Thursday Tipsheet: Wmart Closes Loophole | Target & Lowe’s Call Highlights | Ugly Sweaters

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“Wal-Mart closes loophole on PlayStation 4 scam” “We’ve updated our policy to clarify that we will match prices from Walmart.com and 30 major online retailers, but we won’t honor prices from marketplace vendors, third-party sellers, auction sites or sites requiring memberships.” Read the release

 

“Nearly a year after breach, Target has its turnaround moment” by Kavita Kumar at Star-Tribune. “It feels like they’re getting back to what drove them in the ’90s and what has differentiated them from Wal-Mart and Amazon,” (Brian) Yarbrough said…“They are getting their mojo back,” (Jason Long) said. “It’s a big deal going into the holidays, and great news for Cornell.” Read more

 

“Family Dollar postpones shareholder vote on $8.5B Dollar Tree merger” by Jennifer Thomas at Charlotte Bus. Journal. “Family Dollar Stores Inc. has delayed a scheduled shareholder vote on its proposed $8.5 billion merger with Dollar Tree Inc. until Dec. 23.
The Matthews-based discount retailer initially planned to hold a special meeting for that vote on Dec. 11.” Read more

 

“Amazon robots prepare for Christmas” by Greg Bensinger at MarketWatch via WSJ. “The Seattle online retailer has outfitted several U.S. warehouses with squat, orange, wheeled robots that move stocked shelves to workers, instead of having employees seek items amid long aisles of merchandise, according to people familiar with the matter.” Read more

 

“Shoppers skeptical of Black Friday deals” by Krystina Gustafson at CNBC. “A separate report by America’s Research Group, released Wednesday, came to a similar conclusion. It found that 60.5 percent consumers who are not planning to shop on Black Friday may change their mind if the Thanksgiving Day newspaper inserts grab their attention. That compares with only 17.6 percent who said so last year.” Read more

 

“Walmart Wants to Be the Next Ad-Tech Star” by Lauren Johnson at AdWeek. “Within the past year, Walmart Labs has hired 1,000 workers, employing a total of 3,500 people, and has acquired 14 startups. While notable mobile, social and e-commerce tools have made Walmart the poster child of the innovation lab craze, the company’s goal of becoming a tech company on par with Facebook and Google is perhaps most interesting.” Read more

 

“Here’s who’s really winning Canada’s grocery wars” by Jamie Sturgeon at Global News. “Although Walmart has gained considerable share through its accelerating Supercentre rollout, Costco’s share gains have been even more pronounced,” analysts at financial services firm Raymond James said in a recent research note.” Read more

 

“Australian woman is first (only) in line at new Costco (she even got to sleep inside)” by Matt Gilbertson at Herald Sun. “Kelly was so keen to be first through the door that she camped out overnight, desperate to be the first customer. She was the only one who camped out. All she needed to buy was alfoil. Yes, really. The lovely Costco people even let Kelly sleep inside overnight for safety reasons.” Read more

 

“Walmart’s Weatherman” by Alison Griswold at Slate. “(Lucas) McDonald, who joined Walmart seven years ago after starting his career as a TV weatherman, said he often gets requests for an advance forecast, and tries to help managers understand “how accurate it may or may not be.” These days, he thinks the sector is getting hot: He’s seeing more and more TV meteorologists making the switch to the commercial sector.” Read more

 

“It’s official: Costco coming to south San Jose” by Nathan Donato-Weinstein at Silicon Valley Bus. Journal. “Costco is here tonight. They are anxiously awaiting your approvals tonight,” said Gerry De Young, president of Ruth and Going Inc., a consultant for Cupertino-based development firm Hunter/Storm LLC. “They are anxious to move forward.” Read more

 

“The Big Business of Ugly Christmas Sweaters” by Caroline Winter at Bloomberg. “I’ve never seen a product or category blow up like this,” says Meri Barnes, product and business developer for Michael Gerald, the company behind the kit. “Last year we sold more than 35,000.” This year, she expects that number to rise to 400,000.” Read more

 

“Cops: 350-Pound Thief In Motorized Scooter Caught Sitting On Stolen Walmart Steaks” at The Smoking Gun. “A 350-pound Walmart shopper was arrested yesterday after he was found sitting atop five stolen rib eye steaks in the seat of a motorized scooter that he was riding around the South Carolina store.” Read more

 

 

Highlights from Target’s Q3 Earnings Call

 

Brian Cornell

US segments saw positive comps in all three months of the quarter.

US traffic still declined slightly in the third quarter – performance was more than a full percentage point stronger than traffic trends through the first half of the year.

Increasing our focus on signature categories we can and should be known for. Categories like baby, kids, wellness and style.

It does not mean we are abandoning our other categories. But we will have different expectation for those categories compared to the ones in which we are investing to outperform.

Let’s drop back and make sure we clarify our point on the food category. We have no intentions today to streamline those categories. (Q&A)

In the past we have taken some initial steps to localize our store environment and assortment. But we have only scratched the surface to this opportunity.

This year we have developed and rolled out a new personalization engine which is currently generating product recommendations for guests on our digital platforms.

35,000 new items in stores for the holiday.

 

Comp Sales

Average ticket increased 1.6% in the third quarter driven by growth in average retail per item, partially offset by a decline in items per basket.

Q3 comparable sales performance was strongest in healthcare and beauty led by beauty which continues to benefit from this year’s store fixture innovations, and the introduction of new brands.

Third quarter comp sales in grocery were up in the low single digits

Hard lines (were) up slightly led by toys which saw a high single digit increase on strength in licenses like Frozen and Teenage Mutant Ninja Turtles.

Comp sales in apparel were down slightly as strength in baby and kids was offset by softness in jewelry accessories and intimates.

From a mixed perspective it’s worth noting that our combined home or combined comp in home and apparel was the strongest we have seen in two years.

In October and early November, we completed the rollout of our new apparel fixtures and layout to an additional 600 stores bringing the total to about 650 locations featuring this enhanced presentation.

 

Digital

Digital sales were up more than 30% in the third quarter.

So far this year store pickup orders have averaged about 15% of digital traffic with more than 80% of orders ready within an hour.

With the (ship-from-store) rollout we are now shipping about 60,000 eligible products from 136 stores in 38 markets covering more than 90% of the US population.

Cartwheel, Target’s industry leading savings app:  from November 2nd to December 24th, it will feature 50% off, a different toy everyday.

 

Other

Disney’s Frozen has been huge for us all year…600 Frozen products, 60 exclusive to Target across 20 categories.

In March 2015 Target is adding S.W. Basics of Brooklyn and Nuxe to its lineup of premium skincare products.

The (holiday ad) campaign will include broadcast, radio, out of home and catalogues and we are increasing digital media support by 50% over last year.

US REDcard penetration was 21% in the third quarter, up about 110 basis points from last year

 

Read the transcript via Seeking Alpha

 

 

Highlights from Lowe’s Q3 Earnings Call

 

Comp Sales

Comparable sales were 5.1% driven by an increase in comp average ticket of 3.4% and an increase in comp transactions of 1.7%.

The monthly comps were 3.5% in August, 5.2% in September, and 6.6% in October.

We had positive comps in all 12 product categories with particular strength in fashion fixtures, kitchen and appliances, millwork, and outdoor power equipment.

All 14 regions had positive comps.

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

Outdoor power equipment category experienced the strongest growth in the quarter with double-digit comps.

Our pro comps outpaced the company average for the 13th consecutive quarter.

 

Michael Jones Brand Mentions

Husqvarna, John Deere, Troybilt, Cobalt,  Osram Sylvania LED bulbs, Pilot brand InstaBoost jumpstarter, Kohler Pure Fresh, Bosch, Whirlpool, GE, Electrolux, Henry Coating (“Since adding the Henry brand, we have measured double-digit comp sales of roof repair and driveway sealer products in the markets where this relevant brand was added to our store”).

 

Q&A

It was primarily appliance & big ticket categories doing better in the quarter. (Hull)

We also think that brands are important, particularly with our pro initiative, so that is a focal point the team has been working on to ensure that we have the right brands waiting in the store to resonate with the pro customer. (Niblock)

(Orchard Supply) added nothing to comps for the quarter. If we think about the size of the business, technically it was only in the comp base for two months, so really with or without Orchard, the comp number would not have changed. (Niblock)

The average pro spend is probably in the $2,000 range.  (Hull)

Yes, it does feel like we’ve got opportunity to continue to gain market share. (Niblock)

Think about 400 line reviews and the average line review had four clusters. There’s no way we got 1,600 clusters right, so there’s an opportunity to go back and refine the approach, dig into the demographics, the customer data, the performance to continue to refine the stats. (Hull)

On Tool Rental for Pro: It’s something we may look at doing in a better way in the future, but as of today we’ve not made any decisions regarding tool rental. (Niblock)

 

Read the transcript via Seeking Alpha

 

 

***

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 early AM every weekday and delivered between 7-8 am CST. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s happening in the world of retail. Contact us @ info@shiftmarketinggroup.net.

 

 

 

Wednesday Tipsheet: Lowe’s +5.1% | Wmart Scammed | D.Gen Ax 4K? | H.Depot Call Highlights

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“Lowe’s Q3 Comp Sales +5.1%” “Sales for the third quarter increased 5.6 percent to $13.7 billion from $13.0 billion in the third quarter of 2013…For the nine month period, sales were$43.7 billion, a 4.6 percent increase over the same period a year ago, and comparable sales increased 3.5 percent” Read the release

 

“Lowe’s earnings, revenue top expectations” by Terri Cullen at CNBC. “The company posted third-quarter earnings of 59 cents per share, up from 47 cents a share in the year-earlier period, on revenue of $13.70 billion. Analysts had expected the company to report earnings of 58 cents a share on $13.55 billion in revenue, according to a consensus estimate from Thomson Reuters.” Read more

 

“Dick’s Q3 Comp Sales +1.1%” “eCommerce penetration for the third quarter of 2014 was 7.3% of total sales, compared to 6.5% in the third quarter last year. In the third quarter, the Company opened 24 new DICK’S Sporting Goods stores, one new Golf Galaxy store and seven new Field & Stream stores.” Read the release

 

“Dick’s Sporting Goods says golf, hunting continue to drag down profits” by Teresa F. Lindeman at Pittsburgh Post-Gazette. “Dick’s said growing demand for women’s and youth sports clothing have rewarded the retailer’s decision earlier this year to shift thousands of square feet of sales space at its stores around the country away from declining sports like golf and toward expanded offerings in those areas.” Read more

 

“Dollar General may have to ax more than 4K stores” by Josh Kosman & James Covert at NY Post. “The Federal Trade Commission may require the country’s No. 1 dollar store chain to divest more than 4,000 stores to win approval of its stalled $9.1 billion merger proposal, two sources close to the situation said Tuesday.” Read more

 

“Wal-Mart scammed into selling PlayStation 4 for $90” by Sarah Whitten at CNBC. “Customers have misused Wal-Mart’s price-match promotion to obtain $400 PlayStation 4 consoles for less than a quarter of the retail price using third-party sellers on Amazon.” Read more

 

It’s official: “Walmart Canada lays off 210 head office, field management employees” at Financial Post. “The retail giant handed out the pink slips earlier Tuesday, with both management and non-management positions affected. It says the positions being eliminated are at the head office and in field management.” Read more

 

***A message from Dig It® Handwear.  Garden glove protection for manicured female hands!  Finally something new and unique for the female consumer.  High-quality gloves provide unique “pillow-top” protection for finger nails when gardening or working around the house.  Nationally distributed in Canada and coming to U.S. in Spring ’15.  Shark Tank’s Kevin O’Leary calls it one of the best pitches he’s seen.  View the line at www.digithandwear.com.  Peggable gloves merchandise easily–see the off-shelf display. Contact info@shiftmarketinggroup.net to get started.

 

“Staples Plans to Close 170 Stores in North America This Year (Up from 140 Planned in August)” by Chelsey Dulaney at WSJ. “Staples Inc. on Wednesday said its fiscal third-quarter sales fell, as the office-supplies chain accelerates plans to close underperforming stores and spark sales growth online.” Read more (Subscription)

 

“How Disney Turned ‘Frozen’ Into a Cash Cow” by Binyamin Appelbaum at NY Times. “Disney really began to focus on princesses in 2000, after a new executive went to see a “Disney on Ice” show and was struck by how many of the girls in the audience were wearing homemade princess costumes. “They weren’t even Disney products”…The Disney Princess line now makes about $4 billion a year.” Read more

 

“Bentonville dubbed as North Pole for toys” by Kim Souza at The City Wire. “Wal-Mart vendors set up under awnings to display the latest, most sought-after toys for area kids to see and test again this year. “We estimate between 8,000 and 10,000 people visited this year’s event. It was the biggest yet in the five years we have hosted this popular outing,” said Brandi Wardlaw, event coordinator for Downtown Bentonville Inc.” Read more

 

Fortune: 20 great workplaces in retail by Christopher Tkaczyk.  See the list

 

“Here’s what Amazon’s fourth downtown Seattle block might look like” by Marc Stiles at Puget Sound Bus. Journal. See the pics / Read more

 

Chicago Business Journal not a fan of Kmart’s “Jingle Bellies” TV Spot by Lewis Lazare. “The main problem is the new commercial’s near total lack of sex appeal. Watching a line-up of guys in less-than-great shape tap out a jingle on their bellies simply isn’t very exciting or amusing. Or sexy.” See the spot / Read more

 

CNBC: “OK, Home Depot you tricked us … but why?” by Juan Aruego. “The headline was profits of $1.15 per share, which is 2 cents above what analysts expected. The major news outlets (including CNBC) all trumpeted some form of “Home Depot beats estimates.” Unfortunately, that’s not how most analysts saw it. By 8 a.m. EST, at least six analysts had said Home Depot’s profits were just $1.12, a 1-cent miss.” Read more / See the video

 

Heard on Home Depot’s Q3 Earnings Call

 

Comps

* Broad-based growth across our geographies with all three of our U.S. divisions posting mid-single digit comps.

* Every region positively comped in the quarter as did 39 of our top 40 markets.

* Our service businesses had comps above the company average with strength in windows, countertops and water heaters.

* The growth in our pro business continues to be anchored by our large spending Pro which grew at approximately 2x the company average.

* Canadian business posted comps above the company average…making it 12 quarters in a row of positive comps.

* Comps in local currency for our Mexican business were in line with our company average yielding their 44th consecutive quarter of positive comps.

* Total comp transactions grew by 3.1% while comp ticket increased 2.1% for the quarter.

* Transactions for tickets under $50 representing approximately 20% of our U.S. sales were up 1.9% for the third quarter.

* Transactions for tickets over $900 also representing approximately 20% of our U.S. sales were up 5.9% in the third quarter.

 

E-com

* Sales from our online channel grew almost 40% in the quarter and this was particularly impressive as we anniversary growth of over 50% in the same quarter last year.

* Almost 40% of our online orders are picked up in the store using our Buy Online Pick Up In Store and Buy Online Ship to Store capabilities.

* This year we are installing dedicated storage bays in 550 stores to improve the customer experience.

* Almost 40% of our orders through Home Depot.com in the quarter actually culminated in one of our Orange box stores.

* Online deliver from store: we’re in pilot at this point in two stores and the pilot is going well. It’s a very small pilot at this point.

 

Ted Decker’s Q4 Brand Callouts

Everbilt (PL), Kohler, Diablo, Milwaukee, DeWalt & Makita

 

Q&A

* I wouldn’t look for a dramatic departure from any of the strategies that we’ve had in place. (Menear)

* We’re two weeks into November and I must say that I’m impressed with the sales that we’ve reported to date. So if there’s a bias in or forecast I would say it’s a biased to the upside. (Tome)

* As you know we review about a third of the business each year, so while we’ve had these tools in place for a couple of years now, we still haven’t reviewed the entire store utilizing leveraging the new tools. (Decker)

* A newer set of tools that we haven’t talked that much about and I do see promise in the future is in space. (Decker)

* So once you have your demand and your assortment, how do you best get the appropriate micro space facing rate of sale and we have tools for that that we’re starting to use. (Decker)

* The disruptions at the ports in general transportation delays have been pretty difficult the last few weeks but thanks to a lot of hard work our team has been able to land our Black Friday freight. (Holifield)

* You never would’ve thought appliances would be as strong as it is as an online category. (Decker)

* We feel so good about Canada though that we are opening a store in Canada this year. We haven’t opened a store in Canada for a number of years. (Tome)

* If we have a 5% increase in the average ticket for Pros or three more transaction is a $1.2 billion opportunity. (Tome)

 

Read the Home Depot Q3 Earnings Call Transcript via Seeking Alpha

 

***

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 early AM every weekday and delivered between 7-8 am CST. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s happening in the world of retail. Contact us @ info@shiftmarketinggroup.net.

 

 

Tuesday Tipsheet: H.Depot US Comp +5.8% | CVS Tech Hub | Lowe’s=Appliance King in ’16?

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“Home Depot Q3 Comp +5.2% (+5.8% in US)” “During the quarter we saw strong performance across all geographies led by growth in transactions and continued strength in the core of the store,” said Craig Menear, CEO and president.” Read more

 

“Home Depot 3Q earnings top expectations” by Terri Cullen at CNBC. “Earnings for America’s largest home improvement company increased to $1.15 a share from 95 cents a share in the year-earlier period. Home Depot’s quarterly revenue rose to $20.5 billion from $19.5 billion a year ago.” Read more

 

Q3 2014 The Home Depot, Inc. Earnings Conference Call  Tuesday, November 18, 2014 9:00 a.m. ET  Webcast

 

“CVS to open tech hub in Boston” by Scott Kirsner at Boston Globe. “Chief digital officer Brian Tilzer said the CVS Health Digital Innovation Lab will accommodate about 100 people…Tilzer said CVS has another interesting project in the works: “lab stores” in Boston, New York City, and Menlo Park, Calif., that are scheduled to open next year…the lab stores will provide a “live environment” to help the company “explore whether they can be meaningful,” Tilzer said.” Read more

 

“Lowe’s Could be King of Appliance Sales by 2016” at Bloomberg News via Chicago Tribune. “Sears had 28 percent of the major appliance market in the United States last year, and that share may plummet to 10 percent by the end of 2016, Gary Balter, an analyst at Credit Suisse Group in New York, said in a report. If Lowe’s Cos. picks up a quarter of the share Sears loses, it would be the top appliance seller by the end of 2016, Balter said.” Read more

 

***New Product Spotlight (Sponsored). SunMoon Energy’s Smart Light provides 24+ hours of beautiful bright LED lighting from single solar charge. Use for emergency lighting, outdoor lighting, camping, hunting and tailgate parties. Water-resistant and portable and comes with a 3-year warranty. Easily charged with solar panel or AC Adapter (both included). Full charge takes 4 hours and provides 24 hours of on-demand lighting at the 60-Watt setting. See sell sheet. Contact info@shiftmarketinggroup.net for program details.

 

“Target adds in-store spin to iPhone app by adding interactive maps for all 1,800 U.S. stores” by Tricia Duryee at GeekWire. “Next up for in-store innovations could be something Marti calls the “Blue Dot,” which allows customers to track their exact location on the map to easily find items on the map. Maybe next year Point Inside’s customers will be ready for that, he says.” Read more

 

“Home Depot #1 in Radio Spots Again (Walgreen #2)” at Radio Ink. “For the second consecutive week, home-improvement powerhouse the Home Depot leads the Media Monitors chart, with a mighty 49,119 spots aired the week of November 10-16. Walgreens, which topped the list a few weeks back, comes in second with 44,228 spots during the week.” Read more

 

Canada: “Watchdog probes alleged ‘restrictive trade practices’ at Loblaw” by Marina Strauss & Jeff Gray at Globe & Mail. “The Competition Bureau is investigating Loblaw Cos. Ltd. pricing strategies in a probe that is demanding that some of the chain’s key suppliers hand over secret records about their dealings with the grocery giant.” Read more

 

LA Times: “Why doesn’t CVS clearly define its ExtraCare rewards for customers?” by David Lazarus. “CVS Health is playing fast and loose with its ExtraCare rewards program. The company says discounts don’t apply to products that are on sale. But it sneakily excludes some full-priced items as well.” Read more

 

“One in five UK supermarkets must close to restore profit growth, say analysts” at The Guardian. “With 56% of Tesco’s stores bigger than 40,000 sq ft, the report concludes the market leader has the biggest problem on its hands.” Read more

 

“Coming to a mall near you: a green alternative to Home Depot” by Bruce Watson at The Guardian. “Ballard’s goals are ambitious: he plans to have TreeHouse in every major market within five to 10 years. “Within 20 years, we want to be in every market,” he said. It’s an aggressive goal, particularly for a company that – at present – only has one store.” Read more

 

“Calif. ‘Made In USA’ Law Leaves Retailers In Bind” by Jonathan Randles at Law 360. “Macy’s Inc., Nordstrom Inc. and Land’s End Inc. are among the growing number of retailers facing lawsuits in California for allegedly selling apparel marketed as being American-made but including foreign-made fabrics, zippers, buttons, rivets and other components.” Read more (Subscription)

 

Variety: “Martha Stewart Launches Line of 3D-Printable Home Products” by Todd Spangler. “The first Martha Stewart products for MakerBot’s line of 3D printers are the Trellis Collection: a three-piece set that includes a coaster, napkin ring/place-card holder, and LED votive holder. Individual designs start at 99 cents and the full collection is available for $2.99.” Read more

 

***

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 early AM every weekday and delivered between 7-8 am CST. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s happening in the world of retail. Contact us @ info@shiftmarketinggroup.net.

Monday Tipsheet: Target: Clinics & Ellen | Wmart: GW | Amazon HQ ‘Protest’

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Busy Earnings Week – Highlights:

11/18: Home Depot

11/19: Lowe’s, Target & Staples

11/20: Best Buy & Dollar Tree

 

“Target to offer primary care services in new clinic model” by Kavita Kumar at Star-Tribune. “The fact that Kaiser … will be staffing these clinics is a major departure for Target,” said Tom Charland, CEO of Shoreview-based Merchant Medicine, a retail clinic research and consulting firm. “Up until now, they felt their guests should be treated by Target employees.” Read more

 

“Bulk retailer Costco sees potential growth in demand for Australian produce in international outlets” by Catherine McAloon at ABC Rural. “Mr (Patrick) Noone says Costco is already the biggest seller of Australian lamb internationally and also sells large quantities of Australian beef overseas, while oranges from Griffith in New South Wales are sold in Costco outlets in the USA and Asia. Carrots and onions from Tasmania are sold in Costco outlets in Asia and there’s growing demand for South Australian abalone in Costco outlets internationally.” Read more

 

“Why Target Canada Won’t Have an Online Store Anytime Soon” by Daniel Tencer at HuffPo. “We know e-commerce needs to be part of our longer term strategy in Canada, but first we have to get the basics right,” Target spokesperson Eric Hausman told HuffPost Canada in an email. “We do have a small team looking at what it would take to develop a digital strategy in Canada, but we have nothing more to share at this time.” Read more

 

“Hundreds gather at Bentonville Walmart for book signing by former President Bush” by Kim Souza at The City Wire. “The book signing for “41: A Portrait of My Father,” took place at the Walmart Supercenter on Walton Boulevard after the former president was a special guest at the retailer’s monthly Saturday morning meeting at the corporate offices across street…The scene looked like a Black Friday event except for the higher security and individual searches conducted by the Secret Service.” Read more

 

“Ellen Goes Holiday Shopping At Target (Race for the Elsa life size doll)” “She went to pick up a few things for the holidays, and had some fun with Target shoppers!” See the video

 

“Protesting outside Amazon HQ, former employee asks current employees to stop working so hard” by Todd Bishop at GeekWire. “3) Don’t kill yourselves to keep the ship running. Slow down. Amazon will be fine…Oh, boy. Questioning the company’s business ethics is one thing, but urging employees to be less productive? It will be interesting to see how Amazon reacts.” Read more

 

“Home Depot data breach lawsuits rise to 39” by David Allison at Atlanta Bus. Chronicle. “A federal court agency known as the U.S. Judicial Panel on Multidistrict Litigation is scheduled to hold a hearing on Dec. 4 in Charleston, S.C., about how to possibly combine and litigate many of the cases as one combined court action.” Read more

 

“Review: I paid with mobile for a week, and here’s what I found” by Anick Jesdanun at AP via Charlotte Observer. “The good news: I didn’t get arrested for failing to pay my debts. But on two occasions, friends had to buy me drinks. Another night I had to borrow $43 in cash. And I prepaid for drinks at one bar because I couldn’t leave a card to keep the tab open.” Read more

 

“Chocoholics beware! A chocolate shortage looms” by Javier E. David at CNBC. “The Post cited data showing the world ate more than 70,000 metric tons of cocoa than it produced in 2013. By 2020, the two major chocolate manufacturers believe that deficit could burgeon to more than a million, a whopping 14-fold surge. By 2030, the gap could blow out to 2 million metric tons.” Read more

 

***

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 early AM every weekday and delivered between 7-8 am CST. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s happening in the world of retail. Contact us @ info@shiftmarketinggroup.net.

 

Friday Tipsheet: Costco CEO in IN | Target’s South Park “Worry” | Cramer Likes McMillon

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“Walmart Stores Are Now Price-Matching Amazon.com” by Amit Chowdhry at Forbes. “Greg Foran, the president and CEO of Walmart U.S., said that the price-matching plan simply formalized what many of the stores were already doing. “About half of the stores were doing it anyway,” said Foran.” Read more

 

Wal-Mart Q3 2015 Earnings Call Transcript  Read more

 

“Target Express plans worry people in South Park, San Diego” by Dominic Garcia at CBS 8. “South Park is really unique,” resident John Moore said. So when he heard a big box chain was moving into the old Gala Market, “My first reaction was, this has gotta be made up.”…”That landlord might say ‘I can get some more money for my little space, how about I invite in a Subway?’ And then one by one it changes the character of the neighborhood,” he said.” See the video / Read more

 

“Walmart Canada gaining ground in retail food fight” by Hollie Shaw at Financial Post. “The country’s biggest mass merchant has been locked in an aggressive pricing war with rivals such as Loblaw Cos. for the better part of two years…“In an increasingly competitive environment, Canada gained 20 basis points of market share in food, consumables and health and wellness combined,” (David Cheesewright) said.” Read more

 

“Costco CEO attends pre-opening of new Mishawaka store” by Heidi Prescott at South Bend Tribune. “Jelinek chuckled when he was asked about his rather unusual pre-store-opening tradition. He explained how each dollar, which he carefully inspected before the employee could walk away, contained the worker’s name and his or her projection for first-day sales. Whoever comes closest wins the entire amount.” Read more

 

“Target eyes Mid-South for distribution center with up to 600 jobs” by Ryan Poe at Memphis Bus. Journal. “Target is currently negotiating leases, and is in talks with both Tennessee and Mississippi economic development officials, sources familiar with the matter said.” Read more

 

“How Sam’s Club plans to push back against Costco” by Phil Wahba at Fortune. “Brewer warned investors last month that “it’s going to take some time” for Sam’s Club weak business traffic trends to improve, but she is optimistic. “The base of our business is very strong,” Brewer told Fortune. “If I could pull out those few soft points, we do compare pretty strongly category by category to Costco. We’re not hyperventilating at all.” Read more

 

“Report: Amazon plans big Austin office” by Michael Theis at Austin Bus. Journal. “The report, based on unnamed sources in the local real estate scene, said that the company could be bringing up to 250 tech jobs to work in a 76,000-square-foot office at Domain 7 at 11501 Alterra Parkway.” Read more

 

“23 Arrested In Protest At Pico Rivera (LA-Area) Walmart” at CBS LA. “There also were reports of some Walmart workers, with mouths symbolically taped shut, staging sit-down strikes at other Los Angeles-area Walmarts.” See the video / Read more

 

“Want to fix retail? Close more stores” by Krystina Gustafson at CNBC. “Belus Capital Advisors analyst Brian Sozzi said that he predicts Wal-Mart will also begin closing underperforming stores in 2015. “Theoretically, its own investments in its future of mobile buying is crippling the sales potential of new, and old, supercenters,” he said.” Read more

 

“Kohl’s 3Q profit misses consensus, same-store sales down 1.8%” by David Schuyler at Milwaukee Bus. Journal. “In a conference call, Kohl’s chairman and CEO Kevin Mansell said the company is projecting a 2 percent to 3 percent increase in same-store sales in the fourth quarter.” Read more

 

“Jim Cramer: Doug McMillon Is Helping Turn Walmart Around” at CNBC. “Jim Cramer says we got a nice upside surprise from Walmart Thursday when the retailer posted third quarter results that beat expectations. He credits CEO Doug McMillon with putting Walmart back on the map.” See the video

 

“Nordstrom beats same store sales” by Rachel Lerman at Puget Sound Bus. Journal. “Same store sales grew 3.9 percent, pleasing analysts who expected 3.3 percent growth.” Read more

 

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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 early AM every weekday and delivered between 7-8 am CST. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s happening in the world of retail. Contact us @ info@shiftmarketinggroup.net.

Thursday Tipsheet: Wmart: Comp +.5%; Axe 200 at Can HQ? | Target: Rosa Parks & Chicago

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“Walmart Q3 Comp Sales +.5% in U.S.” “Sam’s Club comp sales, without fuel,1 increased 0.4 percent for the 13-week period ended Oct. 31. Sam’s Club increased membership income 10.1 percent for the quarter, and grew operating income more than twice the rate of sales growth. E-commerce sales globally increased approximately 21 percent on a constant currency basis.” Read the release

 

CNBC’s Take: “Wal-Mart tops earnings estimates; shares climb” “The retail giant reported a profit of $1.15 a share on revenue of $118.01 billion. Wall Street had expected the company to post earnings of $1.12 per share .” Read more

 

“Target buys in-store personalization startup Powered Analytics” by Justin Coyne at Pittsburgh Bus. Times. “With its Fabric product, Powered Analytics developed the first in-store personalization platform to bring an “Amazon-like shopping experience” into a physical store.” Read more

 

“Wal-Mart Canada set to axe 200 employees at head office” by Marina Strauss at Globe & Mail. “Andrew Pelletier, a spokesman for Wal-Mart Canada, said on Wednesday that he could not comment on rumours or speculation. “In this competitive retail climate it’s not unusual for rumours to circulate.” Read more

 

“Meet the Canadian Hero Who Opened His Own Rogue Trader Joe’s in Vancouver” by Sierra Tishgart at Grub Street. “They got a picture of me from some press thing, so a year ago, I’d go into a Trader Joe&’s, and within ten minutes, someone would be tapping me on the shoulders saying, “We’re not going to sell to you.” Now I hire shoppers off Craigslist. It sounds sketchy: “So, you’ve got to sneak into Trader Joe’s for me and buy groceries.” Read the interview

 

“Two Chicago TargetExpress stores are reportedly in the works” by Nick Halter at Minn./St. Paul Bus. Journal. “The Minneapolis-based retailer is planning stores in Chicago’s Lakeview and Streeterville neighborhoods, reported Crain’s Chicago Business, citing unidentified sources.” Read more

 

***New Product Spotlight – Lock-it Block-it’s window security bar keeps the bad guys out and lets the fresh-air in. Adjustable window security bar blocks criminals from entering a home through open windows. Windows can be open AND homes remain secured. Helps prevent children from falling out open windows. Easy installation.  Watch the video  See the sell sheet  info@shiftmarketinggroup.net 

 

“Target Canada undergoes sales strategy makeover as key Christmas season nears” by Hollie Shaw at Financial Post. “We had a lot of wool outerwear last year, and it didn’t sell,” John Butcher, target Canada’s senior vice-president of merchandising, said in an interview this week. Canadians prefer a more “durable” product — coats with fabric that repels water and wind — rather than the coats that sell well in some cold-weather U.S. markets. “We got rid of 90% of our outerwear assortment from last year and just started over.” Read more

 

NY Times: “Alex From Target: The Other Side of Fame” by Nick Bilton. “Mr. Fooks said that in addition to death threats, people have leaked the family’s personal information online, including Social Security numbers, bank accounts and phone records. The family, worried for the safety of Alex and his five siblings, has been in contact with the local police. Alex’s parents have met with his school’s principal and security officers, as well as Target managers, to put together security plans in case of an emergency.” Read more

 

“Ace Hardware reports record third quarter revenue” by Lewis Lazare at Chicago Bus. Journal. “Ace Hardware today announced record revenues of $1.13 billion for the third quarter of 2014, a year-over-year increase of $94.6 million (9.1 percent).” Read more

 

“House Dem presses breached companies for info” by Cory Bennett at The Hill. “Rep. Elijah Cummings (Md.) sent letters Wednesday to five companies that have experienced high-profile data breaches this past year — Home Depot, Target, Kmart, Community Health Systems and U.S. Investigations Services (USIS).” Read more

 

“Rosa Parks Institute Says Target Merch Is Not Free Speech” by Bill Donahue at Law 360. “Target Corp. is claiming merchandise bearing the name and image of civil rights icon Rosa Parks is protected free speech, but the group that owns Parks’ publicity rights on Monday called it “an arrogant and reckless disregard for the only charity started by [a] selfless martyr.” Subscription required

 

“Retail Janitors Have Had Enough – Threaten  Black Friday Strike” by Bill Sorem at The Uptake. “Janitors who clean Home Depot and other Twin Cities stores are using the upcoming holiday shopping season to put pressure on the big box retailers and the subcontracting companies that employ the janitors to raise their pay. Dozens of janitors are threatening to strike if there is not an agreement to comply with a “Responsible Contractor Policy” like Target Corporation agreed to earlier this year.” Read more / See the video

 

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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 early AM every weekday and delivered between 7-8 am CST. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s happening in the world of retail. Contact us @ info@shiftmarketinggroup.net.

Wednesday Tipsheet: NY Times & Leaked WMart Memo | Black November | Online Tax Dead

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NY Times: “Walmart Memo Orders Stores to Improve Grocery Performance” by Steven Greenhouse & Hiroko Tibuchi. “The memo — leaked for public use by a Walmart manager unhappy about understaffing — also tells stores to be sure to “rotate” dairy products and eggs, which means removing expired items and adding new stock at the bottom and back of display cases.” Read more

 

“Walmart Spreads Black Friday Across Five Days” by Craig Giammona at Bloomberg. “The “New Black Friday” will include five days of sales on Walmart.com and in stores, starting at 12:01 a.m. online on Thanksgiving and running through Cyber Monday, the Bentonville, Arkansas-based company said in a statement today.” Read more

 

…Up Next: Black November? by Shelly Banjo at WSJ. “It used to be called Black Friday, then it became Thursday, now it’s a week long,” said Wal-Mart U.S. chief merchant Duncan Mac Naughton. “Maybe we should just call it November.” Read more (Subscription)

 

“Best Buy bucks trend by not pulling Thanksgiving all-nighter” by Kavita Kumar & Paul Walsh at Star-Tribune. “Best Buy will open most of its stores an hour earlier than last year, at 5 p.m. on that Thursday. But then it will close its stores at 1 a.m. and reopen them at 8 a.m. on the actual Black Friday.” Read more

 

“Amazon Expands Its R&D In Cambridge, U.K.” by Natasha Lomas at TechCrunch. “Amazon is expanding its R&D operations in Cambridge, U.K., with a plan to staff out a large research lab — expanding on the foothold it acquired when it bought Cambridge-based speech tech startup Evi Technologies two years ago, TechCrunch has learned.” Read more

 

“How a female veteran became a Wal-Mart exec” by Caroline Fairchild at Fortune. “I understand that Rosalind Brewer, the president and CEO of Sam’s Club, mentored you. How has she developed you as a leader? Absolutely. She has helped me develop as a businesswoman and build my business acumen…She really embodies how important it is to really be yourself and to bring your whole self to work.” Read the Q&A

 

“What Is a Pinfluencer? Well, They Now Have Talent Agents” by Nellie Bowles at Recode.”I know. I totally understand the skepticism. People hear Pinterest star and they’re like, what?!,” she said. “But after three years of doing this, seeing clients making hundreds of thousands of dollars and quit their jobs and pin full time, it’s real.” Read more

 

“Wal-Mart pushing suppliers for Millennial insights” by Kim Souza at The City Wire. “We need to collaborate more with our suppliers on this. We know Millennials want ‘now, new and always.’ Wal-Mart will also be Wal-Mart and that resonates as the now, but we need help with the new. That’s where our suppliers can join us and that’s the exciting part. This customer is moving faster. They are leading us more than we are leading them,” (Matt) Kistler said.” Read more

 

“Most People Confused How To Write Names Of Walmart, Lowe’s” by Chris Morran at Consumerist. “While the correct “Walmart” did end up being the most frequently selected answer, it still only represented 36% of all responses to this question, making it the second-lowest score in the entire quiz. “ Read more

 

“Republicans signal demise of internet sales tax bill” by Barney Jopson at Financial Times via CNBC. “A spokesman for John Boehner, the Republican speaker of the House of Representatives, said a bill to tax online shopping – which passed in the Senate last year – would not move forward in the final weeks of the current Congress, the lame duck session.” Read more

 

“Wal-Mart CEO & Actor Jon Voight Salute America’s Veterans at Bentonville Celebration” by Kim Souza at The City Wire. “Wal-Mart CEO Doug McMillon opened his segment with a photo of his father Morris McMillion, who served as a dentist during the Vietnam War. “Service men in Vietnam might not have thought they needed a dentist, but if they had a toothache in Vietnam, I can assure they needed a dentist,” McMillon said. “I am honored to remember my father’s service today.” Read more

 

“24% of millennials expect student debt forgiveness” by Amy Langfield at CNBC. Read more

 

“Talk of activist interest boosts Wal-Mart call volume ahead of earnings” at Reuters. “…amid rumors that the retailer could face activist pressure to spin off its Sam’s Club division.” Read more

 

72% of Americans said they want to know where their child is located in real time  Read the release

 

“O’Hare rated worst U.S. airport during winter” by Gregory Karp at Chicago Tribune. “Some 42 percent of flights are delayed at O’Hare during the winter, according to flight data site Hopper, which ranked America’s 20 largest airports.” Read more

 

Businessweek’s Top 85 Business Schools See the list

 

“Man trapped for three days between Marshall’s store walls” at Reuters. “Crews determined the man was stuck between the exterior and interior walls,” she said. Firefighters sawed a hole through an exterior wall to extract Felyk, Meehan said. He had plummeted about 20 feet from a vestibule on the roof sometime over the weekend, police said.” Read more

 

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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 early AM every weekday and delivered between 7-8 am CST. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s happening in the world of retail. Contact us @ info@shiftmarketinggroup.net.

Tuesday Tipsheet: Target’s Mojo | Wayfair +47% | Costco Holds Amex Jewel

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Happy Veterans Day!

 

“Target joins the Black Friday early birds” by Kavita Kumar at Star-Tribune. “Black Friday shoppers, set your watches — err, smartphones — for 6 p.m. on Thanksgiving night. That time is shaping up to be the main event for the big shopping frenzy this year. On Monday, Minneapolis-based Target said it would open then, too, two hours earlier than last year.” Read more

 

“AmEx Costco Card Seen as Crown Jewel Worth 15 Cents EPS” by Elizabeth Dexheimer at Bloomberg. “The lender’s exclusive role as the credit-card provider for Costco’s U.S. stores may generate 20 cents to 30 cents of earnings per share next year, according to William Ryan at Portales Partners LLC.” Read more

 

“Shipping wars: Retailers to push order deadlines later” by Krystina Gustafson at CNBC. “According to a new study by Kurt Salmon, which surveyed more than 100 retailers with revenue greater than $750 million, 26 percent will guarantee Christmas delivery for orders placed one to three days ahead of time. That’s up from 17 percent in 2013. What’s more, nearly 50 percent will guarantee on-time delivery for Christmas orders placed by Dec. 20. That’s also up, from 37 percent last year.” Read more

 

“Alibaba smashes Singles’ Day sales record” by Leslie Shaffer at CNBC. “Alibaba’s sales for Singles’ Day, China’s equivalent of Cyber Monday — surged past last year’s record of around $5.9 billion after just 13 hours of the 24-hour shopping promotion.” Read more

 

“Why China’s Singles Day Won’t Become a American Shopping Holiday” by Akane Atani at Businessweek. “Sorry, U.S. retailers: Inciting further consumer spending among America’s singles is going to take more than embracing a modern Chinese custom. Celebrating singledom is fine, but Rogers has a suggestion for a retail holiday that could really warm a millennial’s heart: “Just Got Your First Job Day.” Read more

 

***New Product Spotlight (Sponsored). SunMoon Energy’s Smart Light provides 24+ hours of beautiful bright LED lighting from single solar charge. Use for emergency lighting, outdoor lighting, camping, hunting and tailgate parties. It’s water-resistant and portable and comes with a 3-year warranty. Easily charged with solar panel or AC Adapter (both included). Full charge takes 4 hours and provides 24 hours of on-demand lighting at the 60-Watt setting. See sell sheet. Contact info@shiftmarketinggroup.net for program details.

 

“Target’s starting to get its mojo back: Pro” by Krystina Gustafson at CNBC. “Stifel Nicolaus analyst David Schick on Monday upgraded his rating on the company to “buy” from “hold,” saying it appears Target is playing more “on offense” lately.” Read more

 

Video: Whole Foods NYC Rooftop Garden Featured by Anthony Ha in TechCrunch. “For our latest episode of Built in Brooklyn, we went to the new Whole Foods in Gowanus — which might seem a little strange, but that’s where you’ll find urban agriculture startup Gotham Greens.” See the video / Read more

 

“U.K.: Tesco loses top spot in entertainment sales to Amazon” by Ben Marlow at Telegraph. “Tesco surrendered the number one spot to US retail juggernaut Amazon, which saw its share leap from 17.6pc to 22.5pc year-on-year.” Read more

 

“Wayfair Revenue Up 47% in Q3” “The number of active customers in our Direct Retail business reached 2.9 million as of September 30, 2014, up 61.0% year over year.” Read the release

 

“Deloitte: Holiday Shopping Study” “Respondents with annual incomes of less than $100,000 expect to spend 54 percent of their total holiday budgets in-store, versus 46 percent for those with incomes over $100,000.” Read the release

 

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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 early AM every weekday and delivered between 7-8 am CST. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s happening in the world of retail. Contact us @ info@shiftmarketinggroup.net.