Thursday Tipsheet: Wmart ‘Humbled’, ‘Cut Muscle’ | Costco/Alibaba Took 1 Yr | Amazon Adds 80K

 

“Wal-Mart to add two online fulfillment centers, build fewer supercenters” by Kim Souza at The City Wire. “The new centers will be located in Bethlehem, Penn., and Atlanta, and each will be approximately 1.2 million square feet…Spending on traditional brick and mortar stores has been trimmed by nearly $500 million this year to $11.5 billion. Next year Wal-Mart said it plans to spend between $10.4 billion and $11.4 billion, a reduction of another $600 million.” Read more

 

“Walmart U.S. CEO: “We have cut muscle instead of fat.” by Kim Souza at The City Wire. “I have gotten some 3,000 emails around 260 a day from my teams in the field. I can sense new energy because they have a voice they want to share and I have learned tons,” Foran said. “It’s been an unvarnished appraisal, a diagnostic review of our business from Springfield to Dallas, Atlanta to Grand Rapids and Detroit this past Sunday.” Read more

 

“The Humbling of Wal-Mart: ‘There Is No Excuse for Us Not to Be Doing Better'” by Susan Berfield at Bloomberg. “McMillon said Wal-Mart still has problems keeping the right items in stock and helping customers get through checkout lines quickly. “We cannot let the competition beat us on price,” …Greg Foran, head of U.S. stores, also noted that in some places, Wal-Mart wasn’t offering the lowest prices.” Read more

 

“Walmart will accelerate investments in e-commerce and moderate global square footage growth” Read the release

 

“Walmart CEO Outlines Growth Strategy” Read the release

 

“Costco-Alibaba partnership was a year in the making, CFO says” by Rachel Lerman at Puget Sound Bus. Journal. “Costco is selling about 100 products on Alibaba’s TMall platform, Galanti said. It’s mostly food, health and beauty items. “Hopefully, if it works, we’ll continue to add products,” (Richard Galanti) said.” Read more

 

***A message from Lock-it Block-it: 79% don’t feel safe at home & 5,000 kids fall from windows each year. Lock-it Block-it is an adjustable window security bar that keeps open windows & doors secured to let the fresh air in! This patented security bar replaces clumsy wooden sticks and creates a new category for window security. And the average home has 16 windows! Easy to install – easy to use – grow your safety category with this unique product. See the sell sheet / See the video / lockitblockit.com / info@shiftmarketinggroup.net

 

“Best Buy bets on Intel pop-up stores to drive traffic” by Kavita Kumar at Star-Tribune. “As it looks to bolster its reputation for technological expertise, Best Buy Co. Inc. has teamed up with Intel Corp. to showcase concepts such as augmented reality and 3-D printing that are not yet in the mass market.” Read more

 

“Sears Canada Names Boire Acting CEO” by Lauren-Coleman Lochner at Bloomberg “Boire spent the earlier part of his career in the consumer electronics business, working for Sony Electronics Inc. for 17 years in various roles and then moved to Best Buy Co. as general merchandise manager.” Read more

 

“Amazon Creating 80,000 Seasonal Jobs at Fulfillment Centers” “Amazon now has more than 50 fulfillment centers in the U.S. and will have more than 15 sortation centers by the end of 2014. The new network of sortation centers is fueling a range of innovations like Sunday delivery.” Read the release

 

“Buffett sells off ‘huge mistake’ Tesco” by Catherine Boyle at CNBC. “Berkshire, which used to own close to 5 percent…now holds less than 3 percent, according to a stock market filing on Thursday.” Read more

 

“Issaquah council OKs Costco headquarters expansion” at KOMO News. “The Issaquah City Council approved a 30-year agreement Monday with Costco that will allow the warehouse store chain to expand its headquarters as needed in the future.” Read more

 

“Retailers pass on Google Express” by Shalene Gupta at Fortune. “American Eagle Outfitters, Office Depot, and grocery store chain Lucky no longer want to hitch a ride…While Target is one of the retailers signed up for Google Express, it is not planning to expand into Google Express’s new cities…“Target has taken a test-and-learn approach with Google Express,” Eddie Baeb, a Target spokesperson.” Read more

 

“Westlake Ace Hardware will close its KC distribution center” at Kansas City Star. “Westlake Ace Hardware said it plans to close its Lenexa distribution center by July 31, 2015. The 265,000-square-foot facility, which also houses the company’s headquarters, is at 14000 Marshall Drive. Westlake said its executive operations will remain at the Lenexa location.” Read more

 

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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 unique because it’s timely, smart and fun. It’s created early AM every weekday and delivered between 7-8 am CST. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s really happening in the world of retail.

 

 

 

Wednesday Tipsheet: D.Gen. = Lowest Prices | Amazon Opens 2 in CA | Seattle’s “Am-holes”

 

“Amazon Will Open Two Pop-Up Stores in CA Next Week” by Alice Truong at Fast Company. “Amazon confirmed Tuesday that it is opening up pop-up stores in San Francisco and Sacramento, California, next week for the holiday shopping season. The pop-up stores will carry Amazon-branded e-readers, tablets, smartphones, andstreaming media players. “While customers can already see our products online and at retailers like Best Buy and Staples, we wanted to provide another option to try out our full lineup leading into the holidays,” a representative told Fast Company.” Read more

 

Kantar:  And the Retailer with the Lowest Prices is...by Courtney Reagan at CNBC. “Dollar General widened its lead over behemoth Wal-Mart—which ranked second—with an overall basket price that came in 2.5 percent lower…Target‘s prices were the least competitive of the six stores studied, with a basket that was 52 percent more expensive than Dollar General’s.” See the price comparison chart

 

“Whole Foods to Rate Its Produce and Flowers for Environmental Impact” by Stephanie Strom at NY Times. “The upscale grocery chain will rate the produce of suppliers electing to participate in the program, Responsibly Grown, as “good,” “better,” or “best,” depending on, for example, how they handle plastic waste in their operations and whether they provide conservation areas to foster bees, butterflies and other pollinators.” Read more

 

“Amazon’s Company Town? The retail behemoth feels at home in Seattle. But the city’s not so sure.” by Nicole Brodeur at Politico. “It was as if one day, Seattle woke up to find that 30,000 new neighbors had moved in, with all the attendant headaches you can imagine: traffic jams, housing shortages and soaring rents. There’s a new, laissez-faire working culture of dressing down and dogs at your desk. Buses are so loaded with so-called “Am-holes” that they rush past stops.” Read more

 

“Target Takes Trick-or-Treating to Instagram” by Ashley Rodriguez at Ad Age. “The retailer is transforming users’ Instagram feeds into “Halloween Hills,” a virtual neighborhood made up of taggable images that are displayed together. Each image has two homes – a trick and a treat – that take users to different profiles when they’re tapped.” Read more

 

“Marvin Ellison gets $4M signing bonus to be J.C. Penney’s next CEO” by Danielle Abril at Dallas Bus. Journal. “In addition to his signing bonus, Ellison will also be paid a $1.3 million base salary, compared to Ullman, who had a base salary of $810,606 in fiscal 2013. The pay package also includes a performance-based annual bonus, which could be up to 300 percent his base salary or an additional $3.9 million for 2015.” Read more

 

“Giant Eagle to close 61 of its 100 in-store child care centers” by Teresa Lindeman at Pittsburgh Post Gazette. “The gradual decline in customer usage was a factor in this more regionalized strategy,” said Dick Roberts, a spokesman for Giant Eagle. The activity centers give parents of children ages 3 to 9 a place to hang out for as long as two hours while families are shopping in the store. The first Eagle’s Nest opened 21 years ago, Mr. Roberts said.” Read more

 

“Alipay to U.S. Retailers: Let Us Be Your One-Stop Shop for Selling Into China” by Jason Del Rey at Recode. “The move underscores the increasing appetite among Chinese shoppers for Western clothing and beauty brands, and the race to profit off of that interest by Chinese internet companies and U.S. retailers alike. If Alipay is successful, it could also develop into a competitor to companies such as Borderfree that help U.S. companies sells goods overseas.” Read more

 

“World’s 2nd-Biggest Retailer Faces ‘Operational Paralysis’ As Execs Have Laptops Confiscated” by Jim Edwards at Business Insider. “We believe the investigation requires all commercial department personnel to hand over communication systems (laptops) to be interrogated and all supplier meetings to be postponed.” Read more

 

“Kroger nabs P&G ecommerce exec for new senior role” by Alexander Coolidge at Cincinnati.com. “The Cincinnati-based supermarket chain tapped Alex Tosolini, currently a senior vice president of global ecommerce at P&G, to become Kroger’s first-ever senior vice president of new business development, effective Nov. 3.” Read more

 

“Wal-Mart to offer digital movie access to customers” at Reuters. “About 800 movies available at Walmart stores and 1,100 on walmart.com will be a part of the program at the launch, the company said.” Read more

 

“Nordstrom seeking space for a second Manhattan store, brokers say” by David M. Levitt at Seattle Times. “Executives of the department store chain have approached landlords of South Street Seaport and 1 Wall St. “and maybe one or two others,” Richard Hodos, an executive vice president at CBRE, said today at a briefing for reporters on New York’s commercial real estate market.” Read more

 

“Wal-Mart building giant ecommerce center near Atlanta airport” by Douglas Sams at Atlanta Bus. Chronicle. “The project, known in real estate development circles for weeks, is expected to be announced by Gov. Nathan Deal’s office as early as (today).” Read more

 

“Retail jobs are often perceived as lousy jobs. The industry is fighting to change that.” by Sarah Halzack at Washington Post. “During a campaign it has dubbed Retail Jobs Week, NRF is set to release research that it says will demonstrate the impact of the industry’s jobs on state and regional economies. It will release a study from the University of Georgia on Wednesday that found that retail wages are “highly competitive” with those in other sectors.” Read more

 

“Amazon jumps out to lead in Canada’s online shopping wars” by Jamie Sturgeon at Global News. “Amazon.ca, the Canadian arm the U.S. online retail behemoth, is attracting roughly five million Canadian shoppers to its website a month, a new report on Tuesday said. That’s a sharp increase in the last year that’s helped double the amount of e-commerce business Amazon is winning in Canada.” Read more

 

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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 unique because it’s timely, smart and fun. It’s created early AM every weekday and delivered between 7-8 am CST. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s really happening in the world of retail.

Tuesday Tipsheet: Marvin Ellison Congrats | Costco in China | Dick’s Adding 4

 

Home Depot’s Marvin Ellison Leaves for J.C. Penney:

 

“I couldn’t pass it up” by Maria Halkias at Dallas Star. “Ellison, 49, will start Nov. 1 but doesn’t become CEO until August. At that point, Ullman, 68, will stay on as executive chairman for a full year. In an interview Monday, Ellison called Penney an iconic brand and said he grew up shopping at the chain. “I couldn’t pass it up,” he said of the Penney job. “I have a lot of respect for what Mike has been able to do the last 18 months, and it shows the resiliency of the employees.” Read more

 

“The last 18 months have proven that turning (J.C. Penney) upside down and shaking it a couple of different ways was not necessary” by Suzanne Kapner, Shelly Banjo & Joann S. Lublin at WSJ. “Bonnie Hill, Home Depot’s lead independent director until this spring, said Mr. Ellison simplified the marching orders given to stores…Ms. Hill said Mr. Ellison will look for answers by spending time getting to know Penney executives and the company’s culture. “Marvin’s not a person who will go in there and say, ‘I know what’s best,’ ” she said.  Read more (Subscription)

 

“Dick’s Sporting Goods adding four stores Oct. 24” by Patty Tascarella at Pittsburgh Bus. Times. “The three-day celebrations all begin Oct. 24 and span Orlando, Fla.; Nampa, Idaho; Richmond, Ky.; and Roseville, Mich. This will bring the Pittsburgh-based retailer to 593 namesake stores across the United States.” Read more

 

“Google Express set to launch deliveries in Boston area today” by Dan Adams at Boston Globe. “Google Express will be available in parts of Boston, Brookline, Cambridge, Chelsea, Somerville, Arlington, Everett, Malden, and Medford. So far, eight companies have partnered with Google: Babies R Us, Barnes & Noble, Costco, Guitar Center, L’Occitane, Staples, Stop & Shop, and Walgreens.” Read more

 

“Google’s shopping service charges membership fees” by Wendy Lee at SF Gate. “Now renamed Google Express, the service will require a $95 annual or $10 monthly membership fee, which will give members same-day or overnight delivery on orders $15 or more and priority on the order’s delivery time, the company said in a blog posted Monday night.” Read more

 

“With help from Alibaba, Costco comes to China – but only online” by Stephen Millward at Tech in Asia. “US retailer Costco is entering China today for the first time. But the membership-only warehouse store is not opening any physical shops in the country. Instead it’s partnering with Alibaba’s Tmall marketplace to open a storefront for shoppers in mainland China.” Read more

 

***A message from Relax Sacks – Get Ready For the Most Comfortable Chair on the Planet! Consumers love the comfort of our ‘big and fun’ bean bag chairs (up to 7.5 feet in size!).  Incredibly soft micro-suede covers and uniquely comfortable shredded foam filling make the Relax Sacks experience one your customers won’t want to miss!  Great for living rooms, basements, kids rooms, dorm rooms, etc. Bring some fun and excitement to your stores and drive impulse sales in the process. www.relaxsacks.com.  Email info@shiftmarketinggroup.net for more information

 

“Delhaize America Names Michael Laurenti as Chief Information Officer” “Laurenti has more than 20 years of retail leadership in Information Technology. Prior to Belk, he worked at Family Dollar Stores, Linens ‘N Things and Toys “R” Us.” Read more

 

“Major supermarket chains changed how they label meat, surprising customers and USDA” by Roberto A. Ferdman at Washington Post. “…What transpired at Giant and its sibling companies reflects what food safety experts say is a growing concern about food and supplement manufacturers misusing labels. The experts say that labels are supposed to allow customers to make more informed decisions, often granting a distinction of quality or making claims about health and safety, but they have instead turned into advertising vehicles.” Read more

 

“Kroger settles chicken labeling lawsuit, will remove “humanely raised” claim” by P.J. Huffstutter at Reuters via Chicago Tribune. “The “Simple Truth” chicken products were packaged with labeling that stated the animals were “raised in a humane environment” and “cage free,” according to the lawsuit. However, standard industry practice for broiler chickens is to house them inside large buildings, not cages, according to industry experts.” Read more

 

“Walmart & other Retailers Pin Hopes on Holidays After Sluggish Summer Sales” by Natalie Zmuda & Jack Neff at Ad Age. “We’re seeing this tendency for the consumer every holiday to shop a little later,” said Matt Kistler, senior VP-global consumer insights and analytics at Walmart…”The No. 1 gift card people want to get is from Walmart, because of all you can buy,” Mr. (Stephen) Quinn said, but it “is also the card that they’re most nervous about giving to someone. So what we need to do is actually lower people’s ‘guilt level.” Read more

 

“Amazon adding 1,000 jobs in Britain” by Ben Miller at Puget Sound Bus. Journal. “Amazon is adding the jobs to the existing 6,000 distribution center jobs in the country.” Read more

 

“Kroger director sells millions in stock” by Steve Watkins at Cincinnati Bus. Courier. “Reuben Anderson exercised options last month to buy 47,100 shares for a little more than $21 each…He sold those shares the same day for more than double the exercise price. Kroger’s stock was trading at $52.12 when he sold it, meaning he brought in a gain of more than $1.4 million.” Read more

 

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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 unique because it’s timely, smart and fun. It’s created early AM every weekday and delivered between 7-8 am CST. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s really happening in the world of retail.

Monday Tipsheet: CityTarget Goes Big | Costco Wine Buyer Iview | H.Depot Asia Mtg

 

“Target tries new, bigger strategy for Boston store” by Taryn Luna at Boston Globe. “Target is coming to the Fenway area next year with its own urban-concept store called “CityTarget,” the retailer’s first on the East Coast. But this location will actually be bigger…The CityTarget that will occupy four floors in a building under construction at the intersection of Boylston and Kilmarnock streets won’t just be bigger than the company’s other urban stores. It will be even bigger than an average full-size Target store (and) will cover a whopping 160,000 square feet.” Read more / See the location pictures

 

“Costco’s Annette Alvarez-Peters Talks Wine” by Bill Swindell at the Press Democrat. “We have 11 buyers on the alcohol beverage team. Each is responsible for wine, beer and spirits for their region. Each region consists of two to 13 states with up to 60 stores. Each buyer deals with the necessary paperwork, PowerPoints and supplier/distributor meetings to run their business, in addition to getting into Wine Country and wine shows or tastings when time permits.” Read the interview

 

“Retail prices taking a dip for the holiday season (Can ‘Frozen’ save Christmas?)” by Catherine Curan at NY Post. “Promotions are going to be larger and deeper, and affect retailers’ bottom line,” said Robin Lewis, CEO of The Robin Report, who expects flat holiday sales compared to 2013. “People just don’t have [the money].” The National Retail Federation, by contrast, expects sales to rise 4 percent.” Read more

 

“Highlights from Home Depot’s Asia Investor meeting presentation” by Clark Schultz at Seeking Alpha. “Home Depot expects to gain more efficiency from supply chain changes and forecasting improvements. FY14 guidance is reiterated: Sales growth ~4.8%; Comp store growth ~4.6%, EPS $4.54; store openings +6.” Read more  See the PowerPoint

 

“Macy’s Tries on Silicon Valley’s ‘Fail Fast’ Approach” by Clint Boulton at WSJ. “Some of this stuff isn’t going to stick and that’s okay,” Macy’s Chief Omnichannel Officer RB Harrison tells CIO Journal. Mr. Harrison worked with Macy’s CIO Larry Lewark to develop the strategy, which also includes the integration of decades-old legacy software, including point-of-sale systems, with software for processing mobile payments, beacon technology and RFID sensors.” Read more (Subscription)

 

“Will the plunge in gas prices boost holiday retail?” by Uptin Saiidi at CNBC. “A new report by Deloitte suggests lower gas prices could free up $260 per household this year in the United States. The potential savings is dramatic enough that May Epner, principal of Mary Epner Retail Analysis, predicts there will be benefactors as a result of falling gas prices. “A drop in gas prices should be great for Ross Stores, Walmart, and dollar stores.” Read more

 

“Target Continues Liquor Roll Out in MN” by Sam Black at Minn./St.Paul Bus. Journal. “Oh my god, that’s scary. It might affect me pretty hard,” said Tim, a Vintage Wine & Spiritz employee who declined to give his last name when he learned of the news Friday.” Read more

 

“Kmart is latest retailer hit by data theft” at SF Gate. “Sears Holdings says that Kmart’s information technology department detected on Thursday that its payment data systems had been breached. But it couldn’t provide the number of affected cards. However, it said that it was able to remove the malware. “ Read more

 

“Retailers’ Lines Blur on Outlet Stores” by Suzanne Kapner at WSJ. “Desperate for growth at a time when outlet stores are a rare bright spot for shopper traffic, chains are taking the once unthinkable step of putting outlets near their mainline stores in cities and suburban malls and even putting full-price stores in outlet malls.” Read more (Subscription)

 

“Retail imports expected to surge ahead of holiday push” at The City Wire. “Import volume at U.S. ports covered by Hackett & Associates’ Global Port Tracker report is expected to total 1.53 million containers this month, topping the 1.52 million monthly record set in August. Cargo volume has been well above average each month since spring as retailers have imported merchandise early in case of any disruption on the docks.” Read more

 

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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 unique because it’s timely, smart and fun. It’s created early AM every weekday and delivered between 7-8 am CST. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s really happening in the world of retail.

 

Friday Tipsheet: F.Dol. Downer | Wgreen CTO | Macy’s Memo | Dick’s Letter

 

“Family Dollar net income plummets 66% in Q4” by Jennifer Thomas at Charlotte Bus. Journal. “From a financial standpoint, fiscal 2014 was one of the most difficult years in our company’s history,” Family Dollar Chairman and CEO Howard Levine said during a conference call on the retailer’s earnings late Thursday afternoon.” Read more

 

“Family Dollar Q4 Comp Sales +.3%” “Total net sales for the fourth quarter ended August 30, 2014, increased 4.5% to $2.61 billion from $2.50 billion in the fourth quarter of fiscal 2013 ended August 31, 2013.” Read the release

 

“Step inside Tractor Supply Co.’s new Brentwood, TN headquarters (Tractor in the lobby!)” by Nathan Morgan at Nashville Bus. Journal. See the 35 pics

 

“Retailers Seek Port Labor Accord to Avoid Holiday Delays” by Rob Golum at Bloomberg. “The failure to reach an agreement is now having a significant impact on port operations and contributing to port congestion in significant and damaging ways,” the federation said yesterday in a letter. “We are deeply troubled by the fact that no apparent progress has been made in the negotiations since August.” Read more

 

“Forbes Sits Down with Walgreens CTO Abhi Dhar” by Ben Kepes. “Fully 48% of digital visitors claim that their next action after the digital visit is to go into a Walgreen store – when you look at the sort of services that Walgreen digital offers – repeat orders of pharmacy items or printing images from digital photo services for example, this makes sense. To give some idea of scale, that 48% means that 5.3 million store visits each week are actually driven by digital.” Read more

 

“Canadian Tire plans its new digital strategy” by Marina Strauss at Globe & Mail. “I believe we are making strides, but our current online presence is disappointing and not up to our standards yet,” (Michael Medline) said at an investor conference to outline the company’s three-year “on offence” growth plan. “In fact, it reflects poorly on our brands.” Read more

 

…“Unlike some big-box retailers, we did not overgrow our stores” by Hollie Shaw at Financial Post. “Canadian Tire will spend an average of $575-million a year on digital technology and store upgrades from 2015 to 2017. “You have to be good at both, and they augment each other.” Read more

 

“Jeff Bezos Realizes A Dream With Amazon Storefront But The Purpose Remains Unclear” by Ryan Mac at Forbes. “While the Journal’s report suggested that the new store at 7 West 34th Street could deal with same-day delivery, pickups, returns and even serve as a potential showroom for Amazon’s new gadgets, Forrester analyst Sucharita Mulpuru couldn’t see the exact purpose.” Read more

 

….Drone Docking Station? by Dan Primack at Forbes. “I admittedly have no idea if Amazon has roof access as part of this lease, but let’s imagine that it does. And let’s also imagine that all of the regulatory and technological logistics are somehow overcome. If so, Amazon would have a drone hub right across the street from a building that originally was designed to serve as a docking station for dirigibles and related airships. You know, the Empire State Building.” Read more

 

…Glorified ‘Post Office’ ? at Fortune. “Sucharita Mulpuru, an e-commerce analyst at Forrester Research, tells the Fortune the space sounds “closer to a post-office” than a retail store and that it remains to be seen what economic boost the location will provide to the company.” Read more

 

“What Retailer Can Open the Earliest on Thanksgiving?” by Alexander Coolidge at Cincinnati.com. “Media reports say executives have emailed (Macy’s) employees telling them stores will open on 6 p.m. Macy’s officials declined to comment on their holiday hours on Thursday. WPXI in Pittsburgh obtained a copy of a Macy’s email that claimed it was making the decision due to “competitive pressure” to open early.The purpose of the email was to sound out workers willing to staff stores on the holiday.” Read more

 

“12-Year-Old Girl Writes A Passionate Letter To Dick’s Sporting Goods For Not Including Women In Its Catalog” by William Scott Davis at Business Insider. “Chris Peterson, a reporter for AZCentral Sports and NBC12, tweeted a picture of a letter his daughter wrote to Dick’s Sporting Goods. McKenna was upset that Dick’s didn’t include any pictures of women in its “Basketball 2014 catalog.” Read the letter

 

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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 unique because it’s timely, smart and fun. It’s created early AM every weekday and delivered between 7-8 am CST. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s really happening in the world of retail.

Thursday Tipsheet: Wmart Realigns | Costco Call Highlights | Target’s Ramsey Downplays Apple Pay

 

“Wal-Mart realigns small-store format management, adjusting ‘on the fly’” by Kim Souza at The City Wire. “(Mike Moore) said the team is lean with five senior vice presidents that report to him with specific duties. The team, which had its first meeting this week, are: Larry Mahoney – logistics; Marc Lieberman – vice president of small formats; Brian Hooper – real estate; David Norman – operations over the West; and Glenda Fleming – operations over the East…Moore said this week he received at least 24 requests from suppliers for meetings about Wal-Mart’s small formats. He assured the crowd it’s not that different but there is a small team of veteran managers looking out for Neighborhood Markets that in that past hierarchy system sometimes got overshadowed or overlooked because the supercenters make the most money.” Read more

 

“Target’s new CEO makes Canadian turnaround his priority” by Marina Strauss at Globe & Mail. “Brian Cornell said in an interview on Wednesday he will travel to Canada from Target’s head office in Minneapolis on a “regular” basis to oversee the turnaround efforts. He has “put on pause” the company’s earlier plan to appoint a non-executive chairperson with domestic experience to oversee the troubled Canadian operations.” Read more

 

“Target Corp CEO says every Canadian store ‘has to improve’ as bare shelves continue to plague retailer” by Hollie Shaw at Financial Post. “Inventory lapses were evident in a mid-town Toronto Target store on Wednesday. While some racks were fully stocked with neatly folded clothing, there were gaping shelf holes in the home storage, décor and shoe departments.” Read more / See the pics

 

“How the Weather Channel Persuaded Walmart to Hand Over Their Sales Data” by Clair Suddath at Bloomberg. “The company persuaded advertisers such as Wal-Mart Stores to hand over their sales data for every product they sold, in every store, in every aisle, all over the country. “I mean that literally,” says Vikram Somaya, general manager of WeatherFX. “We said, ‘Give us your data.’ Traditionally, that’s not been met with a whole lot of resounding cheer, right?” But the stores did it.” Read more

 

“Target’s Bill Ramsey downplays the potential of Apple Pay” by Abby Callard at Internet Retailer. “For consumers, the payment experience can be fraught with emotion, he said: “Emotions create less than logical behavior.” Anxiety is one emotion the Target team talks about a lot, he said. Consumers work hard for their money and deciding what to spend it on and how much to spend can bring up anxiety. If all the new technology does is mimic a current payment method—such as using a cell phone app that keeps a credit and debit card on file—it’s not really an improvement, Ramsey said.” Read more

 

***A message from Relax Sacks – Get Ready For the Most Comfortable Chair on the Planet! Consumers love the comfort of our ‘big and fun’ bean bag chairs (up to 7.5 feet in size!).  Incredibly soft micro-suede covers and uniquely comfortable shredded foam filling make the Relax Sacks experience one your customers won’t want to miss!  Great for living rooms, basements, kids rooms, dorm rooms, etc. Bring some fun and excitement to your stores and drive impulse sales in the process. www.relaxsacks.com.  Email info@shiftmarketinggroup.net for more information

 

“Sam’s Club’s Racquel Harris & Walmart’s Sharon Orlopp Discuss Leadership” by Jamie Smith at The City Wire. “Harris worked at Kraft Foods before her role at Sam’s Club where she had the opportunity to learn from other female leaders about how to break down barriers and demonstrate empathy.  For Orlopp, the answer was the “power of storytelling” and the ability to connect to people at all levels.” Read more

 

“Aldi unveils $700m assault on Western Australia and South Australia” by Sue Mitchell at Sydney Morning Herald. “Retailer Aldi has outlined plans to invest another $700 million building two distribution centres and as many as 130 stores in Western Australia and South Australia.” Read more

 

“J.C.Penney Turnaround Plan Fails to Excite” by Maria Halkias at Dallas News. “Investor confidence in J.C. Penney’s turnaround slumped Wednesday as the retailer put the kibosh on the idea that store closings are necessary…Penney’s stock fell $1, or 11 percent, to close at $8.19.” Read more

 

“Help wanted – Publix is looking for a crisis PR agency — just in case it gets hacked” by Sarah Halzack at The Washington Post. “The company is seeking a consultant who could potentially help with all forms of communications about a breach, including communication with customers, employees, credit card companies and banks. Brous said Publix is being proactive about lining up these services because “it takes time to build a relationship with a PR firm.” By preemptively refining a plan of action, Publix hopes to be better equipped to weather a breach if one occurs.” Read more

 

Happening Today: Q4 2014 Family Dollar Earnings Conference Call @ 5:00 PM EST  Webcast

 

Supreme Court: “Arguments Go Poorly For Amazon Workers Seeking Pay For Search Time” by Daniel Fisher at Forbes. “I’m in the situation probably I’d say go with the Labor Department,” Breyer said. “They are the ones who are in charge of this. And they are saying you lose.” Read more

 

“Wind Could be the End of Delivery Drones” by Lauren Walker at Newsweek. “Drones have become synonymous with modern life…But as their use in delivery services verges on becoming a reality, drones are running into a big problem: wind…Of the 10 missions to Juist so far, two were postponed. What can this 20 percent cancellation rate due to wind mean for widespread use of delivery drones?” Read more

 

“8 Apps That Save You Money On Your Groceries (No Savings Catcher?)” by Sarah Perez at Techcrunch.  See the list

 

“Patient criminal hides on Family Dollar shelf for nearly two hours” by Drew Karedes at KHOU 11 – Houston. “I’d say that was a pretty big sacrifice on his part,” said Sgt. Haney. After the employees left the store around 11 p.m. on Tuesday night, the man on the shelf made his move. Police say he probably wasn’t expecting that the security alarm would immediately go off. It was activated by a motion sensor. The criminal is seen on video exiting out the back door empty handed.” See the video / Read more

 

Heard on the Costco Q4 Earnings Call

(E-com sales $3 Bil, Living Social promotion, 35 new stores/year, Relo NJ store in 2 weeks…)

 

Richard Galanti – CFO 

 

For all of fiscal ‘14 we opened 30 new locations, 17 new in the U.S., three each in Canada, Australia, two each in Japan and Korea, and one each in the U.K., Mexico and Spain, that being our first unit opening in Spain.

 

We ended fiscal ‘14 with 663 locations operating worldwide.

 

For the current fiscal year fiscal ’15, our plans are to open 31 new warehouses and also relocate four existing locations, 19 of the planned 31 new locations will be in the United States, with remaining in international markets.

 

During the first four months of fiscal 2015 basically September through this coming calendar year-end, we planned to open eight of our fiscal ‘15 locations, six in the U.S. and one each in Australia and Mexico, as well we will complete one warehouse relo in Wayne, New Jersey. This will occur in two weeks from tomorrow on the 23rd.

 

Most U.S. regions were in the 4% to 5% comp sales range with Midwest and Southeast being even stronger.

 

Both food and sundries and hardlines comps were both in the mid-single digits range.

 

Both softlines and fresh foods comps were in the high-single digits range for the fourth quarter.

 

Japan and Australia being impacted by cannibalization were the weakest performers, while Canada and Taiwan were the strongest in terms of comp sales increases.

 

In terms of membership, we continue to enjoy strong renewal rates…91% in the U.S. and Canada, and little over 87% worldwide.

 

In early September…for eight days, we ran a nationwide membership promotion for new members on Living Social with the purchase of a full price $55 membership. The new member received a $20 Costco Cash card, coupons for three free items.

 

In terms of Costco online, we’re currently operated in four countries, U.S., Canada, U.K. and Mexico. We’d expect to be in at least one, probably two additional countries by the end of calendar ‘15…This one worked well and we’ll keep you posted.

 

For the fiscal year, total e-commerce sales came in just under $3 billion.

 

Sales in e-commerce were up in the high teens for both the fourth quarter and the fiscal year and comp sales in e-commerce were up in the 18% to 19% range for both the fourth quarter and the fiscal year.

 

Cabo San Lucas Mexico: We plan to be back up and operating by early November.

 

Midwest: Certainly it’s a newer region relatively speaking. We are getting — we seem to have I think hitting our sweet spots in some of those cities.

 

On opening a store in France: If I was a betting person, absolutely in the few years but not in the next year, year and half.

 

On long term store goals: I think we like to get up to 35 a year in the next five years, maybe a little more.

 

In the greater LA where we’ve got 40 or 50 units, many, many units, we feel that over the next 10 years we could open another 10 or 15, but they are all very pinpointed locations based on where other locations, other Costco locations are.

 

The list of price increases is not a big list around here.

 

(E-commerce is) 3% piece of our business. The good news, it’s growing and it is more profitable. E-commerce is definitely quite a bit more profitable than the rest of the company.

 

Read the full transcript (via Seeking Alpha)

 

 

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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 unique because it’s timely, smart and fun. It’s created early AM every weekday and delivered between 7-8 am CST. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s really happening in the world of retail.

 

Wednesday Tipsheet: Costco Q4 Comp +6% | FTC/F.Dol. on Friday | N.Marcus’ Fantasy Gifts

 

“Costco Q4 Comp Sales Jump 6%” “Net sales for the fourth quarter were $34.75 billion, an increase of nine percent from $31.77 billion in fiscal 2013. Net sales for the fiscal year were $110.21 billion, an increase of seven percent from $102.87 billion last year.” Read the release

 

“Costco Beats Street – Q4 Profits Rise 13%” by Michael Calia at WSJ. “For the fourth quarter ended Aug. 31, the company’s profit rose to $697 million, or $1.58 a share, from year-earlier earnings of $617 million, or $1.40 a share. Total revenue improved 9% to $35.52 billion. Analysts expected a profit of $1.52 a share and revenue of $35.47 billion. Costco’s revenue from membership fees increased 7% to $768 million.” Read more (Subscription)

 

October 15th: Wal-Mart to Webcast 21st Annual Meeting for the Investment Community “The video webcast will include presentations and question and answer sessions on all three operating segments — Walmart U.S., Walmart International and Sam’s Club — as well as Global eCommerce. President and CEO Doug McMillon will provide an overview of the company’s strategies for next fiscal year.” Read the release

 

“Walmart Canada has hiked the price of its groceries, BMO report finds” by Hollie Shaw at Financial Post. “Based on our surveys, [it] had not been passing through the cost of wholesale grocery inflation to its customers until the last few months, while other grocers had started to slowly do so since the beginning of 2014.” Read more

 

“Dollar General: FTC decision on Family Dollar expected Friday” by Jennifer Thomas at Charlotte Bus. Journal. “The FTC’s 30-day review window closes on Friday. Dollar General declined to offer further comment on Wednesday afternoon. Analysts say the FTC has two likely options. It can seek additional information about a Dollar General-Family Dollar merger, or it could reject the deal outright.” Read more

 

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“Retail giants Walmart, Sears and Lowe’s are suffering in Canada” by Hollie Shaw at Financial Post. “Walmart, for example, increased its square footage in Canada by 10.6% in fiscal 2013 and another 2.6% in fiscal 2014, and will add 1.5% in the current fiscal year, but “the huge infusion of capital has not yielded the returns to which Walmart is accustomed,” the analyst noted.” Read more

 

“Family Dollar approves $550K in retention payments for top execs” by Jennifer Thomas at Charlotte Bus. Journal. “(Family Dollar) will pay a combined $550,000 if they maintain employment through Dec. 1, 2015. Chief Financial Officer Mary Winston and Executive Vice President Barry Sullivan each will receive $200,000. James Snyder, senior vice president, general counsel and secretary, will receive $150,000.” Read more

 

“30,000 Lose Health Care Coverage at Walmart” by Hiroko Tabuchi at NY Times. “In scaling back coverage for part-time employees, Walmart joins retailers including Home Depot, Target and Trader Joe’s, which have dropped benefits in response to the Affordable Care Act.” Read more

 

…Expands Mayo Clinic access by Kim Souza at The City Wire. “Wal-Mart workers who are allowed to keep their insurance coverage will be able to obtain care at the Mayo Clinic Cancer Center locations in Rochester, Minn., Jacksonville, Fla., or Phoenix, Ariz., if they should be diagnosed with breast, lung or colorectal cancer.” Read more

 

“Neiman Marcus’ wild fantasy gifts this Christmas include $475K perfume, $300K toy race track” by Sarah Blaskovich at Dallas News. “It’s that wide range of pricing that makes the Christmas Book so alluring, even for those who may never purchase a single item. It’s also helped the Dallas brand become nationally and internationally known. “People have said, ‘That’s the store where I can get a $25 lipstick or buy a camel!'” says Ginger Reeder, VP of Corporate Communications for Neiman Marcus.” Read more

 

“Pepsi launches ‘craft’ soda at Costco” by Candice Choi at AP via My Fox NY. “Pepsi is hoping to keep up with the times with a soda called “Caleb’s Kola” that comes in glass bottles reminiscent of a bygone era…According to its website, the drink is only being sold at select Costco locations in Maryland, New York, Virginia and Washington, D.C.” Read more

 

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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 unique because it’s timely, smart and fun. It’s created early AM every weekday and delivered between 7-8 am CST. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s really happening in the world of retail.

Tuesday Tipsheet: ‘Curbside’ Pickup at Target | iPAD #1 Brand w/Kids | 8-11% Holiday Online Growth

 

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“Target launches two new apps, updates others” by Kavita Kumar at Star-Tribune. “The changes include revamped iPhone and iPad apps that have been rebuilt from top to bottom..In total, Target is updating or launching eight new products. “Virtually all of our mobile experiences will be entirely new,” said Jason Goldberger, senior vice president of Target.com and mobile…Target has been criticized for being a bit behind the digital curve with a website that sometimes has hiccups and being slower to roll out new initiatives such as buy online, pick up in store capabilities than some of its biggest competitors.” Read more

 

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…Adding more information to Sam’s Club bar codes by Stephanie Strom at NY Times. “To reduce food waste, Walmart says it has begun developing more ways to use a “whole crop” in its private-label food production and to reduce spoilage. It is also adding more information to bar codes in its Sam’s Club stores. “We want to reduce the confusion that’s out there about what consumers should be eating in terms of their own health and what they should be buying in terms of what’s good for the planet,” Ms. McLaughlin said.” Read more

 

“The iron grip of Wayfair’s founders” by Steven Syre at Boston Globe. “But here’s where the story of Wayfair and its founders really becomes something rare: They’ve managed to retain absolute control over a venture now valued at more than $3 billion. Founders of tech businesses usually see their ownership diluted over time by venture capital firms and public stockholders who provide the money necessary to build a big company.” Read more

 

“The Container Store Shares Tumble To Record Low As Same Store Sales Slide” by Samantha Sharf at Forbes. “Same store sales, however, were down 0.4%. At same time that current stores are undergoing a slowdown the company is touting new stores. In a statement CEO Kip Tindell ignored the same store sales decline but said, “We are very excited about our new store growth, with three more openings ahead of us this year.” Read more

 

JC Penney to Close 62+ Stores? by Krystina Gustafson at CNBC. “Sozzi said he predicts Penney’s will use the event to announce “mass store closures,” which would ultimately bring its store count from 1,062 as of August, to under 1,000. But with sales and earnings moving in the right direction, he said, the closings won’t be seen as a sign of weakness.” Read more

 

“Amazon Expands Seller Holiday Deals Program Worldwide” “The seller holiday deals program, introduced for the first time last year, is now expanding to be available worldwide on local Amazon sites in the U.S., the EU, China, Japan, India and Canada.” 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 unique because it’s timely, smart and fun. It’s created early AM every weekday and delivered between 7-8 am CST. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s really happening in the world of retail.