Archive for year: 2016

 

Amazon’s secretive drive-up grocery store in Seattle looks ready to open soon by Nat Levy at GeekWire. “A recent report suggested the online retail giant’s pick up grocery locations in Seattle could open by the end of the year, and the Ballard store looks like it’s on track based on a recent visit to the site. The project just this week received a temporary certificate of occupancy from the city, which means major construction aspects of the project are done, and Amazon can begin to occupy the building even though there is still some work left to do.” Pics / Read more

 

Cyber Monday eats Black Friday as Wal-Mart takes holiday mash-up one step further by Krystina Gustafson at CNBC. “For the first time this season, the world’s largest retailer will kick off its Cyber Week deals the day after Thanksgiving—a time typically reserved for in-store door busters. The online sale begins at 12:01 a.m. Eastern on Black Friday, with deals including a Samsung 60-inch HD smart TV for more than $1,000 off.” Read more

 

Tyson Foods Sales Drop 12.8%; CEO to Step Down at Fox Business. “The company said its president, Tom Hayes, will succeed (Donnie) Smith as chief executive.” Read more

 

At the center of debate over Costco plant in Fremont: How 17 million chickens will affect the area by Barbara Soderlin at Omaha World-Herald. “Opponents of the chicken plant that Costco wants to build in Fremont have sounded an alarm about its effect on the region’s air and water quality, even suggesting it could harm drinking water in Omaha, 25 miles down the Platte River…” Read more

 

Build-A-Bear pursuing growth in smaller spaces, licensing deals by Lisa Brown at St.Louis Post Dispatch. “We don’t think of ourselves anymore as a mall retailer,” CEO Sharon John said in an interview. Instead, Build-A-Bear is making changes to ensure it’s where its consumers are…“It’s not that malls aren’t going to be an important part of our portfolio,” John said, adding the chain is looking at adding more stores-within-stores. “You might see us in Carnival ships, or shop-in-shop stores at select Macy’s or Toys R Us stores.” Read more

 

**A message from the 2017 Philadelphia Gift Show – See emerging artists and gift, home décor, and color trends! Get a sneak peak in our Product Spotlight, and see our list of unique exhibitors. Sweetening the pot, this all-category gift show runs concurrently with the Philadelphia National Candy, Gift & Gourmet Show. See it all January 6-9, 2017, at the Greater Philadelphia Expo Center, in Oaks, PA. Register now | Website

 

Cabela’s execs collect bonuses, despite missing profit goals by Russell Hubbard at Omaha World-Herald. “The executives failed to achieve the financial goals that were laid out ahead of time to qualify for the bonuses. So the company just changed the objectives after the fact to bring the goals in line with actual performance — essentially rigging the bonus game in favor of the bosses. They employed no subterfuge, openly describing it all in the SEC document.” Read more

 

Wal-Mart controller Steve Whaley to step down December 31 at The City Wire. “Wal-Mart Stores announced Friday (Nov. 18) that Senior Vice President and Controller Steve Whaley, 57, is resigning, effective Dec. 31…Whaley will be replaced by David Chojnowski, effective Jan. 1, 2017. Chojnowski, vice president and controller of the Wal-Mart U.S. since October 2014, will report to Chief Financial Officer Brett Biggs.” Read more

 

Amazon’s Marketplace merchants get help ‘poking the dragon’ for profit by Angel Gonzalez at Seattle Times. “McCabe is part of a growing industry of consultants, in many cases former Amazonians, who purport to offer insight into the mysteries of the Seattle colossus. “It’s become a big thing” in the past three years or so, says Rhonda Schneider, the organizer of the Sellers’ Conference for Online Entrepreneurs, a twice-yearly gathering for online merchants, about the consultants.” Read more

 

Advertisers Search for Middle America by Alexander Bruell & Suzanne Vranica at Wall Street Journal. “Every so often you have to reset what is the aspirational goal the public has with regard to the products we sell,” said Harris Diamond, McCann’s CEO. “So many marketing programs are oriented toward metro elite imagery.” Marketing needs to reflect less of New York and Los Angeles culture, he said, and more of “Des Moines and Scranton.” Read more (subscription)

 

Toys R Us CEO Sits Down with Fortune 42 minute audio interview

 

More store closures may be ahead for Abercrombie & Fitch by Krystina Gustafson at CNBC. “Roughly 50 percent of the retailer’s 745 U.S. leases are up for renewal over the next 18 months, the company said Friday….”I would not be surprised if half of those [locations up for renewal] end up closing,” Garrick Brown, Cushman & Wakefield’s vice president of retail research for the Americas, told CNBC.” Read more

 

Here’s Why Gun Shops Probably Won’t Set a Black Friday Sales Record via Fortune. “I’m not expecting it to be any slower than our normal Black Friday,” said Kellie Weeks, owner of Georgia Gun Store in Gainesville, Georgia. “But if Hillary had won, we would have sold out already.” Read more

 

Sabra hummus recalled for possible Listeria contamination via CNBC. Read more

 

Amazon partners with Fiat Chrysler to sell cars online in Italy by Taylor Soper at GeekWire. “Italian buyers will be able to purchase three Chrysler models — the 500, the Panda and the 500L — on Amazon with an “additional discount”…Amazon will contact buyers after they click online and help them finalize the purchase at a physical dealership…The entire process takes two weeks, Reuters reported.” Read more

 

Australia: Brisbane 7-Eleven caught forcing workers to pay back their wages in cash to managers – as stores ‘threaten to sack them if they don’t because they can’t afford award rates’ at Daily Mail. “She said her bosses told her they cannot afford to pay staff at government rate and if she refused to return a portion of her wage, she could ‘go find another job,’ The ABC reported.” Read more / See video

 

Tipsheet Extra Stories

Amazon appears to tweak Donald Trump with a new Prime ad promoting religious tolerance

Mattress-maker Casper plans brick-and-mortar stores

Lowe’s Completes Acquisition Of Rona Preferred Shares

Walmart Foundation Donates $500K to Washington Regional’s Newest Women Center

Molson Coors CFO Mauricio Restrepo resigns because of “personal conduct”

Less than 3% of cars sold in the U.S. have manual transmissions

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Walmart Q3 US Comp Sales +1.2% “…driven by a traffic increase of 0.7%. Neighborhood Market comp sales increased approximately 5.2%. Net sales at Walmart International were $28.4 billion, a decrease of 4.8%.” Press release | Q3 Earnings Call Slides

 

…CNBC: Wal-Mart beats on earnings, raises lower end of guidance, but revenue falls short “Notably, Wal-Mart’s digital sales — which have been a source of ongoing softness — picked up during the period, growing 20.6 percent excluding currency swings. Recently acquired Jet.com was included in the quarter for six weeks.” Read more

 

…Fox Business: Wal-Mart’s comparable sales miss estimates “(Comp sales rose) 1.2 percent, excluding fuel price fluctuations…That is weaker than market expectations of a 1.3 percent rise, according to research firm Consensus Metrix.” Read more

 

Best Buy Q3 Comp Sales +1.8% “From a merchandising perspective, comparable sales growth in home theater, mobile phones, wearables and connected home was partially offset by declines in gaming.” Press release

 

…Fox Business: Best Buy’s same-store sales beat expectations “Analysts on average had expected a 1 percent rise (in comp sales), according to research firm Consensus Metrix.” Read more

 

NY Times: Across China, Walmart Faces Labor Unrest as Authorities Stand Aside by Javier C. Hernandez. Read more

 

**A message from GlobalShop – as a retail expert, you impact the customer experience and GlobalShop is the driving force behind that experience. Through education, peer networking and interaction with retail suppliers, you’ll return with results to build your brand and create a more effective retail environment. From mannequins and lighting to flooring and signage, GlobalShop has it all. Register now to join us in Las Vegas March 28-30, 2017! Qualified attendees use code GS17EOR for free expo hall admission.  Check out this year’s exhibitors.  Website | Networking Events

 

Neiman Marcus partners with Rent the Runway by Korri Kezar at Dallas Business Journal. “The Washington Post reported Wednesday that Neiman will add Rent the Runway store-within-a-store concepts to some of its locations, starting with a San Francisco store opening Friday.” Read more

 

With Apple now selling used iPhones, the new phone market may have peaked by Tom Mainelli at Recode. Read more

 

Walmart’s Deisha Barnett joins Metro Atlanta Chamber of Commerce by Diana Bradley at PR Week. “Barnett is joining the Chamber after nine years at Walmart, where she directed comms strategy for the biggest shopping events of the year, such as back-to-school and Black Friday. She also led communications for the retailer’s community giving and diversity initiatives.” Read more

 

CST shareholders greenlight $4.4B merger with Circle K parent by Katie Burke at San Antonio Business Journal. Read more | Press release

 

Smart & Final Q3 Comp Sales -1.3% Press release

 

Macy’s will start closing stores before the end of the year by Andy Brownfield at Cincinnati Business Courier. Read more

 

Fifth Avenue protests could mean trouble at Tiffany’s this holiday by Krystina Gustafson at CNBC.”That’s because its Fifth Avenue store accounts for roughly 20 percent of Tiffany’s U.S. sales, and represents some 10 percent of its total revenues, according to various estimates.” Read more

 

…Fifth Avenue holds its title as most expensive retail street by Brielle Jaekel at Luxury Daily. Read more

 

Southeastern Grocers Unveils 73 New Harveys Supermarkets Press release

 

American Apparel suitor doesn’t care if clothes are US-made by Lisa Fickenscher at NY Post. “At least one potential buyer of the company, which this week sought bankruptcy protection for a second time, wants to find out. “If it’s important to the brand, I’m not sure we are interested in buying it,” said the executive.” Read more

 

Lowe’s Q3 Earnings Call Transcript via Seeking Alpha Read here

 

Loblaw, Metro talks with suppliers pay off in better results as food price inflation stays flat by Hollie Shaw at Financial Post. “In the summer, Loblaw asked its largest suppliers to cut costs by 1.45 per cent by September in response to what it called “unjustified cost increases.” Read more

 

Deloitte Announces 2016 North America Technology Fast 500™ Rankings Press release

 

DEAD DEER IN THE SHOPPING CART – Men roll dead deer into Walmart store at CBS 6 – Virginia. “It wasn’t until she actually walked inside the store that her daughter asked, “Did you see that deer in the shopping cart?”…The daughter took a photo. The gutted deer, was in the shopping cart, dripping blood on the floor, she said.” Video / Pic

 

Target lifts holiday forecast after better-than-expected third quarter by Kavita Kumar at Star Tribune. “Obviously it’s been a very unusual November — that’s probably the ultimate understatement,” Cornell told reporters.” Read more | Earnings call transcript

 

Woman Goes on ‘Costco Odyssey’ – Visits Every State with a Costco – CEO Jokes He May Join Her by Jennifer Huffman at Mesabi Daily News.”I’m a woman of faith,” said Pope. While at first even she thought her idea was a bit ridiculous, “I believe God was telling me” to do this cross-country Costco road trip. “Over time, this trip started taking on a life of its own.” Read more

 

Former Kroger CEO David Dillon will head KU chancellor search committee by Sara Shepherd at LJ World. Read more

 

Former Archer Daniels Midland CEO Dwayne Andreas dead at 98 via The Denver Post. Read more

 

Tipsheet Extra Stories

Walmart Museum in Bentonville adds new exhibits (front door from Sam Walton’s first Ben Franklin store in Newport)

The 2017 Fortune Crystal Ball (“Ross Stores Will Go On A Retail Rampage”)

Ancient Ten Commandments tablet sold at auction for $850,000

Electric cars are now required to make noise at low speeds so they don’t sneak up and kill us

Amazon’s app gives its customers X-Ray vision – can tell you exactly what’s in a delivery box

Police: Pickpockets target elderly Publix shoppers

Fendi to bring “Happy Room” to VIP clients

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Home Depot Q3 Comp Sales +5.5% / +5.9% in US “The Company reaffirmed its fiscal 2016 sales guidance and expects sales will be up approximately 6.3 percent and comp sales will be up approximately 4.9 percent.” Press release

 

…Fox Business: Home Depot Sales and Revenue Rise as Customers Spend More Per Transaction “The company’s sales per square foot rose 4.3% as the amount the average customer spent rose 3%.” Read more

 

Dick’s Q3 Comp Sales +5.2% “…compared to the Company’s guidance of an approximate 2 to 3% increase. Same store sales for Dick’s Sporting Goods increased 5.5%, while Golf Galaxy decreased 3.3%. Third quarter 2015 consolidated same store sales increased 0.4%.” Press release

 

TJX Q3 Comp Sales +5.0% “Net sales for the third quarter of Fiscal 2017 increased a strong 7% to $8.3 billion, and over a 5% increase last year.” Press release

 

Retail sales surge in October, beating expectations; prior month revised higher at CNBC. “The Commerce Department said on Tuesday retail sales increased 0.8% last month (vs. 0.6% expected)…September retail sales were revised upward to show a 1.0 percent increase instead of the previously reported 0.6 percent rise. The combined September and October sales gain was the largest two-month rise since early 2014.“ Read more

 

Amazon files its first-ever lawsuits against alleged sellers of counterfeit goods by Todd Bishop at GeekWire. “Amazon’s suits target sales of knockoff fitness products and heavy lifting equipment sold illegally under the TRX and Forearm Forklift brands, which are both legitimate sellers on the Amazon platform.” Read more

 

A Bed Sheets Scandal Hits the Cotton Industry at Bloomberg. “Target has decided not to rely on CEA certifications going forward, according to a person familiar with the retailer’s decisions who asked not to be identified discussing internal matters. Wal-Mart, by contrast, has said it will continue to rely on the CEA standard…” Read more

 

Wal-Mart’s e-commerce push echoes through ‘Vendorville’ by Kim Souza at The City Wire. “Some suppliers have put e-commerce support staff in San Bruno, Calif., near Walmart.com. They did so because they could not find the right talent locally to add to their Northwest Arkansas Walmart sales teams, Smith said.” Read more

 

Inside Kohl’s efforts to fill your online orders faster this holiday season by Sarah Halzack at Washington Post. “Kohl’s said it is finding there is another advantage to in-store pickup. For every $100 someone spends at Kohl’s on store pickup, people buy, on average, $25 worth of additional stuff when they set foot in the store.” Read more

 

Neiman Marcus loses top operations and finance exec by Korri Kezar at Dallas Business Journal. “(Donald) Grimes is leaving after just a year with the Dallas company. He was appointed to the position in June 2015 after serving as senior vice president, treasurer and CFO at footwear and apparel company Wolverine World Wide.” Read more

 

**A message from the 2017 Philadelphia Gift Show – See emerging artists, regional specialties, and gift, home décor, and color trends! Get a sneak peak in our Product Spotlight, and see our list of unique exhibitors. Sweetening the pot, this all-category gift show runs concurrently with the Philadelphia National Candy, Gift & Gourmet Show. See it all January 6-9, 2017, at the Greater Philadelphia Expo Center, in Oaks, PA. Register now | Website

 

Labor Group Gets IBM’s Watson to Help Walmart Workers by Susan Berfield at Bloomberg. “Now, Marler has a second job: She’s one of about two dozen current and former employees who helped construct an app called WorkIt that answers questions about Walmart’s policies and workplace rights using Watson, IBM’s artificial intelligence bot…OUR Walmart, the employee and labor activist group that’s been pushing for better wages and working conditions, is behind the effort and will roll out the free app on Nov. 14.” Read more

 

…Wal-Mart Tells Workers: Don’t Download Labor Group’s Chat App by Sarah Nassauer at Wall Street Journal. “Wal-Mart has instructed store managers to tell their employees that the app wasn’t made by the company and described it as a scheme to gather workers’ personal information, according to a document viewed by The Wall Street Journal.” Read more (subscription)

 

The Holiday Shopping Season Won’t Bear Gifts for Private Equity by Lindsey Rupp at Bloomberg. “There is no exit,” said Jan Kniffen, founder of the consulting firm J. Rogers Kniffen Worldwide Enterprises in New York. “Retailing is fairly gruesome right now in terms of getting return on your investment. It doesn’t matter if you’re public or private — everyone is struggling.” Read more

 

Amazon to ‘radically’ simplify employee reviews, changing controversial program by Taylor Soper & Todd Bishop at GeekWire. “The buzz among employees is that Amazon will drop or significantly alter its existing employee ratings program as part of the changes in the broader review process. Amazon currently uses employee ratings as the basis for a forced curve or “stack-rank” system — also known as “rank-and-yank”” Read more

 

Warren Buffett’s Berkshire Hathaway Is Cashing Out of Walmart by Jen Wieczner at Fortune. “Buffett’s stake in Walmart is now worth less than $1 billion, down from nearly $3 billion in the middle of this year, according to new securities filings.” Read more

 

Study: 58% of shoppers say deal days like Black Friday don’t matter by April Berthene at Internet Retailer. Read more

 

Brands at a standstill for social media’s #MannequinChallenge at Luxury Daily. “Neiman Marcus and Marc Jacobs are among the luxury brands to strike their best mannequin pose for the now-viral challenge…” Read more

 

Pier 1 Imports Updates Third Quarter Fiscal 2017 Financial Guidance “…we now expect our fiscal third quarter results to be at the high-end of our previously guided ranges for comparable and net sales, merchandise margin, earnings per share and adjusted earnings per share.” Press release

 

Cramer uncovers what is really ailing CVS Health at CNBC. “Maybe they can turn things around, but for now, CVS remains in the penalty box until we see them take concrete steps to lessen their dependence on what was once the golden goose, now just a turkey headed for a carving,” Cramer said.” Read more

 

Stater Bros. leader Jack Brown dies at 78 by Michel Nolan at The Sun. “Brown joined Stater Bros. in 1981. He served as president and chief executive officer of Stater Bros. Markets for more than 35 years and as chairman for Stater Bros. for more than 30 years.” Read more

 

Amazon leases new 21-story Seattle office tower by Marc Stiles at Puget Sound Business Jounal. Read more

 

Study Suggests West Nile Virus Is Deadlier Than Expected by Betsy McCay at Wall Street Journal. “…researchers in Texas discovered a much higher death rate in an analysis of West Nile cases in their state. Of 4,144 patients who were ill from 2002 to 2012, 13% died, they found in their analysis of data, which went through the end of 2013.” Read more (subscription)

 

Tipsheet Extra Stories

Woman sues clothing giant Zara after ‘finding dead rodent sewn into the hem of her dress’

Barneys New York Started With an Engagement Ring

Australia: Another supermarket fruit supplier caught allegedly underpaying migrants

Middleton family says Costco isn’t accommodating daughter’s special needs

Mob of young men pelt a defiant Family Dollar clerk with shopping baskets

How Walgreens plans to use Pinterest to drive holiday sales

Gucci is sponsoring an exhibition in one of Britain’s most famous stately homes

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J.C. Penney posts surprise drop in same-store sales at Reuters. “J.C. Penney reported a surprise 0.8 percent fall in quarterly comparable-store sales on Friday…Analysts on average had expected Penney’s same-store sales to increase 2.7 percent.” Read more

 

Jeff Bezos doesn’t want to send Trump to space anymore by James Covert at NY Post. “Congratulations to @realDonaldTrump,” Bezos tweeted. “I for one give him my most open mind and wish him great success in his service to the country.” Read more

 

Alibaba’s Singles’ Day Obliterates Cyber Monday’s Sales Total In Less Than Two Hours at Fortune. “$1 billion in sales in its first five minutes on Friday morning China time. Within two hours it had reaped $7.2 billion in sales—already half of the 24-hour sale’s total $14.3 billion haul last year. At noon in China—midway through the bonanza—the toll stood at $11.9 billion.” Read more

 

Visa expands $10 free grocery offer for shoppers hit by Walmart’s Visa ban by Sophia Harris at CBC News. “It’s offering its customers in Thunder Bay a $10 rebate if they use their card to spend $50 or more at a grocery store…Last week Visa started offering its customers in Manitoba the same rebate deal on groceries purchased anywhere but Walmart.” Read more

 

Amazon recruiter, a former U.S. Army captain, eager to open door to veterans by Angel Gonzalez at Seattle Times. “But in her first real foray into the private sector she found herself selling clothes at Gymboree, which as a young mother returning from Kuwait she joined “because they had a great discount in kids clothes.” “I really felt like I was lost,” Williams, 55, said in an interview.” Read more

 

Two years ago, Nordstrom bought Trunk Club for $350 million. Now it’s worth $150 million. by Jason Del Rey at Recode. “While this business continues to deliver outsized top-line growth, current expectations for future growth and profitability are lower than initial estimates,” the company said in its third-quarter earnings release.” Read more

 

Amazon employee lands on ‘Jeopardy,’ gets shout-out from Jeff Bezos and wows her co-workers by Kurt Schlosser at GeekWire. Read more

 

**A message from GlobalShop – as a retail expert, you impact the customer experience and GlobalShop is the driving force behind that experience. From mannequins and lighting to flooring and signage, GlobalShop has it all. Register now to join us in Las Vegas March 28-30, 2017. Check out this year’s exhibitors. Website & welcome video

 

Walmart U.S. now offering mobile check-in feature for online grocery pickup service by Kim Souza at The City Wire. “Sam’s Club has offered mobile check-in, but this is Walmart’s first attempt at the service for its growing grocery pickup business that will be available in 500 markets by the end of the year.” Read more

 

Dillard’s Q3 Comp Sales -4.0% Press release

 

Home Depot’s corporate HQ will transform into a volunteer center today for Veterans Day by Jewel Wicker at AJC. “The parking lot of Home Depot’s corporate headquarters will transform into a volunteer center on Veterans Day. 
More than 250 Home Depot associates will work with Habitat for Humanity and 20 nonprofit organizations to begin building homes, assembling furniture and more for local veterans.” Read more

 

…Fox Business: Home Depot Gallops to Help Vets with PTSD by Matthew V. Libassi. “We got the phone call and we came out and repaired several stables we built a roof between the stables and built a ramp for the handicap veterans” adds Perrelli.” See the video / Read more

 

Canadian Tire reports strong sales in all retail banners, look to expand house-branded goods by Hollie Shaw at Financial Post. “Solid sales and an improved product assortment helped the retailer raise its consolidated retail sales by 3.4 per cent to $3.52 billion from $3.41 billion a year ago in the quarter ended Oct. 1 as the company saw a 3.5 increase in same-store sales at its eponymous banner.” Read more

 

Walmart’s insurers demand Tracy Morgan justify how he was well enough to safely drive a Lamborghini after turnpike accident and be entitled to ‘staggering’ settlement of $90 million by Freya Berry at Daily Mail. Read more

 

Party City October Comp Sales -6.4% Press release

 

Deloitte: 42% of shoppers surveyed consider 3-4 day shipping “fast” – a significant drop from the 63% who said so last year Press release

 

Nordstrom Q3 Comp Sales +2.4% Press release

 

Eddie Bauer Turns to TV for First Time This Century by Adrianne Pasquarelli at Ad Age. “…will air a 30-second brand-focused commercial beginning Nov. 10 and running through Dec. 18. This is the first time Eddie Bauer has been on the small screen since 1999.” See the spot / Read more

 

Macy’s strikes deal with Brookfield to redevelop 50 stores by Lisa Fickenscher at NY Post. “Cosmetics was one of the weaker businesses in the third quarter,” CFO Karen Hoguet told analysts during an earnings call. “And we are focused on how to improve that in the fourth quarter, though the fragrance business has been very strong.” Read more

 

Camping World Q3 Comp Sales +5.8% Press release

 

Michael Kors’ streak has ended by Krystina Gustafson at CNBC. “Shares of Michael Kors dipped more than 4 percent in after-hours trading Thursday, after the handbag maker reported its first quarterly revenue decline since going public five years ago.” Read more

 

Tipsheet Extra Stories

Nintendo’s $59.99 NES Classic is in short supply … but you can buy one online for $1,000

Nasty Gal is expected to file for bankruptcy

Bob Hope’s UFO-shaped Mansion Potentially Sets Price Record in Palm Springs

Rare tropical bed bug reappears in Florida after 60 years

Why Shoe Carnival no longer worries about chargebacks

Macy’s CEO Says Dumping Donald Trump’s Line Was Still the Right Move

Pier 1 denies exemption to poison pill policy

Can KC support four Bass Pro and Cabela’s stores?

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