RETAIL NEWS FLASH March 3, 2014
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 7 Technology .......................................................................................................................... 11 Strategy .............................................................................................................................. 14
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Sales & Marketing APPLE, AMAZON set-top secrets leaked February 24, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/87874 It seems the cat is out of the bag regarding Apple’s long-suspected set-top box refresh. An apparent Best Buy planogram – an internal document detailing a retailer’s shelf plans - has come to light showing information about the rumoured new Apple device. Apple already has a set-top box device on the market, but a new generation device has been expected for some time. The major disclosure contained in the document, though, is the (albeit limited) mention of an Amazon set-top box within the planogram too. If true, this would represent Amazon’s first foray into this category. Details on this device are sketchier than those for the Apple product, with only “Wi-Fi built in” noted as regards product spec. These developments have been rumoured for months, with recent reports suggesting both will be unveiled as early as March. As none of the three companies involved have commented on the leak, we remain at the speculation stage at the moment. However, it would come as no surprise were either product launched any time soon. Amazon’s entry into this particular field will doubtless ramp up competition in what is fast-becoming a critical category as regards the future strategies of the major multimedia operators.
AMAZON bundles UK services February 24, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/87876 From 26 February Amazon UK is combining its Prime and LOVEFiLM Instant services. Prime currently offers members unlimited one-day delivery on over seven million items and borrowing access to 500,000 Kindle books. LOVEFiLM Instant, to be rebranded as Prime Instant Video, includes unlimited streaming of more than 15,000 films and TV episodes. Since being bought out by Amazon three years ago, LOVEFiLM has more than tripled the selection available, added HD video and introduced apps for devices like Xbox One, PlayStation 4, Samsung and Sony TVs, plus iPads and iPhones. When the two schemes merge, Prime will be offered at GBP79 (USD129) a year. New customers signing up this week can lock in a full year of Prime for GBP49 (USD80). The enhanced Prime membership will provide additional benefits to previous users of both services. The new price represents a 35% saving while receiving all the benefits of the two previously separate services. However, Amazon Prime customers not interested in the entertainment service are suddenly faced with a hefty 60% price hike - Amazon Prime currently costs GBP49 (USD80) a year.
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At the same time, there will likely be some natural defection to competitors such as Netflix for those LOVEFiLM customers that are not heavy Amazon users. Netflix charges GBP5.99 (USD9.81) per month, about GBP72 (USD118) a year, the same price as the existing LOVEFiLM service. It’s a risky move, but if Amazon can convince shoppers of the value in a combined delivery/entertainment service, they will have an opportunity to lock those customers in for the long haul.
Amazon Fresh may be eyeing D.C., international expansion February 21, 2014 | Fierce Retail http://www.fierceretail.com/story/amazon-fresh-may-be-eyeing-dc-internationalexpansion/2014-02-21 Amazon (NASDAQ:AMZN) is building a 346,000 sq. ft. warehouse next to the future Amazon distribution center in Baltimore, and some sources believe this additional location could be used for an AmazonFresh expansion in Washington, D.C. and Baltimore. The Baltimore warehouse follows the same pattern that Amazon set when it expanded AmazonFresh into its current Seattle, Los Angeles and San Francisco markets according to retail analysts familiar with the matter. The timing and location of the new warehouse point to the possibility that Amazon could roll out its grocery delivery service in the metro D.C. and Baltimore areas. As speculation about a D.C.-area expansion mounts, the company also hinted they could be taking AmazonFresh abroad. Doug Gur, vice-president of Amazon U.K., recently spoke at the City Food Lecture in London where he alluded to global plans. "We don't publish forward strategy plans but history would suggest that once we roll out something across North America, typically that leads to international expansion," said Gur, reports Eurofruit. Amazon has previously stated that if early trials of the service perform well, there is a chance that it would launch AmazonFresh in 20 other urban areas in 2014, including some outside the U.S. Amazon has been testing grocery delivery in Seattle since 2007, and expanded the service to some parts of Los Angeles in June. The AmazonFresh service costs $299 per year for members. In addition to ordering grocery items online, AmazonFresh customers can add some local and Amazon.com items to their order.
Macy's targets mobile millennials with new promotion for American Rag February 21, 2014 | Fierce Mobile Retail http://www.fierceretail.com/mobileretail/story/macys-targets-mobile-millennials-newpromotion-american-rag/2014-02-21 Macy's (NYSE: M) is targeting millennials to promote its American Rag private label apparel by sponsoring musicians and concert tours paired with social and mobile components. American Rag is available exclusively at Macy's, and the all access campaign offers millennials direct access to exclusive music, videos, contests and private meet-and-greets with popular musicians. Pop-rock group We The Kings will kick off the first leg of the campaign this spring.
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As the debut artists, We The Kings will participate in a series of music, fashion and lifestyle activities, including in-store appearances at select Macy's stores across the country. Beginning this month, We The Kings will debut new songs available for download exclusively on Facebook.com/AmericanRag and Raggedmag.com. Throughout the American Rag ALL ACCESS campaign, participating artists will create and curate exclusive content for American Rag's digital properties including raggedmag.com and its social media channels. Mobile and social marketing encourages shoppers to follow @raggedmag on Instagram. Those who pose for photos and post to the social media site with the hash-tag #ARAllAccess have a chance to win a $50 Macy's gift card at each tour stop. For two weeks starting on March 31, fans can "regram" the official contest photo posted on the same day on Instagram with #ARAllAccess for a chance to win clothing that We The Kings singer/guitarist Travis Clark wore and autographed during the photo shoot for American Rag's latest advertising campaign. New artists will be announced throughout the year. American Rag is available exclusively at Macy's.
CARREFOUR Turkey gets fresh February 17, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/87791 For shoppers everywhere a key test of a retailer is the standard of its fresh offering. Carrefour in Turkey believes it is placed to make the most of its assortment in this category, local press reports. The franchise is set to change its fresh food supply policy to guarantee only the best produce makes it on to its shelves. Previously, 80% of fresh fruit & vegetables were supplied from wholesale markets, but Carrefour is looking to invert the trend. Going forward, 80% of the category overall will be supplied directly from Turkish farmers. To achieve this aim, warehouses formerly closed overnight are now to operate around the clock with multiple staff shifts. This will enable produce to reach the shelves within 36 hours of intake, against 72 hours previously. Carrefour Turkey is also to open a delicatessen store in Istanbul next month. The outlet, named Carrefour SA Gurme, is intended to strengthen the franchise’s reputation for quality. In addition, the retailer has confirmed that 80 of the 100 new Turkish stores planned for 2014 will operate under the newly introduced Carrefour Mini convenience store banner.
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POUNDSTRETCHER has a pet project February 17, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/87794 Poundstretcher is aiming to roll out 50 standalone Pet Hut stores this year, reports The Grocer. The fixed-price specialist is looking to high street locations for the banner, targeting sites of around 3,000-5,000 square feet (280-460 square metres). Poundstretcher initially began developing the concept in its stores and intends to continue putting Pet Hut inserts into 200 outlets by the end of 2014. Extending the Pet Hut concept will enable Poundstretcher to tap into the growing pet market, offering itself as a more affordable alternative to dominant market leader Pets at Home. It will also enable the retailer to differentiate itself against fellow fixed-price discounters, opening up an additional revenue stream from an almost unchallenged position. Given that many independent UK pet shops have not made it through the recession, the Pet Hut concept looks to be a clever move to fill what is currently a sizeable hole in the market and one offering a high margin at the basic or staple end of the assortment.
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Finance Online sales up at BEST BUY February 28, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/87950 Best Buy saw a slight revenue fall to USD14.47 billion for its fourth quarter ended 1 February. In the company’s domestic segment, comparable store sales declined 1.2%. However, online sales soared 25.8% to USD1.57 billion. In the international segment, revenue fell 9.6% to USD2.17 billion, which Best Buy attributed to fluctuations in foreign exchange rates, large format store closures in Canada and China and a comparable store sales decrease of 1.7%. For the full year revenue fell from USD43.91 billion to USD42.41 billion. Domestic comparable store sales fell 0.4%, an improvement from a decline of 1.7% the previous year. Online sales jumped 19.8%. The company’s international segment saw store sales fall 3.1%, but this again was a better performance compared to the previous year’s loss of 12%. The company continues to make progress with its Renew Blue initiative, exceeding its cost reduction target of USD725 million by USD40 million. The retailer has continued to invest in enhancing its customer experience, with the continued roll out of its ship-from-store scheme, increasing its shopin-shop outlets with Samsung and Windows and relaunching its loyalty schemes. It is pleasing to see the company is making headway with its Renew Blue initiative, with investments in improving the consumer experience necessary to ensure the retailer keeps pace with changing consumer demands. However, the results show that there is still progress to be made as the retailer grapples with an ailing consumer electronics market.
J.C. Penney is on the path to recovery, posts first quarterly profit since 2011 February 27, 2014 | Fierce Retail http://www.fierceretail.com/story/jc-penney-path-recovery-posts-first-quarterly-profit2011/2014-02-27 Things are finally looking up for J.C. Penney (NYSE: JCP). The struggling retailer posted its first quarterly profit in more than two years along with a gain in same-store sales. Compared to the massive loss a year earlier, Penney is on the path to recovery. J.C. Penney reported a net income of $35 million in the quarter that ended Feb. 1, compared with a loss of $552 million a year earlier. The company's last quarterly profit was in the quarter ended July 2011. Total sales fell 2.6 percent to $3.78 billion, although same-store sales rose 2 percent, the first gain since the quarter that ended April 2011. For the full year, total sales decreased 8.7 percent, and same-store sales decreased 7.4 percent. Gross margin widened to 28.4 percent from 23.8 percent, but was still negatively affected by vast clearance markdowns taken late in the quarter.
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Those numbers were better than many expected, and sent JCP shares up by as much as 14 percent in after-hours trading Wednesday. Looking ahead, J.C. Penney projected same-store sales will rise 3 percent to 5 percent in the fiscal first quarter. Gross margins are expected to continue improving year-over-year, while expenses are seen declining slightly. J.C. Penney CEO Mike Ullman is still cleaning up the mess left by former CEO Ron Johnson, who led the chain into a steep decline by introducing trendier brands and steering the company away from coupons and sales events. The disastrous results left the company with a huge sales deficit. Ullman said Wednesday during an earnings call that he expects J.C. Penney to complete its turnaround in 2014, boldly brushing off recent worries on Wall Street that the retailer is at risk of going bankrupt this year. "The most challenging parts of the turnaround are behind us," Ullman said, adding that J.C. Penney is heading into the final phase of its turnaround. The first two phases included firming up relationships with suppliers, stabilizing the brand and rebuilding its management, adding it was important to "restore calm and clarity of purpose." Phase three includes reviewing merchandising and marketing strategies to maintain momentum on gross margin gains, draw in more shoppers and continue boosting sales.
TESCO discloses online results February 26, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/87908 For the first time in many years, Tesco has revealed it made a trading profit on its grocery ecommerce arm. The company made a profit of GBP127 million (USD208 million) on sales of GBP2.5 billion (USD4.1 billion). It claimed all direct costs are fully charged to the e-commerce business. The retailer added that it would focus on customer profitability rather than channel profitability. This announcement is clearly good news although margins are very obviously razor-thin – with grocery e-commerce still one of the least profitable retail channels. That said, moves to roll out grocery click & collect will help increase the profitability of the channel – albeit it will likely never be as profitable as a bricks and mortar operation.
Sales uptick at OFFICE DEPOT due to merger February 25, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/87899 Total sales for Office Depot’s Q4 2013 climbed 33% to USD3.5 billion against the same period last year. Sales were USD11.2 billion for the full year 2013, an increase of 5% compared to the prior year. Office Depot’s fourth-quarter and full-year 2013 results include the OfficeMax operations from the date of the merger (5 November 2013) through 28 December 2013.
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For the full year 2013, Office Depot reported an operating loss of USD205 million versus a loss of USD31 million in 2012, and a net loss attributable to common stockholders of USD93 million against a USD110 million net loss in 2012. The reported results include merger-related expenses, asset impairments and other charges. No major restructuring announcements were made with the results. It will be interesting to see how efficiency measures - particularly in terms of Office Depot's US store network - pan out over the next year.
Barnes & Noble receives stake offer worth $661 million February 25, 2014 | Fierce Retail http://www.fierceretail.com/story/barnes-noble-receives-stake-offer-worth-661-million/2014-0225 Barnes & Noble (NYSE:BKS) has received an offer from G Asset Management, a firm that focuses mostly on private investment deals, to acquire a majority stake in the struggling bookseller. The firm submitted a buyout offer for 51 percent of Barnes & Noble's outstanding market shares at $22 a share, an increase over the company's current value of $17.66 a share as of Tuesday. Altogether, the offer is worth about $661.5 million. New York-based G Asset also submitted an alternative proposal to buy 51 percent of Barnes & Noble's Nook e-book division at $5 a share. Barnes & Noble confirmed receiving the offer but has not responded publicly about its status. This is not the first time that Barnes & Noble has been pursued by G Asset Management. The firm previously offered Barnes & Noble $20 a share in November and urged the board of directors to consider spinning off the dwindling Nook division. Barnes & Noble has faced several hardships in recent years as consumers increasingly turn to cheaper e-books and Amazon's aggressively discounted book prices. The Nook division can't keep up with Apple's iPad or Amazon's Kindle, and reported a 32 percent year-over-year decline during the most recent quarter. In light of these troubles, Barnes & Noble said that it was reducing the size of its Nook segment staff. Former CEO William Lynch resigned in July amid declining sales as the bookseller reported an annual net loss of $154.8 million in the 2012 fiscal year. Michael Huseby, the head of its digital division, was named chief executive in January.
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WALMART downsizes formats on dim Q4 February 20, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/87846 The most interesting nugget within otherwise lackluster Q4 results was Walmart's increased commitment to small-boxes in the US. Tellingly, the business is to press ahead with wider expansion of the Express format (stores average 12,000-15,000 square feet (1,100-1,400 square meters), which has hitherto only been at the test stage in a select few markets. Having previously given guidance of 120-150 new small format stores in 2014, Walmart now plans to open between 270-300 small-boxes this year. Small formats also includes the Neighborhood Market banner, which average 38,000 square feet (3,500 square meters). If guidance on these were unchanged (i.e. 120-150), it would implicitly follow that the additional 150 new stores will be Walmart Express outlets. But the reality is likely to be a mix of both Neighborhood Markets and Express and the exact balance remains to be seen. That the world's largest retailer appears to have finally cracked a small-box formula in the US was scant good news in the context of the wider Q4 release. The shock of negative comps in Q4 at both Walmart US (down 0.4%) and Sam's Club (0.1%) was already telegraphed at the unscheduled trading update released at the end of January - not good, but at least expected. For the year as a whole, the company reported consolidated net sales of USD473.1 billion, which represents year-on-year growth of just 1.3% (2.5% at constant currency rates). For the year as a whole, Walmart US saw comps decline 0.6%. Despite the slowdown in the final quarter, Sam's Club reported annual comp growth of 0.7%. Operating income provided an even more negative picture. Consolidated net income was USD26.9 billion, representing a decline of 3.1%. Even stripping out already-highlighted 'discrete'/exceptional items, underlying operating income grew by a very meager 0.2%. International was the primary drag on profitability. Walmart International reported a sales decline of 0.4% in Q4 while operating income collapsed 46% to USD1.3 billion.
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Technology Neiman Marcus steps up digital strategy with new shopping app February 27, 2014 | Fierce Retail http://www.fierceretail.com/story/neiman-marcus-steps-digital-strategy-new-shoppingapp/2014-02-27 Neiman Marcus has completed the development of its new shopping app, one of many omnichannel strategies the retailer has earmarked $100 million to develop. The NM app is the second go-round at introducing such a mobile strategy. The app was first piloted in 2012, and allowed shoppers to directly correspond with sales associates and alerted sales associates when certain customers arrived in the store. The new version of the app includes those same features and then some. In addition to allowing shoppers to text, email, call or FaceTime any sales associate, it's also able to keep track of points, Perk Cards and Point Cards. It lets users view upcoming designer appearances and promotions, follow the blog and watch videos. The app is currently only available for iOS devices and can be downloaded for free. Developing the NM app was the next step in helping Neiman Marcus connect with its affluent customer base. In recent years, the company has discarded its well-known "clientele books" in exchange for iPhones for store associates to make it easier to stay in touch with shoppers. Recently, a Neiman Marcus associate made a $250,000 sale of dinnerware by texting images to a woman on her yacht, according to Jim Gold, president of Neiman Marcus.
Walmart buys recipe startup Yumprint to fuel grocery delivery service February 27, 2014 | Fierce Retail http://www.fierceretail.com/story/walmart-buys-recipe-startup-yumprint-fuel-grocery-deliveryservice/2014-02-27 Walmart (NYSE: WMT) is picking up steam in its quest to conquer grocery delivery service. The retailer on Wednesday announced that it has purchased Yumprint, a company that publishes a network of recipes for food blogs, and will incorporate the technology into Walmart To Go. Yumprint runs both a mobile app and Web site which posts more than 15 million recipes per month curated from over 2,000 food blogs. The technology helps users understand recipe semantics, match ingredients to advertisements, calculate nutritional information and prepare shopping lists from recipes. Viewerscan also uses Yumprint to organize their favorite recipes and weekly meal planning. Yumprint founders Wes Dyer and Chris Crittenden will join the Walmart Labs team in San Bruno, Calif. It's unclear how Walmart will incorporate Yumprint into its business, but Walmart is confident that the acquisition will improve the Walmart To Go grocery shopping experience.
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"Chris and Wes's ideas and ambitions for transforming the grocery shopping experience match the global opportunity Walmart enjoys in this space, and their accomplishments with Yumprint just scratch the surface of what we're going to do next together," Ben Galbraith, Walmart.com's vice president of global products, wrote in a blog post. Terms of the deal were not disclosed. The Yumprint acquisition follows Walmart's recent announcement on Jan. 29 that it is expanding the Walmart To Go service to Denver. Walmart has been testing grocery delivery in San Jose and San Francisco since 2011.
LIDL goes contactless in Portugal February 21, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/87851 Contactless payment will soon be available to Lidl Portugal shoppers, Distribuicao Hoje reports. The Schwarz Group-owned discounter will test the payment method in a few stores and roll it out across its Portuguese network should the trial prove successful. Thus far, Lidl only offers a contactless option in its UK stores. Lidl will be the first retailer in Portugal to offer such a solution. Portugal’s neighbour Spain has progressed much further in contactless systems. According to figures from Visa Europe, Spanish consumers made 2.1 million purchases this way in November 2013. By the end of 2014, Visa Europe estimates there will be a total of 10 million contactless cards in use in Spain.
AMAZON Coins expanded to Android devices February 20, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/87848 Customers in the US, UK and Germany can now use Amazon Coins virtual currency on Android phones and other tablets. Coins were previously only available for use on Kindle Fire tablets. Coins can be earned by reaching certain levels on app games; when buying apps via Amazon's App Store, and through in-app purchasing. Customers can also buy Coins themselves at up to a 10% discount. In a statement, the company said: “Expanding Amazon Coins across Android devices is the latest offering in an array of services that make Amazon the most complete end-to-end ecosystem for developers building, monetizing and marketing their apps and games."
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EBay acquires PhiSix, which lets users try on clothes virtually February 20, 2014 | Fierce Retail http://www.fierceretail.com/story/ebay-acquires-phisix-which-lets-users-try-clothesvirtually/2014-02-20 EBay (NASDAQ: EBAY) has purchased PhiSix Fashion Labs, a San Francisco-based computer graphics company that has developed technology enabling customers to try on clothes virtually. EBay is planning to integrate the technology across many of its properties, including the marketplace, mobile apps and third-party retailers that use eBay Enterprise. Terms of the deal were not disclosed. PhiSix can create what it describes as "physically accurate simulations" of clothes using photos, pattern files and other sources to assist in determining garment behavior. Users can enter their basic body measurements and the system will recommend a size and generate a 3-D model which allows consumers to see how clothes fit, look and move. EBay hopes that the virtual try-on features will reduce the hesitation that some purchasers face when deciding whether they should purchase an item without seeing it or trying it on. PhiSix was founded in 2012, by Jonathan Su, a former Intel research scientist with a background in special effects who also worked at DreamWorks. Su will join eBay Inc.'s Innovation and New Ventures team as part of the takeover, along with his team of three members.
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Strategy Are Target and Amazon feuding over P&G products? February 28, 2014 | Fierce Retail http://www.fierceretail.com/story/are-target-and-amazon-feuding-over-pg-products/2014-02-28 Procter & Gamble's partnership with Amazon (NASDAQ: AMZN) did not sit well with Target (NYSE:TGT), leading the retailer to change its in-store merchandising strategy for P&G products in retaliation. The problem began when P&G allowed Amazon to share space in its distribution centers in October, according to The Wall Street Journal. The deal was made so that both P&G and Amazon would trim expenses by direct shipping products like Pampers diapers from the company's facilities rather than shipping them to an Amazon warehouse and then to customers. The deal would also allow P&G to grow online sales. The partnership is said to have offended Target, which retaliated by placing P&G products in less prominent places in its stores, according to sources close to the matter. Target also reportedly began working with other suppliers to boost their sales figures rather than P&G's. P&G originally approached Target with a similar offer that was rebuffed. The dispute "has since de-escalated," the Journal reports, and Target has restocked shelf endcaps with P&G brands and products. P&G has also begun advertising big discounts on its products at Target over the last few weeks.
AMAZON to partner with major US retailers? February 24, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/87879 Amazon is reportedly in talks with about 10 well-known US retailers, including Abercrombie & Fitch and Neiman Marcus, regarding listing their products on its website, according to The Wall Street Journal. The initiative, which could launch as soon as this summer, would see Amazon providing listings linking shippers to the retailers’ own websites. Amazon would not sell the assortments directly, but would benefit by gaining access to extra customer data as well as offering a new incentive for its Prime shipping programme at a time it is planning to raise fees. Under one outlined scenario, Amazon could offer goods with free shipping to Prime customers, with the retailers being responsible for the arrangement of and payment for deliveries. Essentially, this would be an extension of Amazon’s existing Marketplace scheme which has, to date, chiefly attracted smaller retailers. The report also notes that Amazon has reportedly suggested to some retailers that they could eventually pay to use Amazon's warehouses and logistics network to distribute online orders to customers, via the Fulfillment by Amazon operation.
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DIXONS RETAIL, CARPHONE WAREHOUSE in merger talks February 24, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/87884 European consumer electronics specialist Dixons Retail and mobile phone retailer Carphone Warehouse have confirmed they are in talks to merge. "The boards of Dixons and Carphone Warehouse note the recent speculation and confirm that the two companies are in preliminary discussions regarding a possible merger of Dixons and Carphone Warehouse," the firms said in an official statement. The companies are still very much at a preliminary stage in discussions and as yet there is no certainty any transaction will result. The statement added that no decision has been reached regarding the structuring of any such merger. Given the companies’ European presence and product mixes, Planet Retail believes a merger would be mutually beneficial for both parties. The Dixons Retail partnership with Carphone Warehouse’s UK rival Phones 4u is coming to the end of its contract and striking a deal with Carphone Warehouse would mean the retailer could free its stores of Phones 4u inserts and replace them with Carphone Warehouse shop-in-shop instead. One possible fly in the ointment could be the Metro Group-controlled CE operation Media-Saturn. Carphone Warehouse on the continent is involved in several co-operative ventures with the business via its Phone House banner, most notably in the Netherlands, where it signed an exclusive long-term co-operation agreement as recently as December 2013.
AMAZON makes Indian ambitions plain February 19, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/87811 Within the next two years, Amazon in India intends to operate its own logistics network. According to the Economic Times, the online giant is seeking to take shipping of almost every product sold via its Indian marketplace into its own hands. Amazon announced the introduction of its Fulfillment by Amazon service to sellers in 2013. Opening its own DCs and taking full control of delivery processes seems a logical next step to increase Indian market share. Only a week ago, a partnership between Amazon’s Junglee marketplace with Quikr.com, one of India’s leading classifieds website, was launched. The partnership lets Junglee users compare prices on new products across hundreds of online shopping sites and also find locally available pre-owned products listed on Quikr.
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TOYS 'R' US shuts Nevada online DC February 17, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/87790 Having placed online at the heart of its rebuilding strategy, Toys ‘R’ Us is now to close its 300,000 square foot (27,900 square metres) e-commerce distribution centre near Reno, Nevada, only three years after it first opened. Local reports state the DC will cease operations as of March before the property is vacated in June. The decision is said to have come about as the children’s retailer has opted to fulfil online orders from stores instead. Closing the centre should enable Toys ‘R’ Us to reduce costs by leveraging its larger stores. It will also allow the retailer to fulfil more online orders in a wider number of locations, ostensibly at a lesser cost. However, Planet Retail can’t help but wonder if what we are actually seeing here is a business anxiously seeking cost reductions to compensate for persistently declining sales, as the retailer battles in a waning toys and junior entertainment market.
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