Thursday’s Eye-on-Retail Tipsheet: Costco Sls Jump 4% | D.Gen +5.1% | Delhaize CEO Out

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“Costco Same-Store Sales Jump 4% in August” – Company Press Release.  “Costco today reported net sales of $7.95 billion for the month of August, the four weeks ended September 1, 2013, an increase of seven percent from $7.44 billion during the similar period last year.  For the 16-week fourth quarter, the Company reported net sales of $31.8 billion, an increase of one percent compared to net sales of $31.5 billion in the 17-week fourth quarter of fiscal year 2012.”  Read more

 

“Costco’s August same-store sales beat estimates” at Reuters.  “Sales at stores open at least a year rose 4 percent, including the impact of fuel and foreign exchange, in the four-week period ended Sept. 1.  Analysts had expected same-store sales to rise 3.8 percent for the month of August…The company would open 15 new warehouses by the end of year, Jeff Elliot, assistant vice president of financial planning and investor relations, said in a pre-recorded conference call.”  Read more

 

“Dollar General Beats with 5.1% Same-Store Sales Growth in Q2” at Chicago Tribune.  “Same-store sales increased 5.1 percent. Analysts had expected such sales to rise 4.2 percent.  Along with beating the decline in same-store sales at Walmart U.S., Dollar General’s same store sales were better than a 3.7 percent increase at Dollar Tree Inc and a 2.9 percent increase at Family Dollar Stores Inc in the latest periods those rivals reported.”  Read more

 

“Trading Down Continues to Help Dollar General” by Paul Ziobro at WSJ.  “While big-box retailers such as Wal-Mart Stores Inc. and Target Corp. are losing traffic, shoppers—especially those on the lower rungs of the income ladder—are still turning up at dollar stores.  The latest evidence comes from Dollar General Corp., which reported a 15% increase in second-quarter earnings Wednesday, as same-store sales rose 5.1%. Overall sales rose 11%, as the company continues to quickly open more stores, bring its total to 10,866.”  Read more

 

“Delhaize America CEO out as grocery shakeups continue” by Ely Portillo at Charlotte Observer.  “The CEO of grocer Delhaize America resigned Wednesday, meaning Food Lion’s new chief executive will now report directly to the grocer’s parent company in Belgium while the company attempts its turnaround.  Roland Smith had been CEO of Delhaize America for less than a year… Food Lion chief executive Beth Newlands Campbell, along with the grocer’s other U.S. operations, will report directly to Delhaize Group’s new CEO in Brussels, a spokeswoman said.”  Read more

 

“Walmart workers planning massive strike today” by Charles McKeague at AJC.  “Thousands of Walmart employees are gearing up for a massive strike Thursday. Last week, fast food workers walked out on their jobs — demanding $15 an hour. Walmart employees are seeking similar wages.”  Read more

 

“Supermarkets Benefit from Cooperative Rather Than Competitive Response to Hard Discounters” from American Marketing Association.  “First, supermarkets close to the hard-discounter entrant are generally better off than those located further away, as consumers are in this case more inclined to combine visits to both stores. Second, rather than trying to catch up in price-sensitive categories, traditional retailers should focus on improving their offer in categories where they are already strong.”  Read more

 

“EPA Slams Safeway with $600K Fine” by Stephanie Lee at San Fran Chronicle.  “The settlement follows allegations by the U.S. Environmental Protection Agency that the Pleasanton grocery-store chain, the nation’s second largest, violated the federal Clean Air Act by failing to properly repair leaks of a gas that is used as a coolant in refrigerators.”  Read more

 

“RetailMeNot Shoppers Trend Report: A Whopping 92% of American Consumers Are Coupon Users”  “While printable coupons remain the most widely used type of coupon (60%), online coupon usage has nearly doubled (29% vs. 16% three years ago) and mobile coupon usage has nearly tripled in the past three years (10% vs. 4% three years ago).”  Read more

 

“Coming soon: 334 pot stores in Washington state” by Bob Young at Seattle Times.  “Retail stores would be allocated by population and accessibility, in a system similar to the one used for defunct state liquor stores. That system sought to have stores within a 15-minute drive for 95 percent of the population.”  Read more

 

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Wednesday’s Eye-on-Retail Tipsheet: Target wants to be Netflix | D.General Q2 Earnings Today | DC-Wmart Update

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“Target Nears Debut Of Streaming Video Service” by Jake Anderson at Twin Cities Business.  “Hints about the new service, called Target Ticket, appeared earlier this year on an online login page, which indicates that the platform is in beta mode and requires a promotional code and “Team Member ID” number to access it.  But technology news outlet TechCrunch recently obtained documents that were reportedly distributed to Target employees—and that indicate that the new service is nearing its official rollout.”  Read more

 

“Lowe’s Names McDermott SVP/General Merchandising Manager, Building and Maintenance”  “Michael P. McDermott will join the company as senior vice president and general merchandising manager- building and maintenance, a new position. McDermott will be responsible for the Lumber & Building Materials, Millwork, Hardware & Tools and Rough Plumbing & Electrical divisions. He will report to Chief Merchandising Officer, Michael A. Jones.”  Read more

 

“Dollar General Is Paying Its Way” at WSJ.  “Dollar stores overall have had a fantastic run against Wal-Mart Stores Inc., which caters to overlapping demographic groups. If both companies’ guidance holds through the end of this year, Dollar General’s five-year compound annual growth rate for same-store sales will have been 5.9%, while Wal-Mart’s will be just 0.3%.  In the next few years, though, that difference is seen narrowing.”  Read more

 

“Dollar General Releases Q2 Earnings today at 9am CST”  Listen to webcast

 

” ‘Walmart in DC’ bill stays with Mayor Vincent Gray – no decision made” by Justin Karp at ABC 7.  “The Washington Business Journal reports that Gray was once again noncommittal about his decision on the so-called Walmart bill as many groups called for him to veto it.  Gray received the bill on Friday – more than six weeks after it was passed by the D.C. Council – and has 10 business days to decide whether to sign it, veto it or send it back to the Council.”  Read & See more

 

“Whole Foods Market to open Englewood (Chicago) store in food desert” by Maudlyne Ihejirika at Chicago Sun-Times.  “The chain, which offers an affordable house brand of 2,000 products — the 365 Everyday Value and 365 Everyday Value Organic lines — opened a similar urban store in June in Detroit. That 21,000-square-foot, inner-city store is seeing profits.  “We’ve been very pleased with how it’s doing,” Robb said. “The proof’s in the pudding, isn’t it? In the end, if we open a store and work with the folks in that community, we certainly understand it has to be affordable.”  Read more

 

“Wegmans ends seasonal price freezes” by Tom Tobin at Democrat & Chronicle.  “In announcing the price-freeze list in 2011, Wegmans pledged to shoppers that it would not raise prices for them even if costs for the company escalated. That happened many times in the years since, especially in the fruit, produce and meat categories.  The discontinued price-freeze list contained 67 items, including meat, seafood, grocery, dairy, bakery, frozen foods and deli products. There were 14 seasonal produce items.”  Read more

 

“Petco Launches $15 Million Campaign, Company Transformation Effort” by Natalie Zmuda at Ad Age.  “Petco is handily outspent by rival PetSmart, which spent $94 million on measured media last year. Ms. Charles pointed out that, though it has a smaller budget, Petco seeks to better engage its customers through social media. Petco has 2.3 million fans on Facebook, compared to PetSmart’s 1.8 million fans. Petco also has more than double the number of followers of its rival on Instagram, though PetSmart is outpacing Petco by a few thousand followers on Twitter.”  Read & See more

 

“Hashtags Make Your Facebook Posts Less Likely to Go Viral” by Christina Chaey at Fast Company.  “EdgeRank Checker also found hashtagged Facebook posts were less effective at engaging fans and had lower organic reach than their hashtag-free counterparts.EdgeRank Checker’s findings on Twitter hashtags, on the other hand, showed tweets with hashtags had roughly double the likelihood of being retweeted than tweets without them.”  Read the full report

 

“Ace gives new look to the paint aisles” by Sandra Pedicini at Orlando Sentinel.  “Ace Hardware is changing its paint department and plans to give a sneak peek at its national convention next week in Orlando.  An Ace spokeswoman said in an email the new departments will create a “boutique-style shopping experience” and offer an expanded line.  Some stores will get the new paint sections this month, and most should have them by May.”  Read more

 

“5 reasons 3-D printing isn’t quite ready for prime time” by Clay Dillow at CNN Money.  “While cheaper printers, expiring patents, and a wider range of applications will certainly help drive the market — and perhaps even triple the value of 3-D printing’s nascent marketplace in the near term — a desktop manufacturing revolution this is not. Here are five reasons why.”  Read more

 

“Home Retail (UK) says CEO Duddy to quit by July 2014” at Reuters.  “After five straight years of profit declines, Home Retail is trying to reinvent Argos, its biggest business, for the digital age, targeting a 15 percent rise in sales by 2018.  Home Retail, which also owns the Homebase DIY chain, said on Wednesday Duddy, CEO for seven years, had informed the board of his intention to step down from his role by the next annual shareholder meeting on July 2, 2014.”  Read more

 

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Tuesday’s Eye-on-Retail Tipsheet: Sears Hometown Tumbles | Harris Teeter Fights Unions | Publix to NC

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“Sears Hometown profit tumbles 57%” at Chicago Tribune.  “The company, which spun off from Sears last year, earned $9.1 million, or 40 cents per share, off from $21.1 million, or 91 cents per share, a year earlier.  Revenue rose 2.2 percent, to $656.9 million, on a small increase in sales at established stores and a boost from new store openings.”  Read more

 

“Harris Teeter to employees: Let’s keep unions out” by Ely Portillo at Charlotte Observer.  “Harris Teeter’s top executives are warning the grocer’s employees about unions after its acquisition by Kroger Co., a supermarket company whose workforce is largely represented by the United Food and Commercial Workers union.  “Unfortunately, it appears the United Food and Commercial Workers Union (UFCW) is trying to take advantage of the merger to gain new members,” wrote Frederick Morganthall II, Harris Teeter president.”  Read more

 

“Publix taking fight to North Carolina” by Justine Griffin at Herald-Tribune.  “While most in the retail industry scaled back, focusing instead on existing stores and on maintaining profits, Publix Supermarkets surged ahead.  The Lakeland-based grocery chain, which has dominated the Florida market with keen customer service and aggressive marketing, is now updating older existing stores and expanding into new markets.”  Read more

 

“UK Online sales grow by 15% in August” by Chloe Rigby at Internet Retailing.  “Total retail sales grew by 3.6% in August, with like-for-like sales, stripping out the effect of store openings and closures, up by 1.8%. This, said Dickinson, was evidence of an uptick in consumer confidence.”  Read more

 

“Long CVS receipts spark social media sensation” by Taryn Luna at The Boston Globe.  “In one photo, a man holds up a CVS receipt so long it towers above his head. Another features a woman who jokingly uses the paper strip to keep track of her figure. She’s down to her target waistline: half a receipt.  The drug store chain’s remarkably long receipts — some, jammed with coupons, are said to reach 6 feet — have become a social media sensation, sparking more than 8,000 Twitter posts that range from gentle ribbings to scathing reproaches.”  Read more

 

“Argentina’s gargantuan knock-off mall: Heading to the U.S.?” by Ian Mount at CNN Money.  “It sits in a run-down neighborhood bordering a river fetid with industrial pollution. It’s full of rip-offs. Few of its vendors pay taxes. And it’s as chaotic as a Mad Max sequel.  At the same time, it is a successful ad-hoc solution to an economic collapse, a flat, direct-to-consumer model that provides desperately needed jobs, and it might just show the way to a brick-and-mortar version of Amazon. Moreover, as a middle class rises in developing countries like China, it offers a glimpse into the future of brands.”  Read more

 

“Has Tesco really created the supermarket of the future (UK)?” by Alex Johns at The Drum.  “As soon as you walk in you know it’s ticking that box in a big way, and that Tesco is really trying to make it different. This is the world of Tesco in front your eyes: you can have a great coffee at Harris + Hoole or grab a snack at Giraffe (which it acquired back in March); buy fashion from the new-look F&F or try the Euphorium bakery.”  Read & see more

 

“Bras in a Box and Netflix-Like Clothing Swaps? New Services Look to Disrupt Online Shopping” by Lauren Goode at All Things D.  “Free at-home try-ons. Subscription socks in a box. Monthly doggie treats. Robot-chosen bras. If “regular” online retailers were starting to disrupt brick-and-mortar stores 10 years ago, niche businesses like these now want to change the way we buy our clothes — and nab repeat customers in the process.”  Read more

 

“10 things Generation Y won’t tell you” by Jen Wieczner at WSJ.  “Millennials have grown into adulthood with some personality problems that the boomers lacked…including high rates of narcissism, materialism, unrealistically inflated expectations and a startling lack of independence. American college students scored 30% higher on the 40-item Narcissistic Personality Index in 2006 than they did in 1979, for instance, according to a study led by psychologist Jean Twenge of San Diego State University.”  Read more

 

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Friday’s Eye-on-Retail Tipsheet: Kroger Bad at Social | Wmart’s $50 Mil Loan | Loyalty Lie

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“The Loyalty Lie” by Doug Stephens at The Retail Prophet.  “Loyalty program members are not, in effect, any more or less loyal. What’s worse, according to the same study, is that 81% of loyalty program members don’t even understand what their rewards entitlements consist of or how they’re paid out, which shouldn’t be surprising, given that the survey also found the average consumer belongs to as many as 18 different loyalty programs!”  Read more

 

“Amazon Takes Tax Fight to Supreme Court” by Brad Stone at Businessweek via Mashable.  “Amazon clearly dislikes New York’s law. It’s confusing to customers and is easily circumventable by sellers. E-commerce startups can simply avoid authorizing any local affiliates, and Bezos most certainly doesn’t want some wily entrepreneur to do what he did and create the next Amazon. The company has already cut off its affiliates in New York, as well as in Illinois.”  Read more

 

“Entrepreneurs campaign for shelf space on Walmart website” by Victor Ocasio at Orlando Sentinel.  “Haygood is the inventor of Under Drawers, a lightweight alternative to under-the-bed storage containers. Finding the money to get her product manufactured required some risky decisions — such as mortgaging the house — which is why she hopes that, from among thousands of product pitches nationwide, Wal-Mart picks her invention to feature on its popular e-commerce website.  “It’s scary, but I think it’s going to really be well worth it,” Haygood said.”  Read more

 

“Wal-Mart ready to loan $50 million to Bangladesh factories” at MSN Money.  “Wal-Mart Stores Inc told investors on Thursday that it could provide up to $50 million in low-interest loans or other types of payments to Bangladesh factory owners for building improvements.  The money is part of the more than $100 million in loans and access to capital that a group of North American companies including Wal-Mart and Gap Inc pledged in July.”  Read more

 

“Target: What A ‘Sit On Your Hands’ Investment Looks Like” by Eli Inkrot at Seeking  Alpha.  “There’s always a reason to not like a company. Investments are risky, that’s why we’re compensating for partnering with even the best companies in the world.  Yet despite those reasons – along with the 17 other risk factors listed in the company’s 10-K – I’m about to ease those fears rather quickly.”  Read more

 

“Ben & Jerry’s new flavor: fancier stores” by Anne VanderMay at Fortune.  “Ellen Kresky is trying not to say anything bad about the old Ben & Jerry’s store design.  “Somebody said it best, I don’t remember if it was during the consumer research that we did or … no, I can’t say this — ” says Kresky, the brand’s creative director. Then she says it: “It felt to them that it was like walking into a children’s playground.”  Read more

 

“How Kroger uses Facebook, Twitter, Pinterest and Google+” by David Moth at Econsultancy.  “In the latest instalment of our series of posts looking at how major brands use social media I’ve decided to turn the spotlight on Kroger…it owns a number of subsidiary chains as well as its Kroger-branded stores…But as we shall see, its huge profit margins don’t necessarily translate into success in social.”  Read more

 

“Kroger To Webcast Second Quarter Conference Call With Investors” at WSJ.  “The Kroger Co. will host a conference call with investors on Thursday, September 12 at 10 a.m. (ET) to discuss financial results for the second quarter of fiscal 2013.”  Read more

 

“Mall developers feel the pull of Africa’s consumer boom” at Reuters.  “An industry veteran of 30 years, Barkan’s U.S. home market was “graying”, while the youthful, underdeveloped African continent offered a sweet spot, with a rapidly expanding middle class and no competition from online retailers.  “When Wal-Mart announced it was buying 51 percent of Massmart, I knew that if I was going to stay in business, Africa was where I had to go,” he said.”  Read more

 

“Grocery Retailers Embrace Multichannel Tech Tools” at eMarketer.  “A major area of interest for digitally minded grocers is increasing the ability of customers to interact with retailers through a variety of channels. The idea of ordering online and picking up in-store, once a rare experience, is quickly becoming the norm. The survey found that half of those polled already offered the service, and that more than half of those that didn’t yet have it planned to offer it within 12 months.”  Read more

 

“Retail loyalty programs add tiers to reward big spenders” by Kelli B. Grant at CNBC.  “When pretty much every retailer is offering a program with points per purchase, tiers offer that extra incentive to choose one over another, said Jeff Berry, senior director of knowledge development for LoyaltyOne. “It almost has become the overall scorecard for customers, so they understand where they are relative to where they could be,” he said.”  Read more

 

“Youngsters believe future of the UK high street store is as a showroom” by Helen Leggatt at Biz Report.  “Stores in the UK have had to close down through recession and, says Amaze, “due to massive changes in how people use technology”. According to the findings to date in their five year “Amaze Generation” study of 10-15 years olds and their use of technology, the high street has little chance of recovering in the wake of technology’s grip.”  Read more

 

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Have a great weekend!

 

Thursday’s Eye-on-Retail Tipsheet: Home Depot Peak? | Whole Foods Worry | Walgreens Sued

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“Industry Trends Might Not Favor Home Depot Much Longer” by Dan Moskowitz at Motley Fool.  “Many investors will point to a strong housing recovery in California as a major positive. However, a large portion of the housing boom in California has been thanks to investment firms (and foreign investors) buying properties, not families looking for starter homes or upgrading to larger dwellings. That being the case, the housing boom in California should be looked at with at least some skepticism when it comes to long-term sustainability.”  Read more

 

“The Home Depot To Present At Goldman Sachs Twentieth Annual Global Retailing Conference”  “The Home Depot today announced that Frank Blake, chairman and CEO, and Marvin Ellison, executive vice president, U.S. Stores, will present at the Goldman Sachs Twentieth Annual Global Retailing Conference in New York, NY. The presentation will begin at 11:20 a.m. ET on September 11, 2013.” Read more

 

“Wal-Mart promises more U.S. made products” by Carol Costello at CNN.  “CNN’s Carol Costello talks with a Wal-Mart executive about their plan to sell more U.S. made goods.”  See the video

 

“Is There a Reason to Worry About Whole Foods?” by Rich Duprey at Motley Fool.  “…And therein lies part of the problem for Whole Foods. Not only is there a wealth of choice for organic shoppers, but many of its rivals boast lower prices for their products. The “whole paycheck” brickbat hurled at the grocer is not unwarranted, and increasingly it has been forced to resort to promotional activity that could, if allowed to continue, undermine the rich margins it’s historically enjoyed.” Read more

 

“Wal-Mart to field questions on Bangladesh practices” at CNBC.  “Under scrutiny over a series of disasters at Bangladesh garment factories, Wal-Mart plans to field questions from investors at a briefing on Thursday, The Wall Street Journal reported on Wednesday.  Carol Schumacher, Wal-Mart’s vice president of global investor relations, told the Journal that the company’s goal was “to provide an update on this area of the business and to give you the opportunity to ask questions.”  Read more

 

“How a Giant Arrow Gets You to Eat More Fruits and Vegetables” by Kevin Drum at Mother Jones.  ““In retail, the customer tends to go to the right,” said Tim Taylor, the produce director for Lowe’s, Pay and Save, a regional grocery chain that let the scientists in to experiment with their arrows and mirrors. “But I watched when the arrows were down, pointing left, and that’s where people went: left, 9 out of 10.” Read more

 

“Walmart deal erases apartheid legacy” at Business Report.  ““Growing up we were very poor,” saus Kleynhans, 49.  Thanks to Wal-Mart Stores Inc.’s decision to import her wines, Kleynhans and her six sisters, who were once crammed into a two-roomed fisherman’s cottage along with her brother and parents, will soon make more money than ever.  “Maybe the time has come for us to be able to take a break and enjoy life,” she said.”  Read more

 

“Groupon takes aim at Amazon” at Portland Business Journal.  “Groupon Inc. is planning to open a network of North American warehouses that would directly compete with Seattle-based Amazon.com Inc.  The Wall Street Journal reports Groupon is planning a distribution center in Kentucky and adding additional centers.”  Read more

 

“Twitter Buys Trendrr to Track Social Conversations Across Media” by Cotton Delo at Ad Age.  “It’s the second major acquisition Twitter has made this year of an ecosystem company that conducted measurement and analytics on behalf of networks and brands around social conversations linked to TV. It reportedly paid $90 million for a former Trendrr competitor, Bluefin Labs, which was acquired in February.”  Read more

 

“Twitter is Hiring an Editor to Surface Vine’s Best Content and Creators” by Christina Chaey at Fast Company.  “Vine recently announced that it hit 40 million users, and now parent company Twitter is hiring its first editor to work on the app, which lets you create six-second stop-motion videos.  According to the job posting, the Vine editor’s primary responsibilities will be to discover and profile Vine’s best content creators and find new outlets to share the videos.”  Read more

 

“Missouri sues Walgreen Co. for deceptive pricing” by Kavita Kumar at St. Louis Post Dispatch.  “On Tuesday, Missouri Attorney General Chris Koster filed a civil lawsuit against the Deerfield, Ill.-based drugstore chain for engaging in what he called a pattern of false and misleading advertising and pricing schemes.  During a two-month investigation by his office, Koster said staff members visited eight Walgreens stores across the state, including two in the St. Louis region, and found that they were overcharged on about 20 percent of the items they purchased — or on 43 items out of 205 products.”  Read more

 

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Wednesday’s Eye-on-Retail Tipsheet: Target’s ‘immaterial’ Digital Sales | Tweet & Sell | Rite Aid’s Winning Strategy?

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“Web Sales Remain Small for Many Retailers” by Shelly Banjo & Paul Ziobro at WSJ.  “Target, for instance, has highlighted its online performance, telling investors last week that its digital sales have grown by double-digit percentages and that it is “moving quickly to ensure we stay relevant in an increasingly digital marketplace.”  Asked by the SEC to quantify its online results, the discount retailer said in June that “digital sales represented an immaterial amount of total sales.”  Read more

 

“Twitter hires former Ticketmaster CEO to lead online commerce” by Jessica Guynn at LA Times.  “Hubbard said in an interview that Twitter was aiming to “get people in the moment to buy and to act on their passions.”  “That to me is the opportunity. I look at Twitter as one of the greatest discovery and distribution platforms in the world,” he said.  He said Twitter would form partnerships with merchants and offer them tools to sell goods and services inside tweets.”  Read more

 

“I worry about JC Penney-Sears model: Retail pro” at CNBC.  “After the Bill Ackman blowup at J.C. Penney and another tough quarter at Sears, turnaround expert and entrepreneur Marcus Lemonis told CNBC on Tuesday he’s “not sure the market can handle both of them.” Read more

 

“Amazon Adds Ability to Buy Goods From Within Mobile Apps” by Danielle Kucera at Bloomberg.  ““Imagine a developer of a nutrition and fitness app can now offer their customers the ability to purchase vitamins, supplements and fitness gear within the app, directly from Amazon,” Mike George, Amazon’s vice president in charge of games, app store and cloud drive, said in the statement.”  Read more

 

“Commander-in-cheap: US is a bargain manufacturer” by Kiran Moodley at CNBC.  “According to the Boston Consulting Group, the U.S. is fast becoming one of the lowest-cost countries for manufacturing in the developed world…The report states that export manufacturing in the U.S. is a unsung hero of the economic recovery, noting: “Despite all the public focus on the U.S. trade deficit, little attention has been paid to the fact that the country’s exports have been growing more than seven times faster than GDP since 2005.”  Read more

 

“Why Wal-Mart Will Never Pay Like Costco” by Megan McArdle at Bloomberg.  “Costco has a tiny number of SKUs in a huge store — and consequently, has half as many employees per square foot of store. Their model is less labor intensive, which is to say, it has higher labor productivity. Which makes it unsurprising that they pay their employees more.”  Read more

 

“Consumer Reports Finds Private-Label Foods Often Meet Or Eclipse National Brands In Quality” at Sacramento Bee.  “CR’s expert taste-testers judged 33 of 57 store-brand foods to be as good as or better than the big name brand.  In categories such as ice cream, trail mix, mozzarella, mixed vegetables, and more, Consumer Reports found at least one store brand from the national grocers Costco, Kmart, Sam’s Club, Target, Trader Joe’s, Walmart, and Whole Foods that was equal in quality to the national brand.”  Read more

 

“Has Rite Aid Found a Winning Strategy?” by Robert Hanley at Motley Fool.  “Perhaps one of Rite Aid’s best moves was partnering with retail health giant GNC for store-within-a-store shops that leverage GNC’s strong brand name in the vitamins and nutritional supplements area. There are currently over 2,100 shops in Rite Aid’s national network, roughly 47% of its overall store base, with plans to roll out the format to additional stores in the future.”  Read more

 

“Retail Innovation Shines at Sears Startup + Developer Challenge” at WSJ.  “Sears announced the winners of its Startup + Developer Challenge, the retailer’s latest code-a-thon designed to foster digital innovations that further enhance the Shop Your Way member experience and strengthen the company’s long-standing relationships and develop new ones in the technology community of Silicon Valley. More than 150 participants competed over three days for the chance to see their application brought to life by Sears.”  Read more

 

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Tuesday’s Eye-on-Retail Tipsheet: Costco stays Big | Wmart Brakes in India | Five Below needs Brakes

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“Wal-Mart hits the brakes on expansion in India” by Andria Cheng at Market Watch via Financial Times.  “Wal-Mart, which has counted on overseas markets to grow, has suffered a setback and is putting its expansion in India on hold, the Financial Times reported.  Wal-Mart hasn’t added a wholesale, or so-called cash-and-carry, shop to its 20-store portfolio since late October, the FT reported, adding it opened its first such location in 2009 in a joint venture with New Delhi-based Bharti Enterprises.”  Read more

 

“Don’t Expect Smaller, Urban Costco Stores Anytime Soon” by Chris Morran at The Consumerist.  “Jelinek, who worked his way up from warehouse manager to President and CEO, explains that Costco’s goal is to maintain a certain level of simplicity.  “If you start to drift and become complicated, it costs you a lot of money to be complicated,” he says, adding that this higher cost would then have to be passed on to the customer through higher prices, which would defeat the purpose of operating a discount warehouse store.” Read more

 

“Five Below Might Be Growing too Fast” by Dan Moskowitz at The Motley Fool.  “Five Below continues to open stores at a rapid rate. In fact, it plans on opening 60 stores this year. But what might really blow your mind is that Five Below wants its store base to grow at a rate of 20% annually over the next five years, and it ultimately plans on reaching a store count of 2,000. Remember, there are currently just 258 stores.  Five Below relies on hot teen and pre-teen trends, and almost everything it sells is discretionary.”  Read more

 

“Whole Foods & Starbucks Team-Up” at WSJ.  “Whole Foods will begin stocking 12 Evolution Fresh juices and three Evolution Harvest snack bars Tuesday. The snack line will eventually expand to include trail mixes, freeze-dried fruit and fruit snacks, opening up an opportunity for growth in a popular segment.”  Read more

 

“Mobile Commerce Sales Top $10 Billion in First Half of 2013, comScore Estimates” by Jason Del Ray at All Things D.  “The $10.6 billion total still accounts for less than 10 percent of total digital commerce sales, though the first iPhone was released just six years ago.” Read more

 

“How Do Target Cartwheel Coupons Work” at My Sweet Savings.  “The Target Cartwheel offer is taken off AFTER manuf. coupons and Target coupons.  Target Cartwheel offers may be used up to 6 times per day. You may use Target Cartwheel offer in conjunction with your manuf. coupons AND Target coupons for a triple stack! If you have a Target Red Card you may use that as well!”  Read more

 

“Home is where the spending is for cost-conscious consumers” by Matt Townsend & Cotten Timberlake at Bloomberg via Seattle Times. “Shannon Burke is typical of many American shoppers these days. She’s pouring money into her home and cutting back on everything else.  “If we don’t need it, we don’t buy it,” said Burke, a 33-year-old mother from Abington, Mass., whose two kids are mostly making do with hand-me-downs. “The money can be spent on our home. The more valuable our home is, the better it is for us in the long run.”  Read more

 

“Penney’s largest investor to sell entire stake” at LA Times.  “The news sent its shares down nearly 3 percent to $13 per share in after hours-trading after closing down 15 cents to $13.35 in the regular session.  The latest development comes as the beleaguered chain is trying to recover from a botched transformation plan spearheaded by its former CEO Ron Johnson that led to disastrous financial results.”  Read more

 

“Best Buy Founder Schulze Plans Stock Sale to Diversify Assets” by Chris Burrit at Bloomberg.  “Shares of Best Buy have doubled in the past year after Chief Executive Officer Hubert Joly, who took charge in September, matched rivals’ online prices and cut annual costs by $390 million through Aug. 3…“The guy’s net worth has doubled in the past year,” said Michael Pachter, an analyst at Wedbush Securities in Los Angeles. “Why not take some off the table?”  Read more

 

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Monday’s Eye-on-Retail Tipsheet: Walmart’s SPARC 2.0 | H.Depot’s China Graveyard | Whole Foods Sells LPs

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“Wal-Mart suppliers get tutorial on SPARC 2.0” by Kim Souza at The City Wire.  “SPARC – the Supplier Portal Allowing Retail Coverage initiative – is being broadly rolled out by Wal-Mart during the next six weeks at roughly 150 stores a day in an effort to raise on-the-shelf availability of products sold by the retailer. Mike Graen, director of strategy and innovation for Wal-Mart, spoke candidly to a room full of suppliers who agreed that one of the most frustrating issues they face is products out-of-stock.”  Read more

 

“Touring the Home Depot Graveyard in China” by Trevor Williams at Global Atlanta.  “Although one store has been demolished to make way for a mall, most of the shuttered stores still sit empty, eerily frozen in a time when one was the scene of a “hostage situation.” Confirmed by Home Depot CFO Carol Tome, Chinese media have reported that a few of Home Depot’s 850 employees used cars to block doors, locking company leaders in for 80 hours after being abruptly informed of the store closings.”  Read more

 

“Walmart Campus Store #3:  Report from Georgia Tech” by Lindsay Purcell at Technique.  “Tech was chosen, in part, because of Walmart’s connection with Tech, as the CEO of Walmart, Mike Duke, is a Tech alumni.  “In this case, the city of Atlanta and Georgia Tech have close ties to executive leadership at Walmart which may have generated interest in making our store one of the first to open,” Steele said…“The performance of the Tech store will be watched closely by Walmart Executives to determine if the format has legs… I expect to see Walmart expand this concept further onto college campuses, in urban areas, etc. Walmart Campus stores seem to make a lot of sense on the surface,” Long said.”  Read more

 

“Lowe’s Discovers Vine ‘Celebrity’ “ by Shareen Pathak at ad Ad Age.  “Twitter’s Vine platform is birthing a new generation of celebrities that brands are latching on to, paying out anywhere between four-figure and five-figure sums for a six-second piece of content.  One of those “celebrities” is photographer and director Meagan Cignoli, who was “discovered” by home improvement retailer Lowe’s when the company was hunting for someone to direct videos for a Spring campaign called #FixinSix, which showed home improvement tips via Vine.”  Read more

 

“Whole Foods Is Selling LPs Now” by Lily Hay Newman at Gizmodo.  “Whole Foods has begun selling vinyl at five locations in and around LA, including West Hollywood, Santa Barbara and Venice…Whole Foods says that they will stock a “wide selection” of LPs from Frank Sinatra to Daft Punk and Bob Marley. The records are being marketed alongside LSTN headphones, the purchase of which helps hearing impaired people through the Starkey Hearing Foundation.”  Read more

 

“The end of the dollar store recovery” by Nin-Hai Sing at Fortune.  “Dollar stores were one of the few bright spots in U.S. retail during the Great Recession as cash-strapped consumers looked to do more with less. And while many are still going to these discounters for bargains, they’re also buying less.”  Read more

 

“Marketers drool over Pinterest ad potential” at News-Press.  “Lowe’s has 3.6 million followers on Pinterest and has been watching Pinterest’s Rich Pins feature, which allows pinners to post more specifics on products, such as dimensions and prices.  Pinterest is being “really smart about how they’re evolving the product,” says Brad Walters, Lowe’s director of social media. “We would consider” an advertising platform from Pinterest if it were an option.”  Read more

 

“Wal-Mart Opening 90 Stores In Africa” at Value Walk.  “Wal-Mart is looking to enter hot growth markets, such as Nigeria and Angola. Both countries have been enjoying an oil boom, which has supported strong economic growth over the last few years. The aggressive expansion plan follows Walmart’s 2.4 billion dollar acquisition of MassMart, a major big box retailer in South Africa. Given Walmart’s track record in other emerging nations, such as Mexico and China, investors have good reason to feel optimistic.”  Read more

 

“Accenture study reveals disconnect between CIOs and CMOs” by Marianne Wilson at Chain Store Age.  “Despite CIOs appearing more open to engaging with CMOs, only 45% of CIOs say that supporting marketing is near or at the top of their list of priorities…while CMOs claim that gaining customer insight is their number one motivator for collaborating with IT, CIOs rank this tenth on their list of reasons to work together. CIOs’ top motivation for collaborating is to improve the customer experience, which CMOs rank as their third most important motivator.”  Read more

 

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