Thursday’s Eye-on-Retail Tipsheet: Costco Sls Jump 4% | D.Gen +5.1% | Delhaize CEO Out


“Costco Same-Store Sales Jump 4% in August” – Company Press Release.  “Costco today reported net sales of $7.95 billion for the month of August, the four weeks ended September 1, 2013, an increase of seven percent from $7.44 billion during the similar period last year.  For the 16-week fourth quarter, the Company reported net sales of $31.8 billion, an increase of one percent compared to net sales of $31.5 billion in the 17-week fourth quarter of fiscal year 2012.”  Read more


“Costco’s August same-store sales beat estimates” at Reuters.  “Sales at stores open at least a year rose 4 percent, including the impact of fuel and foreign exchange, in the four-week period ended Sept. 1.  Analysts had expected same-store sales to rise 3.8 percent for the month of August…The company would open 15 new warehouses by the end of year, Jeff Elliot, assistant vice president of financial planning and investor relations, said in a pre-recorded conference call.”  Read more


“Dollar General Beats with 5.1% Same-Store Sales Growth in Q2” at Chicago Tribune.  “Same-store sales increased 5.1 percent. Analysts had expected such sales to rise 4.2 percent.  Along with beating the decline in same-store sales at Walmart U.S., Dollar General’s same store sales were better than a 3.7 percent increase at Dollar Tree Inc and a 2.9 percent increase at Family Dollar Stores Inc in the latest periods those rivals reported.”  Read more


“Trading Down Continues to Help Dollar General” by Paul Ziobro at WSJ.  “While big-box retailers such as Wal-Mart Stores Inc. and Target Corp. are losing traffic, shoppers—especially those on the lower rungs of the income ladder—are still turning up at dollar stores.  The latest evidence comes from Dollar General Corp., which reported a 15% increase in second-quarter earnings Wednesday, as same-store sales rose 5.1%. Overall sales rose 11%, as the company continues to quickly open more stores, bring its total to 10,866.”  Read more


“Delhaize America CEO out as grocery shakeups continue” by Ely Portillo at Charlotte Observer.  “The CEO of grocer Delhaize America resigned Wednesday, meaning Food Lion’s new chief executive will now report directly to the grocer’s parent company in Belgium while the company attempts its turnaround.  Roland Smith had been CEO of Delhaize America for less than a year… Food Lion chief executive Beth Newlands Campbell, along with the grocer’s other U.S. operations, will report directly to Delhaize Group’s new CEO in Brussels, a spokeswoman said.”  Read more


“Walmart workers planning massive strike today” by Charles McKeague at AJC.  “Thousands of Walmart employees are gearing up for a massive strike Thursday. Last week, fast food workers walked out on their jobs — demanding $15 an hour. Walmart employees are seeking similar wages.”  Read more


“Supermarkets Benefit from Cooperative Rather Than Competitive Response to Hard Discounters” from American Marketing Association.  “First, supermarkets close to the hard-discounter entrant are generally better off than those located further away, as consumers are in this case more inclined to combine visits to both stores. Second, rather than trying to catch up in price-sensitive categories, traditional retailers should focus on improving their offer in categories where they are already strong.”  Read more


“EPA Slams Safeway with $600K Fine” by Stephanie Lee at San Fran Chronicle.  “The settlement follows allegations by the U.S. Environmental Protection Agency that the Pleasanton grocery-store chain, the nation’s second largest, violated the federal Clean Air Act by failing to properly repair leaks of a gas that is used as a coolant in refrigerators.”  Read more


“RetailMeNot Shoppers Trend Report: A Whopping 92% of American Consumers Are Coupon Users”  “While printable coupons remain the most widely used type of coupon (60%), online coupon usage has nearly doubled (29% vs. 16% three years ago) and mobile coupon usage has nearly tripled in the past three years (10% vs. 4% three years ago).”  Read more


“Coming soon: 334 pot stores in Washington state” by Bob Young at Seattle Times.  “Retail stores would be allocated by population and accessibility, in a system similar to the one used for defunct state liquor stores. That system sought to have stores within a 15-minute drive for 95 percent of the population.”  Read more


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