Eye-on-Retail Tipsheet 4/17/13: 94% stick with Private Label; Lowe’s new ‘DIY College’


“Americans sticking with cheaper store brands, Deloitte survey finds” at Life Inc.  “Deloitte’s annual American Pantry Study out Tuesday shows nearly nine in 10 consumers are substituting private-label, or store, brands for national brands they’ve regularly bought in the past.  The survey, which was conducted in January, also finds 94 percent of Americans indicate they will remain cautious and keep their spending for food, beverage and household goods at its current level despite the stronger economy and climbing stock market.”  Read more:  Read more:  https://lifeinc.today.com/_news/2013/04/16/17778843-americans-sticking-with-cheaper-store-brands-survey-finds?lite


“Target’s first-quarter forecast gets a little more gloomy” by Dee Depass at Star Tribune.  “Analysts believe spring clothing on Target’s racks probably proved a hard sell during the quarter, as cold temperatures and late snowfalls clung to pockets of the country.  Target expects that revenue for stores open at least a year will be flat for the quarter.”  Read more:  https://www.startribune.com/business/203316331.html


“Lowe’s Canada welcomes “Build-It-Yourself Learning Centres” at WSJ.  “Founded by master contractor & HGTV expert, Jim Caruk, BiY emerged in direct response to overwhelming fan feedback on the absence of specialised home improvement skills training options. Now, for novice and seasoned enthusiasts alike, BiY delivers with unprecedented access to a wide variety of customised, hands-on workshops that ensure projects get done safely, correctly and with confidence…Build-it-Yourself Learning Centres are proudly partnered with sponsors Elmer’s, Kohler, Stanley DeWALT, and Valspar.”  Read more:  https://online.wsj.com/article/PR-CO-20130416-908420.html?mod=googlenews_wsj


“Forget Gold, the Gourmet-Cupcake Market Is Crashing” by Maltby & Needleman at WSJ.  “After trading at more than $13 a share in mid-2011, Crumbs has sunk to $1.70. It dropped 34% last Friday, in the wake of Crumbs saying that sales for the full year would be down by 22% from earlier projections, and the stock slipped further this week…Crumbs now has 67 locations, nearly double the number it had less than two years ago. “These are singularly focused concepts,” says Darren Tristano, executive vice president at Technomic Inc.”  Red more:  https://online.wsj.com/article/SB10001424127887324345804578425291917117814.html?mod=outsidein&utm_source=twitterfeed&utm_medium=twitter


“Target’s Canadian foray risky, unlikely to meet targets: UBS” by Keith and Verma at The Globe & Mail.  “Target Corp.’s expansion in Canada is risky, given how little time the retailer will have to test its format in this country, warns UBS Securities analyst Jason DeRise…Target’s 2017 goal requires higher sales per square foot and 200 basis points more EBITDA margin versus its current U.S. stores. Mr. DeRise sees a “low probability” of Target achieving this.”  Read more:  https://www.theglobeandmail.com/globe-investor/inside-the-market/targets-canadian-foray-risky-unlikely-to-meet-targets-ubs/article11256362/


“The risks of the Google Glass dork factor” by Therese Poletti at MarketWatch.  “Last week, along with Google’s venture capital arm, Kleiner Perkins Caufield & Byers and Andreessen Horowitz created an investment vehicle called the Glass Collective. The goal is to invest in developers and startups with ideas for software, hardware, apps and accessories that will create an ecosystem for Google Glass, and discover all the things that can be done with the sci-fi looking glasses…The view that the glasses may appear to some as a geeky fashion statement means that they may only initially appeal to tech nerds, who tend to be the early adopters of new gadgets. Whether or not that could hamper eventual widespread adoption is a big question.”  Read more:  https://www.marketwatch.com/story/google-glass-has-interest-hype-and-risk-2013-04-16?link=sfmw


“Is Retail Therapy for Real? 5 Ways Shopping Is Actually Good for You” by Kit Yarrow at Time.  “Shopping can be a rich source of mental preparation. As people shop, they’re naturally visualizing how they’ll use the products being considered, and in doing so they’re also visualizing their new life. And as many great athletes will attest, visualization is a performance booster and an anxiety reducer.”  Read more:  https://business.time.com/2013/04/16/is-retail-therapy-for-real-5-ways-shopping-is-actually-good-for-you/#ixzz2QiczPaIx


“Is Walmart Signaling the End of China’s Global Dominance?” by Eric Schaal at Wall St. Cheat Sheet.  “Walmart will spend $50 billion in the coming decade in an attempt to tap into an American supplier market where fewer disruptions in production occur and energy prices remain low. The company’s willingness to look within suggests the shipping and related costs are weighing on Walmart’s profit margin…As Duncan Mac Naughton, the company’s chief merchandising and marketing officer, told Time recently, “When we buy overseas, we may buy more than we need to fill the container.”  Read more:  https://wallstcheatsheet.com/stocks/is-walmart-signaling-the-end-of-chinas-global-dominance.html/


“Tesco quits US as profits fall for first time in 20 years” by Reuters via The Economic Times.  “Tesco, Britain’s biggest retailer, will exit its loss-making business in the United States, taking a $1.5 billion writeoff that caused its annual profit to fall for the first time in 20 years.”  Read more:  https://economictimes.indiatimes.com/news/international-business/tesco-quits-us-as-profits-fall-for-first-time-in-20-years/articleshow/19593819.cms


“In Survey, 17% Said They Would Buy Life Insurance At Wal-Mart, Costco” by Matthew Sturdevant at The Hartford Courant.  “”In light of the novelty of the concept and that few people have actually shopped for life insurance through a retail outlet, there is likely to be considerable confusion in the eyes of the consumer as to what such a purchasing experience might entail,” Silverhart said in a prepared statement. “For carriers seeking a niche market, retail ventures could be a worthy approach.”  Read more:  https://www.courant.com/business/connecticut-insurance/hc-life-insurance-walmart-20130416,0,5031182.story


Thanks for reading…


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