Today’s Tipsheet: Target’s Argyilan Q&A | Costco Flat Comp | JCP CEO Gets a Crowd | For Sale: Mills Fleet, Woolworth Mansion

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Costco September Comp Sales Flat (+8% Excluding Gasoline & Foreign Exchange) “Costco reported net sales of $10.75 billion for the month of September, the five weeks ended October 4, 2015, an increase of two percent from $10.57 billion during the similar period last year.” Read the release

 

Target’s Kristi Argyilan on What ‘In-House Programmatic’ Really Means by Alexander Bruell at Ad Age. “Advertising Age: Are you spending more on programmatic? Ms. Argyilan: Yes, definitely…We have our own exchange and private marketplace, and in that marketplace we have every channel represented, including some experimental video and TV…Ms. Argyilan will be speaking at Ad Age’s Brand Summit in Los Angeles on Nov. 4.” Read the Q&A

 

TJX CEO Carol Meyrowitz is exiting in style by Taryn Luna at Boston Globe. “TJX said Wednesday that Meyrowitz will be succeeded by her second in command, president and 26-year TJX veteran Ernie Herrman.” Read more

 

J.C. Penney CEO Marvin Ellison focused on building customer loyalty by Maria Halkias at Dallas Morning News. “Crowds are following Marvin Ellison around these days…last month at the Goldman Sachs Annual Global Retailing Conference. The half-empty room filled up when it was Ellison’s turn at the podium. He’ll be talking to the retail industry again Thursday afternoon at the Texas A&M Retailing Summit at the Westin Galleria in Dallas…” Read more

 

Chicago: New Streeterville Target is tiny but delivers big by Judy Hevrdejs at Chicago Tribune. “Located at 401 E. Illinois St., with its grand opening slated for Sunday, the new Streeterville Target boasts an array of goods celebrating Chicago’s appetite for sports and food that we spotted during a first-day visit…” Read more

 

…Any alcohol purchased in the Starbucks must be consumed within the coffee shop limits, starting at 2 p.m. on weekdays and noon on weekends by Brigid Sweeney at Chicago Crain’s. Read more

 

Jet.com Overhauls Business Model, Kills $50 Membership Fee to Broaden Appeal by Jason Del Rey at Recode via CNBC. “One obvious question: Was Jet afraid that fewer customers were willing to pay for a membership after their free trial ended?” Read more

 

Wal-Mart to open second e-commerce center in Fort Worth by Maria Halkias at Dallas Morning News. “Local government officials were given a tour Wednesday of the building, which processes hundreds of thousands of items a day, Wal-Mart spokeswoman Anne Hatfield said.” Read more

 

Amazon pumps $190M into its India operations, opens 21st fulfillment center in the country by Michael De Waal-Montgomery at Venture Beat. Read more

 

Family-owned Mills Fleet Farm looking to sell company by Renee Richardson via Pioneer Press. “For the long term, this is what is right for the business, this is what is right for our employees,” Mills said. “It’s a very, very painful decision for the Mills family.” Read more

 

An Amazon ‘pick-up’ store may be coming to a college near you by Leena Rao at Fortune. “Amazon plans to open more customer service outlets near college campuses so students can pick up their orders, according to several job listings on the company’s website. Students at University of California at Berkeley, University of California at Santa Barbara, and the University of Cincinnati will soon be able to visit physical Amazon stores on or near campus to get their packages.” Read more

 

Amazon launches Handmade, an Etsy-style portal for artisanal goods by Paul Sawers at Venture Beat. Read more

 

PetSmart spokesperson: Animals died when SC store flooded by Dal Kalsi at Fox Carolina. “Posts circulating on social media allege that animals were intentionally left to die, but PetSmart Corporate Communications Manager Erin Gray said the store took steps to save animals and tried to rescue others after the flash flooding.” Read more

 

Magnificent mansion of retail tycoon Charles Woolworth is now a ruin at Daily Mail. “The half-destroyed Pennsylvania home of the co-founder of the Woolworth retail empire has been put on the market for just $295,000…While the grand house is a vision from the outside – all 8,000 square-feet of it – inside it is in near-ruins.” See the pics / Read more

 

Tipsheet Extra

Walmart: Laid off HQ employee talks to TV reporter (married four days before)

Arlington’s new tiny Target is ready to open (video/pics)

JCPenney Hires a New Agency to Help Grow the Brand With Middle-Income Shoppers

Jimmie Johnson driving Red Vest Lowes paint scheme at Charlotte (Photos)

Amazon’s promotional ‘Treasure Truck’ still missing in action

Chinese toolmaker must pay $54 million for copying DeWalt color scheme

How Coach Inc plans to recapture the high-end market as ‘affordable luxury’ rivals rise (President Q&A)

Read Tipsheet Extra Stories

Today’s Tipsheet: Open: H.Depot Tech Center, Mini Target in South Park | Wmart Nabs K Street Exec | Costco: 26% of Eggs Cage-Free

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Home Depot opens 1,000-employee Marietta tech center by Kimeko McCoy at Marietta Daily Journal. “The Home Depot on Tuesday opened a 200,000-square-foot technology center in Marietta, which houses 1,000 information technology associates…plans to add another 500 positions in the future…leasing a four-building campus on New Market Parkway near the corner of Cobb Parkway and Franklin Road.” Read more / See the ribbon cutting

 

Costco Sells Record Amount of Cage-Free Eggs Despite Feud by Jade Scipioni at Fox Business. “In 2015, we sold 2.9 billion eggs and 763 million of them were cage-free. That’s 26% of our total sales,” (Vice President Craig Wilson) says…Wilson says in 2006, Costco sold about 1.6 billion eggs and only 34 million of them were cage-free. “That’s only 2%,” he says. “We’re the largest seller of cage-free eggs in the world and we’ve been working on this for a long time.” Read more

 

Mini Target opens in South Park by Jennifer Van Grove at San-Diego Union Tribune. “Love it or hate it, the Target located at the intersection of Fern and Grape streets in South Park is officially open for business Wednesday…At least two groups, Care About South Park and Save South Park, sought to derail the mega-retailer’s plans to operate in the neighborhood. Save South Park’s online petition to keep all large chains out of the neighborhood received 2,020 signatures.” Read more

 

Wal-Mart nabs leader of K Street firm by Megan R. Wilson at The Hill. “Dan Bryant, who moved from PepsiCo’s lobbying operation to Covington in 2012, begins on Nov. 9…Wal-Mart remains outside of the top 50 spenders on lobbying, according to data provided to The Hill by the Center for Responsive Politics. It has retained 11 outside firms to work on its behalf, including Capitol Counsel, the Podesta Group, Mehlman Castegnetti Rosen & Thomas, the Alpine Group, Hannegan Landau Poersch Advocacy and the Nickles Group.” Read more

 

Amazon’s primed to add grocery delivery hub in Minneapolis by Sam Black at Minneapolis/St.Paul Business Journal. “The Seattle-based online retailer hasn’t made a formal announcement, but detailed its plans to begin food delivery in a letter to the city of Minneapolis. The letter was included with a building permit application for space Amazon quietly leased last month at 763 Kasota Ave. in Minneapolis, near the St. Paul border.” Read more

 

Wal-Mart expands protein bars to main grocery aisles via Chicago Tribune. “Wal-Mart also said Tuesday that it will be offering free blood glucose, blood pressure, and vision screening at all of its 4,400 stores on Saturday.” Read more

 

**A message from Pro-Chlor Septic Tabs – Homeowners with aerobic septic systems must properly chlorinate them or face fines upon mandated inspections. Flushable tabs don’t work here …only chlorine tabs made specifically for aerobic systems. Are they on your shelf? For program information contact info@shiftmarketinggroup.net 

 

Yesterday: Walmart EVP Michelle Gloecker’s Press Conference by Kim Souza at The City Wire. “The City Wire asked Gloecker for an update on the retailer’s medical clinic initiative launched in the summer of 2014. “I am happy to share that on Nov. 11 we will open a new health clinic in Royce City, Texas which will make our eighth clinic in Texas. We have five in South Carolina and five in Georgia as well,” Gloecker said. She said Wal-Mart is happy with the 18 clinics it has opened in the past year.” Read more

 

Effort launched to get Target to pull hypodermic pens at ABC 5 WCVB. “Teacher Susan Haight she saw the party packs of pens Sunday at a local Target. She said she found them to be in poor taste and appalling. She said the toys could be dangerous, especially when there are reports of children finding used hypodermic needles on playgrounds.” Read more

 

Food Lion offers $20 coupon incentive at Supermarket News. Read more

 

Amazon Prime causes massive influx of packages, forces college to rethink mailroom by Molly Brown at GeekWire. “University officials put the overload at about 3,000 more packages per day, which kept staff busy sorting until 3 a.m., at the beginning of the school year.” Read more

 

Walmart Rips Its Insurance Companies Over Tracy Morgan Crash Settlement by Erik De La Garza at Courthouse News Service. “We funded the settlement agreements in full but some of the insurance carriers failed to pay their portion of the settlement amount,” (Walmart spokesperson Randy) Hargrove said in an interview with Courthouse News Service. “Really, this lawsuit is about the defendant insurance companies not living up to the requirements of their own policies,” he said.” Read more

 

Amazon gets busy locking in domain names for Internet of things by Barb Darrow at Fortune. Read more

 

Tipsheet Extra

Target’s Only Male Plus-Size Model Zach Miko Hits a Bull’s-Eye for Body Positivity

Woman brought to tears by Home Depot’s generosity to veteran

P&G Ad Banned by U.K. Watchdog

The Twisted Tale of Slinky, the Most Popular Toy Ever

The Entrepreneur Behind Iran’s Billion-Dollar Super Mall

Read Tipsheet Extra Stories

 

Eye-on-Retail Tipsheet is created early every weekday morning and read by retail merchants and executives worldwide. 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. See our website at www.eyeonretail.net

Today’s Tipsheet: Wmart Retests Scan & Go | 100 Best Co’s for Women | 44% go to Amazon 1st

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Walmart is retesting Scan & Go in select stores by Kim Souza at The City Wire. “We can’t say how many stores are testing it this time, but it is underway in Rogers and it’s part of Wal-Mart’s efforts to ensure its stores are fast, clean and friendly,” said John Forrest Ales, corporate spokesman for Wal-Mart…The City Wire tested this new service in the Rogers store on Monday (Oct. 5)…” Read more

 

Amazon Is Absolutely Eviscerating Other Retailers Online, New Survey Shows by Jason Del Rey at Recode. “In a survey of 2,000 online shoppers in the U.S., 44 percent of respondents said they go directly to Amazon when looking to buy or research a product online…For comparison’s sake, a 2012 Forrester Research study found that 30 percent of U.S. online shoppers started on Amazon at the time.” Read more

 

Meijer picks new president after predecessor leaves for Academy Sports by Alison Bauter at Milwaukee Business Journal. “Rick Keyes, 46, has been with (Meijer) for 26 years, starting as a pharmacist in a Columbus, Ohio, Meijer store. Co-chairman and co-CEO Hank Meijer said in a press release Keyes has “grown up with Meijer.” Read more

 

Fortune: 100 Best Workplaces for Women (Build-A-Bear #10, Wegmans #54) See the top 100 list

 

South Carolina: Lowe’s disaster recovery in high gear by Ken Elkins at Charlotte Business Journal. “Recovery teams from Georgia, North Carolina and other surrounding states are on the ground in South Carolina now to help unload trucks and staff the stores. Those members will help out in stores in South Carolina that are running with only skeleton crews.” Read more

 

Wal-Mart de Mexico Sales Gain Pace in Third Quarter by Anthony Harrup at Dow Jones Business News. “September sales rose 12.5% from the year-earlier month to 37.3 billion Mexican pesos ($2.23 billion), the company said Monday.” Read more

 

**A message from Hot Shot Insecticides – While you’re away, what creepy-crawlies are at play? Be the hero with Hot Shot(R) Insecticides — our household bug solutions root out hidden insect pests before they move in and multiply. It’s the clear advantage at home and in the checkout line. Save the day! See our videos | Visit us on Facebook

 

eBay Restructures Fees and Increases Seller Limits by Ina Steiner at ECommerce Bytes. Read more

 

Fuel Prices Fall, but FedEx and UPS Boost Surcharges by Laura Stevens at WSJ. “FedEx Corp. is raising its fuel surcharge for the second time this year, jolting e-commerce companies…The increase, which takes effect Nov. 2, would add about $170 to the bill for shipping 100 shoeboxes overnight from New York to Atlanta, up from the $67 added by the current surcharge.” Read more (Subscription)

 

Cybersecurity and IT expert becomes 12th director for Home Depot at Atlanta Business Chronicle. “(Linda) Gooden retired in 2013 from Lockheed Martin Corp. as executive vice president of Information Systems & Global Solutions. She has an extensive background in information technology, cybersecurity, operations and finance.” Read more

 

Q&A with Amazon’s India country manager by Jay Greene at Seattle Times. “Q: My understanding of the origin of the cowboys-in-India metaphor is that you presented a review for the business and Jeff Bezos said, “You’re going to fail. I don’t need computer scientists. I want cowboys.” Agarwal: It’s more of an internal story but, yeah, Jeff is one of those visionary leaders who is very good at situational leadership.” Read the Q&A

 

Pinterest Makes Buy Buttons Available to Thousands More Merchants by Jason Del Rey at Recode. Read more

 

Meijer targeting ‘millennial moms’ with new private-label products by Shandra Martinez at M Live. “(Meijer) is merging its Meijer Naturals and Meijer Organics brands intoTrue Goodness by Meijer. The two brands apparently were a headscratcher for shoppers who couldn’t decipher which was the healthier choice.” Read more

 

Costco Contractor To Pay $4.25M To Settle Wage Suit by Matthew Bultman at Law 360. Read more (Subscription)

 

Reese Witherspoon’s clothing startup raises $10 million in funding by Matt Linder at Internet Retailer. “The Southern-inspired clothing and accessories brand, which sells online-only right now, plans to use the money to open its first physical store in Nashville as well as to expand its product offerings.” Read more

 

Tipsheet Extra

A Bullseye View: Check Out What’s Testing at the Minnetonka SuperTarget

Walmart employees in hot water over video of suspected shoplifter

Costco signs 151,104-square-foot lease at Mall of the Americas (Miami)

Bloomberg Markets Top 50 Most Influential (Bezos #15)

General Mills recalls 1.8 million Cheerios boxes on allergy fears

Canada: Walmart to test 7-Eleven stores for 24/7 package pickup

How Coca-Cola has tricked everyone into drinking so much of it

Former Walmart exec to speak at chamber annual meeting

Read Tipsheet Extra Stories

 

Eye-on-Retail Tipsheet is created early every weekday morning and read by retail merchants and executives worldwide. 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. See our website at www.eyeonretail.net

Today’s Tipsheet: Test: Target (Groc.) in Minnetonka, Kroger (‘Smart Shelf’) in Cold Spring | Costco Nears $5 Bil in Ecom | Amazon Jumps to #10

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Kroger tests ‘smart shelf’ technology by Alexander Coolidge at Cincinnati Enquirer. “Kroger’s test is expanding from a few shelves to most of its Cold Spring store on Crossroads Boulevard. The company is completing the installation of 2,200 Edge shelves…future applications could include providing on-demand nutritional info when shoppers touch the shelf below an item. Kroger officials can easily see a day when the shelves can talk to shoppers’ smart phones. See it in-store / Read more

 

Target uses Minnetonka store for tests while grocery makeover is in progress by Kavita Kumar at Star Tribune. “Target officials say they need more time to hash out and test ideas — 2017 is the new rollout time…When shoppers now enter that store, they see a new kiosk on wheels — reminiscent of a kitchen cart one might find at Williams-Sonoma…The Minnetonka store now has whimsical phrases such as “snack happy” and “ok to crave” above displays of better-for-you snacks.” Read more

 

Amazon jumps to #10 on best global brand list by Ritika Shah at CNBC. See the top 40 list

 

Costco closes in on $5 billion in annual web sales by Mark Brohan at Internet Retailer. “E-commerce grew 20%. Based on that metric Internet Retailer estimates that web sales reached $4.49 billion compared with $3.73 billion in fiscal 2014.” Read more

 

J.C. Penney cuts its pension obligation by Maria Halkias at Dallas News. “J.C. Penney on Friday said it has cut its $5 billion pension obligation by more than 25 percent by making lump-sum offers to 12,000 retirees and by buying annuities for 43,000 retirees.” Read more

 

**A message from Mobee’s Bees – Mobee has over 350,000 GPS tracked, Smartphone enabled ‘Bees’ located within 5 miles of every US retail store. Detect supply chain issues quickly. “Supply Chain Fix Alerts” have resulted in post-alert sales increases of up to +35%. www.getmobee.com Contact dowdy@getmobee.com to request a free pilot.

 

Sam’s Club announces top level job shifts, new focus on merchandise at The City Wire. “Brewer said the four “key elements” of the new focus are:
• Grow with higher household-income members and four high-value business segments;
• Drive relevant merchandise and deliver better value for our members;
• Acquire and retain the right members in the club and increase their spend, and
• Transform the club experience with digital.  Read more / See the org changes

 

Home Depot’s Mike Hibbison Touts Radio at Radio Ink. “Hibbison: “We have radio playing in all of our stores. Our customers like it. It’s in everything we do. It’s the one medium that’s stood the test of time.” Hibbison even gave remotes some love. “We still do them. They work for us. Our Atlanta manager said his traffic tripled after a radio remote. It’s old school but it still works.” Read more

 

Ad Age: Target Reviews Shops as It Expands Internal Programmatic Function by Alexandra Bruell. “(Target) is “focused on expansion of Target’s internal, modern CRM and data-driven marketing capabilities by considering partnerships in the following key areas: platform capability for cross-channel media activation (Programmatic, Social, Video, etc), complementary audience development and measurement and reporting products,” said a Target spokeswoman.” Read more

 

Chicago: Restoration Hardware’s Gold Coast showroom has to be seen to be believed by Brigid Sweeney at Chicago Crain’s. “The Chicago location “is the most controversial and ambitious project we’ve ever undertaken,” he said…an hour before (CEO) Friedman’s plane was about to take off to go back home to California, he decided to swing by the building at 1300 N. Dearborn. “I immediately said, ‘I think this is it,’ ” he remembered. “The building was a mess, but I still had goosebumps.” Read more / See the in-store pics

 

Happened Friday: Home Depot’s Craig Menear Appears on CNBC “Craig Menear, chairman, CEO and president of The Home Depot, was joined by Douglas C. Yearley, Jr., CEO and director of Toll Brothers, Michael B. Polk, president and CEO of Newell Rubbermaid and Chris Peel, COO of Rheem Manufacturing Company, to discuss the future of the home.” See the video / Read more

 

Man Admits to Smuggling $13M in Cigarettes Out of Virginia by Scott MacFarlane at NBC News 4. “I-Team cameras captured footage of Chen making bulk purchases at northern Virginia Sam’s Club and Costco stores. In one of those shopping trips, Chen purchased approximately $70,000 in tobacco.” Read more

 

Tipsheet Extra

Mattel’s high-tech attempt to save Barbie this Christmas

These 27 Young Influentials Are Shaking Up Media, Marketing, Tech and Entertainment

Costco Auto predicts GM promotion sales will top 52,000

Washington Post: Paul Allen’s $500 million quest to dissect the mind and code a new one from scratch

Last gun store closing for good in San Francisco

Costco executive strives for happy employees, members

Read Tipsheet Extra Stories

 

Eye on Retail Tipsheet is created early every weekday morning and read by retail merchants and executives worldwide. 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. See the website at www.eyeonretail.net

Today’s Tipsheet: Wmart +20 Baby Brands | Target Gets Apple Watch | H.Depot Settles Claim | EPA Hits T.Supply

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Walmart gears up for baby-related sales in effort win Millennial dollars by Kim Souza at The City Wire. “Over the past year or so we have added 20 brands to our baby department after listening to what young parents want,” Diana Marshall, vice president of Walmart’s baby division told The City Wire…it’s committed to lead the baby industry in the areas of product safety, national brands at low prices, and baby-clock shopping – a term Wal-Mart has coined to describe the moment parents find it most convenient to shop.” Read more

 

Target Rolling Out Apple Watch To US Stores On October 18th by Matthew Panzarino at TechCrunch. “This morning Target announced that it’s rolling out the Apple Watch to all of its US stores on October 18th. This marks the second big US chain after Best Buy to get the device. Apple Watch will roll out to Target.com later in October.” Read more

 

Home Depot settles gender discrimination claim by Kate Gibson at CBS Moneywatch. “(Home Depot) agreed to pay $83,400 to 46 female job applicants who were either not hired or who found themselves with cashier’s positions instead of sales associate positions…Ann-Marie Campbell, president of the retailer’s south division is a woman, and began with Home Depot as a cashier, (Stephen) Holmes said.” Read more

 

Rite Aid September Comp Sales +1.5% (Front-End -0.1%)  Read the release

 

Neiman Marcus cuts 500 jobs in reshuffling by Maria Halkias at Dallas Morning News. “Some Neiman’s employees and associates who asked not to be named said they were surprised about the timing of the layoffs. One said some people were reassigned and asked to take pay cuts. The layoffs targeted both longtime and new employees. The cuts also included people who recently won top in-house awards.” Read more

 

Former Amazon execs: Working at Amazon a cinch compared to startup life by Jacob Demmitt at GeekWire. “The discussion was moderated by David Streitfeld, the New York Times reporter who co-authored the now famous piece, “Inside Amazon, Wrestling Big Ideas in a Bruising Workplace….” Read more

 

The trouble with those 20 percent off coupons from Bed Bath & Beyond by Sarah Halzack at Washington Post. “In the most recent quarter, Bed Bath & Beyond reported that its revenue rose 1.7 percent, to $3 billion, but profit fell 10 percent, to $202 million, which company executives largely blamed on “an order of magnitude increase” in expenses related to coupons.” Read more

 

Wal-Mart Considers Open Sourcing Hybrid Cloud Tools by Kim S. Nash at WSJ. “Wal-Mart has been using the tools for two years, in part to reconfigure and add applications to faster, larger clouds during holiday shopping and other periods when activity spikes, said Jeremy King, chief technology officer for global e-commerce at Wal-Mart.” Read more (Subscription)

 

**A message from Pro-Chlor Septic Tabs – Homeowners with aerobic septic systems must properly chlorinate them or face fines upon mandated inspections. Flushable tabs don’t work here …only chlorine tabs made specifically for aerobic systems. Are they on your shelf? Contact info@shiftmarketinggroup.net for more information. 

 

Amazon adds automatic ordering capabilities to washing machines, dog bowls, printers and more by Tricia Duryee at GeekWire. “Some of the 11 new brands include GE’s new Wi-Fi-enabled washing machine, which will automatically reorder detergent; the Gmate SMART Blood Glucose Meter, which will order more testing supplies automatically; Samsung Laser Printers, which will monitor toner usage; Obe products, which will manage a dog’s food and water consumption and buy pet food when supplies run low…” Read more

 

Here’s What Whole Foods Offers to Laid-Off Employees by Hamilton Nolan at Gawker. “Multiple tipsters forwarded us copies of the letter that Whole Foods gave to employees who have been selected for layoffs…” See the letter / Read more

 

EPA: Tractor Supply Co. sold 28,000 imported ATVs and motorcycles that violated Clean Air Act via U.S News & World. “As part of the settlement the company will pay a $775,000 fine and implement new compliance standards.” Read more

 

Supervalu CEO Sam Duncan to retire by Mike Hughlett at Star Tribune. “The company also announced Thursday that Bruce Besanko, Supervalu’s chief financial officer, has been promoted to the newly created position of chief operating officer.” Read more

 

Amazon to halt sales of Apple TV and Google Chromecast, due to lack of compatibility with Prime Video by Tricia Duryee at GeekWire.  Read more

 

J.C. Penney Commemorates Suit Collection With Michael Strahan by Aria Hughes at WWD. “Swanky. It’s not the first word someone associates with J.C. Penney, but the event on Wednesday night that showcased its suit collection with Michael Strahan was exactly that…” Read more

 

Walmart Opens New eCommerce Fulfillment Center in Atlanta, GA  Read the release

 

Tipsheet Extra

The CFO of Home Depot shares her best financial advice – and it isn’t about money at all

Walmart Exec Karen Stuckey Elected Board Chair of Network of Executive Women

‘Publix Enemy #1’ Gets Multiple Items for Free with Price Match program

Home Depot’s oldest employee, turning 91, tells CBC the secret to a long life

A&P reveals $12.6 million in insider payments

Mall of America unveils 1M-square-foot luxury retail addition for 2018

Read Tipsheet Extra Stories

 

Eye-on-Retail Tipsheet is created early every weekday morning and read by retail merchants and executives worldwide. 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. See our website at www.eyeonretail.net

Today’s Tipsheet: WMT: HR Reserves HQ Rooms-Cuts Expected | Galanti Q&A for Q4 | Joaquin Bump | Winco Likes Small

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Wal-Mart to cut hundreds of jobs at headquarters by Nathan Layne at Reuters. “Fewer than 500 employees are expected to lose their jobs and an announcement could be made as early as this Friday, according to one of sources, who declined to be named because the move had not been made public.” Read more

 

…Sources: HR reserves rooms for Friday – Wal-Mart department directors told to cancel travel this week or make sure they come to the office on Friday by Sarah Nassauer at WSJ. Read more (Subscription)

 

FY’ 16: Costco to Build 32 New Stores in U.S. and Abroad by Angel Gonzalez at Seattle Times. “That includes the French location, but also two more warehouses in Madrid, Spain’s capital. Galanti conceded that Western Europe is a tough place to get into, “with all the rules, regulation and permitting process, but we’re pretty interested in continuing that process…Australia, which has two-thirds the population of Canada, has only seven locations while Canada has more than 80. “I’m not suggesting that we’re going to have two-thirds of that anytime soon, but we can add a few there,” Galanti said.” Read more

 

Whole Foods to stop selling products made by inmates at AP via LA Times. “The company said the products should be out of its stores by April 2016, if not sooner. Whole Foods said it has sold tilapia, trout and goat cheese produced through a Colorado inmate program at some stores since at least 2011.” Read more

 

Investors Bet On Joaquin With Home Supply Stocks by Dani Burger & Kate Garber at Bloomberg. “The projected path looks like the same projected path as Sandy which was a real benefit for Home Depot and Lowes in the aftermath,” Jaime Katz, an equity analyst at Morningstar Investment Service in Chicago, said by phone.” Read more

 

Chicago: Target’s first two Freshii locations set to open Oct. 12 by Ally Marotti at Chicago Crain’s. “Forty percent of Target customers use the cafes, which are the first thing they see after walking into the store, a Target spokeswoman said in an email…“This was about what does Target Cafe want to be when it grows up?” (Matthew Corrin) said. “The answer was, Target Cafe should be Freshii.” Read more

 

Wal-Mart director talks buying local at NC college by Lauren K. Ohnesorge at Triangle Business Journal. “(Joe Quinn) says he’s still concerned about accessing the domestic talent required to sustain the manufacturing industry. “We are a funny society,” he says. “We just spent 30 years telling our kids they should go to four-year college. … Everybody should get a four-year degree and the reality is, for years, we didn’t pay any attention to the pipeline going into manufacturing.” Read more

 

**A message from Hot Shot Insecticides – While you’re away, what creepy-crawlies are at play? Be the hero with Hot Shot(R) Insecticides — our household bug solutions root out hidden insect pests before they move in and multiply. It’s the clear advantage at home and in the checkout line. Save the day! See our videos | Visit us on Facebook

 

Retailers appeal to Capitol Hill regarding microchip mandate by Cory Bennett at The Hill. Read more

 

Twin Cities: Fresh Thyme brings new dynamic to grocery market by Mike Hughlett at Star Tribune. “Fresh Thyme plans to open 10 to 12 stores here in the next four or five years, with deals signed for six more Twin Cities locations beyond Bloomington.” Read more

 

Winco is kicking the tires on smaller stores by Andy Giegerich at Portland Business Journal. “Typically, Winco’s groceries occupy around 80,000 square feet. “We’ve begun doing a few more of these smaller models, as infill projects, and they’re performing well,”(Michael) Read said. “We’re looking for infill opportunities that operate successfully without cannibalizing our other stores.” Read more

 

Instacart hires first CFO amid growing IPO buzz by Riley McDermid at San Francisco Business Times. ““[We are not] being specific about that next phase. It’s just about having more partner retailers, more markets, more customers, and continuing to grow,” (Ravi) Gupta said. “Whether we do that in the private or public market isn’t something we’re talking about right now.” Read more

 

Woodman’s president submits complaint over Meijer’s ‘ridiculous’ low prices by Alison Bauter at Milwaukee Business Journal. “…It includes photos of bulk coffee priced on sale for $4.98. “Normally we don’t turn others into you but: this is ridiculous!!” writes Woodman, who goes by Phil.” Read more

 

Tipsheet Extra Stories

Aerial photos show Amazon’s epic biospheres taking shape in Seattle

Michael Jordan in settlement talks with Jewel over alleged misuse of name

Microsoft to open its largest store ever in NYC, first international flagship site in Sydney

Sneak peek inside new Dillard’s at Liberty Center (Cincinnati)

Amazon denies breaking UK air transport rules

Infographic: The 24 Most Inspirational Company Mission Statements

Read Tipsheet Extra Stories

 

Costco Q4 Earnings Call Highlights

Richard Galanti, CFO

FY 2016 – plans are to add up to 32 net new warehouses, including a few business centers in the U.S.

18 to 20 of the planned new locations will be the United States with the remaining in international markets, including our second opening in Spain and our first opening planned for France.

Internationally in local currencies, the strongest results in Australia, Mexico, Taiwan, and Spain.

The better-performing departments were deli, sundries and candy.

Hardlines: low single-digit range, better-performing departments were sporting goods, hardware, and automotive.

Consumer electronics: negative low single-digit year-over-year positive

Softlines: comps were in the low single-digit range, better-performing departments, including home furnishings and domestics.

Fresh foods: comps were in the low single-digit range as well with best results in deli, produce and meat.

We continue to enjoy strong renewal rates, 91% in the U.S. and Canada and 88% worldwide.

Total e-commerce sales came in just under $3.5 billion, up a little over 20% for the year.

I think we feel comfortable that over the next five years we will continue to open 30-ish plus units a year.

Read the full transcript via Seeking Alpha

 

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