Archive for month: August, 2013

“Meet the Low-Key, Low-Cost Grocery Chain Being Called ‘Walmart’s Worst Nightmare’ “ by Brad Tuttle at Time. ” “WinCo arguably may be the best retailer in the Western U.S.,” Flickinger says while touring a WinCo store. “WinCo is really unstoppable at this point,” he goes on. “They’re Walmart’s worst nightmare.”  Flickinger isn’t the only industry insider discussing WinCo and Walmart in the same breath. “While many supermarkets strive to keep within a few percentage points of Walmart Stores’ prices, WinCo Foods often undersells the massive discount chain,” the industry publication Supermarket News explained last spring.” Read more

“Twin Cities pawnshops give discount retail a run for its money” by John Ewoldt at Star-Tribune.  “David Andrews has added another option to his shopping rotation: pawnshops.  The Osseo resident discovered recently that some of them are supplementing their usual assortment of guitars, TVs and jewelry with new merchandise purchased from liquidators.  Andrews has picked up a river raft, kayak and a Charbroil grill at 70 percent savings at Excel Pawn locations in Maplewood and Champlin.  “I’m a Costco member, too,” he said. “But I’m saving another 30 or 40 percent off the discounters’ clearance prices at pawnshops.”  Read more

“Costco July same-store sales miss estimates” at Reuters.  “Sales at stores open at least a year rose 4 percent in the four-week period ended August 4, including the impact of fuel and foreign exchange.  On that basis, analysts expected same-store sales to rise 5.1 percent for the month of July, according to Thomson Reuters data.”  Read more

“Coupon Use Made Easier at Costco, a Win for Consumers and for Costco” at 24/7 Wall Street.  ““Under the old format, there were three types of coupons provided in the Costco coupon mailer – instant savings, online-only, and manufacturer’s coupon…Here are the changes that have been made in the coupon policies: 1) Customers no longer need to cut out manufacturer’s coupons to take advantage of the cost savings, 2) Customer’s can present a copy of the mailer, which under the new format, has a Master Bar Code on the first page which can be scanned to take advantage of all non instant savings and 3) Customers also have the option of using a barcode on their Costco app on their smartphones.”  Read more

“Meijer ending double coupons” by Alexander Coolidge at Mason Buzz.  “The Grand Rapids, Mich.-based retailer began informing shoppers with posted signs on Sunday and via Facebook. Meijer officials said they would use money saved from ending the program to offer better deals in its mPerks digital coupon program. “We are shifting our resources,” said spokesman Frank Guglielmi. “Less than five percent of Meijer customer used double coupons, but more than 1.5 million have signed up for mPerks.”  Read more

“Then & Now: Target’s Store Design Philosophy” via target.com.  “In 1975, Target introduced the “racetrack” store prototype to ensure a consistent experience from store to store, no matter the location. One main aisle circles the store, with additional aisles running through the center and the perimeters, allowing for more space to display product. Target also debuted the first planogram, a “map” that helps store teams present clean, uncluttered merchandise displays.”  Read & see more

“Is Airbnb The Next eBay, Uber The Next Amazon?” by Tomio Geren at Forbes.  “That gives Airbnb a leg up on a whole new market as the biggest company in this sector. While Airbnb currently focuses on sharing homes and other spaces for travelers, Airbnb could partner with service providers such as restaurants, retailers and artisans to help travelers. (Airbnb already has been testing a program called Local Lounges in San Francisco cafes that provides WiFi and other help for travelers.) And Airbnb could also expand into other product verticals such as furniture or clothing.”  Read more

“What Product Categories Generate Most Volume In A Grocery Store?” at Forbes.  “Generally, the average supermarkets “cutout” of total sales breaks down as 50% in grocery (the stuff in the aisles and on displays), 15% in dairy and frozen foods, 10%+ in produce/floral, 10% in meat, 4% in deli and fresh bakery, and the balance in general merchandise/health & beauty care/Rx and wine/liquor and beer.”  Read more

“Facebook Takes on Twitter by Courting Celebrities, Building Twittery Tools” by Peter Kafka at All Things D.  “Facebook has been ramping up its efforts to get more famous people using the site. In recent months it has bulked up a global team tasked with courting and hand-holding stars; in some cases, it offers incentives for those who post…In other words: Facebook is acting more like Twitter.  Read more

“J.D. Power: Lowe’s is No. 1 in Appliance Retailer Customer Satisfaction” at Appliance Magazine.  “It was the fourth year that Lowe’s ranked No. 1.  Sears ranked No. 2 and The Home Depot ranked No. 3.  The study also identified the primary reasons that shoppers were buying a new appliance:  42% were replacing a broken or defective appliance, 32% were upgrading existing appliances or remodeling and 20% were buying a new appliance because they moved to a new home.”  Read more

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“CVS Caremark quarterly profit rises as sales up in both units” at Reuters.  “CVS Caremark Corp posted a higher second-quarter profit on Tuesday, helped by its pharmacy benefits management business, where sales growth narrowly outpaced that of its drugstores.  The drugstore and pharmacy benefits management company earned $1.12 billion, or 91 cents per share, up from $966 million, or 75 cents per share, a year earlier.”  Read more

“Immense influence goes with Bezos’ Washington Post purchase” by Brier Dudley at Seattle Times.  “Perhaps this explains why President Obama flew to an Amazon.com distribution center in Tennessee last week to announce his latest jobs plan.  It was an odd place to highlight economic opportunities for America’s middle class.  Odder still was the president’s decision to then distribute an interview on the topic through Amazon’s Kindle platform.  But perhaps the president was already working an angle with the new owner of his hometown newspaper.”  Read more

“How to Spend $25 Billion the Jeff Bezos Way: Newspapers, Rockets and 3-D Printers” by Jason Del Ray at All Things D.  “The firm’s investments have included bets on big-name disruptors, such as Twitter, Uber, Airbnb and Makerbot, as well as a cash infusion in digital media company Business Insider.  Among Bezos Expeditions’ less sexy investments: MFG.com, an online exchange for manufacturers and suppliers; Domo, a business intelligence software startup from Omniture co-founder Josh James; and Qliance, a medical clinic startup.”  Read more

“Best Buy quietly shaving its ranks at headquarters” by Thomas Lee at Star Tribune.  “Several Best Buy employees said the climate can be tense at the company’s headquarters, especially on Tuesdays.  “Whenever someone leaves their desk, we think that person just got laid off, when he or she might just be going to the bathroom,” said one surviving employee who requested anonymity because the individual was not authorized to speak to the news media.”  Read more

“Walmart’s Scan & Go Change Reminds Us How To Make Mobile Work” by Evan Schuman at Storefront Backtalk.  “In the latest upgrade to the chain’s Scan & Go mobile payment/self-checkout hybrid, Walmart takes this all-knowing tactic to the next level, giving shoppers a reason to scan physical receipts.  At its most simple level, the upgrade merely allows shoppers to scan physical receipts from Walmart (more precisely, to scan the QR codes printed on such receipts) to receive an electronic version. For the shopper, it’s a nice way to reduce paper clutter and also organize purchases in one place. For Walmart, though, it’s much more.”  Read more

“TJ Maxx, Saks’ outlets Unveil Online Stores” at CNBC via Reuters.  “Low-price retailer T.J. Maxx plans to open an online store this year, as does rival Saks’ Off Fifth outlets, making 2013 the year technology may have caught up with the speed of fashion.  For such chains, which feature clearance items, last-year’s fashions and overruns, their fast-moving and often unpredictable inventory has made selling goods over the web complex.”  Read more

“AT&T’s Retail Revamp Goes for a Genius Bar Look” by Keenan Mayo at Businessweek.  “The new look appears to be a blatant knock-off of the successful “retailtainment” calculus popularized by Apple Stores, with modern design, hip and mobile staff, and sales transactions sans cash-register. AT&T’s overhaul, which the company intends to expand to more of its 2,300 stores by 2014, is being described as an effort to emphasize the customer experience over sales.”  Read more

“Whole Foods CEO tells Bloomberg new Detroit store ‘exceeding our wildest expectations’ “ by Tanya Moutzalias at Mlive.  “Whole Foods Market Co-CEO Walter Robb told Bloomberg that “the store is exceeding our wildest expectations.” He added that the store is serving a “wide area of the community.  “A lot of things we hoped would work (in Detroit) are working, and I just couldn’t be more pleased with that, particularly at a time when the narrative about the city is so negative. I have to tell you, there is just a lot positive about that community.”  Read more

“easyShopping: Stelios moves into food retail market (UK)” at Herald Scotland.  “He said: “I have a feeling that there is a gap in the food retail market – a niche below some of the current budget operators such as Aldi and Lidl.  “Concentrating on affordable, basic ‘no-brand-name’ packet and tinned foods at bargain prices, easyFoodstore underlines the need for additional reliable day-to-day provision of basic foodstuffs. No other details have yet been decided.”  Read more

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“Wal-Mart, retailers vie for bigger entertainment share” by Kim Souza at The City Wire.  “It’s been more than three years since Wal-Mart purchased Vudu, a video-streaming service based in Silicon Valley…Retail consultant Jason Long with Shift Marketing Group, said brick and mortar retailers are likely delving into streaming media as a defensive strategy focused on regaining lost revenue and blunting Amazon.  “Think about what could happen if Wal-Mart didn’t get into streaming, they cede eyeballs and engagement opportunities to Amazon and others.”  Read more

 “An Interview With Costco CEO Craig Jelinek” by Austin Smith at The Motley Fool.  “Do you view a brick-and-mortar competitor like Wal-Mart or an online-based competitor like Amazon as maybe a bigger concern or a bigger threat to Costco’s model?  Jelinek: I think, like I said before, they’re both threats, as is Target a threat, as is Whole Foods a threat.  The key is being the low-cost provider. That’s going to be the key for anybody winning the battle long term. It’s whoever can bring value and bring the best quality of merchandise to the marketplace at the best price. I think that’s really the key.”  Read the full interview

“Here’s What Brick & Mortar Stores See  When They Track You” by Sarah Kessler  at Fast Company.  “RetailNext, Euclid, Brickstream, Nomi, WirelessWerx, Mexia Interactive, and ShopperTrak are just a handful of services that provide brick-and-mortar stores with analytics akin to website traffic reports. By tracking movement within stores, they help retailers better understand how to optimize their layouts, staff their registers, attract returning customers, and more.”  Read more

“Amazon’s Overlap with Costco Could Spell Trouble” at Trefis.  “This study included the response of 15,000 customers as well as their movement analysis through the physical world. According to the study, about 45% of Amazon’s prime customers (who pay $79/year for free two-day shipping) will more likely shop at Costco than an average shopper. Moreover, there is 38% more chance for Amazon’s showroomers to visit Costco as compared to other showroomers. This indicates a big overlap between Amazon’s and Costco’s customers, which is not a good news for the latter.”  Read more

“From Oh, Canada to ‘O, Canada!’: Retail’s growth anthem” by Katie Little at CNBC.  “”For North American retailers, it’s easier to look over the fence at their neighbor versus looking across the pond for growth,” said Carman Allison, Nielsen’s director of shopper and industry insights. “With Canadians being exposed to media and advertising, brand awareness already exists for a number of key retailers and brands before they even enter the new market.”  Read more

“Harris Teeter profits jump in last quarter” by Ely Portillo at Charlotte Observer.  “Harris Teeter reported Wednesday that its profits for the quarter ending July 2 nearly doubled compared to the same period last year, to $31 million, as sales increased and costs held steady.  The company’s revenue grew 2.9 percent, to $1.19 billion. Sales at stores open for a year or more, considered a key measure of a retailer’s health, rose 1.3 percent.”  Read more

“Idaho artist’s coloring books become Costco hit” by Audrey Dutton at Seattle-Times.  “The Caldwell, Idaho, mother and grandmother and a family-owned Caldwell printing company can hardly keep up with orders for the “Color Me Your Way” book series.  The whole thing started with a lottery ticket and a few people who believed in her. I can’t even explain it,” she said. “I’m in awe. I’m just sitting here, going, ‘Can this be happening?’ ”  Read more

“A retail rally in the heart of L.A.” by Tiffany Hsu & David Pierson at LA Times.  “There’s been a real difference,” said King, 37, who lives at 8th and Flower streets. “First we got the Ralphs, then a Target, and now we’re getting a Whole Foods. It’s important because I’ll be able to stay here to buy organic produce and sustainable meat.”  Whole Foods will join a fattening lineup of grocers looking to cash in on downtown’s renaissance.”  Read more

“AT&T Ridding Some Retail Stores of Cash Register, Counters and Other Clutter” by John McDermott at Ad Age.  “AT&T plans to eliminate sales counters, registers, information placards and printers from 15 to 20 of its retail locations by the end of the year and will continue to roll out the less-cluttered design to more of its 2,300 U.S. stores into 2014.  “It’s a pretty radical departure from what we’ve done in the past,” AT&T Chief Marketing Officer David Christopher said in a recent interview.”  Read more

“Home Depot Biting Back Against Mosquitos” at ABC 40 (Springfield, MA). “He also suggests mosquito donuts to lure and kill the insects where they gather the most.  “Most mosquitoes are drawn to standing water. You put [the donut] in a birdbath, put it in a stump that has accumulated water. Its drawn to it and it will kill them,” Colo says.”  See the video

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Have a great weekend!