Tipsheet: Wmart +1.8% | Costco Golf Ball Countersuit | Target Teams w/Barnes & Noble | Saks +1K India Center
Wal-Mart beats – U.S. comp sales climb 1.8% as online purchases grow 60% at CNBC. “This isn’t a blow-away report … it’s a solid report,” Gordon Haskett analyst Chuck Grom told CNBC’s “Squawk Box” on Thursday. “In the grand scheme of things, we’ve seen a lot of bad numbers out of retailers this past week.” Read more | Press release
Target to partner with Barnes & Noble College by Dan DeBaun at Minneapolis/St.Paul Business Journal. “For those campuses that aren’t lucky enough to have one of the new small-format stores, we’re partnering with Barnes & Noble College, which operates nearly 800 college stores around the country, to offer the Target assortment to more than 5 million students,” Tritton said.” Read more
…See Target earnings call highlights below
Stein Mart Q2 Comp Sales -5.0% “Our second quarter sales trends improved from the first quarter and were strongest in July as we more aggressively priced our clearance merchandise,” said Hunt Hawkins, Chief Executive Officer.” Press release
The Buckle Q2 Comp Sales -7.7% Press release
Stage Stores Q2 Comp Sales -3.6% Press release
Titleist fires back with 284-page countersuit against Costco golf ball by Mike Stachura at Golf Digest. “If you thought that lawsuit over the cult favorite Kirkland Signature golf ball sold at Costco and Acushnet, the parent of the game’s top-selling golf balls under the Titleist brand name, was withering away into oblivion, think again. Nearly five months after Costco, the U.S.’s largest membership-only warehouse club, filed a lawsuit in U.S. District Court seeking a declaratory judgment that its ball was not infringing on any Acushnet patents.” Read more
Alibaba Group Announces June Quarter 2017 Results – Revenue from core commerce increased 58% year-over-year Press release
Saks Fifth Avenue sets up 1,000-seat centre in India at The Times of India. “The centre has started functioning with a few tens of employees…”This centre will house approximately 450 highly talented individuals in the first two years and the office has potential to expand as the business grows.” Read more
**A message from Pirola – Italian made, designer-inspired ironing boards add spice to any home. Exclusively made in Italy for 45 years, these high-quality boards bring design and excitement to the category. Featuring the Arco board from the Design Line and the Luna board from the Plus Line. Custom colors and designs available. Website. Request samples at email@example.com. Italy to U.S. product connection
Sears Canada exec quits to assemble purchase bid by Lisa Fickenscher at NY Post. Read more
Walmart reveals the most bizarre top seller in every state by Hayley Peterson & Skye Gould at Business Insider. List of 50 states
Overstock looking to gain advantage with potential 2-day delivery by Josh Kosman at NY Post. “In the event of a deal, Overstock would be able “to outsource all of its warehousing, distribution, transportation, returns, and last-mile deliveries to XPO,” a source close to the situation told The Post. “Overstock [would] be able to become the first retailer to offer two-day delivery to 87 percent of consumers in the US. By selecting XPO, Overstock [would] leapfrog Wayfair,” the source said.” Read more
Amazon’s private label business is booming by Sarah Perez at TechCrunch. “During the first half of the year, Amazon’s private labels accounted for just 2 percent of total units sold, excluding marketplace and subscriptions, but the retailer boosted that figure to 12 percent during Prime Day, the report found.” Read more
UK retail sales grow modestly at 0.3% at Fox Business. Read more
Inc. 5000 2017: The Full List
Former Wal-Mart US CEO: I’d probably figure out a way to work with Trump by Michelle Fox at CNBC. “I wouldn’t go to dinner with him but I would probably figure out a way to work with him,” (Bill) Simon added, noting that he is in no way defending what Trump said.” Read more
SpartanNash Consolidated Net Sales Increase 3.7% Driven by Growth in Food Distribution Segment Press release
…SpartanNash Names New CFO (Ex-United Natural Foods CFO) Press release
LL Bean boosting production of iconic boot at AP via AJC. “…with a new manufacturing center that’s being unveiled Thursday. The company also plans to hire more than 100 additional production workers at two locations in Maine.” Read more
Couple used website glitch to try to scam Lowe’s out of $258,000 at USA Today. “Brick police and prosecutor’s office detectives searched the couple’s home, which detectives later said looked more like a warehouse, and seized enough merchandise to fill a 18-foot trailer, according to the release.” Read more
BET founder’s daughter suspended from equestrian competition after Walmart gaffe by Matt Morgan at Palm Beach Post. “Johnson’s competition includes Jessica Springsteen, the daughter of singer Bruce Springsteen; Georgina Bloomberg, whose father is former New York major Michael R. Bloomberg; Bill Gates’ daughter Jennifer; Destry Spielberg, the daughter of director Steven Spielberg; and Eve Jobs, daughter of the late Steve Jobs.” Read more
Sports bars in cities with NFL teams saw a 12% drop in foot traffic on NFL Sundays during the 2016 season at Fox Business. Read more
‘Do NOT look at the hoochies!!!’: H-E-B exec finds grocery list with hilarious request at KSAT 12 ABC. Grocery list/Read more
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Samsung Galaxy Note 4 refurbished batteries get recalled due to overheating concerns
You could be the next owner of Willie Nelson’s gold-plated bidet
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Crocs on stunning patent office loss: Impact was ‘greatly exaggerated’
Phil Knight donates $500K to gubernatorial campaign
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Roku cracks down on pirated content
Advertisers decry Canada’s proposed restrictions on marketing food to kids
Heard on the Call:
Target Q2 Earnings Call Highlights
Second quarter traffic, which was up more than 2% was much stronger than our expectations.
The strength was broad-based across the country, across categories and across channels.
Saw improved performance across each of our 5 broad merchandising categories: apparel, home, food and beverage, essentials and hardlines.
- 4 of those 5 saw comp increases in the second quarter, while comp sales in food and beverage were flat.
Saw really strong positive comps in adult beverages and produce in the second quarter.
Saw a meaningful increase in the percent of our business done at regular price and a meaningful decline in the percent on promotion.
Target’s digital sales grew much faster than industry in the second quarter, up 32% on top of 16% growth last year.
Cat & Jack just crossed the $2 billion mark only slightly more than a year after its launch.
(Delivery test) The value of the average basket for these same day delivery orders is more than 6x the store average at the Tribeca store and contains nearly 4x the units compared with the stores typical basket.
Also notable home is the most common category in same day delivery transactions, ahead of essentials and food and beverage.
We plan to expand the same day delivery test to several other New York City locations in the fall.
We are continuing to see average sales (lifts) in line with our plan to deliver a 2% to 4% sales lift in remodel stores.
For 2017, we are still on track to deliver our plan to add nearly 30 new small format stores.
Guest experience scores in our pharmacies have been climbing since the CVS conversion and are now running well ahead of our pre-conversion levels.
I didn’t talk a lot about it, but we have tests going on in multiple parts of the country, focused on taking work out of the store.
In hardlines, comparable sales grew between 3% and 4% in the second quarter, the strongest performance we have seen in 10 years.
Toys grew more than 3% with board games continuing to be a strong highlight.
We came to the year with the number one market share in swim and have extended that lead to become the clear destination for swim in the U.S.
In produce, we saw high single-digit comp increases in the second quarter driven by even stronger growth in organics.
Adult beverage, we saw ongoing double-digit comp growth.
(Partnering) with Barnes & Noble College which operates nearly 800 college schools around the country to offer the Target assortment (to) more than 5 million students.
We are launching our latest Star Wars assortments on September 1, which is being dubbed Force Friday.
- And to celebrate, we will be opening at midnight in 500 stores across the country.
We had really strong showing in Q2 on the iWatch.
We announced this month the addition of Blue Buffalo to our assortment, which is the number one brand in the U.S. and a really core assortment to get.
Target Earnings Transcript via Seeking Alpha
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