Sutherland insights retail news flash dec 02, 2013

RETAIL NEWS FLASH December 02, 2013

Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 8 Technology .......................................................................................................................... 16 Strategy .............................................................................................................................. 22

2|Sutherland Insights Retail News Flash Dec 02, 2013

Sales & Marketing Carrefour Brazil Launches Christmas Marketing Campaign2 November 29, 2013 | Kantar Retail http://www.kantarretailiq.com/ContentIndex/PublicNewsDisplay.aspx?id=606858&key=uqD79Qb YEeW11gEms7crjw%3d%3d Carrefour Brazil launched its new Christmas marketing campaign called “Have a Magic Christmas, Have Carrefour” (“Faz um Natal Mágico, Faz Carrefour”) on 26 November 2013. The campaign is available by 24 December 2013.

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For each BRL 50 spent in any Carrefour store, the customers are offered the opportunity to win gifts and a year of free recharging for pre-paid SIM cards.

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The retailer launched a 30-second TV commercial, illustrating the retailer’s promotions for the Christmas period.

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The TV commercial focuses on the importance of the Christmas celebration for the family.

Walmart Brazil Follows Black Friday Trends November 29, 2013 | Kantar Retail http://www.kantarretailiq.com/ContentIndex/PublicNewsDisplay.aspx?id=606860&key=e8ukIZ9 %2bnSVOTQfm4SfZdA%3d%3d Walmart Brazil is following the Black Friday trend, offering shoppers price cuts of up to 70% on its walmart.com.br website, beginning on 28 November 2013.

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The “BIG”, “Hiper Bompreço” and “Walmart” stores opened at 6 a.m. to customers.

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According to Claudio Tonello, Walmart’s Inteligence Marketing Director, sales are expected to reach BRL 100 million during the period, an increase of 35% y-o-y.

LOUIS DELHAIZE unveils domestic Drive November 27, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/87007?WTrss_f=Daily%20News%20Summary&WTrs s_a=LOUIS%2BDELHAIZE%2Bunveils%2Bdomestic%2BDrive&WTrss_ev=a

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Under the banner of ‘Wink', Belgian retailer Louis Delhaize will open its first standalone Drive in its home market by the end of the week. Customers placing online orders will be able to collect their shopping at the Wink Drive in Zavatem two hours later. From 2014, a related mobile application will also be available. The current offer of 8,000 SKUs will grow to 10,000 SKUs by next year.

The retailer plans to open 10 Drives in the next three years, according to Managing Director Cédric Antoine. A second Drive is planned in Wavre by the end of the first quarter of 2014.

Following the introduction of its version of the Drive format in France, Louis Delhaize is now duplicating the concept in its home market. However, whereas in France the retailer only operates Drives as adjuncts to its existing hypermarkets, it seems more focused on standalones units in Belgium, suggesting the retailer's primary aim is to enlarge its country coverage, as it only operates a handful of hypermarkets in Belgium.

DECATHLON looks to boost Domyos profile November 27, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86990?WTrss_f=Daily%20News%20Summary&WTrs s_a=DECATHLON%2Blooks%2Bto%2Bboost%2BDomyos%2Bprofile&WTrss_ev=a To promote its Domyos private label, Oxylane’s Decathlon banner is introducing a series of online fitness courses. Sports coach Lucile Woodward is the host and instructor for the 'Domyos Live' free fitness webcasts. Each session is hosted at Decathlon’s website and is preceded by in-house promotions for Domyos products.

In recent years, Domyos, Oxylane’s second-largest brand in terms of sales, has been in direct competition with rivals Nike, Adidas and Reebok. All these brands have made the women’s market a priority target. By offering these free courses, Domyos is able to reinforce its self-declared objective of making sports accessible to a larger swathe of the French population, while simultaneously promoting its clothing and fitness equipment range. This currently generates 20% of Oxylane's sales.

ShopRite Links Grocery Rewards to Virtual Mall November 27, 2013 | Supermarket News http://supermarketnews.com/online-retail/shoprite-links-grocery-rewards-virtual-mall KEASBEY, N.J. — ShopRite’s new rewards program allows shoppers to earn points toward free groceries when they shop at 1,000 stores, including Macy’s, Best Buy, Old Navy, Kohl’s, Gap and Bloomingdales, via ShopRite’s online mall.

Every point earned equals $1 off at ShopRite, and shoppers can redeem those points through their Price Plus Card for discounts on their ShopRite total.

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Points earned vary by retailer with shoppers earning rewards points equal to 3.2% of their purchases at Barnes & Noble, 0.8%-2% at Target and 1.2% at Bloomingdales.

ARGOS unveils store of the future November 26, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86984?WTrss_f=Daily%20News%20Summary&WTrs s_a=ARGOS%2Bunveils%2Bstore%2Bof%2Bthe%2Bfuture&WTrss_ev=a Multi-channel retailer Argos is to launch a new-model digital store concept to reflect changing shopping habits and enhance its appeal to consumers. The store will see tablet computers replacing the retailer's familiar print catalogues, pencils and paper slips. The new concept will also offer a fasttrack 60-second collection service for customers who pre-order products online or via mobile devices. There will also be a single payment and collection point, rather than the old collection counter which should make the purchase process faster and allow for greater staff interaction with shoppers.

Argos Managing Director John Walden said that the new approach was designed to reimagine the store, improve product choice and speed of availability and to create “universal appeal”. He added: “We are seeking to reposition our stores to support a digital future, in which digital channels are the primary interface for customers but stores continue to be critically important as a national network for product collection and a local place for colleagues to provide customer service.”

The new Argos concept will be trialled at six stores in London, UK, and are scheduled to begin operational activities by Christmas. Thereafter, three more stores are scheduled to open in London, plus one in Colchester and and an additional outlet in Scotland.

Planet Retail believes that Argos’ store refit is the right move considering approx.90% of all sales involve a trip to a store. Offering an appealing shopping experience in its retail outlets remains a crucial differentiator as stores remain at the heart of Argos’ business. The company is likely to be looking at bringing the most successful elements of the trial to the rest of its network.

LEFTIES becomes a fully-fledged brand November 25, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86973?WTrss_f=Daily%20News%20Summary&WTrs s_a=LEFTIES%2Bbecomes%2Ba%2Bfully-fledged%2Bbrand&WTrss_ev=a Inditex has given further evidence of the autonomy of value chain Lefties. The debut of the brand's online page shows a design style more consistent with the group's other brands, reports Modaes.

Lefties operates 104 stores, but until now was considered part of the Zara chain.

Inditex is looking to use Lefties, which currently only has a presence in Spain and Portugal, to compete in the value end of the market with brands such as Primark or Shana. Although Lefties began life as an outlet for Zara, the brand now offers its own collections of clothes.

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Sam’s Club Rolls Out Exclusive Holiday Savings November 18, 2013 | Progressive Grocer http://www.progressivegrocer.com/topstories/headlines/national_supermarket_chains/id40445/sam_acute_s_club_rolls_out_exclusive_ holiday_savings/ Sam’s Club started the festive season this month by offering hundreds of new items and thousands of dollars in members-only savings.

“Our members should have access to the best brands and best prices every day. That’s what we're giving them,” noted Charles Redfield, EVP of merchandise at Sam’s Club, the warehouse club division of Bentonville, Ark.-based Wal-Mart Stores Inc. “Not all members’ holiday shopping routines are the same, but they expect value, quality and excitement from Sam’s Club – whenever, wherever and however they shop. We’re prepared to exceed their expectations.”

One of the ways the retail plans to do that is with the Sam’s Club Instant Savings Book, which through Nov. 27 will provide $4,100 in savings on 100 items in-club and at SamsClub.com to all U.S. members. There’s no need to clip any coupons, since Instant Savings are automatically loaded onto each membership card.

Additionally, Sam’s Club recently introduced 50 Extreme Value Gift Cards in clubs and at Samsclub.com that save members as much as 20 percent on lifestyle and restaurant gift cards.

Among the participating brands are national and regional restaurant chains, Elizabeth Arden’s Red Door Spa, and AMC Movie Theatres.

Since the chain’s clubs will be closed on Thanksgiving Day, the Sam’s Club Black Friday Savings Event starts in-club at 7 a.m. on Friday, Nov. 29, with breakfast (available while supplies last) and savings on top-rated smartphones, Smart TVs, video games and consoles, speakers, jewelry, toys, and other items. SamsClub.com will offer exclusive savings and free shipping on Black Friday items from Thanksgiving Day to Nov. 29.

Also, during Black Friday weekend, 495 Sam’s Club locations will honor the smartphone trade-in program. Once accepted, the trade-in value of a members’ smartphone can go toward a new smartphone with a two-year contract. The difference in value will be applied to a Sam’s Club gift card, valid for purchase of any item in the club.

Nonmembers can receive up to a $40 Sam’s Club gift card with the in-club purchase of a Sam's Plus Membership ($100) from Nov. 29 – Dec. 1. Sam’s Plus membership benefits include early shopping hours, invitations to seasonal VIP shopping events and further savings on fresh grocery items, pharmacy and optical services.

Pricing and item availability may vary by location and in Alaska, Hawaii, Oklahoma, Wisconsin, Puerto Rico and online. The Black Friday Savings Event circular is available to view online.

Sam’s Club, the nation’s eighth-largest retailer and a leading membership warehouse club, serves millions of members in 630 clubs across the United States.

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MCDONALD'S tests premium, custom, menus November 15, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86879?WTrss_f=Daily%20News%20Summary&WTrs s_a=MCDONALD%2527S%2Btests%2Bpremium%252c%2Bcustom%252c%2Bmenus&WTrss_ev=a McDonald's is testing build-your-own-burger (BYO) and new premium-price concepts in southern California, according to local press. The new ideas are being tested at a recently remodeled outlet in Laguna Niguel, CA, and at a restaurant in Illinois.

The new concepts enable diners more customisation with optional topping choices from a list of 20, displayed on an iPad menu. In addition, three new higher-priced specialty burgers have been added to the menu, including the SoCal Style, Hot All Over and Grill Thriller. These items are priced at USD5.79.

McDonald's is testing these prototypes as it seeks to lift up customer traffic, which has been relatively stagnant of late. The introduction of BYO and the new burger styles make sense as premium products are on trend and McDonald’s are eager not to be outflanked by newcomer premium chains such as Smashburger.

Wal-Mart Promises Cheaper Thanksgiving Meal November 15, 2013 | Supermarket News http://supermarketnews.com/meals/wal-mart-promises-cheaper-thanksgiving-meal BENTONVILLE, Ark. — Wal-Mart Stores said customers can purchase a 10-person Thanksgiving meal for $34.86, which is close to 30% less than the national average $49.04 estimated by the American Farm Bureau Federation.

“We don’t believe families should have to compromise their holiday meal traditions because they are concerned about how much it costs,” Jack Sinclair, executive vice president of grocery, Walmart U.S., said in a statement. “Every day, we are focused on offering low prices to our customers and Thanksgiving is no different.”

AFBF priced out a meal that included a 16-pound turkey, rolls, peas, stuffing, cranberries, sweet potatoes, pumpkin pie mix and whipped cream, milk, carrots and celery. Wal-Mart said shoppers could find comparable items at its stores.

This year’s national average Thanksgiving meal price is 44 cents less than last year’s cost, according to AFBF.

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Finance Kingfisher's profits boosted by strong sales at Screwfix November 28, 2013 | The Retail Bulletin http://www.theretailbulletin.com/news/kingfishers_profits_boosted_by_strong_sales_at_screwfi x_28-11-13/ Kingfisher, the owner of B&Q and Screwfix, saw its group retail profits climb by 1.7% to £271 million in constant currency in its third quarter. However, the group warned that its markets remained challenging, especially in France.

In the 13 weeks to 2 November, group like-for like sales edged up 1.4% while total sales climbed by 4.6% to £2.9 billion.

In the UK and Ireland, like-for-like sales increased by 2% with total sales rising by 3.7% to £1.1 billion.

The increase was driven by a strong performance from Screwfix and encouraging early signs in the smaller tradesman market, offset by a slow underlying retail market. Retail profit grew by 8.3% to £63 million.

At B&Q, total sales rose 0.8% to £915 million, edging up 0.4% on a like-for-like basis. Although sales of outdoor seasonal products were down around 8% following strong sales in the second quarter, sales of indoor products were up around 3% with new flooring and light bulb ranges performing particularly well.

The Screwfix chain grew its total sales by 21.1% to £180 million while like-for-like sales surged by 11.1%. Kingfisher said the chain had benefited from a strong promotional programme, extended opening hours, the roll out of new outlets and the introduction of a mobile 'click, pay & collect' offer last year. Nine outlets were opened in the third quarter, taking the total to 303.

In France, where Kingfisher operates the Castorama and Brico Depot,chains, like-for-like sales were flat as trade was impacted by weak consumer confidence.

Ian Cheshire, Kingsfisher group chief executive, said: "Following a mixed first half, we have seen growth in both sales and profits in our third quarter, one of our most significant trading periods in the year. Whilst we have delivered sales growth in each of our geographies our markets remain challenging, especially in France where consumer confidence is still weak and with no obvious signs of an imminent improvement.

"Looking ahead, we remain ready to capitalise on any improvement in conditions or opportunities as they arise. In the meantime, our self-help plan, 'Creating the Leader', continues to progress well so I remain enthusiastic about our longer-term prospects."

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IKEA looks to double UK sales by 2020 November 25, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86962?WTrss_f=Daily%20News%20Summary&WTrs s_a=IKEA%2Blooks%2Bto%2Bdouble%2BUK%2Bsales%2Bby%2B2020&WTrss_ev=a The UK division of IKEA saw sales rise 3.1% to GBP1.27 billion (USD2 billion) in the year to 31 August.

Outdoor furniture sales were up by 58% helped by a warm summer and the company’s decision to sell ranges all year round. Online sales climbed 29% after the retailer boosted the number of products available on the site to 7,500 out of a total of 9,500. A transactional mobile site and free instore Wi-Fi were both launched towards the end of the year.

The retailer has overhauled some of its ranges, particularly living room and children’s departments, to offset uncertainty about the economic recovery. For this year, it plans a revamp of the kitchen ranges. Gillian Drakeford, Country Manager, said the outlook for the sector is positive: “The medium-term picture for the home furnishing market looks bright and I believe this, coupled with our investments to improve the shopping experience, gives us the opportunity to double our turnover and total market share by 2020.”

We feel IKEA is unlikely to achieve such a doubling of UK sales, at least via the group’s traditional route of organic growth, by 2020. Such a goal requires the business to grow by an average of 10% each year for the next seven years, an unprecedented rate in recent times even for a single year. The retailer will continue to be hindered by its struggle to secure new sites for physical stores. Also, online will remain a minor contributor to overall sales, as the retailer is likely to retain the relatively high charges for delivery.

IKEA is even less likely to double market share, as the overall furniture market will also grow and the kind of major shake-out of competitors that would allow it to pick up large chunks of market share has already happened during the downturn. Nevertheless, we expect IKEA to post robust organic growth averaging around 4% in the coming years.

PetSmart benefits from continued growth in pet supply category November 22, 2013 | Retailing Today http://www.retailingtoday.com/article/petsmart-benefits-continued-growth-pet-supplycategory?ad=news PetSmart’s third quarter results benefited from consumers who continue spending money on their pets despite a still-challenging consumer environment.

The company’s earnings per share jumped 17.3% to $0.88 from $0.75 in the third quarter of 2012.

Net income totaled $92 million for the quarter, compared to $82 million in last year’s third quarter.

The company reported total sales for the third quarter of $1.7 billion, a 4% increase from the yearago quarter. Comparable store sales grew 2.7%, including comparable transactions growth of 0.2%.

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Services sales, which are included in total sales, grew 5.2% to $184 million.

“Given the challenged consumer environment during the quarter, we are pleased with our results and level of execution,” said CEO David Lenhardt. “Our performance demonstrates the strength and stability of our business.”

For the fourth quarter, the company anticipates comparable-store sales growth of 3% to 3.5% and total sales growth of approximately 3%.

GAP ekes out seventh straight comp gain November 22, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86948?WTrss_f=Daily%20News%20Summary&WTrs s_a=GAP%2Bekes%2Bout%2Bseventh%2Bstraight%2Bcomp%2Bgain&WTrss_ev=a For its third quarter ended 2 November, Gap saw sales increase 3% to USD3.98 billion. This compares with USD3.86 billion for the third quarter of fiscal 2012. On a comparable currency basis, sales rose 5% from a year ago. Total comparable sales increased 1% versus last year, representing Gap’s seventh consecutive quarterly gain. Comp sales by banner were as follows: Gap Global, up 1%; Banana Republic Global, down 1%, and Old Navy Global, flat. All three banners reported comp sale gains in the mid-to-high single-digits in the same year-ago quarter.

The company also continues to gain traction in its online division. Online sales totaled USD589 million in Q3. This constitutes a 20% increase from USD491 million in the comparable 2012 period.

Gap’s gross margin rate slipped 126 basis points from 41.2% in the same prior-year period to 40.0% in Q3 2013. Still, the company was able to realize stronger net income on lower operating expenses and interest expense. Indeed, net income climbed 9.4% from a year earlier to USD337 million.

Despite a solid quarter, Gap’s failure to readjust its guidance for fiscal year earnings upward disappointed industry analysts and implies a fourth-quarter forecast below Wall Street expectations.

Planet Retail supports Gap’s modest view of the Q4 results, given that the retailer continues to generate more than three-quarters of total company sales in the challenging US market.

Efforts by the retailer to advance its international holdings, particularly via the Gap banner in China and Old Navy in Japan and elsewhere in Asia, are unlikely to have a meaningful impact on near-term results but should lessen Gap’s reliance on a single market over the long term.

Double-digit comps slide at ABERCROMBIE & FITCH November 21, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86942?WTrss_f=Daily%20News%20Summary&WTrs s_a=Double-digit%2Bcomps%2Bslide%2Bat%2BABERCROMBIE%2B%2526%2BFITCH&WTrss_ev=a Abercrombie & Fitch Co. (A&F) saw sales declined 12% year-on-year to USD1.03 billion in the third

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quarter ended 2 November. Comparable store sales - including e-commerce - decreased 14%, the seventh consecutive quarterly decline in this important metric. By banner, comparable store sales fell 13% at Abercrombie & Fitch, 4% at abercrombie kids and 16% at Hollister.

The quarterly total sales decline was steepest in the US (a fall of 18%), where the retailer generates roughly two-thirds of sales. Sales from international operations inched up 2% to USD358.4 million. Ecommerce sales increased 10% to USD174.6 million.

Gross margin also declined in the third quarter, down 130 basis points from a year ago to 63% of sales. Inventory writedowns associated with the restructuring of the Gilly Hicks business contributed to the weaker gross margin ratio. Higher stores and distribution expenses related to Gilly Hicks restructuring – as well as store asset impairment charges – depressed operating profit. As a result, the company generated a net loss of USD15.6 million in the third quarter, against net income of USD84.0 million in the same 2012 quarter. Excluding special charges, A&F reported net income of USD40.5 million.

During a recent investor meeting, the company warned that the fourth quarter would be very challenging, and Planet Retail likewise expects the teen apparel retailer will end the year on a downswing. Weak sales and continued inventory accumulation will surely prompt steeper discounting and further erosion of already declining margins. At best, A&F will use the quarter to right-size its inventory to begin fiscal 2014 on a positive note.

Sears stays focused following third-quarter loss November 21, 2013 | Retailing Today http://www.retailingtoday.com/article/sears-stays-focused-following-third-quarter-loss?ad=news Despite its continuing turnaround efforts, Sears Holdings widened its loss in the third quarter after sales fell at both Sears and Kmart.

The company reported a net loss for the quarter ended Nov. 2 of $534 million, or $5.03 a share, from $498 million, or $4.70 a share, a year earlier.

"We are proactively transforming our business to a member-centric integrated retailer leveraging Shop Your Way to benefit from the changing retail landscape. We are transitioning from a business that has historically focused on running a store network into a business that provides and delivers value by serving its members in the manner most convenient for them: whether in store, in home or through digital devices," said Edward S. Lampert, Sears Holdings' chairman and CEO. "We are driving this transformation by investing in capabilities to enable members access to the broadest possible assortment of products and services, enhancing our membership benefits associated with SYW, developing digital and social relationships with our members, using data and analytics to make targeted offers and decisions delivered in real time and expanding our reach through Marketplace and delivery options."

Lampert is staying positive and pointing to progress, citing “substantive” continued increases in the company’s SYW member engagement metrics. But the investments the company has made in its

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member-centric model as well as in traditional promotional programs have adversely affected its margin.

Revenues decreased $585 million to $8.3 billion for the quarter, as compared to revenues of $8.9 billion for the year-ago quarter. The revenue decrease was primarily due to the effect of having fewer Kmart and Sears full-line stores in operation, which accounted for approximately $200 million of the decline, as well as lower domestic comparable store sales, which accounted for approximately $170 million of the decline.

Revenues were also impacted by the separation of Sears Hometown and Outlet Stores, which occurred in last year’s third quarter.

For the quarter, domestic comparable store sales declined 3.1%, representing a decrease of 2.1% at Kmart and 4% at Sears domestic. The decline at Kmart reflects decreases in its transactional categories, such as grocery and household and drugstore, as well as declines in consumer electronics and toys. These decreases were partially offset, however, by increases in the apparel and seasonal and outdoor living categories. The decline at Sears domestic reflects decreases in most categories including the consumer electronics, lawn and garden, tools, home appliances and apparel categories, as well as declines at Sears Auto Centers, partially offset by an increase in the home category.

Canada Expansion Hits Target’s Q3 November 21, 2013 | Supermarket News http://supermarketnews.com/retail-amp-financial/canada-expansion-hits-target-s-q3 MINNEAPOLIS — Target Corp. here said its investment in Canada resulted in a decline in net income for the third quarter and nine-month period that ended Nov. 2, while sales advanced.

Net income for the quarter fell 46.4% to $341 million and sales increased 4% to $17.3 billion; for the year-to-date net income declined 28.8% to $1.5 billion, while sales were up 3% to $51.1 billion.

In its U.S. segment, Target said sales rose 2% to $16.9 billion for the quarter, including an increase of 0.9% in comparable-store sales, while sales in the new Canadian segment were $333 million. For the nine-month period U.S. sales rose 1.6% to $50.4 billion, including a comp-store increase of 0.5%, while Canadian sales were $694 million.

According to Gregg Steinhafel, chairman, president and chief executive officer of Target, "Thirdquarter financial results reflect continued strong execution in our U.S. segment in an environment where consumer spending remains constrained. In our Canadian segment we are focused on improving performance as we transition from opening to operating our 124 stores."

John J. Mulligan, executive vice president and chief financial officer, said U.S. comp trends were softer than expected in October "as consumers witnessed the dysfunction in Washington. However, this weakness was offset by the calendar shift, which moved a meaningful amount of Halloween sales into the third quarter."

He also said transactions in the quarter were down 1.3%, which was "more than offset" by a 2.2%

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increase in average transaction size, "which was driven entirely by an increase in average retail per item, largely by electronics."

For the nine-month period transactions slipped 1.5%, while average transaction size rose 2.1%. He said Target is continuing to refine operations and improve performance in Canada, including making progress in rationalizing its inventory position, updating item counts in stores and distribution centers and improving network flow.

US housing rebound cheers THE HOME DEPOT November 20, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86907?WTrss_f=Daily%20News%20Summary&WTrs s_a=US%2Bhousing%2Brebound%2Bcheers%2BTHE%2BHOME%2BDEPOT&WTrss_ev=a Benefiting from an improved US housing market, The Home Depot saw sales climbing 7.4% to USD19.5 billion for its third quarter ended 3 November. On a like-for-like basis, comparable store sales for the quarter were up 7.4%, with comp sales for US stores a positive 8.2%. Net earnings for Q3 were up 42.7% to USD1.35 billion.

Based on its year-to-date performance and outlook for the remainder of the year, the company raised its fiscal 2013 sales guidance and now expects sales to rise approximately 5.6%. Comparable store sales, on a 52-week like-for-like basis, are expected to be up in the region of 7% for the year.

A bubble in the housing market was at the core of the 2007-2009 financial crisis and the subsequent gradual recovery has seen more Americans investing in their properties and undertaking delayed home improvement projects. As the biggest US operator, the big orange box will be a natural destination for those seeking materials and tools. The Home Depot’s closest rival Lowe's is due to report results on Wednesday 20 November.

LOWE’S rides US housing recovery wave November 20, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86924?WTrss_f=Daily%20News%20Summary&WTrs s_a=LOWE%25e2%2580%2599S%2Brides%2BUS%2Bhousing%2Brecovery%2Bwave&WTrss_ev=a The second-largest US home improvement retailer, Lowe’s, raised its fiscal year 2013 guidance after third-quarter revenues rose 7.3% to USD13 billion. The results showed uplift from a revamped merchandising strategy and renewed strength in the domestic housing market. “The home improvement industry is poised for persisting growth in the fourth quarter and further acceleration in 2014,” Robert Niblock, Lowe’s Chairman, President & CEO said.

The company trimmed slow-selling products from inventory and negotiated lower prices with vendors in pursuit of rival Home Depot, which also posted strong results yesterday. Lowe’s samestore sales climbed 6.2% in the quarter. Net income in the quarter rose 26% to USD499 million.

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Both The Home Depot and Lowe’s are benefiting from a housing market recovery which has given homeowners confidence to remodel their kitchens and bathrooms. However, Lowe’s results and guidance update fell short of analyst expectations, highlighting the company’s struggles in catching the market leader.

J.C. Penney looks on bright side following third-quarter loss November 20, 2013 | Retailing Today http://www.retailingtoday.com/article/jc-penney-looks-bright-side-following-third-quarterloss?ad=news Despite posting a larger-than-expected loss for its third quarter, J.C. Penney pointed to hopeful signs that its business is starting to stabilize as its heads into the holiday season.

Penney reported a loss of $489 million in the three months ended Nov.2, compared with a loss of $123 million in the year-ago period.

Sales fell 5.1% to $2.78 billion. Same-store sales were down 4.8%, but the period ended with its first monthly gain since December 2011. And online sales rose 24.5%, to $266 million.

“We are proud of the company’s October sales performance, encouraged by the early weeks of November,” Myron E. Ullman III, the company’s chief executive, said in a statement.

In a statement released Wednesday, Penney CEO Myron Ullman said that he is "encouraged" by sales in the early weeks of November, and the company believes it is “making strides” toward a path to long-term profitable growth "Our strategies to reconnect with customers are beginning to take hold, and this became increasingly clear as the quarter progressed," Ullman stated.

In an encouraging sign, the retailer said that gross profit margin improved to 29.5% in the quarter, compared with 32.5% last year.

Q3 sees BEST BUY turnaround take effect November 19, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86906?WTrss_f=Daily%20News%20Summary&WTrs s_a=Q3%2Bsees%2BBEST%2BBUY%2Bturnaround%2Btake%2Beffect&WTrss_ev=a Best Buy has announced its third quarter results for the period to 2 November 2013. Revenue declined slightly to USD9.36 billion. The US-based electronics specialist saw positive comps in its domestic market. Store comps increased 1.7% while online comps jumped 15.1%. However, the international segment saw comp sales fell 6.4%.

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These results show that Best Buy’s Renew Blue strategy for a US turnaround is working (last year US store comps fell 4% during the same period). The retailer said sales were strong despite the shortterm disruptions caused by the ongoing roll-out of the floor space optimisation, the retail deployment of the Windows Stores and the continued rationalisation of non-core businesses.

However, the continuing fall in international comps suggests the retailer is placing its focus on the US at the expense of its other trading markets.

Best Buy attributed its impressive growth online to increased traffic, higher average order values and more custom coming from online orders being placed inside bricks and mortar stores. The retailer also noted the positive impact of higher inventory availability supported by ship-from-store and online distribution centre expansion initiatives.

Another bumper quarter for TJX November 19, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86904?WTrss_f=Daily%20News%20Summary&WTrs s_a=Another%2Bbumper%2Bquarter%2Bfor%2BTJX&WTrss_ev=a US off-price fashion retailer TJX has once again demonstrated its ongoing momentum with impressive sales and earnings for the third quarter ended 2 November. Net sales increased 9% to USD7 billion, while consolidated comparable store sales increased 5% over last year’s reported 7% increase. Net income for the third quarter was USD623 million.

For the first nine months of Fiscal 2014, net sales totaled USD19.6 billion, an 8% increase over last year. Consolidated comparable store sales increased 3% over last year’s reported 8% increase. Carol Meyrowitz, CEO, commented: “The fourth quarter is off to a good start and we see exciting opportunities for this holiday selling season."

Off-price retailing in the US has been booming for the last few years. TJX, along with rival Ross Stores are key beneficiaries from the growing demand for concepts which offer brands at attractive price points. The off-price sector is also gaining acceptance amongst suppliers and this channel is now factored into range planning.

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Technology Amazon testing unmanned drones for parcel delivery December 2, 2013 | The Retail Bulletin http://www.theretailbulletin.com/news/amazon_testing_unmanned_drones_for_parcel_delivery _02-12-13/ Online retail giant Amazon is testing unmanned drones for the delivery of customer purchases in the US. Amazon chief executive Jeff Bezos revealed on the CBS television programme 60 Minutes yesterday that the drones could deliver packages that weigh up to 2.3kg. He said the ‘Octocopers’ could pick up the packages from Amazon’s distribution centre, fly unmanned through the air and deliver them to customers' homes in as little as 30 minutes as long as they were in a 10 mile radius of the centre.

"I know this looks like science fiction, but it's not," Bezos told the programme. "We can do half-hour delivery... and we can carry objects, we think, up to five pounds, which covers 86% of the items that we deliver."

Bezos said the service, which will be called Amazon Prime Air, would probably not be able to start for another four to five years pending approval by the Federal Aviation Administration.

Last month Amazon announced that it was to begin delivering packages to its US customers via the US postal service on Sundays as it looks to make delivery quicker and more convenient for customers.

TESCO raises its game in UK online November 28, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/87017?WTrss_f=Daily%20News%20Summary&WTrs s_a=TESCO%2Braises%2Bits%2Bgame%2Bin%2BUK%2Bonline&WTrss_ev=a Same-day delivery for Tesco online grocery is ready for full roll-out, reports The Guardian. The move follows successful trials of same-day delivery in Mansfield, Nottinghamshire. The service means shoppers can order goods by midday for delivery by 6pm. Simon Belsham, Managing Director of Grocery Home Shopping, said: "The trial is working successfully and we are looking to roll that out further."

The news emerged as the retailer opened its sixth dark store, a 120,000 square feet (11,148 square metres) facility in Erith, south-east London. According to Belsham, the centre was needed as online sales are growing faster in London than elsewhere. The new Erith dark store will be able to process up to 4,000 orders a day when running at full capacity.

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The facility stores a range of 30,000 products, 16% more than Tesco’s five other dark stores.

Belsham explained this allows Tesco to offer more specialist ethnic foods as well as upmarket lines and thus appeal to a broader range of London shoppers. Looking ahead, the retailer plans a further dark store in Didcot (Oxfordshire) to join Enfield, Greenford, Aylesford, Crawley, Croydon and now Erith.

OTTO GROUP rationalises payment platforms November 27, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/87000?WTrss_f=Daily%20News%20Summary&WTrs s_a=OTTO%2BGROUP%2Brationalises%2Bpayment%2Bplatforms&WTrss_ev=a EOS Payment Solutions, an Otto Group-owned subsidiary, has partnered with payment service provider Computop. Under the agreement, Otto Group will leverage the Computop Paygate platform to process online payments for Otto.de and some 100 of its retail banners. These subsidiaries include companies such as BonPrix, Freemans Grattan, Frankonia, Lascana and myToys.

As part of the agreement, EOS Payment Solutions customers will gain access to over 50 domestic and international payment methods, via Paygate, including RatePay and Otto Group’s own Yapital system, as well as a wide selection of international banks for card payments. In addition, Paygate supports PoS and mPoS payments as well as offering fraud protection. Existing EOS platforms will remain available until 2015, giving customers time to transfer to Computop Paygate if needed.

The move allows the Otto Group subsidiary to streamline its payment platform, as it will no longer need to further develop its three separate platforms. The move also opens up additional payment methods and features which could be extremely useful for Otto Group’s future retail business development.

JDA to streamline SHELL trans-market operations November 27, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86985?WTrss_f=Daily%20News%20Summary&WTrs s_a=JDA%2Bto%2Bstreamline%2BSHELL%2Btrans-market%2Boperations&WTrss_ev=a Forecourt store operator Shell has implemented JDA Enterprise Store Operations (ESO) in the Cloud as a key component of their site forecourt systems upgrade programme. When completed, ESO will feature at over 2,300 sites in selected markets. Since initially going live in Norway in 2010, Shell has taken the solution to nine countries, including Denmark, France, Luxembourg, the Netherlands, South Africa, Switzerland and the UK. Expansion is expected to continue with go-lives planned for Austria this month.

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The implementation has helped Shell address the complexity of efficiently managing global store operations among disparate locations with varying cross-dependencies, multiple solution integrations and vendor alliances. Shell had been challenged by compliance requirements and solution diversity due to an historical market-by-market deployment approach. This was increasing costs and made it difficult to sustain an appropriate maintenance strategy.

Shell can now standardise data formats and centralise many of its data management and reporting tasks. This offers Shell greater inventory visibility to enable proactive retail site management designed to enhance the customer experience. The solution upgrade also removes the many points of failure associated with locally-deployed solutions and local data format variation.

Lowe's upgrades mobile tech November 27, 2013 | Retailing Today http://www.retailingtoday.com/article/lowes-upgrades-mobile-tech?ad=news Lowe’s has integrated Point Inside's StoreMode mobile shopper engagement platform into its mobile app to improve the in-store customer experience, just in time for Black Friday and Cyber Monday.

Shoppers at all Lowe's locations will be able to use the Product Locator capability to search for products and instantly see where they are located on a detailed store map using Lowe's iOS and Android mobile apps or Lowe's mobile-optimized website.

All in-stock items' aisle and/or bay locations are represented as pins on an interior map of the specific Lowe's store. The Lowe's app also provides store-specific product search, prices, inventory availability, detailed product information, customer ratings and reviews and weekly ads. In addition, customers can create and manage personalized shopping lists the same way they would on a piece of paper using natural language terms or by scanning product barcodes.

"Helping customers complete their home improvement projects simply and easily is what Lowe's is all about," said Ronnie Damron, Lowe's SVP of multichannel testing and commercialization. "We're constantly looking for new, innovative ways to use technology to serve our customers better.

Whether customers are browsing the store for ideas or searching for a specific item in a hurry, we think the Product Locator feature will simplify the shopping process, creating a better experience that encourages customers to come back again and again."

"We're excited to work closely with Lowe's to help them achieve their goals in reaching customers through new technologies," said Josh Marti, CEO of Point Inside. "As a retail thought leader, Lowe's quickly understood the benefits of our StoreMode platform. Together, we have delivered a win-win by improving the customer experience."

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TESCO UK underway with ESLs November 22, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86956?WTrss_f=Daily%20News%20Summary&WTrs s_a=TESCO%2BUK%2Bunderway%2Bwith%2BESLs&WTrss_ev=a At an Express store in Letchworth, Tesco has begun the UK roll-out of Electronic Shelf Labels (ESL) from Samsung, Retail Week reports. In September, the retailer's CIO Mike McNamara told Planet Retail about plans to introduce the technology to the UK after successful implementations in Hungary and Poland. The segment-based e-paper labels were developed by Tesco together with Samsung.

As reported this week, Rewe Group in Germany is to deploy the Samsung tags as well. In the first outlets to be equipped with the technology ESLs are being used for all ambient products and chilled items, as well as for frozen food in chest freezers.

METRO GROUP restructures IT operations November 22, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86952?WTrss_f=Daily%20News%20Summary&WTrs s_a=METRO%2BGROUP%2Brestructures%2BIT%2Boperations&WTrss_ev=a From December, a new Corporate IT Management department will be responsible for co-ordination between IT and operations at Metro Group, Lebensmittel Zeitung reports. The German retail giant is looking to improve co-operation and synergies between the IT departments of its individual banners.

A particular importance will be given to business-strategic topics such as e-commerce or IT governance. Silvester Macho, leader of Metro Systems, will head up the newly formed department as CIO. Dirk TĂśpfer and Wim van Herwijnen will jointly head up Metro Systems, replacing Macho.

SEARS juices up m-commerce app November 20, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86912?WTrss_f=Daily%20News%20Summary&WTrs s_a=SEARS%2Bjuices%2Bup%2Bm-commerce%2Bapp&WTrss_ev=a Sears Holdings is bolstering its mobile app to enable Sears and Kmart Shop Your Way rewards scheme members to access special deals and personalised offers. The Shop’In feature also allows users to compare prices and read customer reviews, enter Shop Your Way sweepstakes, collect ecoupons, chat with fellow members and get real-time access to shop staff. Mobile shoppers also can browse and buy more than 100 million items online and arrange for free instore pick-up.

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With mobile apps becoming increasingly common, Sears is prudent to add the Shop’In feature in order to help it stand out in a crowded and increasingly sophisticated sector. Providing such elements as pricing data and customer reviews adds transparency and contributes to greater shopper trust.

Macy’s deploys enhanced mobile tech from Shopkick November 20, 2013 | Retailing Today http://www.retailingtoday.com/article/macy%E2%80%99s-deploys-enhanced-mobile-techshopkick?ad=news Macy’s flagships in Herald Square, New York, and Union Square, San Francisco, are the first major retail locations to deploy Shopkick’s Apple iBeacon-based presence signal. The trial is in closed beta and is anticipated to go live to Shopkick users within weeks.

As shoppers enter Macy's, ShopBeacon can remind those who've opted in to open their Shopkick app, and in the future, also deliver personalized value with department-level granularity. Building on Apple's iBeacon, an iOS 7 Bluetooth Low Energy (BLE) mobile protocol, ShopBeacon adds encrypted signals to protect retailers and consumers, and complements it with Shopkick's other proprietary technologies for added accuracy and scale.

ShopBeacon can welcome shoppers when they enter a Macy's store and shows them locationspecific deals, discounts, recommendations, and rewards, without having to remember to open the app. It can also tie at-home browsing behavior to in-store benefit; if the customer "likes" a specific product online, if they so choose, ShopBeacon can remind them when they enter the store that Macy's sells it. Even better, in the future it can also deliver department-specific offers throughout the store – so favorite boots show up at the most useful time: in the shoe department.

"We have made great strides in creating the best omnichannel experience at Macy's, and delivering the most relevant messages and offers to our customers at what is arguably the most helpful moment – while they are shopping in our stores – can be very advantageous for the customer," said Martine Reardon, Macy's chief marketing officer. "With this ShopBeacon trial, we are testing the most leading-edge mobile technologies, because we believe they can even further enhance the instore experience for Macy's shoppers."

SHOP DIRECT tracks the tablet-user's gaze November 19, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86902?WTrss_f=Daily%20News%20Summary&WTrs s_a=SHOP%2BDIRECT%2Btracks%2Bthe%2Btablet-user%2527s%2Bgaze&WTrss_ev=a Home shopping retailer Shop Direct Group is running in-house testing to discover how consumers

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view and navigate its sites on tablet devices. The retailer is using eye-tracking technology to gauge usability patterns on tablet PCs. Results of the research will be used in designing the layout of its tablet-optimised websites.

Mobile devices are quickly becoming an integral element of the shopper journey. Shop Direct itself predicts that every sale it achieves will involve a mobile device at some point in the path to purchase within the next two years. This level of research into tablet usability is a very shrewd move given the rapid adoption of the device for shopping. By conducting such detailed research, Shop Direct will be able to build a tablet-optimised site tailored to shopper needs, leading to higher usage and more importantly, higher conversion rates.

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Strategy Yucaipa completes acquisition of Tesco's Fresh & Easy Stores November 29, 2013 | Fresh Plaza http://www.freshplaza.com/article/115720/Yucaipa-completes-acquisition-of-Tescos-Fresh-andEasy-Stores#SlideFrame_1 The Yucaipa Cos. this week completed its acquisition of 150 Fresh & Easy Neighborhood Market stores from Tesco PLC, salvaging most of the London-based retailer’s struggling U.S. grocery stores.

The acquisition is being financed by the London-based retailer with a $126 million loan, part of an agreement reached before Tesco put Fresh & Easy into Chapter 11 bankruptcy protection. “We are excited about acquiring the Fresh & Easy business,” Ron Burkle, managing partner of Los Angelesbased Yucaipa said in a statement. “We are building a great foundation and see an incredible opportunity to create a healthy convenient food experience.”

Yucaipa, a private investment firm, chose former 7-Eleven Inc. CEO James Keyes to operate the grocery chain as it emerges from bankruptcy. Founded in 2006, Fresh & Easy operates 167 grocery stores in California, Arizona and Nevada and a production facility in Riverside, California.

Speaking when the deal was announced in September, Tesco boss Philip Clarke said the sale represented the "best outcome' for Tesco shareholders. In October, Tesco announced that it plans to open over 130 stores in China as part of a joint venture with China Resource Enterprise (CRE).

Lidl to invest €500m in Italy over 5 years November 29, 2013 | Fresh Plaza http://www.freshplaza.com/article/115709/Lidl-to-invest-€500m-in-Italy-over-5years#SlideFrame_1 Lidl is planning on investing €500 million on the growth and modernisation of its sales network in Italy. They hope to stagger the investment, €100 million a year for five years.

The German chain will open 120 new stores (from 800 to 1,200 sq m) during this time frame - That's the equivalent of 24 a year and one every two weeks.

On 19 December, new stores in Rome (the 15th), Lamezia Terme, Bresso and in the province of Padua will open. Part of the investment will be used to update the 560 stores and provide them with new services.

"Our growth will continue at the same pace as in the past, also thanks to the success we had so far.

The Italianisation of the supply is also helping, as 70% of the products are made in Italy also with some PDO and PGI ones," explained Luca Burgazzoli from Lidl Italia.

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BAUHAUS takes 24 MAX BAHR outlets November 28, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/87008?WTrss_f=Daily+News+Summary&WTrss_a=B AUHAUS%2btakes%2b24%2bMAX%2bBAHR%2boutlets&WTrss_ev=a After the failure of efforts to sell the insolvent German DIY retailer Max Bahr, the sale of its properties has begun. A total of 24 former Max Bahr outlets are to be sold to Mannheim-based rival Bauhaus, Reuters and dpa reports. The deal will see the disposal of stock and a rebranding of stores to the Bauhaus banner.

On Wednesday, talks to sell 58 of the 73 Max Bahr outlets to German supermarket and DIY store operator Globus failed as the parties involved could not agree on leasehold prices. At that time, it was said that a solution for 20-25 stores could be within reach. On Thursday, the clearance sales at the 73 Max Bahr stores should begin.

AUCHAN undertakes Italian makeover November 28, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/87016?WTrss_f=Daily%20News%20Summary&WTrs s_a=AUCHAN%2Bundertakes%2BItalian%2Bmakeover&WTrss_ev=a Auchan is looking to refurbish 14 hypermarkets in Lombardy by 2015, Italia Oggi reports. The focus on this region suggests it wishes to look its best for the Milan Expo 2015. The network has aged considerably since the opening of the first store in Turin almost 25 years ago, but Auchan has already updated half a dozen units, the latest being in Milano Vimodrone, at a cost of EUR17 million (USD22.68 million).

As to the assortment, Auchan Italy says more bulk products will be introduced, not only on the traditional categories such as pasta and nuts, but also in frozen food. The Vimodrone store will also have an increased focus on local products, up from the present 10% of the assortment. Non-food will not be neglected, with a greater focus on the books, pets and home & garden sections.

The monetising of Auchan’s Italian assets undertaken in August, with the transfer of real estate to Morgan Stanley, will surely give the retailer the necessary investment capital to regenerate a tiredlooking estate. This, in turn, will encourage traffic in a market that remains economically difficult and where smaller formats tend to be favoured by shoppers.

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AMAZON eager to unlock India November 25, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86967?WTrss_f=Daily%20News%20Summary&WTrs s_a=AMAZON%2Beager%2Bto%2Bunlock%2BIndia&WTrss_ev=a Amazon’s General Manager in India has confirmed that the company is engaging with the government on relaxing foreign investment laws on e-commerce. Any potential relaxation of the current law could free Amazon to begin selling direct to consumers. At present Amazon is restricted to operating B2B marketplaces amazon.in and jungle.com for local retailers and recently introduced Fulfilled by Amazon logistics services.

Amazon Director & General Manager of Seller Services Amit Deshpande said: “We believe FDI in ecommerce is good for the customers. Not only will they get more choices, but it will also improve the level of customer service for the industry.”

India is a huge potential market for e-commerce, driven by affluent young professionals and a growing use of mobile devices. However, international e-commerce retailers are currently prevented from selling direct to consumers within India and thus limited to the role of marketplace curator and logistics provider. Amazon entering the Indian B2C market would provide tough competition for established local players such as Flipkart and Myntra.com, both of which have benefited hugely from the absence of international competition to rapidly grow their e-commerce operations and revenues.

Piggly Wiggly to Outsource to C&S November 22, 2013 | Supermarket News http://supermarketnews.com/retail-amp-financial/piggly-wiggly-outsource-cs NORTH CHARLESTON, S.C. — Piggly Wiggly Carolina said Friday it will shut down its warehouses here and in Jedberg, S.C., and outsource its distribution to C&S Wholesale Grocers.

The company, which recently sold 29 stores to Harris Teeter and Bi-Lo, had indicated when that sale was first announced in September that it was developing an alternative distribution model.

In a statement provided to SN, Christopher Ibsen, a spokesman for Piggly Wiggly Carolina, said the company's 32 remaining corporate stores and its 28 franchised locations would be supplied by C&S's warehouse in Greenville, S.C. The transition is expected to take 90 to 120 days.

He said affected employees have been provided with at least 60 days notice, and that Piggly Wiggly Carolina “has organized and hosted numerous, on-site job interview days with outside companies, along with resume workshops, for employees,” among other actions.

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Piggly Wiggly Carolina is an employee-owned company operating primarily in rural towns in South Carolina and Georgia.

YUM! BRANDS adjusts global structure November 21, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86940?WTrss_f=Daily%20News%20Summary&WTrs s_a=YUM!%2BBRANDS%2Badjusts%2Bglobal%2Bstructure&WTrss_ev=a The US and international divisions of Yum! Brands’ KFC, Pizza Hut and Taco Bell banners are to be combined, while the company will keep its China and India units separate as part of a structural reorganisation. Yum! Restaurants China and India will remain as distinct entities, given their strategic importance and enormous growth potential. The reorganisation will be effective from 1 January 2014.

David Novak, Chairman & CEO, said: "We believe that having 100% focused brand teams will enable us to more aggressively accelerate growth. We also believe know-how sharing will be more powerful by bringing the US and international businesses together."

Planet Retail sees this as a progressive move for Yum! as the new structure will allow the company to have clear distinctions between its global business divisions, thereby leveraging leadership and supporting greater individual brand awareness and geographical focus.

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