Archive for year: 2013

“Amazon leader Bezos honored by unlikely bunch” by Amy Martinez at Seattle-Times.  “Amazon.com founder and Chief Executive Jeff Bezos has received his share of business awards lately. Fortune magazine named him its 2012 “Businessperson of the Year.” Harvard Business Review ranks him as the No. 1 living CEO.  Now comes the National Retail Federation and its so-called Gold Award.  The trade group’s selection of Bezos as retailer of the year may be the most surprising one yet when you consider the fierce rivalry between Amazon and the organization’s brick-and-mortar base.”  Read more:  https://seattletimes.com/html/businesstechnology/2020128023_amazon14.html

“Wal-Mart plans to hire 100,000 veterans over five years” in Chicago Tribune via Reuters.  “Wal-Mart Stores Inc , the world’s largest retailer, said it plans to hire more than 100,000 veterans in the United States over the next five years, a move supported by First Lady Michelle Obama.  Most of the veterans will be placed in the company’s stores and clubs, and some will be employed in distribution centers, Walmart U.S. Chief Executive Bill Simon said in a speech to be to delivered on Tuesday at the National Retail Federation conference.  The retailer will start issuing job offers to veterans from Memorial Day in May. The offers will be given to any honorably discharged veteran within his or her first twelve months off active duty.”  Read more:  https://www.chicagotribune.com/business/sns-rt-us-walmart-veteranhiringbre90e05n-20130114,0,2009707.story

“Facebook shares rise in buildup to mystery event, earnings” at Reuters.  “Facebook Inc’s stock opened on Monday above $32 for the first time since July as anticipation about upcoming products and financial results underscored Wall Street’s renewed confidence in the online social network.  Facebook will on Tuesday host its first major press event at its headquarters in Menlo Park, California, since its troubled initial public offering in May, triggering a guessing game among technology observers and online blogs about what it could unveil – everything from a smartphone to a search engine.”  https://www.reuters.com/article/2013/01/14/us-facebook-event-mystery-idUSBRE90D10D20130114

“Deloitte Report: Retail revenues rebound despite global downturn.”  The revenues of the world’s 250 largest retailers topped $4 trillion in fiscal year 2011 (encompassing companies’ fiscal years ended through June 2012), according to the 2013 Global Powers of Retailing report from Deloitte Touche Tohmatsu Limited , in conjunction with STORES Media. This is a 5 percent year-on-year increase in retail revenue despite the global economic downturn. Additionally, according to the report retail revenue rose significantly for companies based in emerging markets in Africa, the Middle East, Latin America and Asia Pacific (excluding Japan). Read more:  https://media.prnewswire.com/en/jsp/latest.jsp?resourceid=6121743&access=EH

“Handy Hardware Files for Chapter 11 Bankruptcy” by Stephanie Gleason at 4-Traders.  “In order to expand its business throughout the southeastern U.S., Handy Hardware built a 460,000 square-foot warehouse in Meridian, Miss., in 2009, according to documents filed with the U.S. Bankruptcy Court in Wilmington, Del. That facility increased costs at the same time its business was being impacted by the poor U.S. economic climate, driving in 2011 a loss of $8.4 million.  By October 2012, Handy Hardware became unable to service the debt it incurred to finance the construction of the facility and defaulted on $26 million in bond debt. It decided to shut down the Meridian facility, lay off the workers there and move the inventory to its Houston warehouse…The company said it hopes to emerge from Chapter 11 still a member-owned company that has “right sized” operations and reduced bond debt.”  Read more:  https://www.4-traders.com/THE-HOME-DEPOT-INC-4826/news/Handy-Hardware-Files-for-Chapter-11-Bankruptcy-15824732/

“Walmart to Bring Nation’s Smallest Location to Atlanta” by Atlanta Daily World.  “In December, Walmart signed a contract with Georgia Tech Auxiliary Services to establish a convenience store concept in the Tech Square space where restaurant Ribs n Blues was previously located. ..The current 2500-square foot location will be smaller than the only other Walmart on a college campus, also known as Walmart pharmacy, which is located at the University of Arkansas in Fayetteville…”They will carry some electronics, peripherals, a few devices. They may sell some iPods too,” Steele said. “They will also sell a lot of grocery items… frozen foods, fresh foods,… grab-and-go and beverage items. It’s like a mini CVS.”  Read more: https://atlantadailyworld.com/201301143132/Business/walmart-to-bring-nation-s-smallest-location-to-atlanta

“RadioShack calls off mobile venture with Target” at Chicago Tribune via Reuters.  “RadioShack, a retailer of consumer electronics and other gadgets, had been helping operate “Target Mobile” stores within 1,500 of Target’s big box locations. RadioShack said that deal will end on April 8.  “In order for RadioShack to have continued this relationship, we needed to establish a new agreement that would be financially appealing to both companies,” said RadioShack Executive Vice President Telvin Jeffries in a statement. “Ultimately, we amicably agreed to dissolve the relationship.”  Read more:  https://www.chicagotribune.com/business/breaking/chi-radioshack-calls-off-mobile-venture-with-target-20130114,0,6625398.story

“Family Dollar CEO says payroll tax hike a small challenge” by Eli Portilo at Charlotte Observer.  “Analysts have said this will hurt discount retailers. Levine said on CNBC’s “Squawk on the Street” morning program that he doesn’t think the tax will be a significant drag on his company.  “We’ve been through many economic scenarios that were much more challenging than this one,” he said, although he added the payroll tax is “certainly not a positive. Levine said the trade-down customers are still seeking out Family Dollar, although he declined to break out what percentage of the retailer’s customers they are. Levine said the core customers, with under $40,000 in annual income, remain the majority of Family Dollar’s customers.”  Read more:  https://obswhatsinstore.blogspot.com/2013/01/family-dollar-ceo-says-payroll-tax-hike.html#storylink=cpy

“Despite assurances, CVS and Rite Aid ran out of flu shots all over Boston this weekend” by Galen Moore at Boston Business Journal.  “Drug stores in Massachusetts have made a marketing push for walk-in flu shots during flu season, advertising the service prominently in what has become a nasty flu season. But by Friday, heading into what was probably peak demand for flu shots in Boston, many CVS and Rite Aid pharmacies had already run out, pharmacists said. The in-store shortage came days after the Boston mayor declared the 2013 flu season a public health emergency.”  Read more:  https://www.bizjournals.com/boston/blog/mass_roundup/2013/01/cvs-rite-aid-flu-shot.html

“Whole Foods Co-CEO Calls for ‘New Capitalism’ ” by Mark Hamstra at Supermarket News.  “With the government under spending constraints and many Americans still struggling economically, the need for businesses to embrace social responsibility is great, said Walter Robb, co-chief executive officer, Whole Foods Market, in a presentation here Monday.  “It’s a world that needs compassion,” Robb said during a panel discussion at the National Retail Federation Annual Convention & Expo here. He called for a “new capitalism” that can improve lives while thriving as a business.”  Read More: https://supermarketnews.com/retail-amp-financial/whole-foods-co-ceo-calls-new-capitalism#ixzz2I2q4G7FZ

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Happening Now:  The National Retail Federation (NRF) kicks off its 102nd annual Convention and Expo in NYC @ Jacob Javits Convention Center, January 13-16.  We’ll be reporting on highlights all week.  Read more:  https://events.nrf.com/annual2013/public/MainHall.aspx?ID=13380&sortMenu=101000 

“Retailers gather for industry’s ‘mini Davos’ ” by Andria Cheng at Market Watch.  “The retail industry’s biggest brainstorming session has begun.  A record 27,000-plus attendees are congregating for a four-day convention where they’re shopping for technology, exchanging ideas and listening in on 100 educational sessions and keynote speeches. The conference, hosted by the National Retail Federation, features speakers including Walmart U.S. CEO Bill Simon and former UN Secretary-General Kofi Annan.  Among those attending are 6,500 U.S. retailers, including Starbucks Corp., Whole Foods Market and Macy’s Inc., a 60% jump from 4,000 last year, said NRF President and CEO Matthew Shay.”  Read more:  https://www.marketwatch.com/story/retailers-gather-for-industrys-mini-davos-2013-01-14

“How technology is closing the gap between mature and emerging retail markets” by Margaret Case Little at NRF.  “Veteran BIG Show speaker and renowned consultant on the Brazilian retail market, Marcos Gouvêa de Souza (GS&MD), focused on the differences between the mature retail markets (of the United States and Western Europe) and emerging retail markets of South America. Gouvea de Souza pointed out the disparity between economic growth rates between developing and mature economies and the even bigger disparity between retail growth rates between the two as well. Weighted for population age, he says, Brazil’s retail sector grew at 8.1% versus 2.1% in mature markets. The opportunities for Brazilian retailers, global brands and global retailers are immense.”  Read more:  https://blog.nrf.com/2013/01/13/how-technology-is-closing-the-gap-between-mature-and-emerging-retail-markets/

“One Thing We Know Facebook Is Working On” by Cadie Thompson at CNBC.  “From a Facebook smartphone to developing its e-commerce presence, there’s no shortage of rumors as to just what Facebook will roll out next week. But there’s growing certainty that the social giant will eventually get into the search business, if not next week, sometime this year, analysts said…”There’s been a general approach to the Yahoos of the world, MSNs of the world, where eventually you want to keep the eyeballs on your site as long as you can,” Bajarin said. “So think of it this way, Facebook is really going in the direction of creating a destination page that people come to where they can get a lot of things—not just social networking—shopping news sports weather as well as search because search becomes the glue.”  Read more:  https://www.cnbc.com/id/100370112

“CMO Predictions For 2013 — Part 2: Ford, Heineken, CVS”  by Brandon Gutman at Forbes. “Rob Price, Chief Marketing Officer of CVS/pharmacy recounted how at the end of 2012 we saw “omnichannel” take center stage as one of the biggest buzzwords in the industry. Price feels that in 2013 we’re bound to see the marketer’s role evolve to become the advocate for the individual customer, regardless of which channel they are using to interface with your brand. At CVS/pharmacy, Price and his team are working to unlock all dimensions, regardless of channel, to truly personalize the customer experience. This starts with a digital interface that fuses preferences and insights from the ExtraCare savings and rewards program. It means personalizing the physical store environments through a store clustering effort to tailor products and services.”  Read more:  https://www.forbes.com/sites/marketshare/2013/01/10/cmo-predictions-for-2013-part-2-ford-heineken-cvs/

“Amazon, Macy’s, Sears Fined For False Bamboo Claim” at Sustainable Business.  “The Federal Trade Commission (FTC) seems to be serious about stopping false green marketing claims – it fined four high-profile retailers for falsely claiming that clothing, fabrics and textiles were made from bamboo fiber.  Amazon.com, Leon Max, Macy’s and Sears (and its Kmart subsidiaries) have agreed to pay a total of $1.26 million in penalties to settle FTC’s claims that they violated the Textile Products Identification Act (Textile Act) and FTC’s Textile Rules.”  Read more:  https://www.sustainablebusiness.com/index.cfm/go/news.display/id/24454

“Canada: Target’s next bull’s-eye” by Thomas Less in the Star-Tribune.  “Target’s close attention to detail — right down to the local cuisine — reflects the gravity of what is arguably the boldest project in its 50-year history. Beginning in March, the chain will open the first of 124 stores in Canada, its first expansion beyond the United States. The move also is Target’s first big step at becoming a global retail force.  But Target’s international ambition has less to do with bragging rights than basic survival. Not only is Target running out of room to grow, but recession-worn American consumers haven’t been as eager to open their wallets, much to the benefit of low-priced competitors like Wal-Mart and Amazon.”  Read more:  https://www.startribune.com/business/186633251.html

“CONFIRMED: Rite Aid And Family Dollar Have Axed News Corp’s Troubled In-Store Ads Division”  by Jim Edwards at Yahoo Finance.  “The news doesn’t sound dramatic unless you know the context: News and Valassis have been locked in a years long war for domination of the supermarket/grocery business, a battle which has so far cost News $656 million in legal settlements over allegations that it used antitrust tactics to drive competitors out of the market.  Since that settlement, News was sued by Dial Corp, alleging its tactics kept prices higher than they should be for in-store advertising and newspaper coupons. We speculated that suit could — and that’s a highly qualified “could” — lead to a full-scale mutiny of News’ in-store clients.”  Read more:  https://finance.yahoo.com/news/rumor-did-news-corp-just-181906656.html  

“Bass Pro Shops ends (logo) dispute with Valrico company” by John Cascio at Fox 13 Tampa Bay News.  “Bass Pro Shops is ending its dispute with The Simple Life Outfitters over its logo. It had claimed the small Valrico shop’s image was too similar to their own.  “He goes, ‘My name is Johnny Morris,’ and it didn’t register at first who it was,” Morris said.  In a gutsy move, company founder John Morris walked into Kelly Morris’s store Saturday to apologize. He and his wife were on a fishing trip in Fort Myers and had just learned of the dispute involving his company.  He felt moved enough to make things right face-to-face.  “He stuck his hand out and shook my hand, and he said, ‘I just drove up from Fort Myers. Me and my wife thought we should say we’re sorry for what my company has done for his family,'” Morris said.”  Read more:  https://www.myfoxtampabay.com/story/20578094/2013/01/14/bass-pro-shops-ends-dispute-with-valrico-company

“Enrique Ostale Named President and CEO of Walmart Latin America”.  “Wal-Mart Stores, Inc. today announced that Enrique Ostale, president and CEO of Walmart Chile, formerly D&S, has been named executive vice president, president and CEO of Walmart Latin America, where he will oversee Walmart’s operations in Argentina, Brazil, Chile, Costa Rica, El Salvador, Guatemala, Honduras, Mexico and Nicaragua.  Read more:  https://media.prnewswire.com/en/jsp/latest.jsp?resourceid=6116675&access=EH

“American Water Heaters connects smart water heater to Lowe’s Iris smart home solution”.  “The connected water heater will allow homeowners to use a smartphone or tablet to set water temperatures and operating modes, including activating the money-saving “Vacation” mode while away. Iris also will share diagnostic information regarding water heater operation with the homeowner. An optional leak detection sensor will be available to notify homeowners in the event of a water leak.  Future developments include integrations that will provide homeowners with information on energy use, as well as connect with electric utilities’ demand response systems—the much-discussed “smart grid.” This reporting will enable homeowners to conserve power in exchange for utility rebates. The “Smart Port” that delivers this connectivity is already available on the Energy Smart line of water heaters.”  Read more:  https://media.prnewswire.com/en/jsp/latest.jsp?resourceid=6116835&access=EH

“Walmart Teams With UPS to Fight Amazon” at The Slant.  “…So rather than beat Amazon, Walmart is trying to join it with a big digital push and this UPS partnership. Dubbed Walmart To Go, the move will feature same-day delivery for $10 in northern Virginia, Philadelphia and Minneapolis, with the San Francisco area coming online within a year. Deliveries will be made by UPS using its extensive distribution network rather than building out a warehousing and shipping network that could rival Amazon.”  Read more:  https://slant.investorplace.com/2013/01/walmart-teams-with-ups-to-fight-amazon/

“Target Taps Former Wieden Exec as New Head of Creative” by Natalie Zmuda at Ad Age.  “Target has tapped Todd Waterbury, a longtime creative director at Wieden & Kennedy, as its senior VP-creative.  Mr. Waterbury, who will begin work Jan. 14, fills a role vacated by Liz Elert, VP-creative, last summer. He will be charged with leading the creative direction of the Target brand, working with the retailer’s agency partners and internal creative team. He will report directly to Jeff Jones, Target’s chief marketer. Mr. Waterbury plans to relocate to Minneapolis from New York.”  Read more:   https://adage.com/article/news/target-taps-head-creative/239092/

“Amazon’s Jeff Bezos Doesn’t Care About Profit Margins” by Brad Stone and Jim Aley in Bloomberg BusinessWeek.  “Amazon scares everyone. There are multiple reasons, but a big one was summarized by Amazon Chief Executive Officer Jeff Bezos in a Harvard Business Review interview posted lasted week, which ranked Bezos as one of the top executives in the world. “Percentage margins are not one of the things we are seeking to optimize,” Bezos said, employing some Wall Street jargon to make the counter-intuitive point that he does not particularly care about making money. “It’s the absolute dollar free cash flow per share that you want to maximize. If you can do that by lowering margins, we would do that. Free cash flow, that’s something investors can spend.”… Bezos is more concerned with driving cash flow than making money because he believes the opportunity offered by the Internet, and by e-commerce, is massive and still largely untapped. To him, it’s still a land grab. So he’s prepared to cut prices to the bone and add all those freebies to cultivate customer loyalty and drive sales growth. Then he reinvests it all in more low prices and further expansion, driving additional customer loyalty.”  Read more:  https://www.businessweek.com/articles/2013-01-08/amazons-jeff-bezos-doesnt-care-about-profit-margins

“Walmart Defies Consumer Electronics Recession” by Laura Heller at Forbes.  “Consumer Electronics are experiencing an uncharacteristic moment in the dog house as shoppers eschew hardware and entertainment devices, opting instead for mobile practicality. This trend is hitting retailers hard as the most popular products are easily obtained direct from manufacturers, service providers or less expensive online outlets. There is of course an exception — Walmart, it seems, is defying the CE recession.”  Read more: https://www.forbes.com/sites/lauraheller/2013/01/09/walmart-defies-ce-recession/

“Christmas 2012 shopping: paper catalogs whipped Facebook, Twitter, and Pinterest, and Amazon is the new Google” by John Koetsier at Venture Beat.   “I guess we’re just not as advanced as we think we are. Or, the more things change, the more they stay the same.  In last month’s Christmas shopping season, paper catalogs influenced more holiday shopping than Facebook, Twitter, Pinterest, and mobile advertising platforms. And that’s not just for bricks-and-mortar stores — that’s for online shopping too.  Flyers and catalogs influenced 22 percent of online purchases and just slightly less, 21 percent, of offline purchases, according to the 1000-participant study by Baynote, a customer experience solutions company. Facebook, meanwhile, influenced 15 percent of online purchases and 12 percent of offline, and Twitter and Pinterest were at the 10 percent levels for both, according to Baynote.  Read more: https://venturebeat.com/2013/01/08/christmas-2012-shopping-paper-catalogs-whipped-facebook-twitter-and-pinterest-and-amazon-is-the-new-google/#ZgHxyzMGyRIdP6pV.99

“Kroger Offers Specialized Cart in Michigan” by Michael Garry in Supermarket News.  “Kroger will offer Caroline’s Cart, a shopping cart designed to carry disabled children and adults, at a store here, its first to carry the cart, according to the Caroline’s Cart Facebook page.  “We have been working with Kroger for several months and they have been very supportive of Caroline’s Cart,” said the Facebook post. Caroline’s Cart was developed by Drew Ann Long, Alabaster, Ala., whose 12-year-old daughter, Caroline, has Rett syndrome, a neurodevelopment disorder.”  Read more: https://supermarketnews.com/consumer-trends/kroger-offers-specialized-cart-michigan

“Whole Foods hires new tech head” by Jan Buchholz at Austin Business Journal. “Jason Buechel has been named global vice president and chief information officer for Whole Foods Market Inc.  Formerly an executive and partner with Accenture Plc, Buechel will be responsible for all aspects of information technology at Whole Foods. He’ll conduct his duties at the Austin headquarters.”  Read more: https://www.bizjournals.com/austin/blog/retail/2013/01/whole-foods-market-hires-new-head-of.html 

“Holiday Season Ends on Positive Note for Retailers, According to ShopperTrak”.  “ShopperTrak estimates that during the holiday shopping season of November and December 2012, national retail sales increased 2.5% and foot traffic also increased 2.5% when compared to the same two months last year. ShopperTrak’s initial data indicates that shoppers spent $248.8 billion during this period. The U.S. Department of Commerce will release its December GAFO sales numbers in February.  The 2012 holiday season marked the third consecutive year with positive total retail sales. It also was the second holiday season of the past three with positive foot traffic changes.  “Our data indicates that more people visited more stores this holiday season than the previous year,” said ShopperTrak Founder Bill Martin. “Retailers who understood their foot traffic were able to staff, stock and market to best serve their customers, ultimately converting more of the browsers into buyers.”  Read more:  https://media.prnewswire.com/en/jsp/latest.jsp?resourceid=6103436&access=EH

“Walgreens to pay over $1 million penalty for overcharging customers” at KTVU-San Jose.  “The settlement, to affect 625 Walgreens stores in California, took place three years after a store customer in Santa Clara County told county officials that products at a Walgreens outlet cost more after they were scanned at cash registers, Donohoe said. “There was definitely a consumer complaint that got the ball rolling,” Donohoe said.”  Read more:  https://www.ktvu.com/news/news/crime-law/walgreens-pay-over-1-million-penalty-overcharging-/nTrjN/

“Walgreens Presents Growth Strategy at 2013 Annual Shareholders Meeting”.  “Reviewing a challenging but strategically important year for Walgreens, Chairman James A. Skinner, President and Chief Executive Officer Gregory D. Wasson and Executive Vice President, Chief Financial Officer and President, International Wade D. Miquelon today outlined how the company is positioned for growth in fiscal year 2013 at Walgreens Annual Shareholders Meeting…

To that end, Walgreens has continued to expand its product offerings, including:

• Expanded grocery items and fresh food in stores for on-the-go consumers with quick, convenient pickup, and a growing selection of healthy food choices that are important to underserved food desert communities.
• Substantial investment continues in private brands, including Walgreens, Delish, Nice! and many more that have led to a 2 percentage points increase in private brand penetration year-over-year to 22 percent.
• Enhanced beauty departments that now include an array of niche and prestige brands not found in traditional drugstores, including the introduction of Boots No7.
• And mobile device capabilities that have expanded in the past year to include prescription refills and transfers by scanning the pill bottle; QuickPrints, an application that enables users to print photos directly from their devices to any Walgreens store; and in-store maps that allow customers to use a digital shopping list to map and locate items in a store.
• Read more:  https://news.walgreens.com/article_display.cfm?article_id=5697

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