Archive for category: Eye-on-Retail

 

“To Catch Up, Walmart Moves to Amazon Turf” by Claire Cain Miller & Stephanie Clifford at NY Times.  “Walmart  is trying hard to prove it is one of the cool kids.  For example, at press events in Bentonville, Ark., Walmart’s headquarters, the menu tends to be ham sandwiches, chips and iced tea. At a recent event in San Bruno, Ca. it was white asparagus panna cotta with house-smoked salmon tartar, morel mushroom macaroons and charcuterie from a whole pig. Borrowing a page from Google and Twitter, the company offers hack days when engineers can work on whatever they want.”  Read more

 

“Jeff Bezos’ ‘shadow’ most coveted job at Amazon” by Brad Stone at SF Gate.  “The man holding this job – and they have all been men so far – has had direct, almost unlimited access to CEO Jeff Bezos for as long as two years. He follows Bezos around, travels with him, sits in on his meetings, and confers with him at the end of many workdays.  The job title is unofficially the “shadow” to the CEO, or more formally, the technical assistant or technical adviser.”  Read more

 

“Reports on all-clear for Walmart India are premature” at The City Wire.  “Wal-Mart confirmed they are still are waiting to hear from India’s enforcement directorate.  “We respect the process and have cooperated with the government throughout the ED’s review and investigation. To our knowledge, the ED has not yet officially released its findings, so we have not seen the result of its review and cannot comment,” Wal-Mart spokesman Kevin Gardner said.”  Read more

 

“Lowe’s Offers Hertz Vehicle Rentals Via In-Store Kiosk”  See the Website

 

“Target Tagged With Falling Earnings Estimates” at Forbes.  “Earnings estimates for the fiscal years 2014 and 2015 have been reduced materially over the past sixty days. The Zacks Consensus Earnings per share estimate has declined $0.43 to $3.88 for 2014 and $0.43 to $5.00 for 2015.”  Read more

 

“Sears Canada’s new CEO sticks to turnaround game plan” by Hollie Shaw at Financial Post.  “There are strategic elements around the idea of focus, and amassing your forces,” said Douglas Campbell, who was a U.S. marine pilot before he became a corporate turnaround specialist. “You have got to be able to focus on a few simple things that you do well.”  For Mr. Campbell, 43, that means sticking to the plans put in place under the department store chain’s last CEO, Calvin McDonald, who left the retailer abruptly three weeks ago.”  Read more

 

“Dollar General Introduces New Fueling Station”  “Dollar General today announced the introduction of its first fuel station, as part of a test pilot project. The new fuel pumps are located at the Dollar General Market in Hanceville, Alabama.”  Read more

 

“Disruptions: Silicon Valley’s Next Stop: The Kitchen” by Nick Bilton at NY Times.  “While a growing number of start-ups like Chirp Farms have received money from big venture-capital firms, exactly how these companies plan to compete with the entrenched giants of the food industry has not been crystal clear…“What is happening right now is that Silicon Valley is starting to see opportunities for disruption in other areas besides traditional technology,” Ms. Miller said.”  Read more

 

” ‘Amazon tax’ for sales thrown out in Illinois” at CNBC.  “The 6-1 ruling represented the first time a court had invalidated an Internet sales tax law among 18 states that have them. It brought an immediate cry from traditional, store-based retailers for Congress to step into regulating taxes on web sales.”  Read more

 

“Facebook, Google agree to join forces on ad sales” by Susan Krashinsky at Globe & Mail.  “With the new agreement, starting in a few months Google will be able to include Facebook ads in its DoubleClick Bid Manager software, which helps marketers to bid on and purchase digital advertising across the Web (on Google’s own DoubleClick ad exchange as well as other digital ad exchanges.).”  Read more

 

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“Target tests new Apple-like format in its electronics department” by John Ewoldt at Star-Tribune.  “The discount retailer recently remodeled the departments in several of its stores with waist-height, bright white tables and displays. The move fits a design trend seen in recent years at stores run by Apple Inc. and Best Buy Co. that gives shoppers more hands-on experience with the goods.”  Read more

 

“Warren Buffett pulled plug on paint line going into Home Depot/Lowe’s” at CNBC.  Buffet quotes:

“I made a promise to our Dealers that we would stick with them.”

“One and a half or two years ago I found we were about to sign something with one of the very big boxes and I had to make a change.”

See the video

 

“Is Kroger planning to buy Chicago supermarkets next?” by Steve Watkins at Cincy Bus. Courier.  “Kroger Co. might be targeting Chicago for its next expansion before it’s even completed its most recent deal.  Kroger is the leading candidate to buy most or all of the 68 Dominick’s stores that are now up for sale there, according to two analysts based in Chicagoland.”  Read more

 

“Wal-Mart downplays SNAP cuts” by Kim Souza at City Wire.  “Wal-Mart, Family Dollar and Dollar General are some of the biggest benefactors from the $78 billion funneled through the Supplemental Nutritional Assistance Program each year.  SNAP is roughly 10% of the total U.S. grocery business, but benefits go to one in seven Americans, or some 48 million consumers. All of them will see their monthly benefits reduced on Nov. 1. For example, a family of four has been getting $588 per month in SNAP benefits since 2009, but that will be reduced by $36, or 5% after Oct. 31.”  Read more

 

“EBay holiday quarter outlook disappoints on U.S. weakness” at Reuters.  “Chief Financial Officer Bob Swan told investors on a conference call that industry growth rates for e-commerce had shrunk to about 13 percent in the third quarter, from about 16 percent in the previous quarter.  “We really haven’t seen any more positive signs in October,” he added.”  Read more

 

“Sears Canada’s head office braces for more layoffs under new CEO” by Hollie Shaw at Financial Post.  “The company held a series of head office meetings last week with employees at multiple levels and departments to outline its strategies, according to sources, which include a goal of streamlining head office and decreasing its salary costs.  The scope of the pending cuts was not revealed, and no store-level employees will be affected, sources said.”  Read more

 

“Costco says cooperating with DEA probe on controlled substances” at Fox Business.  “Costco Wholesale Corp said on Wednesday that it will cooperate with the U.S. Drug Enforcement Administration in its ongoing investigation of prescriptions for controlled substances, after receiving subpoenas and warrants from the DEA.”  Read more

 

“Etsy’s New Rules Open Doors to Bigger Sellers” by John Tozzi at Businessweek.  “The change follows years of growing pains and awkward moments for the site. Etsy is now home to more than 1 million storefronts and this month will surpass $1 billion in annual transactions for the first time. Last year sellers protested after a featured shop turned out to have help from a staff making handmade furniture in apparent violation of the website’s rules.”  Read more

 

“Home Depot and J.C. Penney Defeat $250 Million Case Over Gift Cards” by Susan Decker at Bloomberg.  “In the trial that was to begin Oct. 22, Alexsam was seeking a combined $250 million in patent royalties from the three companies, said lawyer Bill Sigler of Fisch Hoffman Sigler in Washington, who represented the retailers in all three trials.”  Read more

 

“Never Shop in October and Other Secrets From a Retail Guru” by Kyle Stock at Businessweek.  “The middle option is usually quite a bit cheaper than the product on the right and only slightly less good, while the product on the left is only slightly cheaper than the one in the middle. Ellwood calls it “Goldilocks” pricing because the choice in the middle feels “just right.” His advice: Always buy the one on the left.”  Read more

 

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“Walmart’s Mike Duke Kicks Off 20th Annual Meeting Today at 8:50 EST”  Watch the Webcast / See the Agenda

 

“Walmart Tops in Food Sales; 2.5 times that of #2 Kroger” by Kim Souza at The City Wire.  “The RNG report indicates Wal-Mart’s food and beverage sales this year are roughly 17% of the total market shared by the top 50 retailers, which include supermarkets, quick serve restaurants and warehouse clubs.  Wal-Mart’s food and beverage sales have posted a compound annual growth rate of 5.2% since 2009. The growth rate is half that seen at Whole Foods and Dollar General, both posting double digit gains.” Read more

 

“Amazon Moves in With P&G” by Serena Ng at Wall Street Journal.  “The e-commerce giant is quietly setting up shop inside the warehouses of a number of important suppliers as it works to open up the next big frontier for Internet sales: everyday products like toilet paper, diapers and shampoo.  The under-the-tent arrangement is one Amazon’s competitors don’t currently enjoy, and it offers a rare glimpse at how the company is trying to stay ahead of rivals including discount chains, club stores and grocers.”  Read more

 

“Finance Minister:  ‘Walmart will be a speck in India’s retail market’ “ at Economic Times.  “”Walmart will be a speck in India’s retail market. India’s retail market is driven by millions of standalone stores. India’s retail market has been strengthened by Indian retail chains. So why do we assume that Walmart will make a huge difference to India’s retail market?” he told a news channel in an interview.” Read more

 

“Which Rewards Program is Best for You: Rite Aid, CVS, or Walgreens?” at Yahoo via Cheapism.  “The rewards programs at the three major national pharmacy chains all offer exclusive discounts and coupons to card holders, but they are decidedly different in other ways…Seniors receive extra incentives at Walgreens and Rite Aid, for example, and CVS has an additional rewards program for beauty product fanatics. Members of Walgreens’ free fitness rewards program can accrue points without making a single purchase.” Read more

 

“Apple Hires Burberry CEO Angela Ahrendts to Head Retail Efforts” by Ina Fried at All Things D.  “Apple said late Monday that it has hired Burberry CEO Angela Ahrendts to serve as head of its retail efforts.  Ahrendts, who will join in the spring, will server as Senior VP and report to CEO Tim Cook. She was among a list of people seen as top candidates for the position.”  Read more

 

“Target Teams Up with GoodGuide to Rate Sustainable Products” by Mary Mazzoni at Triple Pundit.  “If you’re feeling a bit of deja vu, that may be because rival retail giant Walmart released a similar standard in August 2012. At a recent meeting of employees, suppliers and nonprofit organizations, the company reported that its Sustainability Index has reached 200 product categories and more than 1,000 suppliers in the past year – with a goal of reaching 5,000 suppliers by the end of 2013.”  Read more

 

“Macy’s to open on Thanksgiving for the first time” by Alexander Collidge at Cincinnati.com.  “Macy’s Inc. is breaking with a 155-year-old tradition, announcing on Monday that it will open its stores on Thanksgiving Day.  The Cincinnati-based company said 750 of its 800 stores nationwide will open at 8 p.m. Nov. 28 – four hours before the start of Black Friday.”  Read more

 

“Wal-Mart Stores, Inc. announces its FY 2015 earnings calendar”

First quarter – Thursday, May 15, 2014

Second quarter – Thursday, August 14, 2014

Third quarter – Thursday, November 13, 2014

Fourth quarter – Thursday, February 19, 2015

Read more

 

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“The Top 100 Beloved Brands” at Adweek.  No Walmart?.  Top retail brands:

– Whole Foods #8

– Lowe’s #10

– Costco #20

– Target #21

See the Complete List

 

“Fortune’s 50 Most Powerful Women in Business”  See the Complete List

– #12:  Carol Meyrowitz, TJX CEO  Read more

– #24:  Gisel Ruiz, Walmart EVP & COO  Read more

– #15:  Rosalind Brewer, Sam’s Club CEO  Read more

– #45:  Carol Tome, Home Depot CFO  Read more

 

“Where Wal-Mart Isn’t: Four Countries the Retailer Can’t Conquer” by Susan Berfield at Businessweek.  “Wal-Mart is the biggest retailer in the world, with sales of $135 billion in 26 countries outside the U.S. But it doesn’t have stores in some of the world’s biggest markets. Not in Germany, not in South Korea, not in Russia. And as of this week, not in India, either.”  Read more

 

“Safeway says goodbye to Chicago, profit falls” by Jessica Wohl at Reuters.  “The Dominick’s chain in Chicago has been a “noticeable drag” on Safeway’s financial results, a “significant drain” on resources and its lowest performing division, Chief Executive Officer Robert Edwards said on a conference call with analysts…Safeway now has 72 Dominick’s stores in the market.”  Read more

 

“Walmart Ramps Up for Holiday Returns” by Kim Souza at The City Wire.  “Raul Castilla, director of reverse logistics at Wal-Mart, said each year the retailer processes 45 million cases of returned merchandise through its regional return centers. He said 40% of that volume will come through in January and February following the hectic holiday buying season…Inside each massive warehouse, Wal-Mart sorts the returned products into four tiers: Vendor for credit; donation to United Way; recycle; or landfill.”  Read more

 

“The Dollar Store’s Food-and-Cigarettes Strategy Is Working” by Vanessa Wong at Businessweek.  “The discount chain’s typical tobacco sale is $13. About 60 percent of shoppers who buy tobacco buy an additional $4 worth of goods…“The reason we did tobacco was to help solidify our refrigerated and frozen food supply chain, and it has done that,” Bloom said on Wednesday…Tantalizingly, Chief Executive Howard Levine did hint at “a major food set coming that will impact the back half of our year.”  Read more

 

“Family Dollar Opens Store #8,000”  “Today, Family Dollar hits a major milestone in its history as the Company opens its 8,000th store in Lancaster, South Carolina.”  Read more

 

“German Scientist Testing Retail Prices by Measuring Brain Waves” by Frank Thadeusz at Spiegel.  “Müller is searching for “neuronal mechanisms,” deeply buried in the human brain, “that we can’t just deliberately switch off.” In fact, there is a center in our gray matter that monitors proportionality independently of reason. This brain region functions according to simple rules. For instance, coffee and cake makes sense, while coffee and mustard triggers an alarm. Experts recognize the unconscious defensive reaction on the basis of certain waves that become visible with the help of electroencephalography (EEG).”  Read more

 

“Showrooming Increases 156 Percent from 2012”  “After consumers compared prices on their phones while in-store, 47 percent completed transactions; 45 percent went elsewhere to purchase items; and 7 percent did not make purchases. This shows that retailers have about a 50/50 chance against showrooming.”  Read more

 

“The Astonishing Story Of Jeff Bezos’ Biological Father Who Didn’t Even Know Bezos Existed Until The End Of Last Year” by Jay Yarow at SF Gate via Business Insider.  “Stone managed to find Jorgensen, now 69, who owns a bike shop in Glendale, Arizona.  Here’s how Jorgensen reacted when Stone introduced himself: “He had no idea what I was talking about. Jorgensen said he didn’t know who Jeff Bezos was and was baffled by my suggestion that he was the father of this famous CEO.”  Read more

 

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Have a great weekend!