Eye-on-Retail Tipsheet 4/26/13: Walmart Chasing Publix | Amazon’s Profit Dips

 

“Walmart U.S. could learn from its sister chain Asda” by Andria Chang at Market Watch.  “Asda offers online groceries that she said could reach 98% of Britain’s population. It also has Asda direct non-food site; its George.com apparel delivers across Europe; and mobile commerce is 16% of its online sales.   Meanwhile, the chain allows customers to order online and pick up general merchandise within two hours in all stores and pick up groceries in more than 100 stores. It also offers free in-store Wifi.  “We believe that ASDA’s expertise with these technologies could be the secret sauce that gives WMT an advantage in the race to develop online grocery in the U.S., which we view as an attractive growth opportunity for U.S. food retailers,” Weinswig said.”  Read more:  https://blogs.marketwatch.com/behindthestorefront/2013/04/25/walmart-u-s-could-learn-from-its-sister-chain-asda-analyst/

 

“Amazon’s success formula: move bits instead of boxes” at Reuters.  The Internet retail giant that once specialized in moving books and other physical items quickly is increasingly trying to do the same in the digital world, where profit margins are higher, partly because e-books, music and video files and are transmitted electronically at high speed.  Throw in a fast-expanding third-party merchant business, where Amazon simply books a cut of sales from seller listings on its website, and the retail giant’s margin outlook is looking a lot better.”  Read more:  https://www.reuters.com/article/2013/04/26/us-amazon-results-digital-idUSBRE93P09820130426?feedType=RSS&feedName=businessNews

 

“Amazon posts lower profit but beats forecast” by Amy Martinez at Seattle-Times. “The world’s largest Internet retailer reported $16.07 billion in quarterly sales, about $70 million less than Wall Street expected. Meanwhile, it posted a profit of $82 million, or 18 cents a share, down from $130 million, or 28 cents, a year ago.”  Read more:  https://seattletimes.com/html/businesstechnology/2020861542_amazonearningsxml.html

 

“Safeway’s revenue misses expectations as company holds down prices amid competition” by AP via Washington Post.  “Safeway said revenue at stores open at least a year rose 1.5 percent during the quarter. Part of the increase was result of shift in the calendar, which moved New Year’s holiday sales into the period.”  Read more:  https://www.washingtonpost.com/business/safeways-profit-climbs-in-first-quarter-on-tax-benefit-key-sales-figure-rises/2013/04/25/ac912950-adac-11e2-b240-9ef3a72c67cc_story.html

 

“Walmart CTO Chip Hernandez: ‘Everyone’s going digital'” by Andrew Nusca at ZD Net.  “Speaking this morning at the Bloomberg Enterprise Technology Summit, Hernandez explained how his company was, from a technology perspective, dealing with the reality that both its employees and its customers are walking into stores with digital devices in hand.”  Read Hernandez’s comments:  https://www.zdnet.com/walmart-cto-chip-hernandez-everyones-going-digital-7000014466/

 

“Nine most damaged brands in the U.S.” at Market Watch.  “Brand reputations are among the most prized assets major corporations have. A look at relevant surveys shows that brand valuations are often so high that they compare to the market values of the public companies that own them.”  See the list:  https://www.marketwatch.com/story/nine-most-damaged-brands-in-the-us-2013-04-25?link=sfmw

 

“Nash Finch reports 62 percent decline in earnings” by Mike Hughlett at Star-Tribune.  “Grocery wholesaler Nash Finch Co. on Thursday reported a 62 percent decline in quarterly earnings over a year ago, pinched by thinner profits in its military distribution business.  The company posted first-quarter net income of $2.1 million, or 16 cents per share, down from $5.5 million, or 42 cents per share, a year ago.”  Read more:  https://www.startribune.com/business/204680451.html

 

“Walmart expanding grocery offerings in South Florida, area dominated by Publix supermarkets” by Miriam Valverde at Sun-Sentinel.  “But now Walmart is intent on grabbing a bigger piece of the grocery business. The retail giant is opening and expanding stores throughout South Florida neighborhoods, often just around the corner from Publix stores…Publix owns a 52.8 market share in South Florida, according the The Shelby Report, a Georgia-based food and grocery industry publication. Walmart currently holds a 14.7 percent share of the South Florida market.”  Read more:  https://www.sun-sentinel.com/business/fl-walmart-vs-publix-20130425,0,6989471.story

 

“Walmart Canada Reveals Raccoon Repellent Garbage Bag”  “Great Value Mint-X bags are proven effective at repelling rodents because an all natural, mint scented fragrance that is added to the plastic during the manufacturing process. In a study conducted by the University of Maryland, School of Medicine Comparative Medicine Program in 2011, two bags are placed in a test area over a seven day period, one Mint-X bag and one standard untreated bag, both filled with standardized food. In this test, the Mint-X bag proved 100% repellence of raccoons, while the non-Mint-X bags were penetrated 67% of the time.”  Read more:  https://media.prnewswire.com/en/jsp/latest.jsp?resourceid=6726484&access=EH

 

“$2 Trillion Underground Economy May Be Recovery’s Savior” by Mark Koba at CNBC.  “”You normally see underground economies in places like Brazil or in southern Europe,” said Laura Gonzalez, professor of personal finance at Fordham University. “But with the job situation and the uncertainty in the economy, it’s not all that surprising to have it growing here in the United States.”  Read more:  https://www.cnbc.com/id/100668336

 

Thanks for reading…have a great weekend.

 

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