RETAIL NEWS FLASH April 16, 2014
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 6 Technology .......................................................................................................................... 10 Strategy .............................................................................................................................. 13
2|Sutherland Insights Retail News Flash Apr 16, 2014
Sales & Marketing AMAZON talks delivery drones again April 11, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88452 In a letter to shareholders published via the US Securities & Exchange Commission, Jeff Bezos, Amazon CEO, revealed that the Amazon Prime Air team has recently started designing an eighthgeneration delivery drone. The announcement doesn’t give much detail, but Bezos said in December that 86% of Amazon's packages are less than 5 pounds, and that the drones could carry them up to 10 miles from an Amazon fulfilment centre. The tech giant has warned that it will take “some number of years” to advance the technology enough and acquire the necessary FAA approvals before they can be put into commercial use. On a separate note, the online retail giant said it plans to roll out Sunday deliveries to a larger proportion of the US population throughout 2014. Amazon started offering Sunday delivery, through a partnership with the US Postal Service, to some cities (including NYC) in 2013.
Teething troubles for NEWEGG overseas offer April 10, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88424 A few months ago US online CE specialist Newegg announced it would be taking its first steps into the UK market. This week that move has finally been made. Newegg’s pilot programme has begun in the UK, as well as Australia. "We're extending the Newegg customer experience beyond North America, selectively addressing English-speaking countries overseas to begin that process," said Soren Mills, Chief Marketing Officer for Newegg North America. "This is an important step forward for our company and we’re taking a very deliberate approach to our international growth.” Instead of .co.uk and .com.au dedicated Newegg sites, as most would expect, shoppers are able to select ‘UK’ or ‘Australia’ from a drop-down menu on its US site to access product available for shipping internationally. Planet Retail checked out the site today. Unfortunately, the eight or so items we selected across a range of categories were all unavailable. Clearly there are still some teething problems to be sorted out before Newegg can realistically compete against the already-established competition in these markets.
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Affordable organics at WALMART April 10, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88437 Walmart has announced a tie-up with Wild Oats to stock the latter’s organic food items in its stores. The partnership will focus on nearly 100 products and Walmart is pledging to remove the price premium traditionally associated with organic groceries. Internal research has found that 91% of Walmart shoppers would consider purchasing products from an affordable organic brand at the retailer. “We know our customers are interested in purchasing organic products and, traditionally, those customers have had to pay more,” said Jack Sinclair, Executive Vice President of Grocery at Walmart US. “We are changing that and creating a new price position for organic groceries that increases access. This is part of our ongoing effort to use our scale to deliver quality, affordable groceries to our customers.”
Target unveils line of sustainable products April 09, 2014 | Retailing Today http://www.retailingtoday.com/article/target-unveils-line-sustainable-products?ad=target-newsnow Target is expanding its sustainable products offering with a new collection called “Made to Matter — Handpicked by Target.” Spanning Target’s baby, beauty and personal care, grocery, healthcare and household product categories, Made to Matter brands include Annie’s Homegrown, Burt’s Bees, Chobani, Clif Bar & Company, Ella’s Kitchen, EVOL, Horizon Organic, Hyland’s, Kashi, Method, Plum Organics, Seventh Generation, SheaMoisture, Target’s Simply Balanced, Vita Coco, Yes To and Zarbee’s Naturals. The Made to Matter collection includes all products currently offered at Target by the participating brands and at least one new exclusive item from each brand. “Our guests are looking for products they can feel good bringing home without sacrificing price and performance,” said Kathee Tesija, EVP, merchandising and supply chain. “We’re taking the guesswork out of buying better-for-you products by bringing together 17 trusted brands.” There will be more than 120 new and limited-time exclusive Made to Matter products. Products will be available throughout the store, both in the products’ usual aisles and as part of specialized collection displays. Select products also will be available on Target.com and Target’s mobile app. First introduced in Target stores at the end of March 2014, new Made to Matter products will be added throughout spring and summer, with the complete collection available by September 2014.
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Amazon to allow customer returns via locker April 02, 2014 | Market Watch http://www.marketwatch.com/story/amazon-to-allow-customer-returns-via-locker-2014-04-02 Amazon.com Inc. has quietly rolled out a new service to let customers return unwanted merchandise using large metal lockers it has installed for deliveries in garages, convenience and grocery stores in major metropolitan areas. The service will help address a problem that has plagued Amazon and other e-commerce retailers. As much as a third of all online purchases are eventually returned, by some estimates, making it costly for merchants that in some cases pay for shipping in both directions. Packaging and shipping orders is a major expense for Amazon. The company has been on a warehouse-building frenzy in recent years, constructing facilities close to urban centers to speed delivery times. Amazon spent $8.59 billion on order fulfillment in 2013, up from $6.42 billion a year earlier. Amazon has been installing the lockers in public places over the past several years, giving urban dwellers a way to ensure their packages can be delivered even when they are at work. Amazon puts the packages in one of a few cabinets in a locker and sends the customer a code to open it, usually giving them two or three days to do so. Similarly, for returns Amazon sends a code to open a specific cabinet in a locker where customers can leave their merchandise for UPS or other carriers to retrieve.
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Finance CASINO continues momentum in Q1 April 15, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88474 French retailer Casino has posted its official Q1 results that saw net sales up 6.6% to EUR11.29 billion (USD15.47 billion) year on year, at constant scope of consolidation and exchange rates excluding petrol and calendar effect. France sales were down 1.8% to EUR4.67 billion (USD6.40 billion). In line with the price cut strategy initiated over a year ago, GÊant hypermarkets posted stable same store sales, for the first time in quarters. Casino & Franprix supermarkets continue to be depressed by the price cuts introduced over the past months, with sales down 2.5% and 3.7% respectively. Casino supermarket sales are stable, and brought traffic back in the green. Leader Price announced same store sales collapsed 9% due to price re-positioning, and traffic was still negative. Monoprix variety store remains resilient with like-for-likes stable 0.6%, thanks to Monop’ convenience store and Naturalia organic stores. Internationally, the retailer recorded an 11% rise to EUR6.62 billion (USD8.22 billion) but faced severe FOREX headwinds in its major region, LATAM. There, sales are up 12.3% at constant exchange rate but are crumpling 10.7% at current exchange rate. Brazil represented the bulk of the growth, with GPA Food posting like-for-like sales up 7% while non-food subsidiary Viavarejo posted same store sales up 3.8% year on year. Meanwhile, e-commerce arm Nova Pontocom posted 52.6% growth. As of Colombia, Exito will publish its figures on 28 April. Finally, sales were up 7.1% in Thailand and Vietnam, with negative like-for-like performance. In Vietnam, the retailer’s sales soared 16.8% thanks to the robust performance of stores opened last year.
Carrefour Q1 sales accelerate with Brazil, Spain April 14, 2014 | Progressive.bg http://progressive.bg/en/news/world/carrefour-q1-sales-accelerate-with-brazil-/1858/ Carrefour, Europe's biggest retailer, said underlying sales growth accelerated in the first quarter, driven by Brazil, the group's second largest market after France, while sales in austerity-hit Spain rose for the second consecutive quarter. Sales at closely-watched French hypermarkets slowed amid a price war, however, while China, another key emerging market Carrefour has earmarked for expansion, also stayed weak.
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Chief Financial Officer Pierre-Jean Sivignon said that Carrefour saw the market's consensus for core operating profit of around 2.38 billion euros this year as "reasonable at this stage". Carrefour is battling to reverse years of underperformance in Europe, where it earns 73 percent of its sales. Its problems are partly due to a reliance on the hypermarket format it once pioneered now that customers' habits have changed to favor more local and online shopping. In France, which accounts for almost half of group revenues, same-store sales at Carrefour's hypermarkets rose 0.7 percent, a slowdown from a 1.4 percent rise in the fourth quarter 2013.
FAST RETAILING fast tracks growth April 11, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88443 Fast Retailing’s consolidated net sales jumped 24.3% to JPY764.3 billion (USD7.4 billion) for the first half-year ended 28 February 2014. Hurt by lower proceeds from its exchange rate transactions, net income declined 1.4% to JPY64.5 billion (USD623.4 million). All Uniqlo group operations reported rising net sales, with Japan posting a 4.7% increase to JPY405.5 billion (USD3.9 billion). A 2.2% gain in same-store sales helped boost Q2 performance, according to the casual clothing retailer. Moreover, Uniqlo International’s performance in particular outstripped expectations with net sales soaring 75.1% to JPY232 billion (USD2.2 billion) over the six-month period across Greater China, South Korea and South-East Asia, Europe and North America. In China, Uniqlo’s brand image boost through its biggest global flagship store in Shanghai, launched in September 2013, was seen as one of the main contributing factors in net sales growth. US and European operations generated double-digit gains in net sales. The Global Brands segment expanded 31% to JPY125.3 billion (USD 1.2 billion), despite g.u. casualwear brand and premium denim label J Brand performing below expectations. The former’s shortfall was caused by heavy discounting on excess winter stock in the second quarter, Fast Retailing said, while the latter was adversely affected by poor conditions in the US economy. Fast Retailing said it will continue to focus on building up international Uniqlo operations “by accelerating the pace of new store openings outside of Japan”. This month alone, Uniqlo is launching its first stores in Germany- with its largest European flagship store in Berlin- and Australia, in Melbourne. Although Fast Retailing raised net sales forecast by 3.6% to JPY1.37 trillion (USD13.2 billion), expectations for net income were lowered 4.3% to JPY88 billion (USD849.7 million) for the full year ending in August. With rapid store expansion planned outside Japan, Fast Retailing’s ability to sustain profitability will be closely watched. When it first expanded overseas in 2001, the retailer opened too many stores too quickly, which resulted in most of them eventually closing. Low brand awareness was cited as one of the main reasons for the failure and this is being addressed in the retailer’s strategy this time. To ensure continued success in overseas markets, we can expect Fast Retailing to fine-tune its ‘made for all’ strategy to adapt sizing to American and European markets.
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Bed Bath & Beyond Q4’FY14 net sales fall 5.8% April 10, 2014 | fibre2fashion http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=162022 Bed Bath & Beyond Inc. reported net earnings of $1.60 per diluted share ($333.3 million) in the fiscal fourth quarter (thirteen weeks) ended March 1, 2014, compared with net earnings for the fiscal fourth quarter of 2012 (fourteen weeks) of $1.68 per diluted share ($373.9 million). Net sales for the fiscal fourth quarter of 2013 (thirteen weeks) were approximately $3.203 billion, a decrease of approximately 5.8% from net sales of approximately $3.401 billion reported in the fiscal fourth quarter of 2012 (fourteen weeks). Comparable store sales in the fiscal fourth quarter of 2013 increased by approximately 1.7%, compared with an increase of approximately 2.5% in last year's fiscal fourth quarter. Comparable store sales percentages are calculated based on an equivalent number of weeks for each quarter. During the fiscal fourth quarter of 2013, the Company repurchased approximately $532 million of its common stock, representing approximately 7.5 million shares. As of March 1, 2014, the remaining balance of the existing share repurchase program authorized in December 2012 was approximately $1.1 billion.
Highlights: •
Net Earnings per Diluted Share of $1.60 for Q4; $4.79 for Full Year
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Quarterly Comparable Store Sales Increase by Approximately 1.7%
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Modeling Fiscal First Quarter 2014 Net Earnings per Diluted Share of Approximately $.92 to $.96
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Modeling Fiscal 2014 Net Earnings per Diluted Share to Increase by a Mid-Single Digit Percentage
For the fiscal year (fifty-two weeks) ended March 1, 2014, the Company reported net earnings of $4.79 per diluted share ($1.022 billion), compared with net earnings a year ago (fifty-three weeks) of $4.56 per diluted share ($1.038 billion). The fiscal 2013 results included a reduction of approximately $.06 to $.07 per diluted share as a result of the disruptive weather in the fiscal fourth quarter, and the fiscal 2012 results were negatively impacted by Hurricane Sandy in the fiscal third quarter and included a benefit of approximately $.05 per diluted share as a result of an additional week in the fiscal fourth quarter. Net sales for fiscal 2013 (fifty-two weeks) were approximately $11.504 billion, an increase of approximately 5.4% from net sales of approximately $10.915 billion in fiscal 2012 (fifty-three weeks). Comparable store sales for fiscal 2013 increased by approximately 2.4% compared with an increase of approximately 2.7% last year. Comparable store sales are calculated based on an equivalent number of weeks for each annual period. The Company is modeling net earnings per diluted share to be approximately $.92 to $.96 for the fiscal first quarter of 2014, and to increase by a mid-single digit percentage for all of fiscal 2014.
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AUCHAN plans online mega-mall April 02, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88335 Two major French retailers are now looking to develop multi-channel capacities along with their real estate divisions. A few weeks after rival Casino’s similar announcement, Auchan’s Immochan is to launch a virtual shopping mall in October, Les Echos reports. The project, dubbed E2C, will gather the accumulated stores of the 80 shopping centres the property branch manages under one online portal. Out of the total of 400 tenant retailers, approximately 50% have an online presence. Shoppers will be able to order via the portal, pay online and collect purchases at the relevant store, or alternatively at a dedicated collection point within the mall. Home delivery will also be available but at a fee. For retailers, the platform is free to use, but Immochan will charge a commission on sales, which can reach 6-8% for household equipment and up to 12-14% for clothing. The move is likely to have arisen from a 0.4% traffic decline in its commercial centres – despite a million visitors a day and total turnover up 1.7% in 2013. In a bid to bring traffic back to positive territory, Immochan plans to invest EUR645 million (USD890.65 million) over the next three years with EUR250 million (USD342.56 million) dedicated to existing network refurbishment.
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Technology Future checkouts on trial at MEIJER April 07, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88378 Meijer is testing an automated scanning system in Michigan, reports Mlive.com. The NCR-built system uses Datalogic's Jade x7 scan portal to capture product barcodes on the conveyor belt. The machine automatically scans the merchandise and then sorts it to one of three collection areas, for customer bagging. A cashier manages the register as well as assisting customers with any questions or issues that come up during the checkout process. Customers can use coupons, mPerks and all payment options with the new system. The US Midwest supercenter specialist has not provided any further information on when the technology, or a version of it, will be introduced to its 203 locations across five states. Meijer is looking for ways to speed up the checkout process as it is seen as integral to improving the shopper experience.
Amazon launches Amazon Dash for delivery of groceries, household items April 04, 2014 | Reuters http://www.reuters.com/article/2014/04/05/us-amazon-amazondash-idUSBREA3402T20140405 Amazon.com Inc launched a new product named Amazon Dash on Friday that allows the user to add groceries and household goods to their shopping lists using the company's AmazonFresh service. A black-and-white hand-held wand-shaped remote-control features a microphone, speaker as well as a bar-code reader and links directly to the user's AmazonFresh account. However, the device is available only for users of the AmazonFresh which currently operates exclusively in Southern California, San Francisco and Seattle. The device is free during the trial period, according to the product's website. However, signing up for Amazon Dash is by invitation only while the AmazonFresh service is currently available only Southern California, San Francisco and Seattle. The online retailer has been steadily expanding towards electronics manufacturing businesses, starting with the Kindle e-reader which was first launched in 2007, and the Fire TV streaming set-top box announced earlier this week, even as it seeks new ways to energize a gradually slowing core retail business. Amazon has been steadily expanding its "Fresh" online grocery business, targeting one of the largest retail sectors yet to be upended by online commerce. The company has plans to launch AmazonFresh, which has operated in Seattle for years, in roughly 20 urban areas in 2014, including some outside the United States.
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A successful foray into groceries could also help underwrite the development of a broad-based delivery service employing Amazon trucks to deliver directly to homes, which could have implications for UPS, FedEx and other package delivery companies that currently ship Amazon goods. Still, groceries have proven to be one of the most difficult sectors for online retailers to manage successfully. One of the most richly-funded start-ups of the dot-com era, Webvan, was a spectacular failure as the cost of developing the warehouse and delivery infrastructure proved overwhelming. Amazon was unavailable for comment regarding the public availability of the device.
TESCO quietly introduces iBeacons April 04, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88370 As part of its instore navigation pilot using the retailer’s MyStore app, Tesco is trialling Apple’s iBeacons in its Chelmsford store, Marketing Magazine reports. Initially, the retailer will only use the technology for sending customers messages when they arrive to pick up pre-ordered goods. In order to avoid intimidating shoppers, the bluetooth low energy beacons will initially not send out customised offers, Mark Cody, Senior Group Marketing Manager for Mobile at Tesco, stated. Cody further disclosed that Tesco has looked into the Oculus Rift 3D virtual reality technology and announced the company planned moves in the mobile vouchering space within the next 12 months. Tesco is introducing the new technology in a careful way. However, it can be expected that once shoppers grow used to these types of services, the retailer will introduce more sophisticated tailored, location-based offers, fuelled by customer data from its extensive loyalty data base.
KROGER innovates again on IT April 04, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88367 Kroger is introducing an innovative technology infrastructure for its stores, dubbed Retail Site Intelligence (RSI). The new architecture is based on the ZigBee wireless standard and integrates long battery life sensors, hand held devices, POS systems and video management software into a unified platform for retail applications such as loss prevention, store automation and analytics. The underlying technology is the result of two years of collaboration between the US grocer and product engineering company eInfochips. The development includes new wireless devices such as cameras, scanners and scales, featuring ZigBee technology as well as a new video management software called Vigil360 specifically designed for RSI. Implementation, customisation and support services for the platform come from Wincor Nixdorf.
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Commercial versions of the RSI solutions being piloted by Kroger will be available later in 2014 with support and customisation services delivered globally. RSI products and applications include new handheld barcode scanner for shopper use and a loss prevention application using a video camera which also serves as a ZigBee Access Point. Kroger is known for being a retail industry pioneer when it comes to developing and testing new and innovative technologies. It was the first retailer worldwide to successfully automate entire distribution centres. In 2010, the US grocer launched the world’s first fully-automated tunnel scanner. The company has also been breaking new ground on mobile self-scanning initiatives.
PayPal, Panera step up mobile food ordering April 01, 2014 | Fierce Mobile Retail http://www.fierceretail.com/mobileretail/story/paypal-panera-step-mobile-food-ordering/201404-01 New mobile ordering efforts from PayPal and Panera Bread Co. will boost the popularity of using mobile payments to order food. PayPal (NASDAQ: EBAY) recently expanded its in-store mobile ordering payment program to more than 50 cafes, food trucks and restaurants in Toronto, enabling customers to pay for purchases via its app. Panera Bread Co. (NASDAQ: PNRA), meanwhile, is planning the chain-wide roll-out of a mobile ordering system designed to help take-out customers quickly get in and out of its restaurants. Panera is planning to invest $42 million in an overhaul of its technology which will help produce its new "Rapid Pick-Up" program. "Rapid Pick-Up" will let customers place to-go orders via Panera's mobile app and it will also add an "Enhanced To-Go and Eat-In" option, allowing customers to order at a kiosk, pick up their order at the counter and eat in the cafe. "I know that this is key to the future of Panera," said Panera CEO Ron Shaich in the newly released Panera 2.0 training video. "If Panera isn't able to make the step and really figure out how to use technology to enable a better and different guest experience, Panera won't be the success it has been in the past." Meanwhile, PayPal users in the U.S., Britain and Australia already have the ability to pay in-store with its app, but this is the first rollout of the service in Canada, and that market is ripe. A recent survey conducted by PayPal shows that 87 percent of Canadians wish they could be wallet-free. "At this point, we are definitely concentrating on the hospitality space, and it is mainly because it is an area where we had done some research and people have the most friction around going out for the evening and not wanting to bring their wallets," Kerry Reynolds, head of consumer marketing at PayPal Canada, told Mobile Commerce Daily.
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Strategy CARREFOUR and BHARTI GROUP tipped to create JV in India April 14, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88468 Walmart’s former partner in India, Bharti Group, is said to be in advanced talks over a joint venture with Carrefour, according to The Economic Times. Bharti Group ended its strategic partnership with Walmart last year and, if the move is confirmed, would mark the company’s come back in the cash & carry channel. According to the newspaper, Bharti Group is likely to have the significant majority in the operation, an estimated 74% stake. The deal is expected to be signed as early as May. Planet Retail remains very cautious with regards to this information, given that Carrefour has previously refused to comment on rumoured talks with the Bharti Group. Over the last few months, India’s press have also proved to be somewhat speculative about who Carrefour’s new partner will be and have pointed in every possible direction, from Future Group to Shoppers Stop’s HyperCity. That being said, the anti-FDI BJP party is currently tipped to triumph in India’s general election, making Carrefour’s cash & carry expansion more plausible.
Amazon buys digital comics retailer ComiXology April 11, 2014 | Fierce Retail http://www.fierceretail.com/story/amazon-buys-digital-comics-retailer-comixology/2014-04-11 Amazon (NYSE:AMZN) has taken to the funnies with the acquisition of ComiXology, a platform in digital comics, for an undisclosed amount on Thursday. The deal could allow Amazon to take the lead in the market for online comic books. ComiXology distributes digital comics from 75 publishers, including Marvel and DC Comics. In addition to the iPad, ComiXology offers its app on Amazon's Kindle Fire, as well as other devices that run Google's Android operating system. ComiXology has a Windows 8 app as well. The company announced its 100-millionth comic download in late 2012, and its 200-millionth download last fall. "We look forward to investing in the business, growing the team, and together, bringing comics and graphic novels to even more readers," David Naggar, Amazon's VP of content acquisition and independent publishing. Amazon didn't release details on how the merger will play out, but the companies did say there is no timeline for consumers on either the Kindle platform or those with the ComiXology app to notice a difference in their reading experiences. The deal is expected to close in the second quarter of 2014. ComiXology will continue to exist as a wholly owned subsidiary of Amazon based in New York City, says CEO David Steinberger, ComiXology co-founder.
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ComiXology debuted in 2007, first as a "pull list" service to aid consumers shopping for print comics at brick-and-mortar stores. The company's "Comics" app followed in 2009, as both an online store for digital comics and an e-reader platform with their patent-pending "Guided View" option. Releases from major North American comic book publishers are currently available via ComiXology, and their technology is used by both Marvel and DC Comics for their separately branded digital comics apps.
Sephora to bring high-tech pop-up shops to Coachella festival April 09, 2014 | Fierce Retail http://www.fierceretail.com/story/sephora-bring-high-tech-pop-shops-coachella-festival/201404-09 Sephora is no stranger to omnichannel retail launches, and this time the brand is taking tech to the Coachella Valley Music and Arts Festival. The retailer will construct two pop-up shops on site, which will feature makeover stations, cell phone chargers a digital photo booth and more complimentary amenities for festival-goers and celebrity guests. One of the venues will be displayed on site as "The Sephora Collection Beauty Studio," and will be held in a 40 sq. ft. tent both weekends of the festival, April 11-13 and April 18-20. Nine beauty stations will be staffed by members of Sephora Pro and Sephora Collection artists who will offer free beauty services. Once guests have their makeup refreshed, they can take a photo in Sephora's digital photo booth and upload it on all of Sephora's social platforms, including Facebook (NASDAQ:FB), Twitter, Tumblr and Instagram, or Sephora's new Beauty Board platform. Three live LED screens will display all social sharing inside the massive tent. A second Sephora venue will be backstage for exclusive access to celebrities and guests. This "VIP Artistry Service" trailer will be staffed by Sephora Pro artists who will offer makeup touch-ups for performers. Sephora is the exclusive beauty sponsor of the Coachella Festival. It's a huge opportunity for the retailer to reach tech-savvy and trendy millennials. Last year, the festival's producer, Goldenvoice, said 90,000 people bought three-day passes to each of the two weekends of the festival. The tech-heavy pop up shop comes on the heels of the launch of Beauty Board, the retailer's own social media platform. Beauty Board lives on sephora.com for desktop and in the already-existing Sephora app for mobile. The platform allows users to upload photos of their own makeup or hairstyle, add a caption and tag the beauty products used so other viewers can shop the exact products used to create the look.
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SAM'S CLUB digs into data April 08, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88389 Walmart's warehouse club segment Sam's Club in the US is getting serious about collecting and mining data to better understand its small business member needs. The chain has partnered with polling firm Gallop to launch a quarterly tracking survey of 'micro-businesses', defined as those with five or fewer employees. Sam's Club currently caters to about 600,000 small business members with 70% of this base considered micro-businesses, the company reports. During a media call last week, Sam's Club President & CEO Rosalind Brewer said the retailer plans to incorporate survey findings after monitoring results for two quarters. In an effort to be more “member-facing”, the retailer intends to make the survey results publicly available. The latest results from March indicate an upswing in small business ownership among female entrepreneurs. It will be interesting to see if and how Sam's Club amends its strategy in light of these findings. Following a weakening same-store sales performance in 2013, the introduction of a member tracking study is good news and must be viewed as a smart move by Sam's Club. The more the retailer understands the needs of its member base, the more relevant it can become in terms of product offer, merchandising and marketing - that is, if it heeds the findings and truly implements some changes. Knowing the business customer - and applying the findings - could help Sam's Club narrow the gap with club leader Costco.
Logistics revolution coming to CARREFOUR April 07, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88387 Carrefour is looking to adapt its French DC network in such a way they can supply all formats from small-box stores to hypermarkets, LSA reports. The remodelling will begin this year with a pilot in a non-disclosed location and is expected to be fully rolled out by 2016. Once implemented, any of the retailer’s 4,800 stores will theoretically have access to any available SKU. At the same time, the retailer is also intending to adapt assortments based on each individual store’s catchment area. While the new concept appears simple and logical on paper, it will be extremely complex to implement. For instance, Carrefour referenced some 400,000 new products in its database last year, and made more than one million modifications, involving prices to barcodes. As recently as 2007, Carrefour completed a restructure of its supply chain and separated the logistics of the hypermarket division from those of supermarkets and convenience stores. This latest switch is in line with CEO Georges Plassat’s aim to re-establish Carrefour’s operational excellence and give greater decision-making responsibility and flexibility to managers at store-level.
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