Eye-on-Retail Tipsheet 1/29/13: Home Depot’s CEO: “A third of all retailers will be wiped out”
“Home Depot CEO: Internet biggest challenge” by Jonathan Copsey at North Fulton. “Blake spoke Jan. 24 to members of the Roswell Rotary Club about his company and how he saw the coming years…The most significant challenge facing the company, he said, was the threat of losing sales to Internet companies…”Retail is a detail-oriented business,” he said. “You need the right amount of product in the right store at the right price.”…”The Internet will have an enormous impact on the brick-and-mortar retailers,” he said. “A third of all retailers will be wiped out because of dot-com competition.” Read more: https://www.northfulton.com/Articles-BUSINESS-c-2013-01-27-197125.114126-sub-Home-Depot-CEO-Internet-biggest-challenge.html
“NRF Forecasts 3.4% Increase in Retail Sales for 2013” “The National Retail Federation released its 2013 economic forecast today, projecting retail industry sales (which exclude automobiles, gas stations, and restaurants) will increase 3.4 percent*, slightly less than the preliminary 4.2 percent growth seen in 2012. The subdued forecast comes on the heels of a holiday season that went head-to-head with Washington’s political wrangling over fiscal concerns, shifting consumers’ spending plans downward. In the end, holiday sales in 2012 grew 3.0 percent…Shop.org, NRF’s digital division, expects online sales in 2013 to grow between 9.0 and 12.0%. Online sales in 2012 during the months of November and December last year grew 11.1 percent.” Read more: https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20130128005923&div=-1245645151
“Walmart loses market share to other grocers in DFW” by Candice Carlisle at Dallas Business Journal. “Retail giant Walmart has the largest market share of Dallas-Fort Worth’s hotly contested grocery business, but it could be losing a portion of that pie to other retailers. In the past five years, Walmart’s market share has declined about 1 percent, while Kroger, Tom Thumb and Sam’s Club have gained more shoppers, Walter Bialas, vice president and market research director for Jones Lang LaSalle’s Dallas office, told me Monday.” Read more: https://www.bizjournals.com/dallas/news/2013/01/28/walmart-loses-market-share-to-other.html
“Costco Endorses Sustainability Efforts” by Elliot Zwiebach. “”Do you think it is fair to charge low- and middle-income Americans more for products because Costco and other retailers want to green-wash their images?” he (shareholder) said, calling on Costco to reject initiatives dealing with sustainability “to reduce the company’s bottom line.” In his response, Jelinek gave a couple of examples of sustainability efforts that reduce costs, including the use of solar panels on warehouse roofs “that allow us to spend less on electricity,” as well as recycling grease from chicken rotisseries for sale to renderers. Read More: https://supermarketnews.com/sustainability/costco-endorses-sustainability-efforts#ixzz2JKNYsYTs
“For CMOs, Agility Is The New Black: Survey” by Jennifer Rooney at Forbes. “…Clearly, CMOs are reluctant to let go the value of intuition and ideas even in the face of—or perhaps because of—the persuasive and pervasive influence of data. Many expressed the danger that comes in relying so much on science such that it stifles creativity. “We use insight to shape beliefs that inform the creative execution, but we don’t ask guests to pick the creative that we run. So much of our advertising is trend- and style-focused, we need to lead the guests. Guests can’t tell us about things they haven’t seen before. We need to use our knowledge of trends and judgment to lead here,” explained Target’s Jones to the researchers.” Read more: https://www.forbes.com/sites/jenniferrooney/2013/01/28/for-cmos-agility-is-the-new-black-survey/
“Marc Andreessen: The Internet Helps Small Businesses Beat Walmart” by Julie Bort at Business Insider. “…Ultimately, these software-as-a-service startups mean that a company doesn’t need a big IT budget to compete, he says: “The classic was Walmart versus local retailer, right? Walmart’s advantage in logistics and in pricing and in data analytics was just so great that they could kill small retailers at will. Today all the consumerized enterprise stuff is as easily usable by the small business as it is by the large business. In fact, it’s probably more easily usable by the small business than it is by the large business.” Read more: https://www.businessinsider.com/marc-andreessen-small-business-beat-walmart-2013-1#ixzz2JKQTZmNz
“Why big-box retail needs a serious upgrade” by Rocky Agrawal at Venture Beat. “One of the biggest challenge facing big box retailers is that online shopping is getting more convenient all the time. Stored credit card information makes checking out a breeze. Expedited fulfillment like Amazon Prime, which offers free two-day shipping, dramatically reduces the delay in getting products. (In many markets, Amazon can deliver many products overnight.) These changes make brick-and-mortar shopping even less convenient by comparison. Last week, I had an experience at a large national electronics chain that highlighted some of these important differences. Some of these can be improved with technology, possibly creating opportunities for startups to plug these holes. Read more: https://venturebeat.com/2013/01/23/why-big-box-retail-needs-a-serious-upgrade/#L18xKGPSvuSgIMoS.99
“Macy’s, Inc. Announces Executive Management Changes” “Macy’s, Inc. today announced a series of changes to its senior executive leadership team, effective immediately. “These adjustments to our senior leadership team provide continuity and strengthen our ability to innovate as we work to maximize results in the years ahead from our core business strategies, including My Macy’s localization, omnichannel alignment, and customer engagement.” Thomas L. Cole is retiring as Macy’s, Inc.’s chief administrative officer after an exceptional 41-year career with Macy’s, Inc. and its predecessor companies. He will remain with the company through May 2013 to affect a smooth transition to several other executives. His responsibilities have been re-assigned as follows…” Read more: https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20130128006360&div=-1245645151
“Target Bringing Fresh Grocery to Stores in Detroit Area” “Target Corp. is pleased to announce that fresh grocery is coming to the Detroit area as part of the company’s ongoing effort to remodel stores across the country. In addition to featuring a large selection of affordable fresh foods, the new layout will include reinventions in several other departments such as beauty, home, shoes and baby, aimed at providing guests with an exceptional one-stop shopping experience. “We’ve heard from our guests that they want more fresh food options in the convenience of their local Target store” “Remodeled stores will include approximately 10,000 square feet dedicated to fresh food, including a curated assortment of fresh produce, fresh packaged meat and pre-packaged baked goods, in addition to dry and frozen offerings. Guests will also find a selection of national food brands, as well as award-winning Target owned brands including Archer Farms premium foods, Market Pantry value staples and meal options, and Sutton & Dodge premium quality USDA Choice beef.” Read more: https://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20130128005066&div=-1245645151
“What Does Wegmans Sell for $999 per Pound?” by Pete Kennedy at Malvern Patch. “The produce section in a supermarket isn’t typically a place to find high-end luxuries. But in the corner of the Malvern Wegmans produce section, black truffles, imported from Italy, are kept under lock and key. Located next to other, less expensive mushrooms, the rare, renowned fungi sell for $999.99 per pound.” Read more: https://malvern.patch.com/articles/what-does-wegmans-sell-for-999-99-per-pound