Tipsheet: Sbucks CEO’s Advice to Target | Sanders Doesn’t Bern Wmart (For Once) | Nordstrom’s Snapchat Win | 50% are Prime Members
Nearly half of U.S. households belong to Amazon Prime by Rachel Lerman at Seattle Times. “Piper Jaffray says households that make more than $112,000 annually are the most likely to subscribe to Prime…Nearly three-fourths of high-income households subscribe to the service, according to the report, an increase from about 55 percent in 2014.” Read more | PiperJaffray report
This Is Starbucks CEO Howard Schultz’s Advice to Target by Phil Wahba at Fortune. “Schultz told the Target audience that focusing on the basics was the key to the Starbucks’ renaissance. “For the Starbucks team, it all comes back to one person, one cup, one community, and getting the details right,” he said. “We needed to get back to basics, the values that our customers fell in love with in the first place.” Read more
How Nordstrom targeted colleges and boosted its Snapchat follower count by 60 percent by Clare McGrane at GeekWire. “University of South Carolina rose to the occasion, winning the challenge with just under 2,000 screenshots, said Nordstrom spokesperson Dan Evans. The prize was an on-campus shoe party on April 12. The event featured a guest appearance by supermodel and entrepreneur Karlie Kloss and a giveaway of $200,000 worth of Nordstrom shoe vouchers.” Read more
Walmart Execs Relieved Sanders Pulled His Punches At Sharpton Convention by Darren Sands at BuzzFeed. “Executives from Walmart, a big time sponsor of the Rev. Al Sharpton’s National Action Network convention, were nervous Bernie Sanders might go on the attack about Walmart in his pitch, as he is wont to do. Bernie camp says they just got a free pass.” Read more
Americans prefer to save money rather than spend more on U.S.-made products via Daily News. “Asked about a real world example of choosing between $50 pants made in another country or an $85 pair made in the United States — one retailer sells two such pairs made with the same fabric and design — 67% say they’d buy the cheaper pair. Only 30% would pony up for the more expensive American-made one…People in higher earning households earning more than $100,000 a year are no less likely than lower-income Americans to say they’d go for the lower price.” Read more
Amazon eyed up Everlane, Le Tote and more for acquisition in a wider fashion push by Ingrid Lunden at TechCrunch. “TechCrunch has learned from multiple sources that the e-commerce giant has eyed up several startups in the fashion sphere as potential acquisitions to update and expand its presence in the category. Everlane, Le Tote, Rent The Runway, Third Love and PreeLine are among the names we’ve heard in connection with the effort. “They are losing big time in apparel and are anxious to acquire brands,” one founder approached by the company told TechCrunch.” Read more
**A message from 2016 Sweets & Snacks Expo – the Show Floor is Sold Out! The 2016 Expo will set an all-time record in volume of confectionery and snack products with more than 720 companies showcasing nearly four acres of product innovation. The Sweets & Snacks Expo is the one place more confectionery and snack retailers and manufacturers come together to get inspired, make connections and find new best sellers. See all of this year’s exhibitors | 2016’s New Exhibitors | These retail execs will be taste testers
California fast-food workers shift focus from minimum wage to unionizing by Samantha Masunaga at LA Times. “The demand from the original strikes in 2012 was $15 and a union,” said Mary Kay Henry, international president of the SEIU. “Underpaid workers in California are now on a path to $15, but we think the way we can make these jobs good jobs … is through a union.” Read more
Pier 1 Imports’ Q4 2016 Results – Earnings Call Transcript Read the transcript
Home Depot employee tips off police about alleged pipe bomb maker at KMOV 4 St.Louis. “Herr allegedly asked the staff at Home Depot to cut it into 7.5 inch sections with each end threaded for a cap. Home Depot employees became suspicious and called police. Officers said they eventually executed a warrant at Herr’s hotel room at a Super 8 and found materials for making a pipe bomb.” Read more / See the video
Amazon creates homeless refuge on company site near HQ by Monica Nickelsburg at GeekWire. “Amazon now appears to be taking a more active role in addressing homelessness. The company is partnering with the non-profit Mary’s Place to create a temporary shelter for 60 to 70 homeless families…” Read more
China Halts Export-Subsidy Program After U.S. Challenge by William Mauldin at WSJ. “The subsidy program benefited seven industries, including textiles and seafood, by giving companies a small but crucial advantage in exports, contrary to the rules of the WTO, U.S. officials said.” Read more (subscription)
Consumer Reports in the Age of the Amazon Review by Paul Hiebert at The Atlantic. “…the researchers found that consumers tend to accept as true the collective wisdom that Amazon conveys about a particular item’s durability, safety, and performance. “We don’t want to say that online reviews are completely untrustworthy and have no value whatsoever,” Bart de Langhe, an assistant professor of marketing at the University of Colorado Boulder and the co-author of the study, told me. “But we do want to point out there are strong issues with them…” Read more
Tipsheet Extra Stories
Why Target’s iPad App Has Vanished From Apple’s App Store
Georgia firm would process chickens for Costco at Fremont plant – company faced past immigration raid
Walmart taps Univ. of Arkansas fashion design program
Canadian Tire’s augmented reality catalogue doesn’t cut out the paper
Fisher-Price recalls over 30,000 cradle swings due to fall hazard
The same guy who built the Amazon Echo just built the $700 magic juicer
Amazon renews vows with its online wedding registry
QUICK-SUBSCRIBE to Eye on Retail Tipsheet here