Friday’s Tipsheet: Target’s 1st Custom Store in Can. | Wmart’s 2.4% Cheaper than Target
“Target Purchases 9 acres @ 6 million for its First Custom Canadian Store” by Barrie Advance at Simcoe County. “Target has purchased just over nine acres for $6 million at Park Place for its first custom Canadian store. The deal closed July 12, and construction will begin in September…”This is the first piece of land they’ve bought in Canada and this will be the first store built from the ground up,” said Coughlin.” Read more
“Walmart Basket 2.4% Cheaper Than at Target” by Kim Souza at City Wire. “The overall branded basket was 2.4% less expensive at Wal-Mart versus Target in the June study. The gaps narrowed from a 3.7% spread in January of this year, an indication that Target is willing to discount when and where necessary to be competitive. Kantar found that Wal-Mart used just one price rollback in the six month period, while Target used 10 temporary price cuts in the period.” Read more
“Walgreen gets a modern makeover” by Geoff Colvin at Businessweek. “We have a tremendous opportunity to differentiate ourselves and step out of the traditional drugstore format and create something completely new and unique. In the past we were a pharmacy with a front end that was convenience goods. We don’t want to lose that. We’re on the best corners of America for that reason. But we can move from just convenience to more health, daily living, and beauty.” Read more
“CVS Caremark will help promote Obamacare” by Kyle Cheney at Politico. “CVS officials told POLITICO that they’re planning to use pharmacies at their 7,400 North American stores as a gateway for the uninsured to learn about new coverage options — especially subsidized insurance coverage available to low-income people on state-based insurance exchanges.” Read more
“Wal-Mart Family Bankrolls a Lender That Targets Hispanics” by Renee Dudley at Businessweek. “With Progress Financial, which lends under the brand Progreso Financiero, the family that controls Wal-Mart can put money into the hands of an important group of customers, if only indirectly, through a network of more than 80 branches. The branches make loans of as much as $3,500, and most are located a short drive from a Walmart.” Read more
“Walmart’s Economic and Customer Insights Report for Q1 2013” “89% of adults indicate they are involved in more household “conservation activities” than three years ago in an effort to save on household spending. Top activities shoppers claim engagement in: Cooking at home (56%), Using coupons for everyday purchases (48%) and Seeking out lower priced food items (46%). The spirit of thriftiness has led consumers to rely increasingly on used items, and has created a booming aftermarket for secondary-use products in the last few years.” Read more
Street View: “Amazon.com Slips Back Into The Red With $7M Q2 Loss” by Abram Brown at Forbes. “CEO Jeff Bezos, true to his focus on building his company rather than making money, offered no specific reason why Amazon.com struggled in the quarter. What is clear is that the company continues to exist with paper-thin margins. Amazon.com’s operating margin of net sales was a tiny 0.5%.” Read more
Company View: “Amazon.com Announces Second Quarter Sales up 22% to $15.70 Billion” Net sales increased 22% to $15.70 billion in the second quarter, compared with $12.83 billion in second quarter 2012. Excluding the $392 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 25% compared with second quarter 2012.” Read more
“New survey says Wal-Mart lags the grocery pack” by Kim Souza at City Wire. “Trader Joe’s Market, which operates 400 stores across the U.S., received the highest marks among those surveyed, with a 90% approval. Whole Foods Market, Publix and Aldi also scored high in the 80% range. Wal-Mart scored the lowest ranking among those surveyed at roughly 35%, while Sam’s Club fared better at 65%.” Read more
“Cabela’s building on gun sale gains by leveraging data” at CNBC. “29 percent of sales at the company are made using its Cabela’s credit card, which is issued by a company-owned bank called The World’s Foremost Bank and accounts for 10 percent of revenues. Competitors like Dick’s Sporting Goods and Target, by comparison, do not own their own banks. “This is by far the easiest and best loyalty rewards program that I’ve ever seen,” Anderson said, noting that customers do not need rebates or face other restrictions on purchases.” Read more
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