Archive for month: July, 2013

 

“Target & Its 15,000 Vine Followers”  For those who haven’t jumped on the bandwagon yet, the idea behind Vine is simple: You create and share six-second videos that play on a continuous loop.  “It offers a constraint that other platforms don’t have,” says Travis. “It’s only six seconds. You can’t shoot something and upload it later. You can’t copy a TV spot and post it. It all needs to happen within the camera phone. That’s a compelling challenge, and we’re excited by the possibilities.”  Read more:  https://abullseyeview.com/target-vine-creativity-6-seconds-at-a-time/

 

“Woolworth’s / Lowe’s Inept Merchandising Strategy in Australia” by Adele Ferguson at Sydney Morning Herald.  “The CEO’s comments about the seasonal curve in relation to Masters joint-venture partner US-based Lowe’s also raised eyebrows. “We didn’t know a lot about the seasonal curve,” she said. “We’ve got a great joint-venture partner in America but when it’s Christmas time over there it’s also winter. Our Christmas time lines up with spring and Father’s Day, so it’s quite a different seasonal curve … we didn’t have the right stock in some instances.”  Read more: https://www.smh.com.au/business/hardwares-a-hard-game-for-woolies-20130718-2q77j.html#ixzz2ZUQzeRzs

 

“Supervalu’s new boss, Sam Duncan, is off to a strong start” by Mike Hughlett at Star Tribune.  “Supervalu’s new CEO, Sam Duncan, has come out of the gate strong, as a cost-cutting offensive sparked first-quarter profits that far exceeded Wall Street’s expectations and drove the company’s stock up almost 17 percent Thursday.  Duncan took over in the wake of a transformational $3.3 billion deal announced in January that essentially halved the size of Eden Prairie-based Supervalu.”  Read more:  https://www.startribune.com/business/215995161.html

 

“E-tailers to Pay Consumers for Product Recommendations” by Lara O’Reilly at Marketing Week.  “More than 5,600 ecommerce companies, including 47 of the IMRG top 50 biggest online retailers in the UK, are set to introduce the white label “Shopa” scheme to their websites in the coming months.   Shopa allows consumers to be paid for making product suggestions via a personalised weblink if people then go on to buy that product – who will also receive a cut of the discount. Retailers can choose the level of incentive, which is typically 8 to 10 per cent of the product price.”  Read more:  https://www.marketingweek.co.uk/news/uks-top-e-tailers-to-offer-cash-for-shares/4007380.article

 

“Same-Day Delivery: The Future of Shipping, or a Bunch of Hot Air?” by Kathryn Vasel at Fox Business News.  “A study from Booz & Company reports same-day delivery might be an attractive option, but it’s still a niche offering with 88% of customers saying they wouldn’t pay more than $10 for same-day shipping.  Shopping habits might also run counter to same-day delivery demands. The Booz report found 60% of online shoppers buy after 5 p.m. ET, creating a short delivery window.”  Read more: https://www.foxbusiness.com/personal-finance/2013/07/18/same-day-delivery-future-shipping-or-bunch-hot-air/#ixzz2ZUP2DSUd

 

“Google’s Product Listing Ads Are Hitting Amazon Hard” by Jacqueline Sahagian at Wall St. Cheat Sheet.  “PLAs are images that pop up at the top of Google’s search bar when a person searches for an item. Options from Amazon do not appear in the PLAs: They are pushed to the side of the search in text-only form, making them much less visible and less likely to get clicked on.  Business and e-commerce sites, including Wal-Mart and eBay are willing to pay Google more for their products to be featured in the search engine giant’s PLAs.”  Read more:  https://wallstcheatsheet.com/stocks/googles-product-listing-ads-are-hitting-amazon-hard.html/?a=viewall

 

“Fitch: Online grocery growth faces headwinds” by Kim Souza at The City Wire.  “It’s one of the lowest penetrated categories. Broadly assuming online grocery sales grow at 10% to 15% annually (which is faster than recent growth rates) compared with estimated 3% annual growth for the total market, online sales would grow to only 2% to 3% of the grocery market in the next decade,” noted Phillip Zahn, senior director at Fitch Ratings.”  Read more:  https://www.thecitywire.com/node/28663#.UekVtI3VDpU

 

“Retailers Brace for Slower Back-to-School Season” by Natalie Zmuda at Ad Age.  “Retailers hoping for another record-breaking back-to-school season will be sorely disappointed, with the National Retail Federation predicting spending will decline by 13%.  The industry group announced today that families with school-aged children will spend an average of $635, down from $689 last year.”  Read more: https://adage.com/article/news/retail-industry-braces-slower-back-school-season/243158/

 

“The Complete Guide to Twitter Lingo” by Amy Mae Eliot at Mashable.  “Sometimes we see a tweet containing an acronym or an abbreviation with which we’re not very familiar.  If you find yourself in the same situation, then take a look through our handy list for a complete glossary of terms you may come across in tweets.  While some abbreviations and acronyms may be common across all social media sites, others are unique to the microblogging platform.”  Read more:  https://mashable.com/2013/07/19/twitter-lingo-guide/

 

Thanks for reading…have a great weekend!

 

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“Costco Secrets – Summer 2013” by Len Rapoport.  “At the new store we noticed Poland Spring Sport Cap water was a dollar less then it is in our Hazlet store. It was $4.59 a case vs. $5.49, we thought it might have been a mistake and later found out it was not. Different Costco stores may sell the same items at different prices. The reason we were told was that the new Costco had a Sam’s Club and BJ store in the area.”  Read more:  https://lenrapoport.hubpages.com/hub/Secret-Price-Codes-At-Costco-Summer-2012-Scores

 

Oldie but Goodie – “Secret Price Codes Will Save You Money At Costco” by Len Rapoport.  “Now some say that I shouldn’t give up my professional secrets and like a magic trick, should never publish it and share it with the world. But I disagree and in these very difficult times, I think it is in everyone’s best interest if we all share our tips and tricks on how to be a smarter shopper.”  Read more:  https://lenrapoport.hubpages.com/hub/Secret-Codes-Will-Save-You-Money-At-Costco

 

“Selling to Sam’s Club may open other doors” by Kim Souza & Michael Tilley at City Wire.  “Using Showcase Events, formerly known as “Road Shows.” was the perfect way Blake Pointer and partner Helen Lampkin got their My Brothers Salsa product into Sam’s Club and later on the shelf at more than 100 Walmart Stores and Neighborhood Markets across Arkansas and Oklahoma.”  Read more:  https://www.thecitywire.com/node/28637#.UeZyQI3VDpU

 

“Home Depot Now #28 Largest Company, Surpassing Walt Disney” at Forbes.  “In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, Home Depot has taken over the #28 spot from Walt Disney according to The Online Investor. Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company’s stock.”  Read more:  https://www.forbes.com/sites/dividendchannel/2013/07/16/home-depot-now-28-largest-company-surpassing-walt-disney/

 

“Loblaw Shifts to Inner City in Battle With Wal-Mart” at Bloomberg.  “Loblaw Cos. $12.4 billion purchase of Shoppers Drug Mart Corp. gives the Canadian grocer an edge over bigger U.S. rivals such as Wal-Mart Stores Inc. by adding downtown stores across the country.  The second-biggest grocery acquisition of the past decade will see Loblaw gain a drugstore chain with more than 1,240 small-format stores, many in inner cities.”  Read more:  https://www.bloomberg.com/news/2013-07-15/loblaw-agrees-to-acquire-shoppers-drug-mart-for-c-12-4-billion.html

 

“Madison Avenue Says It Doesn’t Fear Apple’s Ad-Skipping TV Service” by Jeanine Poggi at Ad Age.  “Madison Avenue isn’t concerned over reports that Apple is talking with TV networks about a service that would help viewers skip commercials.  Apple’s current TV platform. The company is said to be planning a much more ambitious TV service.  Apple’s current TV platform. The company is said to be planning a much more ambitious TV service.  Apple wants to pay networks for the ad revenue they would lose, according to a report by former Wall Street Journal reporter Jessica Lessin. But media buyers say they don’t believe TV networks will go along.”  Read more:  https://adage.com/article/media/advertisers-worried-apple-s-ad-skipping-tv-service/243134/

 

“RadioShack revival? CEO says that’s what he’s after” by Courtney Reagan at CNBC.  “Wall Street analysts do think the new format stores look better, but aren’t sure it’s enough to truly make RadioShack competitive against rivals like Best Buy or Amazon or big-box retailers like Wal-Mart, Target and Costco. Still, investors love a comeback story and some are buying into RadioShack’s plan and the retailer is garnering new attention. The shares are up 48 percent in 2013.”  Read more & see video interview:  https://www.cnbc.com/id/100890113

 

“Google looking into launching its own Internet cable service” by Brian Stelter at NY Times via Seattle Times.  “If Google has its way, you might someday get cable television the same way you get Gmail: through any ordinary Internet connection.  Foreshadowing a new challenge to entrenched cable and satellite providers, Google is one of several technology giants trying to license TV channels for an Internet cable service, according to people with direct knowledge of the company’s efforts.”  Read more:  https://seattletimes.com/html/businesstechnology/2021405584_googleinternetcablexml.html

 

“53% of Americans Mull Starting Up” by Gabrielle Karol at Fox Business.  “New research by Web hosting provider 1&1 Internet, Inc. finds 53% of Americans have considered launching a side business for supplemental income.  The survey of 1,301 working Americans found nearly a quarter of respondents wanted to be their own bosses, while 19% expressed a desire for a better work-life balance. Additionally, 21% say they want to start a business because of their passion for a hobby.  Read more: https://smallbusiness.foxbusiness.com/entrepreneurs/2013/07/16/53-americans-mull-starting-up/#ixzz2ZIlAN3so

 

“Walmart’s impressive soda display for Fighting Illini” by Chris Chase at USA Today.  “This soda box tribute in Champaign has gone viral.”  See the pic:  https://ftw.usatoday.com/2013/07/walmart-illinois-soda-tribute/

 

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“Why Costco Rules in Hearing Aids … and Gummy Bears” by Kyle Stock at Businessweek.  “We followed up with Richard Chavez, Costco’s senior vice president in charge of ancillary businesses, to see just how much hearing-aid revenue the wholesaler was talking about. “A lot,” he says with a laugh. “We’re now one of the largest—if not the largest—hearing-aid distributors in the market, but I really don’t want anyone to know that.”  Turns out, in the past four years, Costco’s hearing-aid sales have grown 26 percent a year on average, according to Chavez, who expects another 19 percent gain this year.”  Read more:  https://www.businessweek.com/articles/2013-07-11/why-costco-rules-in-hearing-aids-dot-as-well-as-gummie-bears#r=most popular

 

“Is Amazon.com The New Wal-Mart?” by Paulo Santos at Seeking Alpha.  “Looking at Wal-Mart’s size, growth, dividends, profitability and investments when it was the same size as Amazon.com today completely debunks the notion that Amazon.com is somehow behaving like the next Wal-Mart. Amazon.com is less profitable, has much higher earnings volatility, does not pay dividends, is not growing faster at this point and did not invest more than Wal-Mart at the same point in history…There is little else to conclude but the obvious. That Amazon.com is a bubble.”  Read more:  https://seekingalpha.com/article/1547622-is-amazon-com-the-new-wal-mart?source=email_rt_article_title

 

“Online Sales Most Developed in Britain, U.S. Second” at The Economist.  ” Bricks-and-mortar retail may be losing ground to online shopping, but it remains more profitable. The physical world is also increasingly capable of taking the fight to its online competitors. Last year online sales of shop-based American retailers grew by 29%; those of online-only merchants grew by just 21%. Apart from Amazon—which has long spurned profits in favour of growth—most pure-play online retailers are losing market share, says Sucharita Mulpuru of Forrester Research.”  Read more:  https://www.economist.com/news/briefing/21581755-retailers-rich-world-are-suffering-people-buy-more-things-online-they-are-finding

 

“To Sell Consumer Goods in China, You’ll Need to Go Digital, but Chinese-Style” by Winter Wright at Ad Age.  “In just three years, China is expected to become the world’s largest e-commerce market. McKinsey estimates that the number of online consumers will rise from 190 million today to 351 million in 2016, while Forrester is forecasting combined business-to-business and business-to-consumer online sales of $315 billion just two years from now.”  Read more:  https://adage.com/article/guest-columnists/sell-consumer-goods-china-digital-chinese-stye/243078/

 

“Woolworth and Lowe’s Still in the Australian Hardware Game” by Tim McArthur at The Motley Fool.  “The new kid on the home improvement block, Masters opened its first store in September 2011 and has since rolled out 29 stores.  The market is watching anxiously to see how the decision to go head-to-head with industry giant Bunnings, owned by Wesfarmers will turn out. Last year Bunnings had revenues of over $7 billion and earnings before interest and tax of $841 million. In comparison, Masters is forecast to have revenue approaching $900 million in financial year 2014 but to lose close to $100 million. Profits are not forecast by most analysts until at least 2017, highlighting the inherent risks in building the retail chain from scratch.”  Read more:  https://finance.ninemsn.com.au/newsbusiness/motley/8690031/woolworths-and-lowes-still-in-the-hardware-game

 

“Restoration Hardware’s Renovation Is Private-Equity Boon” at WSJ.  “‪Restoration Hardware is expanding its assortment at a pace unlike anything we have ever seen in retail,” Wells Fargo Securities LLC analysts wrote recently. They cited the retailer’s spring catalogs, artsy tomes that can be mistaken for coffee-table books and that have about 1,600 pages of items, including $249 sconces and $995 zebra-hide rugs. A year earlier, the catalogs had about 1,200 pages.”  Read more:  https://online.wsj.com/article/SB10001424127887323664204578605761992293042.html?mod=pls_whats_news_us_business_f

 

“Former Walmart Executive Says Sharing is the New Shopping” by Jason Mark at Earth Island Journal.  “Ruben realized that their best efforts would be insufficient. As he told the audience, “We’re not going to reinvent the industrial model from inside the industrial model.”  Ruben has since left Walmart and embarked on a new endeavor with former Walmart consultant and one time Sierra Club president Adam Werbach. It’s called Yerdle, and it’s a crowd sourcing online community dedicated to getting people to share the things they already own but aren’t using.”  Read more:  https://www.earthisland.org/journal/index.php/elist/eListRead/former_wal-mart_executive_says_sharing_is_the_new_shopping

 

“Michael Kors sues Costco for false advertising” at Reuters.  “According to a complaint filed in Manhattan federal court, Costco has never been an authorized retailer of Michael Kors handbags, yet it has recently run advertisements nationwide falsely suggesting that the handbags are available “starting at $99.”  In one example cited, Costco in April sent an email ad touting a selection of handbags for Mother’s Day “starting at $99.99,” several of which were Michael Kors handbags featuring the company’s trademarks.”  Read more:  https://www.reuters.com/article/2013/07/12/costco-michaelkors-idUSL1N0FI0NJ20130712

 

“Analysis: Retailers keep inventories low for back-to-school sales” at Reuters.  “Stung by leftover inventory because of a wet, cold spring and unsure about consumer spending, many retailers are ordering conservatively for the second busiest selling season of the year behind the end of the year holiday period, according to executives in shipping, banking and manufacturing.”  Read more:  https://www.reuters.com/article/2013/07/14/us-usa-backtoschool-orders-analysis-idUSBRE96D0AR20130714

 

“Will Kroger’s deal for Harris Teeter put to rest Raley’s rumors?” by Kelly Johnson at Sacramento Bus. Journal.  “Brown said, if he were a Raley’s executive, he wouldn’t want to see Kroger’s purchase of Harris Teeter, a company with 2012 sales of $4.54 billion. It is the nation’s 23rd-largest supermarket chain and the 81st-largest retailer in the country. After spending this much to acquire Harris Teeter, Kroger might not be willing to pay top dollar for a future purchase.”  Read more:  https://www.bizjournals.com/sacramento/news/2013/07/10/kroger-harris-teeter-raleys-rumors.html?page=all

 

“MillerCoors kick-starts entrepreneur’s cold invention” by  Tom Rotunno at CNBC.  “I was at an outdoor barbecue and saw people dumping out the last few sips of beer and I thought to myself, how do I change this?” said Curt Peters, the creator of the Chill Puck.Billed as “the next generation ice pack,” the Chill Puck is a hockey-puck-like disc that is molded to fit the bottom of standard-sized beer cans. Consumers keep it the in the freezer and attach it when they are ready to use. The Chill Puck is designed to stay cold for more than an hour at room temperature.”  Read more:  https://www.cnbc.com/id/100880998

 

Thanks for reading…

 

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“Home Depot Presents at Canada Investor Road Show” by Seeking Alpha.  “Execs with Home Depot presented at the Canada Investor Road Show on Wednesday with a detailed look at the home improvement market in the U.S. A key point from the talk is how the company sees the financing/credit atmosphere going from “tight” to loosening quickly between now and 2015. FY13 targets of sales growth of ~2.8% and comparable store sales growth of ~4% are also reaffirmed.”  See Home Depot’s PowerPoint presentation:  https://ir.homedepot.com/phoenix.zhtml?c=63646&p=irol-EventDetails&EventId=4986467

 

“Costco Comp Sales +6% in June/YTD”  “Costco Wholesale Corporation today reported net sales of $9.92 billion for the month of June, the five weeks ended July 7, 2013, an increase of eight percent from $9.16 billion during the similar period last year.  For the forty-four weeks ended July 7, 2013, the Company reported net sales of $87.05 billion, an increase of eight percent from $80.46 billion during the similar period last year.”  Read more:  https://phx.corporate-ir.net/phoenix.zhtml?c=83830&p=irol-newsArticle&ID=1836832&highlight=

 

“Fast Company and Target Announce Winner of the Co.Labs & Target Retail Accelerator”  “Divvy, a digital group shopping concept created by Team Pilot, is the winner of the $75,000 grand prize in the Co.Labs & Target Retail Accelerator.  The Co.Labs & Target Retail Accelerator from Fast Company and Target was a unique partnership designed to foster digital innovation in retail by challenging developers to build a new mobile experience for Target. Work is already underway to bring the Divvy concept to life for Target guests.”  Read more:  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20130710005818&div=-1245645151

 

“Analyst:  Dollar Stores from ‘Blue Skies’ to ‘Partly Cloudy to Cloudy’ ” at WSJ.  “Dollar General attempted to expand its sales by deepening its selection of brand-name products, but the product-expansion strategy backfired. Too many shoppers bypassed the chain’s private-brand offerings, which carry higher profit margins, for bigger-name products like allergy medication Claritin…Dollar General is now reversing course and going back to its tried and true formula of offering a narrower, highly curated assortment of cheap stuff.”  Read more:  https://online.wsj.com/article/SB10001424127887324694904578598170782584066.html?mod=pls_whats_news_us_business_f

 

“Connecticut to Launch Retail Stores in Support of Obamacare” by Sarah Kliff at Washington Post.  “Connecticut plans to launch retail stores across the state where consumers can get in-person assistance with signing up for health insurance coverage. At the end of June, it was the second state to launch a television advertising campaign, following Colorado’s $1.1 million ad buy in May.”  Read more:  https://www.washingtonpost.com/blogs/wonkblog/wp/2013/07/10/q-what-do-porta-potties-coffee-cups-and-airplanes-have-in-common-a-obamacare/?hpid=z4

 

“Family Dollar Announces Merchandising Changes”  “Family Dollar Stores, Inc. today announced that it has named Jason Reiser to the position of Senior Vice President–Merchandising…The Company also announced today that Paul G. White, Executive Vice President-Chief Merchandising Officer, has left the Company to pursue other interests. While the Company completes a search for a replacement for Mr. White, Michael K. Bloom, President and Chief Operating Officer, will assume executive responsibility for merchandising.”  Read more:  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20130710005336&div=-1245645151

 

“Canadian Retailers Love to Email” at Chain Store Age.  “Canadian retailers send the most marketing emails (6.45 per week), followed by American retailers (5.62 per week) and U.K. retailers (2.38 per week).”  Read more:  https://www.chainstoreage.com/article/nordstrom-macy%E2%80%99s-and-saks-top-digital-department-store-study

 

“Wal-Mart Scraps D.C. Store Plans” by Ann Zimmerman at WSJ.  “Wal-Mart Stores Inc. said it was scrapping plans to build three stores in Washington, D.C., after the city’s council passed a bill late Wednesday that would require big retailers to pay starting wages that are 50% higher than the city’s minimum wage…The bill could still be blocked if Mayor Vincent C. Gray vetoes it or if Congress successfully uses its local control to keep the legislation from taking effect.”  Read more:  https://online.wsj.com/article/SB10001424127887324879504578598303146519568.html?mod=wsj_share_tweet

 

“Target, other retailers pledge $140 million for worker safety in Bangladesh” by Thomas Lee at Star-Tribune.  “At a news conference Wednesday in Washington, D.C., the alliance said retailers, including Target, Wal-Mart, Sears, and J.C. Penney will provide $100 million toward factory repairs and another $42 million in cash over five years for training, education and compliance.”  Read more:  https://www.startribune.com/business/214903451.html

 

“Walgreen Raises Dividend by 14.5%” by Jennifer Booton at Fox Business.  “Walgreen raised its quarterly dividend by 14.5% to 31.5 cents a share Wednesday, just two weeks after reporting weaker-than-expected third-quarter earnings and sales and pledging to improve front-end traffic at its retail stores.”  Read more:  https://www.foxbusiness.com/investing/2013/07/10/walgreen-raises-dividend-by-145/#ixzz2YjEcg17U

 

“Office Depot and OfficeMax Stockholders Approve Merger of Equals” “We are very pleased with this endorsement of our proposed merger with Office Depot by our OfficeMax stockholders,” said Ravi Saligram, President and CEO of OfficeMax. “This is an important and historic milestone in bringing our two great companies together.”  Read more:  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20130710006074&div=-1245645151

 

Thanks for reading…

 

Follow on Twitter @retaileyeretail