Today’s Tipsheet: Target Can’t Stop Union | OUR Walmart Splits | Rite Aid +2.1% | Luke Bryan/Junk Food/Robots
Target pharmacy workers form union, first in company’s history by Nandita Bose at Reuters. “Target said it was “disappointed” by the vote within its store and will appeal…”Because of the pending sale of the business, we don’t believe it was appropriate for the NLRB to move forward with the petition,” spokeswoman Molly Snyder told Reuters…”It is a big win for us,” said Lou Solicito, organizing director of the United Food and Commercial Workers union that supported the vote.” Read more
…The Brooklyn employees decided to pursue a union vote after CVS agreed to buy Target’s pharmacy business, according to a pharmacy employee via Sarah Nassauer & Paul Ziobro at Dow Jones. “After filling the petition with the NLRB on Aug. 11 “our daily routine got turned upside down,” as Target executives from corporate headquarters streamed to Brooklyn, said this person. Several Target and CVS executives came to Target in Brooklyn over several weeks to convince the pharmacy employees they didn’t need a union to be heard, said this person.” Read more
Confusion: Wal-Mart worker group splits in two; both sides vow to continue wage fight by Nathan Layne & Lisa Baertlein at Reuters. “Both wings are claiming the name OUR Walmart and vow to continue their work, moves that could sow confusion among supporters. The United Food & Commercial Workers International Union (UFCW)…will only financially support the wing that it believes represents the broader set of workers.” Read more
Rite Aid Q2 Comp +2.1% (0.3% front-end, 2.8% pharmacy) Read the release
Target Fall Meeting Highlights: Cornell Apologizes/Concept Store with Robots/Walmart Stock Price Comparison Slide by Kavita Kumar at Star Tribune. “But the meeting was not strictly business. As Target does every year, it treated employees to surprise performances from a number of artists with whom it has partnerships. This year the list included Shakira, Imagine Dragons, Luke Bryan and Florida Georgia Line.” Read more
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CVS Health in $48 million settlement of lawsuit over hiding loss by Jonathan Stempel at Reuters. “CVS Health Corp reached a $48 million settlement of a lawsuit accusing the U.S. drugstore operator of fraudulently concealing a big loss of revenue in its pharmacy benefits manager business, culminating in a plunge in its stock price.” Read more
Retailers under pressure to pursue costly web sales, or lose sales entirely, study finds by Hollie Shaw at Financial Post. “75 per cent of the retailers surveyed believe some of the sales at their own e-commerce division are cannibalizing sales that would have otherwise taken place in their stores.” Read more
Target to test a checkout lane free of junk food by Kavita Kumar at Star Tribune. “Target is ditching the junk food in the check-out lane at 30 stores this fall…set to begin in October…”We feel like we need to make the healthy option the default option,” Christina Hennington, Target’s senior vice president of merchandising told reporters on Tuesday…But she added that the company doesn’t want to be “preachy” about it so are curious to see how shoppers respond.” Read more
…Group Rails Against Candy At Bed Bath & Beyond Checkouts by Sapna Maheshwari at Buzz Feed. “We already face temptation everywhere we go,” the CSPI said in an email to its members, which provided links for tweeting at the retailer. “The last thing we need is for a trip to Bed Bath & Beyond to buy a blender, crockpot, or pillowcases to turn into yet another test of willpower and an extra 250 calories that we did not plan to eat.” Read more
Kroger may have fueled Albertsons IPO plans by Steve Watkins at Cincinnati Business Courier. “Kroger Co.’s powerful stock performance is a driving force behind the decision of rival Albertsons Companies Inc. to go ahead with its initial public offering sometime in the next month, according to a Reuters report.” Read more
Macy’s next test: Mixing up the jewelry counter at Cincinnati Business Courier. “40-store test in Southern California that will incorporate multiple new approaches at once…Los Angeles store managers designed the test, which will broaden and deepen the jewelry options Macy’s offers, increase staffing and boost product knowledge.” Read more
Amazon’s One-Hour Delivery Expands to LA & Orange County Read the release
Under Armour expects revenue to double to $7.5B by 2018 by Sarah Meehan at Baltimore Business Journal. “Under Armour hosted about 100 guests at its Locust Point campus for its biennial Investor Day meeting on Wednesday, a full day of presentations by company executives.” Read more
Pinterest finally shares its size: 100M monthly active users and counting by Ken Yeung at VentureBeat. Read more
Tipsheet Extra
Target partners with Techstars for new retail accelerator program
Clothing brands can’t get enough of this plus-sized Olympian
Williams-Sonoma taken to court by Fiesta dinnerware maker over trademark infringement
Dallas: Nearly 20,000 fans expected at Great Texas Food Truck Rally
Can you tell a fake designer handbag from a real one? Undercover investigation exposes $500 billion black market fashion industry
Dick’s Sporting Goods Director sells $1 Mil of stock
Eye-on-Retail Tipsheet is created early every weekday morning and read by retail merchants and executives worldwide. We love data, earnings reports, executive presentations and stories off the beaten path that get at what’s really happening in the world of retail. See our website at www.eyeonretail.net