Eye-on-Retail Tipsheet 4/18/13: Orch. Supply loses fight vs. H. Depot; IRI’s top CPG brands

 

“Orchard Supply Loses Fight Against Home Depot” at Courthouse News Service.  “A California hardware chain cannot pursue claims that Home Depot’s exclusive supplier deals with power-tool manufacturers illegally restrained trade, a federal judge ruled…Orchard sought to hold Home Depot, Milwaukee Electric Tool and Makita liable for tortious interference as well as violations of the Sherman Act; its California counterpart, the Cartwright Act; and unfair competition law.  U.S. District Judge Jon Tigar in San Francisco dismissed the case Friday for failure to state a claim.”  Read more:  https://www.courthousenews.com/2013/04/17/56792.htm

 

“Target’s ‘Show Don’t Sell’ Content Strategy” by Giselle Abramovich at Digiday.  “Eighteen months ago, Target quietly began “A Bullseye View” as its “online magazine.” The site is meant to tell the stories behind Target’s products, events, partnerships and other happenings at the company. One thing it doesn’t do: pitch products. Instead, the site adopts the old journalism mantra, now co-opted by public relations: show, don’t tell.  “We’ll never write about a specific product, but we will do a post on tips around decorating a home with our newest collection, for example,” said Eric Hausman, senior group manager of PR and social media at Target.”  Read more:  https://www.digiday.com/brands/targets-show-dont-ell-content-strategy/

 

“Walmart Going “Hot & Trendy,” Seeking US Suppliers” by Adeel Qayum at News for Shoppers.  “Walmart is seeking out suppliers to ramp the offerings of products and services that are made in United States.  The retailer is looking for furniture manufacturers, game manufacturers and fashion designers…Among other possibilities, Walmart is considering pet supplies, outdoor categories, textiles, furniture and high end appliances.”  Read more:  https://www.newsforshoppers.com/walmart-going-hot-trendy-seeking-us-suppliers/36713176/

 

“Is ‘Showrooming’ the Future of Retailing?” by Matthew Bishop at The Economist.  “Warby Parker, a super-fashionable online eye glasses retailer, has done an amazing job of selling people a product no one thought was suited to e-commerce. So why has it just opened a fancy bricks-and-mortar flagship store in Mahattan’s SoHo shopping district? Maybe it is because “showrooming” is the future of retailing.”  Read more:  https://www.linkedin.com/today/post/article/20130416154002-211889-is-showrooming-the-future-of-retailing?goback=%2Egde_60855_member_232971817

 

“Google Fiber Goes Next to Provo, Utah” by Arik Hesseldahl at All Things D.  “Google announced the move in a corporate blog post…As part of the deal, Google will buy out a city-owned fiber optic network called iProvo. Described as “troubled” in the press release put out by the Provo municipal government, the network had been on the block for about 18 months. Provo apparently issued about $39 million in bond debt to pay for it, but has never been able to run iProvo in a financially sustainable way.”  Read more:  https://allthingsd.com/20130417/google-fiber-goes-next-to-provo-utah/?mod=atdtweet

 

“Stipple Looks to Give Facebook-Commerce Another Chance” by Cotton Delo at Ad Age.  “A service that lets brands and publishers tag images with digital touch points that show product details, price, related video, and other information if someone clicks on them, Stipple announced at the Ad Age Digital Conference that it will start enabling direct purchases from an image. In other words, someone can buy the Jimmy Choo shoes they see a celebrity wearing in a photo on an entertainment website — or on Facebook and Twitter — without ever leaving the site they’re on.”  Read more:  https://adage.com/article/special-report-digital-conference/stipple-enable-stream-payments-facebook-twitter/240938/

 

“Whole Foods Sending Shoppers to Banana Fields” at Supermarket News.  “To celebrate Earth Month, Whole Foods Market here is giving away two trips for two to the Earth University, a nonprofit institution in Costa Rica that also grows bananas for Whole Foods Market.  Through April 30, shoppers can visit wholefoodsmarket.com/triptoEarth to enter for a chance to win the eight-day trip to Costa Rica.  Read more:  https://supermarketnews.com/marketing/whole-foods-sending-shoppers-banana-fields#ixzz2QmL2keQo

 

“IRI and Costco Wholesale Announce Significant Enhancements to Costco CRX Platform and Launch of Costco CRX Mexico”  “IRI and Costco Wholesale have expanded the program with the launch of Costco CRX Mexico. More than 750 global vendors have participated in the Costco CRX service since it launched in the United States in 2004 and in Canada in 2009.  “The Costco CRX platform has been a tremendous success in the United States and Canada, so we’re thrilled to be able to offer our manufacturers in Mexico the same quality solution and enable a more global view of Costco’s sales,” said Mark Feldman, director of sales, Costco Mexico.”  Read more:  https://www.businesswire.com/news/home/20130416006227/en/IRI-Costco-Wholesale-Announce-Significant-Enhancements-Costco

 

“‘Fulfilled By Sears’ Advances Ecommerce Capabilities, Efficiencies for Growing Merchant Businesses”  “Sears Marketplace is a community for third-party merchants of any size to sell their products and reach millions of relevant customers on Sears.com. Sellers work with Sears to provide SHOP YOUR WAY REWARDS Members and customers with endless aisles of popular products like electronics, lawn and garden equipment, home goods, toys and games, outdoor living items, fitness equipment, jewelry and tools. Sears Marketplace and Sears.com now offer more than 60 million products online.”  Read more:  https://media.prnewswire.com/en/jsp/latest.jsp?resourceid=6674656&access=EH

 

“IRI Announces Most Successful Consumer Packaged Goods Brands of 2012”    “In 2011-2012, nearly 1,900 new CPG brands hit retail shelves across the U.S. multi-outlet geography, which includes traditional grocery, drug and mass market retailers, as well as sales from dollar and club channels, Walmart and military commissaries. Information Resources, Inc. (IRI) announced today that only 11 percent of those launches met the stringent, industry-recognized benchmarks of exceptional first-year sales success required to achieve 2012 New Product Pacesetter status.”  See the rankings:  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20130417006209&div=-1245645151

 

“By 2016, Producing in China Will Be as Costly as U.S.”  by Philip LaBeau at CNBC.  “”The Chinese manufacturing cost advantage has eroded dramatically in the last few years,” said Steve Maurer, AlixPartners Managing Director. “If you go back to 2005, it was pretty common for landed cost from China to be 25-30% less than the cost of manufacturing in the United States. Based on our analysis, two-thirds of that gap has closed.”  Read more:  https://www.cnbc.com/id/100651692

 

“Trulia Survey: 75 Percent of Americans Say It’s Better to Buy a Home Now than Next Year, While Only 32 Percent Agree Now Is a Better Time to Sell”  “This year’s housing season will likely cause aggressive buyers to scramble in order to try to win tough bidding wars and overcome stiff competition–putting them at risk of making real estate mistakes they will regret.”  Read more:  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20130417005436&div=-1245645151

 

“Canadian Tire and Associate Dealers Approve New Contract Through to 2024” at WSJ.  “”Canadian Tire’s Dealers are community leaders and the strongest group of entrepreneurs that I have ever worked with,” said Stephen Wetmore, President and CEO of Canadian Tire Corporation. “I will put our franchise model up against the best retailers in the world every day of the week”  Read more:  https://online.wsj.com/article/PR-CO-20130417-913063.html?mod=googlenews_wsj

 

Thanks for reading…

 

Twitter: @retaileyeretail

Eye-on-Retail Tipsheet 4/17/13: 94% stick with Private Label; Lowe’s new ‘DIY College’

 

“Americans sticking with cheaper store brands, Deloitte survey finds” at Life Inc.  “Deloitte’s annual American Pantry Study out Tuesday shows nearly nine in 10 consumers are substituting private-label, or store, brands for national brands they’ve regularly bought in the past.  The survey, which was conducted in January, also finds 94 percent of Americans indicate they will remain cautious and keep their spending for food, beverage and household goods at its current level despite the stronger economy and climbing stock market.”  Read more:  Read more:  https://lifeinc.today.com/_news/2013/04/16/17778843-americans-sticking-with-cheaper-store-brands-survey-finds?lite

 

“Target’s first-quarter forecast gets a little more gloomy” by Dee Depass at Star Tribune.  “Analysts believe spring clothing on Target’s racks probably proved a hard sell during the quarter, as cold temperatures and late snowfalls clung to pockets of the country.  Target expects that revenue for stores open at least a year will be flat for the quarter.”  Read more:  https://www.startribune.com/business/203316331.html

 

“Lowe’s Canada welcomes “Build-It-Yourself Learning Centres” at WSJ.  “Founded by master contractor & HGTV expert, Jim Caruk, BiY emerged in direct response to overwhelming fan feedback on the absence of specialised home improvement skills training options. Now, for novice and seasoned enthusiasts alike, BiY delivers with unprecedented access to a wide variety of customised, hands-on workshops that ensure projects get done safely, correctly and with confidence…Build-it-Yourself Learning Centres are proudly partnered with sponsors Elmer’s, Kohler, Stanley DeWALT, and Valspar.”  Read more:  https://online.wsj.com/article/PR-CO-20130416-908420.html?mod=googlenews_wsj

 

“Forget Gold, the Gourmet-Cupcake Market Is Crashing” by Maltby & Needleman at WSJ.  “After trading at more than $13 a share in mid-2011, Crumbs has sunk to $1.70. It dropped 34% last Friday, in the wake of Crumbs saying that sales for the full year would be down by 22% from earlier projections, and the stock slipped further this week…Crumbs now has 67 locations, nearly double the number it had less than two years ago. “These are singularly focused concepts,” says Darren Tristano, executive vice president at Technomic Inc.”  Red more:  https://online.wsj.com/article/SB10001424127887324345804578425291917117814.html?mod=outsidein&utm_source=twitterfeed&utm_medium=twitter

 

“Target’s Canadian foray risky, unlikely to meet targets: UBS” by Keith and Verma at The Globe & Mail.  “Target Corp.’s expansion in Canada is risky, given how little time the retailer will have to test its format in this country, warns UBS Securities analyst Jason DeRise…Target’s 2017 goal requires higher sales per square foot and 200 basis points more EBITDA margin versus its current U.S. stores. Mr. DeRise sees a “low probability” of Target achieving this.”  Read more:  https://www.theglobeandmail.com/globe-investor/inside-the-market/targets-canadian-foray-risky-unlikely-to-meet-targets-ubs/article11256362/

 

“The risks of the Google Glass dork factor” by Therese Poletti at MarketWatch.  “Last week, along with Google’s venture capital arm, Kleiner Perkins Caufield & Byers and Andreessen Horowitz created an investment vehicle called the Glass Collective. The goal is to invest in developers and startups with ideas for software, hardware, apps and accessories that will create an ecosystem for Google Glass, and discover all the things that can be done with the sci-fi looking glasses…The view that the glasses may appear to some as a geeky fashion statement means that they may only initially appeal to tech nerds, who tend to be the early adopters of new gadgets. Whether or not that could hamper eventual widespread adoption is a big question.”  Read more:  https://www.marketwatch.com/story/google-glass-has-interest-hype-and-risk-2013-04-16?link=sfmw

 

“Is Retail Therapy for Real? 5 Ways Shopping Is Actually Good for You” by Kit Yarrow at Time.  “Shopping can be a rich source of mental preparation. As people shop, they’re naturally visualizing how they’ll use the products being considered, and in doing so they’re also visualizing their new life. And as many great athletes will attest, visualization is a performance booster and an anxiety reducer.”  Read more:  https://business.time.com/2013/04/16/is-retail-therapy-for-real-5-ways-shopping-is-actually-good-for-you/#ixzz2QiczPaIx

 

“Is Walmart Signaling the End of China’s Global Dominance?” by Eric Schaal at Wall St. Cheat Sheet.  “Walmart will spend $50 billion in the coming decade in an attempt to tap into an American supplier market where fewer disruptions in production occur and energy prices remain low. The company’s willingness to look within suggests the shipping and related costs are weighing on Walmart’s profit margin…As Duncan Mac Naughton, the company’s chief merchandising and marketing officer, told Time recently, “When we buy overseas, we may buy more than we need to fill the container.”  Read more:  https://wallstcheatsheet.com/stocks/is-walmart-signaling-the-end-of-chinas-global-dominance.html/

 

“Tesco quits US as profits fall for first time in 20 years” by Reuters via The Economic Times.  “Tesco, Britain’s biggest retailer, will exit its loss-making business in the United States, taking a $1.5 billion writeoff that caused its annual profit to fall for the first time in 20 years.”  Read more:  https://economictimes.indiatimes.com/news/international-business/tesco-quits-us-as-profits-fall-for-first-time-in-20-years/articleshow/19593819.cms

 

“In Survey, 17% Said They Would Buy Life Insurance At Wal-Mart, Costco” by Matthew Sturdevant at The Hartford Courant.  “”In light of the novelty of the concept and that few people have actually shopped for life insurance through a retail outlet, there is likely to be considerable confusion in the eyes of the consumer as to what such a purchasing experience might entail,” Silverhart said in a prepared statement. “For carriers seeking a niche market, retail ventures could be a worthy approach.”  Read more:  https://www.courant.com/business/connecticut-insurance/hc-life-insurance-walmart-20130416,0,5031182.story

 

Thanks for reading…

 

Twitter:  @retaileyeretail

 

Eye-on-Retail Tipsheet 4/15/13: Lowe’s must “Man Up”; Google: Entire World Online by 2020

“Game on: Why Walmart is ranking suppliers on sustainability” by Mark Gunther at Green Biz.  “So Walmart is asking lots of questions of its suppliers. Among them: How can wheat be grown with less water and fertilizer? How can chemicals of concern be removed from toys? What mining practices were used to extract copper, gold and silver for computers or jewelry? What percentage of your televisions sold last year were Energy Star certified? Do the grapes in a bottle of wine come from a farm with a biodiversity management plan? How much water was needed to produce those polyester pants?  If this sounds like a massive and fiendishly complicated undertaking, well, it is. It has been in the works since 2009, when Walmart unveiled The Sustainability Consortium, a nonprofit coalition led by the University of Arkansas and Arizona State University.  Read more:  https://www.greenbiz.com/blog/2013/04/15/game-why-walmart-ranking-suppliers-sustainability

 

“If Lowe’s Wants to Get Serious About Home Depot, It’ll Have to Man Up” by Pam Goodfellow at Forbes.  “So what’s wrong with Lowe’s?  At first glance, the big box seems to be holding its own, having climbed in customer preference share over the past few years, as Home Depot has remained relatively stagnant. Upon closer inspection, though, it’s apparent that Lowe’s most loyal customers are consistently dominated by females, while Home Depot maintains a more even mix of shoppers. This is significant because men, on average, tend to spend upwards of 35% more per month on home improvement supplies than females. In other words, two male shoppers are worth about three female shoppers”  Read more:  https://www.forbes.com/sites/prospernow/2013/04/15/if-lowes-wants-to-get-serious-about-home-depot-itll-have-to-man-up/

 

“Walmart Announces New Commitments To Dramatically Increase Energy Efficiency And Renewables”  “Walmart’s six-fold increase in renewable energy projects is expected to be equal to eliminating the need for roughly two U.S. fossil fuel power plants. Based on external estimates of projected energy costs and other factors, the two new commitments are anticipated to generate more than $1 billion annually in energy savings once fully implemented.”  Read more:  https://media.prnewswire.com/en/jsp/latest.jsp?resourceid=6659016&access=EH

 

“Amazon Launches New Health Store” at Fox Business.  “Amazon billed its “50+ Active and Healthy Living Store”–featuring nutrition, wellness, exercise and fitness, medical, personal care, beauty and entertainment items–as a place where customers above the age of 50 can “easily discover hundreds of thousands of items that promote active and healthy living.”  The new site can be found at www.amazon.com/50activeliving. Items for sale include vitamins and supplements, nutritional drinks and bars, activity monitors, videos on active living, exercise equipment, athletic apparel, diabetes management items, and blood pressure monitors.”  Read more: https://www.foxbusiness.com/news/2013/04/15/amazon-launches-new-health-store/#ixzz2Qcf9y7PH

 

Online retail sales rise 16% y-o-y to March (in UK) by Ava Szajna at My Retail Media.  “Growth in sales from mobile devices including smartphones and tablets managed to pull back up to the impressive rate of growth seen in 2012, with sales up 243 per cent year-on-year.” Read more:  https://www.myretailmedia.com/blog/8647/online_retail_sales_rise_16_y-o-y_to_march.php

 

“Google boss: Entire world will be online by 2020” by Doug Gross at CNN.  “Everybody in the world will be on the Internet within seven years. That’s what Google Executive Chairman Eric Schmidt said this weekend in public comments that inspired everything from excitement to incredulity.  “For every person online, there are two who are not,” Schmidt wrote Saturday on his Google+ account. “By the end of the decade, everyone on Earth will be connected.”  He followed up with a related thought on Sunday.  “Think about how great the internet is with 2B users. Now think about how amazing it will be when 5B come online in a decade.”  Read more:  https://www.cnn.com/2013/04/15/tech/web/eric-schmidt-internet/

 

“Teens Abandoning Social Networks, Study Says” by John Hermann at Buzz Feed.  “Facebook is the “most important” social media site for about 10% fewer teenagers than it was a year ago, according to a new PiperJaffray survey of over 5,000 teenagers. The teens surveyed are less interested in Twitter, YouTube, Google+, Flickr, and Tumblr too. Of the major sites included in the survey, only Pinterest has grown.  Read more:  https://www.buzzfeed.com/jwherrman/are-teens-abandoning-social-networks

 

“Facebook Seeks 7-Figure Price Tag for Summer Debut of Video Ads” by Cotton Delo at Ad Age.  “Facebook is hoping that its hotly anticipated video-ad units can be a more-than-$4-million daily business out of the gate — if its asking price is met.  The social network still hasn’t finalized the format of the video ads, but it’s been shopping the product around to agencies, looking to lock down commitments for the first available slots in June or July, according to three executives briefed on the product.”  Read more:  https://adage.com/article/digital/facebook-seeks-1-million-price-tag-video-ads/240901/

 

“Majority of Americans See Organic Label as an Excuse to Charge More” from The Harris Poll.  “Concern for the current state, and future, of the environment is on the rise in 2013 (38 percent vs. 31 percent in 2012), just as economic indicators point to all time stock market highs and a solid housing market recovery. However, as Americans start to feel better about reaching into their pockets, they still may not be ready to dish out the extra green on organic items. Turns out that more than half (59%) agree that labeling food or other products as organic is just an excuse to charge more.”  Read more:  https://media.prnewswire.com/en/jsp/latest.jsp?resourceid=6655836&access=EH

 

“Start Your Mowers: Lowe’s Lawn Evangelism” by Sarah Mahoney at Marketing Daily.  “Despite a chilly start to the season that has pressured retailers, Lowe’s, the Home Depot and Ace Hardware are all upping the spring-sprucer-upper ante.  Lowe’s is spreading its promotions across the digital landscape, reminding consumers that nothing boosts curb appeal like green grass and bright flowers.”  Read more: https://www.mediapost.com/publications/article/197958/start-your-mowers-lowes-lawn-evangelism.html#ixzz2QclFMJDi

 

Thanks for reading…

 

Twitter: @retaileyeretail

 

 

Eye-on-Retail Tipsheet 4/15/13: Sam’s CEO on CBS; New Lowe’s DC in GA

 

“Wal-Mart offering classes – for college credit”  by Christopher Connell at CNN Money.  “Arianna Suarez’s first job after emigrating from Cuba as a teenager was as a cashier at a Walmart in Hialeah, Fla. Thanks in part to college-level classes that Walmart offers online, she has risen through the ranks to store manager and is now on her way toward earning a college degree.  From ethics to inventory management, the classes covered the skills Suarez needs to help run a round-the-clock, multi-million dollar retail operation with scores of employees. Even better, she has earned dozens of credits that she can put toward a bachelor’s degree.”  Read more:  https://money.cnn.com/2013/04/15/pf/college/corporate-classes/

 

“Costco and Tesco reluctantly bowing to South Korea demands” at Reuters.  “Tesco finally managed to open a near-3,000 sq meter super store in South Korea, its largest market outside Britain, after a seven-month delay by agreeing not to stock 15 items including radishes, mangoes and some cuts of local beef.  Big-box retailers in South Korea such as Tesco and Costco Wholesale Corp are reluctantly bowing to government demands aimed at protecting local merchants — including plans to fine the super stores if they set up without the consent of nearby local merchants.”  Read more:  https://www.reuters.com/article/2013/04/14/us-korea-tesco-idUSBRE93D0C320130414

 

“Lowe’s opens with tour of distribution center” by Doug Walker at Rome News Tribune (Pictures and Text).  “The 1.5 million-square-foot center at Ga. 140 and Ga. 53 encompasses the equivalent of 31 football fields under one roof and cost approximately $125 million.”  Read more: https://romenews-tribune.com/view/full_story/22230518/article-Lowe%E2%80%99s-opens-with-tour-of-distribution-center–?instance=home_news_lead_story

 

“Food startup gets shelf space at Meijer and Kroger” by Pete Daly at GRBJ.  “The mission of Simply Eight, said Pang, is to challenge the norm.  “I said to myself, why can’t I start a company to challenge that industry? For every food that you guys make, we’ll look it up” and try to find a way to make it simpler.  The ingredients in Simply Eight foods are based on those that people typically have in their kitchens — the way food was made 50 years ago, he said.”  Read more:  https://www.grbj.com/articles/76592-food-startup-gets-shelf-space-at-meijer-and-kroger

 

“Google agrees to change search results” by Claire Cain Miller at NY Times via CNBC.  “Google has for the first time agreed to legally binding changes to its search results after an antitrust investigation by European regulators into whether it abuses its dominance of online search…Google will not have to change the algorithm that produces its search results, the people said. Under the proposal, Google agrees to clearly label search results from its own properties, like Google Plus Local or Google News, and in some cases to show links from rival search engines.”  Read more:  https://www.cnbc.com/id/100640630

 

“HD Supply, Inc. Announces Fiscal 2012 Fourth-Quarter and Full-Year Results”  “HD Supply, Inc. today reported net sales for the fourth quarter of fiscal 2012 of $2.0 billion, an increase of $342 million, or 20.7 percent, as compared to the fourth quarter of fiscal 2011.”  Read more:  https://www.businesswire.com/news/home/20130412005378/en/HD-Supply-Announces-Fiscal-2012-Fourth-Quarter-Full-Year

 

“‘Chinese Google’ Opens Artificial-Intelligence Lab in Silicon Valley” by Daniella Hernandez at Wired.  “In late January, word arrived that the Chinese search giant was setting up a research lab dedicated to “deep learning” — an emerging computer science field that seeks to mimic the human brain with hardware and software — and as it turns out, this lab includes an operation here in Silicon Valley, not far from Apple headquarters, in addition to a facility back in China. The company just hired its first researcher in Cupertino, with plans to bring in several more by the end of the year.”  Read more:  https://www.wired.com/wiredenterprise/2013/04/baidu-research-lab/

 

“Four labels vying to create Target line” at AP.  “Four Toronto-based womenswear labels are in the running to create a line for Target stores north of the border.  The Toronto Fashion Incubator has announced the four finalists for the TFI New Labels fashion design competition.  This year, TFI has partnered with Target for the annual contest, a showcase for a select group of up-and-coming Canadian designers.”  Read more:  https://thechronicleherald.ca/artslife/1123102-four-labels-vying-to-create-target-line

 

“Sam’s Club CEO Rosalind Brewer speaks to CBS This Morning”  “Sam’s Club CEO on allure of bulk buying”  See video at:  https://www.youtube.com/watch?v=Zg5o-iDbEpk

 

“Google Fiber — We’re not (just) in Kansas anymore” at The Economist.  “But sweeping aside America’s leading broadband and cable-TV suppliers is probably not what Google has in mind. More likely, it wants to spur them into speeding up their own services. The goad is working: on the same day as Google said it was coming to Austin, AT&T declared that it too planned to bring gigabit-per-second broadband to the city. “Users who have faster connections do more,” said Kevin Lo, general manager of Google Fiber, who also welcomed AT&T’s announcement. The more they do online, using Google’s search engine, watching videos on YouTube and so forth, the better for Google.”  Read more:  https://www.economist.com/news/business/21576103-search-giant-chooses-second-city-its-fast-broadband-service-were-not-just-kansas

 

Thanks for reading…

 

Follow @retaileyeretail

 

Eye-on-Retail 4/12/13: H.Depot dimisses Green Depot; Wmart’s “Print Plus” program; HD Supply IPO

 

“Target Takes Guests to Prom at Kate Young Collection Preview” by Jim Shi at BizBash.   ” To celebrate the launch of the Kate Young for Target collection, the Minneapolis-based retail giant, along with its longtime event production partner ExtraExtra, created a spring-fling-themed evening that was in alignment with the Hollywood stylist’s lineup of party-occasion dresses. “To toast Kate, we went through a couple of different concepts, but we kept coming back to the idea of a spring fling—“Pretty in Pink”—but in a very chic way,” said Target spokesperson Joshua Thomas.”  Read more: https://www.bizbash.com/target-takes-guests-to-prom-at-kate-young-collection-preview/los-angeles/story/25883#sthash.4WAoIV2E.dpuf  – See more at: https://www.bizbash.com/target-takes-guests-to-prom-at-kate-young-collection-preview/los-angeles/story/25883#sthash.4WAoIV2E.dpuf

 

“HD Supply files for $1 billion IPO” at Reuters.  “Industrial and construction supplies distributor HD Supply Holdings Inc, a former division of Home Depot Inc, filed for a $1 billion initial public offering of its shares to take advantage of the rebounding U.S. housing market…Home Depot continues to hold a 12.4 percent stake in the company, according to HD Supply’s prospectus filed with the Securities and Exchange Commission on Friday.”  Read more:  https://in.reuters.com/article/2013/04/12/us-hdsupply-ipo-idINBRE93B0EF20130412

 

“Rite Aid’s Profit Is First in Six Years” by John Kell at WSJ.  “The No. 3 U.S. drugstore chain by sales, behind Walgreen Co. and CVS Caremark Corp., swung to the black in fiscal 2013 due to two quarters of profitability in the back half of the year after 5 1/2 years of losses. In fourth-quarter results, posted Thursday, profit also was boosted by an inventory-accounting benefit.”  Read more:  https://online.wsj.com/article/SB10001424127887324240804578416353364150198.html

 

“How Walmart Wants Brands to Fuel Its Content Engine” by Jack Neff at Ad Age.  “In particular, earth’s biggest retailer is preparing an enhanced “Print Plus” program pairing digital “liquid content” from brands with its 80-million-circulation weekly circular. Brands will supply such things as recipes and how-to videos customers will see as they pass their smart phones over the print ads…As he detailed how Walmart churns out more content in an April 9 presentation, Clint McClain, senior director-marketing communications platforms at Walmart, said, “I’d be surprised if 15% of the content comes from us,” adding that he expects supplier will furnish “at least 90%.”  Read more:  https://adage.com/article/cmo-strategy/walmart-brands-fuel-content-engine/240803/

 

“With Eco-Friendly Building Supplies, Green Depot Thrives in the Construction Rebound” by Nick Leiber at Businessweek.  ““Sustainability has become a competitive measurement,” says Ron Jarvis, a Home Depot (HD) vice president in charge of environmental innovation. “If you’re the producer of the purple widget that pollutes the most and uses the most energy, your competitor will use that against you, and you’ll be out of business before long.”  Still, Jarvis dismisses niche players such as Green Depot: “If you go into any of the boutique shops or the green shops and look at the products they have and compare them to the Home Depot products, we have the same products, and in most cases a better product, and in almost every case at a better price.”  Read more:  https://www.businessweek.com/articles/2013-04-11/with-eco-friendly-building-supplies-green-depot-thrives-in-the-construction-rebound

 

“Canadian Tire Launches The Canadian Way, the Next Evolution of Its Digital Customer Experience” by Knowlton Thomas at Tech Vibes. “After years of struggle, Canadian Tire is finally making ground in digital innovation.  Recently, the retailing giant inked a deal with Communitech, a startup incubator in Waterloo: there are five Canadian Tire employees at Communitech on a permanent basis…Now the company has launched The Canadian Way, which was made in collaboration with Tribal DDB Toronto and is described as “the next evolution in Canadian Tire’s digital customer experience.” It’s a slick online product catalogue that includes interactive videos, social sharing and commenting, and user-generated content. All this from a company that at one point shut down its own online store just as e-commerce in Canada exploded.”  See the digital catalog here:  https://catalogue.canadiantire.ca/

 

“ShopSmart Finds Target, Walmart Offer Lower Prices, Bigger Savings on Over-The-Counter Drugs than CVS, Walgreens”  “ShopSmart’s secret shoppers compared prices of common name- and store-brand nonprescription medications available at CVS, Walgreens, Target, Walmart and supermarkets and found that Target and Walmart beat the drugstore chains every time. Walmart had the lowest prices on 26 items, the most of any of the retailers.”  Read more:  https://media.prnewswire.com/en/jsp/latest.jsp?resourceid=6638896&access=EH

 

“UMKC: Costco founder among entrepreneur honorees” at St. Louis Post Dispatch.  “The founder of Costco is among the entrepreneurs who will be honored at an awards celebration this fall at the University of Missouri-Kansas City…The dinner is planned for Oct. 21 at the new Henry W. Bloch Executive Hall for Entrepreneurship and Innovation.”  Read more:  https://www.stltoday.com/news/state-and-regional/missouri/umkc-costco-founder-among-entrepreneur-honorees/article_872ce0de-3f24-547e-bdc9-989a4f81b361.html

 

“Nearly One-Third of U.S. Homeowners Feel Motivated to Make Home Renovations Due to Improving Economy, Finds New CouponCabin.com Survey”  “A new CouponCabin.com survey reveals that nearly one-third (32 percent) of U.S. homeowners feel the improving economy is motivating them to make home improvements that they wouldn’t have done during the recession. Overall, more than six-in-ten (64 percent) U.S. homeowners report they are at least somewhat likely to make home renovations or improvements like re-tiling a floor, installing new carpet or re-doing a bathroom in the next 12 months.”  Read more:  https://media.prnewswire.com/en/jsp/latest.jsp?resourceid=6639215&access=EH

 

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Eye-on-Retail Tipsheet 4/11/13: Cold March Chills Sales; Costco Misses

 

“Costco March same-store sales miss expectations” at Reuters.  “Warehouse club chain Costco Wholesale Corp reported a 4 percent rise in March sales at stores open at least a year, missing analysts’ expectations, due to lower fuel prices and a strong dollar, which hurt the value of its sales overseas.”  Read more:  https://www.reuters.com/article/2013/04/11/us-costco-results-idUSBRE93A06F20130411

 

“Retail Sales Broadly Miss Estimates During Cold March” at Reuters via CNBC.  “So far, 63 percent of retailers who reported results fell short of Wall Street’s estimates for sales at stores open at least a year, a key industry metric, according to the Thomson Reuters same-sales index, released Thursday. Excluding Walgreen and Rite Aid, whose results are heavily skewed by prescription drug sales, forecasters were expecting a jump in same-store sales of 2.2 percent, slowing from the blistering pace of 7.1 percent in March of last year.”  Read more:  https://www.cnbc.com/id/100633622

 

“Walmart: Traditional Media Alive and Well” by Carol Angrisani at Supermarket News.  ““You can’t be all-digital,” Tony Rogers, Walmart’s senior vice president of marketing, said yesterday in a session at the Shopper Marketing Summit.  Not everyone is able to, or wants to, be wired 24/7, so traditional media is still a vital marketing component, said Rogers.  At Walmart, for instance, TV and print still do very well, said Rogers.  “You have to blend your media,” he said.”  Read more: https://supermarketnews.com/marketing/walmart-traditional-media-alive-and-well#ixzz2Q9YJe3Zh

 

“Slow Tax Refunds, Weather Woes Hit Family Dollar Stores” at 24/7 Wall Street.  “The company’s CEO said:  “Following a difficult December, we were pleased with our sales results in early January. Unfortunately, the unanticipated delay of the 2012 tax refunds impacted our results at the end of January and the beginning of February. We were happy to see sales trends improve towards the end of the quarter as our customers began to receive their tax refunds. As we move into the second half of fiscal 2013.”  Read more: https://247wallst.com/2013/04/10/slow-tax-refunds-weather-woes-hit-family-dollar-stores/#ixzz2Q9dBYtiH

 

“Wal-Mart executive who called sales “total disaster” has left” at Reuters.  “Jerry Murray, the mid-level Wal-Mart Stores Inc executive who called the chain’s early February sales “a total disaster” in an email made public by Bloomberg, left the world’s largest retailer last week, Wal-Mart confirmed on Wednesday.”  Read more:  https://www.reuters.com/article/2013/04/10/walmart-employee-departure-idUSL2N0CX1QV20130410

 

“Walmart exec: Our biggest mobile opportunity is connecting with in-store customers” by Rimma Kats at Mobile Commerce Daily.  ““There are key ingredients that bring our vision to life,” Ms. Bergh said. “It’s a combination of mobile talent, store operations, store systems, marketing and online services. “Our plan is to create products that people love,” she said. “We want to innovate without reinventing the wheel.“Customers will love and have more loyalty to Walmart overtime thanks to the experiences we’re delivering to them.”  Read more:  https://www.mobilecommercedaily.com/walmart-exec-our-biggest-mobile-opportunity-is-connecting-with-in-store-customers

 

“Target to Celebrate Earth Day with Giveaway of 1.5 Million Reusable Bags”  “In honor of Earth Day, Target will give away 1.5 million reusable bags at stores across the country, as well as sustainable product coupon books that offer over $40 in savings. Of the 1.5 million reusable bags, 250,000 will also contain samples of sustainable products, including method Dish Soap, Annie’s Bunny Grahams, Seventh Generation Laundry Detergent and Burt’s Bees Moisturizing Cream.”  Read more:  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20130410005420&div=-1245645151

 

“Bed Bath & Beyond 4Q Net Jumps In-Line 14%, Outlook Trails Views” by Matt Egan at Fox Business.  “Net sales soared 24.5% to $3.40 billion, also largely matching the Street’s view of $3.39 billion. Same-store sales rose by a more modest 2.5%.  Read more: https://www.foxbusiness.com/industries/2013/04/10/bed-bath-beyond-4q-net-jumps-in-line-14-outlook-trails-views/#ixzz2Q9cWXPH1

 

“Sears Holdings Establishes New Business Unit Focused on Entertainment-Driven Fashion Brands”  “Sears Holdings announces the creation of a new business unit called SHOP YOUR WAY Brands, focused exclusively on the development of entertainment-driven fashion and lifestyle brands. Leading this business unit is Bernt Ullmann and his team from Star Branding, whose partners include Tommy Hilfiger, Andy Hilfiger, and Joe Lamastra.  The business unit will be initially focused on the powerful new collections by Adam Levine and Nicki Minaj”  Read more: https://media.prnewswire.com/en/jsp/latest.jsp?resourceid=6633685&access=EH

 

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Eye-on-Retail Tipsheet 4/10/13: Walmart launches magazine; Target wants to be a penny higher

 

“Walmart Canada launches glossy magazine” by Linda Barnard at The Star.  “We’ll take your flyer, Target, and raise you a glossy Walmart magazine…Produced for Walmart by Rogers Media’s Custom Content division, Walmart Live Better will appear six times a year at Walmart Supercentres in English Canada, as well as through online platforms with regularly updated content. With a press run of 1 million copies per issue, it automatically becomes Canada’s largest-circulation magazine, according to Rogers.”  Read more:  https://www.thestar.com/life/2013/04/08/walmart_canada_launches_glossy_magazine.html

 

“How Walmart Trains Better Leaders” by JP Donlon at Chief Executive.  “In 2009, Walmart U.S. CEO Bill Simon—a former naval aviator—engaged Damian McKinney—a former commando with Britain’s Royal Marines who runs a consulting business helping companies execute their strategy— to assist Walmart in accelerating the preparedness of leaders and to cultivate managers fast enough to meet rising demand. (Simon had met McKinney earlier in both men’s careers when they were colleagues at Diageo.)…Normally a publicity-shy company, Walmart doesn’t volunteer much apart from the fact that, to date, 496 of its executives have gone through the Academy.”  Read more:  https://chiefexecutive.net/how-walmart-trains-better-leaders

 

“Target CEO: ‘We want to be a penny higher than Wal-Mart'” by John Vomhof Jr. at Minneapolis/St.Paul Bus. Journal.  “Speaking at a Economic Club of Minnesota luncheon on Monday, Target CEO Gregg Steinhafel said his company isn’t interested in an all-out “price war.” Rather, its goal is to be within 2 percent of Wal-Mart’s prices.  “We want to be a penny higher than Wal-Mart,” he said. “So, if they have bananas for 48 cents, we want to have bananas for 49 cents. If it’s a $10 item, the difference might be a nickel.”  Read more:  https://www.bizjournals.com/twincities/news/2013/04/08/target-ceo-we-want-to-be-a-penny.html

 

“Apps Emerge as Key Walmart Strategy” by Carol Angrisani at Supermarket News.  “Walmart plans to launch Print Plus, a mobile app that brings its print ads to life, an executive of the chain said during an educational session on day two of the Shopper Marketing Summit.  The app, to be launched this year, allows shoppers to view content — such as recipes and product information — when they scan a Walmart ad with their smart phones.  “We’re working on bringing liquid content off of our print pieces,” Ken Mantel, Walmart’s senior director of marketing, said.”  Read more:  https://supermarketnews.com/marketing/apps-emerge-key-walmart-strategy#ixzz2Q1UyYdVP

 

“eBay’s CEO: Retailers finally are responding to the commerce revolution” by Don Davis at Internet Retailer.  “While Donahoe did not give specific store-based retailers, he said some merchants are experimenting with screens in store windows that let consumers shop at night when the store is closed…In a sign of eBay positioning itself to work closely with retail chains—many of them increasingly fearful of eBay rival Amazon—Donahoe emphasized that, despite eBay’s online roots, he doesn’t believe bricks-and-mortar stores will disappear. “A lot of people really like shopping,” Donahoe said in an interview. “It’s entertainment, a social experience. I don’t believe in the demise of the store.”  Read more:  https://www.internetretailer.com/2013/04/09/ebays-ceo-retailers-respond-commerce-revolution?cid=2013

 

“Ten retailers urged to pull potentially toxic products” by Wendy Koch at USA Today.  “Health and environmental groups will launch a national campaign Thursday to prod 10 major retailers — including Walmart, Target and Costco — to clear store shelves of products containing hazardous chemicals.  Advocates say these companies have done some “retail regulation” but argue more needs to be done and the U.S. government isn’t stepping up. They list 100-plus chemicals used in hundreds, possibly thousands, of products including wrinkle-free clothes, vinyl flooring, shampoos, sofa cushions and food packaging.”  Read more:  https://www.usatoday.com/story/news/nation/2013/04/09/retailers-products-toxic-chemicals/2067113/

 

“Wal-Mart funds supplier training after Bangladesh fire” at Reuters.  “Wal-Mart Stores Inc, the world’s largest retailer, is making its biggest push yet to try to improve conditions at factories that produce its clothing after a fire at a Bangladesh factory last year killed 112 people.  The company also said Tuesday it would donate $1.6 million to help start a new Bangladesh training academy, and outlined its efforts to regain control over the complex and far-flung web of factories that make its products.”  Read more:  https://www.reuters.com/article/2013/04/09/us-walmart-bangladesh-factories-idUSBRE9380LG20130409

 

“PriceSmart: Waiting For A Discount On This ‘Costco Of The Caribbean'” by Alan Brochstein at Seeking Alpha.  “The company opened its first stores in 1995 through licensees and then opened its first operated club in Panama in 1996…Today, PSMT operates 30 clubs in 12 countries and 1 U.S. Territory…After entering Colombia in 2011, PriceSmart is about to open its third unit early this year. It is contemplating its 6th unit in Costa Rica, which could open late in the year. Most recently, it announced that it will be opening its third club in Honduras in early 2014.”  Read more:  https://seekingalpha.com/article/1297641-pricesmart-waiting-for-a-discount-on-this-costco-of-the-caribbean?source=email_rt_mc_related_2

 

“Walmart Takes Its TV Fight Local” by Jack Neff at Ad Age.  “It’s part of a plan that will see Walmart produce an eye-popping 1,500 TV ads in 2013. That’s more than double the 615-plus it ran in all of 2012, which itself was up substantially from a year earlier, when new local ads up 79%, according to Advertising Benchmark Index, which tracks consumer response to most new ads in the U.S.”  Read more:  https://adage.com/article/news/walmart-takes-tv-fight-local/240732/

 

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Eye-on-Retail Tipsheet 4/9/13: Menards opens in St.Louis; Home Depot CEO pay raise

 

“Costco, Macy’s Eye China E-Commerce” by Doug Young at Forbes.  “Their strategy reflects an emerging trend that has big western chains circumventing the traditional retailing route into China, seeking to avoid the big costs and risks that have led to big losses and retreats for names like Best Buy and Home Depot. But the online strategy also carriers its own risks, as China’s e-commerce space is also quite crowded and retailers that go online face an uphill road getting recognized by brand-conscious Chinese consumers.”  Read more:  https://www.forbes.com/sites/dougyoung/2013/04/08/costco-macys-eye-china-e-commerce/ 

 

“Kroger grocery chain to install 225 electric car chargers” at SF Gate.  “The company reported this morning that Kroger, the nation’s largest supermarket chain, will spend $1.5 million installing Ecotality’s Blink charging stations at 125 stores in Los Angeles, Phoenix and San Diego.  Kroger will install 225 stations in all, including 25 DC fast chargers. The grocery chain already has 60 Blink chargers in Oregon and Washington, as well as 14 in Texas.”  Read more:  https://blog.sfgate.com/energy/2013/04/08/kroger-grocery-chain-to-install-200-electric-car-chargers/

 

“J.C. Penney: Firing CEO Johnson Was Probably Easy. His Exit Package Is Tiny” by Abram Brown at Forbes.  “Johnson, who’s been replaced at J.C. Penney by his predecessor, Mike Ullman, will receive just $148,924 in severance, a truly paltry figure compared to the exit packages that many ousted executives leave with. Investors should take solace in that. Johnson was earning $1.5 million in a base salary, and, of course, could’ve earned millions of dollars more in lucrative stock options. If his turnaround strategy had been working.”  Read more:  https://www.forbes.com/sites/abrambrown/2013/04/08/j-c-penney-firing-ceo-johnson-was-probably-easy-his-exit-package-is-tiny/

 

“Region’s (St. Louis) first Menards stores set to open Tuesday” by Kavita Kumar at St. Louis Post-Dispatch.  “The home-improvement landscape around here will get a little more interesting come 6:30 a.m. Tuesday.  That’s when Menards will open the doors of its first crop of stores in the St. Louis region.  The two stores — located at 1179 Central Park in O’Fallon, Ill. and 151 Spencer Road in St. Peters — will be the metro region’s first look at the Wisconsin-based retailer”  Read more:  https://www.stltoday.com/business/columns/consumer-central/region-s-first-menards-stores-set-to-open-tuesday/article_feea2bba-4d4a-5f1d-8c8d-1e3c653c694b.html

 

“Home Depot CEO’s pay rises to $11.1 million” at Atlanta Journal-Constitution.  “His 2012 compensation, up from $10.8 million in 2011, included $3.6 million in salary and bonus, $7.2 million in company stock and stock options, and $291,889 in perks such as personal use of company aircraft.”  Read more:  https://www.ajc.com/news/business/home-depot-ceos-pay-rises-to-111-million/nXGS7/

 

“Amazon’s Bezos invests $5 million in Business Insider” at B to B Online.  “Bezos Expeditions, the personal investment company of Amazon.com CEO Jeff Bezos, has led a $5 million round of financing for business news site Business Insider. Other existing Business Insider investors, including Institutional Venture Partners and RRE Ventures, participated.”  Read more:  https://www.btobonline.com/article/20130408/MANAGEMENT11/304089994/amazons-bezos-invests-5-million-in-business-insider

 

“Best Buy May Be the Next Home Depot” at Forbes.  “Credit Suisse analyst Gary Balter on Monday said in a client note that Best Buy’s strategy is to become the consumer electronics version of Home Depot, which he believes carries a premium customer experience, driving above average profit margins.”  Read more:  https://www.forbes.com/sites/thestreet/2013/04/08/best-buy-may-be-the-next-home-depot/

 

“ALDI Redefines Gourmet with New Premium Brand, ‘Specially Selected'”  “Identified by its sophisticated packaging, the brand features a range of specialty products available periodically throughout the year – from German coffees and gourmet pastas to premium meats and cheeses.  ALDI first launched the Specially Selected line in Europe, where many of the brand’s products have won awards and attracted a devoted following.”  Read more:  https://media.prnewswire.com/en/jsp/latest.jsp?resourceid=6614022&access=EH

 

“Macy’s Salutes “American Icons” This Summer”  “Macy’s today announced American Icons, a cross-country tribute to the beloved traditions, people and landscapes of America. From baseball and drive-in movies to legendary designers and destinations, America’s department store is honoring the popular brands, all-star events, cherished pastimes and meaningful causes that have contributed to our culture.”  Read more:  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20130408006020&div=-1245645151

 

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