RETAIL NEWS FLASH 1st October 2013
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 8 Technology .......................................................................................................................... 13 Strategy .............................................................................................................................. 16
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Sales & Marketing MCDONALD’S to offer more nutritional menu 27 September, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86046?WTrss_f=Daily%20News%20Summary&WTrs s_a=MCDONALD%25e2%2580%2599S%2Bto%2Boffer%2Bmore%2Bnutritional%2Bmenu&WTrss_e v=a McDonald's plans to provide customers with a more healthy option, reports the Wall Street Journal. The fast food giant will offer customers in its largest 20 markets a choice of side salad, fruit or vegetables as a substitute for French fries in its value meals. McDonald’s will also push healthier beverages in its Happy Meals and will promote only water, milk and juice. The chain also will emphasise nutrition in its packaging and advertising for children. McDonald’s has announced these health-related commitments in partnership with the Alliance for a Healthier Generation, part of the Clinton Foundation and the American Heart Association as part of their drive to reduce childhood obesity. The changes are to be fully implemented into the top markets by 2020.
Whole Foods Creates Rating System for Produce, Floral 27 September, 2013 | Supermarket News http://supermarketnews.com/produce/whole-foods-creates-rating-system-produce-floral AUSTIN, Texas — To point customers towards the most sustainable produce and floral items, Whole Foods Market has established a rating system that it will begin using in stores in fall 2014. The retailer informed suppliers about the system on Thursday. Similar to Whole Foods’ ratings for meat, the three-tiered system will label produce and floral as “good,” “better” or “best” based on the following factors: •
Pest management, including prohibited and restricted pesticides
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Farmworker welfare
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Pollinator protection
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Water conservation and protection
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Soil health
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Ecosystems
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Biodiversity
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Waste, recycling and packaging
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•
Energy
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Climate
“We are driven by our core values and are always looking at ways to enrich our customers’ experience, improve our communities and support our supplier partners,” Edmund LaMacchia, global vice president of perishables, said in a press release. “The new produce ratings will provide deeper transparency to our shoppers, helping them make conscious choices while also celebrating the great work and responsible practices of growers beyond their organic and local efforts.” Whole Foods developed the rating system with sustainable agriculture experts as well as suppliers. While certified organic farms will rate highly, so will those that treat workers well and promote resource conservation. The system also recognizes farms that have achieved third-party certifications like Fair Trade, Rainforest Alliance, Protected Harvest and Demeter Biodynamic.
Jewel Evaluating Express Lanes vs. Self-checkout Units 26 September, 2013 | Progressive Grocer http://www.progressivegrocer.com/top-stories/headlines/national-supermarketchains/id40053/jewel-evaluating-express-lanes-vs-self-checkout-units/ Jewel-Osco is evaluating whether or not manned express checkout units should replace selfcheckout units, and has already made the switch at a handful of stores in Chicago. “We want to make sure that every customer coming into our store has the opportunity to come in grab a few things, checkout, and leave, but we don’t want them to leave our stores without that last personal interaction,” Allison Sperling, communications manager for Itasca, Ill.-based Jewel told Progressive Grocer. This doesn’t mean that all self-checkout units will be replaced; that decision will be made store-bystore and based on factors including traffic, basket size and current use of self-checkout units. Where it makes sense, the grocer will keep the self-checkout units. Otherwise, they will be replaced with manned express lanes that are shorter in length than traditional checkout lanes. “A lot of the stores where this will happen are those where the shopping is more grab and go and the customers are in and out fairly quickly,” said Sperling. “We still want to service the shoppers, even if they’re not doing bulk shopping.” To date, Jewel has replaced self-checkout units at several stores, but Sperling said that the number was less than 10 percent of its 176 stores. Jewel is owned by New Albertsons, Inc., which operates 445 stores under the Jewel, Shaw’s/Star Market and Acme banners.
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Target Incentivizes Special Deliveries 26 September, 2013 | Supermarket News http://supermarketnews.com/center-store/target-incentivizes-special-deliveries MINNEAPOLIS — Target Corp. has launched Target Subscription, an online sales model that incentivizes shoppers to schedule recurring deliveries of baby items, with free shipping. “Pick. Schedule. Enjoy. Delivery is free when you schedule a recurring shipment of your must-have items,” states Target in promotional materials. The option is presented to users who select a baby item on Target.com. To enroll shoppers must choose a date to start delivery and select the frequency of shipments, either 4, 6, 8, 10, or 12 weeks. Despite large quantities being purchased over time, the products themselves are not discounted, according to reports. Target Subscription is the chain’s latest bid to grow its share of lucrative baby categories. In addition to its online efforts, Target is piloting an enhanced baby experience in-store that involves an improved layout, interactive digital content, and “baby advisors” equipped with iPads to help shoppers navigate Target’s online selection, in 10 Chicago stores. “We’ve heard from moms that they love shopping for baby, but are hungry for more information on what’s best and want help in making the smartest choices,” said Mary-Farrell Tarbox, Target’s group vice president of stores in the Chicago area, in a statement. “This offering will help guests feel more confident about their purchases and to easily navigate Target’s baby offerings, both in-store and online.”
John Lewis trials c-store click & collect service 26 September, 2013 | The Retail Bulletin http://www.theretailbulletin.com/news/john_lewis_trials_cstore_click_collect_service_26-09-13/ John Lewis is to offer its customers the facility to collect their online purchases from local convenience stores and petrol stations as part of a new trial. The trial will run in partnership with parcel service provider CollectPlus which has over 5,250 convenience stores, newsagents, supermarkets and petrol stations in its UK network. The service will initially be available at 1,500 of these locations in Scotland, Northern Ireland, Wales and the South West of England and will cost £3. Sarah Ince, business development manager at John Lewis, said: “Click and collect services remain an area of huge growth for John Lewis and we’re delighted to offer this option to our customers alongside the collection service available in our own shops. The CollectPlus network provides us with a truly national reach and means that customers who may not necessarily live close to one of our shops can still collect their online order at their convenience.”
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Neil Ashworth, chief executive of CollectPlus, added: “This is a great example of how CollectPlus is the perfect partner for retailers. We are trialling the service in these four regions of the UK to offer John Lewis new customer touch-points, in areas where residents are in need of greater choice and convenience. The partnership with John Lewis so far has proven to be a great success and we’re very excited to be working with them to help to successfully deliver to more online shoppers around the UK.” The new service follows the successful launch of a free national returns offer in February, which gives John Lewis customers the facility to return online purchases from their local CollectPlus store.
YUM! BRANDS KFC opens Ukraine flagship 24 September, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85974?WTrss_f=Daily%20News%20Summary&WTrs s_a=YUM!%2BBRANDS%2BKFC%2Bopens%2BUkraine%2Bflagship&WTrss_ev=a KFC has opened its largest KFC drive-through restaurant in Ukraine. The outlet is at the National Railway Station’s south terminal in Kyiv, reports Nation’s Restaurant News. The franchised location measures 1,700 square metres (18,300 square feet) and features a double drive-through that can serve 200 cars per hour. The outlet can seat 280 people in the dining room and an additional 400 on a patio. The new restaurant is to serve as the flagship restaurant for Yum! Brands-owned KFC in Ukraine. Piotr Rozanski, Director of Marketing for Yum! Brands Russia and Commonwealth of Independent States, said; “Its size and location suggest that it will become and has become a leader in Ukraine […] and very soon there will be new restaurants in other cities of Ukraine.” Reportedly, further restaurants are scheduled to be opened in Kyiv and other Ukrainian cities of Odessa, Dnipropetrovsk, Donetsk, Kharkiv and Lviv.
Meijer delivers mPerks Baby Rewards program 19 September, 2013 | Retailing Today http://www.retailingtoday.com/article/meijer-delivers-mperks-baby-rewards-program?ad=news Meijer announced the introduction of the mPerks Baby Rewards program, offering rewards on baby merchandise purchases, allowing customers to personalize rewards and earn $10 off their shopping purchases for every $100 they spend on items like diapers, baby wipes, training pants and toddler food. The retailer's expansion of the program comes soon after the number of prescribers passed 1.7 million; enrolled customers saved $25 million so far this year, with as many as 45,000 customers signing up for the program each week. The new program is the second expansion to mPerks this summer. Last month, Meijer introduced Pharmacy Rewards, allowing customers to personalize savings and earn rewards in the areas where they shop whenever they fill a prescription. mPerks itself was launched in fall 2010.
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"There are so many purchases parents make every week, so Baby Rewards is just one more way we are going beyond our everyday low prices and weekly specials to help shoppers save based on their buying habits," Meijer VP customer marketing and emerging technology Michael Ross said. "We are really hoping customers will take advantage of being an mPerks member, especially now that there are even more savings at the checkout."
BEST BUY updates loyalty scheme 17 September, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85876?WTrss_f=Daily%20News%20Summary&WTrs s_a=BEST%2BBUY%2Bupdates%2Bloyalty%2Bscheme&WTrss_ev=a Best Buy has updated its Reward Zone loyalty programme. The scheme has been renamed My Best Buy, and offers members a variety of services. These include free year-round standard shipping on orders of USD25 or more. Also included is early access to special sales, exclusive offers, and members-only shopping events. Mobile integration has been increased, with members receiving special promotions via the US-based consumer electronics retailer’s mobile app, as well as bonus points for 'checking in' with their mobile devices when visiting brick and mortar stores. Big-spending members can also earn additional points and privileges. Elite members making at least USD1,500 in annual purchases are entitled to free shipping with no minimum, as well as a 10% point bonus, dedicated service line and a 30-day vs. 15-day return window. For ElitePlus members who spend USD3,500 or more each calendar year, the return window extends to 45 days, while the point bonus rises to 25% and free shipping becomes expedited.
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Finance Filing Details Fresh & Easy Debts 30 September, 2013 | Supermarket News http://supermarketnews.com/retail-amp-financial/filing-details-fresh-easy-debts WILMINGTON, Del. — Fresh & Easy Neighborhood Market owes its parent company, Tesco, $738 million stemming from intercompany loans provided to fund the company’s rapid rollout, Fresh & Easy reported in its Chapter 11 bankruptcy filing on Monday. Tesco is the chain’s single largest creditor. Fresh & Easy does not have any other credit agreements with banks, but it owes about $18.4 million to vendors for goods and services. Fresh & Easy also had annual lease obligations totaling about $72 million for its stores in California, Nevada and Arizona, the company said. Of the 167 stores currently in operation, 25 sites are owned by Fresh & Easy, 50 are ground leases and 92 are store leases. In addition, Fresh & Easy owns 61 store locations that are not being operated, and is party to leases for 36 non-operating store locations (six ground leases and 30 store leases). In the filing, Fresh & Easy said that although it was successful on some fronts — it has about 2.6 million loyalty-club members, and a successful private-label program for example — it was “unsuccessful in obtaining a sufficiently broad customer base.” “As a result, Fresh & Easy incurred operating losses each year since 2006,” the company said in the filing. In its latest fiscal year, it generated losses averaging $22 million per month. During its efforts to sell the company, Fresh & Easy said it received 16 “preliminary indications of interest” in acquiring parts of the company, and four indications of interest for the whole company, which also includes a warehouse and production facility in the Riverside, Calif., area, and an unused warehouse in Stockton, Calif. As previously reported, Fresh & Easy reached an agreement to sell 150 stores and the Riverside warehouse and production facility to Yucaipa Cos. That acquisition will now take place through the bankruptcy auction process. “Today's filing is simply the next step in the restructuring process to sell the business to Yucaipa Cos. and will have no impact on our customers’ shopping experience,” a Fresh & Easy spokesman told SN. “It’s business as usual as we continue the transition to new ownership.”
BED BATH AND BEYOND Q2 sales rise 8.9% 27 September, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86039?WTrss_f=Daily%20News%20Summary&WTrs s_a=BED%2BBATH%2BAND%2BBEYOND%2BQ2%2Bsales%2Brise%2B8.9%2525&WTrss_ev=a Bed Bath & Beyond has announced that net sales increased 8.9% to USD2.82 billion for the second quarter ended 31 August. Comparable store sales rose 3.7% compared with an increase of approximately 3.5% in last year's Q2. Net earnings were up 11.1% to USD249.3 million.
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During the fiscal second quarter, the US-based homeware retailer opened one Bed Bath & Beyond store, one Christmas Tree Shops store, three buybuy BABY stores and one Harmon Face Values store. Consolidated store space, net of openings and closings for all concepts, as of 31 August 2013 was approximately 42.3 million square feet (3.93 million square metres).
J.C. Penney seeks to raise cash equity 26 September, 2013 | Retailing Today http://www.retailingtoday.com/article/jc-penney-seeks-raise-cash-equity?ad=news J.C. Penney is looking to raise $750 million to $1 billion in cash equity. According to Reuters, J.C. Penney, which is valued at $2.6 billion, is considering issuing new stock shares as well as other unspecified alternatives. As reported in sister publication Chain Store Age, J.C. Penney Co.’s stock on Wednesday plunged to a 13-year low of $10.12 at the end of trading. The stock fell to $9.94, the lowest since January 2001, before recovering up to $10.12. Industry experts credited the 15% plunge to reports that the chain did not have a good back-to-school season, with sales falling at the end August and into September. Investors have also been made wary by recent reports have indicated that the chain needs to raise more cash. In a research note on Penney’s credit, Goldman Sachs raised concerns about the chain’s sales. "We expect 3Q and 4Q to be difficult, with comp store sales likely showing a slower-than-expected improvement,” Goldman said. Last week, it was reported that Penney was trying to raise additional cash on top of the $3 billion it already had borrowed this year. Penney declined to comment in the Reuters article.
Bi-Lo Cites Southeast Growth in IPO Filing 26 September, 2013 | Supermarket News http://supermarketnews.com/retail-amp-financial/bi-lo-cites-southeast-growth-ipo-filing JACKSONVILLE, Fla. — The Southeastern U.S. stands to get an economic boost from state and local governments investing to attract businesses, which will serve to create a fertile growth environment for Bi-Lo and Winn-Dixie, the parent company of the chains said in filing for an initial public stock offering on Thursday. Filing under the name Southeastern Grocers LLC, the company also noted that the region’s high penetration of discount operators like Wal-Mart and dollar stores indicate that such players are likely to pursue a higher rate of growth in other regions in the future. “We believe we have developed an effective strategy and shopping experience to compete with these formats, as evidenced by our consistent positive pro-forma comparable store sales growth over the past several years,” Southeastern Grocers said in the filing.
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The number of shares and price range for the IPO, which was previously reported to have been in the planning stages, has not yet been determined. The company is owned by Dallas-based private investment firm Lone Star Holdings. The company could seek to raise up to $500 million in the offering, according to reports. In the prospectus, Southeastern Grocers also cautioned that it carries relatively high levels of debt and fixed-lease obligations, citing $1.36 billion in total consolidated indebtedness and another $1.1 billion in other current and non-current liabilities. It is in the process of acquiring 155 Sweetbay, Harveys and Reid’s stores from Delhaize Group, and another 21 Piggly Wiggly stores from Piggly Wiggly Carolina. It currently operates 685 supermarkets in Florida, Georgia, Alabama, Louisiana, Mississippi, South Carolina, North Carolina, and Tennessee, with net income of $103.1 million on sales of $8.6 billion in 2012.
Rite Aid enjoys fourth-consecutive profitable quarter 19 September, 2013 | Retailing Today http://www.retailingtoday.com/article/rite-aid-enjoys-fourth-consecutive-profitablequarter?ad=news Rite Aid reached a milestone in its store conversions and saw growth in the latest expansion to its loyalty program as it posted its fourth-consecutive profitable quarter. During the second quarter of fiscal year 2014, the number of stores in the chain that have been converted to the Wellness and Genuine Well-Being formats surpassed the 1,000 mark, with the total number of stores converted totaling 1,019 — including 114 under the newer Genuine Well-Being format — and expected to reach 1,200 by the end of the year. In a conference call with financial analysts to announce the quarter's results, CFO Frank Vitrano said Wellness stores' front-end same-store sales led non-Wellness stores' by 3.4%, while same-store script count led by 0.9%. One key part of the Wellness format is the Wellness Ambassadors, specially trained staff who help customers with questions they have about health and wellness products and also help to funnel them toward the pharmacy; as of the end of the quarter, there were 1,700 Wellness Ambassadors working in stores. Wellness65+, a supplement to the Wellness+ loyalty card program aimed at elderly customers, had 930,000 members enrolled as of the end of the quarter, and president and COO Ken Martindale said that seniors had been "very receptive" to it. Part of the promotional efforts around the program included a tour around the country, with 65 events in eight markets, thus allowing employees to build relationships with senior customers. Other wellness-related programs include flu vaccinations, and chairman and CEO John Standley said they were off to a "strong start" in the 2013-2014 flu season; the company aims to vaccinate 2.5 million people during the fiscal year. As the chain cycles through the customers it gained during the dispute last year between Walgreens and Express Scripts, same-store script count was flat compared with second-quarter 2013, but offset by organic script count growth. Pharmacy same-store sales were up by 1.7% and included a 2.5% negative effect from new generic introductions. Standley said during the call that new generics have been stronger than expected, but cost increases for generics have also been higher, and the company expects that to put pressure on the company's guidance over the next two quarters.
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Sales for the quarter were $6.3 billion, up from $6.2 billion in second quarter 2013, while profits were $32.8 million, compared with a $38.8 million loss a year ago. Same-store sales were up by 1%, including the aforementioned increase in pharmacy comps and a 0.3% decrease in front-end comps. The chain operated 4,604 stores.
TOYS 'R' US sees increased Q2 losses 18 September, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85890?WTrss_f=Daily%20News%20Summary&WTrs s_a=TOYS%2B%2527R%2527%2BUS%2Bsees%2Bincreased%2BQ2%2Blosses&WTrss_ev=a Toys ‘R’ Us has reported its results for the second quarter ended 3 August. Comparable store net sales were down 3.5% in the Domestic segment and 3.8% in the International segment. The overall decrease in comparable store net sales resulted primarily from falls in the Juvenile and Entertainment categories. The latter includes electronics, video game hardware and software. Net sales were USD2.4 billion, a drop of 6.9% versus the prior year. The decline in net sales for the quarter was chiefly attributable to slipping comparable store net sales, as well as weaker foreign currency conversion rates. Adjusted EBITDA was USD81 million, against USD148 million in the previous year. Net loss was USD113 million, compared to USD36 million in the prior year and was mainly due to a decline in operating earnings, partially offset by increased income tax benefit resulting from the increase in loss before income tax. Antonio Urcelay, Interim CEO, Toys ‘R’ Us, stated: “We are pleased to see improvement in our comparable store net sales versus the first quarter of this year, despite the ongoing challenges of the global economic environment and the continued weakness in the electronics and entertainment category.”
Safeway Takes Measures Against Hostile Takeover 17 September, 2013 | Progressive Grocer http://www.progressivegrocer.com/top-stories/headlines/national-supermarketchains/id39969/safeway-takes-measures-against-hostile-takeover/ Safeway Inc. took measures to prevent a hostile takeover after it became “aware of an accumulation of a significant amount of [its] common stock.” The grocer has adopted a one-year stockholder rights plan that its board believes will help promote the fair and equal treatment of all Safeway stockholders and ensure that it remains in the best position to discharge its fiduciary duties. According to published reports, the investor was New York-based Jana Partners, LLC, which disclosed an activist stake of 6.2 percent in a company filing, stating that the grocer was undervalued and that it was discussing strategic alternatives including replacing management.
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Safeway has recently agreed to sell its Canadian operations to Sobey’s Inc. and conducted an IPO of Blackhawk Network. Its board believes the rights plan will help ensure it can continue to implement its strategic plan and maximize long-term value for all shareholders. The plan allows existing shareholders to acquire more stock at a discounted rate to discourage a takeover from an outside company. The plan becomes exerciseable if a person or group acquires 10 percent or more of the company’s common stock or an institutional investor acquires 15 percent. Pleasanton, Calif.-based Safeway operates 1,412 stores in the United States and 223 stores in western Canada and had annual sales of $44.2 billion in 2012. On June 12, 2013, Safeway announced the planned sale of substantially all of the net assets of its Canadian division.
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Technology JOHN LEWIS undertaking huge IT revamp 27 September, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86048?WTrss_f=Daily%20News%20Summary&WTrs s_a=JOHN%2BLEWIS%2Bundertaking%2Bhuge%2BIT%2Brevamp&WTrss_ev=a John Lewis is carrying out a “comprehensive slum redevelopment” of its IT systems. It will be ripping out between 50-60 old systems and replacing these with newer ones, IT Director Paul Coby told the Retail Week Technology Summit. Coby said the UK department store retailer was building a technology infrastructure to link its different systems, including a new EPOS (Electronic Point-of-Sale), a new web platform and a new order system. These were seen as crucial steps towards building its omni-channel capabilities. Coby said that back-end systems needed to be modernised and that mobile had become a core priority for John Lewis. He commented: “Mobile is the new norm. It’s really important and has now become ubiquitous.”
FOOT LOCKER offers instore self-customisation 27 September, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86040?WTrss_f=Daily%20News%20Summary&WTrs s_a=FOOT%2BLOCKER%2Boffers%2Binstore%2Bself-customisation&WTrss_ev=a Foot Locker has launched a digital screen that allows shoppers to custom design their own shoes. The installation is in conjunction with athletic shoe brand New Balance and can be found at the retailer’s flagship in New York’s Times Square. Using a touchscreen display, shoppers at the US-based footwear retailer can choose between colours, materials and customised text on the shoe’s heel. Up to 48,000 billion combinations of design are possible using the system. Customers may also share their design online via the touchscreen terminal.
Home Depot Rolls Out Redbeacon to More States 27 September, 2013 | Kantar Retail http://www.kantarretailiq.com/ContentIndex/PublicNewsDisplay.aspx?id=597261&key=6dpglB7 QeivywbZlj4RTKw%3d%3d This week Home Depot expanded Redbeacon, the online contractor review and referral service, to Oregon, Washington, Idaho, Utah, Montana, and Alaska, putting the program in 11 states. It will go nationwide over the next two years.
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The retailer bought Redbeacon in 2012. The service, founded five years ago by three former Google employees, takes project requests from consumers and collects bids from contractors, which it then sends back to shoppers. While Home Depot uses Redbeacon to provide easier access to pro contractors for its consumers, the retailer also uses the service to connect with pros and gather data about them.
Walmart Launches Online Reality Series 24 September, 2013 | Progressive Grocer http://www.progressivegrocer.com/top-stories/headlines/national-supermarketchains/id40024/walmart-launches-online-reality-series/ Walmart has unveiled its first-ever original reality series developed for the web, through which the mega-retailer is asking the public which new products from American entrepreneurs should appear on shelves this fall. The first episode can now be viewed at getontheshelf.walmart.com. The new weekly web series highlights 20 finalists from its "Get on the Shelf" crowd-sourcing product contest. Each week, four finalists will showcase their product in an effort to gain public votes and get their item sold on Walmart.com, and possibly in Walmart stores. "Get on the Shelf celebrates the resilient and tenacious spirit of American entrepreneurs, many of whom have been working hard for a big break like this," said Kelly Thompson, SVP of merchandising for Walmart.com. "The web series creates more exposure for finalists to share their inspiring stories, which makes for captivating reality TV that's also interactive since American consumers can vote for the next great product at Walmart.com." The five weekly "webisodes" feature a group of finalists under the same theme, such as Kid Stuff or Great Gadgets. The webisodes give viewers a chance to learn more about the entrepreneurs behind the inventions and watch as they pitch their product to a panel of Walmart.com judges. After each weekly webisode, voters have 72 hours to cast their votes for the winner, who will have their product sold on Walmart.com. A grand-prize winner will also be selected based on the number of preorders of the product, and will receive additional support marketing from Walmart.com plus an introduction to the Walmart stores' merchandising team to potentially be sold in Walmart stores. Last year’s three winning products are currently available. Walmart operates 10,800 stores under 69 banners in 27 countries and e-commerce websites in 10 countries.
TJX launches online store 20 September, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85949?WTrss_f=Daily%20News%20Summary&WTrs s_a=TJX%2Blaunches%2Bonline%2Bstore&WTrss_ev=a US-based off-price retailer T.J. Maxx has quietly launched an online shop. The website, tjmaxx.com, is also optimised for tablets and smartphones. Customers can return most merchandise purchased online at any of the retailer’s more than 1,000 T.J. Maxx stores or ship it back, Doreen Thompson, TJX Vice President of Corporate Communications, said.
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The launch of the website had been expected this autumn. "An e-commerce website is a way to attract customers that don't already shop at T.J. Maxx, as well as giving existing customers an ability to shop 24/7," said TJX CEO Carol Meyrowitz during the company's most recent earnings conference call in August.
OfficeMax unveils digital collaboration center 18 September, 2013 | Retailing Today http://www.retailingtoday.com/article/officemax-unveils-digital-collaboration-center?ad=news OfficeMax has opened Digital IC2, a digital innovation collaboration center, in its headquarters in Naperville, Ill. “I am extremely pleased to introduce our new Digital Innovation Collaboration Center, yet another key milestone demonstrating the overall progress of our Digital initiatives," said president and CEO Ravi Saligram. “The new center is aimed at fostering the creativity, collaboration and real-time innovation needed to expedite the delivery of digital solutions that expand upon our multichannel capabilities to better serve the rapidly changing ways that customers shop.” The Digital IC2 was designed with direct input from digital associates to create a space that facilitates team communication and creativity based on the digital teams' work styles to help bring innovation to market. The center is part of OfficeMax’s strategic plan to create “a differentiated customer experience through next-generation digital innovation and enhancements.” “OfficeMax is committed to expanding upon the award-winning digital experience that our customers have come to expect,” said Jim Barr, OfficeMax executive vice president and chief digital officer. “The OfficeMax Digital Innovation Collaboration Center is a highly interactive working environment that enables real-time innovation and ideation to help strengthen our position within the e-commerce and omni-channel landscape.”
METRO (CAN) introduces online shopper tools 16 September, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85859?WTrss_f=Daily%20News%20Summary&WTrs s_a=METRO%2B(CAN)%2Bintroduces%2Bonline%2Bshopper%2Btools&WTrss_ev=a Canadian supermarket operator Metro (CAN) has launched its “digital ecosystem”. This combines a website and an iPhone app. Elements include a more user-friendly website that enables consumers to receive personalized promotional offers in the form of coupons. Coupons can be accessed and used at the checkout via the smartphone. The system also enables shoppers to locate stores, consult flyers and get a weekly menu tailored to their requirements based on the discounts shown on the flyer. Shoppers can then use online recipes, videos and helpful hints to plan purchases, which will be added to a grocery list as they navigate through the site or app. Metro (CAN) operates almost 600 food stores under several banners in Quebec and Ontario, including Metro, Metro Plus, Super C and Food Basics, as well as more than 250 drugstores under the Brunet, The Pharmacy and Drug Basics banners.
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Strategy RAKUTEN prepares for Singapore debut 30 September, 2013 | Supermarket News http://www.planetretail.net/News/Article/0/86053?WTrss_f=Daily%20News%20Summary&WTrs s_a=RAKUTEN%2Bprepares%2Bfor%2BSingapore%2Bdebut&WTrss_ev=a Rakuten plans to launch an e-commerce website in Singapore by early December, Nikkei reports. The site is expected to initially offer consumer electronics, clothing and toys, before expanding to other services. Goods will be sourced from Japan at first, but local items will be added over time. Japanese e-commerce marketplace Rakuten is already expanding its operations in South-East Asia, having established a presence in Taiwan, Thailand, Indonesia and Malaysia. Following Singapore, the group is believed to be considering market entries to further ASEAN countries, including Vietnam and the Philippines.
SUBWAY seeks aggressive growth in Middle East & Africa 30 September, 2013 | Supermarket News http://www.planetretail.net/News/Article/0/86056?WTrss_f=Daily+News+Summary&WTrss_a=S UBWAY%2bseeks%2baggressive%2bgrowth%2bin%2bMiddle%2bEast%2b%2526%2bAfrica&WTrss _ev=a Subway is targeting 1000 Subway outlets in Middle East & Africa by 2015, reports Hotelier Middle East. This would more than double its current outlet number in the region. The US-based foodservice company is to focus on the Gulf Co-operation Council countries, Turkey and Africa. Hicham Ghazal, Subway Regional Marketing Manager for Middle East & Africa said; "We are experiencing an increase in our market share in each country. The brand has created a buzz and the demand for healthier eating habits has grown up.�
H&M COS to launch in the US next year 27 September, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86050?WTrss_f=Daily%20News%20Summary&WTrs s_a=H%2526M%2BCOS%2Bto%2Blaunch%2Bin%2Bthe%2BUS%2Bnext%2Byear&WTrss_ev=a Swedish fashion chain Cos will be launching in the US next spring. The H&M-owned brand has a store opening planned for New York’s SoHo district. Cos currently has 75 stores in 17 countries. It also retails online to 18 European markets.
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ARCADIA GROUP sets out UK and international aims 27 September, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86051?WTrss_f=Daily+News+Summary&WTrss_a=A RCADIA%2bGROUP%2bsets%2bout%2bUK%2band%2binternational%2baims&WTrss_ev=a Topshop owner Arcadia Group is looking to renegotiate rental terms with landlords in the UK, reports Drapers. Sir Phillip Green, the owner of Arcadia, has 600 leases coming up for renewal in the UK over the next three years and is seeking to reduce rent, have rent-free options and break clauses added, and in some cases is requesting landlords pay out for shop refits as part of new lease deals. Arcadia is also seeking to negotiate 5% turnover rents, where the rent paid on a unit is a percentage of the store’s annual turnover. The industry average is around 8%. The retailer is looking to cut back on stores in the UK whilst building up a portfolio of oversseas stores. Speaking at Arcadia’s Franchise Forum, Green and international director Paul Gould laid out the company’s overseas plans. Asia is top of the agenda for Burton, which trades as Burton Menswear London internationally, as is makes its first moves into Malaysia, Thailand and Indonesia this autumn.Dorothy Perkins and Wallis are to expand in the same territories, with plans for a further 19 stores to be opened in Thailand over the next six months. Growth is planned for Canada with its concessions partner Hudson’s Bay Company, as well as five further Topman/Topshop stores over the next three months. It is also looking to introduce Miss Selfridgeinto Canada. Three more Miss Selfridge stores are planned for Australasia this autumn, along with five more for Topshop/Topman in the next year. The first New Zealand Topshop/ Topman store will be launched in 2014. The business is also talking to partners in Mexico, Uruguay, Columbia, Venezuela, Panama and Peru.
Dixons confirms PIXmania sale to Mutares 27 September, 2013 | The Retail Bulletin http://www.theretailbulletin.com/news/dixons_confirms_pixmania_sale_to_mutares_27-09-13/ Dixons Retail, the owner of Currys and PC World, has announced that it has completed its consultations with works councils for the sale of its loss-making PIXmania business in France to German holding company Mutares AG. As part of the deal, Dixons will provide around £59 million of ring-fenced capital to support the business after the purchase. In a statement issued today, Dixons said that Mutares had developed a “robust plan” to build on PIXmania's pure play e-commerce operations and would also further develop its software platform. For the year to April 2013, the assets being disposed of generated retail operating losses of £31.3 million and losses before tax of £114.3 million on turnover of £397.7 million and gross assets of £48.0 million. The transaction is expected to complete in December.
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Sebastian James, Dixons group chief executive, said: "I am delighted that we have been able to conclude consultations with the works councils so swiftly. This is testament to the strength of the plans that mutares has for the business, and to the vision that they were able to share with our colleagues at PIXmania. I believe that the company has an exciting future, and I look forward to watching it flourish under new ownership." Aurélien Fauvel, head of Mutares France, added: "I am very pleased that we are now able to proceed with this transaction following positive discussions with employee representatives. We firmly believe that PIXmania can achieve long term success and can look forward with confidence."
Waitrose expands European presence with move into Switzerland 25 September, 2013 | Fresh Plaza http://www.freshplaza.com/article/113529/Waitrose-expands-European-presence-with-moveinto-Switzerland#SlideFrame_1 Waitrose has announced plans to expand its global reach by selling food and drink in Switzerland, through a deal with department store chain, Manor. The retailer said around 120 products will go on sale this week, with a range that includes frozen products, store cupboard groceries and sweet treats including biscuits and shortbread. Products will initially be available in the food hall of the department store’s Geneva branch, before rolling out to a further six branches in Swiss cities including Zurich and Basel at the beginning of next month. The business to business director at Waitrose, David Morton said: “This is an exciting move as part of our plans to make our brand available to more people in more places and grow our presence in Europe. Wherever we launch our products, we tend to find that the best-sellers are those associated with Britain, such as tea and biscuits and we are confident that our range in Switzerland will be popular with locals and expats alike.” Waitrose, which currently exports to more than 45 countries, announced a new deal with Eurostar earlier this year, helping the retailer grow its brand presence on the continent and paving the way for further growth.
Dick’s Sporting Goods outlines growth initiative 18 September, 2013 | Retailing Today http://www.retailingtoday.com/article/dick%E2%80%99s-sporting-goods-outlines-growthinitiative?ad=news Dick’s Sporting Goods has outlined its long-term plan to deliver sales and operating profit growth and drive shareholder value in the next five years, with the company’s namesake stores, new Field & Stream retail format and omnichannel platform driving its growth. Dick’s anticipates growing its store base to more than 800 namesake stores by the end of fiscal 2017, an increase of approximately 300 stores from the 518 stores it operated at the end of fiscal 2012. The chain will continue to remodel its existing stores to keep them fresh, focusing on key initiatives such as vendor shops and shared service footwear decks.
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In addition, Dick’s plans to grow its new Field & Stream outdoor specialty store concept to approximately 55 locations and $750 million in sales by the end of fiscal 2017. On the omnichannel front, the company plans to grow e-commerce sales to approximately $1.1 billion by the end of fiscal 2017, from $292 million in fiscal 2012. Dick’s also revealed it is planning to internally control its e-commerce platform, beginning with Golf Galaxy and Field & Stream in 2014 and Dick's Sporting Goods by the end of fiscal 2017. "We are excited about the profitable long-term growth opportunities across our business in our Dick's Sporting Goods stores, on-line and through our Field & Stream concept," said Edward W. Stack, chairman and CEO. During its Analyst Day meeting, Dick’s presented a sales target of $10 billion by the end of fiscal 2017, representing a 5-year compounded annual growth rate of approximately 11% from fiscal 2012 sales of $5.8 billion. "To support our long-term goals, we intend to make meaningful investments in our business in the near-term,” Stack said. “We are timing these investments to stay ahead of our needs and to produce sustainable, long-term advantages. Even with approximately $1.8 billion of capital expenditures to support our $10 billion sales target, we expect to expand our operating margins."
TESCO to close its first Chinese location 18 September, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85898?WTrss_f=Daily%20News%20Summary&WTrs s_a=TESCO%2Bto%2Bclose%2Bits%2Bfirst%2BChinese%2Blocation&WTrss_ev=a Tesco is to close the first store it opened in China, Global Times reports. The outlet is located in Shanghai's Changning district. A sign posted on the store announced its closure and stated that employees will be transferred to other Tesco outlets. The closure of the store is thought to be part of a local reorganisation. The move follows the closure of four Tesco outlets in China last year and one in May this year.
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