Friday Tipsheet: Safeway Roof Collapses | Lowe’s Analyst Highlights | Target Picks Memphis
NRF: Retail Sales Up 0.6% in November by Stephen E. Schatz. “Gains were consistent with NRF’s holiday sales forecast, which anticipates an increase of 4.1 percent over last year.” Read more
The price is (no longer) right: Retail’s big game by Krystina Gustafson at CNBC. “Amazon and Sears are the most dynamic retailers. They can alter what they charge on 15 to 20 percent of their assortment at least one time a day during regular shopping periods. Wal-Mart falls in the midrange, changing prices on about 6 to 8 percent of its assortment on a daily basis.” Read more
Target hacking-case judge voices doubt on claim nobody hurt by Beth Hawkins & Andrew Harris at Bloomberg via Star-Tribune. “You have people here who were honest-to-goodness hurt, who were injured,” U.S. District Judge Paul Magnuson told the company’s lawyer, Harold McElhinny, at a hearing Thursday in St. Paul. “Now, whether that’s Target’s fault is for another day.” Read more
San Jose: Storm-battered roof collapses onto produce section at Safeway by Robert Salonga at San Jose Mercury News. “The produce section at an East San Jose Safeway got more than its usual misting Thursday when a storm-battered roof collapsed, exposing a 50-square-foot section of the store. No one was seriously injured when the roof gave way about 4 p.m. at the store at East Capitol Expressway and Silver Creek Road.” Read more
Kroger chairman steps down by Alexnader Coolidge at Cincinnati.com. “Kroger’s chairman and former CEO David Dillon will retire Dec. 31 after 38 years with the company. Dillon, 63, who served as CEO from 2003 to 2013, will be replaced as chairman by Rodney McMullen” Read more
Target picks Memphis for $50M distribution center by Ryan Poe at Memphis Business Journal. “Target will open its new online fulfillment center in the 900,000-square-foot industrial building at 5461 Davison Road. Hiring will begin in early 2015, with the center becoming operational by mid-2015, the release said.” Read more
Shareholder adviser to Family Dollar: Delay vote by Matt Townsend at Bloomberg via Charlotte Observer. “Family Dollar Stores investors should oppose the current Dollar Tree takeover offer and postpone a Dec.23 meeting to vote on the deal, shareholder adviser Institutional Shareholder Services Inc. said.” Read more
Best Buy apologizes for Serial tweet by Kavita Kumar at Star-Tribune. “Best Buy found itself hustling Thursday afternoon to retract a tweet some found insensitive related to a closely-watched murder case.” Read more
Target holds job fair for new Hawaii store at KITV ABC 4. See the video
Lowe’s Outlines Strategic Priorities and Long-Term Financial Targets “Total sales are expected to increase 4.5 to 5 percent. Comparable sales are expected to increase 3.5 to 4 percent. The company expects to open 6 home improvement and 4 hardware stores.” Read the release
Lowe’s Signs Deal for Chelsea NYC Flagship by Lauren Elkies Schram at Commercial Observer. “A spokeswoman for SL Green declined to cite rents, but said the store is slated to move into the basement, ground floor and second floor in the second quarter of 2015.” Read more
Lowe’s: Heard on Yesterday’s Analyst & Investor Conference
Canada
Lowe’s plans to open 25 new stores over next three years (Total of 62 stores in Canada by end of ’17)
Opportunity for 100 stores in Canada of varying formats
Mexico
Will open five new stores over next three years (Total of 15 stores in Mexico by end of ’17)
Testing the model to make sure it’s right
Australia
Slowing pace of expansion
Plans to open 30 new Masters stores over next three years (Total of 79 Masters stores by end of ’17)
Manhattan & City Center Concept
Lowe’s is entering Manhattan with two new urban stores in ’15
Open to accelerating concept if test goes well
Stores are 30K square feet and have a multi-story layout
Orchard Supply
Plans to open up to 40 stores over next three years
Sherwin-Williams Paint Exclusive
Lowe’s announces new HGTV Home by Sherwin-Williams paint line
Says this is the first time in more than 40 years that Sherwin-Williams has made its brand available in another retailer
National Brand New Additions
2014: GRK Fasteners, Hubbell, Pella, Henry, Progress Lighting
2015: Rinnai, Culligan, Goldblatt tools, GAF roofing, Owens Corning, Lennox, Troy Bilt Flex, Sherwin-Williams
Notable
70% of online orders are picked up in store or delivered by the store
“Our business is sound and our brand is strong” (Robert Niblock)
Private brands account for about 20% of sales
U.S. accounts for 98% of sales today
Orchard platform able to offer brands not available in larger home improvement stores (Benjamin Moore, Craftsman, Carhartt, Dr. Earth)
Listen to Webcast (2 hrs 43 min) / See Exec Presentations
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