Archive for month: April, 2020

Neiman Marcus Skips Bond Payment, Starts Clock Ticking by Soma Biswas & Suzanne Kapner at Wall Street Journal. “The luxury retailer didn’t make several bond coupon payments due on Wednesday, according to people familiar with the matter. The missed payments set in motion grace periods of between five and 30 days for Neiman to make the payment before creditors can take action, these people said.” WSJ subs.

Walmart’s MoneyCard will let you direct deposit your coronavirus stimulus check by Dalvin Brown at USA Today. Read more

Instacart jumps into prescription delivery with Costco at TechCrunch. “…the delivery service is now available from nearly 200 Costco locations in Arizona, California, Delaware, Florida, Illinois, New York, Washington and Washington, D.C. The service, which was initially piloted at several locations in Southern California and Washington, will expand nationally in the coming months.” Read more

Jeff Bezos claims grocery delivery cuts carbon emissions by 43% compared to traditional shopping by Monica Nickelsburg. Read more

1 worker dead, 51 infected with coronavirus at Safeway distribution center in N. California by Daniel Stamos at Sacramento Bee. “The grocery chain confirmed the death and reports of the virus among its roughly 1,700 employees at the 2.2 million-square-foot center, which is 50 miles east of San Francisco and 50 miles south of Sacramento.” Read more

Apple will start reopening its retail stores, beginning with South Korea location at The Verge. Read more

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P&G beats profit estimates as consumers stock up on toilet rolls, detergents at Reuters. “For the third quarter ended March 31, net sales rose about 5% to $17.21 billion…Sales at its health care unit rose 7%, while fabric, home care unit sales rose 8%. The baby and feminine products business logged a 6% rise in sales. Beauty and grooming were the two segments where sales fell.” Read more

Kroger family of companies to accept SNAP benefits for pickup Press release

Saks Fifth Avenue Presses to Change the Product Cycle by David Moin at WWD. “The talks have been with 20 key brands in particular, including Brunello Cucinelli, Burberry, Proenza Schouler and Stella McCartney. So a fall cashmere turtleneck could be introduced in September instead of June; boots arrive close to cold months, and sandals arrive around spring.” WWD subs.

Fresh produce goes to waste as coronavirus wrecks supply chains at The Hill. “I think what it demonstrates is that the food supply chain that we have set up now, it’s not set up to pivot … quickly to address this kind of shock to the system,” Brian Ronholm, director of food policy at Consumer Reports, told The Hill.” Read more

Britain’s competition watchdog has provisionally cleared Amazon’s investment in food delivery start-up Deliveroo at CNBC. Read more

Michaels is launching contactless same-day delivery across the U.S. at Fox Business. “The new service will start April 17 in select stores throughout Texas, Alabama, Georgia, Florida, Louisiana, Mississippi, Tennessee, Oklahoma, South Carolina and North Carolina. By next week, the company will reportedly expand the service nationally.” Read more

Gamers May Have a Cure for Distressed American Shopping Malls by Felix Gilette at Bloomberg. “Not only have mall owners welcomed arenas in Florida, Mississippi and Montana, but they’re putting their money in, too. In January, Allied Esports announced a $5 million investment from Brookfield Property Partners, a global real-estate company that owns numerous malls. Simon Property Group, which owns the Mall of Georgia, is also an investor.” Tiered subs.

Tipsheet Extra

EU sees ‘Green Deal’ delays but keeps climate target plan

Farmers are chartering planes to bring in workers and save their crops

J.J. Abrams is producing a Justice League Dark series for HBO Max

How the Virus Transformed the Way Americans Spend Their Money

Land O’Lakes quietly removes image its longtime Native American maiden

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US retail sales for March plunged a record 8.7% (vs. -8.0% expected) at CNBC. “Economists see no respite for consumer spending in the second quarter, with estimates as low as a 41% rate of decline…” Read more

Homebuilder confidence index takes biggest one-month dive in its history at CNBC. “Builder confidence in the market for single-family homes plunged 42 points to a reading of 30 in April, the lowest point since June 2012, according to…HMI…The reading was expected to drop to 55. Anything above 50 is considered positive. The last negative reading was in June 2014.” Read more

Trump Says McMillon, Cook Among Dozens of CEOs to Advise on Economy at Bloomberg. “He named allies, including Sheldon Adelson of Las Vegas Sands Corp., but also Jeff Bezos, the CEO of Amazon.com Inc., who has been a repeated target of the president’s vitriol.” Read more

J.C. Penney explores bankruptcy as hopes for recovery fade at Reuters. “(J.C. Penney) has access to enough cash to survive in the months ahead…the sources said. Still, the company is contemplating a bankruptcy filing as one way to rework its unsustainable finances and save money on looming debt payments, which include significant annual interest expenses, the sources added.” Read more

Kroger CEO urges feds, states to label workers ’emergency personnel’ by Alexander Coolidge at Cincinnati Enquirer via USA Today. “Given the significant daily risk these workers face, we are calling on all of our federal and state leaders to take immediate action,” McMullen said in a joint statement with the UFCW president Marc Perrone. “Make no mistake, this designation is absolutely critical as it will ensure these front-line workers have priority access to personal protection equipment like masks and gloves.” Read more

Walmart will soon have 20 coronavirus testing sites running in 10 US states by Joseph Guzman at The Hill. “We currently have three sites open, and we have plans to expand testing to multiple sites next week,” a Walmart spokesperson told (Business Insider). “We have been learning a lot from our initial sites so that we can get the model right and are working hard to help expand testing in areas of need as quickly as possible.” Read more

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Saks Fifth Avenue reveals plans for fashionably sanitized post-coronavirus opening by Lisa Fickenscher at NY Post. “As for the face masks, they will likely be black, Saks President Marc Metrick told The Post. “We don’t want anything medical or scary looking,” Metrick said of the masks. “Masks could become the new iPhone cases. There is a chance it could become another new accessory.” Read more

PayPal now available on Walmart.ca Press release

Amazon may close French warehouses after court restrictions at Reuters. “Amazon currently employs close to 10,000 people at its six French warehouses, 6,500 of whom are on permanent contracts, according to the court decision.” Read more

Luxury consignment retailer The RealReal lays off 10% of workforce, furloughs 15% at TechCrunch. “Those furloughed include employees in The RealReal’s e-commerce centers, retail stores, luxury consignment offices, sales organization and headquarters.” Read more

Black grocery workers feel increasingly vulnerable to coronavirus by Nathaniel Meyersohn at CNN. “When the virus first started spreading, some customers and workers at Hill’s (Albertsons) store didn’t take it seriously because of a debunked myth that black people couldn’t get coronavirus. That quickly changed after two workers at her store tested positive for coronavirus. “We were being misinformed to think it doesn’t affect us,” she said. “And it does — greatly.” Read more

Amazon reportedly planning drastic cuts to affiliate commission rates starting next week at The Verge. “For instance, commission rates under the categories home improvement, furniture, lawn and garden, and pet products will see a commission rate of 8 percent per sale drop down to just 3 percent. For headphones, beauty products, and musical instruments, commission rates will go from 6 percent down to 3 percent.” Read more

Walmart is making it easier for people who use SNAP to buy food via the retailer’s grocery pickup service at Progressive Grocer. Read more

WHO recommends governments restrict alcohol access at CNBC. “The World Health Organization’s regional office for Europe recommended governments restrict access to alcohol and “any relaxation of regulations or their enforcement should be avoided.” More than 3 million people die every year from alcohol, the WHO said…” Read more

Best Buy to furlough about 51,000 employees as its stores remain closed to customers at CNBC. Read more

Kroger VP Gilliam Phipps joins Sprouts as chief marketing officer at Supermarket News. “Phipps comes to Phoenix-based Sprouts from The Kroger Co., where he most recently served as vice president of branding, marketing and Our Brands, the retailer’s portfolio of private brands…Prior to Kroger, Phipps served more than 11 years in various roles at H-E-B, most recently as director of own brands…” Read more

Tipsheet Extra

As coronavirus empties streets, speeders hit the gas

New IRS site could make it easy for thieves to intercept stimulus payments

7 ways of doing business by Zoom that are here to stay

Selfies are over. Maskie is the new Instagram trend

Marine barbershops abuzz with demand for high-and-tight cuts

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Walmart’s chief operating officer for U.S. e-commerce Jamie Iannone will become eBay’s new CEO at CNBC. “Iannone was credited for growing the membership and online sales of Sam’s Club. He had just been promoted by Walmart in late February to overseeing the retailer’s digital strategy and online business.” Read more

Amazon stops accepting new online grocery customers amid surging demand at Reuters. “Amazon said it would have to relegate all new online grocery customers to a wait list starting Monday while working on adding capacity each week. In recent weeks, it increased the number of Whole Foods stores offering grocery pickup ​to more than 150 locations, up from 80 previously.” Read more

Smithfield warns of meat shortages during pandemic at Reuters. “Smithfield extended the closure of its Sioux Falls, South Dakota, plant after initially saying it would idle temporarily for cleaning. The facility is one of the nation’s largest pork processing facilities, representing 4% to 5% of U.S. pork production, according to the company.” Read more

People are baiting Instacart workers with huge tips then slashing them to zero at The Verge. “One Instacart worker said their tip was dropped from $55 to $0 despite finding everything the customer needed. Another worker claimed their tip changed to $0 since they could not find toilet paper in stock, to which the customer described in the feedback report as “unethical.” Read more

Walmart CEO Doug McMillon @ Today Show “Lately we’ve seen more grooming products,” McMillon said. “People are starting to need a haircut, so you start to see more beard trimmers and hair color and things like that. It’s interesting to watch the dynamic play out.” Video/Read more

Walmart’s ‘Deli of the Future’ part of remodel plans for 2020 by Kim Souza at Talk Business. “Three Supercenter stores in Northwest Arkansas recently received deli renovations, which included new fixtures, signage and relocation of space within the deli…Walmart’s new deli design is similar to San Antonio-based grocer H-E-B’s layout but on a smaller scale.” Read more

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Where Have 140 Million Dutch Tulips Gone? Crushed by the Coronavirus by Nina Siegal at NY Times. “Demand for tulips dropped precipitously as flower shops around the globe have shut, consumers have gone into lockdown and celebrations have been canceled.” Read more

Amazon redirects some employees to build out COVID-19 testing capacity for its front-line workers at GeekWire. Read more

Lowes HR director quits ‘effective immediately at Daily Mail. “Jennifer Weber had been executive vice president of HR since March 2016. She sold 12,589 shares at $112.62 per share for a total of $1.42m in September. Weber reportedly received a further $2.5 million following her resignation.” Read more

Department stores top list of consumer companies most likely to default on debt at CNBC. “Department store operators…had the highest median, one-year probability of default, 42.1%, as of April 7…Second to department store chains are hotels, resorts and cruise lines.” Read more

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KNOXVILLE – Three Pilot Travel Center employees killed in stabbing at USA Today. “The suspect has been identified by the TBI as Idris Abdus-Salaam, a 33-year-old truck driver from Durham, North Carolina…The deputies confronted Abdus-Salaam, who was armed with a knife, in the parking lot. One of the officers fatally shot him after he refused to drop his weapon, Earhart said.” Read more

Teen spending takes a dive: Guys splurge on footwear, while a natural look for girls hurts makeup sales at CNBC. “Teens reported their annual spending was down 13% to $2,300 compared with spring 2019, the lowest spending level reported by teens since fall 2011.” Read more

Panera Bread is selling groceries as restaurant sales plummet at CNBC. “Customers are able to order breads, bagels, milk, yogurt, cream cheese and fresh produce…Panera CEO Niren Chaudhary said the chain lost half its business once its dining rooms closed.” Read more

Pinterest adds new “shop” tabs by Sarah Perez at TechCrunch. “The new Shop tab on Search will help users find in-stock items from retailers when they perform a search query, like “spring outfits,” “home office décor” or “kitchen remodel,” among other things. Before, users would have to scroll through a variety of search results, only some of which may have been shoppable.” Read more

Amazon to fire employees ‘intentionally’ violating social distancing after 2 strikes at Fox Business. Read more

Trader Joe’s Employees Say Virus Response Was Haphazard and Chaotic by Mary Pilon at Bloomberg. “Interviews with dozens of crew members paint a picture of a tumultuous two weeks as the company’s policies rapidly changed.” Tiered subs.

PriceSmart March comp sales +15.7% Press release

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Grocery stores turn to robots during the coronavirus by Nathaniel Meyersohn at CNN. “I strongly believe that the current health crisis will accelerate the adoption of robots in retail,” said Steven Keith Platt, research director for the Retail Analytics Council and adjunct professor at Northwestern University. “Short-term, this is to address health concerns” of workers and customers, he said. In the long term, robots in stores will stock shelves and prepare food.” Read more

Grocery store execs get a taste of the hard life on coronavirus front lines by Jake Edmiston at Financial Post. “Angie Kim, a senior director of finance (at Loblaw), used to be a store manager years ago, so she knows how they work. She volunteered and has since been working 12-hour days…“I do struggle every day when I wake up, like, ‘Can I do it again?’” Kim said…At Loblaw, roughly 400 corporate-level staff now work at stores.” Read more

Illinois working with the federal government on a plan to make online grocery delivery possible for SNAP recipients in the state at Chicago Tribune. “We can’t have a pandemic and then all of a sudden we change in a matter of days,” Odoms-Young said. “USDA is working on it, and that is really all we can ask.” Read more

Albertsons, UFCW seek ‘first responder’ status for grocery workers at Supermarket News. “That classification will enable those grocery workers to be prioritized for testing and personal protection equipment as the country continues to battle the spread of COVID-19.” Read more

…In support of this undertaking, the entities placed a full-page advertisement in the April 7 print edition of The New York Times.

Why NYC grocery stores that cater to the rich are struggling amid coronavirus by Lisa Fickenscher at NY Post. “That’s because the well-heeled locals have since hightailed it out of town to wait out the pandemic in roomier digs in the Hamptons or the Berkshires, grocers say.” Read more

Tesco defends dividend payout as warns coronavirus costs could top $1 billion at Reuters. “Tesco has defended its decision to pay investors a 635 million pound ($782 million) dividend while accepting business tax relief from the British government aimed at helping distressed retailers through the coronavirus crisis.” Read more

Pandemic deals blow to plastic bag bans, plastic reduction at AP. “Grocery worker unions, too, have joined the chorus. The union that represents Oregon supermarket workers is lobbying for a ban on reusable bags, and a Chicago union called for an “end to the disease-transmitting bag tax.” Read more

Fundraiser for critically injured Walmart security guard suspended at Montreal Gazette. “New information in the case of the Walmart security guard critically injured in an apparent instance of rage over COVID-19 shopping restrictions shows there may be more behind the incident than first reported…An online fundraiser that raised more than $160,000 for the victim’s family has also been suspended…” Read more

Tipsheet Extra

Grocery store customers tackle man who coughed, spit on food

Microsoft buys Corp.com domain so bad guys can’t

Amazon Dodges a Counterfeit Bullet in Europe, But What About the U.S.?

Steak-umm emerges as unlikely coronavirus misinformation watchdog

Amazon pilots disinfectant fog at Staten Island warehouse

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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.

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