Friday’s Eye-on-Retail Tipsheet: H.Depot CEO on CNBC | Wgreen/Rite Aid Sls Up | Costco in Australia

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“Home Depot CEO says company is a ‘very North American business’ ” at CNBC.  “Frank Blake confirmed his company’s decision to pull out of the Chinese market last September.  “Not that China isn’t a great market, but we didn’t have the answer for the Chinese market and in particular understanding the needs of the Chinese consumer and how we could use our distribution strength to provide them better value,” he said.”We just never could solve that problem.”  Though Home Depot has strong operations in Canada and Mexico, Blake called the company “a very North American business” and said it isn’t interested in expanding anywhere else right now.”  Read more & see the interview

 

“Home Depot CEO Sees Housing Recovery Continuing to Boost Sales” by Chris Burritt at Businessweek.   “Home Depot Chief Executive Officer Frank Blake said rising home prices this year will spur renovation spending, helping the retailer even as increasing mortgage rates put pressure on the U.S. housing recovery.  “As we look into the back half of 2013, we continue to see the housing market improving — not a blistering pace but a steady, steady improvement,” Blake, 64, said in an interview at Bloomberg’s New York headquarters yesterday.”  Read more

 

“Walgreens August Sales Increase 5.6 Percent”  “Total sales for the fourth quarter of fiscal 2013, which ended Aug. 31, were $17.95 billion, up 5.1 percent from $17.07 billion in last year’s quarter. Comparable store sales for the fourth quarter of fiscal 2013 increased 4.5 percent (4.9 percent day-fall adjusted), while front-end comparable store sales for the quarter increased 1.7 percent.”  Read more

 

“Rite Aid’s August  Same-Store Sales up 1.1%”  “For the five weeks ended Aug. 31, 2013, same store sales increased 1.1 percent over the prior-year period. August front-end same store sales decreased 1.7 percent…Prescription count at comparable stores decreased 0.2 percent over the prior-year period.”  Read more

 

“Kroger sets up mini market at Nascar race in Richmond” by Dean Hoffmeyer at Richmond Times Dispatch.  “We’re hoping we’ll be swamped, this time, and then we’ll come back with a bigger store for the spring race,” said Kroger grocery coordinator Ellie Holden, who, along with marketplace specialist Ron Dean and four assistants, were stocking the store Wednesday…The introduction of the on-grounds store is being treated by Kroger as a test.”  Read more

 

“Costco gets nod for national expansion in Australia” by Gina Rushton at The Australian.  “US retail giant Costco has launched an Australia-wide expansion with more than five stores expected to open across the country over the next 18 months…The retailer’s growth plans had earlier been dismissed by the local council as not permissible under business park zoning rules but Sutherland Shire Council moved to overrule that decision.”  Read more

 

“Report: J.C. Penney dumps Martha Stewart” by Anne D’Innocenzio at AP via Charlotte Observer.  “J.C. Penney may be ending the tug-of-war with its nemesis for Martha Stewart.  The chain is reportedly dumping the Martha Stewart brand, after sales of the home maven’s goods failed to live up to expectations.”  Read more

 

“Online holiday forecast: sales will increase 15.1%” at Internet Retailer.  “E-commerce spending in the United States will increase about 15.1% year over year in November and December—prime holiday shopping time—says eMarketer in a projection released today. Spending during those two months will total $61.8 billion, up from $53.7 billion in 2012.”  Read more

 

“Grocers look to click & collect online profits” at Reuters.  “Retailers are experimenting with different pick-up models, from “drive-thrus” adjoining existing stores that are popular in France, to refrigerated lockers at petrol stations and new warehouses dedicated to online known as “dark” stores…Food and consumer goods research group IGD predicts “drive-thru” will propel French online grocery sales to 10.6 billion euros ($13.98 billion) by 2016 from 6.7 billion in 2013, while it sees home delivery push UK online grocery to 11.4 billion euros in 2016 from 7.4 billion in 2013.”  Read more

 

“Kroger may be behind a secret project in Atlanta” at Cincinnati Business Courier.  “A regional distribution center in Atlanta expected to bring 1,500 jobs might be run by Cincinnati-based Kroger Co., the Atlanta Business Chronicle reports.  An undisclosed company is looking into possible sites for the $225 million project that has been code-named “Project Jasper.”  Read more

 

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Have a great weekend!

Thursday’s Eye-on-Retail Tipsheet: Costco Sls Jump 4% | D.Gen +5.1% | Delhaize CEO Out

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“Costco Same-Store Sales Jump 4% in August” – Company Press Release.  “Costco today reported net sales of $7.95 billion for the month of August, the four weeks ended September 1, 2013, an increase of seven percent from $7.44 billion during the similar period last year.  For the 16-week fourth quarter, the Company reported net sales of $31.8 billion, an increase of one percent compared to net sales of $31.5 billion in the 17-week fourth quarter of fiscal year 2012.”  Read more

 

“Costco’s August same-store sales beat estimates” at Reuters.  “Sales at stores open at least a year rose 4 percent, including the impact of fuel and foreign exchange, in the four-week period ended Sept. 1.  Analysts had expected same-store sales to rise 3.8 percent for the month of August…The company would open 15 new warehouses by the end of year, Jeff Elliot, assistant vice president of financial planning and investor relations, said in a pre-recorded conference call.”  Read more

 

“Dollar General Beats with 5.1% Same-Store Sales Growth in Q2” at Chicago Tribune.  “Same-store sales increased 5.1 percent. Analysts had expected such sales to rise 4.2 percent.  Along with beating the decline in same-store sales at Walmart U.S., Dollar General’s same store sales were better than a 3.7 percent increase at Dollar Tree Inc and a 2.9 percent increase at Family Dollar Stores Inc in the latest periods those rivals reported.”  Read more

 

“Trading Down Continues to Help Dollar General” by Paul Ziobro at WSJ.  “While big-box retailers such as Wal-Mart Stores Inc. and Target Corp. are losing traffic, shoppers—especially those on the lower rungs of the income ladder—are still turning up at dollar stores.  The latest evidence comes from Dollar General Corp., which reported a 15% increase in second-quarter earnings Wednesday, as same-store sales rose 5.1%. Overall sales rose 11%, as the company continues to quickly open more stores, bring its total to 10,866.”  Read more

 

“Delhaize America CEO out as grocery shakeups continue” by Ely Portillo at Charlotte Observer.  “The CEO of grocer Delhaize America resigned Wednesday, meaning Food Lion’s new chief executive will now report directly to the grocer’s parent company in Belgium while the company attempts its turnaround.  Roland Smith had been CEO of Delhaize America for less than a year… Food Lion chief executive Beth Newlands Campbell, along with the grocer’s other U.S. operations, will report directly to Delhaize Group’s new CEO in Brussels, a spokeswoman said.”  Read more

 

“Walmart workers planning massive strike today” by Charles McKeague at AJC.  “Thousands of Walmart employees are gearing up for a massive strike Thursday. Last week, fast food workers walked out on their jobs — demanding $15 an hour. Walmart employees are seeking similar wages.”  Read more

 

“Supermarkets Benefit from Cooperative Rather Than Competitive Response to Hard Discounters” from American Marketing Association.  “First, supermarkets close to the hard-discounter entrant are generally better off than those located further away, as consumers are in this case more inclined to combine visits to both stores. Second, rather than trying to catch up in price-sensitive categories, traditional retailers should focus on improving their offer in categories where they are already strong.”  Read more

 

“EPA Slams Safeway with $600K Fine” by Stephanie Lee at San Fran Chronicle.  “The settlement follows allegations by the U.S. Environmental Protection Agency that the Pleasanton grocery-store chain, the nation’s second largest, violated the federal Clean Air Act by failing to properly repair leaks of a gas that is used as a coolant in refrigerators.”  Read more

 

“RetailMeNot Shoppers Trend Report: A Whopping 92% of American Consumers Are Coupon Users”  “While printable coupons remain the most widely used type of coupon (60%), online coupon usage has nearly doubled (29% vs. 16% three years ago) and mobile coupon usage has nearly tripled in the past three years (10% vs. 4% three years ago).”  Read more

 

“Coming soon: 334 pot stores in Washington state” by Bob Young at Seattle Times.  “Retail stores would be allocated by population and accessibility, in a system similar to the one used for defunct state liquor stores. That system sought to have stores within a 15-minute drive for 95 percent of the population.”  Read more

 

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Wednesday’s Eye-on-Retail Tipsheet: Target wants to be Netflix | D.General Q2 Earnings Today | DC-Wmart Update

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“Target Nears Debut Of Streaming Video Service” by Jake Anderson at Twin Cities Business.  “Hints about the new service, called Target Ticket, appeared earlier this year on an online login page, which indicates that the platform is in beta mode and requires a promotional code and “Team Member ID” number to access it.  But technology news outlet TechCrunch recently obtained documents that were reportedly distributed to Target employees—and that indicate that the new service is nearing its official rollout.”  Read more

 

“Lowe’s Names McDermott SVP/General Merchandising Manager, Building and Maintenance”  “Michael P. McDermott will join the company as senior vice president and general merchandising manager- building and maintenance, a new position. McDermott will be responsible for the Lumber & Building Materials, Millwork, Hardware & Tools and Rough Plumbing & Electrical divisions. He will report to Chief Merchandising Officer, Michael A. Jones.”  Read more

 

“Dollar General Is Paying Its Way” at WSJ.  “Dollar stores overall have had a fantastic run against Wal-Mart Stores Inc., which caters to overlapping demographic groups. If both companies’ guidance holds through the end of this year, Dollar General’s five-year compound annual growth rate for same-store sales will have been 5.9%, while Wal-Mart’s will be just 0.3%.  In the next few years, though, that difference is seen narrowing.”  Read more

 

“Dollar General Releases Q2 Earnings today at 9am CST”  Listen to webcast

 

” ‘Walmart in DC’ bill stays with Mayor Vincent Gray – no decision made” by Justin Karp at ABC 7.  “The Washington Business Journal reports that Gray was once again noncommittal about his decision on the so-called Walmart bill as many groups called for him to veto it.  Gray received the bill on Friday – more than six weeks after it was passed by the D.C. Council – and has 10 business days to decide whether to sign it, veto it or send it back to the Council.”  Read & See more

 

“Whole Foods Market to open Englewood (Chicago) store in food desert” by Maudlyne Ihejirika at Chicago Sun-Times.  “The chain, which offers an affordable house brand of 2,000 products — the 365 Everyday Value and 365 Everyday Value Organic lines — opened a similar urban store in June in Detroit. That 21,000-square-foot, inner-city store is seeing profits.  “We’ve been very pleased with how it’s doing,” Robb said. “The proof’s in the pudding, isn’t it? In the end, if we open a store and work with the folks in that community, we certainly understand it has to be affordable.”  Read more

 

“Wegmans ends seasonal price freezes” by Tom Tobin at Democrat & Chronicle.  “In announcing the price-freeze list in 2011, Wegmans pledged to shoppers that it would not raise prices for them even if costs for the company escalated. That happened many times in the years since, especially in the fruit, produce and meat categories.  The discontinued price-freeze list contained 67 items, including meat, seafood, grocery, dairy, bakery, frozen foods and deli products. There were 14 seasonal produce items.”  Read more

 

“Petco Launches $15 Million Campaign, Company Transformation Effort” by Natalie Zmuda at Ad Age.  “Petco is handily outspent by rival PetSmart, which spent $94 million on measured media last year. Ms. Charles pointed out that, though it has a smaller budget, Petco seeks to better engage its customers through social media. Petco has 2.3 million fans on Facebook, compared to PetSmart’s 1.8 million fans. Petco also has more than double the number of followers of its rival on Instagram, though PetSmart is outpacing Petco by a few thousand followers on Twitter.”  Read & See more

 

“Hashtags Make Your Facebook Posts Less Likely to Go Viral” by Christina Chaey at Fast Company.  “EdgeRank Checker also found hashtagged Facebook posts were less effective at engaging fans and had lower organic reach than their hashtag-free counterparts.EdgeRank Checker’s findings on Twitter hashtags, on the other hand, showed tweets with hashtags had roughly double the likelihood of being retweeted than tweets without them.”  Read the full report

 

“Ace gives new look to the paint aisles” by Sandra Pedicini at Orlando Sentinel.  “Ace Hardware is changing its paint department and plans to give a sneak peek at its national convention next week in Orlando.  An Ace spokeswoman said in an email the new departments will create a “boutique-style shopping experience” and offer an expanded line.  Some stores will get the new paint sections this month, and most should have them by May.”  Read more

 

“5 reasons 3-D printing isn’t quite ready for prime time” by Clay Dillow at CNN Money.  “While cheaper printers, expiring patents, and a wider range of applications will certainly help drive the market — and perhaps even triple the value of 3-D printing’s nascent marketplace in the near term — a desktop manufacturing revolution this is not. Here are five reasons why.”  Read more

 

“Home Retail (UK) says CEO Duddy to quit by July 2014” at Reuters.  “After five straight years of profit declines, Home Retail is trying to reinvent Argos, its biggest business, for the digital age, targeting a 15 percent rise in sales by 2018.  Home Retail, which also owns the Homebase DIY chain, said on Wednesday Duddy, CEO for seven years, had informed the board of his intention to step down from his role by the next annual shareholder meeting on July 2, 2014.”  Read more

 

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Tuesday’s Eye-on-Retail Tipsheet: Sears Hometown Tumbles | Harris Teeter Fights Unions | Publix to NC

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“Sears Hometown profit tumbles 57%” at Chicago Tribune.  “The company, which spun off from Sears last year, earned $9.1 million, or 40 cents per share, off from $21.1 million, or 91 cents per share, a year earlier.  Revenue rose 2.2 percent, to $656.9 million, on a small increase in sales at established stores and a boost from new store openings.”  Read more

 

“Harris Teeter to employees: Let’s keep unions out” by Ely Portillo at Charlotte Observer.  “Harris Teeter’s top executives are warning the grocer’s employees about unions after its acquisition by Kroger Co., a supermarket company whose workforce is largely represented by the United Food and Commercial Workers union.  “Unfortunately, it appears the United Food and Commercial Workers Union (UFCW) is trying to take advantage of the merger to gain new members,” wrote Frederick Morganthall II, Harris Teeter president.”  Read more

 

“Publix taking fight to North Carolina” by Justine Griffin at Herald-Tribune.  “While most in the retail industry scaled back, focusing instead on existing stores and on maintaining profits, Publix Supermarkets surged ahead.  The Lakeland-based grocery chain, which has dominated the Florida market with keen customer service and aggressive marketing, is now updating older existing stores and expanding into new markets.”  Read more

 

“UK Online sales grow by 15% in August” by Chloe Rigby at Internet Retailing.  “Total retail sales grew by 3.6% in August, with like-for-like sales, stripping out the effect of store openings and closures, up by 1.8%. This, said Dickinson, was evidence of an uptick in consumer confidence.”  Read more

 

“Long CVS receipts spark social media sensation” by Taryn Luna at The Boston Globe.  “In one photo, a man holds up a CVS receipt so long it towers above his head. Another features a woman who jokingly uses the paper strip to keep track of her figure. She’s down to her target waistline: half a receipt.  The drug store chain’s remarkably long receipts — some, jammed with coupons, are said to reach 6 feet — have become a social media sensation, sparking more than 8,000 Twitter posts that range from gentle ribbings to scathing reproaches.”  Read more

 

“Argentina’s gargantuan knock-off mall: Heading to the U.S.?” by Ian Mount at CNN Money.  “It sits in a run-down neighborhood bordering a river fetid with industrial pollution. It’s full of rip-offs. Few of its vendors pay taxes. And it’s as chaotic as a Mad Max sequel.  At the same time, it is a successful ad-hoc solution to an economic collapse, a flat, direct-to-consumer model that provides desperately needed jobs, and it might just show the way to a brick-and-mortar version of Amazon. Moreover, as a middle class rises in developing countries like China, it offers a glimpse into the future of brands.”  Read more

 

“Has Tesco really created the supermarket of the future (UK)?” by Alex Johns at The Drum.  “As soon as you walk in you know it’s ticking that box in a big way, and that Tesco is really trying to make it different. This is the world of Tesco in front your eyes: you can have a great coffee at Harris + Hoole or grab a snack at Giraffe (which it acquired back in March); buy fashion from the new-look F&F or try the Euphorium bakery.”  Read & see more

 

“Bras in a Box and Netflix-Like Clothing Swaps? New Services Look to Disrupt Online Shopping” by Lauren Goode at All Things D.  “Free at-home try-ons. Subscription socks in a box. Monthly doggie treats. Robot-chosen bras. If “regular” online retailers were starting to disrupt brick-and-mortar stores 10 years ago, niche businesses like these now want to change the way we buy our clothes — and nab repeat customers in the process.”  Read more

 

“10 things Generation Y won’t tell you” by Jen Wieczner at WSJ.  “Millennials have grown into adulthood with some personality problems that the boomers lacked…including high rates of narcissism, materialism, unrealistically inflated expectations and a startling lack of independence. American college students scored 30% higher on the 40-item Narcissistic Personality Index in 2006 than they did in 1979, for instance, according to a study led by psychologist Jean Twenge of San Diego State University.”  Read more

 

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