Wal-Mart, Walgreens & Target accused of selling adulterated ‘herbals’ by Sarah Kaplan at Washington Post. “Wal-Mart was the worst offender: None of its six supplements that were tested were found to contain purely the ingredient they advertised. Target’s supplements were the least misleading of the lot — though that isn’t saying much, since tests on six of the brand’s products resulted in only one unqualified positive. Two of Target’s other supplements contained DNA from other plants alongside their purported ingredients, while the remaining three tested negative.” Read more

…Retailer Response by Anahad O’Connor at NY Times. “Walgreens said it would remove the products from its shelves nationwide, even though only New York State had demanded it. Walmart said it would reach out to the suppliers of its supplements “and take appropriate action.” Target did not respond to requests for comment.” Read more

Target liquidation sales could start Thursday, retailer seeks court approval at Financial Post. “Target Canada will seek court approval Wednesday to allow a group of liquidation companies to start to sell off the contents of its Canadian stores.” Read more

Canadian pharmacists fighting Target Canada by Francine Kopun at Toronto Star. “Franchisees were told to be ready to hit the ground running as the first weeks were the most critical in building up a client base, said Gavrilidis. Instead they were hampered by fax machines that didn’t work on the first day, making it impossible to fax doctor’s offices for prescriptions. The computer software they had to use was relatively untested and difficult to operate, said Gavrilidis.” Read more

Seattle Times: 10 years later, Amazon celebrates Prime’s triumph by Jay Greene. “Prime started when an Amazon engineer named Charlie Ward pitched the idea in a digital employee-suggestion box. At the time, Amazon offered customers free shipping on purchases of $25 or more, as long as they were willing to wait a few extra days for their order to arrive. Ward thought some customers would be willing to spend more, and might even shop more often if they could be part of a buying club that offered rapid shipping.Bezos seized on the idea and pulled together a group of executives in November 2004 in the boathouse at his Medina home.” Read more

Clorox Loses ‘Club Store’ Suit by Andrew M Harris at Bloomberg. “Clorox lost a bid to dismiss a novel antitrust lawsuit by a Wisconsin supermarket challenging the household product maker’s policy of only selling bulk packages to large retailers.  Woodman’s Food Market Inc., a 15-store grocery chain, claims Clorox last year adopted a policy of selling its large-pack products only to super-stores such as Costco Wholesale Corp. and Wal-Mart Stores Inc. unit Sam’s Club.” Read more

Amazon in Talks to Buy Some of RadioShack’s Stores at Bloomberg. “Amazon has considered using the RadioShack stores as showcases for the Seattle-based company’s hardware, as well as potential pickup and drop-off centers for online customers, said one of the people, who asked not to be named because the deliberations are private.” Read more

Target joins industry trend, will open more express stores this year by Kavita Kumar at Star-Tribune. “(Target) said this year it will open nine smaller-format stores and six big-box stores. “For these big, mature retailers, there’s just nowhere else to go with their full, general merchandise stores,” said Brian Yarbrough, an analyst with Edward Jones.” Read more

…Philly/LA/DC/San Francisco/Chicago by Phil Wahba at Fortune. “Beyond this year, Target is also looking into expanding the TargetExpress concept in greater Philadelphia and in Los Angeles, as well as additional such stores in metro Washington, San Francisco and Chicago.” Read more

WSJ: Staples, Office Depot in Advanced Talks to Merge by Liz  Hoffman and Dana Mattioli. “The price and structure of the proposed deal couldn’t be learned. Staples has a market value of about $11 billion, while Office Depot, which in 2013 absorbed rival OfficeMax, has a market value of about $4 billion. There is no guarantee a deal will be reached, the people cautioned.” Read more (Subscription)

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Target pharmacists seek protection as Wal-Mart secures patient records by Marina Strauss at Globe & Mail. “We’re the illegitimate child,” said Stavros (Steve) Gavrilidis, a Target pharmacist in Windsor, Ont., and and secretary of the Pharmacy Franchisee Association of Canada. “We want to be recognized” in Target’s bankruptcy protection process.” Read more

Dick’s Announces that Chief Financial Officer Andre J. Hawaux will Assume Additional Responsibilities as Chief Operating Officer  Read the release

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Eye-on-Retail is a daily tipsheet read by thousands of Retail Merchants & Executives every weekday morning. Eye-on-Retail is created and delivered early AM every day.  We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s happening in the world of retail. Contact us at info@shiftmarketinggroup.net.

Shareholder meeting shows Costco bounty by Angel Gonzalez at Seattle Times. “Costco’s worldly cornucopia was highlighted at the Bellevue gathering, where hundreds of stockholders lined up for freebies — from maple-leaf-shaped bottles of Canadian maple syrup to Spanish extra virgin olive oil, Kirkland Signature roasted seaweed and an instant coffee popular in Taiwan. There was also a mammoth-sized Toblerone chocolate bar and vats of vegemite, a spread popular in Australia.” Read more

Dick’s Sporting Goods not for sale after all by Josh Kosman at NY Post. “(Dick’s) will likely not be sold because CEO Edward Stack, whose family has most of the sporting good retailer’s voting stock, wants to keep control of the business, according to bankers familiar with his thinking.” Read more

Amazon smashes Street forecast; stock soars 14% by Karma Allen at CNBC. “Amazon issued fourth-quarter earnings of 45 cents a share, down from 51 cents per share a year ago, but soaring past expectations of 17 cents…The company said worldwide Prime memberships grew 53 percent last year—up 50 percent in the U.S. and “even a bit faster” abroad.” Read more

…Amazon’s Press Release “Full Year 2014 – Net sales increased 20% to $88.99 billion, compared with $74.45 billion in 2013.” Read the release

Sears Canada bused fired Target workers to its headquarters last week to talk jobs: ‘We care about you’ at Financial Post. “We felt like we had to reach out and say ’We’re here,”’ Boire said in an interview with The Canadian Press. “Saying ’We care about you’ and ’We may not have a job for you today, but we may in six months’ — it’s the right thing to do.” Read more

Dick’s Sporting Goods #1 in Omnichannel Study by Don Davis at Internet Retailer. “Those tests included delivering in no more than three days, correctly answering an e-mailed question within 24 hours and letting a consumer check out in no more than five clicks or providing one-click checkout…The other six, in alphabetical order, are Kate Spade (No. 176), Office Depot Inc. (No. 9), Ross-Simons Inc. (No. 213), The Home Depot (No. 16), Williams-Sonoma Inc. (No. 21) and Zappos.” Read more

Walmart greeter told to stop saying ‘Have a blessed day’ at My Fox Atlanta. “When asked if Phillips was specifically told to quit saying this, a Walmart spokesman wrote, “Yes and that was not correct guidance because it doesn’t reflect any Walmart policy.” The controversy sparked an online firestorm, with hundreds of comments and shares in support of Phillips’ posted on the FOX 5 Facebook page.” Read more / See the video

NY Post: Costco worker says management mocked his Tourette’s by Julia Marsh & Jennifer Bain. “The supervisors looked the other way when co-workers yelled “hut-hut-hut” at Fox, mimicking his uncontrollable grunts, the suit says…Fox is seeking unspecified damages and is currently on leave.” Read more

Best Buy shifts emphasis from Super Bowl ads to digital marketing by Kavita Kumar at Star-Tribune. “As often happens when a new marketing executive comes on board with their own ideas, other leaders in the department are on their way out. Best Buy confirmed to the Star Tribune that Scott Moore, a senior vice president of marketing who has been with the firm for more than a decade, and Gayle Malcolm, vice president of advertising, will be leaving the company.” Read more

Target’s Kim Carswell to Present at Sustainability Conference “Target began using How2Recycle on private label packaging in 2013 as an official member of the program. Hear Kim Carswell, Group Manager of Owned Brands Packaging, talk about Target’s top 10 takeaways from their participation in the program.” See the agenda

Amazon’s headcount tops 150,000 after adding nearly 40,000 employees in 2014 by Rachel Lerman at Puget Sound Business Journal. Read more

Canada: Target’s $8,000 cheque for student conference bounces at CBC News. “Their accounts were frozen,” Normand said. He also had to pay a $5 penalty for the bounced cheque.” Read more

Why Nelson Peltz cut his Family Dollar stake by 66% at CNBC. “Investor Nelson Peltz’s Trian Fund Management slashed its stake in Family Dollar Stores by more than two-thirds to 2.07 percent, days after the company’s shareholders agreed to Dollar Tree’s $8.5 billion buyout offer.” Read more

Walmart Coordinates Northeast Snow Relief from Bentonville Office at KNWA NBC. “The Walmart emergency operation center in Bentonville is the hub of communication for the world-wide retailer, and senior manager Lucas McDonald sits at the helm. He says they work around the clock to make sure stores have support. “Yeah so we have 24/7 operations, anytime our associates or operators need anything, they call us directly. whether it’s two A.M. or two P.M. in the afternoon.” He said.” See the video / Read more

Amazon Local Services Isn’t Blowing Away Consumers, Merchants at The Street via Dallas News. “Alex Lima of New York-based FireIce Data, an IT services provider, says he signed up to be listed as one of the local services but has yet to reap any benefit. “Well the experience is no experience at all,” Lima said. “I will not recommended; there is no business.” Read more

What Target’s fail says about Canadians by Karen von Hahn at Toronto Star. “1. We don’t shop for sport…2. We are extremely discerning…3. If we’re not urban, we’re rural…4. We are distrustful of hype.” Read more

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Sneak peek as Target prepares to open Kailua, Hawaii store at KHON 2. “A store is also slated to open in Kahului in March. It will be the first Target store on Maui.” See the video & pics / Read more

Home Depot #1 in Social Media by Mike O’Brien at Click Z. “The social media management company looked at social data from 18 national retail chains as part of its upcoming Social@Scale Journal…Rounding out the overall top five were PetSmart, Kohl’s, BJ’s, and Target.” See the rankings / Read more

Amazon’s secret weapon: Prime members spend $60 billion a year by Rachel Lerman at Puget Sound Business Journal. “A new study by Consumer Intelligence Research Partners(CIRP) shows Prime members may spend an average of $1,500 each year on the site. That’s more than double the $625 non-members spend.” Read more

Albertsons and Safeway agree to divest 168 stores to win antitrust approval for merger at Reuters. Read more

Wal-Mart Argentina’s CEO will also oversee the retailer’s Chile operations by Katie Evans at Internet Retailer. “When Wal-Mart Chile CEO Gian Carlo Nucci retires in June, the world’s largest retailer plans to add Wal-Mart Chile to Wal-Mart Argentina president and CEO Horacio Barbeito’s portfolio.” Read more

Amazon triples the number of items that can contribute to free shipping by Shan Li at LA Times. “The Seattle company has offered free shipping on qualifying orders over $35, but with a catch — all products in a basket had to come from the same seller. But the retailer said Tuesday that items from multiple merchants — including those that don’t ship through Amazon — could be combined to qualify for the free shipping minimum.” Read more

China Accuses Alibaba of Lax Oversight of Merchants by Lulu Yilun Chen at Forbes. “The scathing report by the State Administration for Industry & Commerce accused Alibaba of allowing merchants to operate without required business licenses, to run unauthorized stores that co-opt famous brands and sell fake wine and handbags. Alibaba employees took bribes, and the e-commerce giant didn’t fix flaws in customer feedback or internal credit-scoring systems, the report said.” Read more

Target failed Quebec too by Francine Kopun at Toronto Star. “Their biggest mistake, according to Blais, was basing the success of their business model on changing Canadian shopping habits. “Target executives themselves realized that Canadians were less likely to (one-stop) shop than Americans – and intended to change that in order to succeed,” said Blais, citing a press interview with former Target Canada president, Tony Fisher. “So, your success is predicated on changing the way Canadian’s shop? Good luck with that,” said Blais.” Read more

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Eye-on-Retail is a tipsheet read by thousands of Retail Merchants & Executives. It’s created and delivered early AM every weekday. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s happening in the world of retail.

Employee ‘fatally shoots’ manager, self at NYC Home Depot by Frank Rosario, Larry Celona & Jamie Schram at NY Post. “I heard some shots towards the back of the store. It sounded like four or five,” said an employee at the store on West 23rd Street between Fifth and Sixth avenues. I heard someone yell, ‘Oh, my God, he’s dead!’ Everyone was running and screaming and ducking,’’ Esdaile had been arguing with the manager, 38, in Aisle 12 just before about five shots rang out, witnesses said.” Read more

Top Target Canada managers get big cash payouts as stores close by Sophia Harris at CBC News. “The traditional view is that it’s all hierarchy driven. Companies would say that the top guy has to make sure that there’s an orderly wind down,” says the professor who teaches at the Rotman School of Management at the University of Toronto.”If I were Target, I think I’d be very concerned about the possibility of sabotage and so forth. Also, imagine what the motivation of these workers would be? Why would they want to do a good job? “I think that Target is setting itself up for even more difficult times winding down,” he concludes. Read more

13 and 11-Year Old Arrested For Setting Fire To Walmart Store at The Smoking Gun. “According to investigators, the boy stole a lighter while inside the Columbia store and, with his cousin, used it to set a fire in the Walmart’s greeting card aisle. The ensuing blaze caused significant damage to the store, though no injuries were reported.” Read more

Mom Sues Target Over Son’s Suicide by Kim Baldonado at NBC 4 Southern California. “The suit claims 22-year-old Graham A. Gentles, a former cashier at the retail chain’s Pasadena store, was humiliated when he was subjected to what the family’s attorney called a “walk of shame,” a ritual during which the employee is paraded around the store in handcuffs.” Read more / See the video

Amazon, E-Commerce Rivals Fuel Commercial Property Boom in India at Reuters via Recode. “Demand from e-commerce firms, a tiny fraction of India’s retail industry, accounted for as much as 40 percent of 1.7 million square feet of warehouses leased in 2014 — a seven-fold increase from 2013, according to consultants CBRE South Asia. Warehouse rents have risen by a quarter over the past year.” Read more

Gilroy (CA) Costco Says Shoppers May Have Been Exposed to Measles at NBC Bay Area. “The infected person may have also visited a Walmart, located across the street, and a restaurant in the area…The store is warning customers through fliers that if they were inside the store at 7251 Camino Arroyo on Jan. 18 between the hours of 4 to 6 p.m., they may have been exposed to measles.” Read more / See the video

Amazon Japan says it’s cooperating with police child porn probe at Bloomberg via Japan Times. “Aichi Prefectural Police conducted raids on the Internet retailer’s Tokyo headquarters and a distribution center in Chiba Prefecture on Jan. 23, seeking evidence that Amazon Japan’s website may have been used by sellers to trade porn goods.” Read more

UPS Hints it will Charge Retailers More by Phil Wahba at Fortune. “Though customers enjoyed high quality service, it came at a cost to UPS,” said CEO David Abney. He also hinted that retailers would stop getting a (relatively) free ride and bear more of that cost next Christmas period. “Going forward, we will reduce operating costs and implement new pricing strategies during peak season.” Read more

Google Looks To Expand Wallet Use, WePay Integrates Instant Buy API by Ingrid Lunden at TechCrunch. “Google is reportedly eyeing up an acquisition of Softcard to expand Google Wallet services to more points of sale with retailers, but it also wants to grow its position in the wider world of mobile-based transactions to compete with the likes of PayPal by way of its Instant Buy AP.” Read more

UK: Amazon controls quarter of games and music sales by Simon Neville at The Independent. “(Amazon) was the big winner in physical sales of music, games and DVDs, controlling 25.6 per cent of the market, with Tesco trailing in second position with 14.7 per cent and HMV with 13.9 per cent, according to Kantar Worldpanel.” Read more

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Eye-on-Retail is a tipsheet read by thousands of Retail Merchants & Executives. It’s created and delivered early AM every weekday. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s happening in the world of retail.