Friday Tipsheet: Menear Congrats | Hollywood Stops Target | D.Tree +4.5%

/in

 

“Home Depot Names Retail Chief Craig Menear As CEO” by Shelly Banjo at WSJ.  “Mr. Menear, who will take the helm Nov. 1, will become the third CEO to run the country’s fourth-largest retailer by revenue…The CEO appointment settles the top job but raises questions about how long Mr. Ellison and Ms. Tome, both well-regarded executives who were also considered possible successors to Mr. Blake, will remain with the company.” Read more

 

“Costco’s Galanti: Minimum wage hike probably won’t mean price hike” by Rachel Lerman at Puget Sound Bus. Journal. “Whenever there’s any type of cost increase, whatever it is…ultimately the last thing that we’re going to do is raise prices,” he said. “Ultimately if some of it has to be borne in pricing, we do. We want to be the last to raise a price based on a cost increase and the first to lower it based on a cost decrease.” Read more

 

“Why Nobody Calls Target ‘Tarjhay’ Anymore” by Brad Tuttle at Time. “When Target was the media and shopper darling nicknamed “Tarjhay” for its chic fashions and dependable household staples, the perception was that it truly delivered on its slogan “Expect more, pay less.” Target’s big problem is that the motto has rung hollow for quite some time. “The dimension of ‘expect more’ is gone,” said Amy Koo, a senior analyst at Kantar Retail. “As for ‘pay less,” well, pay less than what? Folks are savvier today.” Read more

 

“Judge orders Target to stop building Hollywood shopping center” by David Zahniser at LA Times. “Target, said Silverstein, proceeded at its own risk after receiving ample warnings about a legal challenge. “Nobody that I represent ever opposed a Target store,” Silverstein said. “What they opposed was blowing the lid off the height and the parking and the other structural requirements that are supposed to … guide development for the future of Hollywood.” Read more

 

“Dollar Tree Q2 Comp Sales +4.5%” “Consolidated net sales increased 9.5% to $2.03 billion from $1.85 billion in the prior year’s second quarter.” Read the release

 

“Dollar Tree ‘committed’ to Family Dollar deal” by Jennifer Thomas at Charlotte Bus. Journal. “During Dollar Tree’s earnings call, Sasser said his company will continue to watch the new developments closely. “We look forward to completing our transaction as soon as possible,” he says.” Read more

 

“Family Dollar rejects Dollar General’s bid” by Eric Snyder at Nashville Bus. Journal. “In its statement Thursday, the Family Dollar board said Dreiling’s letter did nothing to assuage their concerns about antitrust regulations. In its offer to buy Family Dollar, Dollar General had said it was prepared to sell 700 stores to ease potential regulatory concerns.” Read more

 

“Mexico Bans Commercials for Sugary Products During Children’s Programs” by Amy Guthrie at WSJ. “We’re pioneers in Mexico when it comes to restrictions on publicity,” said Álvaro Pérez, a commissioner at Mexican health protection agency Cofepris who helped establish the advertising parameters. “What we’re looking for is an incentive for companies to reformulate their products so that they’re healthier.” Read more

 

“Hibbett Sports Q2 Comp +.1%” “We are on pace to achieve our goal of 75 to 80 new stores this year, and continue to be pleased with new store performance.” Read the release 

 

“Fresh Market Q2 Comp +2.9%” “Management’s outlook for fiscal 2014 – Unit growth of 22 new stores, with 6 new stores opening in the third quarter and 5 new stores opening in the fourth quarter and remodeling 4 to 5 stores.” Read the release

 

“No Knockoff Here. Meet China’s New Gadgets” by Paul Mozur at WSJ. “In laboratories and startups across China, tinkerers with big dreams are pushing what many in the industry see as a potential new wave of Chinese innovation. They see smart gadgets—wearables and other devices that connect to the Internet or interact with users—as an opportunity to create a Chinese-designed product for a global audience.” Read more

 

“5 P&G execs best positioned to become CEO” by Alexander Coolidge at Cincinnati.com. “As P&G starts a new fiscal year, here’s how the executive race looks for the five frontrunners. Our assessment is based on the track records that made the five executives serious contenders in the first place, and their latest results when the boss was watching closest…” Read more

 

“Man Drives Stolen Walmart Shopping Cart to Meet Probation Officer” at Washington Free Beacon. “Eighteen year old Michael Rene Johnson stole an electric shopping cart and rode it to the Metropolitan Court in Albuquerque where he was due to meet his parole officer. His probation officer asked him where he had obtained his unusual ride, and Johnson admitted that he had stolen it from Walmart.” See the video / Read more

 

***

About Eye-on-Retail

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 bright and early every morning and delivered between 7-8 am CT. 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. Contact us at info@shiftmarketinggroup.net.

 

Thursday Tipsheet: Target & Lowe’s Earnings Call Highlights | F.Dol. CEO Guarding Job?

/in

 

“Family Dollar CEO Said to Guard Job” by Shelly Banjo at WSJ.  “Dollar General said the chief executive of Family Dollar Stores, Howard Levine, shrugged off multiple requests to pursue a merger between the country’s two largest dollar chains out of fear he would have to step down as CEO, according to a letter sent to Family Dollar’s board of directors late Wednesday.” Read more

 

WSJ: “Shopper Malaise Hangs Over Target” by Paul Ziobro & Anna Prior. “Target posted a 62% drop in earnings for the fiscal second quarter ended Aug. 2, as losses in Canada continued and margins shrank because of heavy discounting. The price cuts didn’t entirely work. Target rang up 1.3% fewer transactions at U.S. stores open more than 13 months, its seventh straight quarter of falling traffic.” Read more

 

“Target sees signs of progress, but cuts outlook for year” by Kavita Kumar at Star-Tribune. “You see this sometimes when new CEOs come in: companies lower the bar,” said Brian Yarbrough, an analyst with Edward Jones. “It gives them a better opportunity to beat numbers and to gain Wall Street’s confidence.” Read more

 

“Home Depot’s CEO Will Never Make My ‘Worst’ List” by Herb Greenberg at Real Money via Dallas News.  “I mentioned to Blake that I was impressed as I shopped his stores throughout Southern California, the Chicago area and Connecticut…He: “You’ve only been in the ones that worked.” Me: “Ones that worked?” He: Yep. It’s up to the store manager, and we usually promote an assistant manager to store manager, and they don’t always have what it takes. But you don’t know that until they get the job.” That floored me, because rather than just acting like it was a big success, he was acknowledging how hit-and-miss it can be and how hard, in practice, it really is.” Read more

 

Australia: Meet Costco Mum at Herald-Sun. “The Canberra mum runs the “Costco Mum” Facebook page, which offers price and deal advice to the 8600 people who like her page…Mrs. Romano started the page to try to get discussion going about deals and experiences, and soon the page took off. “They’re all American brands so you don’t always know what you’re buying, so I thought it would be a good idea to have a page where I could do product reviews,” Mrs Romano 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.

 

“Sears Reports Q2 Net Loss of $573 Mil” “Sears Full-line stores experienced comparable store sales growth of 0.1% for the quarter as compared to a decline of 0.8% in the second quarter of last year.” Read the release

 

“Sacramento’s epic environmental battle – plastic bags” by Jessica Calefati at San Jose Mercury News. “Lobbyists have launched a frenzied eleventh-hour effort to kill a bill that would make California the first state to outlaw flimsy plastic grocery bags…”This bill is not about helping the environment,” Daniels said. “It’s a cash grab for grocers who will get to keep all the money they make when they start charging customers for so-called reusable bags.” Read more

 

“Home Depot launches “Smart Home” partnership in Canada” by Brian Platt at The Star.  “At a “Smart Open House” on Tuesday, Home Depot representatives demonstrated a line of products ranging from light switches, blinds, thermostats, security cameras and door locks that all interface with an app called Wink.” Read more

 

Target Q2 Earnings Call Highlights

Kathee Tesija

Q2 comparable sales (US) were strongest in hard lines driven by both toys and electronics… also positive in our less discretionary food, health and beauty categories, while they were down slightly in apparel and down low single-digit in home.

U.S. comparable transactions were down 1.3% completely offset by an increase in the average basket.

We are pleased that the U.S. traffic trend improved a full percentage point compared with the first quarter.

Second quarter digital sales increased more than 30% over last year…reflects a nearly 50% increase in visits to our mobile website.

TargetExpress: We plan to expand our test of this new format to several additional locations outside the Twin Cities next year.

Store pickup: About one-fifth of guests engaged in additional shopping in-store when they picked up their online purchases.

About 14% of our digital sales today are being picked up in-store.

Subscription orders account for more than 15% of digital sales.

We are exploring gifting subscriptions, which would allow guests to register for subscriptions that are easy for gift givers to fulfill.

This fall when we rollout standard ship from store capabilities to 35 additional markets, we will be within 1 to 2-day ground transit of 91% of the U.S. population.

Of the 70,000 items in a typical Canadian Target store, about 30,000 items will be new between now and the holiday season.

In Canada, on September 7, we will be launching two new lines of cleaning products, Better Life, an all-natural line of cleaning products designed by two fathers with charismatic packaging.

 

John Mulligan

We are working to moderate our promotional intensity to a level we believe is more appropriate in the long run.

In the U.S., second quarter sales penetration on REDcards was 28.8%, up more than two percentage points over last year.

REDcard penetration in Canada was 4.8% in the second quarter, more than double last year’s 2.3%

This quarter the Canadian comp was down more than 11%.

We are currently forecasting U.S. comparable sales will be flat to up 1% this quarter.

We are encouraged by the positive comps we have seen so far in August.

 

Brian Cornell

I am impressed with the progress that John and the team made in the last three months, including a strategy review that is the most comprehensive effort I have seen in my career.

I want to be a good student of the business, but clearly we have to have a sense of urgency here and a sense of pace.

 

Read the transcript

 

Lowe’s Q2 Earnings Call Highlights

Robert Niblock

Comparable sales were 4.4% with an increase in comp transactions of 3.1% and an increase in comp average ticket of 1.3%.

With regard to the rumors on Brazil, obviously we don’t comment on specific rumors of a nature like that.

Outdoor product sales were strong with a roughly 6.5% comp for the quarter while indoor comps were roughly 3%.

All 14 regions had positive comps for the quarter; likewise, all 12 product categories had positive comps.

Saw particular strength in lawn and garden during the quarter.

Strength in millwork, paint and tools and hardware which were all above the Company average.

Solid performance in line with the Company average in fashion fixtures, flooring and lumber and building materials.

ProServices business outperformed the Company average during the quarter.

Canada delivered double-digit comps in local currency for the fifth consecutive quarter.

We’ve got some key things we’re working on from a website standpoint to improve the functionality of our website that will be delivered in the next 12 months.

Appliances: obviously something that was a little bit of a challenge in the second quarter.

A couple of parts of flooring were a little weak in the quarter.

 

Rick Damron

Patio and outdoor products topped their solid first-quarter results generating double-digit positive comps.

Introduced Valspar Reserve exterior and interior paints at the end of the first quarter to appeal to both DIY and pro customers and our sales to both customers have exceeded our expectations.

www.lowesforpros.com is currently being tested with a select group of pro customers.

In Q2, our pro applications grew 23% over last year so we continue to see the pros respond very well to the initiatives that we’ve got in place.

Flexible fulfillment allows us the capability to ship from 54 of our stores as well as all of our distribution hubs and nodes direct to consumer.

Interior project specialist: We rolled it to another 582 stores. We are looking at our rollout campaign into 2016.

 

Bob Hull

Monthly comps were 4.7% in May, 4.6% in June and 3.7% in July.

 

Mike Jones

Flooring: we see very good performance in tile. We see very good performance in carpet. We see a little pressure in wood.

Pros: We expanded our lineup of Lenox and Irwin. Certainly our Bosch brand continues to do well, DeWalt does very well.

 

Read the transcript

 

***

About Eye-on-Retail

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 bright and early every morning and delivered between 7-8 am CT. 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. Contact us at info@shiftmarketinggroup.net.

 

 

 

Wednesday Tipsheet: Lowe’s Comp +4.4% | Wmart’s ‘Price First’ Launch | H.Depot Call Highlights

/in

 

“Lowe’s Q2 Comp Sales +4.4%” “Lowe’s reported net earnings of $1.04 billion for the quarter ended August 1, 2014, a 10.4 percent increase over the same period a year ago…Fiscal Year 2014 outlook:  total sales are expected to increase approximately 4.5 percent, comparable sales are expected to increase approximately 3.5 percent, expects to open approximately 10 home improvement and 5 hardware stores.” Read the release

 

CNBC’s Headline: “Lowe’s profit tops estimates; trims sales guidance” “Lowe’s delivered second-quarter earnings that topped Wall Street’s expectations, but the retailer trimmed its outlook for full-year sales growth. Lowe’s shares sank in premarket trading following the report.” Read more

 

Lowe’s Q2 Earnings Conference Call Today at 9am ET  Webcast

 

“Target’s new CEO will speak during earnings conference call Wednesday” by Nick Halter at Minn./St. Paul Bus. Journal. “CEOs typically lead earnings calls. A spokesman said Chief Financial Officer John Mulligan and Chief Merchandising and Supply Chain Officer Kathee Tesija will lead the call, but Cornell will also speak.” Read more

 

Target’s Q2 Earnings Conference Call Today at 9:30am CST  Webcast

 

“Walmart Launches ‘Price First’ Private Label Line Nationally” by Kim Souza at The City Wire. “Price First is a new opening price point product line that the retail giant has tested in selected markets since the fall of 2013. Products include pasta, peanut butter, baking mixes, mustard and other condiments totaling about 50 items including paper and other consumables. Wal-Mart is nationally debuting the new private-label product line in more than 2,500 stores over the next few months, according to Danit Marquardt, Wal-Mart corporate spokeswoman.” 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.

 

“Dick’s: PGA pros not needed to sell golf merchandise” by Tim Schooley at Pittsburgh Bus. Times.  “We’ve got very good people who are there who can still help people,” said (CEO Ed) Stack when asked about how the lack of golf pros in the store could impact sales. “We don’t think it’s going to have any impact on the business.” Read more

 

“Icahn slams Family Dollar for ignoring Dollar General” by G. Chambers Williams III at The Tennessean.  “Even as cynical as I am about the dysfunction of so many boards, I find it hard to believe that before agreeing to a $305 million breakup fee to Dollar Tree (which was obviously designed to chill other bidders), Family Dollar wouldn’t first be absolutely sure Dollar General wasn’t interested in bidding,” Icahn said in an online post. “Could the fact that Family Dollar’s CEO, Howard Levine, has a future role in a Dollar Tree/Family Dollar merger have anything to do with it?” Icahn asked.” Read more

 

“Icahn Suits Up for War with Family Dollar Management” by Charlie Gasparino at Fox Business.  “The activist investor described Levine as a child of privilege who either doesn’t understand or doesn’t care about the rights of shareholders. “Listen, his father started the company, and he thinks it’s his,” Icahn said in a telephone interview. “But it isn’t and he doesn’t know what he’s doing.” Read more

 

“Macy’s to pay $650,000 for racial profiling at flagship store in Manhattan” by Michael Virtanen at AP via SF Gate.  “The agreement cites Macy’s data from October 2012 through October 2013 showing employees apprehended and detained 1,947 individuals at the Herald Square store. Meanwhile, about 6,000 people were detained at stores statewide.” Read more

 

“GameStop CEO undergoes surgery for brain tumor” at Reuters via CNBC.  “Chief Executive Paul Raines underwent an unexpected surgery last week for a small cancerous brain tumor. Raines, who will be undergoing chemotherapy, will restrict his travel during the expected six week of treatment, the company said in a regulatory filing on Tuesday.” Read more

 

“Staples Q2 Comp Sales Fall 5.8%”  by Michael Calia at WSJ.  “Sales through Staples.com rose 8%…The company’s commercial operations in North America posted a 2.6% increase in sales to nearly $2 billion.” Read more

 

“Sears Canada Q2 Comp Sales Fall 6.8%” via Yahoo.  Read the release

 

“PetSmart to Explore Sale” by Soyoung Kim at Reuters via Chicago Tribune.  “There is no guarantee the review will lead to a deal and PetSmart could still determine that it would be better off on its own, people familiar with the matter told Reuters.” Read more

 

Highlights from Home Depot’s Q2 Earnings Call

 

Frank Blake

Every region positively comped.

Our Mexican business positively comped for the quarter, making it 43 quarters in a row of positive comps.

We could actually see the divot in sales when Mexico was playing in World Cup matches, but they still performed very well.

Canadian business continues to perform well with positive comps for the 11th consecutive quarter.

Our dot-com business had sales growth of over 38%.

 

Craig Menear

Departments that outperformed the company’s average comp: tools, millwork, outdoor garden electrical, windows, concrete, insulation, pressure treated wood, studs, fasteners, pipe and fitting, gypsum, kitchens.vanities, decorative lighting, fixtures and hard surface flooring led by laminate, tile and hardwood.

Appliances also had another quarter of outperformance, posting double-digit comps.

Baths, décor, plumbing, hardware, paint, building materials, indoor garden, flooring, lighting, and lumber were at or below the company average, all at mid-single digit comps.

Appliance parts, HVAC, hand tools, power tool accessories, water heaters and light bulbs all had double-digit comps.

Total company transactions grew by 4.1% for the quarter while comp ticket increased 1.7%.

Transactions for tickets under $50, representing approximately 20% of our U.S. sales, were up 3.1% for the second quarter.

Transactions per tickets over $900, also representing approximately 20% of our U.S. sales, were up 8.4% in the second quarter.

Sales from our high spend pro customers, which we define as those who spend more than $10,000 a year with us, grew above the company average for the tenth quarter in a row.

Our new lightbulb reset that will expand our presence and holding capacity in the category. This reset will add 25 new SKUs to our assortment and provide for a better, more intuitive shopping experience for the customer.

The lowest comping department was north of 4% and the spread was pretty narrow.

Roughly about a third of our online transactions culminate in a store, and that is split across both consumer and pro.

Roughly about 4% of our total sales comes from our services businesses today.

 

Carol Tome

We are reaffirming our sales growth guidance for the year of approximately 4.8% and comp sales growth of approximately 4.6%.

We expect a rate of comp growth for the back half of the year to be about 80 basis points higher than the rate of comp growth we experienced in the first half of the year.

Appliances: we have our expanded assortment in over 800 of our stores. We’re rolling to another 183 stores, and appliances contributed 50 basis points of our comp growth in the second quarter.

We might also just call out services because they had such a terrific quarter. They comped twice the company average, and the average ticket within our services business is $1,500.

Print will be less than 10% of our total advertising spend this year while digital is 36% and trending higher.

If we had either a 5% increase in our ticket or three more transactions per pro per year, it’s a $1.2 billion opportunity.

Dot-com sales made up 4.2% of our total sales at the end of the second quarter – that’s up 100 basis points from a penetration perspective year-on-year.

I would say buy online, ship to store is 100% incremental, and that in the second quarter was $144 million.

Read the full transcript

 

***

About Eye-on-Retail

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 bright and early every morning and delivered between 7-8 am CT. 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. Contact us at info@shiftmarketinggroup.net.

 

 

Tuesday Tipsheet: H.Depot US Comp +6.4% | Dick’s Comp +3.2% | D.Gen ‘surprised’

/in

 

“Home Depot Q2 Earnings Beat Street” at CNBC.  “Home Depot, the world’s largest home improvement chain, reported a 5.7 percent rise in quarterly sales as customers spent more on home repairs after a severe North American winter…Revenue increased to $23.81 billion from $22.52 billion a year ago. Wall Street had expected the retailer to deliver second-quarter earnings of $1.45 a share on $23.61 billion in revenue.” Read more

 

“Home Depot’s Q2 US Comp Sales +6.4%” “The Home Depot today reported sales of $23.8 billion for the second quarter of fiscal 2014, a 5.7 percent increase from the second quarter of fiscal 2013. Comparable store sales for the second quarter of fiscal 2014 were positive 5.8 percent, and comp sales for U.S. stores were positive 6.4 percent.” Read the release

 

“Dick’s Q2 Comp Sales +3.2% (+7.8% Excluding Golf & Hunting)” “Net sales for the second quarter of 2014 increased 10.3% to approximately $1.7 billion. Consolidated same store sales increased 3.2%, compared to the Company’s guidance of an approximate 1 to 3% increase. Same store sales for DICK’S Sporting Goods increased 4.1%, while Golf Galaxy decreased 9.3%.” Read the release

 

“Ex-Target CMO’s new pet project: Reviving Lassie” by Mark Reilly at Minneapolis/St.Paul Bus. Journal.  “Michael Francis turned Bullseye the dog into a retailing star for Target Corp. Now he’s taking on a possibly tougher job: Orchestrating a canine career comeback for Lassie.” Read more

 

“Dollar General’s Family Dollar Bid Fails to Impress” at The Street via Dallas News. “It is the loser of this year’s dollar store sweepstakes that may come out the best. BMO calculates that Dollar Tree could use a $305 million breakup fee in the event Dollar General wins Family Dollar to repurchase $1 billion in stock in 2015, boosting earnings per share by 6%.” Read more

 

“Dollar General CEO: Dollar Tree bid for Family Dollar a ‘surprise’ “ by Jennifer Thomas at Charlotte Bus. Journal. “We have expressed interest in a combination with Family Dollar multiple times over the past few years,” Dreiling said during a conference call discussing Dollar General’s offer…“If I had thought this asset was in play, I would not have announced my retirement,” Dreiling said.” Read more

 

***A message from Orchard Road Canning Co: Home Canning sales are hot – are you getting your fair share of category sales? The home canning category continues to grow and younger female canners are driving its growth.  Orchard Road targets young females with a simple and elegant glass jar design and unique package graphics that feature authentic food-filled jars.  See the package design.  View the sell sheet.  www.orchardroadcanning.com.  Contact info@shiftmarketinggroup.net for more information.

 

Bloomberg:  “Walmart Offer for Family Dollar Unlikely” by Renee Dudley and David Welch.  “Wal-Mart determined that Family Dollarwouldn’t be a good fit with its smaller-format stores, according to one of the people, who asked not to be identified because the deliberations were private. The company also hasn’t approached Family Dollar about a bid, another person said.” Read more

 

“Why Wal-Mart should worry about Family Dollar’s fate” by Phil Wahba at Fortune.  “The combined Dollar-General/Family Dollar would have 20,000 stores and annual sales above $28 billion – making it as big as Macy’s…And because Family Dollar and Dollar General overlap a lot more with Wal-Mart than Dollar Tree does, with its single price approach that combination is a bigger potential threat to Wal-Mart.” Read more

 

“Nordstrom bets on a slow, cautious entry into Canada” by Marina Strauss at Globe & Mail. “Like Target, Nordstrom is using an outside warehousing firm, a departure for both retailers in their practice of running their own U.S. distribution centres. “This is a big change for us,” she said…Another key challenge was setting up a merchandise buying system for Canada, because the one in the U.S. couldn’t handle foreign-exchange currency and other matters. The retailer invested in an entirely new system, resulting in it now having two different ones, which is “not ideal,” she said.” Read more

 

“Michael Bloomberg Hits Kroger on Guns” at CNN Money.  “The Moms group that got Target, Chili’s and Chipotle to take a stance against guns called on Kroger to do the same Monday. The organization, Moms Demand Action for Gun Sense in America, wants the grocery chain to ban customers from openly carrying guns in its stores.” Read more

 

***

About Eye-on-Retail

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 bright and early every morning and delivered between 7-8 am CT. 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. Contact us at info@shiftmarketinggroup.net.

Monday Tipsheet: D.Gen bids $9.7B for F.Dol | Wmart’s “Checkout Promise” | Target’s Midnight Shopping

/in

 

“Dollar General makes rival $9.7B bid for Family Dollar (Dollar General CEO would stay on until 2016)” by Andrew Ross Sorkin at CNBC.  “Dollar General’s offer of $78.50 a share in cash is higher than the $74.50 a share in cash and stock bid made by Dollar Tree on July 28. If a Dollar General-Family Dollar tie up goes through, the combined company would have 20,000 stores in 46 states, with sales of $28 billion.” See the video / Read more

 

Dollar General Press Release: “The transaction would create the preeminent small-box retailer in the U.S. based on store locations, delivering convenience and everyday low prices to customers through nearly 20,000 stores in 46 states with sales exceeding $28 billion and over 160,000 employees…The proposed transaction would be expected to generate significant synergies of $550 million to $600 million on an annual run-rate three years post-closing.”  Read the release

 

@BrianSozzi: “If Dollar General lands Family Dollar, it will be b-r-u-t-a-l for @Walmart.”

 

“Returning to Wal-Mart: Human Cashiers” by Shelly Banjo at WSJ.  “In an attempt to lure more customers this holiday season, Wal-Mart Stores Inc. is promising to staff each of its cash register from the day after Thanksgiving through the days just before Christmas during peak shopping times. The move, called the “checkout promise,” is aimed at addressing one of the retailer’s biggest customer complaints: long waits in checkout lines…The pledge will cover hours typically on weekend afternoons but which can vary by store.” Read more

 

“Target to Keep Some Stores Open to Midnight in Push for Traffic” by Paul Ziobro at WSJ.  “The new extended hours are starting this month and will be in effect through the holidays, after which they will be evaluated. Target spokesman Eric Hausman said shoppers had been asking for longer hours and that there were often a large number of shoppers in stores near closing time. “We did a lot more analysis into how big an opportunity this is, and there is a really big opportunity here,” Mr. Hausman said…A relatively small portion of the U.S. population shops late. At 10 p.m., 37% of people over the age of 15 are asleep and 26% are watching television, according the Labor Department’s American Time Use Survey. Only 0.3% were shopping.” Read more

 

“Costco CFO Richard Galanti Sells Shares Worth $1,435,729.96” at Ticker Report.  “Following the sale, the chief financial officer now directly owns 40,100 shares of the company’s stock, valued at approximately $4,770,697.” Read more

 

***A message from Juicebar® JamBar.  A refreshing burst of audio and power that lets consumers entertain on the go and recharge their smartphone at the same time!  Just plug the device directly into the built in 3.5mm audio prong and amplify your favorite music, videos and other media and boost talk time up to 16 hours.  The Juicebar Jambar is the perfect combination of both fun and refreshment for smartphones.  Compatible with virtually any USB device and ready for use right out of the box.   See the sell sheet.  See the video. www.juicebarchargers.com

 

“The Home Depot Leadership team takes the ALS ice bucket challenge (and the look on Frank Blake’s face is priceless)”  See the video

 

“Walmart Taking Advantage of Amazon and Disney Feud” at SF Gate.  “Number of the day. 40 percent. That’s how much Wal-Mart was discounting online pre-orders of Disney DVDs last week. The offer helped boost sales of “Captain America: The Winter Soldier” by 90 percent, with other titles climbing 40 percent, the retailing giant said.” Read more

 

“Amazon moving Nevada warehouse from Fernley to Reno” at The Seattle Times.  “KRNV-TV first reported on Friday that the new facility will be housed in the LogistiCenter 395 that Dermody Properties is building off of Lemmon Drive just north of Reno. The current warehouse covers 750,000 square feet. When completed in the next few years, the LogistiCenter complex will feature three buildings with a total of 1.2 million square feet of warehouse space on a 91-acre site overlooking U.S. 395.” Read more

 

***

About Eye-on-Retail

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 bright and early every morning and delivered between 7-8 am CT. 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. Contact us at info@shiftmarketinggroup.net.

 

Friday Tipsheet: Target CEO Iview | Costco’s Jelinek Not Afraid | Another Hack

/in

 

“Who’s Afraid of Amazon? Not Costco, Says Craig Jelinek” by Nina Shapiro at Seattle Weekly.  “I called Jelinek this week to ask him what’s going on…“We’re going to open about 30 Costcos a year,” Jelinek says…the Issaquah retailer is dabbling in some kind of online delivery service through Uber…”They come in to buy from us sometime,” says Jelinek, who then has second thoughts about making this revelation, adding that he’s not prepared to say any more. And yet, Jelinek does not seem particularly exercised about ramping up Costco’s e-commerce, nor worried about the threat from Amazon. “It has not affected our business at all,” he says of Prime Pantry.” Read more

 

Star-Tribune Interviews New Target CEO by Kavita Kumar.  “Three days into the job, Target Corp.’s first outsider CEO has already shown how different he is simply by being seen. Brian Cornell appeared before thousands of employees in a town hall-style meeting on Wednesday and spoke to hundreds of the company’s suppliers Thursday. He then flew to Canada for a firsthand look at the business unit that, for the moment, is Target’s biggest challenge. On Thursday, Cornell sat down for his first interview since starting work and told the Star Tribune that he is humbled to lead such an “iconic brand.” Read more

 

“Interview excerpts with Brian Cornell, Target’s new CEO” at Star-Tribune. “I think we all know that omnichannel is critically important to our success. I don’t know if that’s priority one, two or three, but it’s certainly not No. 4. Our future as we continue to build this brand is to make Target one of the leading omnichannel retailers of the future.” Read more

 

“Supermarket chains Supervalu, Jewel-Osco in potential data breaches” at CNBC.  “Two major grocery store chains—Supervalu and Jewel-Osco—on Friday said they may have been adversely affected by computer data breaches.” Read more

 

“Supervalu Says Hackers May Have Stolen U.S. Customers’ Data” by Robert Valpuesta at Bloomberg.  “The data may have been stolen from cards used in Supervalu stores from June 22 to July 17 following a network intrusion, the Eden Prairie, Minnesota-based company said in a statement today.” Read more

 

“Denver: Wal-Mart provides update on U.S. manufacturing jobs initiative” by Kim Souza at The City Wire.  “(Michelle) Gloeckler said 200 suppliers attended this year’s summit and 87 component manufacturers were also there with exhibits to help suppliers put the puzzle pieces together. There were 42 state delegations and representatives from Puerto Rico. “We have 359 meetings scheduled for tomorrow (Aug. 15). That’s 20% more than last year,” she said.” Read more

 

“How Much of Walmart Is Really Made in America?” by Susan Berfield at Bloomberg.  “Doug McMillon, the chief executive of Walmart, walked onto the stage at its U.S. Manufacturing Summit in Denver and gave the audience a cheery “Good afternoon.” No response. “At Walmart, we yell back, ‘Good afternoon,’” he said, smiling. The audience obliged…Walmart’s head of U.S. marketing, Stephen Quinn, reminded the suppliers in the audience to put “Made In America” on their products, even if that’s always been the case.” Read more

 

“Walmart’s Recent Open Call Was an ‘Incredible Day’ (Except for Patio Furniture)” by Kim Souza at The City Wire.  “We held 800 meetings for new products and awarded 15% of them contracts on the spot. Another half of them, we continue to talk about ongoing possibilities,” (Michelle Gloeckler) said.  Many of the new products like Trash Ease, Jen’s Crab Cakes and Taco Plates, because they are made in the U.S., will be in stores by the holidays…The update Gloeckler gave on her efforts to onshore patio furniture manufacturing or assembly was underwhelming. She said after an exhaustive search and more research, most products cannot now be made competitively in the U.S.” Read more

 

“Amazon Announces Plans for Fifth California Fulfillment Center (Touts Wages Higher than ‘Traditional Retail’)” “We are proud to be hiring for more than 2,500 full-time jobs in California that offer wages 30 percent higher than traditional retail stores and include comprehensive benefits on day one, bonuses and stock awards,” said Mike Roth, Amazon’s vice president of North America operations. “We have found great talent in the state and we’re excited to be growing quickly to serve our customers.” Read the release

 

“Nordstrom Q2 Comp Sales +2.7% (Misses 3.1% Estimate)” by Lindsey Rupp at Bloomberg.  “Its full-line department stores saw sales drop 1.2 percent, compared with projections for growth of 1.2 percent.” Read more

 

Consumer Reports: “Amazon Fire smartphone ‘traps’ users” by Michelle Fox at CNBC.  “While the Fire, which wants to be the ultimate shopping phone, taps into all Amazon has to offer, other phones can provide most of those benefits, Mike Gikas, an editor at Consumer Reports, said Thursday on CNBC’s “Power Lunch.” Read more

 

“Walmart Canada Eeks Out .2 Comp Growth in Q2” by Marina Strauss at Globe and Mail. “In Canada, where Wal-Mart got a new leader, Dirk Van den Berghe, on Aug. 1, the division “produced solid results in a very competitive environment,” said David Cheesewright, president of Wal-Mart’s international business and a former head of the Canadian operation.” Read more

 

Earnings Call Transcript from Walmart’s Q2 Earnings Call  Read more

 

“Watch out retailers, Wal-Mart takes hit on health care” by Landon Dowdy at CNBC.  “The nation’s largest retailer said Thursday it now expects to spend about $500 million for U.S. health-care costs this year, up from a previous estimate of $330 million.” Read more

 

“J.C. Penney surprises investors with sales gains, slashed losses” by Maria Halkias at Dallas News.  “The company also said that CEO Mike Ullman is recovering from a “surgical procedure” but is expected to be back soon…Analysts on the conference call wished Ullman a speedy recovery but didn’t seem concerned about his absence. J.C. Penney spokeswoman Daphne Avila said the surgery “is related to a medical condition he has had for more than 20 years.” Ullman has a spinal cord injury that affects his mobility.” Read more

 

“Saks Fifth Avenue barks legal threat at dog treat company” by Laila Kearney at Reuters via Chicago Tribune. “But Sarabella said its business as usual for Snaks 5th Avenchew — name and all…”As of now, I’m standing my ground,” said the 32-year-old New York native who lives in Hoboken, New Jersey.”  Read more / See the video

 

***

About Eye-on-Retail

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 bright and early every morning and delivered between 7-8 am CT. 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/Sam’s = Flat Comp in Q2 | Wayfair HQ Sneak Peek | 14-year-old lived in Wmart

/in

 

Walmart & Sam’s Comp Sales Flat for Q2.  Q2 Highlights:

* Consolidated net sales for the second quarter were $119.3 billion, an increase of 2.8 percent over last year.

* Walmart U.S. comp traffic decreased 1.1 percent, while average ticket increased 1.1 percent.

* E-commerce sales positively impacted comp sales by approximately 0.3 percent.

* Excluding fuel, Sam’s Club comp traffic was up 0.3 percent, and average ticket was down 0.3 percent. 

* Comp sales for the Neighborhood Market format rose approximately 5.6 percent.

* Walmart International grew net sales 3.1 percent to $33.9 billion.

*  Forecasted earnings per share from continuing operations for the full year are expected to range between $4.90 and $5.15, versus previous guidance of $5.10 to $5.45. 

Read the press release  Read the 12-page PowerPoint

 

CNBC’s Take:  “Wal-Mart profit hit estimates, lowers outlook” “The discount retailer also lowered its full-year outlook for continuing operations to $4.90 to $5.15 a share from $5.10 to $5.45 a share.” Read more

 

“How a 14-year-old lived in Walmart for 2 days” by J.D. Miles at CBS 11 DFW. “Customers who walked down the aisles where the teen was living never noticed two hidden compounds where the boy was able to store necessities, sleep in a makeshift bed and and eat items taken from inside the store…He created a crack in the back wall of the drink aisle to grab juice and even collected a fish from the pet department.”  See the pics & video / Read more

 

“Sneak Peak Inside Wayfair’s new HQ in Boston” by Sara Castellanos at Boston Business Journal.  “Our office is an open office structure so you need a lot of collaboration spaces where you can have spontaneous or scheduled meetings,” said Nancy Go, Wayfair’s vice president of brand marketing, in an interview. A sparkling chandelier hangs from the ceiling in one area at the company’s new headquarters. In another area, Andy Warhol-themed wallpaper offers a colorful backsplash.” See the pics / Read more

 

“Sam’s Club CEO Rosalind Brewer named co-chair of Northwest Arkansas Council” at The City Wire.  “The organization has a history of being led by Northwest Arkansas’ top business leaders and executives. Alice Walton was chair when the organization was first established and then John Paul Hammerschmidt took over in 1993.” Read more

 

“The Church of Superfoods Gains More Believers” by Venessa Wong at Bloomberg.  “Nielsen found the most popular superfoods in the produce section are tomatoes, strawberries, oranges, carrots, and iceberg lettuce. The most nutrient-dense foods include watercress, Chinese cabbage, chard, beet greens, and spinach.” Read more

 

“See-Through Food Packaging Boosts Sales” by Sarah Nassauer at WSJ.  “Clear packaging gives products an aura of being natural, something that more shoppers are seeking. Seeing “simple, wholesome ingredients,” can be a powerful motivation to buy, says Ms. Wing-Larson. “You eat with your eyes.” Read more

 

***A message from Dig It® Handwear.  Revolutionary garden glove protection for manicured female hands!  Patented line of high-quality gardening gloves provides unique “pillow-top” protection for female gardeners.  Nationally distributed in Canada…Shark Tank’s Kevin O’Leary is an investor…now being offered to US Retailers for the first time.  View the line at www.digithandwear.com.  Peggable gloves merchandise easily–see the off-shelf display. Contact info@shiftmarketinggroup.net to get started.

 

“J.C. Penney Burnishes Its Liz Claiborne Brand” by Stuart Elliott at NY Times.  “(Former CEO Ron) Johnson eliminated or played down many mainstay Penney house brands, but he “recognized the importance of” Claiborne, said Siiri Dougherty, senior vice president and general merchandise manager for women’s apparel at Penney…Still, the Kantar Media unit of WPP reported that spending to advertise Claiborne in major media yo-yoed from $52,000 in 2011 to $1.1 million in 2012 to nothing last year or in the first quarter of 2014. “I think a lot of things with us have yo-yoed over the years,” Ms. Dougherty said ruefully.” Read more

 

Happening Today:  Walmart To Host Second Annual U.S. Manufacturing Summit in Denver  Read the release

 

Target Lays Out Canada Battle Plan in News Release  Read the release

 

“Amazon Continues Its Higher Ed Book Sales March At Purdue, Offers Staffed On-Campus Pickup” by Darrell Etherington at TechCrunch.  “The program at Purdue resembles the one at UC Davis that debuted at the beginning of the year, but with a twist: Amazon is also actually going to be staffing on-campus ‘store’ type locations, reserved for pick-up and drop-off of orders made through the Amazon Purdue store.” Read more

 

“Ace Hardware Reports Record Q2 Net Income – Up 57% from Last Year”  “Increases were noted in virtually every department with the paint, electrical, and lawn and garden categories showing the largest increases. The Company has remodeled and re-equipped over 3,300 stores as part of the new Paint Studio initiative which contributed meaningfully to second quarter wholesale revenues and record retail sales in May.” Read the release

 

“Macy’s profit rises, but misses Wall Street’s expectations” by Tom Demeropolis at Cincinnati Bus. Journal.  “Macy’s lowered its guidance for full-year comparable sales to an increase of 2 percent to 2.5 percent, down from previous guidance of a 2.5 percent to 3 percent increase.” Read more

 

“Racy GQ cover spells trouble for Lands’ End” by Krystina Gustafson at CNBC.  “Angry moms have taken to the company’s Facebook page after receiving the magazine, which features a racy cover of a topless model covered only with a white floral lei, and inappropriate language. It was addressed to recipients as a “Land’s End Bonus.”…”My 14-year-old son brought in the mail today & was quite disturbed & fascinated by a ‘gift’ Lands End sent us…” Sue Skindell Bauman wrote on the company’s Facebook page.” Read more

 

***

About Eye-on-Retail

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 bright and early every morning and delivered between 7-8 am CT. 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: Iview w/Target’s Canada Boss | PETA Hits Harris Teeter | Wmart Experiments

/in

 

Target’s New Canada Boss, Mark Schindele, Sits Down for Interviews…

 

“New head of Target Canada plots his course to a turnaround” by Marina Strauss at Globe & Mail. “It makes me feel terrible where we’re disappointing our guests [customers] where we have an empty shelf,” Mr. Schindele said in an interview on Tuesday at the Toronto office of the retailer’s public relations firm, decorated in Target’s trademark red and white hues. “We see less of that than we have in the past but we know we still have work to do.” Read more

 

“Target Canada president aims to ‘reset’ supply chain, improve pricing to win over Canadians” at Reuters via National Post.  “We’re now unwinding some of the decisions we made that were based on speed.” Schindele said that Target was too ambitious when it launched starting in March 2013. “If I could build a time machine and go back, we would’ve liked to have a slower approach,” Schindele said in an interview with The Canadian Press. “It was too much in too short a window. Our biggest issue (was) that we needed more time.” Read more

 

“Wal-Mart more willing to experiment as it strives to keep up with online retailers” by Anne  D’Innocenzio at AP via StL Post-Dispatch. “Wal-Mart thought shoppers would like the opportunity to use a smartphone app to scan items they want to buy as they walk through store aisles…But customers couldn’t figure out how to work the “Scan & Go” app during tests in 200 stores, so Wal-Mart nixed it. Instead of looking at the app as a failure, though, Wal-Mart took what it learned from “Scan & Go” to create another service.” Read more

 

“Harris Teeter denies PETA allegations about abuse at dairy” by Ely Portillo at Charlotte Observer.  “The animal rights group released a video of what it says are cows forced to live in filthy, manure-soaked pools of their own waste. But Harris Teeter, a subsidiary of the Kroger Co., said it double-checked with its dairy supplier and doesn’t receive any milk from the farm in question.” Read more

 

“Personalization and Subscriptions are Changing Retail” by Kim Souza at The City Wire.  “Long said subscriptions seems to be more suited to niche areas and he does not believe the sales lost to subscription services are enough to move the needle backward at big box retailers. He adds that Costco and Sam’s Club could risk key impulse sales in their club if they bought too heavily into the subscription arena.” Read more

 

****A message from Juicebar Chargers – Winter’s power outages are near!  Juicebar’s Hurricane Travel Charger holds enough juice to weather a full week’s worth of hurricanes, blizzards and power outages! With up to 5 full smartphone charges or a full tablet charge and more, Juicebar’s Hurricane is the perfect sidekick when life disconnects you from the grid. Peggable, shipper display or open-stock. See the full lineup: www.juicebarchargers.com. See the video. Email: info@shiftmarketinggroup.net for program details

 

“A Behind-the-Scenes Look at Altuzarra’s New Target Collection” by Kristin Tice Studeman at Style.com.  “Though the Altuzarra customer profile might not align with the typical Target shopper, and vice versa, the designer says there is a meeting point for the two. “In a way, it’s a different audience, but you are still talking to women who have very busy lives, and they want clothes that don’t hinder them but that work for their lifestyles.”  See the video / Read more

 

“Amazon.com builds brick-and-mortar presence with card-swiping device” at CNBC.  “Amazon.com unveiled a $10 credit-card reader and mobile app for brick-and-mortar businesses on Wednesday, marking the latest step by the U.S. online retailer to expand its presence in the physical world.” Read more

 

“Walmart Reports Earnings Tomorrow – Downward Trend Expected to Continue” at Forbes.  “Revenue is projected to be $118.98 billion for the quarter, 2% above the year-earlier total of $116.95 billion. For the year, revenue is projected to roll in at $486.82 billion.” Read more

 

“Macy’s fined nearly $1 million after decapitation of factory employee” by Caitlin Owens at Chicago Tribune. “In addition to paying the fine, Macy’s must also conduct an audit of balers and compactors at its California stores and distribution centers, which must be approved by the district attorney’s office.” Read more

 

“Twitter users can expect to see more video ads” by Robert Faturechi at LA Times.  “Video is an incredible storytelling medium,” Twitter said in its statement. For now, companies will be able to pay per view, only getting charged when users start playing their promoted videos.” Read more

 

“Target to Sell Entrepreneur’s Game that Teaches Kids to Code” by Rachel Lerman at Puget Sound Bus. Journal.  “It was a simple idea. Dan Shapiro needed something fun to do with his four-year-old twins one weekend last summer while his wife was out of town. So, the serial entrepreneur created a board game to teach his kids how to code. His kids loved it and Shapiro realized he was on to something.” Read more

 

***

About Eye-on-Retail

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 bright and early every morning and delivered between 7-8 am CT. 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.