Eye-on-Retail Tipsheet 12/4/12: 3D Printing at Staples, Consumers open to mortgages at Walmart

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“Consumers open to putting mortgages from Wal-Mart on their shopping list” by Rick  Rouan at Columbus Business First via Reuters.  “Charlotte, N.C.-based Carlisle & Gallagher Consulting Group’s study of 618 U.S. consumers says that alternative financial services providers are threatening banks’ dominance in the lending market. The survey found that one in three consumers would get a mortgage from Wal-Mart Stores Inc. and about half would be willing to finance their home purchase through eBay Inc.’s online payment subsidiary PayPal Inc.”  https://www.bizjournals.com/columbus/news/2012/12/03/consumers-open-to-putting-mortgages.html

 

“Staples Announces In-Store 3-D Printing Service” by Mike Senese at Wired.  “A new service called “Staples Easy 3D” will allow customers to upload their designs to Staples’ website, then pick up the printed objects at their local office supply megastore, or have them shipped to their home or business — not unlike the photo- and document-printing service the company already offers.  The Iris printers employ an innovative method to generate objects, using reams of paper that are cut and printed while being stacked and glued together. This technique allows for a high-resolution layer thickness of 100 microns, similar to that of the MakerBot Replicator 2, but not quite as fine as the 25-micron capability of the Form 1.”  https://www.wired.com/design/2012/11/staples-goes-3-d/

 

” Initial read on Neiman Marcus and Target holiday gift collection” by Maria Halkias at Dallas Morning News.  “Analysts this morning are starting to call the Neiman Marcus/Target holiday gift collection launch over the weekend a disappointment.  Citibank analyst Deborah Weinswig titled her report: “Don’t believe the hype: Target and Neiman Marcus Collection Disappoints.”  Here’s what Weinswig said: At the New York City Target location “we visited on December 1 for the official launch, we were disappointed by in-store execution. The collection was tucked in the back of the store, shelves were full and messy, and we saw little traffic,” Weinswig said. “We checked across the country with our network of trusted contacts and heard very similar accounts of in-store experiences.”  https://bizbeatblog.dallasnews.com/2012/12/initial-read-on-neiman-marcus-and-target-holiday-gift-collection.html/

 

“Family Dollar names senior VP for food” by Jennifer Thomas in Charlotte Business Journal.  “Family Dollar Stores Inc. has promoted Tammy DeBoer to senior vice president for food…DeBoer joined Family Dollar in June as director of private brands. She previously was vice president and general manager for Salisbury-based Delhaize America Inc. at its grocery chain Bloom, which has been shuttered. She holds a bachelor’s degree from Appalachian State University.”  https://www.bizjournals.com/charlotte/news/2012/12/03/family-dollar-names-senior-vp-for-food.html

 

“Wegmans (Northborough, MA location) Closing Facebook Page with Nearly 7,500 Followers” by Charlene Arsenault in Northborough Patch.  “What triggered the final decision was a posted comment that went unnoticed for too long,” she added. “The store felt terrible and decided that if they can’t do Facebook right, meeting the high standards we set for ourselves, they’d rather not do it all. And, we support that decision.  Natale said the disappointment was expected, and some advised that Wegmans shut down the Facebook page without an announcement.  “That’s just not our style,” she said.”  https://northborough.patch.com/articles/wegmans-gets-nearly-7-500-fb-fans-closing-fb-page

 

“Tesco lost grocery market share in past quarter” in Reuters.  “Market researcher Kantar Worldpanel said Tesco’s grocery market share (in Britain) edged down to 30.7 percent in the 12 weeks to Nov.25, having been 31.0 percent in the 12 weeks to Nov. 27 last year.  Wal-Mart Stores’ Asda, Britain’s No. 2 grocer, saw its market share edge down 0.1 percent to 17.3 percent.  The big winner was No. 3 grocer J Sainsbury. Its sales rose 4.7 percent and its share rose 0.2 percent to 16.9 percent. Last month Sainsbury’s posted a 5.4 percent increase in first-half profit.  https://www.reuters.com/article/2012/12/04/britain-grocers-idUSL5E8N488X20121204

 

Retailers Investing More in Digital Marketing for Holidays, BDO USA Survey Finds.  “With Google reporting that four out of five consumers plan to use their mobile devices to shop this year, it’s clear that mobile marketing is becoming increasingly important. Half of the CMOs surveyed say they have included mobile in their marketing strategy, up 39 percent from 2011, but still showing that many retailers are playing catch up with the platform’s exponential growth.”  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20121203006027&div=-1245645151

 

Happening Wednesday 12/5:  Lowe’s Analyst & Investor Conference Call at 10:00 am EST.  https://phx.corporate-ir.net/phoenix.zhtml?c=95223&p=irol-eventDetails&EventId=4857135

 

Happening Thursday 12/6:  Apple’s Tim Cook Interviewed By NBC’s Williams (on Rock Center).  https://www.macobserver.com/tmo/article/apples-tim-cook-interviewed-by-nbcs-williams-airs-thursday

 

 

Eye-on-Retail Tipsheet 12/3/12: Walmart alleged patent infringement, Web “up & down” pricing, Walgreens opens store #8K

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“Retail Frenzy: Prices on the Web Change Hourly” by Stephanie Clifford in The New York Times.  “Ms. Schulz said sophisticated retailers set algorithms to change prices in response to competitors. “Retailers pipe a bunch of information in electronically, like internal information — cost, availability of inventory, sales goals,” along with competitors’ prices, she said.  The software also lets retailers establish rules on the pricing of certain products: always price Furbys 5 percent below Kmart, for example, or make sure some goods are priced at an average of Amazon’s and Walmart’s prices. Generally, pricing managers also manually adjust prices.”  https://www.nytimes.com/2012/12/01/business/online-retailers-rush-to-adjust-prices-in-real-time.html?_r=0 

 

“Home Depot turns to cat to build a brand” by Arielle Kass in the The Atlanta-Journal Constitution.  “We need to inject a little humor into the brand in the social space,” said Trish Mueller, Home Depot’s senior vice president and chief marketing officer. “There’s a lot of engagement with cats.”  If Richard is successful this holiday season, he’ll likely return for the spring, Home Depot’s busiest time of year, Mueller said.”  https://www.ajc.com/news/business/home-depot-turns-to-cat-to-build-a-brand/nTKWG/

 

Frank Blake, Home Depot CEO and Chairman, Arrives at White House for Meeting with Obama (Pictures).  https://www.zimbio.com/pictures/oH8cIRCqO6m/Business+Leaders+Meet+President+Obama+White/EbhSkrMLGnG/Frank+Blake

 

“Google Takes on Amazon, Buys Parcel Pickup Company” by Chris Taylor at Mashable (Video and Text).  “Indeed, BufferBox has one major advantage over its Amazon counterpart — you can pick up any package in its lockers, including UPS and Fedex. Part of the YCombinator startup class of 2012, the company is currently running a trial service in Canada.”  https://mashable.com/2012/11/30/google-buys-bufferbox/

 

“Wal-Mart’s Neighborhood Markets Pose Threat to Dollar Stores” by Ronald Thomas in Minyanville.  “As a retailing analyst, I know that consumers have historically reacted to pricing differentials above 5% when choosing among the same sorts of stores. As the differential approaches around 8% however, it can cause some really important market share shifts. Indeed, we have seen Kroger gain significant market share from other chains such as Safeway and Supervalu, with prices that I believe have averaged about 6-8% below traditional chains. As an aside, it seems very possible that Supervalu may see bankruptcy based on its years of being priced about 8% above most of its competition.”  https://www.minyanville.com/sectors/consumer/articles/wmt-walmart-Walmart-Express-dollar-stores/11/30/2012/id/46223

 

“Supervalu’s Fundamentals Continue to Deteriorate” by Michael Keara at Morningstar.  “Same-store sales and profit margins at Supervalu’s core supermarkets are in a free-fall and are also declining at the company’s hard-discount Save-A-Lot format. We don’t see fundamentals improving at either segment anytime soon, given that Wal-Mart is accelerating the rollout of its small-format Neighborhood Market stores, a major competitive threat to both segments. Moreover, Target now sells groceries at nearly all of its units, and all the dollar stores we cover are expanding square footage roughly around 7%, while increasingly using food as a loss-leader category to drive customer traffic.”  https://news.morningstar.com/articlenet/article.aspx?id=576253

 

Score one for the little guy…..“Family Business Took on Walmart Over Alleged Patent Infringement”  by Patrick Healy at News4 Southern California (Video).  The Rosenes and Bartoli acknowledge they had previously approached Walmart about bundling a Solar Sun Ring with a small children’s play pool, but no agreement was reached.  Walmart expressed interest in selling the Ring as a stand-alone product, according to the family. But they said they declined out of concern that would gut sales through their original retail network of small pool supply stores.  The family contends that is in fact what happened when the Solar Pad came on the market.”  https://www.nbclosangeles.com/news/local/Family-Business-Took-on-Walmart-Over-Alleged-Patent-Infringement-181701451.html

 

“Sears CEO checking on retailer’s comeback (in Canada)” by Murray McNeil in Winnipeg Free Press.  “The retail landscape is about to become even more competitive when Walmart’s biggest competitor south of the border, Target Corp., begins opening its new Canadian stores in March and April next year.  McDonald acknowledged Target’s arrival is going to turn up the heat on Sears. But he insisted the changes now underway would have happened even if Target wasn’t entering the picture.  He said the changes are already having a positive impact on the company’s bottom line. Although it’s still bleeding red, it was able to cut its net loss in half in the third quarter this year.  https://www.winnipegfreepress.com/business/sears-ceo-checking-on-retailers-comeback-181652701.html

 

“PetSmart: A Stealth Housing Stock?” by Justin Menza at CNBC.  “”There’s a high correlation to housing and pet acquisition,” PetSmart CEO Robert Moran told CNBC this week. In addition to spending more money at Lowe’s and Home Depot , people tend to get a cat or dog after buying a new home.  “Right now about 62 percent of households, which equates to 73 million households, have pets. We believe we’re incredibly well positioned if there’s any type of housing recovery to take advantage of this.”  https://pub.cnbc.com/id/50012993

 

Walgreen’s Opens Store Number 8,000.  “We are thrilled to locate our milestone 8,000th store and latest flagship store at such a famous intersection as we bring a format unlike any traditional drugstore to the Hollywood community,” said Joe Magnacca, Walgreens president of daily living products and solutions. “Walgreens aims to be America’s first choice for health and daily living, and we look forward to providing an exceptional experience for our customers as we help them get, stay and live well.”  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20121130005231&div=-1245645151

 

 

 

 

 

Eye-on-Retail Tipsheet 11/30/12: Amazon’s Bezos speaks, Target gears up in Canada, Kroger Q3 Sales Up

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“Amazon CEO Bezos: AWS is lean manufacturing, Kindle Fire for IT” by Larry Dignan for Between the Lines.  “Bezosisms”:

Innovation isn’t always fun. “You also have to have a willingness to fail and be misunderstood for a while,” Bezos said. “If you never want to be criticized, for heaven’s sake, don’t do anything that’s new.”

A 10,000-year clock.  Bezos wants a 10,000-year clock developed to symbolize long-term thinking. It should be carved in the side of a mountain and have five anniversary chambers, Bezos said. The fifth one goes off at the 10,000-year mark.

Advice to entrepreneurs.  Never ride the hot thing, Bezos said. “You have to wait for the wave and make sure it’s something you’re passionate about,” he said. “Missionaries create better products, and I’d take a missionary over a mercenary any day.”

https://www.zdnet.com/amazon-ceo-bezos-aws-is-lean-manufacturing-kindle-fire-for-it-7000008115/

“Kroger posts higher 3rd-quarter profit, raises forecast” at Reuters.  “”We still believe that over time, more conventional retailers like Kroger, Safeway and Supervalu will lose share of food sales” to retailers ranging from big-box discounters to dollar stores, J.P. Morgan analyst Ken Goldman said in a client note.”  https://www.reuters.com/article/2012/11/29/us-kroger-results-idUSBRE8AS0PS20121129 

“Dollar stores spruce up image, add name brands, but value is less clear cut” at Associated Press via Washington Post.  “Since the start of the downturn, major chains such as Dollar General Corp. and Family Dollar Stores Inc. have accelerated their growth by transforming stores with wider aisles, better lighting and more name brands. The result is that they’re shedding their image as depots for misfit merchandise and pulling in a wider range of shoppers.”  https://www.washingtonpost.com/business/dollar-stores-spruce-up-image-add-name-brands-but-value-is-less-clear-cut/2012/11/29/f77cfb44-3a4b-11e2-9258-ac7c78d5c680_story.html

“Amazon More Popular Than Walmart Among Wealthier Americans” by Jack Neff in Advertising Age.  “What separates Walmart America from Amazon America? Apparently, a household income of $75,000.  Walmart may still be shopped by more Americans than any other retailer, but it’s lost the top spot among households with incomes of $75,000 or more to Amazon and even has slipped behind Target among that group, according to a new survey by Shullman Research Center.”  https://adage.com/article/news/amazon-popular-walmart-wealthier-shoppers/238532/

“Joe Biden’s Costco Adventure ” at The Washington Post (Pictures).  https://www.washingtonpost.com/politics/joe-biden-shops-at-costco/2012/11/29/c5b629e8-3a49-11e2-a263-f0ebffed2f15_gallery.html

“Target Launches Cross-Country Marketing Initiative in Canada” by Christa Meland in Twin Cities Business.  “Target Corporation’s first Canada stores aren’t slated to open until March, but the retailer has already launched a cross-country marketing initiative to gear up for its debut.  Minneapolis-based Target on Tuesday announced plans to launch a road tour across Canada. A Target-themed caravan will make stops in close to two-dozen cities across the country, and the stops coincide with various events that are open to the public. They include performances by Canadian artists, musicians, children’s performers, and comedians.”  https://tcbmag.com/News/Recent-News/2012/November/Target-Launches-Cross-Country-Marketing-Initiative

Home Depot press release — “Tech the Halls:  It’s Christmas Time at The Home Depot.” (with Video).  Editor Warning:  Jingle from first video may be stuck in your head the rest of the day…https://www.multivu.com/mnr/59255-home-depot-tech-the-halls-its-christmas-time-at-the-home-depot 

“What It Looks Like Inside Amazon” at Reddit (Pictures).  https://imgur.com/a/q1WIO

“Apple Store And Costco Are Among Consumer Reports’ Highest-rated Cell-phone Retailers” in Sacramento Bee.  “Costco received high marks in the Consumer Reports survey for service and pricing on the cell phones it sells at special kiosks within its warehouse stores; Walmart matched Costco in offering pleasing prices. Best Buy received the highest score of any retailer for its selection of smart phones, which includes everything from high-profile smart phones to simple prepaid phones from a host of carriers.”  https://www.sacbee.com/2012/11/29/5017910/apple-store-and-costco-are-among.html

Feel Good Story of the Day Featuring Home Depot’s Team Depot in Huntsville, AL…“Disabled veteran gets home makeover (courtesy of Home Depot’s Team Depot)” by Lauren Morrison at 48 News — Huntsville, AL (Video and Text). “Between new appliances, wood flooring, new paint, and fixing up the siding on the house, the total project will run about $3,500, but Haynie said that’s nothing compared to Walls’ service and sacrifice for our country.  “Even though it’s large to Ricky, this is just something small the Home Depot can say thank you for everything he has done for our country,” said Haynie.”  https://www.waff.com/story/20219243/disabled-veteran-gets-home-makeover

“Naughty Or Nice? Consumer Holiday Shopping Trends Revealed in 2.6+ Million Social Conversations.”  Most buzzed about in-store destinations:

Of 84,966 mentions naming shopping destinations:

  • Consumers point to Walmart as their top in-store shopping destination (24%), followed by Target (21%).
  • Best Buy comes in third (14%). Macy’s follows closely in fourth (12%).

 

Eye-on-Retail Tipsheet 11/29/12

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Target November Comp Sales Decreased 1%.  “Target Corporation today reported that its net retail sales for the four weeks ended November 24, 2012 were $6,183 million, a decrease of 0.1 percent from $6,191 million for the four weeks ended November 26, 2011. On this same basis, November comparable-store sales decreased 1.0 percent.”  https://investors.target.com/phoenix.zhtml?c=65828&p=irol-newsArticle&ID=1762842&highlight= 

“Amazon, Wal-Mart Pull Ahead In Cyber Monday Traffic” by Amy Reeves in Investor’s Business Daily.  “Experian said in a blog post that visits to Amazon’s website increased 36% over last year’s Cyber Monday, to nearly 35 million. It was the top e-tail site by visitor count. No. 2 Wal-Mart’s visits rose 21% to 18.6 million, while Best Buy came in third at 9.4 million, up 10% from last year.”  https://news.investors.com/technology/112812-634910-amazon-wal-mart-best-buy-lead-cyber-monday-traffic.htm

“Wal-Mart exec invites suppliers to partner in digital revolution” by Kim Souza in The City .  “(Stephen Quinn) said Wal-Mart’s huge scale, often seen as sluggish moving forward, would not be left in the dust. Quinn challenged dozens of suppliers to get onboard with the retail giant as they work to integrate multiple retail channels and provide genuine customer satisfaction.  “Take the Scotts lawn business. I can see Wal-Mart partnering with them on a YouTube commercial, as an example,” Quinn said. “Think of Wal-Mart as an experience platform, that you can work with for retail development kit. Seek us out proactively and increase score card performance.” https://thecitywire.com/node/25296#.ULdykofAfzk  

“With Target on the way, Canadian Tire gets busy” by Mark Reilly in St. Paul Business Journal.  “The Toronto-based company, which despite the name is a general merchandise retailer in the vein of Minneapolis-based Target, is shaking up its executive ranks to cut costs and streamline its management structure, The Wall Street Journal reports. Its senior vice president of technology, executive vice president of corporate development and “a small number” of other VP-level execs, are out.”  https://www.bizjournals.com/twincities/morning_roundup/2012/11/with-target-on-the-way-canadian-tire.html

Walgreens Takes Its Fresh Food Offerings on the Road for Mobile Tasting Tour.  ” Walgreens is embarking on a mobile tasting tour providing samples of its innovative fresh food and refreshments to Los Angelenos where they work, live and play. The Walgreens “Up Market: Fresh” experience will be brought to consumers via a custom-made, 40 foot bus and will visit various Los Angeles locations between now and Dec. 5. The “Up Market: Fresh” bus’ daily location and featured sample menu items are shared via Twitter @upmarketfresh.”  https://news.walgreens.com/article_display.cfm?article_id=5680

“Whole Foods engage consumers on Pinterest with non-food related content” by Ben Rogers in Wave Metrix.  “Whole Foods have successfully built a large community size in comparison to other retailers with over 80K followers. Perhaps surprisingly, our analysis shows that some of the most popular boards are the ones which aren’t related to food or cooking. 42% of engagement comes from boards which relate to topics like culture, beauty or ecology. This shows the importance for marketers to understand the interests of a community beyond the brand itself and offer valuable information which isn’t directly linked to their products.”  https://wave.wavemetrix.com/content/whole-foods-engage-consumers-pinterest-non-food-related-content-01020 

“Costco joins firms issuing special dividend payments this year” by Alana Semuels in LA Times.  “Wal-Mart Stores Inc., Hot Topic Inc. and Dillard’s Inc. are among retailers that have said they would pay their dividends this year rather than next year. Retailers usually end their fiscal years in January, so many don’t usually pay dividends until then.”  https://www.latimes.com/business/la-fi-fiscal-cliff-dividends-20121129,0,4212751.story

“Ballmer:  Microsoft Stores exist to “sell, sell, sell” (and also help)” by John Callaham at Neowin.net.  “Ballmer said, “With 31 stores, we are driving ahead vigorously and we are there to sell, sell, sell! Help, help, help! And through help, sell more!”  https://www.neowin.net/news/ballmer-microsoft-stores-exist-to-sell-sell-sell-and-also-help

 

Eye-on-Retail Tipsheet 11/28/12

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Costco Wholesale Corporation Reports November Sales Results.  Costco Wholesale Corporation today reported net sales of $8.15 billion for the month of November, the four weeks ended November 25, 2012, an increase of nine percent from $7.51 billion during the similar four-week period last year.   https://phx.corporate-ir.net/phoenix.zhtml?c=83830&p=irol-newsArticle&ID=1762306&highlight=

“Walmart comes to India: Can mom and pop stores play with the big boys?” by Mercedes White in Deseret News. “Shopping in India has never been like getting groceries in the United States.  “If we need toiletries, groceries, or even fish, meat or chicken, we just call down to the local kirana,” says Ruksana Hussain, an American from India who returns to her homeland regularly.  Within minutes the groceries are delivered by the shopkeeper, the same shopkeeper who has delivered items to Hassain’s family since she was a girl. Kirana is the Indian version of a corner store and kiranas are where most Indians do their grocery shopping. There are more than 14 million of these stores in India, 96 percent of which are less than 500 square feet.  But the way Indians shop is about to change forever…https://www.deseretnews.com/article/865567634/Walmart-comes-to-India-Can-mom-and-pop-stores-play-with-the-big-boys.html?pg=1

Frank Blake, Chairman and CEO of Home Depot, meets with President Obama today to discuss U.S. fiscal problems.  Chief Executives from others businesses are also represented…but Mr. Blake is the only retail head we see on the attendee list…https://www.chicagotribune.com/business/sns-rt-us-usa-fiscal-obama-businessbre8ar01t-20121127,0,3860765.story

“WE Interviews — Ann-Marie Campbell (Division President at Home Depot)” by Ellen Kinlin in Women Executives.  “Ann-Marie Campbell’s rise up the ranks of Home Depot, from cashier to Divisional President, is the kind of story that instills confidence in the health of the American Dream… Today she is responsible for over 686 stores and a team of 100,000 employees…Campbell’s mentor played an instrumental role in her career trajectory by encouraging her to take a promotion that she believed was out of her reach.“I thought I needed to be perfect. Women often think they have to know everything before they can step into a role. But my mentor told me, ‘You can do this job.’ Campbell continued. “He taught me to understand and own the value of what I brought to the table.  By switching her focus from what she didn’t know, to what she did, Campbell found much more confidence in her abilities.  https://kinlin.com/blog/2012/11/we-interviews-ann-marie-campbell/

Sneak peak pictures of the Target / Neiman Marcus holiday collection…

“Target plans big splash for Neiman Marcus collection” by Thomas Lee in the Star-Tribune (includes several pictures).  (Target CEO Gregg Steinhafel and Neiman Marcus CEO Karen Katz) are showing off some of the merchandise Target and Neiman co-created for the holiday season during a preview for the media last month in New York. Both Target and Neiman have high hopes this partnership will boost sales throughout the holiday season.  As I write this, Target executives are on the way to New York for the collection’s debut fashion show Wednesday night. The retailers, which will also promote the merchandise in a pop up store, will officially launch the collection Saturday.”  https://www.startribune.com/blogs/181004591.html

“Dollar General joins Standard & Poor’s 500 index” at CNBC.  “Dollar General Corp. will replace Cooper Industries PLC to join the S&P 500 after the close of trading on Friday.”  https://www.cnbc.com/id/49971950

“Amazon’s Jeff Bezos Practically Confirmed the Kindle Smartphone” in Nasdaq.  “It is not yet known how long consumers will have to wait. Recent rumors suggest that the company may introduce its first smartphone in the spring. Amazon may also choose to save the announcement for its annual Kindle Fire event, which is likely to take place in late August or early September.  https://community.nasdaq.com/News/2012-11/amazons-jeff-bezos-practically-confirmed-the-kindle-smartphone.aspx?storyid=193536#.ULYYm4fAfzk 

Seventy Percent of Consumers Have Made a Purchase as a Result of Being Connected to a Brand Online.  “The study further found that 37 percent of consumers who build these online social connections with brands also terminate them by un-liking, un-following, etc. “Brands need to be mindful that connections can be both powerful and disruptive to the social experience,” said Tiffany Leslie, director of marketing communications for SocialVibe. “They need to carefully determine the balance between driving loyalty and overwhelming their advocates.” One-third of consumers who disconnected from brands did so because they were receiving too many updates.  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20121127006610&div=-1245645151

“Kroger, Fresh Market Earnings:  Grocers Seeing Green” by Gillian Rich at Investor’s Business Daily.  “Kroger, the nation’s largest pure-play supermarket chain, is slated to report third-quarter results on Thursday. Analysts see a 30% jump in earnings to 43 cents per share — that would be the biggest gain in years. Sales are seen rising 5% to $21.6 billion.”  https://news.investors.com/business/112712-634720-kroger-fresh-market-united-natural-foods-earnings-preview.htm

Eye-on-Retail Tipsheet 11/27/12: Walmart Evolution to E-Commerce; Top Online Shopping Sites

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“Online sales jump on Cyber Monday, eBay shines” by Alistair Barr at Reuters.  “Online sales were up 25.6 percent as of 3:00 pm EST on Monday, compared with the same period a year ago, according to International Business Machines Corp which tracks transaction data from 500 U.S. retail websites. In 2011, Cyber Monday year-over-year growth was 15 percent by 3:00 pm, IBM said.  Strong online sales growth on Thanksgiving Day and “Black Friday” sparked concern that shoppers were just buying earlier, threatening revenue later in the season.”  https://www.reuters.com/article/2012/11/26/net-us-usa-retail-cybermonday-idUSBRE8AM0TL20121126

“Starboard Adds Nardelli and Ex-Staples Exec for Office Depot Fight” in the Wall Street Journal.  “Bob Nardelli, the former chief of companies such as Home Depot and Chrysler, and Joseph Vassalluzzo, a former vice chairman of Staples Inc., are teaming up with Starboard to provide counsel and insight into how Office Depot can improve its operations and strategy, according to the amended 13D filing.”  https://blogs.wsj.com/deals/2012/11/27/starboard-adds-nardelli-and-ex-staples-exec-for-office-depot-fight/

“Walmart’s Evolution From Big Box Giant To E-Commerce Innovator” by Farhad Manjoo in Fast Company.  “Jeremy King was ignoring the largest retailer in the world. For a month, he’d been getting calls from a Walmart recruiter. King was used to being wooed, since he was well known in Silicon Valley as an engineer who built key parts of eBay’s infrastructure. The calls kept coming. Finally, he picked up the phone and let Walmart know exactly what it would take to get him to interview. “I was like, ‘Why don’t you get the CEO on the phone–let him talk to me and then maybe I’ll come in?'” recalls King, who didn’t even know who the CEO of Walmart was. “I was being cocky. The CEO of the world’s largest retailer wasn’t going to meet with me just so I’d do an interview.  The next thing King knew, Walmart arranged for him to join a videoconference with CEO Mike Duke. “It was the strangest thing,” King says. “Mike’s office in Bentonville is the original one that Sam Walton had, complete with 1970s wood paneling. I was looking at this video, thinking, Where is this place?”  https://www.fastcompany.com/3002948/walmarts-evolution-big-box-giant-e-commerce-innovator 

“The bricks-and-mortar albatross” by James Saft in Reuters.  “But underlying the term Black Friday is a business model reality, which, once examined, poses real problems, especially given the impact of the Internet. Physical stores are not simply a combination of assets, labor and merchandise, they are systems, ones with a lot of sunk costs.  Why after all do stores even stay open during slack periods if in fact they only are truly profitable during the holiday rush and other peak periods?   They do so because there are huge upfront costs to setting up a physical retail outlet and once you’ve made those investments in people, facilities and everything else, the economics dictate that you sweat those assets, work them as hard as possible in order to gain as much revenue as you can to recoup fixed costs.”  https://www.reuters.com/article/2012/11/27/us-column-markets-saft-idUSBRE8AQ06F20121127

“So where will people shop today that isn’t Amazon?” by Shara Tibken at CNET (includes chart ranking top online retailers).  “What it has found is that Amazon, of course, dominates Internet retail. About 14 percent of all Internet users interact with Amazon’s site every day, nearly double eBay in the No. 2 position at 8.8 percent. Deepfield included Amazon’s flagship site and its other smaller Web properties, like MyHabit, in the count.  Zappos and Quidsi, also owned by Amazon, are large enough to be broken out separately. Both fall in the top five in Deepfield’s ranking.  The ranking gets more interesting further down the list with names like Shopify and Shopzilla popping up. Shopify, which ranks third with 5.4 percent share, is an e-commerce hosting site that provides a complete Web storefront offering for more.”  https://news.cnet.com/8301-1023_3-57554048-93/so-where-will-people-shop-today-that-isnt-amazon/  

“Amazon and Pinterest Add Business Pages” by Paul Chaney at Practical Ecommerce.  “Amazon has quietly launched what it refers to as Amazon Marketing Services, which is a suite of self-service tools that merchants can use to promote their products.  The suite contains three components: Amazon Pages, Amazon Posts, and Amazon Analytics.”  https://www.practicalecommerce.com/articles/3819-Amazon-and-Pinterest-Add-Business-Pages

Small Business Saturday Spending Exceeded Expectations According to Research from NFIB and American Express.   “According to the second installment of the Small Business Saturday Consumer Insights Survey, released today by the National Federation of Independent Business (NFIB) and American Express, consumer awareness of Small Business Saturday jumped to 67 percent from 34 percent just two weeks ago. Of those aware, nearly half (47%) shopped on Small Business Saturday.  The increased awareness translated into higher spending. Those U.S. consumers who were aware of Small Business Saturday spent a total of $5.5 billion with independent merchants. Pre-holiday surveys estimated that U.S. consumers would spend $5.3 billion.”  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20121126006330&div=-1245645151     

Dollar General Launches Mobile Applications with Cyber Monday Deals.  “Many of our shoppers use mobile phones for shopping and to make purchasing decisions,” said Todd Vasos, Dollar General’s executive vice president, division president and chief merchandising officer. “We’re making shopping at Dollar General simpler for our customers by making ads and information available at the touch of a button on their mobile phone.”

The new app allows customers to:

  • Find stores with a store locator.
  • View ads, create shopping lists and share via email or text message.
  • Save money with mobile coupons.
  • Use free Quick Response (QR) scanner to access upcoming sales and unlock additional savings.
  • Connect with Dollar General through Facebook, YouTube and Twitter

“In Two Months, Walgreens Gets 28 Million Loyalty Members” by Patricia Odell from Penton Business Media.  “Eight of the top 10 U.S. retailers have loyalty programs, some for more than a decade like Kroger, and others with just a year under their belt like Lowe’s.  The number of U.S. loyalty program memberships has skyrocketed over the last decade from 97 million in 2000 to 2.09 billion in 2010.  Walgreens debuts Balance Rewards long after many competitors have established loyalty programs, but Holyk sees that as a benefit.  “We thought there was a great opportunity for our late mover advantage and that would really come through in how we designed the program, how we’re able to leverage technology, the data and insights, and really put together a best in class program,” he said.   https://www.equities.com/news/headline-story?dt=2012-11-26&val=755184&cat=hcare 

“Canada’s organic food certification system ‘little more than an extortion racket,’ report says” by Adrian Humphrey’s at The National Post.  “The organic certification industry’s “dirty little secret,” they write, is that “organic crops and livestock are not tested in Canada before they are certified, thus making organic certification essentially meaningless.  The organics industry rejects that notion and defends the integrity of its members and the system.”  https://news.nationalpost.com/2012/11/24/canadas-organic-food-certification-system-little-more-than-an-extortion-racket-report-says/

Eye-on-Retail Tipsheet 11/26/12

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What’s happening today:  Shoppers showed up in force both in-store and online this Holiday Weekend; Cyber Monday is upon us and a reminder of Amazon’s online retail strength.

Thanksgiving Day Promotions Win Over Millions of Holiday Shoppers, According to National Retail Federation.  Highlights of report:  

According to the survey, a record 247 million shoppers visited stores and websites over Black Friday weekend, up from 226 million last year.

The average person spent $172.42 online over the weekend, or approximately 40.7 percent of their total weekend spending, up from 37.8 percent last year.

Lured by deep discounts and practical spending habits, eight in 10 (79.6%) shoppers took advantage of retailers’ weekend promotions to buy non-gift items.

The average holiday shopper spent $423 this weekend, up from $398 last year. Total spending reached an estimated $59.1 billion.

More people than ever before also shopped online and in stores on Black Friday, as 89 million shoppers braved the crowds, up from 86 million last year.

More than 35 million Americans visited retailers’ stores and websites Thursday – up from 29 million last year.

28.0 percent of weekend shoppers were at the stores by midnight on Black Friday, compared to 24.4 percent last year.

https://nrf.com/modules.php?name=News&op=viewlive&sp_id=1462

“U.S. holiday shoppers buy early, often, online” from Reuters.  “The more successful retailers, analysts said, were companies such as Wal-Mart Stores Inc and Macy’s Inc which did better at combining physical stores with their online and mobile channels into a seamless shopping experience.  “The more you can make a shopper shop multiple channels, they are at least twice as likely to be a loyal shopper and spend tons of money,” Patty Edwards, chief investment officer at investment firm Trutina Financial, said.”  https://www.reuters.com/article/2012/11/26/uk-usa-retail-idUSLNE8AM00R20121126

…and now onto “Cyber Monday”…

“Cyber Monday likely to be busiest online sales day” by Mae Anderson at the Associated Press.  “It’s estimated that this year’s Cyber Monday will be the biggest online shopping day of the year for the third year in a row: According to research firm comScore, Americans are expected to spend $1.5 billion, up 20 percent from last year on Cyber Monday, as retailers have ramped up their deals to get shoppers to click on their websites.”  https://www.ajc.com/news/ap/top-news/cyber-monday-likely-to-be-busiest-online-sales-day/nTFNL/

“Google Shopping Becomes More Amazon-Like” by Caire Cain Miller in Bits.  “Last week, it introduced wish lists for saving items and sharing them with friends, 360-degree photographs of items, retailer promotions and product reviews.  These updates came after Google made a big change this fall, for the first time including retailers in Google Shopping only if they pay to list their products there. Google said this would make the listings better, because retailers would have an incentive to list up-to-date items.”  https://bits.blogs.nytimes.com/2012/11/23/google-steps-up-competition-with-amazon-in-shopping/

“A Reminder of Amazon’s Retail Strength” at 24/7 Wall St.  “Its lead over the next few retail sites is so large that it is impossible to imagine that Amazon will ever give up its position. Amazon has crushed the bricks-and-mortar world and continues to do so.  For October, unique visits to Amazon sites came to 108.7 million. Wal-Mart Stores Inc. sites were a distant second at 40.7 million. Target Corp. was at the bottom of the list of 50 with 26 million hits, which means no other retailer made the list.”  https://247wallst.com/2012/11/23/a-reminder-of-amazons-retail-strength/

“Walmart.com CEO: We Embrace Showrooming” by Marcus Wohlsen in Wired.  ““You’ve got to go where the customer wants you to go. We live in the age of the customer,” Walmart.com President and CEO Joel Anderson told Wired in an interview this week. “We’re embracing showrooming.”  https://www.wired.com/business/2012/11/walmart-embraces-showrooming

“Wal-Mart India suspends CFO and legal team in corruption probe” by Veena Venugopal in Quartz.  “India is ranked 95th out of 175 countries in the corruption perception index, and it is widely held that running a business without bribing government officials is nearly impossible here.”   https://qz.com/30440/wal-mart-india-suspends-cfo-and-legal-team-in-corruption-probe/

“Come fly with Menards:  Retailer seeks 50 workers to commute weekly to Minot, N.D. store” by Eric Lindquist in the Leader-Telegram.  “So when officials from Menard Inc. observed a severe labor shortage in Minot, N.D., and a plentiful supply of workers in Eau Claire, it was only logical for them to decide to fly workers from their headquarters city in Wisconsin to the community on the edge of North Dakota’s booming oil patch….The workers will be getting an immersion experience in a part of the country that has been equated with the Wild West because of the rapid growth, high wages and supply shortages associated with the boom in the hydraulic fracturing, or fracking, industry.”  https://www.leadertelegram.com/news/front_page/article_72685882-36c6-11e2-a8af-0019bb2963f4.html 

“Sears President: We’re Making Improvements in Customer Experience” on Fox Business (Video).  Sears President Ronald Boire on the outlook for holiday sales and efforts to turn the store around.  https://video.foxbusiness.com/v/1986831091001/sears-president-were-making-improvements-in-customer-experience

Eye-on-Retail Tipsheet 11/23/12

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Happy Black Friday!!

“To Lure Shoppers, Wal-Mart Tries Same-Day Delivery” by Jeff Brady at NPR News (audio and text).  Walmart testing same day delivery in Northern Virginia, Philly, Minneapolis, San Jose and San Francisco during holidays.  https://www.wbur.org/npr/165592058/to-lure-shoppers-wal-mart-tries-same-day-delivery

“Canadian retailers cast ‘Black Friday’ net to keep shoppers at home — and spending” by Vito Pilieci in the Edmonton Journal.  “According to the Retail Council of Canada, 2012 is marking a bit of a watershed moment for Canadian retailers, who have for years watched as busloads of Canadians headed south to the United States to take advantage of post-Thanksgiving sale prices.  This year, the Canadian retailers have simply had enough.”  https://www.edmontonjournal.com/business/Canadian+retailers+cast+Black+Friday+keep+shoppers+home/7590854/story.html 

“Here’s A Holiday-Shopping Chart That Should Terrify Google Investors” by Owen Thomas at Business Insider.  “So far this month, Amazon and eBay’s sales are way up over last year—41.5% and 24.5% respectively. Sales through search and comparison shopping engines are flat or down.  At the same time, sales are strongly shifting off of PCs—an environment where shopping typically starts by typing what you’re looking for into a search engine—and onto tablets and smartphones, where it’s much more common to shop with an app.”  https://www.businessinsider.com/amazon-ebay-google-mobile-shopping-2012-11

60 Percent of U.S. Adults Plan to Shop and Buy Gifts Thanksgiving Weekend, According to CEA Survey.  “CEA’s Pre-Black Friday Survey found that 60 percent of U.S. adults plan to shop Thursday, Thanksgiving Day, through Cyber Monday, with Black Friday expected to be the busiest shopping day of the weekend. Overall, 37 percent of U.S. adults plan to shop this Friday, with one-third (33 percent) going to a retail store and 20 percent shopping online. Saturday and Cyber Monday will be the next most popular shopping days of the weekend, with more than a third (34 percent) of adults planning to shop on Saturday and a quarter (25 percent) will go in-store or online on Monday.”  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20121120006482&div=-1245645151

“The Secret Place Where Apple Hides Your Shopping Bags” by Buster Heine at Cult of Mac (includes picture).  “When you walk into an Apple Store the only thing Apple wants you to think about are Macs, iPhones, iPads and iPods…Next time you’re in a store, take a gander under the tables to see what kind of stuff Apple is hiding.”https://www.cultofmac.com/202132/the-secret-place-where-apple-hides-your-shopping-bags-image/#B0tGlkl41iXdGDTm.99

“Tablets, discounters top U.S. holiday shopping lists” by Jessica Wohl at Reuters.  “Amazon is the top online retailer shoppers plan to visit more than they did last year, with 42 percent picking it, 38 percent choosing Walmart, 23 percent selecting Target and 14 percent picking EBay.  Physical stores remain the top destination, with 26 percent planning to shop primarily at stores and only 14 percent planning to shop primarily online.”  https://www.reuters.com/article/2012/11/20/us-usa-retail-holiday-poll-idUSBRE8AJ1BF20121120 

Wal-Mart exec: ‘Great shopping experience’ despite strike’ at NBC News (with video).  “Wal-Mart’s chief marketing officer Duncan Mac Naughton tells TODAY’s Savannah Guthrie that the retail company is “confident” that customers will not be affected by employees strikes.”  https://video.today.msnbc.msn.com/today/49914793/#49914793

“Target Corp. goes on 50 years of Black Friday’s” by Annie Baxter on Minnesota Public Radio (audio and text).  “They didn’t call it Black Friday at the time, but 50 years ago Target held its first-ever day-after-Thanksgiving sale.  The discount retailer had just begun to operate in May 1962.  By coincidence, Wal-Mart and Kmart also opened their doors that year.”  https://minnesota.publicradio.org/display/web/2012/11/21/business/target-corp-50-years/

“Get Instragram prints from…Walgreens” by Suzanne Choney at NBC News.  “Now, a new app, Printicular, lets you order up Instagram 4×4 prints from Walgreens, and pick them up in an hour. It makes sense for Walgreens: Instagram now has more than 100 million users.”  https://www.nbcnews.com/technology/gadgetbox/get-instagram-prints-walgreens-1C7181506

Kodak Extends Retail Printing Relationship with CVS/pharmacy.  “Eastman Kodak Company today announced that it will extend its relationship with CVS/pharmacy through 2016. CVS/pharmacy operates 7,400 stores across the U.S. and is the largest customer of Kodak’s Retail Systems Solutions (RSS) business.”  https://www.businesswire.com/news/home/20121116006088/en/Kodak-Extends-Retail-Printing-Relationship-CVSpharmacy