and sarcastic, on his Tumblr page Richard says his family is “‘how-to helpless’ — especially around the holidays.” With that in mind, Richard will document his family’s disasters for consumers’ enjoyment during the holiday season. He’ll also be tweeting @RichardTheCat and photo bombing customers posing with their Christmas trees at Home Depot’s in-store Social Booth. There are also plans for Richard to pop up on Facebook, Pinterest, Instagram and Foursquare. Home Depot is working with Carrot Creative on the project.”  https://adage.com/article/cmo-strategy/home-depot-adopts-feline-holiday-mascot-richard-cat/238323/ 

“Meijer Upgrades Meat Department” by Roseanne Harper in Supermarket News.  ““They took out their meat cutters at the time to try to stay competitive, but you can’t out-Wal-Mart Wal-Mart. So, now they’ve decided to do something to differentiate themselves.”   https://supermarketnews.com/meat/meijer-upgrades-meat-department#ixzz2CFxQF59I

“Rona woes: Stock soars after major shareholder calls for overhaul” by Ross Marowits in The Canadian Press.  “Rona’s shares surged Wednesday after the company’s second-largest institutional shareholder said it was seeking to sweep out the existing board and install new directors.”  https://www.edmontonjournal.com/business/Rona+woes+Stock+soars+after+major+shareholder+calls+overhaul/7547094/story.html

 

Eye-on-Retail Tipsheet 11/14/12

Home Depot 3Q results edge up, beat Street’s view by Mae Anderson in AP.  “Blake’s statement signaled a “stronger tone” on the housing market than in prior quarters, said NBG Productions analyst Brian S. Sozzi, who called the remarks encouraging.”  https://www.google.com/hostednews/ap/article/ALeqM5h5wqndoxklbLIiQhqZaE6NLqJ6Ng?docId=4a922de3266b404ea8ce2fcf2b7096a8

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Digging deeper into the Home Depot earnings call….  

Pro business

Frank Blake: “Larger Pro’s doing better than smaller Pro’s.”

Carol Tome: “But only 13% of Pro sales are with larger Pro’s.”

Housing recovery

Blake: “So the positive comp in this quarter..combined with every quarter this year..and strength in the core of the business..we’re not lighting rockets over this and we don’t want to get out over our ski’s..but we’re starting to see the recovery of the housing market.”

China

Blake:  “After several years of effort, we concluded that we could not make our big box retail model profitable there.”

Holiday sales 

Tome:  “Don’t forget that last Dec. we had a positive comp in the US of 7.1% so we’d better have a good holiday to comp that.”

Departments that comped

Craig Menear: “Dept’s that outperformed the company avg. comp were:  lumber, decor, paint, kitchen, outdoor garden, indoor garden, lighting, bath, electrical, hardware and flooring.”

Menear:  “Extra fall event and great weather drove double digit comps in: walk behind mowers, riding mowers, pressure washers, exterior stains and chemicals”

Avg. ticket

Craig Menear responding to a question regarding under $50 transactions being flat:  “When we look at transactions under $50, there are an awful lot of those that fall into a few categories…we’re very pleased how we did in outside garden..but when you look at what has happened in some categories…the average unit retail growth, for example led vs. incandescent bulbs…when you look at the expansion of what has happened in the retail side of paint, when you had transactions that have gone from under $20 to over $20, and..driving off-shelf special buys, value packs…that has led to a shift in transactions..”

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How Walmart is going all out with mobile by Paul Sloan at CNET.  “The latest version of Walmart’s iPhone app includes something called “in-store mode,” which is available for the iPhone and coming soon for Android phones. That’s the key feature aimed at keeping Walmart shoppers buying from Walmart, even when what they want isn’t in the store and a rival outlet is just a few taps away in the palm of their hands… Two weeks after Walmart launched “in-store mode” with its app, roughly 60 percent of its shoppers opted to use it. Moreover, about 12 percent of Walmart’s online sales are now coming from customers who are inside a store and using “in-store mode.” All of Walmart’s 4,000 U.S. stores have an “in-store app.”   https://news.cnet.com/8301-1035_3-57548785-94/how-walmart-is-going-all-out-with-mobile/

“Dick’s Sporting Goods CEO Discusses Q3 2012 Results – Earnings Call Transcript” in Seeking Alpha. https://seekingalpha.com/article/1004531-dick-s-sporting-goods-ceo-discusses-q3-2012-results-earnings-call-transcript?page=1

Costco: “On the New Shopping List: Milk, Bread, Eggs and a Mortgage” by Stephanie Clifford and Jessica Silver-Greenberg in The New York Times.  “While Ms. Neubauer, 27, said she was surprised to find the warehouse club selling financial products, she and her husband saved about $200 a month by refinancing there this year. She also bought home insurance from Costco, she said, again because it was cheaper there.”  https://www.nytimes.com/2012/11/14/business/major-retailers-start-selling-financial-products-challenging-banks.html?_r=0

Rite-Aid presentation (PowerPoint) at Morgan Stanley Global Consumer Confidence on 11/13/12.  Includes company overview, current initiatives, new store formats, earnings guidance, etc.  https://www.riteaid.com/www.riteaid.com/w-content/images/company/investors/Morgan_Stanley_11_13_12.pdf

Walgreens presents (PowerPoint and audio) at Lazard Capital Markets Healthcare Conference on 11/13/12.  Takeaway fact — 65% of the US population lives within three miles of a Walgreens, compared to 43% living withing three miles of a Mass store.  https://wsw.com/webcast/lz13/register.aspx?conf=lz13&page=wag&url=http%3A//wsw.com/webcast/lz13/wag/

Family Dollar presentation (PowerPoint and audio) at Morgan Stanley Global Consumer & Retail Conference on 11/13/12.  https://corporate.familydollar.com/pages/investors.aspx

CVS presents (audio) at Lazard Capital Markets Healthcare Conference on 11/13/12.  https://phx.corporate-ir.net/phoenix.zhtml?c=99533&p=irol-EventDetails&EventId=4864716

Accenture Study Finds Half of U.S. Consumers Intend to Purchase Luxury Products in Next Six Months; Small Luxuries Entice Shoppers to Splurge.  “The top reason for shopping in physical stores is to see all the choices in person (38 percent). Nearly a third (30 percent) of shoppers in this category prefer online retailers to get the best price and one-quarter (25 percent) value the convenience of online shopping.The study also found that showrooming, or viewing a product in a store and then going online to make the purchase, plays an important role in luxury purchases. In the past six months, one in five consumers visited a store to experience a luxury product in person and then purchased the product online.”   https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20121113005885&div=-1245645151

Survey: Nearly Half of Online Holiday Shopping Will Take Place on Tablets.  “44 Percent of Online Shoppers Will Turn to Tablets for Holiday Purchases this Year; Across Devices, 63 Percent Plan to use Online Catalogs and Gift Guides.  Detailed product reviews are one of the most important requirements for online shoppers, but lack of product information is their biggest gripe, cited among 39% of online shoppers.”  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20121113005391&div=-1245645151

 

 

Eye-on-Retail Tipsheet 11/13/12

Today at a glance:

Home Depot Q3 earnings call @ 9:00am EST.  https://phx.corporate-ir.net/phoenix.zhtml?c=63646&p=irol-irhome&HD%20INVESTOR&viewTaskName=ExternalDirectView

CVS to present at Lazard Capital Markets 9th Annual Healthcare Conference @ 9:00am EST. https://phx.corporate-ir.net/phoenix.zhtml?c=99533&p=irol-EventDetails&EventId=4864716 

Dick’s Sporting Goods — conference call to discuss Q3 earnings @ 10:00am EST. https://www.dickssportinggoods.com/investors

Rite Aid to present at Morgan Stanley Global Consumer & Retail Conference November 13 @ 1:35 EST.  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20121109005892&div=-1245645151

Walgreens  to present at Lazard Capital Markets 9th Annual Healthcare Conference @ 3:30pm EST.  https://investor.walgreens.com/

The News that Matters:

Highlights from Twitter Chat on 11/12 with Brooke Buchanan, Director, Communication & Sustainability at Walmart.  Hosted by Aman Singh at CSRwire and Nick Aster at Triple Pundit:

Walmart revealed that “buyers will have sustainability objectives in their evaluations next year” Asked what they’re doing with information collected via supplier sustainability scorecards, Walmart responded that “index scorecard data is being used by buyers in business planning and to drive innovation.”

Walmart said they’re the largest green power purchaser in the US and is piloting on-site industrial wind turbines, fuel cells and energy efficiency.  They have 170+ solar installations worldwide and a goal to have 1,000 by 2020.  Their goal is to reduce packaging by 5% by 2013 (using a 2008 baseline).  Walmart said that “suppliers can show sustainability leadership and help at https://www.walmartsustainabilityhub.com/

Asked which sector has responded most favorably to Walmart’s sustainability index they cited “real leadership from many categories – beer and wine, computers, cereals and others”.

Money quote from Walmart – “Our customers shouldn’t have to choose between products they love/can afford and green products.”

Link to Twitter Chat home page:  https://www.triplepundit.com/2012/11/walmart-sustainability-chat/

Hands on experience with new Amazon locker (Video) — “Who’s afraid of Amazon locker?” by Rocky Agrawal in Venture Beat:   “For the company that invented one-click ordering, the experience is surprisingly kludgy. The touch screen isn’t very responsive. (In the video, you can see where letters register incorrectly or don’t register at all.)  But despite my nitpicking of the user experience, this solves a real pain point for online commerce.”https://venturebeat.com/2012/11/12/whos-afraid-of-amazon-locker/#aBBhhVjKFgw72qvy.99

“ShopRunner Takes On Amazon With Local Delivery System For Online Retail Purchases” by Leena Rao in Techcrunch:  “The company’s service offers an Amazon Prime-like unlimited, free two-day shipping service from a number of online retailers with no minimum order size. The company’s network includes Lord & Taylor, Toys R Us, Sports Authority, GNC, drugstore.com, inc., Borders, PetSmart and Newegg.com.”  https://techcrunch.com/2012/11/12/shoprunner-takes-on-amazon-with-local-delivery-system-for-online-retail-purchases/

“Rona Luring Lowe’s Back to Bid With CEO’s Exit” by Frederic Tomesco in Businessweek: ““As a shareholder, we hope that Mr. Dutton’s departure signals that the Rona board will be reassessing all avenues to unlock shareholder value,” Richard Fortin, Calgary-based portfolio manager at Bissett Investment Management, said in a telephone interview. “The obvious one is going back to the table with Lowe’s.”  https://www.businessweek.com/news/2012-11-12/rona-luring-lowe-s-back-to-bid-with-ceo-s-exit

Target’s Black Friday to start at 9 p.m. Thanksgiving Day” by Chris Isidore in CNN Money:  “”We heard from our guests that they look forward to kicking off their holiday shopping with deal-hunting on Thanksgiving night,” said Kathee Tesija, executive vice president, merchandising, for Target. “Opening at 9 p.m. gives Target’s Black Friday guests a more convenient way to create an after-dinner shopping event that the entire family can enjoy.”  https://money.cnn.com/2012/11/12/news/companies/target-thanksgiving-opening/

“Apple retail stores most productive in US – by far” by Rik Myslewski in The Register: “According to a new study by the research firm Retail Sails, Apple’s real-world stores earned an average of $6,050 per square foot during the year ending in June. Tiffany pulled in a distant $3,017, and third-place yoga and running-gear purveyor lululemon athletica was far behind at $1,936.”  https://www.theregister.co.uk/2012/11/13/apple_retail_juggernaut/

“Lowe’s Iris Smart Kit Named as CES Innovations 2013 Design and Engineering Award Honoree.”  “Lowe’s entered the Smart Home market in July with the launch of its new, award- winning Smart Kit. Lowe’s offers three starter kits: Iris Safe & Secure, Iris Comfort & Control and Iris Smart Kit. Iris is available in more than 500 Lowe’s stores nationwide and on Lowes.com/Iris.”  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20121112006535&div=-1245645151

Eye-on-Retail Tipsheet 11/12/12

“Rona president and CEO steps down after 20 years” from Maclean’s:  “One of Rona’s largest shareholders says the home-improvement retailer’s board should launch discussions with U.S. rival Lowe’s following the sudden departure of long-time chief executive Robert Dutton…”Clearly, retailing has changed dramatically and you’ve got a tremendous competitor in Home Depot… the best course would be probably to open up discussions with Lowe’s.”  https://www2.macleans.ca/2012/11/09/rona-president-and-ceo-steps-down-after-20-years/

Target CMO Jeff Jones speaks from the Forbes CMO Summit on “The New Rules of Engagement”; from Jennifer Rooney at Forbes (Video):  “For me the one thing is almost the validation that we’re all struggling with the one thing…what does engagement mean in today’s world…the reality is brands today and the concept of brand management which is really one about I as a marketer get to control my brand…it’s so clear that it (engagement) is at the center of what all of us are trying to think about…nobody has the perfect engagement model…we’re all struggling with the same thing but we know how important it is.”  https://www.forbes.com/sites/jenniferrooney/2012/11/10/behind-the-brand-why-target-got-revenge/

“How Home Depot Became a Pinterest Powerhouse” by Allison Boyer in blogworld:  “One might not at first think that power tools and lumber have a place on the Internet’s current social media darling, Pinterest, but this visual platform is being dominated by none other than Home Depot. Currently, Home Depot has over 12,000 profile followers on Pinterest.”  https://www.blogworld.com/2012/11/09/how-home-depot-became-a-pinterest-powerhouse-case-study/

“Walmart Black Friday Strike Being Organized Online For Stores Across U.S.” by Kathleen Miles at Huffington Post:  “Black Friday, the day after Thanksgiving regarded as one of the biggest shopping days of the year, may be dramatically different this year.  Organizers are planning a nationwide strike against Walmart, the largest retailer in the world, and are banking on a new strategy: online organizing.”  https://www.huffingtonpost.com/2012/11/08/walmart-black-friday-strike-organized-online-video_n_2094698.html#slide=1605073

“Earnings Preview:  Home Depot 3Q Results” in Bloomberg Businessweek:  “Home Depot Inc., the nation’s largest home-improvement retailer, reports third-quarter results before the market opens on Tuesday…Analysts expect higher net income and revenue from the largest U.S. home-improvement retailer.”  https://www.businessweek.com/ap/2012-11-09/earnings-preview-home-depot-3q-results

For $100K you may be able to buy your own Sears Hometown & Outlet Store in Cleveland….Sears eyes return with outlet store” by David Davis in Cleveland Daily Banner:  “Sears Hometown Stores regional development manager Jackie Adams said Tuesday that the retailer is looking for an entrepreneur in Cleveland to own and operate a store of about 10,000 square feet in size.”  https://www.clevelandbanner.com/view/full_story/20763963/article-Sears-eyes-return-with-outlet-store?instance=homefirstleft

Behind the Scenes of Target’s Holiday Commercial:  “We wanted to do something slightly different this year, so the notion of “Dream Big. Save bigger” was perfect.  This is also one of the first years where we’re really stressing the “Expect More. Pay Less” brand promise in every single commercial. We wanted to turn these commercials not just into a fantastical world, but into a world that everyone can afford.”  https://abullseyeview.com/video-bullseye-is-coming-to-town-behind-the-scenes-of-target-holiday-commercial/?utm_source=rss&utm_medium=rss&utm_campaign=video-bullseye-is-coming-to-town-behind-the-scenes-of-target-holiday-commercial

“The Walmart Effect: 4 Best Practices for Dealing with that First Huge Order” by Christopher Koch in Forbes:  “When a small business gets its first big order it can seem like manna from heaven. But wipe those dollar signs out of your eyes because it’s really more like a shock to the system.”  https://www.forbes.com/sites/sap/2012/11/07/the-walmart-effect-4-best-practices-for-dealing-with-that-first-huge-order/

“7-Eleven, Radio Shack Lead List of Fastest Phone Responders” by Adam Blair in RIS:  ” A complementary study conducted in May 2012 found that consumers were 59% more likely to buy and 73% more likely to recommend a brand when their call was answered in less than one minute.”  https://risnews.edgl.com/retail-trends/7-Eleven,-RadioShack-Lead-List-of-Fastest-Phone-Responders83162

“Publix profits rise 18.1% from last year” by Kyle Kennedy at Ledger Media Group:  “You have to give people a reason to shop at your store, and you can’t be in the big middle (middle ground of supermarkets) anymore,” said George, chairman of St. Joseph’s food marketing department.”  https://www.newschief.com/article/20121109/NEWS/121109971/-1/news02?Title=Publix-profits-rise-18-1-from-last-year-

“Walmart Canada unveils first-of-its-kind supercube trailer” at Daily News:  “The extended semi-trailer of up to 60-ft, 6 inches provides about 28% more volume than the existing 53-ft semi-trailer with a floor that is lower, not actually higher, than a typical trailer currently in use.”  https://www.trucknews.com/news/walmart-canada-unveils-first-of-its-kind-supercube-trailer/1001824268/

 

Week at a Glance:

11/12

“Twitter Chat” with Walmart sustainability Exec Brooke Buchanan @5pm EST.  https://www.triplepundit.com/2012/11/walmart-sustainability-chat/

11/13

Home Depot Q3 earnings call @ 9:00am EST.  https://phx.corporate-ir.net/phoenix.zhtml?c=63646&p=irol-irhome&HD%20INVESTOR&viewTaskName=ExternalDirectView

CVS to present at Lazard Capital Markets 9th Annual Healthcare Conference @ 9:00am EST. https://phx.corporate-ir.net/phoenix.zhtml?c=99533&p=irol-EventDetails&EventId=4864716 

Dick’s Sporting Goods — conference call to discuss Q3 earnings @ 10:00am EST. https://www.dickssportinggoods.com/investors

Rite Aid to present at Morgan Stanley Global Consumer & Retail Conference November 13 @ 1:35 EST.  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20121109005892&div=-1245645151

 Walgreens  to present at Lazard Capital Markets 9th Annual Healthcare Conference @ 3:30pm EST.  https://investor.walgreens.com/

11/14

Rite Aid to present at Citi 2012 North American Credit Conference: @ 9:20am EST  https://www.riteaid.com/company/investors/presentations.jsf

11/15

Walmart Q3 earnings release @ 7:00am EST.  https://news.walmart.com/events/investors/fy2013-q3-earnings-release-4222642

Ross Stores Q3 earnings release and conference call @ 8:30am EST.  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20121108005460&div=-1245645151

Dollar Tree Q3 earnings conference call: @ 9am EST.   www.dollartreeinfo.com/investors/news/events.

Target Q3 earnings call @10:30am EST.  https://investors.target.com/phoenix.zhtml?c=65828&p=irol-EventDetails&EventId=4829614

Walgreens to present at Credit Suisse 2012 Healthcare Conference @1:30pm EST.  https://investor.walgreens.com/

 

 

 

Eye-on-Retail Tipsheet 11/9/12

Walmart “Guarantees” Customers its Best Black Friday Ever.  “This year, Walmart will be kicking off its in-store specials at 8 p.m. on Thanksgiving Day, followed by its big electronics event at 10 p.m. and a weekend full of savings starting at 5 a.m. on Friday, November 23.”  https://news.walmart.com/news-archive/2012/11/08/walmart-guarantees-customers-its-best-black-friday-ever

“Twitter Chat” with Walmart sustainability Exec Brooke Buchanan on Monday, Nov. 12th @5pm EST: “The chat will be led by Brooke Buchanan, Director, Communications & Sustainability at Walmart, and will include other Walmart associates. CSRwire’s Editorial Director, Aman Singh, and Nick Aster will help facilitate the chat, providing an opportunity for journalists, bloggers, industry analysts and other interested parties to get an in-depth look at Walmart’s sustainability strategy.”  https://www.triplepundit.com/2012/11/walmart-sustainability-chat/

Family Dollar to Present at the Morgan Stanley 2012 Global Consumer Conference on Tuesday, Nov. 13th @2:45pm EST: “Family Dollar Stores, Inc. announced today that the Company will make a presentation to the investment community at the Morgan Stanley 2012 Global Consumer Conference.  A webcast of this presentation can be accessed through the Company’s website at https://corporate.familydollar.com in the “Investors” section under “Presentations & Webcasts.”   https://corporate.familydollar.com/pages/investors.aspx

“Target to showcase CNET reviews as it courts gadget shoppers” by Jessica Wohl in Reuters:  “The partnership between the discount chain and CNET, a website popular with gadget enthusiasts and known for its consumer electronics reviews, kicks off this week after a small test this spring showed that Target’s shoppers appreciated getting third-party reviews in stores.”  https://www.reuters.com/article/2012/11/08/target-cnet-idUSL1E8M560F20121108

“Sears launches a free-shipping program” by Thad Rueter in Internet Retailer — Like Amazon Prime, the service offers two-day shipping for $79 annually.  “The shipping also applies to items purchased from Kmart and the Sears Marketplace, a sales forum hosted by Sears. For 99 cents extra per order, program members can receive faster shipping. Consumers can try out a membership for 90 days for free.”  https://www.internetretailer.com/2012/11/05/sears-launches-free-shipping-program

Walgreens CFO to Present at Credit Suisse 2012 Health Care Conference on Thursday, Nov. 15 @1:30pm EST:  “Wade Miquelon, chief financial officer and president, international, Walgreen Co. will present during the Credit Suisse 2012 Health Care Conference at the Arizona Biltmore Hotel, Phoenix.  Miquelon will discuss Walgreens strategies for becoming America’s first choice for health and daily living.  Miquelon’s presentation will be webcast live and can be heard by visiting https://investor.walgreens.com/events.cfm.     https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20121108006465&div=-1245645151

“Amazon unveils wine marketplace in some U.S. states” by Alistair Barr in Reuters:  “The service will be available to California, Connecticut, Florida, Idaho, Illinois, Iowa, Nebraska, Nevada, North Carolina, Oregon, Washington, Wyoming and the District of Columbia.  Amazon said more states will be added “soon.””  https://www.reuters.com/article/2012/11/08/us-amazon-wine-idUSBRE8A710Y20121108

“Staples lets Amazon use stores as package pickup points” by Allison Enright in Internet Retailer:  “A search today of Amazon.com for locker locations listed eight Staples stores with Amazon Lockers…The searches also returned 12 RadioShack locations in the San Francisco metro area as having Amazon Lockers.”  https://www.internetretailer.com/2012/11/08/staples-lets-amazon-use-stores-package-pick-points

“Rona’s weak results make Lowe’s deal less likely – analyst”  by Jonathan Ratner in Financial Post:  “…Unfortunately, the Canadian home improvement retailer’s earnings were so poor that the analyst was forced to reduce the probability that Lowe’s will pursue a transaction. Mr. Howlett now sees the odds of that happening at 33%, down from 60% previously.”  https://business.financialpost.com/2012/11/08/ronas-weak-results-make-lowes-deal-less-likely-analyst/

Wegmans to Open Italian Restaurant by Rachel Barnhart at WHAM 13 ABC (includes video clip):  “Wegmans plans to open its first-ever Italian restaurant in NY.”   https://www.13wham.com/news/local/story/wegmans/VtQTiVPyNUChqAiDj6vf-g.cspx?autoplay=1

 

 

Eye-on-Retail Thursday Tipsheet

Eye-on-Retail

Retail Intel for the Vendor Community

11/8/12

“One on One with The Home Depot’s Carol Tome” from Womenetics.com:  Defining Success — “I like to refer to what Maya Angelou said about success: ‘Pursue the things you love doing and then do them so well that people can’t take their eyes off of you.’ And in terms of my legacy, I want them to say that I’ve put together an incredible team…”  https://www.womenetics.com/ROLE-MODELS/one-on-one-with-the-home-depots-carol-tome

“Walmart’s small stores take on local supermarkets” by Lisa Liddane with The Orange County Register: “The four Neighborhood Markets in Orange County represent about a seventh of Walmart’s total of 27 new small-format U.S. stores in fiscal year 2012. Next year, the company plans to open 80 more, according to Bill Simon, U.S. president and CEO of Wal-Mart Stores Inc. The company plans to have more than 500 Neighborhood Markets by fiscal year 2016.”  https://www.ocregister.com/articles/walmart-376846-stores-new.html

“Amazon Taunts Retailers, Netflix With $8-Per-Month Prime Plan” by Marcus Wohlson in Wired:  “Only a company as sprawling and powerful as Amazon could take a popular service, make it more expensive, and still reasonably expect that competitors will cringe at the move. Yet Netflix as well as retailers online and off all have reason to fret over Amazon’s recent decision to offer shoppers the option of paying $7.99 per month for Amazon Prime rather than a single $79 annual fee.”  https://www.wired.com/business/2012/11/amazon-monthly-prime-plan/

“Amazon Offers Global Selling Guide” by Julia Wilkinson in EcommerceBytes.com:  “The manual is a general outline of the various considerations sellers need to take into account when deciding to branch out by listing their inventory on Amazon’s international marketplaces, and the benefits of expanding their customer base to outside their home country.”  https://www.ecommercebytes.com/cab/abn/y12/m11/i07/s03

Barbara Thau in Forbes, “Dollar Chains Tap Smokes, Booze to Drive Sales, Fight Wal-Mart’s Small-Format Stores”: “Dollar stores have undergone an extreme makeover in recent years, emerging as the star performers of the retail sector amid a down economy. Now the nation’s biggest dollar chains are turning to so-called “sin items” to churn even more sales.” https://www.forbes.com/sites/barbarathau/2012/11/06/dollar-chains-tap-smokes-booze-to-drive-sales-fight-wal-marts-small-format-stores/

Lowe’s putting “quiet pressure” on Rona to sell in Canada?  —  “U.S. hardware chain Lowes aims to expand into Winnipeg”on CTV Winnipeg News:  “Earlier this year, Lowes failed in its bid to buy Canadian company Rona.  Cyrenne said acquiring Rona could be Lowes’ real motivation for setting up shop in a city like Winnipeg.”   https://winnipeg.ctvnews.ca/u-s-hardware-chain-lowes-aims-to-expand-into-winnipeg-1.1025365

“Rona Inc’s profit drops, says “progress interrupted”” by  Allison Martell in Reuters: “Lowe’s takeover proposal, which never made it to the formal offer stage, became a hot-button issue during this year’s provincial election in Quebec, where Rona has deep roots. Politicians from the incumbent Liberal Party and the election’s eventual winner, the Parti Quebecois, both opposed the plan.”  https://www.reuters.com/article/2012/11/07/us-rona-results-idUSBRE8A61JN20121107

NBC Today video footage from inside Home Depot’s Atlanta “war room” amid response to Sandy.  “About 350 people…take emergency orders, monitor news reports and social media and figure out how to stock stores in ravaged communities.” https://video.today.msnbc.msn.com/today/49672676#49672676

“Walmart and Mattel open a digital pop-up toy store” by Hollie Shaw with Financial Post:  “Consumers walking by the promotion in the PATH underground commuter walkway are able to scan QR codes to buy popular Mattel items this season from Barbie, Hot Wheels, and more. It includes free shipping.”  https://business.financialpost.com/2012/11/05/walmart-and-mattel-open-a-digital-pop-up-toy-store/

“Whole Foods’ freshness starting to wilt” by Ken Shreve in msn Money:  “…since the start of the bull market in March 2009, the stock has surged 700%. This prompts a question: Has the big money already been made?  https://money.msn.com/top-stocks/post.aspx?post=fd83b49e-8f43-4534-aec5-1ec7c6be3565

“Target to Close Four Underperforming Stores” by Jake Anderson in Twin Cities Business:  “Minneapolis-based Target Corporation, which is gearing up to open 125 stores in Canada and continues to add locations in the United States, said Wednesday that it is shuttering four underperforming U.S. stores.”  https://tcbmag.com/News/Recent-News/2012/November/Target-to-Close-Four-Underperforming-Stores