Tuesday’s Tipsheet: Walmart Studies H-E-B. | McKinsey Retail Study | P&G’s ‘transformative’ New Plastic


“Wal-Mart studies HEB for lesson in ‘fresh’ “ by Kim Souza at The City Wire.  “Jack Sinclair (EVP Grocery) last week told a group of analysts attending the retailer’s annual investor meeting that “HEB is the best food retailer in the world, particularly on fresh.”  He said Wal-Mart opened an office in San Antonio to work with HEB vendors to learn how to do fresh better, specifically meat and produce. At the time, he said “people still want to feel their apples before buying them,” which is why he believes mainstream grocery delivery in the U.S. in still years away.”  Read more


“How retailers can keep up with consumers” at McKinsey & Co. via @mohitspeak.  “While it is true that powerful forces are at work in retail today, we believe their full impact won’t be felt for years. (For instance, despite the e-commerce boom, brick-and-mortar stores should still account for approximately 85 percent of US retail sales in 2025) That said, incumbent retailers can’t expect to stay successful by going about business as usual.”  Read more


“Target’s marketing efforts are right on target with revamped ‘Bullseye View’ “ by John Reinan at MinnPost.  “Content is king in today’s marketing world, and the local king of marketing — Target Corp. — is providing an excellent example of a content-based strategy at A Bullseye View.  Recently revamped and relaunched, the site aims to tell “a deeper story” about Target to media members and other influencers, said Eric Hausman, who leads the communications team responsible for the site.”  Read more


“Why Family Dollar Is Not the Best Dollar Store” by Harsh Chauhan at The Motley Fool.  “Management had expected same-store sales to increase 2% in the recently reported fourth quarter, the metric actually stayed flat from the year-ago quarter. Compare this to Dollar General’s impressive same-store sale growth of 5.1% and Dollar Tree’s 3.7% jump in their latest quarters, and it becomes quite evident that Family Dollar is lagging behind.”  Read more


“Tesco admits to wasting 28,500 tons of food” by Katrina Bishop at CNBC.  “Tesco – the U.K.’s largest retailer by sales – has admitted that it generated 28,500 tons of food waste in the first six months of this year, drawing attention to the huge amount of food thrown away by British supermarkets.  Some two-thirds of Tesco’s bagged salads and just over half of its baked goods were wasted”  Read more


“J.C.Penney shares plunge after analyst sets $1 price target” at Chicago Tribune via Reuters.  “J.C. Penney Co Inc shares sank to a more than 30-year low on Monday after an analyst slashed her price target on its shares to $1 from $5, citing increasing concerns that the retailer “may engage in a financial restructuring in 2014.”  Read more


“RadioShack Gets $825 Million ‘Lifeline’ from GE Capital” by Dhanya Skariachan at Fox Business.  “RadioShack had been looking to refinance existing debt to cut borrowing costs and assure vendors and other key partners that it has enough cash to fund turn-around efforts led by Chief Executive Joe Magnacca.  The Journal reported that the new loan, around $835 million, will be secured by existing assets, including inventory.”  Read more


“Walmart And Amazon Get Ready To Rumble This Holiday Season” by Christopher Versace at Forbes.  “43% of U.S. smartphone users purchased a good via their device in the last month.That activity was skewed higher at Target  than at Walmart – 54% of shoppers used their smartphone to make an in-store purchase in the last month, compared to 38% of Wal-Mart customers. The Parks survey also revealed that more than 25% of consumer electronics shoppers in broadband households have used mobile commerce apps on their smartphone to help with an in-store purchase decision.”  Read more


“P&G finds way to make cheaper, greener plastic goods” by Alexander Coolidge at Cincinatti.com via Ad Age.  “Sources told Ad Age that former Chief Executive Bob McDonald said the new technology is among the company’s “most transformative,” comparing it to disposable diapers, and could save the company $1 billion a year by using less plastic and different raw materials.  The trade magazine said patents received for the technology has applications for products that could range from toothbrushes, mascara and tampon applicators to toys, auto parts and medical devices.”  Read more


“What Can We Expect From The Next Decade Of Marketing?” by Greg Satell at Forbes.  “In the past, we focused on rational benefits to entice consumers to support our brands. Show that you are better in a clear, rational way and, so the thinking went, you could build a loyal following.  However, we’re not rational, calculating machines, but emotional driven creatures who are subject to an whole array of cognitive biases. and new research has changed the psychology of marketing. For example, research shows that while a price promotion may spurs sales, it lessens enjoyment and can hurt the brand long-term.”  Read more


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