“Walmart ‘Pickup Grocery’ site preps for grand opening” by Kim Souza at The City Wire. “The retailer has named the test format Walmart Pickup Grocery…amid a flurry of activity as the 15,000 square-foot grocery center is being stocked with 10,000 fresh and dry grocery products – everything from cereal, chips and bread to fresh produce, meat and milk. Wal-Mart told The City Wire that several tests will be conducted before the online grocery service opens to the public early this fall. Walmart declined to provide a specific date or share who will be allowed to test the service.” Read more / See the pic

 

“Wal-Mart Looks Online for Chinese Growth” by Shelly Banjo & Laurie Burkitt at WSJ. “”We’ve taken a long-term view of China,” said Neil Ashe, Wal-Mart’s head of global e-commerce, in an interview. “It’s an awfully big market—it doesn’t have to be number one to be a good business.” Read more

 

Hollywood Reporter: “Annie-Inspired Target Collection Coming this Fall” by Stephanie Chan. “The 25-piece range, with all items priced under $30, includes Annie’s signature red frock and a heart-shaped locket, as well as pieces featuring elements of patchwork, pins, buttons and tulle, and a DIY kit. The collection is available starting Nov. 16.” Read more

 

“Lowe’s to pay $1.6 million in settlement for mislabeled lumber dimensions” by Scott Morris at Bay City News. “They alleged that Lowe’s sold structural dimension building products that described product dimensions that were not the actual dimensions — incorrectly advertising the length, width, depth or thickness of building materials. In some cases, the inaccurate labeling was because of inaccurate dimensions provided by the manufacturers or other suppliers, according to Marin County prosecutors.” Read more

 

“Google Building Fleet of Drones to Bypass Earthbound Traffic” by Michael Liedtke at AP via SF Gate. “Although Google expects it to take several more years before its fleet of drones is fully operational, the company says test flights in Australia delivered a first aid kit, candy bars, dog treats and water to two farmers after traveling a distance of roughly one kilometer, or just over a half mile.” Read more

 

***A message from Relax Sacks – Get Ready For the Most Comfortable Chair On the Planet! Consumers love the comfort of our ‘big and fun’ bean bag chairs (up to 7.5 feet in size!).  Incredibly soft micro-suede covers and uniquely comfortable shredded foam filling make the Relax Sacks experience one your customers won’t want to miss!  Great for living rooms, basements, kids rooms, dorm rooms, etc.  Bring some fun and excitement to your stores and drive impulse sales in the process. www.relaxsacks.com.  Email info@shiftmarketinggroup.net for more information.

 

“Is Dollar General really committed to acquiring Family Dollar?” by Jennifer Thomas at Charlotte Bus. Journal. “What hasn’t happened, though, is a new offer from Dollar General or a letter addressing Family Dollar’s concerns to jump-start talks between the dollar-store rivals. “Dollar General has got to make the next move,” says Brian Yarbrough, an equity analyst with Edward Jones.” Read more

 

“Tacoma Walmart developer sues individual council members for $1.8 million” by Kathleen Cooper at News Tribune. “In addition to the city itself, the lawsuit names individual city council members and 20 unidentified city employees as defendants.” Read more

 

Germany: Retail Sales Fell 1.4% in July by Emese Bartha at WSJ. “The economic expectations suffered the greatest slump since 1980, GfK said. The group added, however, that this hasn’t had much of an impact on the propensity to spend.” Read more

 

“Screen-obsessed Teens Threaten Apparel Retailers” at NY Times via CNBC. “It’s definitely more exciting for a lot of teenagers to have a new phone that can do lots of cool stuff than clothing,” said Nicole Myers, 19, a model in New York who emerged from an Apple store on Monday with a new iPhone that cost about $200. “A phone keeps you much more entertained. It’s a better distraction than clothing.” Read more

 

“Home Depot go-to guy with cerebral palsy celebrates 20 years” by Philip Morgan at Tampa Bay Times. “He has had a lot of experience: Last Friday marked his 20th anniversary as an employee of the Carrollwood Home Depot. “I’ve only been at this store for two months,” manager Jim Burgett said, “and sometimes I’ve got to rely on him to show me where something’s at.” See the video / Read more

 

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About Eye-on-Retail

Eye-on-Retail is a daily tipsheet read by thousands of Retail Merchants/Executives every weekday morning. Eye-on-Retail is unique because it’s timely, smart and fun. It’s created bright and early every morning and delivered between 7-8 am CT. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s really happening in the world of retail. Contact us at info@shiftmarketinggroup.net.

 

“Target & Nordstrom make Instagram shoppable” by Krystina Gustafson at CNBC. “Target and Nordstrom are teaming up with Curalate, a visual marketing and analytics firm, to launch Like2Buy, a platform that seamlessly allows Instagram users to make purchases when they see an item they like on their feeds.” Read more

 

“Soggy start: Burning Man crews stuck at Wal-Mart” by Scott Sonner at The Tribune (Reno, NV). “Turned back at the gate to the Black Rock Desert after rare showers on Monday turned the ancient lake bottom to a muddy quagmire, hundreds of “Burners” were forced to overnight on the Wal-Mart blacktop.” Read more

 

“Amazon.com brings same-day delivery to Atlanta” at Atlanta Bus. Chronicle. “The online retail giant on Tuesday began offering its Same-Day Delivery service in Atlanta, Alpharetta, Kennesaw, Marietta, and Mableton. Customers must select the new “Get It Today” search filter. They can order as late as 12 p.m., seven days a week, and get popular items delivered to their home in hours.” Read more

 

“Walmart’s e-com CEO Neil Ashe to Present at GeekWire Summit” by John Cook at GeekWire. ” Our biggest event of the year — The GeekWire Summit — is just over a month away, coming up on Oct. 2 at the Westin in downtown Seattle…lineup that already includes Zulily co-founder Mark Vadon; Walmart e-commerce CEO Neil Ashe; and veteran journalists Walt Mossberg and Kara Swisher.” Read more

 

“Kroger could be aiming for another acquisition” by Steve Watkins at Cincinnati Bus. Courier. “Kroger is rumored to be a potential bidder for Market Basket, a 71-store chain based in Tewksbury, Mass.” Read more

 

 ***A message from Dig It Handwear. Garden glove protection for manicured female hands! Plan now for Spring 2015. Patented line of high-quality gardening gloves provides unique “pillow-top” protection for female gardeners.  Nationally distributed in Canada and now being offered to US Retailers for the first time. View the line at www.digithandwear.com.  Peggable gloves merchandise easily– see the off-shelf display. Contact info@shiftmarketinggroup.net to get started.

 

“Food 4 Less averts strike by reaching tentative deal with SoCal union” by Shan Li at LA Times. “Food 4 Less, owned by Kroger Co., was the last grocery chain in Southern California to reach a deal on a new contract. The previous one expired June 8. The agreement covers more than 6,000 grocery workers at 100 Food 4 Less stores in the Southland. They are scheduled vote Sept. 2 on whether to approve the contract.” Read more

 

“Michaels shares rally after profit, sales beat expectations” by Tomi Kilgore at MarketWatch. “Sales rose 4.9% from last year to $948 million, while same-store sales increased 3.2%, topping analyst forecasts of $943 million and a 2.5% rise, respectively.” Read more

 

“EEOC Sues Costco for Sex Discrimination” at National Law Review. “John Rowe, the EEOC district director in Chicago, said that the agency’s administrative investigation revealed that the employee repeatedly complained to her managers at the Glenview, Ill., Costco where she worked about being pursued, approached, and confronted in the Costco by the man.” Read more

 

“One-Hour Grocery Delivery Service Instacart Comes to Portland” at MarketWatch. “Customers in Portland can order groceries from Whole Foods Market, Costco and Uwajimaya Asian Market stores and have them delivered in as little as one hour. Customers do not need to be a Costco member to order from Costco on Instacart.” Read the release

 

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About Eye-on-Retail

Eye-on-Retail is a daily tipsheet read by thousands of Retail Merchants/Executives every weekday morning. Eye-on-Retail is unique because it’s timely, smart and fun. It’s created bright and early every morning and delivered between 7-8 am CT. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s really happening in the world of retail.

 

 

 

“Amazon at odds with Germany over strong union tradition” by Jay Greene at Seattle Times. “As the protesting workers grill bratwurst and listen to a guitarist playing union songs, the rants aren’t the hot-button issues that often fuel strikes in the United States…Sure, the workers here want better pay and job security for zipping off boxes of books, shirts, razors and more to customers. But often, the first complaint these Amazon strikers raise is simply that the company doesn’t respect their rights as Germans to form a union and engage in collective bargaining.” Read more

 

“Sneak peek inside the new South Bend, Indiana Costco” by Heidi Prescott at South Bend Tribune. “Projects this size usually take 180 days or longer…But Costco is going up in 120 days, or 110 days if you only count the actual construction process after the foundation was poured.This week, Cullivan gave The Tribune the first tour of the site and a peek inside the store. He offered a behind-the-scenes glimpse of a process not many have the chance to see.” See the video / Read more

 

“Lowe’s Strikes $9.5M Deal In HR Managers’ OT Class Action” by Micheal Lipkin at Law 360 (Subscription required). “Lowe’s Home Centers Inc. on Friday agreed to pay $9.5 million to end human resources managers’ class action allegations that they were not actually managers and that Lowe’s misclassified them as exempt from overtime pay requirements.” Read more

 

WSJ: “The Next Big Question For Home Depot: What Happens To The Frank Blake Bobblehead?” by Shelly Banjo. “One question that will need to be answered is whether his Bobblehead, usually priced at $9.95, will go on sale, or whether its price will surge as it becomes a collector’s item…the retailer began making Bobbleheads of its top executives in 2007 and sells them at its corporate headquarters and online at prices ranging from $4.95 (for CFO Carol Tome) to $14.95 (for Home Depot’s mascot, Homer)…Mr. Blake is known to autograph his figurine’s head for employees.” Read more

 

***A message from Juicebar JamBar. A refreshing burst of audio and power that lets consumers entertain on the go and recharge their smartphone at the same time!  Just plug the device directly into the built in 3.5mm audio prong and amplify your favorite music, videos and other media and boost talk time up to 16 hours.  The Juicebar Jambar is the perfect combination of both fun and refreshment for smartphones.  Compatible with virtually any USB device and ready for use right out of the box.   See the sell sheet.  See the video. www.juicebarchargers.com

 

Costco CFO Richard Galanti: “We’re never going to be the one to deliver a quarter of milk and a box of fruity pebbles before 7 a.m. on Monday for your kids that you ordered at 10 p.m. the night before.” by Rachel Lerman at Puget Sound Bus. Journal.  Read more

 

“Walmart-controlled Yhd has become China’s first e-commerce firm licensed to operate online drugstores” by Doug Young at South China Morning Post. “What’s probably most significant is the fact that a very small player like Yhd beat out all the big companies to receive the first license, which probably owed at least partly to its Wal-Mart connections.” Read more

 

“Amazon Prepares to Challenge Google in Online Advertising” by Rolfe Winkler & Greg Bensinger at WSJ. “Initially, Amazon plans to replace those ads on its pages that Google chiefly supplies with a new in-house ad placement platform, said people familiar with the matter. In the future, that system could challenge Google’s $50 billion-a-year advertising business.” Read more

 

“More than 1,000 businesses affected by same malware as Target” by Salvador Rodriguez at  LA Times. “There’s a lot of retailers out there that have been compromised by this and they simply don’t know it yet,” Westin said, explaining that many businesses don’t have the tools in place to monitor for these kinds of attacks.” Read more

 

“How Thumbtack Plans To Be Your One-Stop Local Services Shop For Plumbers, Chefs And Belly Dancers” by Ryan Mac at Forbes. “Thumbtack is more of a marketplace, like HomeAdvisor and Redbeacon, but has a far wider variety of services than all of them. And on Thumbtack the providers bid on you…Thumbtack’s software distributes your request to relevant and nearby pros, who then respond with a price and description of their services.” Read more

 

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About Eye-on-Retail

Eye-on-Retail is a daily tipsheet read by thousands of Retail Merchants/Executives every weekday morning. Eye-on-Retail is unique because it’s timely, smart and fun. It’s created bright and early every morning and delivered between 7-8 am CT. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s really happening in the world of retail. Contact us at info@shiftmarketinggroup.net.

 

“Family Dollar CEO Said to Guard Job” by Shelly Banjo at WSJ.  “Dollar General said the chief executive of Family Dollar Stores, Howard Levine, shrugged off multiple requests to pursue a merger between the country’s two largest dollar chains out of fear he would have to step down as CEO, according to a letter sent to Family Dollar’s board of directors late Wednesday.” Read more

 

WSJ: “Shopper Malaise Hangs Over Target” by Paul Ziobro & Anna Prior. “Target posted a 62% drop in earnings for the fiscal second quarter ended Aug. 2, as losses in Canada continued and margins shrank because of heavy discounting. The price cuts didn’t entirely work. Target rang up 1.3% fewer transactions at U.S. stores open more than 13 months, its seventh straight quarter of falling traffic.” Read more

 

“Target sees signs of progress, but cuts outlook for year” by Kavita Kumar at Star-Tribune. “You see this sometimes when new CEOs come in: companies lower the bar,” said Brian Yarbrough, an analyst with Edward Jones. “It gives them a better opportunity to beat numbers and to gain Wall Street’s confidence.” Read more

 

“Home Depot’s CEO Will Never Make My ‘Worst’ List” by Herb Greenberg at Real Money via Dallas News.  “I mentioned to Blake that I was impressed as I shopped his stores throughout Southern California, the Chicago area and Connecticut…He: “You’ve only been in the ones that worked.” Me: “Ones that worked?” He: Yep. It’s up to the store manager, and we usually promote an assistant manager to store manager, and they don’t always have what it takes. But you don’t know that until they get the job.” That floored me, because rather than just acting like it was a big success, he was acknowledging how hit-and-miss it can be and how hard, in practice, it really is.” Read more

 

Australia: Meet Costco Mum at Herald-Sun. “The Canberra mum runs the “Costco Mum” Facebook page, which offers price and deal advice to the 8600 people who like her page…Mrs. Romano started the page to try to get discussion going about deals and experiences, and soon the page took off. “They’re all American brands so you don’t always know what you’re buying, so I thought it would be a good idea to have a page where I could do product reviews,” Mrs Romano said.” Read more

 

***A message from Relax Sacks – Get Ready for the Most Comfortable Chair on the Planet!  Consumers love the comfort of our ‘big and fun’ bean bag chairs (up to 7.5 feet in size!).  Incredibly soft micro-suede covers and uniquely comfortable shredded foam filling make the Relax Sacks experience one your customers won’t want to miss!  Great for living rooms, basements, kids rooms, dorm rooms, etc.  Bring some fun and excitement to your stores and drive impulse sales in the process. www.relaxsacks.com.  Email info@shiftmarketinggroup.net for more information.

 

“Sears Reports Q2 Net Loss of $573 Mil” “Sears Full-line stores experienced comparable store sales growth of 0.1% for the quarter as compared to a decline of 0.8% in the second quarter of last year.” Read the release

 

“Sacramento’s epic environmental battle – plastic bags” by Jessica Calefati at San Jose Mercury News. “Lobbyists have launched a frenzied eleventh-hour effort to kill a bill that would make California the first state to outlaw flimsy plastic grocery bags…”This bill is not about helping the environment,” Daniels said. “It’s a cash grab for grocers who will get to keep all the money they make when they start charging customers for so-called reusable bags.” Read more

 

“Home Depot launches “Smart Home” partnership in Canada” by Brian Platt at The Star.  “At a “Smart Open House” on Tuesday, Home Depot representatives demonstrated a line of products ranging from light switches, blinds, thermostats, security cameras and door locks that all interface with an app called Wink.” Read more

 

Target Q2 Earnings Call Highlights

Kathee Tesija

Q2 comparable sales (US) were strongest in hard lines driven by both toys and electronics… also positive in our less discretionary food, health and beauty categories, while they were down slightly in apparel and down low single-digit in home.

U.S. comparable transactions were down 1.3% completely offset by an increase in the average basket.

We are pleased that the U.S. traffic trend improved a full percentage point compared with the first quarter.

Second quarter digital sales increased more than 30% over last year…reflects a nearly 50% increase in visits to our mobile website.

TargetExpress: We plan to expand our test of this new format to several additional locations outside the Twin Cities next year.

Store pickup: About one-fifth of guests engaged in additional shopping in-store when they picked up their online purchases.

About 14% of our digital sales today are being picked up in-store.

Subscription orders account for more than 15% of digital sales.

We are exploring gifting subscriptions, which would allow guests to register for subscriptions that are easy for gift givers to fulfill.

This fall when we rollout standard ship from store capabilities to 35 additional markets, we will be within 1 to 2-day ground transit of 91% of the U.S. population.

Of the 70,000 items in a typical Canadian Target store, about 30,000 items will be new between now and the holiday season.

In Canada, on September 7, we will be launching two new lines of cleaning products, Better Life, an all-natural line of cleaning products designed by two fathers with charismatic packaging.

 

John Mulligan

We are working to moderate our promotional intensity to a level we believe is more appropriate in the long run.

In the U.S., second quarter sales penetration on REDcards was 28.8%, up more than two percentage points over last year.

REDcard penetration in Canada was 4.8% in the second quarter, more than double last year’s 2.3%

This quarter the Canadian comp was down more than 11%.

We are currently forecasting U.S. comparable sales will be flat to up 1% this quarter.

We are encouraged by the positive comps we have seen so far in August.

 

Brian Cornell

I am impressed with the progress that John and the team made in the last three months, including a strategy review that is the most comprehensive effort I have seen in my career.

I want to be a good student of the business, but clearly we have to have a sense of urgency here and a sense of pace.

 

Read the transcript

 

Lowe’s Q2 Earnings Call Highlights

Robert Niblock

Comparable sales were 4.4% with an increase in comp transactions of 3.1% and an increase in comp average ticket of 1.3%.

With regard to the rumors on Brazil, obviously we don’t comment on specific rumors of a nature like that.

Outdoor product sales were strong with a roughly 6.5% comp for the quarter while indoor comps were roughly 3%.

All 14 regions had positive comps for the quarter; likewise, all 12 product categories had positive comps.

Saw particular strength in lawn and garden during the quarter.

Strength in millwork, paint and tools and hardware which were all above the Company average.

Solid performance in line with the Company average in fashion fixtures, flooring and lumber and building materials.

ProServices business outperformed the Company average during the quarter.

Canada delivered double-digit comps in local currency for the fifth consecutive quarter.

We’ve got some key things we’re working on from a website standpoint to improve the functionality of our website that will be delivered in the next 12 months.

Appliances: obviously something that was a little bit of a challenge in the second quarter.

A couple of parts of flooring were a little weak in the quarter.

 

Rick Damron

Patio and outdoor products topped their solid first-quarter results generating double-digit positive comps.

Introduced Valspar Reserve exterior and interior paints at the end of the first quarter to appeal to both DIY and pro customers and our sales to both customers have exceeded our expectations.

www.lowesforpros.com is currently being tested with a select group of pro customers.

In Q2, our pro applications grew 23% over last year so we continue to see the pros respond very well to the initiatives that we’ve got in place.

Flexible fulfillment allows us the capability to ship from 54 of our stores as well as all of our distribution hubs and nodes direct to consumer.

Interior project specialist: We rolled it to another 582 stores. We are looking at our rollout campaign into 2016.

 

Bob Hull

Monthly comps were 4.7% in May, 4.6% in June and 3.7% in July.

 

Mike Jones

Flooring: we see very good performance in tile. We see very good performance in carpet. We see a little pressure in wood.

Pros: We expanded our lineup of Lenox and Irwin. Certainly our Bosch brand continues to do well, DeWalt does very well.

 

Read the transcript

 

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About Eye-on-Retail

Eye-on-Retail is a daily tipsheet read by thousands of Retail Merchants/Executives every weekday morning. Eye-on-Retail is unique because it’s timely, smart and fun. It’s created bright and early every morning and delivered between 7-8 am CT. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s really happening in the world of retail. Contact us at info@shiftmarketinggroup.net.