RETAIL NEWS FLASH November 01, 2013
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 7 Technology .......................................................................................................................... 14 Strategy .............................................................................................................................. 18
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Sales & Marketing STARBUCKS launches “Tweet-a-Coffee” October 29, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86543?WTrss_f=Daily%20News%20Summary&WTrs s_a=STARBUCKS%2Blaunches%2B%25e2%2580%259cTweet-aCoffee%25e2%2580%259d&WTrss_ev=a Starbucks has launched a Tweet-a-Coffee programme, a new way for customers to send Starbucks coffee as a gift. Customers in the US can sync their Starbucks account to their Twitter account and tweet to @tweetacoffee and the Twitter handle of the gift recipient, Starbucks will then send the recipient a USD5 digital eGift voucher. Customers can them redeem the USD5 Starbucks e-gift card at participating US stores, either by printing out the e-gift, showing the voucher on a mobile device, or by loading it to their Starbucks mobile app.
Toys ‘R’ Us takes holiday catalog online October 29, 2013 | Retailing Today http://www.retailingtoday.com/article/toys-%E2%80%98r%E2%80%99-us-takes-holiday-catalogonline?ad=news Toys ‘R’ Us plans to launch an online version of its “The Great Big Toys"R"Us Wish Finder” holiday catalog Nov. 2. The retailer is also launching The Toys"R"Us Wish List Wizard, a free iOS and Android app that turns parents’ smartphones into a scanner and lets kids scan items they want in-store for automatic inclusion on a digital wish list. Toys “R” Us is already giving fans and followers of the company's official Facebook, Pinterest, Twitter and Instagram pages a sneak peek of all 80 pages of The Great Big Toys"R"Us Wish Finder. And, throughout the holiday season, wishers and wish-granters alike can follow the conversation using the hashtag #WishinAccomplished. "Among the truest signs that the holiday season has begun, is the arrival of ‘The Great Big Toys"R"Us Wish Finder’ on families' doorsteps,” said Peter Reiner, senior VP, marketing, Toys “R” Us. “Every year, kids carefully comb through this beloved book, studying each item, and checking off the toys they hope to unwrap on Christmas morning, While children tackle the project of making their wish lists with great determination, parents also are steadfast in their hunt for great deals, and will be thrilled to find incredible savings, as well as Free Layaway, Extended Returns and Price Match Guarantee, to help make all their kids' wishes come true when shopping at Toys ‘R’ Us."
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Tesco launches this year's Clubcard Boost October 29, 2013 | The Retail Bulletin http://www.theretailbulletin.com/news/tesco_launches_this_years_clubcard_boost_29-10-13/ Tesco has launched a Christmas Clubcard Boost promotion which enables customers to double the value of their Clubcard vouchers in popular departments such as toys, electricals, wines and champagnes. Running online and in store until 20 December, the promotion allows customers to exchange every £5 worth of their Clubcard Vouchers for a £10 Boost Token. Tesco said the deal would also apply to its recently launched Hudl tablet, meaning that customers could buy the product for less than £100. Katie McQuaid, Tesco Clubcard director, said: “We run Christmas Clubcard Boost every year as an extra ‘thank-you’ to customers for shopping with us. This year we’re offering customers the chance to boost their vouchers in a number of popular departments, as well as our new Home Gifting range, so families can get even better value on their Christmas wish list. They can also enjoy fun days out with our Boost partners.”
Walmart celebrates mass promotions as it gears up for holiday October 29, 2013 | Retailing Today http://www.retailingtoday.com/article/walmart-celebrates-mass-promotions-it-gearsholiday?ad=news It’s beginning to look a lot like Christmas at Walmart, as the company prepares to promote more than 160,000 employees — including 25,000 promotions during its fourth quarter — ahead of the competitive holiday shopping season. "Our success from day one is a direct result of our associates and the hard work they do in taking care of our customers. We are proud to provide our people with additional opportunities for career growth and greater economic security for their families," said Bill Simon, Walmart U.S. president and CEO. "Like most Americans, our associates want good jobs and access to a better life. Whether you are a cashier in Charlotte, or a stocker in Dallas or an assistant manager in Los Angeles, Walmart wants to see you succeed." Simon is traveling to stores to congratulate those who received promotions, as are other top-level executives, including Gisel Ruiz, Walmart U.S. COO; Michael Bender, president of Walmart West; Joaquin Gonzalez, president of Walmart East and Mike Moore, president of Walmart Central. According to the company, in addition to standard salary and benefits, both full- and part-time employees at Walmart are eligible for quarterly bonuses based on the performance of their stores. Employees also receive a discount card to save 10% on most regularly priced general merchandise,
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fresh fruits and vegetables at any Walmart store. "I have been working in retail since I was in high school. I knew I wanted more opportunity to build my career, so when I heard Walmart was coming to town I immediately applied for a job," said Yoselin Umana, a grocery department manager in North Bergen, N.J. "I have been with the company for four years now. I know I made the right choice for my career and my family." These promotions are in addition to Walmart's announcement in September to move 35,000 employees from temporary to part-time jobs and another 35,000 employees from part-time to fulltime by the end of the year.
AMAZON raises Free Shipping threshold October 22, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86433?WTrss_f=Daily%20News%20Summary&WTrs s_a=AMAZON%2Braises%2BFree%2BShipping%2Bthreshold&WTrss_ev=a From this week Amazon customers must pay USD35 to qualify for free shipping on amazon.com, up from USD25 previously. It is the first time in a decade that the company has increased the free shipping threshold, which entitles customers to receive orders at no charge within 6-8 working days. The move is likely to push more customers towards signing up for an Amazon Prime subscription. For an annual fee of USD79 this entitles them to free two-day shipping. A notice on Amazon’s site reads: “The service is so popular that more than a year ago we began shipping more items with Prime than with free shipping.” It can also be viewed as a push towards increased profitability for the company, which spent USD3.63 billion on fulfilment in the first six months of 2013, up from USD2.65 billion a year earlier.
Pop-up promotion for IKEA UK October 21, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86392?WTrss_f=Daily%20News%20Summary&WTrs s_a=Pop-up%2Bpromotion%2Bfor%2BIKEA%2BUK&WTrss_ev=a Home furnishings giant IKEA is introducing a series of pop-up events nationwide as part a new branding campaign called Bringing the Family Together, Event reports. The campaign, by creative agency BWP Primal, is designed to highlight the role IKEA products can plan in family life. Peter Wright, IKEA UK & Ireland Marketing Manager, said: "We want to show that IKEA understands how people live at home.” The pop-ups are planned for shopping areas in towns where IKEA has a retail presence.
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Target bolsters digital initiative ahead of holiday shopping season October 21, 2013 | Retailing Today http://www.retailingtoday.com/article/target-bolsters-digital-initiative-ahead-holiday-shoppingseason?ad=news Target is enlisting Jonna Mendez, a former CIA officer, who will serve as a “Kids’ Gift Detective.” Inspired by her years of CIA experience, Mendez will offer online tips and techniques via a video series at ABullseyeView.com where she works with popular mom bloggers. In addition, Target will offer a dedicated kids’ gifts page on its website and will launch a digital gift catalog in early November. “Before parents can start shopping for holiday gifts, they need to solve the puzzle of what their kids want most, which often extends beyond the toy aisles,” said Scott Nygaard, senior VP, merchandising, hardlines, Target. “Target offers guests tools to build their lists, including a dedicated online portal, our annual kids’ gifts catalog and the Kids’ Gift Detective, who brings some lighthearted fun to list building.”
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Finance STARBUCKS reports FY sales uplift October 31, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86578?WTrss_f=Daily%20News%20Summary&WTrs s_a=STARBUCKS%2Breports%2BFY%2Bsales%2Buplift&WTrss_ev=a Starbucks yesterday reported financial results for the fourth quarter and fiscal year ended 29 September 2013. Quarterly revenue grew 13% to USD3.8 billion with continued strong comp growth of 8% in the Americas and 7% globally. Revenue for the year increased 12% to USD14.9 billion. Global comparable store sales grew 7%, following a strong performance in the Americas, China/Asia Pacific and the US but flat comps in EMEA. Starbucks opened 1,701 net new stores ending fiscal 2013 with 19,767 stores globally.
Next raises full-year profit forecast October 30, 2013 | The Retail Bulletin http://www.theretailbulletin.com/news/next_raises_fullyear_profit_forecast_30-10-13/ Fashion and homewares retailer Next has raised its full-year pre-tax profit guidance after seeing better-than-expected sales in its third quarter. In the three months to 26 October, total sales grew by 4.3% which was just above the retailer’s second half guidance range of +1% to +4%. In the retailer’s high street stores, sales edged up by 0.4% while online and catalogue sales grew by 10.7%. Next is now forecasting sales growth of between 2% and 3.75% in the full year. Pre-tax profits are expected to be between £650 million and £680 million, equating to growth of 4.6% to 9.4%. This compares to the retailer’s previous statement that profits would rise by between 2.2% and 8.6% in the full year.
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IKEA Germany declares ambition to double sales October 29, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86527?WTrss_f=Daily%20News%20Summary&WTrs s_a=IKEA%2BGermany%2Bdeclares%2Bambition%2Bto%2Bdouble%2Bsales&WTrss_ev=a IKEA in Germany, the group’s largest country market operation, has reported a 2.8% rise in sales to EUR3.99 billion (USD5.3 billion) for the year ended 31 August 2013. Online sales grew by 26.8% to EUR92 million (USD123 million), representing 2.5% of overall sales. Peter Betzel, Managing Director, told a press conference that he wants to double its sales in Germany to EUR8 billion (USD10.7 million) and believes there is capacity for an additional 20-25 stores in the country, over the current total of 46. Betzel also declared e-commerce to be a key focus, declaring the channel “a growing market, which we believe in”. The online product range has already been expanded to 7,200 out of 9,500 items offered for sale in stores. In addition, to improve customer access to the online channel, the retailer has reduced its delivery fee. Nevertheless, Betzel added that it must always be cheaper for customers to shop and collect the goods in the store and then build it themselves. "Our visitors should have no disadvantages," he said. In the current fiscal year, IKEA Germany will open its first city store at Hamburg-Altona and a shopping centre with an anchor IKEA store is also scheduled for Lübeck. The next projects are then Bremerhaven in 2015 and Kaiserslautern. Betzel said there are white spots on the IKEA map especially in Bavaria and Baden-Württemberg, but also in Darmstadt.
SHOP DIRECT profitable for the first time in a decade October 29, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86540?WTrss_f=Daily%20News%20Summary&WTrs s_a=SHOP%2BDIRECT%2Bprofitable%2Bfor%2Bthe%2Bfirst%2Btime%2Bin%2Ba%2Bdecade&WTrs s_ev=a Home shopping specialist Shop Direct has released its full-year results for the 12 months to 30 June 2013. The group reported a pre-tax profit of GBP6.6million (USD10.4million), compared to a loss of GBP57.7million (USD91.4 million) in 2012, having reduced exceptional costs from GBP46.2million (USD73.2million) to GBP8.4million (USD13.3 million). This is the first pre-tax profit in 10 years. The retailer achieved EBITDA growth of 22% to GBP132.5million (USD209.8million). Group sales rose a marginal 1% to GBP1.69billion (USD2.53billion). During the year, online sales grew 3%, and now account for 78% of total sales. Online sales continued to show an upsurge in Q1 2013/14, accounting for 81% of sales. Shop Direct stated that it delivered 25.9 million parcels in the year, containing 45.6 million products.
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Mobile is becoming integral to Shop Direct. Over a quarter, 27% of online sales were derived via mobile devices, up from a 20% in the previous year. In Q1 of its 2014 financial year, Shop Direct saw mobile devices account for 38% of online sales. At the same time, the number of catalogues distributed during its 2013 financial year more than halved to 4 million from 8.2 million in 2012, reflecting the shift to digital. Shop Direct also stated that almost half of its customers now browse and shop its websites across multiple devices, with 16% using a three-way combination of desktop, tablet and mobile. Furthermore, it revealed tablets were becoming increasingly important to its customers’ shopping experiences with them. Shop Direct said that electricals and seasonal products were the stand-out category performers, driven by strong sales of tablets, computers, small domestic appliances, gifts and beauty products. The retailer revealed that its newer brands, Very.co.uk and isme.com, continued to outperform the market with a combined sales increase of 18%, and stated it viewed these brands as the drivers of future for the business. Combined sales within its “heritage” brands, Littlewoods.com and KandCo.com, fell 7%. However, profitability was maintained thanks to “effective management”. During the year, the retailer grew its Collect+ network to over 5,250 stores and delivered 25.9 million parcels. Referencing its strategic ambitions, Shop Direct stated that “personalization” would be at the “core of the company’s growth strategy for the next five years”. In addition, the retailer said it would be focusing on innovation in own-brand fashion, after enjoying a positive response the launch of “Definitions” womenswear range from its Very.co.uk brand, and its first advertising campaign to promote its Ladybird childrenwear range at its Littlewoods.com brand.
Growth slows, profits decline at Apple October 28, 2013 | Retailing Today http://www.retailingtoday.com/article/growth-slows-profits-decline-apple?ad=news Apple sold nearly seven million more iPhones during its fourth quarter, but total revenue growth was up only 4.2% and profits were below prior year levels. Total revenue for the fourth quarter ended September 28, increased to $37.5 billion from $36 billion while net income declined to $7.5 billion, or $8.26 a share, from net income of $8.2 billion, or $8.67 a share. The company’s gross margins also took a hit, declining to 37% of sales from 40% in the year ago period. The company sold a record 33.8 million iPhones during the fourth quarter compared to 26.9 million in the year ago quarter. Growth of iPads was anemic however with sales of 14.1 million iPads up marginally from 14 million last year. Sales of Macs declined to 4.6 million units from 4.9 million. The lack of growth, compressed margins and drop in profitability didn’t discourage Apple CEO Tim Cook and the company said it expects to see strong holiday sales.
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“We’re pleased to report a strong finish to an amazing year with record fourth quarter revenue, including sales of almost 34 million iPhones,” Cook said. "We’re excited to go into the holidays with our new iPhone 5c and iPhone 5s, iOS 7, the new iPad mini with Retina Display and the incredibly thin and light iPad Air, new MacBook Pros, the radical new Mac Pro, OS X Mavericks and the next generation iWork and iLife apps for OS X and iOS.” The company also announced plans to give shareholders and early gift, announcing a $3.05 a share dividend to shareholders of record on November 11. “We generated $9.9 billion in cash flow from operations and returned an additional $7.8 billion in cash to shareholders through dividends and share repurchases during the September quarter, bringing cumulative payments under our capital return program to $36 billion,” said Peter Oppenheimer, Apple’s CFO. For the company’s first quarter which includes the holiday season, Apple said it expects sales to total between $55 billion and $58 billion and gross margins in the range of 36.5% and 37%.
Robust Q3 net income growth for DUNKIN' BRANDS October 25, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86496?WTrss_f=Daily%20News%20Summary&WTrs s_a=Robust%2BQ3%2Bnet%2Bincome%2Bgrowth%2Bfor%2BDUNKIN%2527%2BBRANDS&WTrss_ ev=a US-based foodservice operator Dunkin’ Brands has announced its third-quarter financial results for the period ending 28 September. Revenues increased 8.5% to USD186.3 million, against USD171.7 million in the same quarter in 2012. EBIT increased 17% to USD82.2 million from USD70.3 million in the previous year period while net income grew 36.2% to USD40.04 million. Dunkin’ Donuts' comparable store sales grew 4.2% for its US stores, due to increased sale of beverages, however international operations declined 1.4%. Baskin-Robbins’ comparable store sales increased 3.2% for its US outlets and 0.7% for its international stores. During the quarter Dunkin’ Brands opened 222 net new restaurants: 73 international Baskin-Robbins, 67 international Dunkin' Donuts, 81 US Dunkin' Donuts and one Baskin-Robbins US location. US franchisees remodelled 98 Dunkin’ Donuts stores. Nigel Travis, CEO Dunkin' Brands, said: “Both Dunkin' Donuts and Baskin-Robbins US continue to have excellent momentum and delivered another quarter of strong comparable store sales and net new restaurant growth. “
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Higher paint sales volumes boost Sherwin-Williams in Q3 October 25, 2013 | Retailing Today http://www.retailingtoday.com/article/higher-paint-sales-volumes-boost-sherwin-williamsq3?ad=news Sherwin-Williams cited higher paint sales volumes in its Paint Stores Group and acquisitions as helping to drive net sales growth. The company increased net income 12%, to $262.97 million from $234.95 million, during the third quarter of fiscal 2013. Net sales grew 9.4% to $2.85 billion from $2.6 billion. In September 2013, the retailer completed the acquisition of the Comex U.S. and Canada businesses which added an additional 306 stores, and during the quarter purchased 1.5 million shares of its common stock through open market purchases.
Amazon loses less as sales keep surging October 24, 2013 | Retailing Today http://www.retailingtoday.com/article/amazon-loses-less-sales-keep-surging?ad=news Amazon.com continued to lose money during its third quarter, although considerably less than a year ago, as its sales advanced 24% to more than $17 billion. After the market closed on Thursday, Amazon reported a net loss of $41 million, or nine cents a share, during the quarter ended September 30, versus a net loss the prior year of $274 million, or 60 cents a share. The reduced loss coupled with sales of $17. 1 billion which exceeded analysts’ estimate of $16.8 billion caused shares to surge in after hours trading. Sales in North America were especially strong, advancing 30.6% to $10.3 billion from $7.9 billion. “It’s been a busy few months,” said Amazon founder and CEO Jeff Bezos. “We launched a new Paperwhite and new Kindle Fires to positive reviews and surprised people with the revolutionary Mayday button. Average Mayday response times are just 11 seconds.” He went on to add that in the last 90 days, “our (Amazon Web Services) team got back to work on a big government contract, we brought eight million square feet of fulfillment center capacity online, deployed 1,382 Kiva robots in three (fulfillment centers), provided a new venue for artists to reach customers, signed up millions of new Prime members, announced Kindle MatchBook, Login & Pay, and nine new original TV pilots, joined the Code.org coalition, acquired TenMarks - a company that helps kids with math, scored a win for customers who want to use Kindles on airplanes even during
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takeoff and landing, began hiring and training 70,000 new U.S. (fulfillment center) employees to help serve customers this holiday season, and saw the Kindle Million Club grow to include 14 KDP authors.” The company also noted that its operating cash flow increased 48% to $4.98 billion for the trailing twelve months, compared with $3.37 billion for the trailing twelve months ended September 30, 2012. However, it said free cash flow decreased 63% to $388 million for the trailing twelve months, compared with $1.06 billion for the trailing twelve months ended September 30, 2012. For the fourth quarter, Amazon projected revenues in the range of $23.5 billion to $26.5 billion, a range that encompasses analysts’ forecast of $25.9 billion.
Q3 net income up 4.6% for MCDONALD'S October 22, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86427?WTrss_f=Daily%20News%20Summary&WTrs s_a=Q3%2Bnet%2Bincome%2Bup%2B4.6%2525%2Bfor%2BMCDONALD%2527S&WTrss_ev=a McDonald’s has reported revenue increase of 2.4% to USD7.3billion for the third quarter ended 30 September. Global comparable sales for the foodservice giant increased 0.9%. In its domestic market, US comparable sales increased 0.7%, supported by new core favourites and the popular Monopoly promotion. European comparable sales rose 0.2%. However in Asia/Pacific, Middle East and Africa (APMEA) comparable sales declined 1.4%, reflecting weakness in China, Japan and Australia due, in part, to the ongoing challenging economic climate. Operating income rose 5.7% to USD2.4 billion. US operating income was up 5%. Europe’s operating income increased 11%, reflecting strong performance in the UK, Russia and France, partially offset by Germany. APMEA operating income slumped 12%. Net income rose 4.6% to USD1.5 billion. Don Thompson, McDonald's President & CEO, said; "While we are focused on strengthening our near-term performance, the current environment continues to pressure results. Around the world, we remain confident in our ability to drive sustained, long-term profitable growth through our global growth priorities - optimising the menu, modernising the customer experience and broadening accessibility. Moving forward, we are committed to enhancing shareholder value through disciplined investments that support our long-term growth opportunities and further differentiate Brand McDonald's."
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Another strong Q3 for DOMINO'S PIZZA October 16, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86300?WTrss_f=Daily%20News%20Summary&WTrs s_a=Another%2Bstrong%2BQ3%2Bfor%2BDOMINO%2527S%2BPIZZA&WTrss_ev=a US-based Domino’s Pizza has reported a 6.9% increase in revenue to USD404.1million for its third quarter ended 8 September. Domestic same store sales grew 5.4%, continuing the positive sales momentum in the company's domestic business. The international division also posted strong results with same-store sales growth of 5.0%. During the quarter the company opened 126 net new stores, seven domestically and 119 internationally. Net income rose 17.7% to USD30.6 million. Patrick Doyle, Domino's President & Chief Executive Officer, said: "Domino's Pizza is connecting with customers everywhere through technology, quality, convenience and value. We continue to hold a leading presence in the restaurant category as a brand with solid momentum both in the US and around the world, with dedicated franchisees who are focused on great pizzas, strong customer service and consistent operations."
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Technology Loblaw Adding Contactless Debit Terminals October 30, 2013 | Supermarket News http://supermarketnews.com/loblaw-cos/loblaw-adding-contactless-debit-terminals TORONTO — Loblaw stores have begun accepting contactless debit payments at select stores, the debit card services firm Interac here said Wednesday. More than 14,000 Interac Flash enabled terminals will be deployed at Loblaw stores across Canada, the group said. The terminals allow for fast contactless payment for holders of Interac debit cards issued by Scotiabank, RBC Royal Bank, TD Canada Trust, Sunova Credit Union, Affinity Credit Union and Conexus Credit Union. "Interac Flash helps deliver a faster, more convenient checkout experience for customers wanting to pay using funds from their own bank account," said Mark O'Connell, president and chief executive officer of Interac Association and its parent, Acxsys Corp. "We're excited that Loblaw sees the value in offering Interac Flash to help enhance the customer shopping experience."
AUCHAN unveils plans for MyAuchan app October 30, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86544?WTrss_f=Daily%20News%20Summary&WTrs s_a=AUCHAN%2Bunveils%2Bplans%2Bfor%2BMyAuchan%2Bapp&WTrss_ev=a Via MyAuchan smartphone app, Auchan is to navigate shoppers around stores and help consumers reduce food waste, reports Les Echos. Digital agency Phoceis has developed these two new functions for the French retailer’s MyAuchan app. The navigation tool has already been tested in one outlet, it sorts items on the shopping list according to the store layout and gives customers directions to the products. The other function alerts customers before products reach their expiry dates. To enable this, shoppers have to scan items before putting them in the fridge. While instore navigation is expected to be rolled out soon, the best before date feature will not be implemented until 2015.
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DunnhumbyUSA Partners with GNC October 28, 2013 | Progressive Grocer http://www.progressivegrocer.com/top-stories/headlines/national-supermarketchains/id40289/dunnhumbyusa-partners-with-gnc/ DunnhumbyUSA has entered into a multiyear contract with GNC Holdings Inc. to apply its customer centricity solutions across all facets of GNC’s marketing, working closely with GNC to more effectively segment and engage with customers of its more than 6,200 retail outlets and online at GNC.com throughout the United States. This will include personalized communications and offers to shoppers through both online and offline channels. GNC has long recognized that getting closer to individual shoppers and creating sustained loyalty is key to building its competitive advantage. The retailer began down a path to customer centricity more than a decade ago with the introduction of the GNC Gold Card, which currently engages several million GNC customers. Earlier this year, GNC launched the Member Price Program to offer even more value to Gold Card members, making benefits previously offered one week per month now available to customers every day. “Partnering with DunnhumbyUSA represents a significant investment in our direct marketing efforts to be as customized and relevant as possible to every customer on a more personalized level," said Joseph M. Fortunato, GNC’s chairman, president and CEO. “The ability to completely understand our customers’ shopping patterns provides GNC the ability to target products and offers that each customer desires for their individual health and wellness needs, as well as complementary products that will add value to them achieving their individual goals. Our end goal is to maintain customers for life by providing them the best supplement brand and products in the world, developed by GNC’s unique Product Development and Scientific Affairs Department.” Stuart Aitken, CEO of DunnhumbyUSA, said: “GNC’s customers are not only very dedicated to their personal health and wellness, they are also very enthusiastic about the GNC brand. So for us, delivering relevance is crucial to growing that customer enthusiasm about the GNC brand. We want to keep those customers coming back for more and more, year after year.” Dunnhumby analyzes data and applies insights from more than 400 million customers across the globe to create better customer experiences and build loyalty. DunnhumbyUSA is a joint venture of the Cincinnati-based Kroger Co. and London-based Dunnhumby. Pittsburgh-based GNC Holdings Inc. is a leading global specialty retailer of health and wellness products, including vitamins, minerals and herbal supplement products, sports nutrition products and diet products.
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NCR/Inmar Solution Enables Rapid Digital Coupon Deployment October 28, 2013 | Progressive Grocer http://www.progressivegrocer.com/top-stories/headlines/in-store-systems/id40291/ncr-inmarsolution-enables-rapid-digital-coupon-deployment/ Inmar has entered into a strategic relationship with NCR Corporation that will give retailers increased control over their digital promotions and help them capitalize on the growing demand for digitally delivered offers. Through this relationship, retailers using NCR marketing software and point-of-sale (POS) solutions will now be able to instantly “turn on” digital promotions and integrate them into their marketing efforts. “Inmar’s engagement with NCR is going to equip retailers using their marketing software and technology solutions to effectively leverage the increasing popularity of digital coupons for better sales and profitability,” said David Mounts, CEO, Inmar. “Because our real-time commerce solutions complement NCR’s innovative marketing software and point-of-sale solutions so effectively, retailers that ‘opt in’ will be able to introduce digital promotions into their marketing efforts with remarkable speed – and at a minimal cost.” This new offering will integrate Inmar's cloud-based digital coupon solutions with NCR’s marketing and POS applications, enabling retailers to quickly implement digital coupon campaigns and provide paperless coupons to their customers via multiple consumer touch points. The solution accommodates the needs of the entire digital coupon value chain and facilitates offer distribution, acquisition, redemption and settlement. “We are seeing increased demand from retailers to use detailed analytics to target preferred customers with offers that optimize the retailer’s marketing spend across all channels to increase profits,” said Scott Kingsfield, SVP and general manager, NCR Retail. “Through this relationship with Inmar, retailers will now have a comprehensive view of their customer to more effectively execute and capitalize on end-to-end marketing initiatives.” Redemption of paperless, digital coupons continues to grow exponentially, with Inmar reporting a 234 percent increase in redemption volume in the first half of 2013 versus the same period last year. In the first six months of 2013, Inmar settled, and observed settlement of, more paperless digital coupons (28.5 million) than in all of 2012 (27.5 million). Winston, Salem, N.C.-based Inmar operates intelligent commerce networks that connect offline and online transactions in real time for retailers, manufacturers and trading partners across multiple industries.
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FAMILY DOLLAR to address shrinkage October 25, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86495?WTrss_f=Daily%20News%20Summary&WTrs s_a=FAMILY%2BDOLLAR%2Bto%2Baddress%2Bshrinkage&WTrss_ev=a Family Dollar Stores has entered into a multi-year agreement with Checkpoint Systems that will see the deployment of Checkpoint’s EVOLVE P10 ECO electronic article surveillance (EAS) systems in all its existing and future stores. The complete roll-out to the US value retailer’s existing 7,900 stores is expected by December 2014. Checkpoint and Family Dollar have been analysing results in a number of test stores across the US over the last three years. Based on the results gathered from these stores, Family Dollar is installing the system, designed to reduce shrink and lower energy costs.
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Strategy CARREFOUR to take over Coop Alsace stores October 29, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86532?WTrss_f=Daily%20News%20Summary&WTrs s_a=CARREFOUR%2Bto%2Btake%2Bover%2BCoop%2BAlsace%2Bstores&WTrss_ev=a Following the wishes of Carrefour's CEO, Georges Plassat, to resume expansion in France, the retailer is in exclusive talks to acquire around 130 convenience stores in Eastern France from retailer Coop Alsace. The latter’s CEO, Christian Duvillet, told Reuters “We have the objective to close the project within three months”. The transaction speed is unlikely to be hampered by the Competition Authority given the limited network of the market leader in the region. A deal with Carrefour could be a coup de grâce for Coop Alsace, which had already sold its supermarkets and hypermarkets to Leclerc back in 2012. In order to hit its target of breaking even by 2014 after years of losses, the cooperative has also gone through drastic restructuring. Earlier this year Duvillet prophesied “We will not be able to keep *all stores+”.
Target Sets Final Canada Conversions for 2013 October 28, 2013 | Supermarket News http://supermarketnews.com/retail-amp-financial/target-sets-final-canada-conversions-2013 MISSISSAUGA, Ontario — Target Canada here said it plans to open 31 stores on Nov. 13 and two on Nov. 22, completing its rollout of 124 stores for the year and nearly completing the conversion of the Zellers stores it acquired in 2011. “The final store openings for this year mark a major milestone in Target's history,” said Tony Fisher, president, Target Canada. “The goal for our Canadian expansion was to open 124 stores across all ten provinces in 2013, and we are proud to say that with the help of more than 20,000 Canadian team members nationwide, we have accomplished this unprecedented undertaking.” The majority of the 33 locations will feature a licensed Starbucks, as well as an in-store pharmacy. As previously announced, the majority of stores in Quebec will offer Brunet pharmacies, which are scheduled to open starting in summer 2014. Target said it would announce details about further openings at a later date. In 2011, Minneapolis-based Target Corp. acquired 189 leases from Zellers, but transfered some to Wal-Mart and retained 134 for conversion to Target. The stores, which the company said had an uneven start in terms of initial sales perfromance, mark Target’s first venture outside the U.S.
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Petco pursues new growth frontier in Mexico October 25, 2013 | Retailing Today http://www.retailingtoday.com/article/petco-pursues-new-growth-frontier-mexico?ad=news Petco has opened its first store in Mexico and announced plans for continued expansion in Mexico and Latin America through a previously announced joint venture with Grupo Gigante of Mexico. Together, the companies plan to open as many as 50 Petco stores in Mexico and Latin America by 2020. “For nearly 50 years, Petco has been a leader in providing pet lovers with the products, services and advice they need to help their pets live happy, healthy lives, and we're excited to begin serving pet parents in Mexico and Latin America," said Petco CEO Jim Myers."We believe our pet specialty expertise, combined with Grupo Gigante's strong knowledge and track record in Latin America, will be a powerful combination that will further drive our growth." Grupo Gigante has business operations with Office Depot de MĂŠxico (office supplies), The Home Store (home & fashion stores), Gigante Grupo Inmobiliario (real estate management and project development), The Cup Stop (coffee shop express service), Restaurantes Toks (family restaurants), and Aling Pro (software and business management solutions. Terms of the joint venture were not disclosed.
Asian expansion on YUM! BRANDS agenda October 25, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86490?WTrss_f=Daily%20News%20Summary&WTrs s_a=Asian%2Bexpansion%2Bon%2BYUM!%2BBRANDS%2Bagenda&WTrss_ev=a US-based foodservice operator Yum! Brands plans to invest USD10 billion along with its franchise partners with a goal of operating 20,000 restaurants in emerging markets, reports Franchise India. In addition, the company plans to step up outlets in its Indian division, from 613 to over 1,000. The new stores are to be opened in more than 100 cities across the India division, which also includes Sri Lanka, Nepal, Bangladesh and Mauritius, by 2015. Niren Chaudhary, President Yum! Restaurants India, said: "Our India business has been making incredible progress, laying the foundation for similar emerging markets where the consuming class is likely to double in five years."
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Safeway Stock Up on Buyout Reports October 23, 2013 | Supermarket News http://supermarketnews.com/retail-amp-financial/safeway-stock-buyout-reports PLEASANTON, Calif. — Safeway's stock rose nearly 8.2% Wednesday to $35.58 per share following approval by the Canadian Competition Bureau of the sale of its Canadian assets to Empire Co. and the speculation that followed that Safeway itself may become an acquisition candidate. The closing price was below Safeway's high for the year of $36.75 per share but represented a gain over the $32.90 it was trading at when the market closed Tuesday. Reuters reported Cerberus Capital Management, New York, and other, unnamed private-equity investors might be interested in a buyout of Safeway or an acquisition of several of its assets now that the retailer has the $4 billion cash from the Canada sale on its balance sheet. Safeway said previously it plans to spend $2 billion to pay down debt and the other $2 billion to buy back stock, but industry observers suggested a buyout could be proposed and that Safeway might be interested, given its repeated assertions that it is seeking to create shareholder value. In a conference call with investors Wednesday morning, Karen Short, senior analyst at Deutsche Bank, New York, said, “Any bidder would want to get $4 billion in cash on the balance sheet. In addition, Safeway owns about 40% of its real estate, which would be worth up to $8 billion. And if Cerberus, a strategic player, was the buyer, there would also be synergies north of $500 million to $600 million, possibly up to $900 million.” Synergies would include overhead savings, distribution efficiencies, advertising consolidation, private-label purchasing, labor and cost-of-goods, she said.
THE BODY SHOP acquires Brazilian beauty store chain October 16, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/86314?WTrss_f=Daily%20News%20Summary&WTrs s_a=THE%2BBODY%2BSHOP%2Bacquires%2BBrazilian%2Bbeauty%2Bstore%2Bchain&WTrss_ev=a L’Oréal-affiliated beauty store chain The Body Shop has announced the acquisition of 51% of Brazilian franchised retailer Emporio Body Store. It has the option of increasing its shareholding to 80% by 2019. In 2012, Emporio Body Store achieved consolidated sales of BRL20 million (USD10 million) and operated 84 beauty stores at year-end. Emporio Body Store will offer a range of The Body Shop's most popular products complemented by new items developed locally at L’Oréal’s Research Centre in Rio de Janeiro. The founder of the chain, Tobias Chanan, will remain CEO of the group with the objective to expand the business through the franchise channel. The acquisition is subject to the approval of the Brazilian Antitrust Authority, CADE, and should be completed before the end of the year.
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