Sutherland insights retail news flash nov 15, 2013

RETAIL NEWS FLASH November 15, 2013

Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 7 Technology .......................................................................................................................... 18 Strategy .............................................................................................................................. 23

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Sales & Marketing BOOKS-A-MILLION debuts print-on-demand November 14, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86819?WTrss_f=Daily%20News%20Summary&WTrs s_a=BOOKS-A-MILLION%2Bdebuts%2Bprint-on-demand&WTrss_ev=a As a result of a partnership with OnDemand Books, Books-A-Million customers will be the first to be able to print books instore via the Espresso Book Machine (EBM), reports the Wall Street Journal.

The machine is initially to be launched in two of the company’s US stores this month.

Customers will have access to over seven million book titles as well as being able to publish their own work. The machine can produce paperback, colour books between 5”x5” and 8”x20”, and can print from 50 to 600 pages in minutes. Expert EBM staff will be on hand to help customers with their printing. If successful, the machines could give Books-A-Million a competitive edge as the concept combines digital with instore to suit current consumer demand.

Staples Rolls Out Holiday Promotions November 14, 2013 | Kantar Retail http://www.kantarretailiq.com/ContentIndex/PublicNewsDisplay.aspx?id=606137&key=v40JMby 8f31E720Tdl4Rgw%3d%3d Staples has rolled out its holiday 2013 sales promotions with stores opening at 8 pm on Thanksgiving day.

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The promotions will start from Black Friday and run through Cyber Monday in stores and online on staples.com.

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Value deals are available on book readers, laptops, chromebooks and mobile phones.

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Additionally, shoppers can also take benefit of several other promotion initiatives daily new deals on staples.com, trade-in/trade-up technology recycling programs, free shipping for Staples Rewards members and Staples Rewards for members receiving five per cent cash back on their purchases.

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Amazon to deliver Sundays November 11, 2013 | Retailing Today http://www.retailingtoday.com/article/amazon-deliver-sundays?ad=news Amazon.com is working with the U.S. Postal Service to deliver packages on Sunday, starting in the Los Angeles and New York metropolitan areas, and plans to roll out the service to a large portion of the U.S. population, including Dallas, Houston, New Orleans and Phoenix, in 2014.

Amazon Prime members, who receive unlimited, free two-day shipping, are eligible for the service.

“If you’re an Amazon Prime member, you can order a backpack for your child on Friday and be packing it for them Sunday night,” said Dave Clark, Amazon’s VP of worldwide operations and customer service. “We’re excited that now every day is an Amazon delivery day and we know our Prime members, who voraciously shop on Amazon, will love the additional convenience they will experience as part of this new service.”

“As online shopping continues to increase, the Postal Service is very happy to offer shippers like Amazon the option of having packages delivered on Sunday,” said Patrick R. Donahoe, Postmaster General and CEO. “With this new service, the Postal Service is now delivering packages seven days a week in select cities. Customers can expect the same reliable and valued service that the Postal Service currently provides.”

Target to open an hour earlier on Thanksgiving November 11, 2013 | Retailing Today http://www.retailingtoday.com/article/target-open-hour-earlier-thanksgiving?ad=news Target will open stores at 8 p.m. on Thanksgiving Day, an hour earlier than last year, and will keep them open until 11 p.m. Black Friday.

The company said it is making the change in response to competitive pressure and demand from shoppers.

Kathee Tesija, executive VP of merchandising at Target, told The Associated Press that she felt the 8 p.m. time was just right, based on the competitive landscape, and the sentiment among shoppers and its own store staff.

Target will also be offering hundreds of deals online on Thanksgiving morning that will include almost all deals that will be available in the store. In addition, the discounter said it will be feature 15 online-only daily discounts for two weeks beginning Sunday, Nov. 24.

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HMV in search of loyalty November 6, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86675?WTrss_f=Daily%20News%20Summary&WTrs s_a=HMV%2Bin%2Bsearch%2Bof%2Bloyalty&WTrss_ev=a HMV, the UK-based music and entertainment specialist, has relaunched its PureHMV loyalty programme. The scheme has been reintroduced by new owners Hilco Capital Group, who have vowed to honour points accrued by customers prior to the firm entering administration in January 2013.

PureHMV members will be able to redeem points in HMV stores and at HMV’s new online music store. They can also be used to purchase magazine subscriptions and are valid in other retailers, including Topshop and Topman. Customers have until 31 January 2014 to reactivate their account on the purehmv.com website and previous balances will be transferred over within 14 days.

Hilco also stated it will run special non-monetary rewards at certain times of the year, promising some “huge prizes” in 2014. PureHMV was originally launched by the HMV Group in 2008 and many of PureHMV’s one million active members were left with outstanding balances on their cards when the previous HMV Group collapsed.

MACY'S enriches content with Star Gifts app November 6, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86691?WTrss_f=Daily%20News%20Summary&WTrs s_a=MACY%2527S%2Benriches%2Bcontent%2Bwith%2BStar%2BGifts%2Bapp&WTrss_ev=a Macy’s has integrated NantMobile's iD visual recognition technology into its Macy's Star Gifts app.

The free app allows mobile shoppers to scan an item from a catalogue, magazine ad or other advertising and access product information, gift-giving assistance and other content. Shoppers can also shop directly from the app for the Macy's Star Gift items of the season, which the retailer unveiled in a November catalogue.

Macy’s Chief Marketing Officer Martine Reardon explained: "Visual recognition technology is the next evolution of our mobile strategy, leveraging Macy's omni-channel capabilities to be everywhere our customers are in order to enhance their shopping experiences on the go."

To access the content, shoppers aim their smartphone, with the app active, at any page in the catalogue featuring a Star Gift and then tap their screen to view product information. Through 17 November, shoppers can also scan the first page of the Star Gifts catalogue to receive a USD10 Macy's mobile gift code.

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Click & collect for Thanksgiving meals from KROGER November 6, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86690?WTrss_f=Daily%20News%20Summary&WTrs s_a=Click%2B%2526%2Bcollect%2Bfor%2BThanksgiving%2Bmeals%2Bfrom%2BKROGER&WTrss_e v=a Kroger is giving shoppers the option of pre-ordering Thanksgiving meals either online or via its mobile app. Fully prepared meals, including special gluten-free options, can then be picked up at a later date in a store specified by shoppers when ordering.

Orders can be placed and picked up with as little as a 24-hour turnaround. Holiday dinners are available for collection beginning 15 November. Most Kroger stores will be open on 28 November, Thanksgiving Day, for limited hours at least.

As an added incentive for shoppers to place their orders early, the grocer is offering a USD5 digital coupon on Thanksgiving meal orders placed by 13 November.

TARGET and THE BODY SHOP team on holiday gift collection November 6, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86689?WTrss_f=Daily%20News%20Summary&WTrs s_a=TARGET%2Band%2BTHE%2BBODY%2BSHOP%2Bteam%2Bon%2Bholiday%2Bgift%2Bcollection &WTrss_ev=a Target has partnered with beauty specialist The Body Shop to offer a selection of bath & body items for the holidays. The collection features 15 gifting items ranging in price from USD15-40. The products are exclusive to Target and available online only at Target.com. The limited-time offering follows the general merchandise retailer’s strategy of providing limited edition designer goods.

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Finance MACY’S Q3 bounce-back indicates happy holidays November 14, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86809?WTrss_f=Daily+News+Summary&WTrss_a=M ACY%25e2%2580%2599S%2bQ3%2bbounceback%2bindicates%2bhappy%2bholidays&WTrss_ev=a After missing analyst expectations for its second-quarter performance, Macy’s reported earnings per share increased 31% from a year ago to USD0.47 in the third quarter ended 2 November. The results marked the department store operator’s 15th consecutive quarter of improved earnings per share and were driven by a healthy increase in top-line sales.

Third-quarter sales totaled USD6.28 billion, up 3.3% from the same period a year ago. Comparable store sales - including sales from Macy’s, Bloomingdale’s, macys.com and bloomingdales.com increased 3.5% from 2012. Including sales from departments licensed to third parties, third-quarter 2013 comps were up 4.6%.

The company continues to attribute its performance to the ongoing execution of its My Macy’s localization strategy, multi-channel integration efforts and Magic Selling customer engagement training. Management also noted that customers were receptive to more aggressive marketing emphasizing the value proposition.

With the improved performance from Q2 shared across both the Macy’s and Bloomingdale’s banners, the company is well-positioned for the holiday season. To that end, Macy’s reiterated the guidance provided in August. Comparable store sales are expected to increase 2.5-4% in the second half of 2013 and 2%-2.9% for the full year. Earnings for fiscal 2013 are expected in the range of USD3.80-3.90 per diluted share.

Wal-Mart Comps Down 0.3% in U.S. November 14, 2013 | Supermarket News http://supermarketnews.com/retail-amp-financial/wal-mart-comps-down-03-us BENTONVILLE, Ark. — Wal-Mart Stores here on Thursday said U.S. comparable-store sales for the fiscal third quarter were down 0.3%, and it trimmed its profit outlook for the year.

Grocery comps were down 0.7% for the 13-week period, which ended Oct. 25.

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Bill Simon, president and chief executive officer, Walmart U.S., said in a recoded conference call that overall inflation was “muted,” despite slight increases in some categories, including dairy, meat and produce. He also said he was “pleased with the continued strength in produce and adult beverages, which delivered mid single-digit and high single-digit positive comps, respectively.”

He said the company’s aggressive mass-merchandising events, including Stock Up and Save, and October Savings, drove sales in categories including snacks, beverages, baby consumables and paper products.

“Throughout the fourth quarter we'll be focused on mass merchandising, featured items and special holiday promotions in grocery to help customers stretch their paychecks a little further,’ he said.

Wal-Mart said overall operating income for the quarter was up 3.6%, to $6.3 billion, and total sales rose 1.6%, to $114.9 billion. On a constant currency basis, sales would have been $116.2 billion.

The company lowered its earnings forecast for the year for a second time, to between $5.01 per share and $5.11 per share, vs. a previous forecast of $5.10 to $5.30. The new guidance includes the impact of approximately 10 cents per share for certain items which we previously disclosed, including store closures in Brazil and China and the termination of a retail franchise agreement in India. Accounting for these factors, the company's new guidance for fourth earnings will range between $5.11 and $5.21.

Mike Duke, Wal-Mart’s president and chief executive officer, said Wal-Mart is focused on driving top-line sales and gaining market share.

“Traffic continued to improve from the first half of the year, and we gained market share again in some of our most important categories,” he said.

The company saw comps grow 3.4% at its Neighborhood Market format, which Duke called “in line with best-in-class competitors,” noting that the company is on pace to expand that small format banner by “almost 50%” this year.

Nordstrom third quarter consistent with full-year outlook November 14, 2013 | Retailing Today http://www.retailingtoday.com/article/nordstrom-third-quarter-consistent-full-year-outlook Nordstrom’s third quarter results were consistent with its full-year outlook. Strong direct sales growth and improving trends in the Rack mitigated softer sales trends in full-line stores.

The company’s Anniversary Sale, which is historically its largest sale event of the year, fell in the second quarter this year, rather than in the second and third quarters as it did last year. The estimated impact of this event shift increased earnings per diluted share in the second quarter but reduced them in this quarter by approximately $0.06.

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Total third-quarter same-store sales increased 0.1% and net sales totaled $2.8 billion, a 2.9% increase compared with the same period in fiscal 2012.

Nordstrom same-store sales including the full-line and direct businesses decreased 0.7%, compared with last year’s same-store sales increase of 11.2%. Top-performing merchandise categories included cosmetics, women’s apparel, and women’s shoes. Momentum continued in women’s apparel, outperforming the Nordstrom average on a year-to-date basis.

Full-line same-store sales decreased 4.2% compared with last year’s same-store sales increase of 8.1%. The Southwest and Southern California regions were the top-performing geographic areas.

Direct net sales increased 23% in the third quarter, on top of last year’s increase of 38%, driven by expanded merchandise selection and ongoing technology investments to enhance the online experience.

Nordstrom Rack net sales increased $95 million, or 16%, compared with the same period in fiscal 2012, reflecting 20 store openings since the third quarter of fiscal 2012. Nordstrom Rack same-store sales increased 3.7% on top of last year’s same-store sales increase of 8.1%.

HauteLook net sales increased by 22% in the third quarter.

Nordstrom plans to open four new Rack stores and relocate one Rack store during the remainder of fiscal 2013.

Dillard’s sees moderate net income, sales growth in Q3 November 14, 2013 | Retailing Today http://www.retailingtoday.com/article/dillard%E2%80%99s-sees-moderate-net-income-salesgrowth-q3?ad=news Dillard’s reported moderate growth in net income and sales during the third quarter of fiscal 2013.

Compared to the same period a year earlier, net income increased 5% to $50.9 million from $48.5 million, while net sales climbed about 1% to $1.51 billion from $1.49 billion.

According to Dillard’s, sales trends were notably strong in ladies’ accessories and lingerie followed by shoes and ladies’ apparel, while sales were weakest in the home and furniture category. Sales trends were strongest in the central region, followed by the eastern and western regions, respectively.

During third quarter 2013, the company closed its Euclid Square Mall clearance location in Euclid, Ohio. Dillard’s also announced the upcoming closure of its University Mall location in Chapel Hill, N.C., and its Collin Creek location in Plano, Texas. Both locations are expected to close by the end of the fourth quarter.

As of Nov. 2, the company operated 282 Dillard’s locations and 17 clearance centers spanning 29 states and an Internet store.

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KOHL’S lowers FY13 guidance on weak Q3, announces FY14 initiatives November 14, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86859?WTrss_f=Daily%20News%20Summary&WTrs s_a=KOHL%25e2%2580%2599S%2Blowers%2BFY13%2Bguidance%2Bon%2Bweak%2BQ3%252c%2 Bannounces%2BFY14%2Binitiatives&WTrss_ev=a A day after its more upmarket competitor Macy’s better-than-expected third-quarter results lifted hopes for a healthy holiday season, Kohl’s quickly tempered that enthusiasm, with a lackluster performance for the quarter ended 2 November and an even dimmer view of the fourth quarter.

The promotional department store operator announced that sales dipped 1% from a year ago to USD4.4 billion. On a comparable store basis, sales were down 1.6%. A 64 basis point decline in gross margin combined with higher operating and interest expenses weighed on net income, which tumbled 18% to USD177 million.

And despite what CEO Kevin Mansell called a strong October, Kohl’s now is forecasting a total sales decline of 2 - 4% and comp decline of 0 - 2% for the fourth quarter. The retailer also lowered its earnings guidance for the full fiscal year, from a per-share range of USD4.15 - 4.35 to a range of USD4.08 - 4.23.

Separate from its earnings report, Kohl’s announced two new merchandise launches slated for fall 2014. It is partnering with Authentic Brands Group to introduce Juicy Couture as a Kohl’s exclusive in women’s and girls apparel, fashion accessories and home collections. The retailer also will roll out PVH’s IZOD brand in men’s sportswear and dress clothing. The introduction of IZOD aligns with Kohl's broader initiative to better balance the mix of national and exclusive/private brands in its assortment. The Juicy Couture launch may help the retailer gain traction in the teen department, where Kohl's has had significant difficulties, though Planet Retail questions whether the brand has enough residual equity to make a meaningful difference in an increasingly crowded assortment.

Ahold U.S. Announces Q3 2013 Results November 14, 2013 | Kantar Retail http://www.kantarretailiq.com/ContentIndex/PublicNewsDisplay.aspx?id=606138&key=yQl9dw8i ZVgLHIU%2fzwx80A%3d%3d Ahold US released its Q3 2013 results. The retailer reported that despite experiencing limited sales growth, the retailer gained market share in a very competitive market.

Q3 Highlights: •

Net sales increased 0.2% to USD5.9 billion.

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Non-fuel identical sales (IDs) growth was 0.6% (0.1% including fuel).

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Comparable store sales (comps) were 0.2%.

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Operating margin was 4.0% versus 4.1% last year.

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During Q3, Ahold US closed 6 stores and three gas stations in New Hampshire. It also opened 46 new pick-up points, bringing the total to 89

YTD Highlights: •

Sales were up 2.0% to USD20.1 billion.

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Non-fuel IDs increased 1.0% (0.9% including fuel).

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Comps were 1.0%.

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Operating margin was 4.1% compared to 4.2% the same time last year.

During the quarter, Ahold US opened/acquired 6 stores and closed/sold nine stores. The retailer currently operates 769 stores under the Stop & Shop, Giant-MD, Giant-PA, and Martin’s banners.

UK: Sainsbury’s report a positive year despite difficult retail climate November 13, 2013 | Fresh Plaza http://www.freshplaza.com/article/115145/UK-Sainsburys-report-a-positive-year-despitedifficult-retail-climate#SlideFrame_1 Sainbury's has reported their interim results for the 28 weeks leading up to the 28th of September 2013. Total sales were up by 4.4% to £13,953 million which is up from the £13,365 million from 2012/2013. Their like for like sales is also up by 1.4%.

Justin King, Chief Executive said in a statement on the website: “Our share of the grocery market is the highest for a decade at 16.8% following 35 consecutive quarters of like-for-like sales growth.

Whilst customers' budgets remain tight and any recovery in the economy may take time to take effect, our consistent strategy and strong values-driven culture mean we are well placed to continue to deliver for customers, colleagues and shareholders.”

Sainsbury's has also been rewarded for their achievements this year. They received awards for customer service levels by winning 15 out of the 28 grocer awards, along with 33 for Service and Availability. This is to add to their 6th (during the span of eight years) Supermarket of the Year award, 4th consecutive win as Convenience Chain of the Year, Grocer Gold Awards, National Business Awards and FTSE 100 Business of the Year.

One of Sainsbury's strategies for this year has been to focus on their in-house brand, which has been growing at over twice the rate of branded goods. They have relaunched their 'Taste the Difference' line which has shown double-digit growth.

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They have also been in line with other grocery retailers in shifting focus to online sales. Online grocery sales have been growing at 15%, with over ÂŁ1 billion in annualised sales and orders regularly exceeding 180,000 a week. In response, plans have been announced for an online fulfilment centre at Bromley-by Bow.

Analysts Upbeat on Whole Foods Prospects November 7, 2013 | Supermarket News http://supermarketnews.com/retail-amp-financial/analysts-upbeat-whole-foods-prospects NEW YORK — Wall Street analysts were generally upbeat Thursday about long-term prospects for Whole Foods Market, despite a negative reaction by some investors to the chain's fourth-quarter financial results and its lowered financial guidance for fiscal 2014.

As reported late Wednesday, net income for the 12-week fourth quarter rose 7.1% to $121 million, while sales increased 2.2% to $3 billion and comps jumped 5.9% —reflecting earnings and comps that were below consensus expectations.

Karen Short, research analyst with Deutsche Bank, said she does not see Whole Foods "as a broken growth story [because of] a long runway for growth, above-average comps [and] steady margin expansion. Despite a disappointing quarter, we continue to see demand growing for healthier food and believe Whole Foods is uniquely positioned to capture share in this market over time."

Charles Grom, an analyst with Sterne Agee, said he believes the pullback in the stock will be shortlived. "Whole Foods took a page out of the Costco/Kroger playbook and proactively invested in price on known-value items to reinforce the value message on which it has been intently focused since 2009. Such moves are typically met with future traffic gains and are therefore 100% the right strategy for Whole Foods to undertake."

John Heinbockel, managing director for Guggenheim Securities, said he views the slowdown in Whole Foods results as more temporal than secular, "although we do acknowledge the growth limitations in older stores, [so] it is possible that simple maturity will cause a moderation in growth but only of a modest magnitude. Whole Foods indicated that strategic price investments were made late in the third quarter to close the gap with certain competitors and that this investment was funded by lower shrink and better purchasing."

Kelly Bania, an analyst with BMO Capital Markets, said that, despite lower comps, "the natural and organic industry backdrop remains solid; new store returns [at Whole Foods] remain strong, with an increase in baskets of $50 or more; older stores' comps remain solid at 4.3%; execution of prepared foods remains a key advantage; and comps still remain more consistent than industry peers."

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JCPENNEY posts first monthly comp gain in almost two years November 7, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86717?WTrss_f=Daily%20News%20Summary&WTrs s_a=JCPENNEY%2Bposts%2Bfirst%2Bmonthly%2Bcomp%2Bgain%2Bin%2Balmost%2Btwo%2Byear s&WTrss_ev=a JCPenney eked out a comparable sales gain of 0.9% in October, up 490 basis points from September and the first increase since December 2011. The department store retailer also has gained traction in the online channel, with October sales on jcp.com increasing 37.6% from a year ago.

JCPenney attributed the improved performance across both instore and online channels to the dismantling of many of the initiatives instigated by former CEO Ron Johnson. In particular, the retailer cited the return of several popular private brands to the assortment as well as significant sales increases in national brands such as Levi’s, Nike and Carter’s.

JCPenney also is making progress remerchandising and reconfiguring the home department, one of the worst performing divisions. The changes are geared to better reflect how customers shop the department and to highlight the most compelling brands and price points. The home division generated the largest percentage sales increase within the company in October, while sales of home goods online surged 50% from a year ago.

Still, the retailer has a lot of work ahead. Store traffic remains below last year’s levels, and gross margins continue to be pressured by lingering inventory from the first two quarters of fiscal 2013 and JCPenney’s transition back to promotional pricing.

CVS looks ‘solid’ in third quarter November 5, 2013 | Retailing Today http://www.retailingtoday.com/article/cvs-looks-%E2%80%98solid%E2%80%99-thirdquarter?ad=news CVS, which posted a solid third quarter across its enterprise, is well-positioned to benefit from the rapidly changing healthcare environment. That was a key message that CVS president and CEO Larry Merlo had for analysts during the company’s third-quarter conference call.

“The healthcare environment is changing rapidly, and there are certainly a number of moving parts from the Patient Protection and Affordable Care Act to the private exchanges. Collectively, we expect changes within this environment to be a net positive for our business in 2014,” Merlo told analysts.

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To drive growth and take advantage of the evolving landscape, the pharmacy retailer will participate in coverage expansion in the public exchanges, and also will participate in the private exchange market for both active employees and retirees.

He noted that, as the No. 1 PBM player in the managed Medicaid space, the company also is wellpositioned to gain share through Medicaid expansion.

What will this mean for PBM margins? Merlo acknowledged that while it does expect to see some churn in PBM lives and perhaps some margin compression, it expects this to be mitigated by such cost-management tools as narrow networks, its Maintenance Choice offering, etc. The bottom line: The company does not expect a material impact on PBM margins in the “foreseeable future.”

“In addition to tighter pharmacy management tools, we also expect share gains from both market expansion and market churn as an additional lever to help offset PBM margin compression,” Merlo added.

Another boon for CVS Caremark is that its opportunities as it relates to healthcare reform extend beyond just its PBM business.

“Leveraging our retail footprint, we can support health plan marketing initiatives ranging from limited pilot marketing programs to full-scale educational programs. In fact, over the next six months we expect health plans to host more than 6,000 marketing events in more than 1,000 of our stores across 20 states.”

Strong results drive revised 2013 guidance For the quarter ended Sept. 30, net revenues rose 5.8% to $32 billion compared with the year-ago period.

Net income totaled $1.25 billion, or $1.02 per share, compared with $1 billion, or 79 cents per share, in the year-ago period. Excluding a gain from a legal settlement, adjusted earnings per share rose 23.9% to $1.05.

Revenues in its pharmacy services segment rose 7.8% to $19.5 billion in the quarter. The 2014 selling season proved “strong” for its PBM business as it has completed 75% of renewals to date and has a 96% retention rate, Merlo told analysts. Net new business totaled about $1.8 billion.

Within specialty pharmacy, revenues rose about 22% year over year. Driving the growth: drug price inflation, utilization, new product launches and new PBM clients.

It is interesting to note that, to further differentiate its offerings, the company is leveraging its brickand-mortar stores to pilot a specialty pharmacy delivery offering.

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“What we’ve been able to do is take all of our specialty capabilities and connect to our retail stores.

So, now members that want to get access to specialty medications can go in any one of our 7,400 stores as we roll this program out next year,” Jon Roberts, EVP and president of CVS Caremark Pharmacy Services, told analysts during the call. “We will leverage all of the back-end clinical capabilities, the billing capabilities, the fulfillment capabilities and then we will be able to deliver that prescription either to the member’s home — like what happens today with specialty pharmacy — or deliver it to their local CVS/pharmacy. Similar to Maintenance Choice, half of the people want to pick up their specialty prescription in their CVS local store and the other half want it mailed to their home.”

Meanwhile, the retail business posted a revenue increase of 5% to $16.3 billion. Same-store sales rose 3.6%. Pharmacy same-store sales increased 5.7%, while front-end same-store sales slipped 1% due to softer foot traffic. The company noted that, despite slower foot traffic, both front-store basket size and front-store margin improved “modestly” during the quarter.

Given the company’s strong operating results to date and its outlook for the remainder of the year, the company has raised and narrowed its earnings guidance for 2013. It now expects adjusted earnings per share to be between $3.94 and $3.97 in 2013. This compares with its prior guidance of $3.90 to $3.96 per share.

“We are pleased with our strong third-quarter results and optimistic about the outlook for this year and next. We see the evolving healthcare environment as an opportunity for growth, and we believe we are very well-positioned to gain market share across the enterprise,” Merlo said.

Office superstores make it official November 5, 2013| Retailing Today http://www.retailingtoday.com/article/office-superstores-make-it-official?ad=news Office Depot and OfficeMax announced the completion of their merger late Tuesday and from the looks of third quarter results released the same day the deal should prove beneficial to both companies.

Office Depot said its third quarter same store sales declined 2%, while OfficeMax said its comps dropped 2.8% in the U.S. and 2.2% in Mexico.

The combined company will use the name Office Depot, Inc. and will trade on the New York Stock Exchange under the symbol ODP. The new Office Depot, which would have had combined revenue for the 12 months ended Sept. 28, of approximately $17 billion, now employs about 66,000 people worldwide. The company serves consumers and businesses in 59 countries with more than 2,200 retail stores, e-commerce sites, and a dedicated business-to-business sales. The company’s portfolio of brands includes Office Depot, OfficeMax, OfficeMax Grand & Toy, Viking, Ativa, TUL, Foray and DiVOGA.

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Customers can interact with each brand as they always have, including shopping at Office Depot and OfficeMax stores and online at www.officedepot.com and www.officemax.com. Each company will maintain its respective loyalty programs and expects to announce a combined loyalty program sometime in 2014.

According to the CEO selection committee, the uncertainty surrounding the timing and any potential conditions of the Federal Trade Commission approval made it challenging for the search to be finalized in time to coincide with the closing of the merger. The committee said it is hopeful of completing the process in the near future, now that unconditional FTC clearance has been obtained.

In the interim, as stated in the merger agreement, Neil Austrian, chairman and CEO of Office Depot, and Ravi Saligram, president and CEO of OfficeMax, will serve together as co-CEOs, executing the integration plans they and their teams have built to combine the two businesses.

The company will continue to operate in both Boca Raton, Fla., and Naperville, Ill., until the new CEO is on board and a decision on a headquarters location is finalized.

Office Depot also announced the members of its new board of directors. Aside from Saligram and Austrian, the 12-person board includes five independent directors from each of the Office Depot and OfficeMax boards. Additional directors are Warren Bryant, Rakesh Gangwal, Cynthia Jamison, Jim Marino, Michael Massey, Francesca Ruiz de Luzuriaga, Jeff Smith, David Szymanski, Nigel Travis and Joseph Vassalluzzo. Travis and Gangwal will serve as co-chairmen/co-lead directors.

Departing the Office Depot board are Kathleen Mason, who joined in 2006; Justin Bateman and Raymond Svider, who were appointed in 2009; Tom Colligan, who served since 2010; and Eugene Fife, who was elected in 2012.

“Each of these board members was instrumental in guiding the company through a period of difficult economic conditions as well as executing two of the company’s largest value creation opportunities — the sale of our stake in the Mexican joint venture and our historic merger with OfficeMax. On behalf of the company, I thank each of them for their leadership and wish them much success in their future endeavors,” said Austrian.

Publix Q4 Sales Up, Net Earnings Down November 1, 2013 | Progressive Grocer http://www.progressivegrocer.com/top-stories/headlines/regional-supermarketchains/id40328/publix-q4-sales-up-net-earnings-down/ Publix Super Markets Inc. has reported sales for the third quarter of 2013 of $7 billion, a 5.6 percent increase from last year’s $6.7 billion. Comparable-store sales for the third quarter of 2013 rose 4.1 percent.

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Net earnings for the third quarter of 2013 were $359.9 million, versus $368.4 million in the year-ago period, a decline of 2.3 percent. Earnings per share for the third quarter fell to 46 cents for 2013, from 47 cents per share last year.

The Southeast regional grocer’s sales for the first nine months of 2013 were $21.6 billion, a 5.2 percent rise from last year’s $20.5 billion. Comps for the first nine months of 2013 were up 3.4 percent.

Net earnings for the first nine months of 2013 were $1.23 billion, compared to $1.16 billion in 2012, an increase of 6.3 percent. Earnings per share rose to $1.58 for the first nine months of 2013, from $1.48 per share in 2012.

These amounts are based on unaudited reports to be filed next week with the U.S. Securities and Exchange Commission (SEC). The company’s quarterly report to the SEC will be available Nov. 7 on its website.

As of Nov. 1, Publix’ stock price increased from $27.55 per share to $30 per share. Publix stock isn’t publicly traded and is made available for sale only to current Publix associates and members of its board of directors.

“I’m very pleased we had another significant increase in our stock price, resulting in a 33 percent increase in our stock price over the last year,” said Ed Crenshaw, CEO of Lakeland, Fla.-based Publix.

“Our associates continue to deliver premier customer service, the key to our success.”

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Technology H&M readies hi-tech NY flagship November 13, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86802?WTrss_f=Daily%20News%20Summary&WTrs s_a=H%2526M%2Breadies%2Bhi-tech%2BNY%2Bflagship&WTrss_ev=a The new H&M New York flagship store, on 4,000 square metres (43,000 square feet) of sales space, will use instore tech to encourage footfall. Shoppers will be encouraged to experiment with new retail technologies including interactive gateways where you can see clothes on your body before trying them on. The store also incorporates an interior design with glitter walls sculpted in three dimensions and a total of 2,000 square metres (21,500 square feet) of giant screens. The store is open from nine in the morning until one in the morning.

The US is considered an important market for H&M and the company will also be opening its first COS outlet in SoHo New York in the Spring of next year. The company is also preparing for the opening of its largest H&M in the world in Herald Square, as first reported on 29 August.

TESCO considering e-receipts November 12, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86771?WTrss_f=Daily%20News%20Summary&WTrss_a =TESCO%2Bconsidering%2Be-receipts&WTrss_ev=a Tesco is looking at replacing traditional paper receipts with electronic versions e-mailed to shoppers.

According to the Daily Mirror, the retailer is in talks with technology firm eReceipts. Any launch of the solution is expected early next year.

The technology is designed to offer shoppers more convenience. More importantly, it could also monitor shopping habits and alert shoppers to items they may have forgotten. Chairman of eReceipts, former Tesco chief Lord Ian MacLaurin, said the company were in talks with five major UK supermarket chains.

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Toys 'R' Us gets digital makeover for Christmas November 12, 2013 | Retailing Today http://www.retailingtoday.com/article/toys-r-us-gets-digital-makeover-christmas?ad=news Shareable content, enhanced product images, live chat and improved search capabilities are among the key changes introduced Tuesday morning to the Toysrus.com and Babiesrus.com websites.

The site are said to have a fresh design and layout, revamped navigation and new features to help everyone from deal seekers to last-minute shoppers easily discover savings and information about the company's offerings. In addition, the sites have introduced social shopping functionality which allows customers to organize their most-wanted items in shareable toy and baby boards, while also viewing the most popular and trending products on the sites.

"Our e-commerce websites receive more than 450 million visits annually, and we are proud to introduce a new look and enhanced functionalities to improve the shopping experience for our customers," said Fred Argir, SVP and chief digital officer at Toys “R” Us, Inc. "Toysrus.com and Babiesrus.com are the go-to destinations for a broad assortment of toys and juvenile products, and we have implemented helpful, interactive features, such as a new social shopping component that provides customers with insight into the most popular and trending products, plus improved navigation capabilities, that will make it easier to find the right gift for a child or expectant parent."

The social shopping upgrade allows customers to organize their most-wanted items in toy and baby "boards," which can then be shared with family and friends via Twitter, Facebook and Pinterest.

Users can also invite their friends to create boards. For example, a mom looking for inspiration for her daughter's first birthday party can pull together different items across all categories into one, convenient and shareable collection, and get ideas from what others are planning for their child’s special event, according to the company.

Other key changes involve improved navigation, a familiar claim made by companies who redesign their sites. In the case of Toys “R” Us, the main difference visitors will notice is a cleaner design and layout, with a larger space for current featured products and promotions. The site also features the ability to move seamlessly between Toysrus.com and Babiesrus.com with the brands presented in tabs at the top left of the page. New "Shop By" navigation gives each subcategory its own merchandising space to simplify the process of narrowing down from thousands of choices.

Individual product detail pages also have been given a new look with bigger and brighter images of products. Each page also features customer-supplied images and videos, special offers for the item and customer reviews. In addition, order fulfillment options are more visible to quickly indicate if the item is available to be shipped to the customer's home, or if it's available for free in-store pickup within an hour or free shipping to the store within five to seven days.

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Customer service has been enhanced as well with live chat functionality, increasing common on all manner of Web site, now available at Toysrus.com and Babiesrus.com. Other new elements of the site include an information center where details about services reside, a saving center which is home to the retailer’s deal offering and a revamped gift finder tool.

HP Launches Mobile POS to Enhance In-store Experience November 12, 2013 | Progressive Grocer http://www.progressivegrocer.com/top-stories/headlines/in-store-systems/id40407/hplaunches-mobile-pos-to-enhance-in-store-experience/ HP has launched its HP MX10 Retail Solution to help retailers transition between a mobile and fixed point-of sale-solution, giving them the flexibility to better meet customer needs.

Designed for retail and hospitality, the HP MX10 combines the HP ElitePad Mobile POS Solution (MPOS) and the HP Retail Expansion Dock into one integrated solution. This gives employees the advantage of being mobile, allowing them to better serve customers anywhere in the store while also giving them access to a complete POS solution that includes receipt printing and access to a cash drawer.

“Consumers are drawn to businesses that consistently meet their needs and expectations in satisfying ways,” said Ray Carlin, VP and general manager, Retail Solutions Business Unit, HP. “With the HP MX10, retailers gain the advantage of a three-in-one solution that allows them to assist customers on the sales floor while still having access to a full POS solution.”

The HP MX10 enables retailers to enhance customer engagement and improve in-store operations with key features including: Seamless integration to existing infrastructure. The HP MX10 is a Windows-based solution that integrates into a store’s existing IT infrastructure to enable access to inventory and customer relationship management (CRM) systems.

Connection to key POS peripherals. The HP MX10 provides retailers with connectivity via serial, USB and RJ-45 ports, allowing them to use the store’s existing POS peripherals.

Maximum user comfort and adjustability. With the dual hinge arm, the HP MX10 supports adjustable tilt and height, providing maximum comfort for sales associates at the register or on the shop floor.

More sales opportunities with compact design. The HP MX10 features a slim design that allows retailers to free up valuable floor and counter space so they can promote more products.

Dock, lock and walk away. With secured latching, a cable lock and counter security options, retailers can protect their mobile solution and the dock from theft.

The HP MX10 is planned to be available worldwide in December.

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JOHN LEWIS awards automation contract for Magna Park II November 11, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86739?WTrss_f=Daily%20News%20Summary&WTrs s_a=JOHN%2BLEWIS%2Bawards%2Bautomation%2Bcontract%2Bfor%2BMagna%2BPark%2BII&W Trss_ev=a Knapp Group subsidiary Dürkopp Fördertechnik is to implement a fully automated warehouse system for John Lewis’ second Magna Park distribution centre. The 675,000 square foot (62,710 square metre) DC is being constructed to store hanging goods.

Terry Murphy, Director of National Distribution Centre Operations at John Lewis told the Consumer Goods Forum that this would leverage efficiencies within the company’s supply chain. “Currently 40% of orders with hanging clothes also have an order from Magna Park,” he explained, “and shoppers expect to receive all items of an order consolidated into one delivery.” The new site will be constructed by March 2014 and fully live by mid-2015.

Murphy said that future considerations for John Lewis’ supply chain include more locations, reverse logistics and customer returns, later cut-off times and earlier collection times, in order to respond to customer needs.

IKEA strikes POS deal with Wincor Nixdorf November 7, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86697?WTrss_f=Daily%20News%20Summary&WTrs s_a=IKEA%2Bstrikes%2BPOS%2Bdeal%2Bwith%2BWincor%2BNixdorf&WTrss_ev=a IKEA Group, the main IKEA brand franchisee that owns nearly 300 IKEA stores in 25 countries, has signed a new six-year contract with Wincor Nixdorf. The deal is for the provision of point of sale infrastructure, as well as software and system operations. Over the next two years, the IT solutions provider will install 12,000 POS systems across the retailer’s stores worldwide.

The deal includes the operation and further development of Wincor Nixdorf's POS software TP.net, which controls all checkout transactions in each IKEA store and consolidates all data across the retail group. Another component of the agreement is to provide services that ensure operation of all POS solutions.

"For IKEA, having a complete solution provided by a single source, Wincor Nixdorf, means not only less coordination in equipping our stores worldwide, but also significantly lower roll-out and operational costs," said Paolo Cinelli, CIO of IKEA Group.

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Happy Meals could go 3D at MCDONALD’S November 7, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86707?WTrss_f=Daily%20News%20Summary&WTrs s_a=Happy%2BMeals%2Bcould%2Bgo%2B3D%2Bat%2BMCDONALD%25e2%2580%2599S&WTrss_ ev=a Happy Meal toys in McDonald’s UK outlets may be produced on 3D printers, The Register reports.

The burger chain’s UK IT Director Mark Fabes says that 3D printing would allow for instant production of toys in restaurants, allowing kids to select a Happy Meal toy of their choice and removing the need for regular replenishment of such items.

3D toy printing is presently only at a hypothetical stage and the burger chain is yet to pilot the idea.

McDonald’s would have to ensure that the printers, which use plastic, were appropriate devices for a restaurant setting.

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Strategy CARPHONE WAREHOUSE looks to more European tie-ups November 14, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86823?WTrss_f=Daily%20News%20Summary&WTrs s_a=CARPHONE%2BWAREHOUSE%2Blooks%2Bto%2Bmore%2BEuropean%2Btie-ups&WTrss_ev=a Despite subdued marketplace activity ahead of the wider European 4G launch, Carphone Warehouse (CPW) saw an impressive like-for-like sales increase of 8.3% for the half-year period to 28 September. This is the first result the mobile communications specialist has posted since ending its five-year partnership with Best Buy earlier this year and results are proving good. Profit before tax grew from GBP4 million (USD6.3 million) during H1 2012 to GBP19 million (USD30.1 million) this year.

The retailer’s European Partnerships appear to be gaining traction. In the Netherlands, CPW currently trades within 17 Makro stores and three Media-Markt Saturn (MMS) outlets, with plans to roll out the majority of store-in-store formats with MMS by the end of September 2014. Discussions are continuing with MMS and potential partners across other markets, which could lead to further lucrative deals for the retailer.

BIM and SOK take positions in shoe retailer November 14, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86817?WTrss_f=Daily%20News%20Summary&WTrs s_a=BIM%2Band%2BSOK%2Btake%2Bpositions%2Bin%2Bshoe%2Bretailer&WTrss_ev=a Turkish discount retailer BIM and Gozde Girisim have each bought 11.5% of three Ziylan group companies for TRL105 million (USD52 million). BIM previously announced their interest in the company as being merely a financial investment. Gozde Girisim is the financial arm of Yildiz Holding, parent company of discount retailer SOK. The involvement of two successful discount retailers in Ziylan Group is a stamp of approval for the company’s current success in footwear retail. With estimated consolidated revenue of TRL1 billion (USD0.5 billion) in 2013, the largest transaction so far by Ziylan Group was the purchase of Lumberjack in 2012. The group announced an ambitious expansion plan to increase its 295 stores to 450 as of 2015.

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India high on MARKS & SPENCER agenda November 12, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86767?WTrss_f=Daily%20News%20Summary&WTrs s_a=India%2Bhigh%2Bon%2BMARKS%2B%2526%2BSPENCER%2Bagenda&WTrss_ev=a Walmart recently split from its partner in India, putting any expansion on hold indefinitely. Tesco is reportedly just starting out on its Indian journey. Marks & Spencer, on the other hand, is much further down the line than both and is looking to strike while the iron is hot. It plans to more than double its Indian store count to 80 by 2016. The announcement coincided with the opening of the largest M&S store in India to date, a 35,000 square feet (3,250 square metres) outlet in Bandra, Mumbai.

India is set to overtake Turkey as M&S' largest international market. In accordance with Indian legislation, the stores are operated by local business Reliance Retail, so are not directly owned and managed by M&S itself. While the relationship is clearly working well and the Indian business is evidently high growth, we view M&S' internationalisation strategy is a distraction to more pressing issues, namely addressing falling like-for-likes at the domestic GM business.

AUCHAN announces private label electronics November 6, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86677?WTrss_f=Daily%20News%20Summary&WTrs s_a=AUCHAN%2Bannounces%2Bprivate%2Blabel%2Belectronics&WTrss_ev=a Qilive is to be Auchan’s new standard private label consumer electronics line. It will make its debut on 15 November. The range is to include products such as tablet PCs and headphones, among others, and is to be rolled out across all the French retailer’s markets.

The decision seems to be in line with a general trend toward developing non-food private labels, which tend to be handicapped by a perceived technological gap image against A brands in their category. For example, Carrefour introduced a private label e-reader few weeks ago.

Sobeys Completes Safeway Acquisition November 5, 2013 | Supermarket News http://supermarketnews.com/retail-amp-financial/sobeys-completes-safeway-acquisition STELLARTON, Nova Scotia — Sobeys here on Monday said it had completed its $5.8 billion purchase of Safeway Canada.

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"This is a great day in the 106-year history of Sobeys," Paul D. Sobey, president and chief executive officer of Sobeys parent Empire Co., said in a statement. “The addition of Canada Safeway represents a unique and highly strategic opportunity to leverage Sobeys' modern asset base and provides us with a new and exciting platform for growth as we move forward."

Safeway, Pleasanton, Calif., said it would realize around $4 billion after taxes and expenses as a result of the deal. The company Monday said those funds, as well as $400 million to $450 million in U.S. tax benefits related to the exit of the Chicago market, will be used to pay down $2 billion of debt, with the majority of the remainder to be used to buy back stock.

GAP adds Australia & New Zealand franchisee November 4, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86631?WTrss_f=Daily%20News%20Summary&WTrs s_a=GAP%2Badds%2BAustralia%2B%2526%2BNew%2BZealand%2Bfranchisee&WTrss_ev=a Gap has entered into a franchise agreement with OrotonGroup for its namesake brand in Australia and New Zealand. The US-based apparel specialist first entered Australia in 2010 via a franchise agreement with Brand Republic, a subsidiary of Busby Holdings Australia. As 1 November 2013, three Gap stores were in operation.

The initial term of the new agreement is 10 years, but an option exists to renew for an additional 10 years. After five years, OrotonGroup and Gap may also choose to enter into a 50:50 joint venture agreement for fair market value. In addition, Gap has a purchase option for 100% of the franchised business it may exercise any time after five years, based on fair market value.

Under the agreement, OrotonGroup can operate standalone outlets, department store shop-inshops and clearance outlets. It also can launch a local e-commerce site. According to initial plans, OrotonGroup expects to open as many as 20 Gap stores within 10 years.

Separately, the new agreement gives OrotonGroup first rights to develop the Banana Republic and Old Navy banners, the latter being contingent upon Gap's decision to franchise the brand in the two countries.

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