Archive for year: 2013

Highlights from Yesterday’s Walmart Investor Meeting:

“Walmart CEO Reports Substantial Progress on Key Strategies”  Acknowledging the challenging retail environment, Duke said: “We’re in a tough and unpredictable global economy. The competition is also tough. And the holidays are right around the corner — raising the stakes even further on serving customers and delivering on performance. All of this is to say that near-term execution is critical for us.”  Read more

“Bill Simon’s (Walmart CEO) Presentation”  PowerPoint presentation

“Rosalind Brewer’s (CEO Sam’s Club) Presentation”  PowerPoint presentation

“Neil Ashe’s (CEO eCommerce) Presentation”  PowerPoint presentation

“Wal-Mart to build out retail ecosystems with small stores” by Kim Souza at City Wire.  “The ecosystems involve building more Express Stores in rural areas that can be stocked directly from nearby supercenters that are tethered to the small stores. Also in the mix, are rural Neighborhood Markets that may be stocked with general merchandise on-demand from nearby supercenters and two-day shipments from Walmart.com.  Bill Simon said while Wal-Mart was building out supercenters in recent years, Dollar General and other convenience stores saturated rural America with some 11,000 stores.”  Read more

“Walmart Offers Free Shipping on Online Orders $50+ (if you can wait 6-9 days)”  Read more

“Walmart Expands Same-Day Grocery Delivery To Denver” by Derek Myers at Fayette Advocate.  “This move follows the company’s ongoing grocery delivery tests which have been taking place over the last couple of years in San Jose and San Francisco. The Denver area test is currently a closed beta, meaning customers will be allowed to trial the new service on a first-come, first served basis only.” Read more

“Grocery store ‘smart shelves’ will target consumers in real-time based on their facial features” at RT.  “The devices — still in development — will rely on high-tech sensors to snoop in on the facial features of shoppers and predict roughly their age and sex. From there, a database of intelligence can be matched in real-time and allow Mondelēz to make recommendations, offer discounts and practically any other imaginable option.”  Read more

“No Free Shots: How Walmart Responds to Social Media Haters” by Josh Sternberg at Digiday.  “Another lesson learned was that social operations needed to be divided into two teams: marketing and corporate-reputation management. The 20-person marketing team handles the main Walmart Twitter and Facebook accounts and uses them as a promotional vehicle. The other team, a gang of four, operates the seven other feeds and is in charge of non-store-related and issue-based mentions.”  Read more

“Rite-Aid’s Wellness 65+ Loyalty Program Draws 930,000 Sign-Ups in First 75 Days” by Natalie Zmuda at Ad Age.  “Until recently, retailers were prohibited from attaching rewards programs to government-paid prescriptions. But when that changed, Mr. Learish said the retailer saw an opportunity. Wellness65+ offers one point for every dollar spent on co-payments for prescriptions, in addition to in-depth consultations with local pharmacists. The first Wednesday of each month, members receive 20% off purchases and free health screenings.”  Read more

“Apple’s Secret Retail Weapon Is Already in Your Pocket” by Sam Grobart at Businessweek.  “It’s been a month since Apple unleashed iOS 7 onto the world, and while some of its flashier features have garnered a lot of attention, the most important part of iOS 7 is one you’ve probably never even heard of—even though, if you’ve upgraded, you already have it.”  Read more

“Kroger apologizes for RIP Matt Schaub tombstone display inside store” at KHOU Houston.  “Some shoppers were offended by the attack on the injured (Houston Texans) quarterback.  “This Kroger is located about five minutes from the neighborhood where Schaub and his family live. As if being terrorized at their own home isn’t enough, now the Schaubs can’t even go grocery shopping without seeing Matt’s name on a tombstone. Horrible,” wrote Candelario Perez Jr.”  Read more

Follow @retaileyeretail

“Walmart Shelves Cleared in Food Stamp Glitch” by Carolyn Roy at KSLA 12.  “Shelves in Walmart stores in Springhill and Mansfield, LA were reportedly cleared Saturday night, when the stores allowed purchases on EBT cards even though they were not showing limits.  The chaos that followed ultimately required intervention from local police, and left behind numerous carts filled to overflowing, apparently abandoned when the glitch-spurred shopping frenzy ended.”  See the Video / Read more

“Walmart customers riot when unable to use food stamp cards” by Kristen Reed at Clarion Ledger.  “People in 17 states found themselves unable to buy groceries with their food stamp debit-style cards Saturday after a routine check by vendor Xerox Corp. resulted in a system failure.  The mini riot, happened at the Walmart in Philadelphia, Miss. Shortly thereafter, managers decided to temporarily close the store.“For the safety of our customers we did make a management decision to close the store.”  Read more

“Target trains the bull’s-eye on showrooming” by Janet Moore at Star Tribune.  “Stephanie Bauman of Brooklyn Park was searching for grapeseed oil moisturizer last week when Mathison asked if she needed advice. The product wasn’t on the shelf, but Mathison whipped out her iPad to show Bauman where she could order it on Target.com. (The beauty concierges are brand-agnostic.)“I thought I’d have to go to Macy’s, and that it would be really expensive,” Bauman said, obviously pleased.”  Read more

“Here’s who wants to buy those Dominick’s supermarkets” by H.Lee Murphy at Crain’s.  “Cincinnati-based Kroger Inc. has indicated an interest in at least 15 Dominick’s locations…sources speaking on the condition of anonymity say that Roundy’s Inc. of Milwaukee, the owner of a dozen Mariano’s stores in metro Chicago — with another seven under construction — has expressed interest in 20 Dominick’s…Finally, sources say that the Jewel/Osco chain is hoping to land perhaps another 10.”  Read more

“Sadness about Dominick’s ripples through Chicago suburbs” by Dawn Rhodes at Chicago Tribune.  “Dominick’s shoppers throughout Chicago’s suburbs reacted with shock, anger and disappointment to the news that the supermarket giant would soon quit the area.  Losing Dominick’s, some said, marks the loss of something intrinsic and familiar, an end of an era for an institution with decades of history in the area.”  Read more

“Walmart Canada ‘Quietly’ Starts to Sell Food Online” by Marina Strauss at Globe & Mail.  “Wal-Mart, which already sells food online in the United States and beyond, is starting in Canada with non-perishable fare, but will look into expanding into fresh and frozen offerings, spokeswoman Susan Schutta said. “We are talking to our customers to understand what they need, beyond” non-refrigerated packaged goods, she said in an e-mail.”  Read more

“The Grocery Store May Be on Its Death Bed” by Brad Tuttle at Time.  “The need for the weekly 30-minute expedition browsing up and down the aisles of the supermarket is being eliminated. Instead, many shoppers are taking advantage of new services, in which they place an order online and hit a convenient pickup location to retrieve their groceries—often without ever having to leave the car.” Read more

“Sam’s Club bets new merchandise will make customers buy more” at Baltimore Sun via Reuters.  “We’ve been underwhelming our members,” Chief Executive Officer Rosalind Brewer said as she toured a new Sam’s Club in Romeoville, Illinois, last week. Some goods just have not been “on trend” enough, she said…The chain is adding 132 new general merchandise goods for the holiday season, up from 56 a year ago.”  Read more

“Walmart Changes Playbook, Buys NFL on Thanksgiving Day to Push Black Friday” by E.J. Schultz at Ad Age.  “As for why the retailer decided just this year to use the NFL on this year’s Thanksgiving, Mr. Quinn said: “I don’t know why we didn’t figure it out sooner.” The NFL is, after all, the primary TV event on the day before the Black Friday holiday-shopping frenzy — which for Walmart and other retailers now essentially begins Thanksgiving evening while the leftovers are still being packed away.”  Read more

Follow @retaileyeretail

“Target lays off 150 from its corporate staff in Twin Cities” by Steve Alexander at Star-Tribune.  “The move affected workers at the company’s tower headquarters in downtown Minneapolis, an office on Interstate 394 in the city and a campus in Brooklyn Park.Many retailers, including Target, have lowered their financial expectations for the rest of the year, citing a tougher-than-expected spending environment.”  Read more

“Costco Stands Behind Its Cheap Rotisserie Chicken Strategy” by Kyle Stock at Bloomberg.  “When analysts started piling on Costco in a conference call this morning, Chief Financial Officer Richard Galanti served up a bit of barnyard wisdom: He urged Wall Street to think of our “incredible, giant” rotisserie chickens.  The company sells 60 million of those birds every year, keeping the price at $4.99 despite surging costs for both poultry itself and chicken feed. “That’s us,” Galanti said of the stubbornly low prices. “That’s what we do.” In other words: Don’t freak out about this quarter—Costco sees itself playing the long game.”  Read more

“Costco’s Q4 Earnings Call Transcript”  Read it Here

“Costco plans for 36 new stores this year – enters Spain” by Jessica Wohl at Reuters via Globe & Mail.  “Costco has roughly 637 clubs now and said it plans to open 36 clubs this year, although some could be delayed. Eighteen openings are planned for the United States, seven in Asia and two will be in Spain, a new country for the company. Costco opened 26 clubs in fiscal 2013 and 16 in fiscal 2012.”  Read more

“Family Dollar Warns of Shutdown’s Impact” by Ely Portillo at Charlotte Observer.  “The shutdown is forcing states to freeze or cut back on many benefits going forward, such as the Special Supplemental Nutrition Program for Women, Infants and Children, which provides food aid.  “Over half of our customers are on some sort of government assistance,” Levine said. “When they read and hear about this uncertainty, it impacts their outlook.”  He said June was the best month of the quarter, but sales slowed as the summer progressed.” Read more

“Family Dollar’s Q4 Earnings Call Presentation”  Read the PowerPoint

“The Secrets of Bezos: How Amazon Became the Everything Store” by Brad Stone at Bloomberg.  “Within Amazon there’s a certain type of e-mail that elicits waves of panic. It usually originates with an annoyed customer who complains to the company’s founder and chief executive officer. Jeff Bezos has a public e-mail address, jeff@amazon.com. Not only does he read many customer complaints, he forwards them to the relevant Amazon employees, with a one-character addition: a question mark.”  Read more

“Costco & Whole Foods Private-Label Products Rank Highest with Consumers” at Food Product Design.  “In terms of which retailers’ store brands appear to have the greatest positive effect on loyalty to the store, Whole Foods Market got the highest score with 60% of buyers saying they are more likely to visit Whole Foods Market based on private-label products. Costco came in second with 57% of Kirkland buyers saying that the brand makes them more likely to shop at Costco.”  Read more

“J.C. Penney Scuttles Logo Introduced by Former CEO” by Natalie Zmuda at Ad Age.  “Scrapping the logo is just the latest attempt to roll back the former CEO’s initiatives. Since Mr. Johnson’s departure in April, the retailer has reintroduced popular brands like St. John’s Bay, layered in plenty of promotions and is now in the midst of dismantling Mr. Johnson’s vision for J.C. Penney’s home stores.”  Read more

“Killer Holiday Shopping Tips From the King of Bargains” by Brad Tuttle at Time.  “Frankly, though, were I to nominate a few charter members of the discount Hall of Shame, it would be outlet mall stores – especially those of department store brands. They’re not exactly artificially inflating prices, but these retailers try every legal loophole to muddy what true great value might be.”  Read more

“Coca-Cola vending machine prices adjust with outdoor temperatures” at ajc.com.  “For temperatures above 86 degrees, the cost was $1.20; at 84 degrees the price climbed to $1.70; and below 84 degrees the price was $2.40.  “The machines were designed specifically to increase trial.”  Read more

Follow @retaileyeretail

“Two-Thirds of $150K+ Households Shop at Dollar Stores”  “Dollar stores are popping up all over the US, but it’s not just discount shoppers taking advantage of these discount prices. According to new research from Mintel, just under one-third (32%) of respondents from the highest-income households ($150k+) claim not to shop at dollar stores, and half (50%) in this income group say that they are shopping at dollar stores the same amount this year compared to last year.”  Read more

“The Home Depot Presents 2013 Innovation Awards”  “Home Depot today announced that Cree won the retailer’s 2013 Innovation Award for its LED light bulb. The annual award recognizes the most revolutionary new products that provide true benefits to consumers and the companies that exceeded expectations in sales, service and program execution. Mohawk Soft Spring Carpet received first runner-up honors for Soft Spring Carpet, and Plantation Patterns Patio won second runner-up honors for its Create Your Own Collection patio furniture.”  See the Top Ten Winners

“How Angry Walmart Workers Helped Convince Foreign Investors To Dump Shares” by Clare O’ Connor at Forbes.  “When Sweden’s largest state-backed pension funds divested their holdings in Walmart last week, it was a move six years in the making — and one that followed lobbying efforts by Walmart’s own workers.”  Read more

“Groceries Are Cleaning Up in Store-Brand Aisles” by Stephanie Strom at NY  Times.  “Over the last three years, sales of store brands grew 18.2 percent, accounting for $111 billion in sales, according to Nielsen. That is more than twice the rate of growth for national brands — 7.9 percent to $529 billion — over the same period.”  Read more

“Best Buy and Ace Hardware Weigh-In on Dynamic Pricing” by Andrew Nusca at ZD Net.  “Within the last two years, Ace has been working to implement a pricing demand system with IBM. Because the company is not competing to be the lowest-priced retailer around, and emphasizes relationships above all, Ace is focusing on the rules aspect more than any other, Voelker said.  “The usual optimization is to use math and science to maximize profit,” he said. “With our model, I have 3,500 bosses—the independent store owners. They all have final say and control for the final prices in our stores.”  Read more

“CEOs from Home Depot & Whole Foods to Speak at Austin Summit” by Jan Buchholz at Austin Business Journal.  “The Conscious Capitalism CEO Summit is designed for CEOs who conduct their business in a different way from the norm, to meet and share with peers in an intimate setting,” Rauch said.  The program begins Tuesday morning and ends at noon Oct. 10. About 200 CEOs are expected, each paying about $4,000 each to attend.”  Read more

“Aldi supermarket tycoons top German rich list” at ABC News.  “At the top of the list…Aldi co-founder Karl Albrecht, who is 93 and lives out of the public eye, had an estimated fortune of 17.8 billion euros, making him “the longest reigning richest person of any country”, said the magazine.  Forbes magazine’s rich list puts him at number 18 worldwide.  At second place…with 16 billion euros were the families of Theo Albrecht Jnr and his late brother Berthold, co-owners of the separate company Aldi Nord, which also owns Trader Joe’s in the United States.”  Read more

“Walgreens rolls out financial services card in 3 markets” at Chicago Tribune.  “The prepaid MasterCard, which can be reloaded at any of more than 8,100 Walgreens or Duane Reade stores, offers an alternative to cash for those with limited access to traditional checking accounts or credit cards. It also will allow no-fee ATM withdrawals and check-cashing services.”  Read more

“Donning Disguises with the CEO of Texas Roadhouse” by Ryan Bradley at CNN Money.  “The CEO likes to take a dirty old T-shirt with him on the road. He also carries false teeth and a sweat-stained hunting hat, and lots of cash. He tips well, even though, when he’s wearing the shirt and the hat and the hillbilly dentures, he’s been asked if he can afford the restaurant he’s sitting in — which is usually one of his own.”  Read more

Follow @retaileyeretail