Archive for year: 2016

 

Costco January Comp Flat / +4.0% ex-gas & F/X “Costco reported net sales of $8.32 billion for the month of January…an increase of two percent from $8.15 billion during the similar period last year.” Read more

 

Lowe’s $2.3 Billion Bid For Rona Sets Off Political Firestorm in Canada by Phil Wahba at Fortune. “Pierre-Karl Péladeau, the former media magnate (think Quebec’s Rupert Murdoch) now heading the secessionist Parti Québécois, had denounced the deal on Twitter and is calling on the pro-business governing Liberal Party, headed by Philippe Couillard, to block the deal.” Read more

 

…A BANNER DAY FOR RONA CEO – Rona CEO’s equity holdings to increase $14-million with Lowe’s deal by Janet McFarland & Jacqueline Nelson at Globe & Mail. “Wednesday was a lucrative day for Rona Inc. chief executive officer Robert Sawyer, who saw the value of his shares and stock options climb by $14-million under Lowe’s Cos. Inc.’s friendly takeover offer for his hardware chain. After fewer than three years in the CEO job, Mr. Sawyer stands to reap more than $22-million from his equity holdings if the takeover bid is concluded at the $24-a-share offering price announced by Lowe’s early Wednesday.” Read more

 

TARGET’S CORNELL SPEAKS TO BOSTON GROUP – In Boston, Target CEO speaks about adapting to ecommerce by Megan Woolhouse at Boston Globe. “Stores still matter,” he said, but Target “has to do things differently.”…Cyber security also remains a major concern for Target, the victim of one the nation’s biggest data thefts in 2013. “I consider this to be one of the biggest threats to commerce in America,” Cornell said.” Read more

 

Q&A with Target & CVS CEOs by Nathan Bomey at USA Today. “Q: Walmart recently announced it’s closing some of its smaller stores. Is that an indication of general trouble for that format? Cornell: No, I think we’ve taken a very different approach from Walmart as we’ve moved into these urban settings. They effectively were opening up small grocery stores.” Read the full Q&A

 

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Kohl’s Q4 sales ‘very volatile’ – cuts 2015 profit forecast at Reuters. “Kohl’s said it expects 2015 earnings to be $3.95-$4.00 per share, excluding losses from debt repayment. Kohl’s had earlier expected earnings to be at the low end of $4.40-$4.60 per share.” Read more | Read the release

 

Wal-Mart to operate its own gas stations by Sarah Nassauer at MarketWatch via WSJ. “When building new stores, Wal-Mart plans to add its own gas stations to as many as possible, said (Randy) Hargrove.” Read more | Read WSJ article (subscription)

 

Krebs: Safeway Self-Checkout Skimmer Close Up “…images from a recent skimming attack allegedly launched against self-checkout shoppers at a Safeway in Maryland offers a closer look at once such device…The device is designed to fit directly over top of the Verifone terminals in use at many Safeways and other retailers.” See the pic / Read more

 

NY Times: Walmart Sues Puerto Rico, Claiming an Unfair and Onerous Tax Burden by Mary Williams Walsh. “The tax “sentences Walmart in Puerto Rico to death, for a crime there is no evidence it committed,” Walmart’s lawyer, Neal S. Manne, told the court. “No business can operate for long in an environment where 91.5 percent of its net income is confiscated through taxes,” the company said in its complaint.” Read more

 

Meet the Guy Behind Amazon’s Secret Retail Store Plans by Jason Del Rey at Recode. “(Steve) Kessel is widely respected inside Amazon, where he is known as a low-ego leader with greater emotional intelligence than some other senior executives at the company, according to two sources. He joined Amazon in 1999 and left in 2011 or 2012 to take a sabbatical. He started working on this initiative when he came back, these people say.” Read more

 

…Retail CEO backs down from statement about Amazon’s plan to open 400 bookstores by Taylor Soper at GeekWire. “Chief Executive Officer Sandeep Mathrani has indicated that a statement he made concerning Amazon during GGP’s earnings conference call held on February 2, 2016, was not intended to represent Amazon’s plans.” Read more

 

Fred’s January Comp Sales +0.7% “Fred’s total sales for the month increased 12% to $155.7 million from $139.6 million in January 2015.” Read the release

 

Amazon’s giant Seattle biodomes start getting huge steel exoskeleton by Todd Bishop at GeekWire. “Office workers from nearby office buildings watched from the surrounding sidewalks on Tuesday afternoon, as sparks flew into the sky at the end of a rare sunny day in February in Seattle city. The steel pieces are going up on multiple sides of the three biodome structures, north of Lenora Street between Sixth and Seventh avenues.” See the pics / Read more

 

UPS’s Q4 daily shipments grow 2.4% on strong e-commerce volume by Tracy Maple at Internet Retailer. “About half of UPS’s business is now retail e-commerce, chief commercial officer Alan Gershenhorn said on the call.” Read more

 

Rite Aid Stockholders Approve Merger Agreement with Walgreens Boots Alliance Read the release

 

Tipsheet Extra Stories

HBR: How the Rise of the Post Office Explains American Innovation

Supervalu discloses pay and perks for new CEO Mark Gross

P&G’s ‘Rebloom’ Fighter

CDC advises women of child-bearing age not to drink at all

Master Brands wants eco-friendly paint in U.S. Walmart, Sam’s Club

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Lowe’s to Acquire RONA “The Transaction has been unanimously approved by the Boards of Directors of Lowe’s and RONA and is supported by the management teams of both companies. The Transaction is expected to proceed by way of a plan of arrangement by which Lowe’s would acquire all of the outstanding shares of RONA” Read the release

 

Target’s downtown Minneapolis employment drops 25 percent by Sam Black at Minneapolis/St.Paul Business Journal. “Target has 7,500 employees working in downtown Minneapolis, a decline from 10,000 workers in 2015, according to figures released Tuesday by the Minneapolis Downtown Council.” Read more

 

Amazon reportedly to open as many as 400 physical bookstores by Taylor Soper at GeekWire. “Expanding to 400 stores would be a substantial move from Amazon, with the WSJ noting that it would take years to find the right locations and hire employees to run the stores.” Read more

 

…WSJ: “(Amazon) plans to open as many as 400 bookstores, Sandeep Mathrani, chief executive of mall operator General Growth Properties Inc., said on an earnings call on Tuesday. “You’ve got Amazon opening brick-and-mortar bookstores and their goal is to open, as I understand, 300 to 400,” said Mr. Mathrani in response to a question about mall traffic.” Read more (subscription)

 

Walmart Canada brings ‘click and collect’ online grocery service to Toronto by Hollie Shaw at Financial Post. “It’s going really well in Ottawa — the response has been phenomenal,” said Simon Rodrigue, senior vice-president of e-commerce for Walmart Canada. “We know we have a service here that Canadians want,” he added, anticipating the service will roll out to other areas of the country.” Read more

 

Think You Stink at Math? Amazon Wants to Change That. by Jason Del Rey at Recode. “The company, along with partners including Stanford University and the National Council of Teachers of Mathematics, is launching an initiative called “With Math I Can,” in an effort to get teachers and students to change their ideas about the subject.” Read more

 

First group of Target pharmacies switch to CVS banner by Kavita Kumar at Star Tribune. “Now that we’ve got the pilot stores under our belt, you’ll begin to see the pace with which we’ll do these conversions ramp up very quickly,” Larry Merlo, chief executive of CVS, said in a joint phone interview with Target chief Brian Cornell. “We expect to be done sometime this summer.” Read more

 

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Kravis Joins Demi Moore, John Legend in Backing Organic-Food Startup by Craig Giammona at Bloomberg. “The company, which sells nonperishable items, calls itself an online cross between Whole Foods and Costco. Members pay a $60 subscription fee to access a portfolio of about 4,000 mostly organic and non-GMO products at discounted prices.” Read more

 

STUDY: The findings on how consumers actually behave after breaches by Michael Santarcangelo at CSO. “… the data indicates that older consumers are more likely to defect because of the breach with nearly three quarters of the defectors being over the age of 46.” Read more

 

Cramer: Restoration Hardware Faces Cold, Hard Facts at The Street. “…the stock just hit a new 52-week-low and is off 29% for the year. That’s just mind-boggling. It’s killed anyone who owns it. What does it say? I think the verdict is this: The stock didn’t belong as high as it was to begin with.” Read more

 

Costco plans first Lake Norman location in Mooresville, NC by Joe Marusak at Charlotte Observer. Read more

 

First U.S. Zika virus transmission reported, attributed to sex via Reuters. “The American Red Cross on Tuesday asked blood donors who have traveled to Zika virus outbreak areas such as Mexico, the Caribbean, or Central or South America to wait at least 28 days before donating.” Read more

 

Publix Announces Entry into Virginia  Read the release

 

Kroger Names Two New Division Presidents “Kroger promoted Zane Day to serve as president of the company’s Nashville division…Katie Wolfram to serve as president of the company’s Central division.” Read the release

 

Albertsons Promotes Pattison to Senior Vice President, Digital Marketing & eCommerce “She began her career at Safeway in 2006 as the Director of Product Management on the eCommerce team, and was promoted to Group Director of Loyalty Product Management in 2011…” Read the release

 

Can Amazon’s new ‘dream team’ fix the company’s sustainability reputation? by Marc Gunther at The Guardian. “They’ve hired great people,” says sustainability consultant Andrew Winston. “But we really don’t know what they’re doing. Amazon is a very quiet company.” Read more

 

REI to Add New Stores in New York and Florida over Next Two Years Read the release

 

Kors shares jump as less bad is good enough by Krystina Gustafson at CNBC. “Despite their beat, Kors’ comparable sales declined 0.9 percent. While that was better than Wall Street’s projection for a 4.4 percent decline, and an improvement from an 8.5 percent decline in the second quarter.” Read more

 

How Google And Instacart Are Hijacking The Grocery Business From Supermarkets by Barb Stuckey at Forbes. “…the consumer relationship is now slowly being hijacked away from the grocery retailer, whose primary role will soon be to serve as a distribution center from which Google or Instacart picks their inventory.” Read more

 

Tipsheet Extra Stories

Why a top food poisoning expert won’t ever eat these foods

Thief Hides In Reynoldsburg Sam’s Club, Steals Garbage Bag Full Of Jewelry

Lowe’s Names Vice President of Loss Prevention & Operations Support

Canada: Ruling reinstates ban on customer loyalty programs in pharmacies

Costco is checking out this new site in Dallas

Amazon’s Drone Testing Takes Flight In Yet Another Country

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Amazon Inks Production Deal with Mattel to Greenlight American Girl Specials for Prime Video “…it has signed a multi-year, multimillion dollar production deal with American Girl…to produce four live-action specials and options to produce multiple seasons of episodic content.” Read the release

 

Consumer Spending Unchanged in December via Fox Business. “Economists polled by Reuters had forecast consumer spending, which accounts for more than two-thirds of U.S. economic activity, edging up 0.1 percent in December after a previously reported 0.3 percent gain in November.” Read more

 

…Reuters poll: Cheap oil won’t juice the U.S. economy this time by Jason Lange & Lindsay Dunsmuir. “The Reuters/Ipsos poll shows 75 percent of 3,068 Americans who answered questions on gasoline savings said the extra money helped them cover basic needs and the majority have not used their windfall to buy big ticket items. Over 40 percent of respondents said the savings had helped them pay down debts.” Read more

 

TJX Names Ernie Herrman CEO – Carol Meyrowitz Becomes Executive Chairman “Carol Meyrowitz commented, “… I look forward to continuing our 20-plus years of working together to support and maximize the growth potential of TJX.” Read the release

 

Amazon’s logistics costs zoom as outside sellers jump aboard by Angel Gonzalez at Seattle Times. “…third-party sellers…jumped in number by 50 percent in one year…Third parties sold 47 percent of all items shipped in the holiday quarter, up from 43 percent the previous year.” Read more

 

Sports Authority Lays Off 100 at HQ via Dow Jones. “The layoffs on Friday in Englewood, Colo., follow a decision earlier this month by the company to skip an interest payment on a $300 million secured term loan, sparking concern among vendors and industry-watchers.” Read more

 

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Lowe’s Names Cracker Barrel CEO To Board Of Directors “Cochran is on the board of directors of…Dollar General Corporation, and previously served on the board of directors of Books-A-Million.” Read the release

 

Online sales will reach $523 billion by 2020 in the U.S. by Matt Linder at Internet Retailer. “A new report from Forrester, titled “U.S. Cross-Channel Retail Forecast, 2015 To 2020,” predicts online sales will grow by an average annual rate of 9.32% over the next five years.” Read more

 

Amazon’s Audible makes a push towards podcasting with hiring spree by Clare McGrane at GeekWire. “Audible, the audio book platform which Amazonacquired for $300 million in 2008, is currently hiring for almost 100 positions…the majority of Audible’s new positions are in New Jersey.” Read more

 

E-retailers cut clicks to check out and make it easier to return in stores by Sandra Guy at Internet Retailer. “The retailers whose sites passed critical tests of customer service in all seven areas (Home Depot, REI…) See the list of eight

 

Ikea Wants You to Stop Throwing Away Your Ikea Furniture by Jessica Hullinger at Fast Company.  Read more

 

Macy’s completes partial sale of a flagship location by Andy Brownfield at Cincinnati Business Journal. “(Macy’s) is selling the top floors of its nine-story Brooklyn flagship store on Fulton Street to Tishman Speyer for $270 million. Macy’s will continue to own and operate the first four floors and lower level and will use $100 million of the proceeds from the sale to redevelop those floors.” Read more

 

Store known as the ‘Amish Walmart’ is for sale after 26 years by Jessica Chia at Daily Mail. “…the Schrocks will be close by for a helpful hand and a watchful eye. They live in a house across from the store’s parking lot, with an underground pipe connecting their home to the store. The pipe allows them to communicate between the two locations. Barbara said: ‘He can hear me from here no matter what part of the house he’s in.'” See the pics / Read more

 

Tipsheet Extra Stories

NY Times: A Little Walmart Gift Card for You, a Big Payout for Lawyers

When Robots Take Over, Y Combinator Says We’ll Just Give Everyone Money

Democrat Senators Pressure Grocers to Ban Open Carry of Handguns

Shop.ca hires an Amazon & Sears vet as its CEO

House-Hasson Hardware Co.’s growth connects new and old ways

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