Tipsheet: Duluth Pumps Brakes | WM’s ‘2nd Engine’ | US Retail +0.4%

/in

 

US retail sales rise more than expected in August at Fox Business. “Retail sales climbed by 0.4 percent in August, well above analyst expectations of 0.2 percent, on the heels of blowout data in July.” Read more

 

Walmart Is Testing a Fulfillment Service for Vendors to Match Amazon by Matthew Boyle at Bloomberg. “(Walmart) is testing a fee-based service called “Fulfilled by Walmart,” U.S. e-commerce chief Marc Lore said at an industry conference this week. Lore didn’t provide details, but said the service would be an area where the e-commerce arm could generate revenue.” Tiered subs.

 

Whole Foods to cut health-care benefits for 1,900 part-time employees starting next year at CNBC. “In the past, employees needed to work at least 20 hours a week to buy into the health-care plan. Now they will need to work at least 30 hours.” Read more

 

Old Navy plans to open 800 new stores as it prepares to split from Gap by Kelly Tyko at USA Today. “We’ll almost double our fleet to 2,000 stores in North America, predominantly in under-served small markets,” Old Navy CEO Sonia Syngal said.” Read more

 

Dollarama Q2 comp sales +4.7% Press release

 

Kroger Q2 comp sales (ex-fuel) +2.2% “CEO McMullen: Guided by our customer obsession, Kroger delivered our best identical sales, without fuel, result since the launch of our transformation plan.” Press release

 

Walmart’s Vudu adds Family Play feature so viewers can skip sex, violence and substance abuse by Anthony Ha at TechCrunch. “Vudu will skip the relevant scenes, and in the case of strong language, it will mute the dialog. The feature is already supported in more than 500 films.” Read more

 

HBC Q2 comp sales overall -0.4%:  By brand:

Saks Fifth Avenue +0.6%

Saks Off 5th +3.4% 

Hudson Bay -3.4%

Press release

 

Amazon to open new air hub for delivery planes in Dallas area next month by Nat Levy at GeekWire. Read more

 

**A message from X1 Ebike – Up to 37 miles on a single 4-hour charge. Folds into the size of a golf bag in seconds! GPS tracking, VIN # & alarm for security. Video | Website 

 

Todd Harbaugh, Walmart EVP of Supercenters, gives suppliers a glimpse into several technology applications being tested by Kim Souza at Talk Business. “Harbaugh also gave suppliers a glimpse into the retailer’s newest format —Walmart Health. He said the first store with this new health clinic is in Dallas, Ga., and the grand opening is slated for Friday (Sept. 13). He said Walmart is already starting to build a second location, though he didn’t say where. “Greg (Foran, Walmart U.S. CEO) calls this new format the second engine,” Harbaugh said.” Read more

 

Duluth Holdings Q2 net sales +10.2% “CEO: ‘I also want to recognize that we have had some growing pains over the past year and a half.  In response, we plan to slow down the pace of our retail expansion in 2020 and direct our focus to improving asset productivity and thus our operating margin rate.” Press release

 

Tapestry Announces Strategic Alliance With Alibaba’s Tmall “Tapestry will be one of the first companies to collaborate with Tmall in adopting the recently unveiled Flagship Store 2.0…the Coach, Kate Spade and Stuart Weitzman brands will all have flagship stores on Tmall Luxury Pavilion.” Press release

 

Amazon’s crowdsourced Q&A community Alexa Answers goes live for all by Sarah Perez at TechCrunch. Read more

 

Gap Inc. says it’s opening up its Athleta and Janie and Jack brands to be franchised outside the U.S. at CNBC. “We’ve come to realize there is local expertise that frankly we don’t have,” Roy Hunt, the senior vice president of Gap Inc.’s global franchise and strategic alliances division, told CNBC in a recent interview.” Read more

 

Tipsheet Extra Stories

Amazon announces hardware event on September 25th

Walgreens joins Apple Card’s rewards program

Google’s failed online shopping service Google Express is closing

The $400B outdoor industry sounds alarm on Trump’s tariffs

Target’s 20th anniversary collection brings back 20 designer brands Saturday

Read Tipsheet Extra Stories

 

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Subscribe to Eye on Retail Tipsheet here

 

Contact us: Put your product or service in front of the most powerful retail execs in the world, send advertising inquiries to info@eyeonretail.net

 

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Tipsheet: FTC Probes Amazon | Sam’s New Chief Merchant | Victoria’s ‘Evolution’

/in

 

Amazon Probed by U.S. Antitrust Officials Over Marketplace by Spencer Soper & Ben Brody at Bloomberg. “Several attorneys and at least one economist have been conducting interviews that typically last about 90 minutes and cover a range of topics, according to three merchants. All were asked what percentage of revenue their businesses derive from Amazon versus other online marketplaces like Walmart Inc. and EBay Inc., suggesting regulators are skeptical about Amazon’s claims that shoppers and suppliers have real alternatives to the Seattle-based company. One merchant, Jaivin Karnani, said he was surprised the FTC returned his call the very next day.” Tiered subs.

 

Sam’s Club names new chief merchant in Megan Crozier by Kim Souza at Talk Business. “…according to an internal memo sent by Sam’s Club CEO John Furner on Monday (Sept. 9). Furner said Crozier will assume the new role Sept. 16 and will report to him…Crozier joined Walmart in 2003 as an engineer in a grocery distribution center in Temple, Texas. She moved to Bentonville to work as supply chain manager supporting merchandising and in 2005, she became as assistant buyer.” Read more

 

GameStop shares tank after earnings miss, cuts sales forecast at CNBC. “It said it now expects sales at stores open at least 12 months to fall in the low teens, compared with prior expectations of a decrease between 5% and 10%.” Read more | Co. press release

 

…GameStop closing 180 to 200 stores globally by Kelly Tyko at USA Today. Read more

 

Gun rights activists test Walmart request not to open-carry guns into store by Rebecca Klar at The Hill. “David Amad, the vice president of Open Carry Texas, told The New York Times the 38,000 members of his group have openly carried their guns inside Walmart stores since the retailer announced last week it is “respectfully requesting” customers to no longer openly bring guns into its stores. He said none of the members who have done so have been asked to leave.” Read more

 

…Retailers Walk Thin Line by Asking, Not Telling, Shoppers Not to Carry Guns by Michael Corkery at New York Times. “Some of the retailers said their new policies were meant to strike a balance between signaling that guns make many employees and customers feel unsafe, while not angering gun rights supporters. The new policies appear to be achieving something that have been elusive in the nation’s long-running gun debate: some form of middle ground.” Tiered subs.

 

RH Q2 net revenues +10.3%, raises fiscal 2019 guidance for the 3rd time this year Press release

 

**A message from EasyLock keyless locking deadbolt. Lock your deadbolt with a simple twist! Sell sheet | Sample: info@eyeonretail.net

 

‘A new type of department store’: Neighborhood Goods snags $11 million in funding, plots more locations at CNBC. “Some names in the Plano space, which is about 10,000 square feet, include razor company Dollar Shave Club, watchmaker Fossil, men’s clothing brand Buck Mason and women’s shoe company Rothy’s. There’s also a restaurant there, called Prim and Proper, serving burgers and weekend brunch. And Neighborhood Goods holds other weekly events like workout classes, gardening workshops and taste testings.” Read more

 

Cashier arrested in Japan for allegedly using ‘photographic memory’ to steal credit card information of 1,300 customers at CNN. Read more

 

Fry’s Electronics tries to quell rumors of its demise as customers worry about empty shelves by Levi Sumagaysay at Mercury News. “In response to inquiries by (Mercury News), a spokesman for the San Jose-based retailer said Tuesday that the company is “converting most of its suppliers to consignment,” and that its shelves will be restocked over the next few weeks.” Tiered subs.

 

Red hot Costco shares fall after Oppenheimer downgrades, citing a record high valuation at CNBC. Read more

 

Carrefour denies weighing bid for French retail rival Casino at Reuters. Read more

 

L Brands promises an ‘evolution’ is ahead for Victoria’s Secret brand at CNBC. “There’s a big belief in the company that we need to evolve,” said John Mehas, head of Victoria’s Secret Lingerie…The company, by its own admission, stayed tied to its sexy imaging at Victoria’s Secret stores for far too long as its shoppers looked for more comfortable and inclusive options sold by brands such as Aerie and Third Love, among others.” Read more

 

Tipsheet Extra Stories

Smart grocery cart startup Caper bags $10 million

Scraping public data from a website probably isn’t hacking, says court

Growth drives Casey’s plans to open third distribution center

Shopkeeper bitten by a homeless person for the second time in four months

‘A Very Brady Renovation’ Scores Huge Ratings for HGTV

Read Tipsheet Extra Stories

 

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Eye on Retail Tipsheet is must-read material for retail execs every weekday morning. Tipsheet stories are carefully curated bright and early every morning to ensure fresh and unique content.

 

Subscribe to Eye on Retail Tipsheet here

 

Contact us: Put your product or service in front of the most powerful retail execs in the world, send advertising inquiries to info@eyeonretail.net

 

Website: eyeonretail.net

Tipsheet: FTC Probes Amazon | Sam’s New Chief Merchant | Victoria’s ‘Evolution’

/in

 

Amazon Probed by U.S. Antitrust Officials Over Marketplace by Spencer Soper & Ben Brody at Bloomberg. “Several attorneys and at least one economist have been conducting interviews that typically last about 90 minutes and cover a range of topics, according to three merchants. All were asked what percentage of revenue their businesses derive from Amazon versus other online marketplaces like Walmart Inc. and EBay Inc., suggesting regulators are skeptical about Amazon’s claims that shoppers and suppliers have real alternatives to the Seattle-based company. One merchant, Jaivin Karnani, said he was surprised the FTC returned his call the very next day.” Tiered subs.

 

Sam’s Club names new chief merchant in Megan Crozier by Kim Souza at Talk Business. “…according to an internal memo sent by Sam’s Club CEO John Furner on Monday (Sept. 9). Furner said Crozier will assume the new role Sept. 16 and will report to him…Crozier joined Walmart in 2003 as an engineer in a grocery distribution center in Temple, Texas. She moved to Bentonville to work as supply chain manager supporting merchandising and in 2005, she became as assistant buyer.” Read more

 

GameStop shares tank after earnings miss, cuts sales forecast at CNBC. “It said it now expects sales at stores open at least 12 months to fall in the low teens, compared with prior expectations of a decrease between 5% and 10%.” Read more | Co. press release

 

…GameStop closing 180 to 200 stores globally by Kelly Tyko at USA Today. Read more

 

Gun rights activists test Walmart request not to open-carry guns into store by Rebecca Klar at The Hill. “David Amad, the vice president of Open Carry Texas, told The New York Times the 38,000 members of his group have openly carried their guns inside Walmart stores since the retailer announced last week it is “respectfully requesting” customers to no longer openly bring guns into its stores. He said none of the members who have done so have been asked to leave.” Read more

 

…Retailers Walk Thin Line by Asking, Not Telling, Shoppers Not to Carry Guns by Michael Corkery at New York Times. “Some of the retailers said their new policies were meant to strike a balance between signaling that guns make many employees and customers feel unsafe, while not angering gun rights supporters. The new policies appear to be achieving something that have been elusive in the nation’s long-running gun debate: some form of middle ground.” Tiered subs.

 

RH Q2 net revenues +10.3%, raises fiscal 2019 guidance for the 3rd time this year Press release

 

**A message from EasyLock keyless locking deadbolt. Lock your deadbolt with a simple twist! Sell sheet | Sample: info@eyeonretail.net

 

‘A new type of department store’: Neighborhood Goods snags $11 million in funding, plots more locations at CNBC. “Some names in the Plano space, which is about 10,000 square feet, include razor company Dollar Shave Club, watchmaker Fossil, men’s clothing brand Buck Mason and women’s shoe company Rothy’s. There’s also a restaurant there, called Prim and Proper, serving burgers and weekend brunch. And Neighborhood Goods holds other weekly events like workout classes, gardening workshops and taste testings.” Read more

 

Cashier arrested in Japan for allegedly using ‘photographic memory’ to steal credit card information of 1,300 customers at CNN. Read more

 

Fry’s Electronics tries to quell rumors of its demise as customers worry about empty shelves by Levi Sumagaysay at Mercury News. “In response to inquiries by (Mercury News), a spokesman for the San Jose-based retailer said Tuesday that the company is “converting most of its suppliers to consignment,” and that its shelves will be restocked over the next few weeks.” Tiered subs.

 

Red hot Costco shares fall after Oppenheimer downgrades, citing a record high valuation at CNBC. Read more

 

Carrefour denies weighing bid for French retail rival Casino at Reuters. Read more

 

L Brands promises an ‘evolution’ is ahead for Victoria’s Secret brand at CNBC. “There’s a big belief in the company that we need to evolve,” said John Mehas, head of Victoria’s Secret Lingerie…The company, by its own admission, stayed tied to its sexy imaging at Victoria’s Secret stores for far too long as its shoppers looked for more comfortable and inclusive options sold by brands such as Aerie and Third Love, among others.” Read more

 

Tipsheet Extra Stories

Smart grocery cart startup Caper bags $10 million

Scraping public data from a website probably isn’t hacking, says court

Growth drives Casey’s plans to open third distribution center

Shopkeeper bitten by a homeless person for the second time in four months

‘A Very Brady Renovation’ Scores Huge Ratings for HGTV

Read Tipsheet Extra Stories

 

**

Eye on Retail Tipsheet is must-read material for retail execs every weekday morning. Tipsheet stories are carefully curated bright and early every morning to ensure fresh and unique content.

 

Subscribe to Eye on Retail Tipsheet here

 

Contact us: Put your product or service in front of the most powerful retail execs in the world, send advertising inquiries to info@eyeonretail.net

 

Website: eyeonretail.net

Tipsheet: CA Strike Averted? | HD Supply +1.5% | D.Tree ‘Hardball’ | Groc. ‘Happy Hour’

/in

 

California grocery strike probably averted; contract includes pay raises, pension bump at LA Times. “The looming threat of a grocery store strike throughout Southern California appeared to be dissolving Monday as workers began voting on a new employment contract that seemed to appease all parties. Ralphs, Vons, Pavilions and Albertsons workers are voting through Wednesday on the deal brokered over the weekend…” Tiered subs.

 

HD Supply Q2 net sales +1.5% Press release

 

J.C. Penney looks to outdoor sports enthusiasts to reel in more consumer spending by Maria Halkias at Dallas Morning News. “Penney is expanding into the more rugged clothing with its own St. John’s Bay brand, both online and in about 600 of its 830 stores starting Thursday…It’s also creating outdoor shops with national brands — American Threads, The American Outdoorsman and HI-TEC — in about 100 stores and online starting Oct. 4.” Tiered subs.

 

Target to hire more than 130,000 temporary workers for its stores and distribution centers at CNN. “Last year, Target hired about 120,000 workers for the holidays. More than 40% of those employees stayed on with Target past the holiday season, according to the company.” Read more

 

Dollar Tree CEO on mitigating tariffs on Chinese imports: ‘We play hardball’ at CNBC. “I give great credit to both merchants’ teams. The things that we do, we’ve enlisted our vendors … The last thing we want to do is take any value out of the package at all,” he said in a one-on-one with Jim Cramer on “Mad Money.” “We play hardball, but I would say we’ve always been fair.” Video/Read more

 

The World Wastes Tons of Food. A Grocery ‘Happy Hour’ Is One Answer. by David Segal at NY Times. “Food that is nearly unsellable goes on sale at every one of S-market’s 900 stores in Finland, with prices that are already reduced by 30 percent slashed to 60 percent off at exactly 9 p.m. It’s part of a two-year campaign to reduce food waste that company executives in this famously bibulous country decided to call “happy hour” in the hopes of drawing in regulars, like any decent bar.” Tiered subs.

 

Amazon, Home Depot lease multistory Seattle warehouse by Keiko Morris at Wall Street Journal. “You have to go vertical because you can’t find a 50-acre space in the middle of a city close to the customer,” said Hamid Moghadam, Prologis ’s chief executive. Freight elevators capable of carrying forklifts and a ramp that enables trucks to drive right up to loading docks on the second floor help speed up delivery.” WSJ subs.

 

**A message from Real Coconut Water: Really sweet, 100% pure coconut water. PL or branded organic in Tetra Pak. Sell sheet | Website | Samples: info@eyeonretail.net

 

Jack Ma officially retires as Alibaba’s chairman at TechCrunch. Read more

 

‘We blew it’: Forbes named 99 men and only one woman on its list of ‘most innovative leaders’ by Jena McGregor at Washington Post. “Nextdoor CEO Sarah Friar, who is on the board of directors of Slack and Walmart, tweeted: “At first I thought maybe they had a men’s and women’s list,” followed by the slapping-my-head emoji.” Tiered subs.

 

Dollar General Announces Plans to Expand to 46 States In 2020 Press release

 

Food Lion Owner Searches for New CFO to Boost Sales, Cut Costs by Nina Trentmann at Wall Street Journal. “Dutch grocer Koninklijke Ahold Delhaize NV is looking for a new finance chief to boost sales and cut costs across 10 countries, including the U.S., its biggest market…Chief Financial Officer Jeff Carr won’t return as a member of Ahold Delhaize’s management board after his current term expires in April 2020.” WSJ subs.

 

Docs show Amazon planned to open dozens of cashierless Go stores this year — what’s the holdup? by Jay Peters at The Verge. “According to documents from 2018 viewed by The Information, Amazon planned to open 56 Go stores by the end of this year and 156 by the end of 2020, but so far it has only announced 18. Just 15 of those are open to the public…” Read more

 

More than 900 Amazon employees plan climate change walkout on Sept. 20 in solidarity with youth activists by Monica Nickelsburg at GeekWire. Read more

 

Target’s personalized loyalty program launches nationwide next month by Sarah Perez at TechCrunch. “Target Circle, will launch nationwide on October 6th, following a year and a half of beta testing in select markets. The program combines a variety of features, including 1% savings on purchases, birthday rewards and personalized offers and savings designed to make the program more attractive to consumers.” Read more

 

Shopify boosts delivery network plans with $450M deal for robotics company 6 River Systems at Financial Post. Read more

 

Fred’s has filed for bankruptcy and will close its 300 remaining stores at CNN. “…liquidation sales will take place at its stores over the next 60 days. “Despite our team’s best efforts, we were not able to avoid this outcome,” said CEO Joe Anto in a statement.” Read more

 

Tipsheet Extra Stories

Department store selling asymmetrical jeans for $462

Salesforce launches new ads that explain what the company actually does

Swiftly raises $15.6M, launches supermarket OS to help retailers battle Amazon

Lululemon’s first fashion brand, 10 years in the making, is here

DMVs in these states cashed in by selling drivers’ personal data

Read Tipsheet Extra Stories

 

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Eye on Retail Tipsheet is must-read material for retail execs every weekday morning. Tipsheet stories are carefully curated bright and early every morning to ensure fresh and unique content.

 

Subscribe to Eye on Retail Tipsheet here

 

Contact us: Put your product or service in front of the most powerful retail execs in the world, send advertising inquiries to info@eyeonretail.net

 

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Tipsheet: Millennials #1 Amazon/#4 WM/#5 Target | H.Depot @Sachs

/in

 

CVS, Walgreens and Wegmans announce changes to firearms policies by Kelly Tyko at USA Today. Read more

 

Nordstrom finally brings its mini ‘Local’ stores to New York at CNBC. “This builds on Nordstrom’s existing portfolio of three Local shops in California — on Melrose Avenue in Los Angeles, in Downtown Los Angeles and in the Brentwood neighborhood of LA — that offer personal styling services and alterations, and serve as a hub for buying online and picking up in person.” Read more

 

Moosylvania: Millennials favorite brands:

  1. Amazon
  2. Apple
  3. Nike 
  4. Walmart
  5. Target

Business Insider article

 

The human cost of Amazon’s fast, free shipping by Patricia Callahan at The New York Times via MSN. “An investigation by ProPublica identified more than 60 accidents since June 2015 involving Amazon delivery contractors that resulted in serious injuries, including 10 deaths. That tally is most likely a fraction of the accidents that have occurred: Many people don’t sue, and those who do can’t always tell when Amazon is involved, court records, police reports and news accounts show.” Read more

 

H&M stops buying leather from Brazil over Amazon fires at AP News. “Last week, VF Corp., the owner of Timberland, Vans and several other shoe and clothing brands said it also stopped buying leather from Brazil because of the rainforest fires.” Read more

 

Starbucks is developing a pick-up-only location in Manhattan at Fast Company. “The New York store, which is still in development, was inspired by the chain’s success with its Starbucks Now concept in China, where customers order in advance on mobile phones and pick up their half-caf, extra hot, grande coconut milk lattes in “express” shops without the wait and without having to talk to strangers.” Read more

 

**A message from Real Coconut Water: Really sweet, 100% pure coconut water. PL or branded organic in Tetra Pak. Sell sheet | Website | Samples: info@eyeonretail.net

 

Schnucks’ union members approve 3-year contract with grocer at St.Louis Post Dispatch. Read more

 

Neiman Marcus says there’s an art to sleeping, and now it sells mattresses for that by Maria Halkias at Dallas Morning News. “Neiman Marcus has partnered with four companies to start selling luxury mattresses online only. These aren’t the “S” brands of mattresses (Serta, Sealy, Stearns & Foster)…Neiman Marcus is selling brands most of us have never heard of: Aireloom, Royal-Pedic, Sferra and Shifman.” Tiered subs.

 

Alibaba dials up luxury push with $2 billion buy of Netease e-commerce arm at Reuters. “Alibaba Group has agreed to buy e-commerce business Kaola from Chinese gaming company NetEase for $2 billion, adding a platform that specializes in supplying curated luxury goods from abroad to domestic consumers.” Read more

 

Kroger unveils plans for a line of plant-based products, including sausage and deli slices at CNBC. “Simple Truth’s plant-based collection will launch this fall. It will include meatless burger patties and ground imitation meat as well as plant-based cookie dough, pasta sauces, sausages, deli slices, dips and more.” Read more

 

Why 47,000 grocery workers in California may go on strike by Nathaniel Meyersohn at CNN Business. “They need to open up a little bit and give us a little bit more piece of that pie that we deserve because we’re the ones in the trenches doing all the work,” said Jaime Escarcega, a Ralphs cashier in Riverside, California, who has worked at the chain for 14 years. “We feel like we’re coming up short.” Read more

 

Field Agent: The MVP Displays of Football Kickoff 2019 Pics

 

Nordstrom Will Let You Return Your Macy’s Online Order In Store by Jordyn Holman at Bloomberg. “The department-store chain, which opens two “Nordstrom Local” concept stores in Manhattan this month, will accept merchandise returns from rivals like Macy’s Inc. and Kohl’s Corp. in the new small-format locations, regardless of whether Nordstrom carries the same item.” Tiered subs.

 

Overstock.com promotes articles that feature its brand by April Berthene at Internet Retailer. “To get the most out of news articles that feature Overstock.com Inc., the home goods and mass merchant retailer is dedicating its marketing dollars to traffic going to certain news publications rather than to Overstock.com.” Read more

 

Amazon is testing a ‘new’ badge to help shoppers identify new products by Michael Grothaus at Fast Company. “Multiple sellers who spoke to CNBC said that right now it’s not clear what the criteria are for getting a product labeled with the “new” badge…But any product that does get the “new” badge could see a sales boost, as Amazon’s products that feature other badges typically stand out from the crowd.” Read more

 

Home Depot Management Presents at Goldman Sachs 26th Annual Global Retailing Conference

Richard McPhail, CFO (day three of new CFO job):

  • I think you have to start with the perspective that the U.S. consumer right now is exceptionally healthy.
  • We’re building about 30 flatbed delivery centers around the country. Our first one is open in Dallas at this point, just getting started.
    • …a truck of flatbed goods go out and make delivery stops as opposed to the current model where we drive around the stores and pick up those and deliver. 
  • We have now installed that new way-finding and environmental package in over 1,400 stores. We see a 140 basis point lift in our customer satisfaction scores when we do that. 
  • Pickup lockers…are now in over 1,100 of our stores.
  • Right now or as of Q2, over 50% of our online orders were actually picked up in a store.
  • We’re at almost a 0.5 million Pros on our B2B website currently, and by the end of the year, we’ll have a 1 million Pros onboarded.
  • …if you look at the past decade from 2009 to the end of 2018, we added five stores over that period. And at the same time, we increased our sales per square foot from $279 a square foot to $449 a square foot present day.

 

Mark Holifield

  • We’re now at about 20% private brand penetration.
  • We have sourcing offices in Asia, along with a lab in our headquarters in Atlanta and also a lab in China, where we can actually do that (value engineering) product breakdown.
    • …So we’re able to understand the cost and work with our manufacturers to really take costs out of the process.
  • In terms of country of origin, we’re continuing to shift…About six months ago, we opened the Southeast Asia sourcing office…

Full transcript at Seeking Alpha

 

Tipsheet Extra Stories

Jennifer Aniston’s InStyle Cover Causes Backlash

Millennials are drinking more because they’re having kids, Constellation Brands exec says

Walmart inks lease agreement for 90,000 SF office building in Bentonville

Support for Total Wine & More is waning in Queens

American Airlines mechanic accused of sabotaging flight

Read Tipsheet Extra Stories

 

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Eye on Retail Tipsheet is must-read material for retail execs every weekday morning. Tipsheet stories are carefully curated bright and early every morning to ensure fresh and unique content.

 

Subscribe to Eye on Retail Tipsheet here

 

Contact us: Put your product or service in front of the most powerful retail execs in the world, send advertising inquiries to info@eyeonretail.net

 

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Tipsheet: Bratspies/Ellison Speak | Duluth CEO Jumps | Neiman CFO Out

/in

 

Fed Lines Up Another Quarter-Point Rate Cut by Nick Timiraos at Wall Street Journal. “Federal Reserve officials are gearing up to reduce interest rates at their next policy meeting in two weeks, most likely by a quarter-percentage point…The idea of an aggressive half-point cut to battle the slowdown hasn’t gained much support inside the central bank…” WSJ subs.

 

Private sector hiring rebounds in August with 195,000 added at Fox Business. “…surging past analyst expectations of 149,000 even as recession fears continue to mount.” Read more

 

U.S. judge approves CVS purchase of insurer Aetna at Reuters. “But (the judge) took aim at the common practice of companies’ closing multibillion-dollar deals while the court review, required by the Tunney Act, was still in process. “If the Tunney Act is to mean anything,” Leon wrote, “it surely must mean that no court should rubberstamp a consent decree approving the merger of ‘one of the largest companies in the United States’ and ‘the nation’s third largest health-insurance company,’ … simply because the Government requests it!” Read more

 

Lands’ End Q2 US operated stores comp sales +7.5% “Net revenue for the second quarter decreased 3.1% to $298.3 million as compared to the same period last year reflecting 110 fewer Lands’ End Shops at Sears.” Press release

 

Kirkland’s Q2 comp sales -11.2% “CEO Woodward: ‘Store traffic remains challenging, and we expect near-term financial results to be impacted by promotional activity to bring inventory back into alignment and increased marketing spend to drive traffic, highlight new product and target new customers'” Press release

 

Sears laying off approximately 250 employees at HQ at USA Today. Read more

 

Neiman Marcus CFO to Depart After Less Than Two Years by Ezequiel Minaya at Wall Street Journal. “Neiman Marcus is on the hunt for a new finance chief…Adam Orvos, who has been chief financial officer at the Dallas-based company since April 2018, is scheduled to depart Oct. 11 to join another company, Neiman Marcus said this week. Mr. Orvos hasn’t disclosed his next position…” WSJ subs.

 

Michaels Q2 comp sales +0.3% Press release

 

**A message from X1 Ebike – Up to 37 miles on a single 4-hour charge. Folds into the size of a golf bag in seconds! GPS tracking, VIN # & alarm for security. Video | Website | Contact

 

American Eagle Q2 comp sales +2.0%: By brand, American Eagle’s comp sales -1.0%. Aerie’s comparable sales +16%. Press release

 

…American Eagle stock plummets after delayed back-to-school season led to disappointing same-store sales growth at CNBC. “The company said that sales were disappointing during the last two weeks of July…August was its strongest month in the quarter. The company’s also beat Wall Street’s estimates on profit and revenue.” Read more

 

Amazon announces new Fire TV devices, including first smart soundbar and more powerful Cube by Kurt Schlosser at GeekWire. Read more

 

The Buckle August comp sales +3.1% Press release

 

Buffalo Wild Wings joins forces with MGM Resorts International and its sports betting venture, Roar Digital…the partnership will deliver sports gaming experiences at a national scale inside Buffalo Wild Wings Press release

 

Duluth Trading Co. CEO named North American president at Under Armour at CNBC. Read more

 

Hurricane Dorian to help some retailers but hurt others at CNBC. “Foot traffic at apparel stores is expected to fall 25%, while visits to outlet centers will decline 32%. Restaurant traffic is expected to decrease 14%.” Read more

 

Signet Jewelers Q2 comp sales -1.5% Press release

 

Steve Bratspies, chief merchandising officer at Walmart, speaks at Barclays Global Consumer Staples Conference on Wednesday by Kim Souza at Talk Business. “Bratspies:  ‘We have a meeting of all the U.S. officers every Monday afternoon. And the first topic is the customer, all the time, and it’s data on NPS scores on our Clean, Fast and Friendly scores, which is a core metric coming out of our stores. And we look at them in total at a macro level and we look at them on a micro-level…'” Read more

 

Additional comments from Walmart’s Steve Bratspies at Barclays 2019 Global Consumer Staples Conference

Bratspies:

  • Right now all of our data and all of our surveys with our customers are saying that they feel pretty good about the economy and where they are.
  • (Millennials are more) receptive with private brands because private brand offerings out there, not only ours, but even competitors are just better than they used to be in the past.
  • Our electronics program is called Entertainment of the Future. It’s rolled out to a lot of stores. It will be in the vast majority of the chain by the end of next year.
  • …we’re testing a new layout in home, a new layout in sporting goods.
  • We’re going to be combining seasonal space in our stores. So if you think the traditional think Halloween, for example, and think the traditional set in our stores where we do costumes and all the décor, but candy is often in a — over in a different part of the store. We’re going to be building sections inside the store to put seasonal together.
  • We’ve combined a service counter in the back of our stores. So traditionally, we had the paint counter, we had the sporting goods counter, and in many stores we had the auto care center desk. And we’re moving now towards combining all of those into one desk.
  • …our national meeting with all of our store managers (is) in two weeks in Indianapolis. We have all the store managers there and we’re going to show them Produce 2.0.
    • (Produce 2.0 is) a lot about visual set and experience inside the store that the customer will see directly.
  • My wife’s a big user of our private brands, so she tells me all the time. So I’m sending texts to the team all the time. This one’s good. That one needs work.
  • Neighborhood Markets is doing great. They’re running strong comps continue to improve.

Full transcript via Seeking Alpha

 

 

Highlights from Lowe’s Marvin Ellison & David Denton presentation at Goldman Sachs 2019 Global Retailing Conference

Q: Is there one initiative that’s driven the most traction with pros so far?

Ellison:

  • I will say probably it’s the investment in job lot inventory
  • One of the first things that we did as a team is we started to do focus groups of pro customers that were loyal to us and pro customers that had defected over the years…
  • I will say in addition to that, basic things like having loading assistance. If I heard from one – probably I heard from 50 pros that the ability to leave your job site without having to take someone from the crew with you…

Q: Craftsman & brand partnerships

Ellison:

  • …when we look at the customers that come to Lowe’s to buy CRAFTSMAN product is roughly 60% of those customers are new to Lowe’s. So to me, it’s irrelevant about being exclusive.
  • …we have the best lineup in outdoor power equipment with CRAFTSMAN, Husqvarna, John Deere…
  • We have some other announcements (regarding other brand partnerships) we’ll be making in the latter part of the year.

Denton:

  • One thing that’s been interesting about bringing CRAFTSMAN into this footprint is that you’ve looked at it and it’s actually not cannibalizing other brands.

Q: Macro environment

Ellison:

  • …roughly two-third of what we sell we view as nondiscretionary…we feel very confident that those discretionary categories are holding up really well to levels that give us confidence that the consumer feels good about their economic situation.

Denton:

  • We do watch a little bit, I’ll say, at the high price points, are people trading down from, let’s say, $1,000 purchase to an $800 purchase. We’re not seeing – we’re actually seeing demand in high-ticket items actually accelerate, not decelerate.

Q: Do you expect your store base to be larger or smaller over the next two years?

Ellison: …we don’t see the growth of Lowe’s being driven by square footage…so very few new stores.

 

Q: Data initiatives behind pricing

Ellison:

  • …we’re developing a new price management system…it is going to be ready and implemented in Q4. 
  • In the first half of next year, we’re going to take the data analytics portion of the Boomerang acquisition and we’re going to merge that with our price management architecture.

Full transcript via Seeking Alpha

 

 

Tipsheet Extra Stories

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Tipsheet: Lebron Does Retail | Camping World Refocuses | WM/Kroger Asks Gov’t

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Coach owner Tapestry appoints Jide Zeitlin as CEO at CNBC. “Zeitlin, chairman of the board since November 2014, will replace Victor Luis, who oversaw the company’s acquisition of Stuart Weitzman in 2015 and Kate Spade in 2017. The company also said it is maintaining its fiscal 2020 outlook.” Read more

 

LeBron James to Open Experiential Retail Flagship in Miami by Nadia Neophytou at Hollywood Reporter. “The new 10,000-square-foot flagship store at 261 NW 26th St. is outfitted with an in-house photo studio complete with a prop house, art installations and a courtyard for “sporting and lifestyle events for the Miami community and global travelers,” according to a press statement, and is slated to open in early December.” Read more

 

Walmart to discontinue sales of some ammunition, asks customers not to open carry at The Hill. “The company will discontinue sale of short-barrel rifle ammunition…Walmart will also sell through the remaining inventory of handgun ammunition, as well as discontinue handgun sales in Alaska — the last state where the company still sells handguns…The retail giant will continue to sell long-barrel deer rifles and shotguns, as well as most of the ammunition and accessories they require.” Read more

 

…Read the full memo from Walmart’s CEO about pulling back on ammunition sales, asking the government to act at CNBC. Read memo

 

…NRA slams Walmart’s ‘shameful’ change to gun policies at The Hill. “The truth is Walmart’s actions today will not make us any safer. Rather than place the blame on the criminal, Walmart has chosen to victimize law-abiding Americans,” the NRA added. “Our leaders must be willing to approach the problems of crime, violence and mental health with sincerity and honesty.” Read more

 

Kroger joins Walmart in asking shoppers to leave guns home by Alexander Coolidge at Cincinnati Enquirer via USA Today. “The retailer also endorsed laws strengthening background checks and for keeping guns out of the hands of people deemed at risk of waging violence.” Read more

 

**A message from EasyLock: Lock your deadbolt with a simple twist! No key required – twist to lock. Sell sheet | Sample: info@eyeonretail.net

 

Amazon reportedly testing hand-scanning payment system for Whole Foods stores by Nicolas Vega at NY Post. “The system, code-named “Orville,” will allow customers with Amazon Prime accounts to scan their hands at the store and link them to their credit or debit card. It’s accurate to within one ten-thousandth of 1%, but Amazon engineers are scrambling to improve it to a millionth of 1% ahead of its launch, the source said.” Read more

 

Costco plans to open a second store in Shanghai after resounding success of its first store at China Knowledge. Read more

 

Camping World refocuses on RV sales as outdoor retail customers bug out by Thomas Barrabi at Fox Business. “Camping World plans to either sell, repurpose, relocate or close 27 to 37 stores that sell outdoor lifestyle products rather than RVs, Camping World’s core business.  The company has 165 locations that sell or service RVs.” Read more

 

AmazonFresh Expands to Indianapolis With 1- And 2-Hour Delivery Press release

 

Some Companies Offer a New Benefit: Payroll Advances and Loans by Anne Tergesen at Wall Street Journal. “Walmart introduced salary advances in late 2017. It has seen employees rely less on payday loans and bank overdrafts, said David Hoke, who oversees health and well-being…Of the company’s 1.4 million workers, 380,000 are frequent app users, Mr. Hoke said.” WSJ subs.

 

Russian food retailer VkusVill targets New York IPO in overseas foray at Reuters. Read more

 

Neiman Marcus’s new President & Chief Merchandising Officer comes from Ralph Lauren “Lana Todorovich will be responsible for driving the brand’s innovative merchandising offerings…She will report to Neiman Marcus Group CEO Geoffroy van Raemdonck.” Press release

 

Dick’s Fresh Market Named UNFI’s 2019 Grand Master Marketer at Progressive Grocer  Other store winners

 

Ariana Grande is suing Forever 21 for $10 million over ‘look-alike’ ad campaign by Sara M Moniuszko at USA Today. “According to the lawsuit, Grande was approached to participate in a campaign for the company earlier this year but turned down the endorsement deal…The lawsuit alleges Forever 21 and its beauty brand Riley Rose published “at least 30 unauthorized images and videos misappropriating Ms. Grande’s name, image, likeness, and music in order to create the false perception of her endorsement.” Read more

 

The NFL and TikTok  announce a multi-year partnership by Sarah Perez at TechCrunch. Read more

 

Ex-Family Dollar exec now Chief Merchandising Officer at Sally Beauty “Pamela Kohn most recently served as EVP, Chief Merchandising and Marketing Officer for the Family Dollar Division of Dollar Tree, Inc. Prior to that, she held the same role for The Fresh Market. Ms. Kohn also worked in a number of executive roles for Walmart, including Merchandising, Sourcing, Supply Chain, Store Operations and Real Estate.” Press release

 

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Tipsheet: Big Lots +1.2% | Ulta Downer | WM +GA Clinic

/in

 

Ulta Beauty Q2 comp sales +6.2% Press release

 

…Ulta shares plummet as profit and sales miss expectations and company slashes outlook at CNBC. “(CEO Mary) Dillon said consumers haven’t been picking up new rituals such as contouring or brow styling this cycle. Consumers have also been increasingly bypassing brick-and-mortar stores like Ulta and Sephora and turning to digitally native makeup brands like Glossier.” Read more

 

U.S. consumer spending increases solidly; income tepid at Reuters. “The Commerce Department said on Friday consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.6% last month after an unrevised 0.3% gain in June. Economists polled by Reuters had forecast consumer spending advancing 0.5% last month.” Read more

 

Walmart will offer mental health and other services at a new clinic in Georgia at CNBC. “It also went online with the site “Walmarthealth.com,” where patients can set up appointments. Walmart is testing the concept with the initial clinic and could open more in the future, according to people familiar with the matter who asked not to be named because the plans are confidential.” Read more

 

Big Lots Q2 comp sales +1.2% Press release

 

Broward Residents Preparing Homes, Getting Gas, Supplies Ahead Of Possible Hurricane Dorian Strike by Carey Codd at CBS 4 Miami. “This morning, cars sat backed up along State Road 84 in Davie waiting to get into Costco for gas. The lines to get into the store were long, too. “I’ve never seen anything like this ever,” said one Costco shopper.” Video/Read more

 

Build-A-Bear Q2 revenue -4.8% Press release

 

Amazon now owns part of the YES Network by Taylor Soper at GeekWire. “The New York Yankees, Sinclair Broadcast Group, Amazon, and other partners acquired the 80 percent stake of the YES Network not already owned by the Yankees. The total enterprise value of the deal is $3.47 billion.” Read more

 

Puma is opening a massive flagship store on Fifth Avenue. Here’s a first look inside at CNBC. Pics/Read more

 

**A message from EasyLock: Lock your deadbolt with a simple twist! No key required – twist to lock. Sell sheet | Sample: info@eyeonretail.net

 

Hy-Vee thinks smaller; offers no update on five proposed large format stores by John Ewoldt at Star Tribune. “When it entered the (Twin Cities) market in 2015, Hy-Vee CEO Randy Edeker said the Iowa-based chain aimed to roll out four new stores a year in the Twin Cities. Its eventual goal was to make the Twin Cities its largest market, surpassing Kansas City. But Hy-Vee now has several proposed stores for which it has no updates…And earlier this year, Hy-Vee dropped plans for a distribution center in Austin, Minn.” Tiered subs.

 

Hong Kong retail sales in July fell 11.4% – steepest in three-and-a-half years amid protests at Reuters. Read more

 

Walmart’s robot army has arrived by Katharine Schwab at Fast Company. “To find other ways that the robot could communicate with people, Skaff turned to what he thought would be a convention that everyone would understand: a car’s turn signal…“We expected the turn signals to just work,” Skaff says. “It was a big surprise that actually the answer is no. People had a hard time transcribing an experience from the road to one that’s indoors.” Read more

 

Senators ask Jeff Bezos to crack down on thousands of unsafe products on Amazon at CNBC. “Sen. Richard Blumenthal, D-Conn., Sen. Bob Menendez, D-N.J., and Sen. Ed Markey, D-Mass., asked (Bezos) to take action to stop the sale of unsafe products on Amazon…The letter was in response to a recent Wall Street Journal investigation, which found more than 4,000 items for sale on Amazon’s site that have been declared unsafe by federal agencies…” Read more

 

New Costco chicken plant in Nebraska is ready to go by Ken Anderson at Brownfield Ag News. “The new Costco poultry plant in Fremont, Nebraska will begin processing its first chickens next week…there will be a 45-week ramp-up to full production…will be providing Costco with more than two million chickens each week.” Bldg pic/Read more

 

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Eye on Retail Tipsheet is must-read material for retail execs every weekday morning. Tipsheet stories are carefully curated bright and early every morning to ensure fresh and unique content.

 

Subscribe to Eye on Retail Tipsheet here

 

Contact us: Put your product or service in front of the most powerful retail execs in the world, send advertising inquiries to info@eyeonretail.net

 

Website: eyeonretail.net