Eye-on-Retail Tipsheet 1/9/13: Target’s Online Price Match; Dollar Stores Challenged
“3-D printers could bring manufacturing to your home office” by Cecilia Kang at The Washington Post. “This is definitely the year that 3-D printing is making a splash at the International Consumer Electronics Show, the annual bazaar of geek commerce. Last year, only one 3-D printing company showed up at the CES, which aims to showcase gadgets you might buy at Best Buy or Amazon, not at industrial supply stores. This week, four such companies will be there. One of them — MakerBot, which also supplies devices to Ford — will unveil Tuesday a new 3-D printer designed to be the most advanced ever offered at a price that could make it attractive to the home hobbyist. The online world of hackers and tech enthusiasts is buzzing about how to use such a powerful tool. Researchers and early adopters have made everything from cute figurines and jewelry to working bicycles. A lot of iPhone cases are being custom-made on 3-D printers.” Read more: https://www.washingtonpost.com/business/technology/3-d-printers-could-bring-manufacturing-to-your-home-office/2013/01/07/2b42bdb8-56be-11e2-a613-ec8d394535c6_story.html
“Target unveils year-round online price match” at AP via USA Today. “Target said Tuesday that its pledge to match prices of select online rivals this past holiday season is now a year-round promise. The nation’s second largest discounter behind Wal-Mart Stores said it will match prices that customers find on identical products at top online retailers, all the time. The online list includes Amazon.com as well as the websites of Wal-Mart, Best Buy, Toys R Us and Babies R Us.” Read more: https://www.usatoday.com/story/money/business/2013/01/08/target-year-round-price-match/1817075/
“Amazon-Target Rivalry Takes on Canadian Flavor” by Karen Johnson at WSJ. “In the latest sign that U.S. retail giants Amazon.com and Target Corp. aren’t leaving their rivalry at the border, Amazon said Tuesday that its Canadian site will offer an unlimited two-day shipping program that’s popular with its U.S. customers. Amazon’s move comes just two months ahead of Target’s much-awaited Canadian debut. The discount chain plans to open 124 stores across Canada, beginning in March.” Read more: https://blogs.wsj.com/canadarealtime/2013/01/08/amazon-target-rivalry-takes-on-canadian-flavor/
“CWB: Women in Business Spotlight on Rosalind Brewer (CEO of Sam’s Club)” by Sarah Johnson at Free Enterprise. “If Sam’s Club were its own company, instead of a subsidiary to Wal-Mart, Rosalind Brewer would be a Fortune 50 CEO. Even without that distinction, Brewer runs a $50 billion business. But she has lofty goals, she wants to turn Sam’s Club in a $100 billion business – and she knows exactly how she is going to do it…As CEO of Sam’s Club, Brewer has two big targets: Costco and Amazon.com. She wants her company to rival Costco in physical, store presence and rival Amazon in online presence. These are lofty goals to say the least; will she be able to reach them? She plans to start by raising the membership fee for Sam’s Club, then says she will enact the following strategies…Read more: https://www.freeenterprise.com/entrepreneur/cwb-women-business-spotlight-rosalind-brewer?utm_medium=rss&utm_campaign=sitewide_feed&utm_source=0
“Analyst: Dollar stores’ grocery gains slowing” at AP via Bloomberg Businessweek. “The benefit that dollar stores have reaped from expanding their grocery and home products aisles has slowed due to increasing competition for shoppers’ food dollars, a Nomura analyst said Monday. Stores like Family Dollar and Dollar General have added more grocery and household items over the past two years in an effort to steal business away from supermarkets and big-box stores like Target Corp. and Wal-Mart Stores Inc. Food and household products should continue to be strong sellers for dollar stores, said analyst Aram Rubinson, but they’re finding that the business can be a tricky one. Groceries have tough price competition, leading to razor-thin profit margins.” Read more: https://www.businessweek.com/ap/2013-01-08/analyst-dollar-stores-grocery-gains-slowing
“Dollar General Seen Hurting as Customers Pay More Taxes: Retail” by Chris Burritt at Bloomberg. “Dollar General and Family Dollar, respectively the No. 1 and No. 2 industry players, are already facing a resurgent Wal- Mart Stores Inc., which has put more items on shelves and emphasized low prices in its advertising. Family Dollar, based in Matthews, North Carolina, tumbled 13 percent Jan. 3, its biggest drop in more than 12 years, after posting weaker profit margins and cutting its full-year profit outlook. The tax increase is “like a splash of cold water,” Kelly said in an interview. “It represents a direct reduction of spending by the lower-end consumer.” Read more: https://www.bloomberg.com/news/2013-01-09/dollar-general-seen-hurting-as-customers-pay-more-taxes-retail.html
“America’s 11th largest tech company (It’s Apple’s iPad)” by JP Mangalindan at Fortune. “Measured in revenue, Apple’s iPad would rank No. 11. On the Fortune 500? No. 98…Just how lucrative has Apple’s iPad become? Let’s put it this way: if the tablet were spun off into a standalone business, it would be the 11th largest U.S. tech company. According to a recent report from Bernstein Research analyst Toni Sacconaghi, the iPad line brought in $32 billion in sales last year — accounting for just over 60% of all tablet sales — and will grow 75% in 2013 to $46 billion. With numbers like those, Sacconaghi estimates that would make the iPad business, on its own, the 11th largest tech company.” Read more: https://tech.fortune.cnn.com/2013/01/08/americas-11th-largest-tech-company-ipad/?iid=SF_F_River
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“Attention Movie Fans: Walmart Gives You More Ways to Love your Favorite Films” (Co. Press Release). “Walmart is making it easier and more enjoyable for movie fans to watch their favorite movies when and where they want. Today at the 2013 International Consumer Electronics Show (CES), the retailer announced it is expanding its in-store Disc-to-Digital service to provide customers with digital versions of their previously purchased movies from the comfort of their home. Walmart will also be launching a new Facebook app that will give people access to exclusive movie content and the power to influence and shape what movies are sold in-store and online.” Read more: https://news.walmart.com/news-archive/2013/01/07/attention-movie-fans-walmart-gives-you-more-ways-to-love-your-favorite-films
“Family Dollar Squeezing its Rivals” by Sam Mamudi at Barron’s. “From 2009 to 2011, Family Dollar represented 23-25% of the channel’s incremental Consumables sales. But as that company accelerated new store growth (from 1.3% in 2009 to 6% in 2012) and relied more heavily on Consumables to drive sales in existing stores, Family Dollar grew to represent 36% of the channel’s incremental Consumable sales in 2012. By going from a share donor (inside the Dollar Store channel) to a share gainer, Family Dollar’s moves may have jilted the [dollar store] Gravy Train.” Read more: https://blogs.barrons.com/stockstowatchtoday/2013/01/08/family-dollar-squeezing-its-rivals/
“Safeway CMO Dietz Named Marketer of Year” by Mark Hamstra at Supermarket News. “In addition to the national, multi-pronged effort to roll out Just For U — which has reached its goal of signing up more than 5 million customers — Dietz has also overseen efforts surrounding Safeway’s private brands, its “Simple Nutrition” shelf tags and its price-value messaging. Before joining Safeway, Dietz spent nearly 20 years with Cincinnati-based Procter & Gamble. Read more: https://supermarketnews.com/retail-amp-financial/safeway-cmo-dietz-named-marketer-year#ixzz2HU4bEhNV
“Walmart CEO IDs Retail Industry’s Role in Economic Revival” at RIS. “In his keynote session address, “A Job to Do: Retail’s Role in an American Renewal,” Simon will make the case that today more than ever, the industry’s leadership is needed on critical issues such as the U.S. (and by extension the global) economy and job creation. Simon will speak on Tuesday, January 15 from 8:30 a.m. to 9:45 a.m. in the Javits Center’s North Hall. He will be joined by Toshiba Global Commerce Solutions CEO Steven Ladwig, and the session will also be live streamed simultaneously.” Read more: https://risnews.edgl.com/retail-news/Walmart-CEO-IDs-Retail-Industry-s-Role-in-Economic-Revival84139