RETAIL NEWS FLASH April 01, 2014
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 7 Technology .......................................................................................................................... 10 Strategy .............................................................................................................................. 13
2|Sutherland Insights Retail News Flash Apr 01, 2014
Sales & Marketing Sears launches Now + Here omnichannel, fast-fashion format March 27, 2014 | FierceRetail http://www.fierceretail.com/story/sears-launches-now-here-omnichannel-fast-fashionformat/2014-03-27 Sears (NASDAQ: SHLD) today announced the launch of Now + Here, a fast-fashion shop-in-shop available in Sears stores and through Sears' e-commerce site and Shop Your Way program. The Now + Here initiative offers monthly deliveries of trendy clothing and accessories to keep up with the latest styles offered by other teen retailers such as H&M and Forever 21. The Now + Here retail experience extends online with an omnichannel focus that provides access to exclusive content, including behind the scenes videos and fashion tips. With Now + Here, the goal is to bring new fashion trends from design studios to store shelves much more quickly and to increase the rate of cycling through new designs. "Fast fashion for Sears means an accelerated timeline for trends at an affordable price. The new Now + Here shop provides an experience that transcends the store, leveraging our integrated retail capabilities to give our customers and Shop Your Way members a 360 degree fashion experience," said Sheila Field, CMO for Sears apparel. Apparel has been the rare bright spot for the chain, thanks in part to competitor J.C. Penney's missteps, and in part to new celebrity-backed fashion lines by Adam Levine and Nicki Minaj. Sales driven by Shop Your Way rewards program members grew to 69 percent of total sales at Sears and Kmart for the full fiscal year 2013. That's up from 59 percent last year. Online and multi-channel businesses grew 10 percent over the prior full year. To celebrate the launch of Now + Here, Sears will host a virtual event, followed by a live online fashion chat with celebrity Brooke Burke-Charvet on April 14. Beginning March 27, users will be able to register online for the event, which will include a virtual runway show experience, behind-the scenes-video, a new product lookbook and live shopping of looks throughout the show. During the live chat, Burke-Charvet will share her best fashion tips, answer questions and offer style advice. The new Now + Here program, comes on the heels of another omnichannel program that Sears is launching to capture the teen audience. Sears has partnered with Seventeen magazine to create a full line of clothing, shoes and accessories aimed at juniors. The companies are also working to create specially branded Seventeen boutiques inside 500 Sears stores, including 10 flagship locations. The shops will feature Seventeen signage, interactive elements, charging stations and image pieces.
3|Sutherland Insights Retail News Flash Apr 01, 2014
Saks expands free shipping to all orders, no minimum March 25, 2014 | FierceRetail http://www.fierceretail.com/story/saks-expands-free-shippping-all-orders-no-minimum/2014-0325 Saks Fifth Avenue is the latest retailer to modify its shipping policy to meet the demands of costconscious online shoppers. The retailer said it has expanded its free shipping to all orders regardless of purchase total. Saks had previously offered free standard shipping only to Saks credit card holders who made an online purchase using the card. The company's previous shipping costs started at $5 and would increase depending on the total value of the order placed. Saks sent out an email to subscribers introducing the new promotion as, "Free shipping, every day, every order." The company also shared the news via its social media channels. Shipping is becoming the Achilles heel for retailers who struggle to keep customers happy as ecommerce business skyrockets, while thinking of the most cost-effective strategies to transport products to a customer's doorstep. Cost-savings is going to become even more critical for retailers, since up until now, the consumer has been conditioned to expect free shipping. "Over the last three years, our data shows that free shipping with and without a threshold is as strong as ever throughout the entire course of the year. Consumers expect to have free shipping and they expect retailers to subsidize free shipping," said Sucharita Mulpuru, vice president and principal analyst at Forrester Research. In order to help customers get goods faster while keeping costs low, many retailers have now begun to offer more ship-to-store and click-and-collect items, where shoppers can order online and pick up in-store.
RadioShack opens two new concept stores March 21, 2014 | FierceRetail http://www.fierceretail.com/story/radioshack-opens-two-new-concept-stores/2014-03-21 RadioShack (NYSE: RSH) will open two more concept stores this week. One will open in Sun Valley, Calif. while another will debut in Manhattan as the chain continues to pepper the urban island with shiny new prototypes. Both stores will open on Saturday, March 22. The two stores join roughly 25 concept stores that have opened since the company began converting older units in July 2013. All of RadioShack's concept stores feature remodeled interiors and provide interactive areas.
4|Sutherland Insights Retail News Flash Apr 01, 2014
In addition, all newly remodeled stores feature a speaker wall controlled by in-store tablets, an "Idea Center" where shoppers are encouraged to bring their ideas to life through collaboration with store associates at a convenient work space, and newly configured displays highlighting in-demand brands like Apple, HTC and Samsung, as well as mobile carriers such as AT&T, Sprint and Verizon. There also are designated areas on the sales floor where shoppers can receive one-on-one training, a key concept behind RadioShack's latest "'Do It Together" marketing campaign. Many of RadioShack's shoppers skew to an older age bracket and look to the store for help with gadgets, device setup and electronics troubleshooting. The new "DIT" campaign lets shoppers know that they can get the help they need when they walk into any RadioShack store. RadioShack's concept stores are the company's way of upgrading older, outdated store formats. The company is working to attract and convert a segment of shoppers who use brick-and-mortar for "showrooming," leave empty-handed and later head to Amazon.com to make their purchases. RadioShack has said that if the concept stores are successful, the company plans to roll out the new design to all of its locations in the U.S. RadioShack has been in the midst of a turnaround effort for several years, and is still struggling to generate sales. The retailer announced on Mar. 4, it would close up to 1,100 stores, 20 percent of its locations, after reporting a much wider than expected fourth-quarter loss of $191.4 million on plunging sales in the holiday quarter.
WALMART tests Savings Catcher March 20, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88194 In yet another effort to ensure its position as low price leader, Walmart is testing what seems to be a revamped iteration of its Receipt Comparison Tool, which was first introduced in select markets in 2012. The latest initiative dubbed Savings Catcher is being piloted in seven markets: Atlanta, GA; Charlotte, NC; Dallas, TX; Huntsville, AL; Lexington, KY; Minneapolis, MN; and San Diego, CA. After shopping Walmart stores, shoppers have the option of entering a number located on the bottom of their receipt either online at savingscatcher.walmart.com or on a mobile app. Walmart then conducts price comparisons against the currently advertised prices of leading local-area grocers, including drugstores and dollar stores. If a lower price is found at a competing retailer, Walmart will refund the difference in the form of a Walmart Rewards eGift card. The price check scheme currently applies to most grocery and consumables items, including health & beauty. Several exclusions apply - for example, store brands are not included. Full program details, including FAQs, can be found at Walmart's website.
5|Sutherland Insights Retail News Flash Apr 01, 2014
TESCO taps instore initiative March 18, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88146 Tesco is trialling a pizza delivery service from its Extra store in Streatham, south London. The trial will initially offer deliveries only to those living in the immediate catchment area. The idea, originating from the store’s manager, is part of CEO Philip Clarke’s plan to give individual outlets greater flexibility to put their own initiatives into practice. Tesco has been experimenting in new store formats over the past year as it seeks to convert its outlets into more compelling retail destinations and drive footfall. At big-box outlets, the retailer has also been subletting space to other retailers in an effort to increase shopper numbers. The pizza delivery scheme in Streatham appears to have been inspired by the store being located adjacent to a large urban housing estate.
6|Sutherland Insights Retail News Flash Apr 01, 2014
Finance Underwriters buy Sprouts shares March 31, 2014 | Supermarket News http://supermarketnews.com/retail-financial/underwriters-buy-sprouts-shares Sprouts Farmers Market on Monday said that underwriters of its recent stock offering have exercised rights to buy an additional 2.25 million shares of company stock at $33.75 per share. The exercise of the underwriters' option brings the total number of shares of common stock sold in the offering to 17.25 million shares. The underwriters include a group of banks led by Goldman, Sachs & Co., Credit Suisse, BofA Merrill Lynch, Apollo Global Securities, Barclays, Deutsche Bank Securities, UBS Investment Bank, Guggenheim Securities and Wolfe Research Securities. The shares were sold by Apollo Global Management, Spouts' majority owner. No proceeds of the offering went to the retailer.
AMAZON takes Yodel stake March 25, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88244 Amazon has struck a deal with the Barclay Brothers to acquire a stake in UK-based parcel delivery service Yodel, the Guardian reports. Amazon has been given an option to acquire 4.2% of Yodel in a deal allowing for an overall valuation of the business at GBP207 million (USD339 million). According to Yodel accounts, the option to acquire the stake for GBP8.7 million (USD14.2 million) remains open until 2022. Yodel, which has attracted criticism in the past for the quality of its service, is currently the UK’s second-largest delivery service after the Royal Mail. It was born out of the delivery business of catalogue retailer Littlewoods and now ships more than 135 million parcels annually. Its top clients include Tesco Direct, Boots and Argos, although the company has lost major clients in recent years such as John Lewis, Matalan and Mothercare.
Office Depot Grapples With Office Max Merger Issues March 25, 2014 | Integrated Solutions for Retailers http://www.retailsolutionsonline.com/doc/office-depot-grapples-with-office-max-merger-issues0001 Company in process of downsizing, determining store closures Finalizing the $1.2 billion merger of rivals Office Depot and Office Max was just the start of the work for company executives.
7|Sutherland Insights Retail News Flash Apr 01, 2014
The merger, completed in November, created a $17 billion business with more than 2,200 stores nationwide, making it the second largest office supply retailer in the nation. Staples is first. But the merger didn’t mean insta-success for the larger company, which saw a fourth-quarter adjusted loss and disappointing sales. Along with the challenges and costs associated with merging, the company has also been grappling with how to tackle industry challenges that include heightened competition from online retailers and a continuing shift to the use of office technology. The full-year outlook also missed goals, executives said during the first earnings call since the merger. Office Depot saw its shares fall 12 percent after the earnings call. But the company has taken several steps to streamline its newly merged operations and work toward future success. Those steps include hiring Chief Executive Roland Smith, who was brought in after the merger because of his background in corporate turnaround and integration. During the earnings call he said he is “optimistic” he can turn Office Depot into a stronger company. His 15 years in leading companies includes six company turnarounds and two mergers. He has worked for Delhaize America LLC and Wendy’s among others. In his first months with Office Depot, Smith has: •
Hired a new finance chief and filled two new positions: a president of North America operations as well as a chief strategy and an innovation officer.
•
Identified more than $600 million in annualized cost savings by 2016 that comes from combining companies, including a better negotiating power with vendors, combined advertising purchases and other initiatives.
•
Cut corporate headcount by 35 percent. That gives the company a combined HQ staff of about 3,700. The OfficeMax employees that will remain with the company will relocate from Naperville, IL to Boca Raton, FL where Office Depot’s headquarters are. Office Depot notified the state of Illinois that it plans to close OfficeMax’s Illinois headquarters by early 2015. There are 1,600 employees at the Illinois headquarters. The company said it expects to pay $400 million in integration expenses and severance pay from 2014 to 2016.
•
Retained a consulting firm to study its real estate strategy and determine a number of potential store closings. Stores will begin closing later this year, Smith said.
Green light for TESCO India venture March 21, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88220 Months after it was first revealed by Planet Retail, Tesco has confirmed it has received regulatory approval to enter into an agreement with Trent Limited, part of the Tata Group, to form a 50:50 joint venture in Trent Hypermarket Limited (THL), which operates the Star Bazaar retail business in India. The deal was subject to approval from the Indian Foreign Investment Promotion Board.
8|Sutherland Insights Retail News Flash Apr 01, 2014
Tesco’s investment will be around GBP85 million (USD139.3 million). Completion of this transaction is subject to other necessary approvals. On completion of the transaction THL will operate 12 stores retailing a range of merchandise including food and grocery, personal and home care products, home and kitchen, fashion and accessories. The stores will be operated under the Star Bazaar and Star Daily banners and spread across the southern and western regions of India. Since 2008 Tesco has had a wholesale supply and franchise/technical service agreement to supply merchandise and provide technical know-how and support to THL in India. The news means Tesco will gain access to a vast market with more than one billion inhabitants and a fast-growing middle class. Entering India via a joint venture will give Tesco access to local knowledge while also ensuring capital investment will be kept in check.
Petsmart Reports Double-Digit Earnings March 20, 2014 | Integrated Solutions for Retailers http://www.retailsolutionsonline.com/doc/petsmart-reports-double-digit-earnings-0001 In-store services contribute to earnings, inventory available to online customers Largest pet retail and service company Petsmart reports a strong 2013 fiscal year. Although Q1 and FY 2012 include one week more than 2013, results are being compared based on a 13-week quarter and a 52-week year. Net sales for the fourth quarter of 2013 increased by 2.9 percent compared to Q4 2012 at $1.8 million. Store sales of stores open for more than a year, including Internet sales, increased 1.2 percent from Q4 the previous year. The company’s service sales climbed 2.6 percent to a total of $186 million, which is included in net sales of Q4 2013. Earnings per share increased 19.6 percent to $1.28 compared to $1.02 of Q4 2012. Net income of Q4 2013 grew by 14 percent to $132 million compared to $115 million of Q4 2012. FY 2013 marks the fourth consecutive year of double-digit earnings for Petsmart. Earnings per share increased 18.9 percent at $4.02 vs. $3.38 from FY 2012. Petsmart produced $615 million in cash flows from operating activities, spent $147 million on store maintenance and utilities, distributed $54 million in dividends, bought $464 million of Petsmart stock, and ended Q4 2013 with a total of $357 million in cash, cash equivalents, restricted cash, and zero borrowings. Petsmart suffered a 10 percent drop in shares since the beginning of 2014, however, due to weak holiday sales. Petsmart offers in-store services, including: grooming, training, adoptions, and pet boarding through Banfield Pet hospital — which have been increasing earnings significantly each year. By providing pet services and selling high-quality pet supplies, the company is bringing in repeat business and increasing cross-selling opportunities. Such services benefit the company when compared to online and traditional retailers. Petsmart offers more than 10,000 products through its web page in addition to the 11,000 products sold in 1,314 Petsmart stores. The company offers savings, special promotions, and free shipping to customers who shop through the website. In addition, Petsmart improved the site to simplify the instore shopping experience by offering online inventory of items available at local stores.
9|Sutherland Insights Retail News Flash Apr 01, 2014
Technology A Smart Fitting Experience March 31, 2014 | RIS News http://risnews.edgl.com/retail-news/A-Smart-Fitting-Experience91840 Kohl’s will pilot a Connected Fitting Room from Microsoft and Accenture to bring the ever-advancing omnichannel shopping experience to the fitting room. Upon entering the fitting room the system, equipped with RFID, recognizes the items the customer has brought in and displays them on a touchscreen. The article’s description and features are displayed, as well as additional colors and sizes available. In the fitting room the user can request sizes and/or colors and have them brought to the fitting area. Sales associates are equipped with Windows 8 Embedded handheld devices for realtime requests from the fitting room. The system tracks items brought in and provides analytics on merchandise via a BI dashboard app.
Bon-Ton IT Investments, Inventory And E-commerce: Improving Customer Experience March 28, 2014 | Integrated Solutions for Retailers http://www.retailsolutionsonline.com/doc/bon-ton-it-investments-inventory-and-e-commerceimproving-0001 This spring, Bon-Ton will deploy new features that will provide a better shopping experience for instore and e-commerce customers. In efforts to drive sales growth, the retail company will introduce “Let Us Find It” software, syncing POS systems with store inventory. This new in-store feature is expected to be Bon-Ton’s largest opportunity in increasing growth in sales, second to e-commerce. After success with RFID technology in fall of 2013, the company will expand its use throughout the store. In November of last year, Bon-Ton experimented the use of RFID in 32 store locations for the shoe department. With the convenience of near field connected phones or in-store tablets, customers were able to quickly acquire information on desired shoes, including color selections, sizes, product availability, and online purchasing options. The retailer worked closely with Thinaire to develop a platform and Smartrac for the tagging of merchandise. Customers simply scan the tag on the display shoe to their phone, Thinaire software delivers specific product details to the customer based on their location, including purchasing options on Bon-Ton’s e-commerce site if product is not available in-store. The store provides the same services through Google Nexus tablets for customers that cannot connect by phone. Mark Donovan, Thinaire’s chief operating officer states, “As the levels of smartphone use continue to rise at meteoric rates, providing meaningful engagement experiences that enhance the brick-andmortar shopper experience is key to a retailer's success.” (RFID Journal) (RFID Journal 2) Bon-Ton has experienced sale increases and customer satisfaction with the development of this informative system, resulting in extending its use in other departments this year.
10 | S u t h e r l a n d I n s i g h t s R e t a i l N e w s F l a s h A p r 0 1 , 2 0 1 4
After viewing outcomes of the company’s new merchandise software from the previous year, BonTon will be emphasizing more on best-selling items and popular departments, including ladies footwear, outerwear, and plus-size active wear. By adding inventory to areas of strong sales, this will increase future store productivity and inventory investments. The addition of more private brand merchandise, including Ralph Lauren and Michael Kors and COACH are expected to drive sales instore as well as through e-commerce. “We expect e-commerce growth to continue to outpace the total company as we enhance our assortment and customer engagement on this side,” says Brendan Hoffman, CEO and President of Bon-Ton. (Seeking Alpha) With 5 percent of overall sales coming from online in fourth quarter 2013, the company is experiencing continual e-commerce growth. (Seeking Alpha) To better satisfy e-commerce customers, the company announced the early 2015 opening of new fulfillment center in Columbus, OH, providing expanded inventory and shipping space and improved operational efficiency. The 743,000-square-foot location will oversee e-commerce functions currently taking place at four smaller locations. (Lancaster Online) “We’re very excited about the new fulfillment center in the Columbus area that we announced last week. In response to the rapid growth in our e-commerce business, we’re taking this step to ensure extraordinary service to our customers,” said Hoffman. (Seeking Alpha)
Duane Reade tests weather-based mobile promotion March 20, 2014 | FierceRetail http://www.fierceretail.com/story/duane-reade-tests-weather-based-mobile-promotion/201403-20 Duane Reade is testing a new mobile app that will alert customers about impending weather and send them offers based on the forecast. Duane Reade has teamed up with Poncho, a personalized weather-forecasting service that sends users relevant weather updates via text or email, to offer the service. Users will receive weather alerts that include messages for sufferers of seasonal allergies with special notifications on days when the pollen count is particularly high. On these days, Duane Reade will send discount offers that can be used for specified allergy-relief products available in Duane Reade stores.
Burger King adds mobile payments March 20, 2014 | FierceRetail http://www.fierceretail.com/story/burger-king-adds-mobile-payments/2014-03-20 Burger King (NYSE: BKW) is updating its mobile app to allow customers to pay for their meals using a smartphone. The app will be rolled out to U.S. locations next month, reports Bloomberg. Payment values will be tracked via a virtual card within the app which customers can use to store cash value and pay for items in stores. Customers will also be able to use the app to redeem coupons and view nutrition facts.
11 | S u t h e r l a n d I n s i g h t s R e t a i l N e w s F l a s h A p r 0 1 , 2 0 1 4
The new move is an attempt to target millenial shoppers who are more comfortable using mobile technology. Burger King has been testing a few other tech initiatives, including a website, bkdelivers.com, that allows users to order online and have a burger and fries delivered to their doorsteps. The BK Delivers website and mobile app was launched in 2012 with service to the Washington, D.C.-area and later expanded to 13 states. Mobile payment systems are in place at several fast-food and quick-service restaurants. Starbucks has been the industry leader in the category, with about 1 in 10 purchases in its shops made with a mobile device. Last summer, CEO Howard Schultz revealed that the company was ringing up 2.1 million mobile payment transactions each week. Dunkin Donuts (NASDAQ: DNKN) recently upgraded its mobile payment and points system. In November, the company revamped the app which rewards customers by providing points for every dollar spent. Once members have accrued 200 points, they get a free medium beverage. Additionally, the DD Perks Rewards app allows customers to pay via their smartphone, send gift cards to others, and locate stores using a GPS feature. Dairy Queen last year also introduced a mobile-payment app that uses check-ins—rather than an onscreen bar code or a contactless NFC signal—to authenticate the customer and allows them to pay for their order.
Meijer app expands functionality March 20, 2014 | Supermarket News http://supermarketnews.com/marketing/meijer-app-expands-functionality Meijer said Thursday it has added features to its mPerks digital coupon program that allow customers to store digital receipts in a single place and detail exactly how much they've saved by shopping at the Grand Rapids, Mich.-based retailer. The company said it is “among the first” retailers to provide interactive spending and saving information to customers. The new features are available for subscribers who enable the digital receipts option on their accounts and enter their mPerks ID each time at checkout. "Customers who enjoy our everyday low prices and take advantage of mPerks can really see how their savings are adding up and better recognize the overall impact Meijer makes toward stretching family budgets," said Michael Ross, VP of customer marketing and emerging technology. While paper receipts will still print at checkout for all customers, digital receipts will appear 15 minutes after a purchase, and savings graphs on mPerks accounts will update every 24 hours. Once the features are enabled, users will be able to track how much they have saved in a "Receipts & Savings" section of mPerks. Pie graphs break down savings into various categories and also display overall savings. Meijer launched mPerks in 2010. The program allows customers to view and clip digital coupons, create and check items on a shopping list, earn savings from reward programs, among other features.
12 | S u t h e r l a n d I n s i g h t s R e t a i l N e w s F l a s h A p r 0 1 , 2 0 1 4
Strategy Toys R Us goes back to basics March 31, 2014 | FierceRetail http://www.fierceretail.com/story/toys-r-us-goes-back-basics/2014-03-31 For Toys R Us, the future lies not in high-tech product offerings or flashy new omnichannel efforts, but in going back to basics. Research, collaboration and improving the in-store experience are among the retailer's highest priorities following a disappointing year. Toys R Us lost approximately $1 billion for the year ended Feb. 1, its first loss since 2008. Comparable store sales declined 5 percent in the U.S. and 3.3 percent internationally. To get back on track, the retailer is focusing on making stores easier to shop, adjusting inventory levels to improve in-stocks, improve the online shopping experience and better leverage its loyalty program, said CEO Antonio Urcelay, during a media event in New York. It was Urcelay's first such event since the 17-year Toys R Us veteran stepped into the top post in late 2013, following the retirement of Gerald Storch in February. The retailer has been meeting with suppliers and listening to shoppers to come up with what Urcelay calls the "Tru Transformation." Stores will be remodeled, speed of checkout addressed, in-store services improved and the pricing policy simplified. Toys R Us also plans to unveil a new prototype later this year. But the retailer is suffering from a number of wounds, some self-inflicted and some the result of outside influences. Toy industry sales are flat overall and much has shifted to online retailers such as Amazon, while Walmart continues to dominate the category in the omnichannel space. The lackluster video game category has also hurt the retailer. Additionally, the birthrate, which has been in decline since 2008 as millennials wait until later to have children for a variety of economic reasons, and shift from traditional toys to consumer electronics haven't done Toys R Us any favors. Can Toys R Us survive? According to Urcelay, the process will be slow. "We are conservative on our assumption," he told MarketWatch. "We don't want to over-promise. We are trying to do few things and be realistic. We aren't planning for tremendous results."
13 | S u t h e r l a n d I n s i g h t s R e t a i l N e w s F l a s h A p r 0 1 , 2 0 1 4
CARREFOUR focuses on feedback March 21, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88216 At the E-commerce One to One forum in Monaco, Carrefour’s Head of E-commerce, David Schwarz, stated that customer comments will be at the heart of retailer’s repositioning of its online operation, Clubic reports. The retailer currently gathers user comments via the SaaS Bazaarvoice platform, Schwarz revealed. The tool was invaluable as about 90% of shoppers have higher trust in fellow customer comments than in traditional marketing ploys, said Schwarz. This thinking is akin to the Carrefour Panel Test displayed on the retailer’s private label standard line instore. Regarding the 10% negative feedback, if they are constructive, they are used to improve product or services. Today, Carrefour displays some 35,000 customer recommendations on its website and hopes to pass the 100,000 milestone very shortly. 70% of this feedback came from e-mails sent after transactions were made. The next idea to gain quick volumes of shopper feedback was to seek them through bricks and mortar outlets as "opinion gathering at our hypermarkets is actually extremely similar to those from the web”. The SaaS Bazaarvoice tool will enable the retailer to identify problems early in order to avoid them becoming issues. Carrefour also hopes to eventually create online communities gathered around interests such as baby products or gourmet food. What are the next steps? Schwarz is convinced of the worth of shopper feedback. After non-food, his aim is to extend this to grocery, even if Carrefour’s management is divided on the subject. Another long-term research field would be to cross-reference feedback with individual stores.
BJ's Wholesale adds same-day delivery with Instacart March 21, 2014 | FierceRetail http://www.fierceretail.com/story/bjs-wholesale-adds-same-day-delivery-instacart/2014-03-21 BJ's Wholesale Club has teamed up with Instacart to provide a range of grocery items available for delivery in the Philadelphia area. BJ's joins Whole Foods (NASDAQ: WFM), Trader Joe's, Costco (NASDAQ: COST) and Safeway (NYSE:SWY) in offering fresh food items through Instacart's same-day service. The collaboration with BJ's comes just one month after Instacart launched in Philadelphia. The delivery service has seen rapid growth since its launch in 2012, with more service areas added in Chicago and plans to expand in the San Francisco Bay area by the end of 2014. Partnering with BJ's makes for an interesting combination, considering that the warehouse club charges its members $50 to $100 each year for a membership. Instacart customers will not have to pay annual fees, but can still take advantage of the discounted bulk items the club offers via Instacart's business account perks. Instacart provides the same service for Costco, also waiving the membership fee for purchases.
14 | S u t h e r l a n d I n s i g h t s R e t a i l N e w s F l a s h A p r 0 1 , 2 0 1 4
Instacart is powered by software that connects customers to existing grocery stores and a small army of people who have signed up to be independent shoppers. Shoppers place their orders online and Instacart delivers them in as little as an hour or at a scheduled time. While Instacart sets its own prices, which may vary from those seen in grocery stores, and users can't take advantage of a store's daily sale prices, regular coupons or store loyalty cards for discounts, it can be a big convenience for those with busy schedules or commuters without vehicles.
SEPHORA boxes clever March 20, 2014 | Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88188 French beauty store operator Sephora (LVMH) has established a co-operation with beauty box supplier Glossybox. In the current box, French subscribers can find a selection of private label and branded products described as the latest must-haves available at Sephora. Beauty box schemes have become an essential feature of many H&B retailers. Walgreens, Douglas, dm and Target have all introduced their own versions of this inexpensive marketing tool. AS Watsonaffiliate Rossmann is currently in the process of launching a version. Sephora is not following some competitors’ example of having its own branded box to promote private labels among bloggers and other beauty enthusiasts. By partnering with an established provider instead, it will be able to position its private labels as brands in their own right. In addition, it will be able to reach potential new shoppers already sensitive to beauty trends.
Supervalu streamlines wholesale operations March 20, 2014 | Supermarket News http://supermarketnews.com/retail-amp-financial/supervalu-streamlines-wholesale-operations Supervalu, Minneapolis, said Thursday it is reducing its independent business organization from three regions down to two to reduce operating costs. The company said it will operate with an East and West region, with the East region, based in Mechanicsville, Va., headed by Kevin Kemp and the West region, based in Hopkins, Minn., headed by Bill Chew. Kemp is president of the company's existing eastern region, while Chew is president of what is currently called the Midwest/Southeast region, based in Pleasant Prairie, Wis. Kemp and Chew will report to Janel Haugarth, EVP of Supervalu and president of independent business and supply chain services. Supervalu provides wholesale supply and other services to 1,834 independent stores, in addition to operating its retail supermarket and Save-A-Lot divisions. The company said the East region will encompass approximately 800-plus stores, and the West region approximately 1,000. “This new independent business organization will streamline the organization and reduce operating costs while continuing to drive sales growth with current and prospective customers,� Supervalu said in a news release.
15 | S u t h e r l a n d I n s i g h t s R e t a i l N e w s F l a s h A p r 0 1 , 2 0 1 4
“The changes also take into consideration the company’s ongoing commitment to delivering excellent value, service and customer programs and offerings that meet the rapidly changing needs of its independent grocery store customers nationwide.� Supervalu said it anticipates the changes will result in a reduction of its workforce by approximately 200 positions throughout the independent business regional teams. After consolidating and eliminating 80 positions, the company said it will need to fill 120 open positions, for which impacted employees will be able to apply.
16 | S u t h e r l a n d I n s i g h t s R e t a i l N e w s F l a s h A p r 0 1 , 2 0 1 4