Archive for category: Eye-on-Retail

Walmart Q1 Earnings Released this Morning:

How Walmart Sees it:  “Walmart reports a 4.6 percent increase for Q1 EPS of $1.14; U.S. businesses forecast positive comp sales for Q2.”  from Walmart Press Release.  “Walmart U.S. comp sales declined 1.4 percent in the 13-week period from Jan. 26 to Apr. 26, 2013. Comp sales performance was impacted by a delay in income tax refund checks, challenging weather conditions, less grocery inflation than expected and the payroll tax increase. Walmart U.S. gained market share in the measured category of “food, consumables and health & wellness/OTC.”  Read full release:  https://news.walmart.com/news-archive/investors/walmart-reports-a-46-percent-increase-for-q1-eps-of-114-us-businesses-forecast-positive-comp-sales-for-q2-1820850

How CNBC Sees it:  “Wal-Mart Profit Beats; Soft US Sales a Drag on Revenue” at CNBC.  “Wal-Mart posted first-quarter earnings excluding items of $1.14 per share, versus $1.09 per share in the prior year-ago period. Revenue rose to $114.19 billion, from the $113.02 billion figure seen a year ago; including currency effects, revenue was $113.4 billion. Analysts had expected the company to report a profit of $1.15 per share on $116.25 billion in revenue, according to a consensus estimate from Thomson Reuters.”  Read more:  https://www.cnbc.com/id/100740377

How Fox Business Sees it:  “Wal-Mart Posts 1Q Miss, Tepid 2Q Outlook” at Fox Business.  “Developing: Wal-Mart revealed first-quarter earnings of $1.14 a share on sales of $113.4 billion, shy of estimates of $1.15 a share on $116.3 billion in revenues. The world’s biggest retailer said it expects to earn between $1.22 and $1.27 a share in the second quarter, also missing forecasts of $1.29. Shares of the Dow component slid 2.3% in pre-market trading.”  Read more:  https://www.foxbusiness.com/industries/2013/05/16/wal-mart-posts-1q-miss-tepid-2q-outlook/#ixzz2TSDdVjhM

“Kroger hunting for acquisitions, CFO tells investors” by Steve Watkins at Cincinnati Business Courier.  ““Now, if there was distressed real estate that’s in-market and we can take those stores and fold them into Kroger, and it’s more of a real estate transaction rather than buying a business, those have been exceedingly great for us, and we continue to look for those kinds of opportunities,” Schlotman said. “It always seems like there’s a lot of assets available in our industry. There just hasn’t been anything on a grand scale that has met the metrics.”  Read more:  https://www.bizjournals.com/cincinnati/blog/2013/05/kroger-hunting-for-acquisitions-cfo.html

“Home Depot’s Chairman and CEO Frank Blake to Present at Sanford Bernstein 29th Annual Strategic Decisions Conference 2013” at Market Watch.  “Frank Blake, chairman and CEO, will present at the Sanford Bernstein 29th Annual Strategic Decisions Conference 2013 in New York, NY. The presentation will begin at 2 p.m. ET on May 29, 2013.”  Read more:  https://www.marketwatch.com/story/the-home-depot-to-present-at-sanford-bernstein-29th-annual-strategic-decisions-conference-2013-2013-05-15

“Kroger Defends Double Coupon Elimination” by John Springer at Supermarket News.  “Michael Schlotman said eliminating double coupons has helped the company invest in lower everyday prices that benefitted a larger group of shoppers than the chain’s heavy coupon shoppers.  “Now, they’re a very vocal part of your customer base, and they don’t like it when you stop giving them that reward,” he said. “But the percentage of customers who actually enjoyed the benefit of that, our view was we were better off taking those dollars and investing them in better prices for all of our customers rather than rewarding just a select segment of our customers.”  Read more:  https://supermarketnews.com/retail-amp-financial/kroger-defends-double-coupon-elimination

“Wal-Mart taps St. Louis startup to monitor Bangladesh textile factories” by Amir Kurtovi.  “Wal-Mart said it will give $600,000 toward a project that will let allow all those textile factories to have a voice. The retailer is partnering with Labor Voices, a St. Louis startup with a mobile phone-based portal for supply chain management.  Last year, Labor Voices was among the winners of the Arch Grants competition. The deal with Wal-Mart will allow factory workers to provide feedback and report unsafe working conditions using Labor Voices’ platform.”  Read more:  https://www.bizjournals.com/stlouis/blog/BizNext/2013/05/walmart-taps-st-louis-startup-in.html

“Lowe’s Companies, Inc. Invites You to Join Its First Quarter 2013 Earnings Conference Call Webcast” at Market Watch.  “In conjunction with the Lowe’s Companies, Inc. first quarter 2013 earnings press release, you are invited to listen to its conference call to be broadcast live over the internet on Wednesday, May 22, 2013 at 9:00 a.m. Eastern Time.”  Read more:  https://www.marketwatch.com/story/lowes-companies-inc-invites-you-to-join-its-first-quarter-2013-earnings-conference-call-webcast-2013-05-15

“Can Macy’s Win the Department Store Battle?” by Andrew Marder at The Motley Fool.  “For the rest of 2013, be on the lookout for similar comparable-store gains. Macy’s has forecast 3.5% for the full year, but I wouldn’t be surprised by anything up to 4%. Investors should also keep an eye on the new brands that Macy’s is launching this year, as those lines will give customers new reasons to visit the stores.”  Read more:  https://ht.ly/2wUtfm

“Inside Target’s Canadian Invasion” by Chad Fraser at Investing Daily.  “Canadian shoppers have long complained about products being more expensive in Canada than in the U.S., particularly in recent years, when the Canadian dollar has been trading near parity with the greenback. The Conservative federal government has also been paying attention to the issue. In his latest budget, Finance Minister Jim Flaherty eliminated $76 million of tariffs on certain goods entering the country, including baby clothing and ice skates, mainly to address this price gap.  “This is an important test. We’re going to take a few items . . . take the tariffs off them, and we’re going to see what happens to prices in Canada.” said Flaherty.”  Read more:  https://www.investingdaily.com/17412/inside-targets-canadian-invasion/

Thanks for reading…

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“Walmart Q1 Earnings Preview” at Trefis.  “Wal-Mart will release its Q1 fiscal 2014 results on May 16. Although the retailer performed steadily throughout fiscal 2013, we expect it to report relatively slow growth during this quarter. Higher payroll taxes and delays in tax refunds will be some of the key factors governing the retailer’s results in the U.S. Additionally, Wal-Mart’s expansion in international markets such as Brazil, Mexico and China is likely to weigh on its overall revenue growth. Since the company took this step to improve its store profitability, we expect the comparable store sales growth to improve.”  Read more:  https://www.trefis.com/stock/wmt/articles/184866/wal-marts-earnings-will-reflect-soft-u-s-spending-and-slower-expansion-abroad/2013-05-13

“Retail Sales Rebound in April; Increase 0.6 Percent”  “Strengthening employment data, increasing housing prices and a record-breaking stock market provided consumers the confidence they needed to shop in April. According to the National Retail Federation, the world’s largest retail trade association, April retail sales (excluding automobiles, gas stations and restaurants) increased 0.6 percent seasonally adjusted from last month and increased 3.9 percent unadjusted year-over-year.”  Read more:  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20130513005976&div=-1245645151

“What’s Amazon’s Master Plan for Coins?” by John Paczkowski at All Things D.  “Like other virtual currencies — Facebook credits, for example — Coins is notional, which makes it easier to spend. As in gambling, the abstraction of converting real money into virtual money makes it harder to keep track of how much of the former you’re actually doling out. And, of course, once you purchase Coins from Amazon, it becomes the only place to redeem them.”  Read more:  https://allthingsd.com/20130513/whats-amazons-plan-for-coins/

“US: Stater Bros takes margin hit to keep customers” by Dean Best at Just-Food.  “The company, which runs over 160 stores in California, booked a 1.7% increase in sales to US$1.93bn. Stater said like-store sales were up 1.1%.  However, Stater Bros. chairman, president and CEO Jack Brown said the retailer decided to “keep prices low” to maintain traffic, which meant margins came under pressure.”  Read more: https://www.just-food.com/news/stater-bros-takes-margin-hit-to-keep-custom_id123185.aspx 

“Country’s Second ‘Walmart on Campus’ to open at Arizona State University in Tempe” by Alex Ferri at ABC 15.  “The country’s second “Walmart on Campus” will open Wednesday at Arizona State University’s Tempe campus.  The new location functions as a convenience store and offers ASU students and faculty easier access to Wal-Mart’s “everyday low prices,” according to a press release.”  Read more: https://www.abc15.com/dpp/news/region_southeast_valley/tempe/walmart-on-campus-to-open-at-arizona-state-university-in-tempe#ixzz2TGSXNaUX

“Nearly 75% Of All Smartphones Sold In Q1 Were Android, With Samsung At 30%” by Ingrid Lunden at Tech Crunch.  “Android continues to steal the show, led by handset maker Samsung. Google’s mobile platform now accounts for nearly 75% of all handset sales, a jump of almost 20 percentage points on a year ago, and equating to 156 million devices sold in the three-month period.”  Read more:  https://techcrunch.com/2013/05/14/android-nearly-75-of-all-smartphones-shipped-in-q1-samsung-tops-30-mobile-sales-overall-nearly-flat-says-gartner/

” ‘America’s Funniest Home Videos’ Now Available for Brands” by Shareen Pathak at Ad Age.  “Indie production company Fishbowl Worldwide Media — which was founded by Bruce Gersh and America’s Funniest Home Videos producer Vin Di Bona — is launching a home-video licensing division that will open up the entire library of the homemade video program to advertisers and brands.”  Read more:  https://adage.com/article/media/america-s-funniest-home-videos-brands/241443/

“Amazon online retailer hit by strike in Germany” at Reuters.  “Workers at two German Amazon locations have walked out in support of higher wages and to press their right to collective bargaining. The all-day stoppage is set to disrupt services in Amazon’s second biggest market.”  Read more:  https://ht.ly/2wRrWi

“Major retailers join Bangladesh safety plan” by Steven Greenhouse at NY Times via The Seattle Times.  “Consumer and labor groups hailed the move by Sweden-based H&M as an important step toward improving factory safety in Bangladesh, saying it would increase pressure on other Western retailers and apparel brands to do likewise.”  Read more:  https://seattletimes.com/html/businesstechnology/2020979990_retailersbangladeshxml.html

Thanks for reading…

Follow on Twitter @retaileyeretail

“Home Depot’s CMO Trish Mueller Discusses Mobile Initiatives” by Mark Walsh at Media Post.  “In the social realm, Mueller was bullish on Twitter, calling the microblogging service “a new horizon in terms of information and connectivity for consumers, more so than other social platforms.” Home Depot has recently tested pushing tweets to mobile users based on relevant Twitter conversations, even if they are not marked with a hashtag.  That might involve sending a tweet about paint products if someone tweeted about having to paint their kitchen. Mueller said engagement has been 40% higher with such tweets in mobile than on the desktop.”  Read more: https://www.mediapost.com/publications/article/200004/home-depot-ramps-up-mobile-spend.html#ixzz2St9QxwGc

“At Walmart and Other Retailers, Price-Matching Has Its Perils” by Dudley and Rupp at Businessweek.  “When Walmart rolled out its “simplified” Ad Match Guarantee in 2011, it promised that store workers would get “extensive” training “to ensure the price-match policy is executed consistently across all stores.” That hasn’t happened, says Richard Hampton, a customer service manager who’s on medical leave from a Walmart Supercenter in Rowlett, Tex. “The policy may well be as intended in the ads, but the reality is quite different and apparently arbitrary.”  Read more:  https://www.businessweek.com/articles/2013-05-09/at-walmart-and-other-retailers-price-matching-has-its-perils

“Costco’s April sales disappoint analysts” at The Seattle Times.  “Costco’s revenue at stores open at least a year climbed 4 percent in April, but fell just shy of analysts’ expectations.  Analysts polled by Thomson Reuters predicted a 4.5 percent increase.”  Read more:  https://seattletimes.com/html/localnews/2020949363_apuscostcosales.html

“Whole Foods to consider acquiring Fresh & Easy stores: co-CEO Robb” at Market Watch.  ““We will certainly be taking a look at it,” Robb said in a phone interview after the grocer’s upbeat May 7 earnings report.  He said there are no assurances Whole Foods would offer to acquire one or more of the sites.  There will be competition. Tesco said in mid-April it’s received “lots of interest” from potential buyers, with some keen on buying the entire business.  Fresh & Easy operates 199 stores in California, Arizona and Nevada.”  Read more:  https://blogs.marketwatch.com/thetell/2013/05/09/whole-foods-to-consider-acquiring-fresh-easy-stores-co-ceo-robb/?link=sfmw

“Lowe’s, Food Lion parent company join Affordable Care Act protest” by Ely Portillo at Charlotte Observer.  “Pittenger and his colleague Congressman Richard Hudson have introduced a bill that would repeal the “auto enroll” provisions of the Affordable Care Act. Under the law, companies with more than 200 workers must automatically enroll full-time employees in their healthcare plans within three months, unless the employees opt out.”  Read more:  https://www.charlotteobserver.com/2013/05/09/4032691/lowes-food-lion-parent-company.html#storylink=cpy

“Kroger Tops Loyalty Program Survey” by Michael Garry at Supermarket News.  “The Kroger program, which is facilitated by Kroger’s partnership with DunnhumbyUSA, received an 83% overall satisfaction rating in the study, whose finding were compiled in the Maritz Loyalty Report.”  Read more:  https://supermarketnews.com/marketing/kroger-tops-loyalty-program-survey#ixzz2StBQvbeq

“P&G Survey Finds More Than 80% of U.S. Moms Prefer Daily Help over Grand Gestures for Mother’s Day”  “Eighty-seven percent of those surveyed would prefer to have a little more time to themselves, a family day out, or a little more unprompted help around the house. Eighty-three percent said this would make them feel more appreciated and loved, even if it is just a simple ‘Thank you’ for all the things she does for the family.”  Read more:  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20130509006276&div=-1245645151

“Amazon reportedly developing 3D smartphones” by Rex Crum at WSJ.  “Amazon.com is reportedly expanding its reach into technology hardware by developing smartphones with 3D screens. The Wall Street Journal reported Thursday that the maker of the Kindle Fire tablet is working on two different smartphones.”  Read more:  https://www.marketwatch.com/story/amazon-reportedly-developing-3d-smartphones-wsj-2013-05-09?mod=latestnews&link=sfmw

“Roundy’s Same Store Sales +1.3% in Q1 ’13”  “Net sales for the first quarter of 2013 were $983.5 million, an increase of $45.3 million, or 4.8 %, from $938.2 million for the first quarter of 2012.”  Read more:  https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20130509006289&div=-1245645151

Thanks for reading…have a great weekend.

Follow on Twitter @retaileyeretail

“Target partners with Facebook to push its digital Cartwheel to shoppers” by Thomas Lee at Star-Tribune.  “In its boldest foray into digital retailing, Target is launching Wednesday a test version of Cartwheel, an ambitious collaboration with the world’s largest social network that will allow users to earn savings via Facebook and then use their smartphones to redeem those savings in stores.  Though retailers have used social networks like Twitter and Pinterest to promote products and influence opinion, generating real sales has so far proven elusive. By using mobile devices to help drive people to its stores, Cartwheel might be the missing piece to this “multichannel” puzzle, Target officials say.”  Read more:  https://www.startribune.com/business/206530061.html

“Wal-Mart Said to Focus on Two Internal Choices for Next CEO” at Businessweek.  “The two leading contenders are international chief Doug McMillon, 46, and Bill Simon, 53, who runs the U.S. operations, said the person, who asked not to be identified because the matter is private. While Duke, 63, isn’t expected to step down immediately, Wal-Mart may name his successor in the coming months, the person said.”  Read more:  https://www.businessweek.com/news/2013-05-07/wal-mart-said-to-focus-on-two-internal-candidates-to-succeed-ceo

“Whole Foods Profit Rises 20% as Store Sales Improve” by Leslie Patton at Businessweek.  “Whole Foods, which plans to triple its U.S. store count to about 1,000, has lured Americans who are becoming more concerned with eating organic and healthy foods. The 349-location grocer is expanding to smaller cities including Maple Grove, Minnesota, and Closter, New Jersey. Same-store sales rose 6.9 percent in the quarter.”  Read more:  https://www.businessweek.com/news/2013-05-07/whole-foods-net-income-rises-20-percent-as-same-store-sales-improve

“Target Dollhouse In Grand Central Is Probably Bigger Than Your Apartment” by Christina Anderson at HuffPo.  “Target unveiled a life-size, two-story dollhouse in Grand Central Terminal here in New York yesterday. The dollhouse features 1540-square-feet of living space, making it larger than most New York apartments.  The structure — named the “Threshold Dollhouse” was assembled by 50 individuals in less than 54 hours, and it comes furnished. The house was assembled as a very elaborate way to showcase Target’s spring line of accessories. There are between 3500 and 4000 items on display, including towels, lamps and throw pillows.”  See the pictures and video:  https://www.huffingtonpost.com/2013/05/07/target-dollhouse-grand-central-photos_n_3229487.html?utm_hp_ref=tw

“Online grocery ordering and home delivery move to organic market” by Karen Nitkin at The Baltimore Sun.  “Relay Foods is one of several grocery delivery services operating in the Baltimore area, each with a different niche. Giant-affiliated Peapod home-delivers some 12,000 items that can be found in Giant stores to nearly 400,000 customers. Hometown Harvest, based in Frederick, delivers locally grown produce and is adding meats, dairy products and even salmon.”  Read more: https://www.baltimoresun.com/entertainment/dining/bs-fo-organic-grocery-delivery-20130507,0,6489251.story#ixzz2ShMEfGIE

“Internet Sales Tax Bill Faces Tough Sell in House” at U.S. News.  “House Speaker John Boehner, R-Ohio, has not commented publicly about the bill, giving supporters hope that he could be won over. Rep. Bob Goodlatte, R-Va., chairman of the House Judiciary Committee, which would have jurisdiction over the bill, has cited problems with the legislation but not rejected it outright.”  Read more:  https://www.usnews.com/news/articles/2013/05/07/Internet%20sales%20tax%20bill%20faces%20tough%20sell%20in%20House

“Walmart Builds Own Search, No Competitive Advantage In Buying” by Frank Hayes at Storefront Backtalk.  “So why is the world’s largest retailer now focused on building its own technology instead of buying it off the shelf? According to the chain’s e-commerce chief, that’s the only way it can get a competitive advantage from the technology.  “We can’t do what we need to do and want to do with off-the-shelf solutions,” said Neil Ashe, Walmart president and CEO of global e-commerce.”  Read more:  https://storefrontbacktalk.com/e-commerce/walmart-builds-its-own-search-because-theres-no-competitive-advantage-in-buying/#ixzz2ShQpGDG3

“True Value Rolls Out New TV Campaign” by Sarah Mahoney at Marketing Daily.  ““We really wanted ads that would resonate with people who do their own projects, and the category is fraught with spots that are shot in the retail environment, full of smiling happy people wearing aprons,” says John Colasanti, CEO of Solve, the Minneapolis agency that created the campaign. “We thought it should be about what the brand helps the consumer do, and show how their lives were bettered. It’s a very different appeal, and a very inward focus.”  Read more:   https://www.mediapost.com/publications/article/199794/true-value-rolls-out-new-tv-campaign.html#ixzz2ShNgDCrZ

“The Three Things Warby Parker Did To Launch A Successful Lifestyle Brand” by John Biggs at Techcrunch.  ““We only invested into three things the first year: to start our first collection, our website, and PR,” he said. Blumenthal later talked up importance of having a socially responsible mission — in this case, the company’s buy a pair, donate a pair Do Good program — and the effect it could have on driving sales.”  Read more:  https://techcrunch.com/2013/05/07/the-three-things-warby-parker-did-to-launch-a-successful-lifestyle-brand/

“Consumer Reports Index: Consumer Sentiment Jumps To Highest Level Since 2008”  “Retail numbers have not yet seen the benefit from this rise in consumer sentiment and declining financial difficulties. The index’s past 30-day retail measure shows that spending activity has slumped to its lowest level since October 2008, posting its fourth straight month of decline and now standing at 8.7, down from 9.6 the prior month. This decline was led by a softening in two high-ticket categories, major appliances and major home electronics.”  Read more:  https://media.prnewswire.com/en/jsp/latest.jsp?resourceid=6799040&access=EH

Thanks for reading…

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