Thursday Tipsheet: Target: Hacking Issue ‘Resolved’ | Sam’s Wants 10/Yr in China | Amazon & Fake Babies


Target Releases Statements on Data Breach; Says Issue Has Been “Identified and Resolved”:

“Target Confirms Unauthorized Access to Payment Card Data in U.S. Stores”  “Target is working closely with law enforcement and financial institutions, and has identified and resolved the issue…Approximately 40 million credit and debit card accounts may have been impacted between Nov. 27 and Dec. 15, 2013.”  Read the Statement


“Target Releases “Dear Guest” Letter;  Says Hack Didn’t Effect or Canada”  “We have determined that the information involved in this incident included customer name, credit or debit card number, and the card’s expiration date and CVV (the three-digit security code)…We recommend that you closely review the information provided in this letter for some steps that you may take to protect yourself against potential misuse of your credit and debit information.”  Read more


“Target Breach:  Could the Timing Be Any Worse?” by Steve Alexander and Jennifer Bjorhus at Star-Tribune.  “It’s uncertain whether the news could depress Target sales during the rest of the holiday season. But Krebs said Target could pay a price if banks look to recover costs stemming from the security breach from the retailer.”  Read more


“Amazon:  Save Money.  Have a Fake Baby” by Matthew Yglesias at Slate.  “If you join Amazon Mom, those savings get kicked up a notch to 20 percent. And there’s no monthly fee and no extra commitment to buy stuff. You just need to tell Amazon some stuff about your baby…Except your baby can be fake. My baby, Tim Duncan Crawford, named after my wife’s favorite basketball player and given her surname, was born on Dec. 14. Except he’s just a lie I created to get cheaper soap.”  Read more


“Wal-Mart to Expand Sam’s Clubs in China” by Laurie Burkitt at WSJ.  “There are 550 Sam’s Club stores in the U.S. and 300 million people, said Mr. Foran, speaking to reporters on Wednesday. “There are 10 Sam’s Clubs here,” he said, noting that there are 1.34 billion people and few rivals in the space. Wal-Mart will open two more Sam’s outlets in China in 2014, but he hopes to boost the rate of growth each year after until it reaches 10 new stores per year in six to seven years.”  Read more


“Jim Cramer: The Enormous Value of Employee Retention at Costco & Whole Foods” at CNBC.  “Jim Sinegal, the now-retired CEO of Costco and the most revered retailer alive, has insisted to me over and over again that Costco has become great because there is virtually no turnover. So this, and not just the membership card, is the real Costco advantage, as it lowers the cost of a store by 30% to 40% vs. the competition.”  Read more


“Walmart:  $200 Million Duck Dynasty Empire at Stake after Stars Anti-Gay Comments” by Clare O’ Connor at Forbes.  “What, then, will Walmart do? The big box giant is responsible for about 50% of this year’s incredible $400 million in Duck Dynasty-related retail sales, with Phil Robertson’s mug gracing its bestselling t-shirt in both men’s and women’s apparel.” Read more


“The Whole ‘Amazon Competes With Costco’ Story Is Unrealistic” by Paulo Santos at Seeking Alpha.  “ has more than 3 times the selling, general and administrative costs of Costco. Just shipping the product out to the customers exceeds Costco’s entire cost base. And the picking, packing, paying and warehousing the products also exceeds Costco’s entire cost base.”  Read more


“Target CEO Issues Rare Statement to Reassure Wall Street” by Thomas Lee at Star-Tribune.  “Amid tepid expectations for holiday sales, Target Corp. issued an update Wednesday saying that it is satisfied with how it has fared so far this season…“I’ve never seen them do this,” said Brian Yarbrough, a retail analyst with Edward Jones Investments in St. Louis.”  Read more


“Walmart:  Judge Tosses $1 Mil Intercom Lawsuit:  Not Responsible for Teen Who Ordered Black Shoppers to Leave the Store” by Jim Walsh at USA Today.  “The lawsuit asserted Battie was in the Black Horse Pike store in March 2010 when a youth announced over the public-address system: “Attention, Walmart customers: All black people must leave the store.”  The lawsuit described the incident as an “imminent terrorist threat” that caused emotional distress and resulted in “substantial sickness” for Battie.” Read more


“Alaska U.S. Senator Pens Letter to Incoming Walmart CEO” by Mike Mason at KDLG.  “U.S. Senator Lisa Murkowski is continuing to lobby the largest retailer on earth to carry products made with salmon from Alaska. On Wednesday Senator Lisa Murkowski sent a letter to the incoming CEO of Walmart outlining her concerns with the current purchasing practices of Walmart in regards to salmon from Alaska.” Read more


Follow @retaileyeretail