Eye-on-Retail Tipsheet 2/20/13: Amazon should buy RadioShack; Target ready for Canada


“Amazon should just buy RadioShack” by Gina Chon at Quartz.  “The scenario of Amazon acquiring an ailing brick-and-mortar retailer like RadioShack, Sears or Best Buy (the latter two of which have market caps in the $5 billion range), has been talked about in the tech and dealmaker community. Such a move could give Amazon regional warehouses, a place for customers to pick up deliveries, and a storefront for popular items.  These locations could help Amazon as it expands into areas such as groceries that could benefit from same-day delivery or pickup. They might even become virtual showrooms where shoppers can place orders.”  Read more:  https://qz.com/54512/amazon-should-just-buy-radioshack/


“Hi Neighbour: Target Readies for its Canadian Invasion” by Dale Buss at brandchannel.  “”If we came to Canada and didn’t offer ketchup-flavored potato chips, then we would have looked like we didn’t know what we are doing,” Target Canada President Tony Fisher told the Minneapolis Star-Tribune. “We have to understand local preferences of local markets and adapt to local merchandising strategies.”  For instance, Target has hooked up with iconic Canadian apparel brand Roots (a Canadiana chic brand founded by two Americans) for a limited-edition collection specific to the new Target stores…Among competitors, Canada-based chains Loblaw and Canadian Tire will face heavy overlap with Target in certain areas of merchandise, and in turn have been cutting costs and otherwise hunkering down for the battle that will commence soon with Target.”  Read more:  https://www.brandchannel.com/home/post/2013/02/19/Target-Canada-021913.aspx


“The World’s 50 Most Innovative Companies 2013” in Fast Company.  “Our annual guide to the state of innovation in our economy, featuring the businesses whose innovations are having the greatest impacts across their industries and our culture as well.  (Amazon #2, Target #10).  Read more and see full list:  https://www.fastcompany.com/section/most-innovative-companies-2013?utm_source=twitter


“Wal-Mart’s Slow U.S. Growth Needs International Muscle To Drive Earnings” at Trefis.  “With less than 30% of overall revenues, Wal-Mart’s international segment accounts for about 40% of its stock value according to our estimates. Emerging markets provide significant scope for expansion for the retailer along with a huge pool of value conscious customers and its proven business model. As Wal-Mart’s U.S. faces an increasingly saturated domestic market, we believe the majority of its growth will come from international markets.  The retailer had planned to open 20-25 smaller format Wal-Mart Express stores in the U.S. in Q4 fiscal 2013. [6] Since these stores are Wal-Mart’s pilot program and have performed well, it will be interesting to see how the retailer goes ahead with its expansion.  Last year Wal-Mart decided to slow down its expansion in Brazil and Mexico to build a strong foundation for comparable store sales growth.”  Read more:  https://www.trefis.com/stock/wmt/articles/169235/wal-marts-international-growth-is-a-key-driver-to-earnings/2013-02-19


“Tesco voted UK’s least popular supermarket” at My Retail Media.  “Tesco has been voted the UK’s least popular supermarket in a survey conducted by Which?  Conversely, Waitrose received a satisfaction rating of 82 per cent.  Tesco scored only 45 per cent, placing it firmly at the bottom of the poll which recorded the opinions of 11,492 consumers.  Aldi and Lidl came second and third place respectively with scores of 74 per cent and 69 per cent.”  Read more:  https://www.myretailmedia.com/blog/8345/tesco_voted_uk_039_s_least_popular_supermarket.php


“Costco Teamsters Ratify Three-year Contract.”  “The annual pay increases over the three years of the contract will bring the hourly wage rate for clerks to$22.87…With this new agreement, Costco workers’ average pay is more than 42 percent higher than its rival, Sam’s Club, which is owned by Walmart.”  Read more:  https://media.prnewswire.com/en/jsp/latest.jsp?resourceid=6335034&access=EH


“Amazon opens celebrity memorabilia store” by Donna Tam at CNET.  “Here’s one way to get into Milla Jovovich’s shorts. Amazon launched its Entertainment Collectibles store today, selling celebrity memorabilia just in time to capitalize on the frenzy created by the Grammys and the Oscars.  One item for sale is the stained pair of shorts worn by Jovovich in “Resident Evil: Extinction.” They can be yours for the low, low price of $2,999.99.  They’re just one of more than 350,000 collectibles featured at the new store.”  Read more:  https://news.cnet.com/8301-1023_3-57570123-93/amazon-opens-celebrity-memorabilia-store/


“The Home Depot To Present At Raymond James 34th Annual Institutional Investors Conference (3/4/13)”.  “The Home Depot, the world’s largest home improvement retailer, today announced that Kevin Hofmann, president, Online will present at the Raymond James 34th Annual Institutional Investors Conference in Orlando, Florida. The presentation will begin at 8:05 a.m. ET on March 4, 2013.  The presentation will be webcast live over the internet at https://ir.homedepot.com”  Read more:  https://media.prnewswire.com/en/jsp/latest.jsp?resourceid=6328854&access=EH


“Sears shifts gears and sets sight on busy urbanites” by Corilyn Shropshire at Chicago Tribune.  “With the new program, Mygofer Express, Sears is expanding its sights beyond its prized, typically suburban “chief household officer” customer to busy, urban professionals who want to avoid the hassle of shopping and grab a bag of pre-ordered items — everything from groceries and kitchen appliances to over-the-counter drugs — on their way to the train or to their downtown lofts.    “If I’m at work and I need to pick up a few things, I may not have the opportunity to shop at a store, I just have enough time to stop at a store,” says Kevin Lyons, Sears Holdings divisional vice president of integrated retail experience. “I might want to pick up some cupcakes … a blender from Sears and a case of popcorn from Kmart. I can get those all in one place at the express location.”  Read more:  https://articles.chicagotribune.com/2013-02-14/business/ct-biz-0214-sears-20130214_1_sears-holdings-sears-spokesman-chris-brathwaite


“Kroger Names Robert Clark as Group Vice President of Non-Perishables”  “Mr. Clark began his career with Kroger in 1985 as a courtesy clerk at Fry’s Food Stores in Arizona. Since then, he has held various leadership positions, including store and district management, as well as in grocery merchandising. In 2002, Mr. Clark was promoted to vice president of merchandising at Fry’s. In 2010, he was named vice president of operations for the Columbus Division before moving into his current position in October 2011.  Kroger, one of the world’s largest retailers, employs more than 339,000 associates who serve customers in 2,422 supermarkets and multi-department stores in 31 states.”  Read more:  https://media.prnewswire.com/en/jsp/latest.jsp?resourceid=6328675&access=EH

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