Tuesday’s Eye-on-Retail Tipsheet: Dollar Gen. to Buy Fam. Dollar? | Wmart’s 3rd Campus Store | Sell-in Tips

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“Will Dollar General Buy Family Dollar?” at Charlotte Observer.  “A deal for Dollar General buying Family Dollar would make “compelling strategic sense,” said a Credit Suisse analyst last week. Tennessee-based Dollar General could pay between $90 and $100 a share for Family Dollar, a significant premium to its $71.XX closing price on Friday. And a Citigroup analyst said last month that the chances of a Family Dollar buyout are 50-50.”  Read more

 

“Walmart to Open Third Campus Store Tomorrow in Atlanta” at The Shelby Report.  “Walmart will open its third “Walmart on Campus” store on Aug. 14 at Georgia Tech in Atlanta.  The Campus concept is the Bentonville, Ark.-based retailer’s smallest format and resembles a convenience store.  The approximately 2,500-s.f. Georgia Tech Campus store will be at 86 5th St. in Midtown’s Technology Square.”  Read more

 

“How to Get Your Product on Shelf with Major Retailers” by Kim Souza at The City Wire.  “With recent layoffs at Lowe’s and a push from other retailers for more local sourcing, Long said buyers are being saddled with more product items and work than before, so getting a meeting can be a quite a challenge.  These efforts like “buying days,” supplier fairs or crowd-sourcing with Wal-Mart are interesting ways potential suppliers can get exposure for their products, he added.”  Read more

 

“Use the Target Cartwheel app for extra in-store savings” by Nicole Kozma at CNET.  “When Target first launched its Cartwheel program with Facebook, I thought it was interesting, but clumsy. The service wasn’t integrated into the existing Target app, and it also wasn’t easy to find through Facebook. There was no standalone app, which meant that you had to type in a Web address every time you wanted to select deals or redeem savings in the store.  Now there’s a standalone app that lets you select up to 12 offers, and then easily get your discounts at the store.”  Read more

 

“Lowe’s: Will The Good Times Continue?” at Seeking Alpha.  “Lowe’s has been very proactive and has made great strides in trying to reach “creators” – the company’s term for customers who are seeking ideas for new home improvement projects. Lowe’s has spent a great deal of time in identifying the purchasing process, from idea creation to project completion. Initiatives such as online tools and monthly project-idea focused pamphlets seem to have had an impact on “creators.” Lowe’s aggressive marketing to this demographic has helped take the lead over Home Depot.”  Read more

 

“Pay per click marketing could be at an end for retailers if they co-operate with each other” by Paul Skeldon at Internet Retailing.  “According to Lukies, businesses are spending an increasing amount of money on advertising, whereas they could do better by looking at how, by working together, they could move from a pay-per-click marketing model towards a pay-per-purchase model. To do this, he says, retailers, banks and operators need to leverage their individual strengths around how they interact with consumers to offer a better model for retailers.  Read more

 

“Activist investor Bill Ackman resigns from JC Penney board” at CNBC.  “Ackman’s resignation appears to be part of a deal in which Ronald Tysoe has been elected to the board and another “highly qualified” new director will be added later.  Tysoe spent 16 years as Vice Chairman of Federated Department Stores. The company is now named Macy’s.”  Read more

 

“Ad Groups Warn Of Potential Ad-Tax Deduction Threat” by Ana Radelat at Ad Age.  “Dan Jaffe, top lobbyist for the Association of National Advertisers, said that there are proposals under consideration in both the House and Senate that would affect the ability of businesses to expense advertising fees for tax purposes. Mr. Jaffe said a prevalent idea is to allow a business to expense advertising costs — but not fully in the year the expense is incurred, but instead, over a number of years.”  Read more

 

“More than half of mobile shoppers abandon their carts at checkout as they don’t feel comfortable” at Internet Retailing.  “Despite mobile commerce delivering some 15% of online retailing globally, two thirds of mobile shoppers abandon their carts at checkout, a worrying study by Jumio has revealed.  According to the research, 51% abandon their cart because they don’t feel confident in actually making the purchase, while 47% give up because the checkout process is perceived as too long. 23% more give up because the purchase doesn’t go through, says the study.”  Read more

 

“Business Q&A: Dollar General executive Bob Ravener pays it forward” by Chambers Williams III at The Tennessean.  “How did you wind up at Dollar General?    I knew something about Dollar General, but not a lot. But the story line intrigued me a lot, including that KKR had brought in a new CEO, Rick Dreiling.  I said I would go talk with them, and all it took was one meeting with Rick and I knew this was the place I wanted to be. Rick just had that exuberance, that style, that leadership trait that I said to myself, “This is going to be successful.” Read more

 

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Monday’s Eye-on-Retail Tipsheet: H.Depot’s Privacy Concerns | Walmart & Pet Insurance | Sam’s Snowden Problem

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“Rona restructuring hampered by weather and cautious consumers” by Marina Strauss at The Globe & Mail.  “Rona Inc. is sparring with major home improvement retail rivals in a battle that has seen U.S. heavyweight Home Depot Inc. emerge as a winner as they all grapple with cautious home renovation spending.  Under new leadership, Rona is now racing to close unprofitable outlets, shrink its work force, restock shelves and lower some prices.”  Read more

 

“Snowden’s Saga May Impact Flower Sales at Sam’s Club” by Ben Pollock at The City Wire.  “Ecuador renounced a trade pact with the U.S. in late June and U.S. lawmakers allowed the treaty to expire before taking their recess Aug. 2. Without the treaty, tariffs on certain Ecuadoran goods will rise, as high as 14.9% for broccoli and 6.8% for certain types of flowers…According to SamsClub.com, there are 442 different flowers for sale. Some 85% of the roses listed on the site is sourced from Ecuador. There were 62 different varieties of Ecuadoran roses on the site. Other roses offered were predominantly from Colombia.”  Read more

 

“Home Depot, Best Buy Data Collection Stirs Privacy Concerns” by Jennifer Kerr at AP via Star Tribune.  “It’s not just the government that might be keeping tabs on you. Many retailers are tracking you, too — or at least your merchandise returns…Consumer advocates are raising transparency issues about the practice of having companies collect information on consumers and create “return profiles” of customers at big-name stores such as Best Buy, J.C. Penney, Victoria’s Secret, Home Depot and Nike.”  Read more

 

“Wal-Mart Africa Unit Massmart Looks at Kenyan Acquisition” by Eric Ombok at Bloomberg.  “Massmart Holdings Ltd., South Africa’s biggest food and household-goods wholesaler, said it has met “several important players” in Kenya’s retail industry as the unit of Wal-Mart Stores Inc. seeks expansion abroad.  “Massmart’s interest in investing in Kenya is well known,” Chief Executive Officer Grant Pattison said in an e-mailed response to questions. “We don’t however, comment on acquisitions, potential, speculative or otherwise.” Read more

 

“Wal-Mart’s backyard is a hotbed for startups” by Parija Kavilanz at CNN Money.  “”Silicon Valley is great for the tech world. [But] if your business deals with retail or consumer products or supply chain logistics, then this is the place to be,” said Ho.”  Read more

 

“Lowe’s Vine Account Has The Best Home Lifehacks Ever” by Michelle Manetti at Huff Po.  “That’s right, the company has created amazing (nearly) 6.5 second videos showing you how to do things like repurpose PVC pipes, keep extension cords tidy and remove a broken light bulb with a potato.  Apparently these were a part of a clever campaign and there hasn’t been a new one uploaded in a month. But we’re hoping this isn’t the end of them, because these tips are awesome. We rounded up five of our favorites:”  See the videos

 

“Orchard Supply Hardware on Pace toward Completing Sale to Lowe’s”  “In order to be considered under the bidding procedures approved by the Bankruptcy Court, any competing bidders would have needed to submit qualifying bids before 4 p.m. Eastern Time on Friday, August 9, 2013. Orchard engaged in discussions with a number of potential buyers but did not receive any qualifying bids in advance of this deadline. Accordingly, the auction previously scheduled for August 14, 2013 will not be held. Orchard will now move forward to have the sale to Lowe’s approved by the Bankruptcy Court on August 20, 2013, and completed by the end of August.” Read more

 

“Tesco opens new shopping & leisure destination (UK)” by Gemma Balmford at Retail Focus.  “Watford Extra features a number of new concepts currently being trialled by Tesco, including a new-look general merchandise area focusing on Homeware, and Cook and Dine, a community space that customers can use free of charge for events such as yoga, baby gym and cookery classes, and a new F&F concession with a boutique look and feel.”  Read & See More 

 

“Tesco may merge supermarkets and hypermarkets in China” at Retail-Digital.  “British retailing giant Tesco is in talks with China Resources Enterprise or CRE to merge their supermarkets and hypermarkets in China. If the deal is sealed, it will see Tescos 131 stores and shopping malls in the country combine with CRE’s over three thousand stores.” Read more

 

“Wal-Mart dips into pet health insurance” by Anna Adrianova at CNBC.  “The sector should also benefit as more companies add pet insurance to their portfolio of employee benefits, said Kristen Lynch, executive director of the pet health insurance association.Earlier this year, retail giant Wal-Mart Stores began offering pet insurance to its customers in select stores in Canada, Lynch said. Walmart Pet Health Insurance is offered and underwritten by Western Financial Insurance.”  Read more

 

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Friday’s Eye-on-Retail Tipsheet: Walmart Loves Beer | “Frugality Fatigue” | Best Buy’s Bad Website

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“Wal-Mart versus Amazon: Price isn’t everything” by Kim Souza at The City Wire.  “Wal-Mart, Walmart.com and Amazon were recently part of an annual pricing study that looked a full basket of goods – Wal-Mart’s supercenter offered the greatest value with a total price of $853.08. The identical products cost $924.74 at Walmart.com, some 8% more expensive than at the supercenter. Shoppers who purchased the same basket at Amazon would have paid $985.49, which was 7% more expensive than Walmart.com and 16% more costly than at the supercenter.”  Read more

 

“Retailers appeal to back-to-school shoppers online” by Tiffany Hsu at LA Times via Seattle Times  “Although shoppers are still price-conscious, some have what NPD analyst Marshal Cohen calls “frugality fatigue.”  “Instead of living on a tight budget every day, consumers are feeling a little more comfortable and confident,” Cohen said. “In a big change since the recession, parents are letting their kids have a say” in what they buy.”  Read more

 

“Wal-Mart’s New Goal: Sell All the Beer” by Susan Berfield at Businessweek.  “When Wal-Mart began buying a greater number of locally grown fruits and vegetables in 2010, it made sure its efforts got plenty of publicity. But when Walmart decided it wanted to double its alcohol sales by 2016, it didn’t exactly issue a press release.  Customers noticed, and those in the alcohol industry—or, as Walmart prefers, the adult beverage business—certainly took note of the change. “They’ve said they want to be the No. 1 beer seller in the world” Read more

 

“Best Buy Works to Get Its Website Up to Snuff” by Ann Zimmerman.  “The struggling e-commerce site is a particular problem given that online sales in general have been growing at three times the rate of bricks-and-mortar sales for years. Twenty-one percent of all electronic gadgets sales now occur online, a number expected to increase to 23% in 2013, according to Forrester Research.”  Read more

 

‘What Target’s Recent Acquisitions Are Really About” by Tamara Rutter at Motley Fool.  “Target’s not even one of the top 10 largest online retailers in the United States today, despite generating annual retail sales of $72 billion last year. Moreover, Target is currently the 18th largest online retailer in the U.S., according to InternetRetailer.com. However, integrating e-commerce sites such as Cooking.com, DermStore.com, and DermStore’s hairenvy.com and blush.com should help Target grab a larger chunk of online retail sales down the road.”  Read more

 

“Target downgraded, Canada cited as key to earnings” by Jonathan Ratner at Financial Post.  “Wal-Mart invested another $450-million into 37 new supercentres, Sobey’s acquired Safeway’s Canadian assets (213 supermarkets) in June, Loblaw bought Shoppers Drug Mart (1,200 locations) in July, and Costco stepped up its pricing efforts.”  Read more

 

“Less Than A Third Of Top CEOs Are On Social Media” by Susan Adams at Forbes.  “According to the study, only 32% of top CEOs have at least one account on a social network. Some 68% have no social presence at all.  Not surprisingly, CEOs are most active on LinkedIn. Some 27.9%, or 140 CEOs, have LinkedIn accounts. That’s up from 25.9%, or 130, a year ago. In fact LinkedIn is more popular with CEOs than with the general public.”  Read more

 

“Earnings preview: What to look for from Wal-Mart” by Courtney Reagan at CNBC.  “The world’s largest retailer reports earnings Thursday morning before the opening bell. Beyond the total profit and revenue results, the number to watch for in Wal-Mart’s earnings release is U.S. same-store sales. Analysts are looking for uninspiring growth of 0.7 percent in the U.S. and 1.1 percent overall, according to Thomson Reuters. The discount chain’s U.S. same-store sales in the first quarter dropped for the first time since summer 2011.”  Read more

 

“Canadian Tire Q2 profit rises to $155 million” at Montreal Gazette.  “Retail sales from both corporate and franchised stores totalled $3.56 billion, up 2.1 per cent from $3.48 billion.  The company’s retail segment accounted for most of Canadian Tire’s revenue but its financial services business accounted for $254.2 million of revenue, up 4.8 per cent from $242.5 million in the second quarter of 2012.”  Read more

 

“Ackman pushes J.C. Penney to speed up CEO search” at Reuters.  “Ackman, frustrated by the slow pace of the CEO search, also told fellow Penney board members that Allen Questrom, a former Penney CEO, would return as chairman if the department store operator chose a new CEO he liked.  “The CEO search process, which began in earnest three weeks ago, will be careful and deliberate to ensure we find the right long-term leader for J.C. Penney,” Thomas Engibous, Penney’s current chairman, said on Thursday evening.”  Read more

 

“Tesco pulls back in China with Vanguard deal” at Reuters.  “”Tesco has been struggling in China and has been losing money. Similar to Carrefour, they had issues in their home market which they had to resolve,” said one Hong Kong-based M&A banker.  “This may look win-win, but in reality, Tesco is saying ‘I can’t figure out China’,” he said.”  Read more

 

 

Thursday’s Eye-on-Retail Tipsheet: “Walmart’s Worst Nightmare” | Respect the Pawnshop | Costco Sales Miss

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“Meet the Low-Key, Low-Cost Grocery Chain Being Called ‘Walmart’s Worst Nightmare’ “ by Brad Tuttle at Time. ” “WinCo arguably may be the best retailer in the Western U.S.,” Flickinger says while touring a WinCo store. “WinCo is really unstoppable at this point,” he goes on. “They’re Walmart’s worst nightmare.”  Flickinger isn’t the only industry insider discussing WinCo and Walmart in the same breath. “While many supermarkets strive to keep within a few percentage points of Walmart Stores’ prices, WinCo Foods often undersells the massive discount chain,” the industry publication Supermarket News explained last spring.” Read more

 

“Twin Cities pawnshops give discount retail a run for its money” by John Ewoldt at Star-Tribune.  “David Andrews has added another option to his shopping rotation: pawnshops.  The Osseo resident discovered recently that some of them are supplementing their usual assortment of guitars, TVs and jewelry with new merchandise purchased from liquidators.  Andrews has picked up a river raft, kayak and a Charbroil grill at 70 percent savings at Excel Pawn locations in Maplewood and Champlin.  “I’m a Costco member, too,” he said. “But I’m saving another 30 or 40 percent off the discounters’ clearance prices at pawnshops.”  Read more

 

“Costco July same-store sales miss estimates” at Reuters.  “Sales at stores open at least a year rose 4 percent in the four-week period ended August 4, including the impact of fuel and foreign exchange.  On that basis, analysts expected same-store sales to rise 5.1 percent for the month of July, according to Thomson Reuters data.”  Read more

 

“Coupon Use Made Easier at Costco, a Win for Consumers and for Costco” at 24/7 Wall Street.  ““Under the old format, there were three types of coupons provided in the Costco coupon mailer – instant savings, online-only, and manufacturer’s coupon…Here are the changes that have been made in the coupon policies: 1) Customers no longer need to cut out manufacturer’s coupons to take advantage of the cost savings, 2) Customer’s can present a copy of the mailer, which under the new format, has a Master Bar Code on the first page which can be scanned to take advantage of all non instant savings and 3) Customers also have the option of using a barcode on their Costco app on their smartphones.”  Read more

 

“Meijer ending double coupons” by Alexander Coolidge at Mason Buzz.  “The Grand Rapids, Mich.-based retailer began informing shoppers with posted signs on Sunday and via Facebook. Meijer officials said they would use money saved from ending the program to offer better deals in its mPerks digital coupon program. “We are shifting our resources,” said spokesman Frank Guglielmi. “Less than five percent of Meijer customer used double coupons, but more than 1.5 million have signed up for mPerks.”  Read more

 

“Then & Now: Target’s Store Design Philosophy” via target.com.  “In 1975, Target introduced the “racetrack” store prototype to ensure a consistent experience from store to store, no matter the location. One main aisle circles the store, with additional aisles running through the center and the perimeters, allowing for more space to display product. Target also debuted the first planogram, a “map” that helps store teams present clean, uncluttered merchandise displays.”  Read & see more

 

“Is Airbnb The Next eBay, Uber The Next Amazon?” by Tomio Geren at Forbes.  “That gives Airbnb a leg up on a whole new market as the biggest company in this sector. While Airbnb currently focuses on sharing homes and other spaces for travelers, Airbnb could partner with service providers such as restaurants, retailers and artisans to help travelers. (Airbnb already has been testing a program called Local Lounges in San Francisco cafes that provides WiFi and other help for travelers.) And Airbnb could also expand into other product verticals such as furniture or clothing.”  Read more

 

“What Product Categories Generate Most Volume In A Grocery Store?” at Forbes.  “Generally, the average supermarkets “cutout” of total sales breaks down as 50% in grocery (the stuff in the aisles and on displays), 15% in dairy and frozen foods, 10%+ in produce/floral, 10% in meat, 4% in deli and fresh bakery, and the balance in general merchandise/health & beauty care/Rx and wine/liquor and beer.”  Read more

 

“Facebook Takes on Twitter by Courting Celebrities, Building Twittery Tools” by Peter Kafka at All Things D.  “Facebook has been ramping up its efforts to get more famous people using the site. In recent months it has bulked up a global team tasked with courting and hand-holding stars; in some cases, it offers incentives for those who post…In other words: Facebook is acting more like Twitter.  Read more

 

“J.D. Power: Lowe’s is No. 1 in Appliance Retailer Customer Satisfaction” at Appliance Magazine.  “It was the fourth year that Lowe’s ranked No. 1.  Sears ranked No. 2 and The Home Depot ranked No. 3.  The study also identified the primary reasons that shoppers were buying a new appliance:  42% were replacing a broken or defective appliance, 32% were upgrading existing appliances or remodeling and 20% were buying a new appliance because they moved to a new home.”  Read more

 

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Wednesday’s Eye-on-Retail Tipsheet: Walmart Weighs Grocery Bid | Target Buys Skin-Care Firm | Walgreen’s Cough Syrup & Sushi

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“Wal-Mart weighs bid for Li’s Hong Kong supermarket chain” at Reuters.  “Wal-Mart, the world’s largest retailer, is working with a bank as it weighs its options for ParknShop ahead of next week’s preliminary bid deadline..Last year, Wal-Mart announced plans to open 100 new stores in China over the next three years and create 18,000 jobs in an effort to boost its mainland China business. Wal-Mart opened its first China store in 1996 and now operates over 380 stores spread across various formats, including Supercenters, Sam’s Clubs and Neighborhood Markets.”  Read more

 

 “Target buys beauty and skin-care firm DermStore Beauty Group” by Steve Alexander at Star-Tribune.  “DermStore, based in Louisville, is a 14-year-old firm that operates DermStore.com, which offers about 750 brands of skin-care products. The company also owns HairEnvy.com and Blush.com, which sell hair-care products and cosmetics, respectively.  The websites will continue to operate separately from Target under their own brand names and DermStore will become a wholly-owned Target subsidiary.”  Read more

 

“Walgreens: Come for the cough syrup, stay for the sushi” by Carl O’Donnell at Philly Bus. Journal.  ” “It’s so pretty. I want to move here,” said one customer.  Why is Walgreens, which has been a pharmacy for over a century, expanding its other lines of business?  The reasons are several, say industry experts. Walgreens’ competition has tightened in recent years, said Eric Keuffel, assistant professor at Fox School of Business. The big players in the industry have consolidated, gobbling up independent stores in the process.”  Read more

 

“Walgreens July Comps. Up 6.3%” at RTT News.  “Total front-end sales went up 3.6 percent year-over-year, while comparable store front-end sales rose by 2.3 percent. Customer traffic in comparable stores slid 1.2 percent, whereas basket size increased 3.5 percent.” Read more

 

“Private Label Packaging Playing an Essential Role in Retailer Brand Strategies” by Kate Bertrand Connolly at Food Processing via @PhillipRussoPOV.  “Changes in the retail environment, supply chain and consumer preferences have paved the way for today’s private label designs…Rather than mimicking the packaging of national brand owners, “Retailers [are] partnering with manufacturers to innovate and create unique and differentiated items and trying to be first to market versus second or third,” Maute adds. That “has a significant impact on the strategic value of the package.”  Read more

 

“Where’s Did All the Mall Shoppers Go?” at CNBC.  “Wall Street braced for a possible ricochet effect on retailers after American Eagle Outfitters slashed its guidance and teen retail stocks plunged…Of particular concern to Lazard Capital Markets analysts is the decline in overall mall traffic, which the retailer said led to more promotions and markdowns to get rid of inventory. This trend of fewer shoppers at the mall could hit retailers more broadly, analysts said.”  Read more

 

“Online Retailers Gained, While Brick-and-Mortar Lost In Wake of Borders Exit”  “Women increased their lead over men in book buying, accounting for 58 percent of overall book spending in 2012, up from 55 percent in 2011. However, men are bigger hardcover buyers – the only area where their buying outpaces women’s…Ebooks continue their steady upward trend, with an 11 percent share of spending in 2012, compared to seven percent in 2011.”  Read more

 

“Small apparel stores adapt to big competition from U.S. chains” by Jenny Lee at The Vancouver Sun.  “Macy’s is already offering coupons on customers’ mobile devices as they walk into a store, Pilkington said. “Think of that Walmart customer whose dad called to complain to the company for sending pregnancy-related coupons to his young daughter who unbeknownst to him, was pregnant.”In-store digital tracking is also gaining ground. Stores are tracking consumer’s mobile devices as they shop. Spending 30 minutes in the shoe section may soon trigger a discount coupon direct to smartphone.”  Read more

 

“What Michael Kors Knows: No Woman Is Too Fat for a Nice Handbag” by Susan Berfield at Businessweek.  “Revenue at stores open at least a year, a key indicator of a retailer’s health, rose 27 percent. In North America, that sales growth figure was 25 percent; in Europe, 56 percent. After its IPO, the stock traded around $25. After its latest earnings call, shares traded at about $70…As Kors told Bloomberg News: “They have no size, no age. You could feel you are having a fat day, and you can still wear accessories.”  Read more

 

“Fast Feeders Borrow Brand Equity From the Grocery Aisle” by Maureen Morrison at Ad Age.  “Although co-branded products are nothing new to the food industry, fast-food marketers seem to think there’s a fresh opportunity to with new or limited-time items featuring other brands. Here’s are some of this year’s rollouts…See the list

 

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Tuesday’s Eye-on-Retail Tipsheet: CVS Profit Up | Bezos Buys Post | Best Buy Shaving Ranks

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“CVS Caremark quarterly profit rises as sales up in both units” at Reuters.  “CVS Caremark Corp posted a higher second-quarter profit on Tuesday, helped by its pharmacy benefits management business, where sales growth narrowly outpaced that of its drugstores.  The drugstore and pharmacy benefits management company earned $1.12 billion, or 91 cents per share, up from $966 million, or 75 cents per share, a year earlier.”  Read more

 

“Immense influence goes with Bezos’ Washington Post purchase” by Brier Dudley at Seattle Times.  “Perhaps this explains why President Obama flew to an Amazon.com distribution center in Tennessee last week to announce his latest jobs plan.  It was an odd place to highlight economic opportunities for America’s middle class.  Odder still was the president’s decision to then distribute an interview on the topic through Amazon’s Kindle platform.  But perhaps the president was already working an angle with the new owner of his hometown newspaper.”  Read more

 

“How to Spend $25 Billion the Jeff Bezos Way: Newspapers, Rockets and 3-D Printers” by Jason Del Ray at All Things D.  “The firm’s investments have included bets on big-name disruptors, such as Twitter, Uber, Airbnb and Makerbot, as well as a cash infusion in digital media company Business Insider.  Among Bezos Expeditions’ less sexy investments: MFG.com, an online exchange for manufacturers and suppliers; Domo, a business intelligence software startup from Omniture co-founder Josh James; and Qliance, a medical clinic startup.”  Read more

 

“Best Buy quietly shaving its ranks at headquarters” by Thomas Lee at Star Tribune.  “Several Best Buy employees said the climate can be tense at the company’s headquarters, especially on Tuesdays.  “Whenever someone leaves their desk, we think that person just got laid off, when he or she might just be going to the bathroom,” said one surviving employee who requested anonymity because the individual was not authorized to speak to the news media.”  Read more

 

“Walmart’s Scan & Go Change Reminds Us How To Make Mobile Work” by Evan Schuman at Storefront Backtalk.  “In the latest upgrade to the chain’s Scan & Go mobile payment/self-checkout hybrid, Walmart takes this all-knowing tactic to the next level, giving shoppers a reason to scan physical receipts.  At its most simple level, the upgrade merely allows shoppers to scan physical receipts from Walmart (more precisely, to scan the QR codes printed on such receipts) to receive an electronic version. For the shopper, it’s a nice way to reduce paper clutter and also organize purchases in one place. For Walmart, though, it’s much more.”  Read more

 

“TJ Maxx, Saks’ outlets Unveil Online Stores” at CNBC via Reuters.  “Low-price retailer T.J. Maxx plans to open an online store this year, as does rival Saks’ Off Fifth outlets, making 2013 the year technology may have caught up with the speed of fashion.  For such chains, which feature clearance items, last-year’s fashions and overruns, their fast-moving and often unpredictable inventory has made selling goods over the web complex.”  Read more

 

“AT&T’s Retail Revamp Goes for a Genius Bar Look” by Keenan Mayo at Businessweek.  “The new look appears to be a blatant knock-off of the successful “retailtainment” calculus popularized by Apple Stores, with modern design, hip and mobile staff, and sales transactions sans cash-register. AT&T’s overhaul, which the company intends to expand to more of its 2,300 stores by 2014, is being described as an effort to emphasize the customer experience over sales.”  Read more

 

“Whole Foods CEO tells Bloomberg new Detroit store ‘exceeding our wildest expectations’ “ by Tanya Moutzalias at Mlive.  “Whole Foods Market Co-CEO Walter Robb told Bloomberg that “the store is exceeding our wildest expectations.” He added that the store is serving a “wide area of the community.  “A lot of things we hoped would work (in Detroit) are working, and I just couldn’t be more pleased with that, particularly at a time when the narrative about the city is so negative. I have to tell you, there is just a lot positive about that community.”  Read more

 

“easyShopping: Stelios moves into food retail market (UK)” at Herald Scotland.  “He said: “I have a feeling that there is a gap in the food retail market – a niche below some of the current budget operators such as Aldi and Lidl.  “Concentrating on affordable, basic ‘no-brand-name’ packet and tinned foods at bargain prices, easyFoodstore underlines the need for additional reliable day-to-day provision of basic foodstuffs. No other details have yet been decided.”  Read more

 

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Monday’s Eye-on-Retail Tipsheet: H.Depot Co-Founders Manse on Block | Wmart Boosts Self-Checkout | CVS Fined $20 Mil |

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“Home Depot Co-Founder Bernie Marcus’s Mansion on Block for $3.2 Mil (Includes Heated Driveway)” by Josh Green at Curbed.  “Who knew Bernie Marcus was big-pimpin’ like this? Property records confirm this stylish, 10,000 square-foot estate near Sandy Springs belongs to the Home Depot co-founder, aquarium benefactor and philanthropic all-star. Sotheby’s has listed the property at $3.2 million, and that includes the hugely unnecessary heated driveway.”  See the pictures

 

“At Target, innovation begins from within” by Thomas Lee at Star-Tribune.  “Behind the scenes at Target, the cultural changes have been dramatic. Teams of executives regularly evaluate new technologies, whether they have originated from Target’s newly minted innovation center near Silicon Valley or from corporate employees. A dedicated group of technology and business strategists now try to quickly test inventions in individual stores. Every day, about 50 employees flock to Hi Tech, a Genius Bar-like support center where specialists offer personal IT help.”  Read more

 

“Walmart boosts Scan & Go self-checkout with mobile coupons” by Chantal Tode at Mobile Commerce Daily.  “Walmart continues to ramp up its mobile in-store Scan & Go program by giving users the ability to clip coupons by tapping their smartphones and having the savings automatically applied when they check out.”  Read more

 

“Martha Stewart Continues Slide at Home Depot” by Gary Bourgeault at Seeking Alpha.  “When asked about the lower number of SKUs at its other major partner Home Depot during its latest earnings call, Chief Administrative Officer & General Counsel Daniel Taitz downplayed the issue, and instead pointed to paint sales rebounding in the quarter. That doesn’t exactly generate confidence, and is a way, in my opinion, to say the company is struggling at Home Depot as well, which was confirmed in the recent earnings report where royalties from the Home Depot were reported to have fallen.”  Read more

 

“CVS Caremark set to pay $20 million to resolve SEC investigation” at Reuters.  “The drugstore and pharmacy benefits management company said the settlement will be entered on a “no admit or deny” basis, resolving a number of alleged violations of the Securities Act of 1933 and the Securities Exchange Act of 1934, including some anti-fraud provisions.”  Read more

 

“Harris Teeter considered being acquired since 2011” by Ely Portillo at Charlotte Observer.  “Matthews-based Harris Teeter was in talks with other companies about a merger or acquisition as early as April 2011, according to securities filings late Friday, and more than a dozen potential suitors expressed interest before Kroger Co. won the bidding.”  Read more

 

“In Mastering Machine Intelligence, Google Rewrites Search Engine Rules” by Peter Yared and Cameron Olthuis at Techcrunch.  “Google has produced a car that drives itself and an Android operating system that has remarkably good speech recognition. Yes, Google has begun to master machine intelligence. So it should be no surprise that Google has finally started to figure out how to stop bad actors from gaming its crown jewel – the Google search engine. We say finally because it’s something Google has always talked about, but, until recently, has never actually been able to do.”  Read more

 

‘Foreign retailers may not enter India before 2014 elections’ at Vancouver Desi.  “Foreign retailers like Walmart, Tesco and Carrefour are unlikely to enter the supermarket business in India before the 2014 general elections even though the government has partly addressed their concerns and relaxed the norms, industry experts say.  “Multi-brand retail business requires quite a large investment. I think retailers will prefer waiting to see more clarity,” Anis Chakravarty, senior director, Deloitte in India, told IANS.”  Read more

 

“Euro zone retail sales back in decline in June, France a bright spot” at Reuters.  “Retail sales in the euro zone fell broadly for the first time in three months in June, data showed, highlighting the drag of depressed household spending on the bloc’s fragile recovery.  The European Central Bank is hoping for a gradual improvement later this year in the health of the 17-member single currency area, which is likely to be driven mainly by exports and low interest rates.”  Read more

 

“Kroger Revamps Pricing in Houston” at Supermarket News.  “Kroger Co. this week introduced lower everyday prices on thousands of items at its stores in the Houston market and said it would invest $79 million to upgrade stores in the region this year.  Kroger’s “refresh” initiative in Houston also includes a renewed emphasis on the shopping experience, including faster checkouts, fuel discounts, local products and community relations.”  Read more

 

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Friday’s Eye-on-Retail Tipsheet: Walmart & Streaming | Brick & Mortar ‘Heat Maps’ | Amazon/Costco Overlap

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“Wal-Mart, retailers vie for bigger entertainment share” by Kim Souza at The City Wire.  “It’s been more than three years since Wal-Mart purchased Vudu, a video-streaming service based in Silicon Valley…Retail consultant Jason Long with Shift Marketing Group, said brick and mortar retailers are likely delving into streaming media as a defensive strategy focused on regaining lost revenue and blunting Amazon.  “Think about what could happen if Wal-Mart didn’t get into streaming, they cede eyeballs and engagement opportunities to Amazon and others.”  Read more

 

 “An Interview With Costco CEO Craig Jelinek” by Austin Smith at The Motley Fool.  “Do you view a brick-and-mortar competitor like Wal-Mart or an online-based competitor like Amazon as maybe a bigger concern or a bigger threat to Costco’s model?  Jelinek: I think, like I said before, they’re both threats, as is Target a threat, as is Whole Foods a threat.  The key is being the low-cost provider. That’s going to be the key for anybody winning the battle long term. It’s whoever can bring value and bring the best quality of merchandise to the marketplace at the best price. I think that’s really the key.”  Read the full interview

 

“Here’s What Brick & Mortar Stores See  When They Track You” by Sarah Kessler  at Fast Company.  “RetailNext, Euclid, Brickstream, Nomi, WirelessWerx, Mexia Interactive, and ShopperTrak are just a handful of services that provide brick-and-mortar stores with analytics akin to website traffic reports. By tracking movement within stores, they help retailers better understand how to optimize their layouts, staff their registers, attract returning customers, and more.”  Read more

 

“Amazon’s Overlap with Costco Could Spell Trouble” at Trefis.  “This study included the response of 15,000 customers as well as their movement analysis through the physical world. According to the study, about 45% of Amazon’s prime customers (who pay $79/year for free two-day shipping) will more likely shop at Costco than an average shopper. Moreover, there is 38% more chance for Amazon’s showroomers to visit Costco as compared to other showroomers. This indicates a big overlap between Amazon’s and Costco’s customers, which is not a good news for the latter.”  Read more

 

“From Oh, Canada to ‘O, Canada!’: Retail’s growth anthem” by Katie Little at CNBC.  “”For North American retailers, it’s easier to look over the fence at their neighbor versus looking across the pond for growth,” said Carman Allison, Nielsen’s director of shopper and industry insights. “With Canadians being exposed to media and advertising, brand awareness already exists for a number of key retailers and brands before they even enter the new market.”  Read more

 

“Harris Teeter profits jump in last quarter” by Ely Portillo at Charlotte Observer.  “Harris Teeter reported Wednesday that its profits for the quarter ending July 2 nearly doubled compared to the same period last year, to $31 million, as sales increased and costs held steady.  The company’s revenue grew 2.9 percent, to $1.19 billion. Sales at stores open for a year or more, considered a key measure of a retailer’s health, rose 1.3 percent.”  Read more

 

“Idaho artist’s coloring books become Costco hit” by Audrey Dutton at Seattle-Times.  “The Caldwell, Idaho, mother and grandmother and a family-owned Caldwell printing company can hardly keep up with orders for the “Color Me Your Way” book series.  The whole thing started with a lottery ticket and a few people who believed in her. I can’t even explain it,” she said. “I’m in awe. I’m just sitting here, going, ‘Can this be happening?’ ”  Read more

 

“A retail rally in the heart of L.A.” by Tiffany Hsu & David Pierson at LA Times.  “There’s been a real difference,” said King, 37, who lives at 8th and Flower streets. “First we got the Ralphs, then a Target, and now we’re getting a Whole Foods. It’s important because I’ll be able to stay here to buy organic produce and sustainable meat.”  Whole Foods will join a fattening lineup of grocers looking to cash in on downtown’s renaissance.”  Read more

 

“AT&T Ridding Some Retail Stores of Cash Register, Counters and Other Clutter” by John McDermott at Ad Age.  “AT&T plans to eliminate sales counters, registers, information placards and printers from 15 to 20 of its retail locations by the end of the year and will continue to roll out the less-cluttered design to more of its 2,300 U.S. stores into 2014.  “It’s a pretty radical departure from what we’ve done in the past,” AT&T Chief Marketing Officer David Christopher said in a recent interview.”  Read more

 

“Home Depot Biting Back Against Mosquitos” at ABC 40 (Springfield, MA). “He also suggests mosquito donuts to lure and kill the insects where they gather the most.  “Most mosquitoes are drawn to standing water. You put [the donut] in a birdbath, put it in a stump that has accumulated water. Its drawn to it and it will kill them,” Colo says.”  See the video

 

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Have a great weekend!