Monday Tipsheet: Millionaires Prefer Costco/Target/H.Depot | Wmart Prefers Sustainable Palm Oil
“Millionaires Prefer Costco, Target, Home Depot” by Sarah Mahoney at Marketing Daily. “The American Affluence Research Center finds the country’s richest are looking forward to major home improvements, with the accompanying large furniture and durable good purchases that go with them, in the months ahead…The twice-yearly survey is based on a sampling of 330 adults, in households with a net worth of at least $828,000, and an average net worth of $3.1 million.” Read more
“Barron’s Cover Story: Buy Home Depot” at Timothy Kelleher Corp. “Seventy-eight percent of Home Depot’s stores were within 10 miles of a Sears location…The bank’s analysts estimate that Sears sells about $9 billion a year in appliances and home-improvement goods. If its sales decline by 5% in the next three years, Home Depot could add at least $100 million in yearly sales…That’s all the more reason Home Depot’s shares look cheap. Given the company’s continued operating improvements and growth potential, investors can buy the house now for the price of the two-by-fours.” Read more
“1 Strategy That May Allow Walgreen to Surpass CVS and Crush Rite Aid” at Motley Fool. “A transfer from the U.S. to Switzerland would decrease the company’s tax rate from an estimated 37.5% for its 2014 fiscal year to 20%. Using 2013’s pre-tax income of $3.9 billion, Walgreen’s bottom line of $2.45 billion would have increased 27% to $3.1 billion, which equates to a net profit margin of 4.3%.” Read more
“How a 13-Year-Old Got Her Fashion Line in Nordstrom” by Stephanie Vozza at Fast Company. “Whatever you want to do in life, chances are, someone else has been there, done that. Instead of admiring–or envying–their success from afar, savvy entrepreneurs tap one to be a mentor…Jennifer Jackson, the merchandising manager for children’s clothing at Nordstrom, told Women’s Wear Daily that Taylor has the “unique ability to create fun, stylish clothes that really represent her customer, who are also her peers.” Read more
“California company ‘represents a nightmare for the retail electronics industry’ “ at Orange County Register via SF Gate. “Off Interstate 15 is the 173,000-square-foot distribution facility and headquarters of Monoprice, an online store which is trying to thrive by selling the electronic esoterica that carry a hefty markup at brick-and-mortar retailers. Stuffed into one corner of the facility is a small physical store where you could pick up an HDMI cord for $3.61. A similar cord from Best Buy or RadioShack is about $20.” Read more
“Why Subway Doesn’t Serve a $14 Reuben Sandwich” by Michael Saltsman at WSJ. “Costco charges its customers as much as $110 a year for the privilege of shopping at the store. That’s a $2 billion-per-year luxury no grocer or restaurant enjoys. As a result, the warehouse retailer rakes in what amounts to a more than $10,000 profit per employee, according to data from business research company Hoovers. A casual dining restaurant, on the other hand, earns a roughly $2,000 profit per employee.” Read more
“General Mills ‘Stunning Reversal’: Go ahead and Sue” by Stephanie Strom at Star-Tribune. “The announcement was a stunning reversal for the company, which had quietly put up the new terms requiring consumers downloading coupons, “joining its online communities,” participating in sweepstakes and other promotions, and interacting with General Mills in a variety of other ways to agree to arbitration in lieu of suing the company in the event of a dispute.” Read more
“Clock is ticking for Walmart suppliers on certified sustainable palm oil” by Kim Souza at The City Wire. “In 2010, Wal-Mart made a public commitment to source 100% CSPO by the start of 2015 and it’s an important milestone the retailer plans to meet. The goal was one of several set by corporations coming under pressure from environmental groups to help stem the deforestation taking place in Malaysia and other developing countries to make room for tree plantations helping to fuel global demand.” Read more
Random: “Kraft recalls 96,000 pounds of Oscar Mayer wieners (there’s cheese in them)” by Jessica Wohl at Chicago Tribune. “A spokeswoman for Kraft said in an email that the recall is “isolated to about 8,000 cases of product that were distributed nationwide.” “We apologize for this situation and are working hard to communicate with consumers about it,” said Joyce Hodel, with Kraft Corporate Affairs.” Read more
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