Archive for month: May, 2016

RETAIL EARNINGS PARADE THIS WEEK:

Tuesday: Home Depot, TJX

Wednesday: Target, Lowe’s

Thursday: Walmart, Dick’s

Amazon is going to sell its own lines of food, detergent and diapers by Jason Del Rey at Recode. “The e-commerce powerhouse will soon begin selling its own packaged goods, exclusively to Amazon Prime members under brands like Happy Belly and Mama Bear, the Wall Street Journal reports.” Read more

Wall Street Journal: Amazon to Expand Private-Label Offerings by Greg Bensinger. “While the full lineup couldn’t be ascertained, Amazon previously applied for trademark protection for foods including pasta, granola, potato chips and chocolate, as well as razors and air deodorizers. Amazon’s plans also include the Presto! line of household products such as laundry detergent and the Mama Bear brand for baby products like diapers, baby-food jars and gentle detergent, these people said.” Read more (subscription)

Kroger exec: Urban stores will be part of our growth by Bowdeya Tweh at Cincinnati Enquirer. “Kroger is planning to open 90 stores around the country this year, Hodge said. Those stores range in size from the 113,000-square-foot “Marketplaces” with groceries, apparel, toys and home goods to the 18,000-square-foot low price warehouse format Ruler Foods.” Read more

DISAPPOINTING – Sports Authority Bids from Dick’s and Modell’s considered “disappointing” and for fewer stores than initially expected by Lillian Rizzo at WSJ. “Dick’s, which one equity analyst said could make an offer for 180 stores, instead placed a bid for less than 20 stores; Modell’s made an offer for a small handful of stores, the person added.” Read more (subscription)

** A message from The 2016 National Stationery Show – We’re open for business today through Wednesday! Celebrating 70 years and the ONLY stationery market in North America! May 15-18 at Javits Center, NYC. Come and discover new & unique products from 800 exhibitors. Show categories | Website | Register now

NY Times: Amazon Proves Infertile Soil for Unions, So Far by Nick Wingfield. “…Mr. Wadach said the union did not help his family financially after his father died suddenly in front of their house, not even bothering to send a condolence card, according to three current workers at the warehouse who heard him speak and asked for anonymity for fear of losing their jobs. The problem with Mr. Wadach’s story was that much of it appears to have been untrue…” Read more

SETTLEMENT – Lowe’s Settles Employee Leave Lawsuit for $8.6 Million via ABC News. Read more

Fortune: World’s Greatest Leaders (Bezos #1, Ellison #19) See the list of 50

REI WINS – REI’s ‘#OptOutside’ Campaign Takes Best of Show at the One Show by Ann-Christine Diaz at Ad Age. “The award was announced at the One Show’s final awards ceremony, hosted by “Unbreakable Kimmy Schmidt” actress Ellie Kemper at Cipriani Wall Street on Friday Night.” Read more

USPS PACKAGE VOLUME BOOM – Package volume grew by over 1 billion packages in the last three years – delivered one-third of all domestic packages in the United States by Ina Steiner at EcommerceBytes. Read more

Whole Foods president: new 365 chain ‘another tool’ for grocer by Shan Li at LA Times. “Patrick Bradley, Whole Foods’ president of the southern Pacific region, which includes the Southern California, said his team has been looking at real estate in cities like Riverside. They’re “places where traditionally we wouldn’t go into,” Bradley said… “We’re going to go into cities where we’re not going into now.” Read more

COSTCO CAMPAIGN – Jimmy Kimmel Launches Vice Presidential Campaign, Sells Merch At Costco by Carman Tse at laist. “He said on Friday that Southern California Costcos would have pop-up stores this weekend with #KimmelForVP clothes.” See the pics / Read more

Meghan Trainor Does Surprise Performance At Target via Perez Hilton. “Simply backed by an acoustic guitar, the songstress gave an intimate performance of her hit No — and the most adorable little girl in the world danced along to the entire song.” See the video / Read more

Tipsheet Extra Stories

Couple forgo traditional engagement pictures to get snapped in Costco instead

PETA Opened a High-End Leather Store, but Inside the Goods Was Something Horrible

19% of Internet-using households have been impacted by an online breach

Wal-Mart expected to report lower earnings, wage and training spending to hurt margins

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TARGET CEO APPEARS ON CNBC – What you’re missing about our inclusive bathroom policy by Matthew J. Belvedere. “Target Chairman and CEO Brian Cornell said Wednesday its bathroom policy fits the retailer’s long history of “embracing diversity and inclusion.” Cornell told CNBC’s “Squawk Box” he wants everyone to feel welcome at his stores but stressed that safety is also very important.” See the video / Read more

COMPARISONS AND OLIVE BRANCHES – Target CEO says Target stands by transgender policy just as it did for blacks in ’60s by Kavita Kumar at Star Tribune. “At the same time, he offered an olive branch to those who have been upset by the policy and said the company will add family restrooms to all of its stores, an option for people who worry about the mixing of sexes in bathrooms.” Read more

Kohl’s Q1 Comp Sales -3.9% “Kevin Mansell, Kohl’s chairman, chief executive officer and president, said, “First quarter sales were challenging.” Read the release

…Kohl’s Profit Falls 54% in Q1 via Nasdaq. “The company said its profit declined to $58 million, or $0.31 per share. This was down from $127 million, or $0.63 per share, in last year’s first quarter. Analysts had expected the company to earn $0.37 per share.” Read more

CNBC: Macy’s results reminiscent of financial crisis by Krystina Gustafson. “Macy’s dismal first-quarter results are bringing back unwelcome memories of the financial crisis, as the retailer on Wednesday reported two metrics that harken back to that period of economic malaise…” Read more

PUZZLED IN CINCY – Investors question Macy’s strategy in tough earnings call by Andy Brownfield at Cincinnati Business Courier. “I would say that we too are somewhat puzzled by the data that we’re seeing on the consumer and the traffic we’re seeing on the stores and on the site” (CFO Karen Hoguet) said.” Read more

Wal-Mart Bets on Free Two-Day Shipping via Fox Business. “Starting Thursday, ShippingPass members will get free two-day shipping for $49 a year, says a Wal-Mart spokesman. He declined to say how many people have signed up for the service, which is only available by invitation.” Read more

WOOED CARRIERS – Wal-Mart Bets on Free Two-Day Shipping by Laura Stevens & Sarah Nassauer at WSJ. “In February, Wal-Mart invited several regional delivery companies to a conference in Atlanta where it outlined its vision of building a network of regional delivery companies and solicited bids, according to the people familiar with the plans. Wal-Mart wooed the carriers with promises of steady streams of package volume and a strategic partnership, these people said.” Read more (subscription)

**A message from 2016 Sweets & Snacks Expo – The Expo is Sold Out and Less than Two Weeks Away! The 2016 Expo will set an all-time record in volume of confectionery and snack products with more than 720 companies showcasing nearly four acres of product innovation. Don’t miss the one place where more confectionery and snack retailers and manufacturers come together to get inspired, make connections and find new best sellers. Exhibitor List | 2016 New Exhibitors | Retail execs on the taste panel | Website

NY Times: Whole Foods’ Scaled-Down 365 Store Has Robots, but No Tattoo Parlor by Stephanie Strom. “There’s a lot riding on a robot — the teaBot, to be exact — but not for the Canadian start-up behind the machine. Rather, it is 365, the much anticipated new grocery concept from Whole Foods Markets, that is banking on the robotic kiosk and a host of other bells and whistles to reverse the company’s waning fortunes. The first store, here in Silver Lake, a neighborhood in the East Side of Los Angeles, opens in two weeks…” Read more

…Whole Foods’ first 365 store in L.A. is designed to attract new shoppers by Shan Li at LA Times. “On Wednesday, 365 President Jeff Turnas gave a hard-hat tour of the new shop, which was still crawling with construction workers busily installing equipment…The shelves are lower than ones in many Whole Foods stores…”We want 365 to speak to a wider audience,” Turnas said. “We want it to be easier to navigate, not intimidating.” Read more

1 in 3 American malls are doomed: Retail consultant Jan Kniffen by Tom DiChristopher at CNBC. “On an apples-to-apples basis, we have twice as much per-capita retail space as any other place in the world. The U.K. is second. They’re half of what we are. So, yes, we are the most over-stored place in the world,” he told CNBC’s “Squawk Box.” Read more

Sears planning smaller-format appliance stores by Lauren Zumbach at Chicago Tribune. “Chairman and CEO Edward Lampert said the retailer is planning a smaller-format appliance store in Fort Collins, Colo…”We have and we will be trying a lot of things,” Lampert said, adding Sears will “probably” add more of the focused, small-format stores in 2016.” Read more

Theranos’ COO retires as the troubled bio-tech startup overhauls its organizational structure by Catherine Shu at TechCrunch. Read more

Retail Marketers to Lead Digital Ad Spending Through 2020 by Nathalie Tadena at WSJ. “EMarketer projects that retailers in the U.S. will increase spending on paid digital advertising by 15% this year to $15.09 billion, accounting for 22% of digital ad spending in the country. The sector’s investment in mobile advertising is expected to jump 52% in 2016.” Read more (subscription)

Luxury Retailer Pirch Taps Design Celebs to Market Its New York Debut by Adrianne Pasquarelli at Ad Age. “Pirch, the high-end home appliance store known for letting its customers take a shower or heat up some eggs on premises, is opening a flagship in New York and it’s debuting a new campaign to spread the word. The retailer, which will open a 32,000 square-foot showroom in SoHo May 21, has tapped celebrities such as Nate Berkus, Padma Lakshmi, Geoffrey Zakarian and Iris Apfel to market its brand…” Read more

Handmade at Amazon expands – New categories offer more than 20,000 items sold directly from Artisans Read the release

Dallas’ north-south divide on display as city wrestled with giving Costco $3 million by Robert Wilonsky at Dallas Morning News. “Let’s just say it,” said council member Philip Kingston. With $3 million, “we could fund animal services at a level that keeps people from being eaten by dogs.” Read more

Alexa Will Now Track Delivery of Your Amazon Packages by Leena Rao at Fortune. “If you’re expecting packages from Amazon, you simply ask Alexa, through the Echo, when your next package will arrive. Alexa will also tell you who placed the order in your household and when.” Read more

What did Google’s last search results change mean for retailers? by Zak Stambor at Internet Retailer. “Google’s elimination of text ads from the right side of its desktop search results pages meant that consumers were seeing 30% fewer ads, but the change decreased impressions only 10%, Adobe says. The move was slightly more pronounced for retail-related searches, where impressions dipped 15%.” Read more

Pinterest adds former Amazon exec and growth expert Michelle Wilson to its board by Sarah Perez at TechCrunch. “Wilson has a background in global growth and talent acquisition, both of which are key areas of focus for the popular bookmarking service.” Read more

Tipsheet Extra Stories

Analysis: Police Visit Walmart Stores Four Times More Often Than Target

Calvin Klein is blasted for underwear ad featuring an upskirt shot of a model

The 10 Cities Where the Middle Class Is Vanishing the Fastest

How to lose a billion dollars: Beer heiress’s story of survival

Krebs: Wendy’s Breach Affected 5% of Restaurants

‘Bill Gates should be worried’: 14 year old CEO turns down $30 million buyout for his innovative vending machines

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Marimekko for Target was no Lilly Pulitzer, but still signs it was a success by Kavita Kumar at Star Tribune. “Ecommerce analytics firm Slice Intelligence says the merchandise helped bring new customers to Target.com and increase spending on the site. About 38 percent of those who shopped the collection online had not shopped Target.com in the previous six months.” Read more

J.C. Penney flips home sales focus from furniture to appliances by Maria Halkias at Dallas Morning News. “(J.C. Penney) is moving forward into the major home appliance business and will be adding kitchen and laundry showrooms to 500 of its stores by this fall and online later this summer. Also, Penney has two more home department tests in the works: It will sell flooring with national carpet and flooring company Empire Today.” Read more

…What Sales Problem? J.C. Penney Profit Still on Track by Phil Wahba at Fortune. “J.C. Penney said on Monday that its profit in the first fiscal quarter came in higher than expected, providing reassurance to investors worried that its turnaround may be stalling and subtly refuting a media report last week saying weak April sales were hurting its bottom line.” Read more

AMAZON’S WORKFORCE NEARLY A QUARTER OF A MILLION – Full-time jobs at Amazon grow at rapid pace in first quarter by Angel Gonzalez at Seattle Times. “The employment data, disclosed on a website Amazon dedicates to portraying its economic impact in the U.S., comes at a time of rapid expansion at the tech and retail giant, which in the quarter added a net 14,400 full-time and part-time employees to an international workforce that now reaches 245,200. That represented a 6.2 percent increase from the end of December.” Read more

Retired Kroger Exec to Address Xavier Students by Erin Caproni at Cincinnati Business Courier. “Recently retired Kroger Co. group vice president of corporate affairs and current executive director of the Child Poverty Collaborative Lynn Marmer will address the 709 undergraduates who will receive degrees at 9 a.m. on Saturday.” Read more

Gap’s Bloodbath Continues As April Sales Plummet by Phil Wahba at Fortune. “The Gap brand’s comparable sales fell 4% last month, while at Old Navy the drop was 10%, and at Banana Republic it was 7%. That compares to analyst expectations for Gap rising 0.5%, a tiny 0.1% drop at Old Navy, and a 5.9% decline at Banana, according to Consensus Metrix.” Read more | Press release

FDA Seeks to Redefine ‘Healthy’ by Annie Gasparro at WSJ. “What’s healthier than a Pop-Tart? Not almonds, according to today’s regulatory rules…The FDA said in a statement to The Wall Street Journal that in light of evolving nutrition research and other forthcoming food-labeling rules, “we believe now is an opportune time to reevaluate regulations concerning nutrient content claims, generally, including the term ‘healthy.’ Read more (subscription)

**A message from 2016 Sweets & Snacks Expo – The Expo is Only Two Weeks Away!  The 2016 Expo is sold out and will set an all-time record in volume of confectionery and snack products with more than 720 companies showcasing nearly four acres of product innovation. Don’t miss the one place where more confectionery and snack retailers and manufacturers come together to get inspired, make connections and find new best sellers. See this year’s exhibitors | 2016 New Exhibitors | Retail execs on the taste panel | Website

The Container Store co-founder and CEO Kip Tindell steps aside by Maria Halkias at Dallas Morning News. “Sharon Tindell will become president in addition to her current job of chief merchandising officer. She’s practically a co-founder, and over the years has discovered more storage and organization products and adapted them for the consumer market than anyone in the industry.” Read more

Lumber Liquidators sales sink 10.2% amid struggle to reassure customers via CNBC. “Sales at the company’s stores open at least a year fell 13.9 percent in the first quarter. Analysts on average had expected a 12.6 percent drop, according to research firm Consensus Metrix.” Read more

Q&A with Brian Tilzer, chief digital officer of CVS Health by Mark Brohan at Mobile Strategies. “18.8 million people have enrolled in text messaging and in 2015 CVS sent 300 million prescription text messages reminders to customers and generated 13 million mobile visits per month, accounting for 3 million weekly visits on average.” Read the Q&A

To combat image issues, Walmart bets big on its own newsroom by Shareen Pathak at Digiday. “Next: It’s working on a podcast about Walmart…Since becoming more proactive, Mitchell said there has been a 15 percent lift in reputation for the company — mostly in a change in how people perceive Walmart’s treatment of employees.” Read more

Report: Dick’s Sporting Goods could get 180 stores out of Sports Authority auction via MarketWatch. “Canaccord analysts believe Dick’s could “quickly take over 80 stores,” but they believe the sporting goods chain could acquire up to 180 leases.” Read more

Ex-Lowe’s Exec Joins Dollar Tree Board “At Lowe’s, (Gregory) Bridgeford was promoted to chief customer officer in 2012, after serving as executive vice president of business development since 2004. Bridgeford joined Lowe’s in 1982.” Read the release

Q&A with Hudson Bay President Liz Rodbell by Craig Dowden at Financial Post. “One of the more challenging pieces of feedback I received was one of the best and I got it shortly after I started working with Lord & Taylor. I was very results driven, as I am today, but I didn’t understand the full perspective of the company. The guidance was about stepping back and looking at the bigger picture and realizing that it wasn’t just about my results.” Read the Q&A

Amazon Sets the Table for Its Own Meal Kit Delivery Service by Eugene Kim at Business Insider. “Tyson Foods CEO Donald Smith reaffirmed in its earnings call on Monday that it’s working with Amazon Fresh on a new “chef-inspired, meal kits service” called Tyson Taste Makers for launch this fall.” Read more

Ingles Markets Q2 Comp +1.6% Read the release

Dollar General plans Georgia DC and 500 jobs via Atlanta Business Chronicle. Read more | Press release

Record-Breaking Container Ship Ends Brief U.S. Service by Erica E. Phillips at WSJ. “In February, CMA CGM…named Shelley McMillon, wife of Wal-Mart Stores Inc. Chief Executive Doug McMillon, “Godmother” of the vessel. At the time, CMA CGM founder and Chief Executive Jacques Saadé told the crowd that the company was so confident in the U.S. economy and the demand for freight capacity that the carrier planned to launch six more vessels of the same size…” Read more (subscription)

Tipsheet Extra Stories

Man kicked out of WinCo store for bringing his parrot inside

Marriage made in Macy’s – Man proposes in store

Marvel Expands Exclusive Digital Comics Agreement With Amazon

Investors pour another $30 million into second-hand fashion site Tradesy

Polymer can restore skin’s youthfulness

White House says non-compete agreements stifle innovation, calls for reform

How Zika Delivered a Swarm of Nervous Customers to Bug Spray Brands

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Macy’s Woos Millennials With Ramped-Up Wedding Business by Phil Wahba at Fortune. “We have an opportunity to service the couple throughout the entire wedding journey, not just at the point of registry,” Shawn Outler, the Macy’s senior vice president overseeing the wedding strategy, told Fortune on a tour of the retailer’s Manhattan flagship. “We weren’t quite messaging to those opportunities but we knew we were selling the product.” Read more

Canada: Loblaw aims to add medical marijuana by Marina Strauss at Globe & Mail. “Galen G. Weston, executive chairman of Loblaw, which acquired Shoppers Drug Mart two years ago, said on Thursday that the company is part of a pharmacy industry initiative to push for the sale of medical marijuana at drugstores across the country.” Read more

Study: What Retailers Make Women Feel Good? by Sarah Mahoney at MediaPost. “Amazon, Publix, Victoria’s Secret, Costco, and Sephora are the five retailers most women say make them feel good while shopping…Whole Foods Markets, Nordstrom, Ulta, Aldi and Bath & Body Works also made the top-10 “feel good” retailers.” Read more

NY Post: JCPenney taking emergency measures to stay afloat by Lisa Fickenscher. “As the end of its first fiscal quarter approached, the mid-priced department store told store managers to take the emergency measure because the chain faced “an expense challenge,” according to an internal memo obtained by The Post. “We have an expense challenge for the month of April and are asking all stores to do their fair share by closely monitoring all expenses,” the memo said.” Read more

Judge Tosses Suit Against Walmart and J.C.Penney Over Bangladesh Clothes Factory Collapse by Hannah Sheehan at Law 360. Read more

FORT MCMURRAY RELIEF EFFORTS

Walmart Canada makes immediate $500,000 commitment Read the release

Home Depot Canada Donates $100,000 To Help Those Affected By Alberta Wildfires Read the release

BJ’s Appoints Chief Growth Officer “Lee Delaney will be responsible for the Company’s merchandising and supply chain organization, and will report directly to BJ’s President and CEO Chris Baldwin.” Read the release

**A message from Man Dip – Sour cream is for sissies – Eat like a man! Sour cream is something you slap on a baked potato – it is not a dip! Man Dip uses real cream cheese loaded with chunks of meat and peppers to create dips that are rich and savory with just the right amount of kick. Protein rich – Gluten free – Served hot. See the five new flavors | Top 5 New Dairy Product | Retailers request a sample pack at info@shiftmarketinggroup.net

Jeff Bezos sells $671M worth of Amazon shares in his largest stock sale ever by Todd Bishop at GeekWire. Read more

Apple VP of Online Retail Bob Kupbens leaves company by Marc Gurman at 9 to 5 Mac. “It is currently unclear if Kupbens’s replacement will be an outsider or someone promoted from within.” Read more

Finalists announced for Retail Council of Canada’s Excellence in Retailing Awards “87 finalists from 50 retail companies are in the running for the prestigious awards, which recognize the pinnacle achievements of retail organizations in 10 retail categories.” See the finalists

BJ’s is Consumers’ Favorite Box Store for Fuel (Takes Top Spot from Costco) “Costco dropped to second, Kroger ranked third and Sam’s Club dropped a spot to fourth. When Market Force looked at the attributes that drive customer satisfaction, Costco led in three of the five categories, including fuel price, fuel quality and appearance. However, it lagged behind for ease of entering and exiting and availability of cleaning tools at the fueling area.” Read the release

What happens if Bass Pro acquires Cabela’s? by Thomas Gounley at News-Leader. “Yates said he believed the most natural targets of consolidation would be Bristol, the greater Chicago area — where each company has two stores — and Colorado.” Read more

Amazon Leases 20 More Planes For Air Cargo Network by Leena Rao at Fortune. Read more

CEO of Claire’s Stores resigns by Becky Yerak at Chicago Tribune. “The new CEO is Ron Marshall, who has been a board member since December 2007.” Read more

Best Buy hires former Accenture exec Trish Walker to lead Geek Squad by Nick Halter at Minneapolis/St.Paul Business Journal. “Walker was most recently senior managing director of Accenture’s retail practice, and her bio on Best Buy’s website says she worked with Nordstrom, CVS, L.L. Bean, Macy’s and The Limited.” Read more

Gilt Groupe’s CEO is becoming a venture capital investor by Jason Del Rey at Recode. “Michelle Peluso, the Gilt Groupe CEO who led a failed turnaround of the discount shopping site, is joining Technology Crossover Ventures as a venture partner in New York City.” Read more

Louisville: Sand sculptor gives Kroger shoppers a little taste of Derby fever by Brandi Ratterman at WDRB. “A 20-ton pile of sand in the parking lot was turned into a work of art by international grandmaster sand sculptor Damon Farmer Thursday.” See the video / Read more

Tipsheet Extra Stories

At Best Buy, women make up the majority of company’s leadership team

Chicago: Thieves Hit Neiman Marcus in Broad Daylight on Magnificent Mile

Weber grills maker sues competitor in three-legged case

Top 5 Fashion E-commerce Websites That Change The Way You Shop

Company grants family’s final wish – makes urn in the shape of White Castle Slider

Who are the Top 10 Global Licensors?

Kelly Ripa and Michael Strahan face off in tense retail battle

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