RETAIL NEWS FLASH May 15, 2014
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 9 Technology .......................................................................................................................... 14 Strategy .............................................................................................................................. 18
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Sales & Marketing TARGET explores social synergies May 14, 2014 |Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88752 Target has joined a handful of other US companies, including Gap, lululemon and athletica Inc., as Pinterest continues to test ads on its image-sharing social media platform. During the past year, Pinterest – conscious not to disrupt the user experience – has been testing how users react to ads that appear in search results and category feeds. At present, ads do not show up in a user’s main feed after log-in. Pinterest is now expanding the test to include paid advertisements called Promoted Pins on its network. It has been reported that Pinterest has asked for between USD1-2 million spending commitment from advertising partners. Among US retailers, Target is considered one of the more active and innovative users of social media, as evidenced by its Cartwheel launch and subsequent shopper uptake and its use of instore Pinterest pins promotions. So it only makes sense for Target to take a further step of paid advertisements in the form of Promoted Pins.
Amazon Extends Sunday Delivery to 15 Additional Cities May 08, 2014 |Kantar Retail http://www.kantarretailiq.com/ContentIndex/PublicNewsDisplay.aspx?id=627744&key=%2FU5j9J npd%2FpvrmLTw1k5hA%3D%3D Amazon has added 15 cities to the list of those that are now eligible for Sunday delivery. The retailer first launched the program in Los Angeles and New York in November 2013. The cities that can now receive Sunday delivery include the following: •
Austin, TX
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Cincinnati, OH
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College Station, TX
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Columbus, OH
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Dallas, TX
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Houston, TX
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Indianapolis, IN
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Lexington, KY
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Louisville, KY
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New Orleans, LA
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Oklahoma City, OK
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Philadelphia, PA
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San Antonio, TX
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Shreveport, LA
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Waco, TX
The expansion speaks to the retailer’s focus on fulfillment and providing convenience for shoppers. Since Sunday delivery launched, millions of packages have been delivered on Sunday to Amazon shoppers. Amazon and the U.S. Postal Service plan to continue to roll out Sunday delivery to a large portion of the U.S. population this year. To participate, Amazon customers can simply add any of the millions of eligible items to their cart and see the Sunday delivery promise at checkout when available in their region.
SUBWAY looks for 8,000 domestic outlets May 07, 2014 |Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88677 Subway has revealed an ambitious goal to add 7,000-8,000 domestic outlets in the next 10 years, reports Bloomberg. In addition, the US sandwich specialist is to expand its menu with the company testing hummus as a topping, as it seeks to maintain its appeal among health-conscious consumers. Hummus is being trialled at about 1,000 stores as an additional topping. Subway’s proposed expansion and menu modification trials are taking place as competition intensifies among US fast food chains. Planet Retail believes the target of 8,000 domestic stores in the next 10 years is far too ambitious and highly unlikely given the fiercely-competitive US market. There is still room for growth for the brand. However, not to the tune of 8,000 stores. Hummus, on the other hand, is likely to see popular uptake as it is perceived as healthier than many other offerings, thus appealing to the growing numbers of health-conscious consumers.
B&M accelerates expansion May 06, 2014 |Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88655 B&M Bargains intends to expand its estate from 373 to 800 stores, targeting 50 new outlets a year, The Grocer reports. The UK discount variety retailer is also looking to expand its presence in southern England, starting with 10-15 outlets this year in areas as far apart as Essex and Somerset. Such expansion will be supported by an 800,000 square foot (74,300 square metres) distribution centre – exact location as yet unknown - scheduled to open in 2017.
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This news is hardly surprising as discounters across the country seem to be putting their foot on the gas with regards to expansion. Such retailers have been booming in recent years given the recession and the subsequent shift in consumer attitudes towards bargain hunting and value shopping. However, B&M has certainly set itself an ambitious target. Planet Retail wonders if there will be significant enough demand to support an estate of such a size.
Tesco hits back at discount stores with instore ‘pound shop’ areas May 06, 2014 |Express http://www.express.co.uk/finance/personalfinance/474377/Tesco-hits-back-at-discount-storeswith-instore-pound-shop-areas THE UKs biggest supermarket giant Tesco has decided to hit back at the big pound stores by launching 100’s of “Pound Shop” areas in many of its biggest stores across the UK, taking a swipe at the big pound stores such as Poundland and Pound World. Tesco has already launched in about 60 stores but has plans to roll this out to over 300 in the coming weeks. Get ready to see a point of sale marketing blitz at the tills next time you are in Tesco which they are planning to do to support the launch, and you could genuinely find some good bargains too with some items being sold for as little as 50p, I have heard that the range will in the main be made up from non-food items such as, washing up liquid, detergents, kitchen tissues and health and beauty products, which are all great products for stocking up on when prices are low as they have a very long shelf life. Tesco Pound Shop buying manager Paul Bangs said it wanted to ensure shoppers had access to a ‘vastly improved range’ of discount products. He said in a letter to suppliers: ‘This is a project that Tesco is taking very seriously. As a new concept, implementation will be absolutely key to success.’ This isn’t the first time Tesco have tried to take on the pound stores at their own game, as the Grocer Magazine pointed out, Tesco tried something similar in 2009 when they dedicated a whole aisle to selling lines at £1.00 or less. But beat the likes of Poundland and Pound World at their own game won’t be easy, the one thing that they can do which Tesco cant is dedicate a whole store to selling items at £1.00 or less, and that what we as customers love about pound stores, we don’t have to look for the bargains as they are all around us the minute we walk in the store. Maybe Tesco should look a little closer to home before taking on the pound stores, as the real threat seems to be coming from the likes of Aldi and Lidl, both of the discount supermarkets seem less concerned about taking on the pound stores and more at ease offering deals on things like Aberdeen Angus steaks for £5.00 each as well as selling award winning cheeses and coffee. Whoever wins the price wars remains to be seen, but one thing is for sure it can only mean prices will continue to get lower and lower, whether you shop in Tesco, Aldi or any of the big four you should see new deals popping up every week if not every day, but as I always say make sure you do your research before you hit the shops to find out where the best deal is for you.
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Nordstrom Rack Launches Integrated Online and Mobile Shopping Site May 05, 2014 |Multi Channel Merchant http://multichannelmerchant.com/news/nordstrom-rack-launches-integrated-online-and-mobileshopping-site-05052014/ Seattle-based Nordstrom, Inc., (NYSE: JWN) has launched nordstromrack.com, a new e-commerce site and mobile app, built on a shared platform with HauteLook, Nordstrom’s flash sale business. The new site gives customers access to shop Nordstrom Rack merchandise alongside HauteLook flash sale events. The site experience is designed to offer an integrated way for customers to browse and buy merchandise either through a persistent Nordstrom Rack offering of on trend apparel, accessories and shoes at 30-70 percent off regular prices or through limited-time, limited-inventory flash sale events powered by HauteLook. Customers are able to shop both sites through a single log-in, shopping cart and can combine items into one easy checkout. “Our customers have been telling us for some time they want to shop the Rack online and with the launch of nordstromrack.com they can now shop the Rack whenever they’d like,” said Jamie Nordstrom, president of Nordstrom Direct. “We were able to leverage the talent of our HauteLook team to build a fast, seamless online and mobile experience - an important milestone in supporting our priorities to meet our customers’ expectation of how they like to shop today.” “By bridging together Nordstrom Rack and HauteLook, we’re giving our customers one of the largest selections of online, off-price merchandise available today,” said Terry Boyle, president of Nordstromrack.com and HauteLook. “We’re committed to expanding and deepening our offering as we continue to learn more about how our customers want to shop nordstromrack.com. We believe that ultimately this robust offering will empower our customers to shop online, off-price with confidence.” Additional features include: •
Two unique iTunes storefront and app icons that lead to a seamless mobile shopping experience for customers to browse and shop both sites within a shared app
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Easy Returns: 90 day return window to any Nordstrom Rack store or by mail
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Free shipping for orders over $100
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Enrolled customers earn points in the Nordstrom Rewards Program
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Integrated iOS experience for the iPhone and iPad
The company plans to introduce additional features and functionality with subsequent updates to the site.
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MARKS & SPENCER revamps online proposition May 02, 2014 |Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88629 Marks & Spencer has announced the latest phase of its online offensive. Following the relaunch of M&S.com in February (the business is keen to stress the website is now its flagship store, not Marble Arch on Oxford Street), the next phase will focus on converting customers who shop its stores but do not buy from it online. More than 34 million customers shop with M&S overall and about one-fifth of these (6.7 million) are already omni-channel shoppers - customers who shop on both channels spend GBP55 (USD90) a year more than those who do not, according to M&S estimates. Some 8.3 million do not shop online anywhere, leaving a residual 19 million for potential conversion. The latest offensive will be supported by a marketing campaign. Initiatives for the month-long campaign include interactive shop windows in some major stores, a 16-page tabloid-sized supplement available in store, social media activity with some 2.5 million contacts, and sponsored features in Condé Nast titles Vogue, Glamour, GQ and House & Garden. There were other interesting nuggets to emerge from yesterday’s senior management briefing. Laura Wade-Gery, Executive Director of Multi-Channel & E-Commerce, claimed the online business was profitable already and would be as profitable as the stores business within three years (but we would always question how this is measured). Online-only price promotions were being used as part of the recruitment strategy. So far, 1.45 million customers have registered on the new site, compared to approximately 6 million registered on the old site. In particular, the business is keen to promote click & collect services and it revealed that a third of customers coming into stores to collect items buy another product while they are there.
WALMART test-drives Drive grocery May 02, 2014 |Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88620 The Drive concept, a form of click & collect where shoppers collect online orders at a specified pickup point, is gaining traction across Europe. Walmart US has observed the concept via its UK-based subsidiary Asda and rival Ahold’s online operation Peapod in the US. Now Walmart is cautiously dipping a toe in the domestic waters. The company has submitted a proposal to local officials in Bentonville, AR to build its first standalone grocery pick-up depot there, according to Arkansas media The City Wire. In recent presentations, Walmart US CEO Bill Simon has hinted that its 11-store test of a drive-through pick-up option in Denver, CO has been well-received by shoppers. Trialing a standalone Drive seems the logical next step.
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Reportedly, the 15,000 square feet (1,400 square meter) facility will serve as a mini-fulfillment center, stocking some 10,000 fresh and dry grocery SKUs. Shoppers will be able to order online and schedule a pick-up time. When they arrive, they place a call and a Walmart associate brings the order out to the car. This is another in a string of click & collect fulfillment tests underway at Walmart US as it seeks ways to bridge clicks and bricks. Expect more as well. Walmart’s MO is to work until it ‘gets it right’ and then roll out in rapid fashion. One thing is certain: the retail giant does not intend to cede any grocery share to the likes of Amazon and others making waves in the online grocery waters - at least not without a fight.
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Finance DIXONS RETAIL, CARPHONE WAREHOUSE merger confirmed May 15, 2014 |Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88770 The boards of Carphone Warehouse (CPW) and Dixons Retail have reached agreement on the terms of a recommended all-share merger of CPW and Dixons. As a result, each Dixons and CPW shareholder will hold exactly 50% of the new Dixons Carphone entity. The merger will be conditional on, among other things, approval of CPW and Dixons shareholders and relevant antitrust clearances being received. Dixons shareholders will vote at the end of June 2014. As expected, Sir Charles Dunstone, CPW Chairman, will become the Chairman of Dixons Carphone. Sebastian James, Dixons CEO, will become CEO of the new entity, while Andrew Harrison, CPW CEO, will become Deputy CEO. Humphrey Singer, CFO of Dixons, will become CFO of Dixons Carphone. The combined group said it expects to achieve integrated mobile retailing and procurement synergies, together with cost savings, of at least GBP80 million (USD133 million) on a recurring basis. These savings are expected to be delivered in full from the financial year 2017/18. The boards of CPW and Dixons expect Dixons Carphone to deliver these synergies progressively, achieving almost half of them in financial year 2015/16. The back-end savings the company will achieve are reason enough for the merger to pass. However, at the front end, benefits will be reaped too. CPW’s vast high street network will be a boost for convenience in terms of click & collect services offered by the new entity. In addition, as consumers increasingly move towards owning interconnected devices – from smartphones to TVs to (future) washing machines – operating as a company which sells ‘all’ – consumer electronics a and telecoms - places Dixons Carphone at the forefront of future CE retailing.
WHOLE FOODS MARKET enjoys robust Q2 May 07, 2014 |Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88670 The US-based organic grocer Whole Foods Market has reported sales of USD3.3 billion for its second quarter ended 13 April. This is up 10% from USD3.02 billion in the previous year period. Net income remained flat to USD142 million. Co-CEO John Mackey said: “As we continue to innovate and evolve at a fast pace, we are confident in our ability to gain market share and expect our sales to approach USD25 billion over the next five years.”
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ALIBABA finally files to go public May 07, 2014 |Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88688 Alibaba gave investors a closer look at the scale and growth of the Chinese e-commerce juggernaut in an initial public offering (IPO) prospectus filed on Tuesday. It is the first step in what could be the largest technology debut in history. The e-tailer listed revenue of USD5.66 billion and net income of USD2.85 billion for the nine months ended December 31, in a filing than ran to more than 330 pages. It also had a sizeable cash hoard of USD7.88 billion as of the end of last year. Alibaba is taking a relatively cautious approach to its listing. It said in official filings that it is seeking to raise USD1 billion at its initial public offering – much less than Facebook or Twitter sought on their respective market debuts. Some of that restraint comes amid concerns that investors have fallen out of love with technology stocks and may be wary of a major online retailer. There is no information on whether it will list on the New York Stock Exchange or Nasdaq, but it is understood to be leaning towards the former of the two trading platforms.
Supervalu seen back on track May 06, 2014 |SupermarketNews http://supermarketnews.com/retail-financial/supervalu-seen-back-track Investments in pricing, a shift toward decentralization, and efficiencies in wholesaling are beginning to pay dividends for the reconstituted Supervalu, analysts said. The Minneapolis-based company, which last year returned to its former incarnation as a threelegged entity — wholesale distributor, regional chain operator and Save-A-Lot licensor — showed some signs that it was starting to turn its business around after struggling for years under the weight of its 2006 Albertsons acquisition. “We continue to believe management is implementing the right strategies as the company works to improve business fundamentals,” said Scott Mushkin, an analyst with Wolfe Research, New York, after Supervalu posted gains in identical-store sales and a $26 million profit for the fourth quarter of its fiscal 2014. “With ID sales improving, Supervalu’s efforts at both retail and Save-A-Lot appear to be gaining traction.” He cautioned, however, that EBITDA would likely continue to be pressured as Supervalu continues to invest in lower pricing to drive sales volume. John Heinbockel, an analyst with Guggenheim Securities, New York, said he was “encouraged” by Supervalu’s performance in the quarter.
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“It is clear to us that meaningful, but manageable, price investments will be made in [calendar] 2014, funded by a variety of sources,” he said in a research note. “Importantly, though we expect these investments will prevent EBITDA from rising, we believe that a sufficiently deliberate approach should limit the downside case while also better positioning the company to return to growth at some point in [calendar] 2015.” Fourth-quarter Save-A-Lot net sales were $999 million — up 3.1%, including a 2.1% gain in ID sales. ID sales for corporate stores within the Save-A-Lot network were up 3.5%. Operating earnings in the Save-A-Lot division were down about 12% compared with adjusted operating earnings a year ago, to $43 million, which Supervalu attributed in part to incremental price investments. Supervalu said licensees have begun adopting some corporate programs into their stores, including new directional sign packages, more prominent displays of price investment items, and newly introduced horizontal merchandising sets. In a multi-store test with one large licensee group, Supervalu said it has “seen high single-digit sales increases after working with the Save-A-Lot team on store resets and improved store merchandising.” “We have seen great success with the changes made in both meat and produce, and I believe we still have upside as we further look at new merchandising opportunities and focus on even stronger instore execution,” Sam Duncan, Supervalu’s president and CEO, said in a conference call with analysts. Heinbockel of Guggenheim Securities noted that Save-A-Lot has been selectively altering the prices of highly visible items “in order to have a greater impact on customer perception.” “In addition, some basic blocking and tackling concepts, such as stronger endcap support for promotional items, are being migrated to licensed from corporate stores,” he said. He also said the limited-assortment chain will be adding more seasonal and close-out general merchandise items in larger Save-A-Lot locations. In the retail food division, which includes Supervalu’s own more traditional supermarkets, fourthquarter sales were $1.09 million, up 0.2%. Adjusted operating earnings more than doubled to $38 million, compared with adjusted operating income of $14 million a year ago. Supervalu attributed the gains primarily to cost reduction initiatives. “After we rolled out the decentralized operating model in the first quarter, our banners moved through the second and third quarters, learning and refining the relationship between promotional investment, expected sales, and the appropriate levels of inventory,” Duncan said. “We still have work to do in our retail segment, but our fourth-quarter results demonstrated the team’s ability to develop promotional plans that create the desired customer behavior which we believe will help us drive sustainable sales growth in fiscal 2015.” Supervalu also has launched a new program in its Cub Foods stores that gives customers the ability to download digital coupons directly to their phone or Cub Rewards card. “This is another important step for us in the digital space, and we’ll be watching and reviewing this program closely to determine how to leverage this capability across the rest of the company,” Duncan said.
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Total sales in the quarter, which ended Feb. 22, were up 1.4%, to $3.95 million. Net income from continuing operations totaled $40 million, after $8 million in one-time charges, compared with a loss from continuing operations of $174 million — including $149 million in one-time charges — in the year-ago fourth quarter.
SPEEDWAY sales up in Q1 May 06, 2014 |Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88664 US convenience store operator Speedway saw merchandise net sales rose 1.5% to USD722 million for the first quarter ended 31 March. This compares to USD711 million in the first quarter of 2013. Comparable store sales increased 5.3% while income from operations decreased to USD58 million against USD67 million during the same period in 2013.The decrease in income was primarily due to the result of higher merchandise gross margin, partially offset by higher expenses associated with an increase in the number of stores operated.
DOMINO’S PIZZA delivers a great Q1 May 02, 2014 |Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88617 Domino’s Pizza has recorded revenue growth of 8.7% to USD453.9 million for its first quarter ended 23 March. Same-store sales were strong - 4.9% domestically and 7.4% internationally - making it the 81st consecutive quarter of international same-store sales growth. During the quarter the company added 102 outlets to its portfolio, 5 domestically and 97 internationally. Domino’s continues to close company-owned stores in the US while re-open outlets under franchise. This brings the total restaurant count to 10,988. Net income climbed 17.6% to USD40.5 million, driven by domestic and international same-store sales growth and global store count. The company is continuing a positive sales momentum both at home and internationally, encompassing strong growth in same-store sales and store count. Another great reflection of progress for Domino’s is its soaring domestic performance, the envy of many US foodservice chains. Planet Retail sees Domino’s innovations in technology (such as mobile ordering) as a fundamental reason as to why it is currently so successful.
Publix comps up 4% in Q1 May 02, 2014 |SupermarketNews http://supermarketnews.com/retail-financial/publix-comps-4-q1 Publix Super Markets said its profits were up 4.8% in the first quarter, to $493.7 million, driven by comparable-store sales gains of 4%.
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Net income at the Lakeland, Fla.-based retailer totaled $493.7 million on sales of $7.8 billion, a topline increase of 4.1%. Publix estimated that its sales were negatively impacted by 1.3% due to the later Easter this year. The Easter holiday occured in the first quarter of 2013, but in the second quarter of the current fiscal year. “I’m proud of our Publix associates who continue to deliver premier customer service,” said Publix CEO Ed Crenshaw, in a statement. “Our good operating performance is a result of their hard work and dedication.” Effective May 1, Publix’s stock price increased from $30.15 per share to $32.50 per share. Publix stock is not publicly traded and is available only to current Publix employees and members of its board of directors.
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Technology Macy’s boosts Web sales, email marketing with predictive analytics May 14, 2014 |FierceRetailIT http://www.fierceretail.com/retailit/story/macys-boosts-web-sales-email-marketing-predictiveanalytics/2014-05-14 Macy’s (NYSE: M) has implemented new technology into its e-commerce website that will help the company better understand customer buying behavior and optimize email and website marketing campaigns. The retailer has partnered with SAP InfiniteInsight to design a new system that provides predictive analytics for its online business. The technology will help Macy’s understand the likelihood of customers spending on the Web in a certain product category. The technology has been in effect for the past three months, during which Macy’s has seen an eight to 12 percent increase in online sales. This has been achieved with the help of more targeted emails to registered users and visitors to the macys.com website. SAP InfiniteInsight replaces the classic model creation process, which is manual, repetitive and prone to human error. Macy’s is now able to build 20 predictive models in a few weeks, 15 times the productivity of the previous solution. This helps Macy’s further its omnichannel initiatives, building out online capabilities as sales continue to shift to digital platforms. E-commerce sales in 30 retail categories will reach $294 billion in 2014 alone and $414 billion by 2018, according to Forrester Research’s latest online retail forecast. Macy’s has already made significant investments in brick-and-mortar stores and fulfillment centers to accommodate a growth in e-commerce. In March, Macy’s said it was planning to extend click-andcollect to 675 stores by the end of spring. The retailer rolled out its in-store pick-up program to 500 Macy’s stores and 36 Bloomingdale’s stores last fall. Macy’s, in December, also revealed plans to spend more than $170 million to construct a new 1.3 million-square-foot direct-to-consumer fulfillment center in Oklahoma. The facility is being built to support the retailer’s online sales and get more goods to e-commerce customers, particularly in the central and southern regions of the United States. The facility should be up and running by April 2015, with the first orders shipping in summer 2015.
Alibaba’s $37B mobile domination is coming to the US May 13, 2014 |FierceMobileRetail http://www.fierceretail.com/mobileretail/story/alibabas-37b-mobile-domination-comingus/2014-05-13 Alibaba processed some $37 billion in mobile payments last year and the Chinese online retailer is coming to America, hoping to apply that same digital prowess in the U.S. market.
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Alibaba has submitted its initial public offering papers—the online giant plans to file its IPO in the United States—and mobile is clearly a big strength for the retailer. Mobile is mentioned a whopping 254 times in the papers, according to Mobile Commerce News. China has the world’s largest mobile Internet user base with 500 million users as of December 31, 2013, Alibaba noted in the filing. Mobile accounted for more than 76 percent of all mobile sales in China in 2013. That’s roughly $37 billion. In China, electronic sales are split fairly evenly between mobile and computer, but Alibaba is determined to grow the channel. And mobile usage is expected to increase, driven by the growing adoption of mobile devices. “We are the leader in mobile commerce in China in terms of mobile retail (sales). Our Mobile Taobao App has been the most popular mobile commerce app in China by mobile MAUs every month since August 2012, according to iResearch.” “We intend to build upon our strength in mobile commerce to develop a broader spectrum of consumer offerings, such as location-based services, O2O (online to offline) services and digital content, in order to fulfill our vision of becoming central to the everyday lives of our customers,” the company writes. “We will also continue to look for ways to increase our mobile user base and engagement through strategic alliances, investments and acquisitions.” The company has been on a spending spree in the United States, investing in technology companies as varied as ride-share service Lyft to search engine Quixey and online shopping site ShopRunner. Like Walmart Labs, the investments and acquisitions buy coveted top talent, not just companies. And most have a mobile component. Establishing an online retail presence and shopper trust in the U.S. could be a lengthy process, but not out of the question. Alibaba’s online sales in 2013 were more than Amazon (NASDAQ:AMZN) and eBay (NASDAQ:EBAY) combined. Just what Alibaba will do with the billions in extra capital expected to be raised in its IPO is uncertain, but more mobile investment will surely follow.
SHOP DIRECT leaps ahead in virtual visualisation May 09, 2014 |Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88724 Shop Direct, the multi-brand online retailer, has formed commercial partnerships with two Israeli start-ups – Cimagine Media and yRuler - after successfully trialling their new e-commerce technologies with customers at its in-house user experience lab. Cimagine Media’s augmented reality (AR) app allows customers to visualise how items of furniture would fit into and look in their homes without the need to print off a reference marker and place it on the floor – as in similar apps such as that pioneered by IKEA – making it the first truly markerless AR app. yRuler has developed technology enabling Shop Direct consumers to try products virtually before they purchase by comparing them to a model matching their size or to items they already own. The platform works with a wide variety of items, from handbags and wallets to furniture, appliances and toys.
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Following six months of in-house customer testing, both the Cimagine and yRuler platforms will now move to live site testing across Shop Direct’s six digital department store websites. This is testament to Shop Direct’s innovative approach to technology, and will go some way to solving the concerns over tangibility when it comes to items such as furniture and clothing. In seeking out ways of enhancing the online experience, and experimenting with new technology to achieve this, Shop Direct is once more setting the benchmark for other online retailers.
iBeacons trialled at DUANE READE May 06, 2014 |Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88649 Walgreens will be trialling iBeacons at 10 of its New York Duane Reade stores, the retailer has revealed at the Mcommerce Summit in New York. The Bluetooth beacons will alert users who have downloaded the retailer’s new couponing app of coupons they have saved that are valid in the store that they enter. Walgreens believes this minimises the risk of shoppers forgetting about coupons they have an interest in. According to Tim McCauley, Senior Director of Mobile Commerce at Walgreens, the iBeacons might be installed in stores company-wide if the pilot proves successful. Judging by the myriad of smartphone apps launched by Walgreens in the last couple of years, it is obvious the retailer is making a real effort bridging its instore experience with its digital channels. The company is now looking into different ways of tailoring its digital coupons by leveraging loyalty programme data. A sensible second way to use that same data would be to send personalized offers to shoppers instore, which makes the iBeacons even more alluring for the retailer.
Supermarket smart phone? Tesco says yes. May 06, 2014 |The Christian Science Monitor http://www.csmonitor.com/Innovation/2014/0506/Supermarket-smart-phone-Tesco-says-yes Following the successful release of the Hudl tablet from, UK supermarket chain Tesco says it is dipping another toe in the electronics game. This time, expect a smart phone before the end of the year. Tesco is soon to join the ranks of Samsung, Apple, Google, and other major mobile companies. The UK supermarket chain says it will release a smart phone by the end of the year. A smart phone from a supermarket? Certainly seems strange, but not for Tesco which released a tablet last September that has proved very popular with its broad customer base. Will a smart phone capture the same interest, especially in a crowded mobile world? Technology experts seem to think the supermarket is onto something. Tesco CEO Philip Clark announced the new phone on Tuesday on BBC radio. Though the details are sparse (no specs, specific timeline, or prices have been announced), Mr. Clark says the device will run on Android software and will operate similar to high-end smart phones such as the Samsung Galaxy S5.
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The phone will also come pre-loaded with Tesco apps, which could include features previously seen on Tesco’s tablet, the Hudl, such as Club Card TV, online banking, and shopping applications. In the meantime, Clark did say that the Hudl would get an update in September. The Tesco tablet has already sold more than half a million devices since it was released in September. Some believe this predicts success for the future Tesco tablet as well. “With the original Hudl tablet, Tesco [made] a robust, fun and cheap tablet that did everything most people needed,” writes Matt Warman, head technology writer at The Telegraph. “It has appealed to a market that simply didn’t think an iPad was for them. The brand appeal of Tesco cuts through the idea that only a certain kind of geek is interested in the latest gadgets.” “Whatever the marketing hype, it is unlikely that it will offer the features of an iPhone or an HTC One,” he adds. “But it will be in what remains the nation’s most popular supermarket and it will be cheap enough to appeal.” However, everyone isn’t so sure, especially when looking at the broader smart phone market. “Mobile producers like Samsung, HTC, Apple and Sony have spent years developing high-tech devices, that include a long list of features to accommodate even the most demanding tech users out there,” says Markos Zachariadis of Warwick Business School to Forbes. “Breaking into that category directly and gaining the slightest market share is going to be very difficult for new starters like Tesco.” But Tesco isn’t the only company pulling up a chair at the smart phone table. A phone from online retailer Amazon has been rumored for months, and last week photos were leaked that seem to confirm this suspicion.
AHOLD unleashes DC automation May 06, 2014 |Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88653 Ahold in the Netherlands is to invest in an automated Albert Heijn distribution centre for nonperishables. The facility is scheduled for completion by the end of 2017 and is to be built at the company’s Zaandam regional DC. The automation systems, provided by Vanderlande Industries, will handle almost all non-perishables on their journey through the facility. Ahold states that by using the system it will enjoy increased ease of meeting customer demand as more products can be processed in the same space. Additionally, the retailer will be able to reduce transport costs due to optimised stacking. Finally, Albert Heijn will enjoy the benefits of smoother instore shelf replenishment as SKUs will be delivered by product group. With Ahold focusing on growing its Dutch Albert Heijn network, the retailer needs to support new stores with added DC muscle. Alongside building out its DC network (a new logistics hub in Nieuwegein was also recently announced) it makes sense for Ahold to employ automation technology to make the existing sites more efficient. Albert Heijn announced its intention to begin automating its regional DCs through a jointlydeveloped solution with material handling specialist Nedcon in 2012. The DC in Zaandam is therefore likely to be followed by further automation implementations at other Dutch sites.
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Strategy Amazon And Leading Italian Bookstore Chain Giunti Launch A New Bookstore Model For Italy May 09, 2014 |The Street http://www.thestreet.com/story/12703473/1/amazon-and-leading-italian-bookstore-chaingiunti-launch-a-new-bookstore-model-for-italy.html Amazon and leading Italian bookstore chain Giunti announced an exclusive agreement to launch an innovative bookstore model, blending digital and physical reading together, and offering Giunti customers access to a wide selection of Amazon products. Italian customers will be able to discover and buy Kindle e-readers in 170 Giunti al Punto bookstores by the end of the summer. Giunti booksellers will help readers find print or digital books they want that are most suitable for their literary tastes. Starting today through December 31, 2014, Giunti al Punto customers will receive five free Kindle books of their choice, from the Giunti catalog when they buy any Kindle e-reader at the Giunti al Punto bookstores. Later this year and with the support of Amazon, Giunti al Punto bookstores will open an online shop where its customers will have access to a vast selection of books, physical media products and toys available on Amazon.it. Customers of the Giunti online shop will benefit from a great customer experience from Amazon logistics, delivery and customer service. Moreover, for every purchase on the new Giunti online shop, customers will also earn Giunti points, which can be converted into vouchers and spent in the Giunti al Punto physical bookstores. “Giunti, with its centenary history, and its bookstore chain, among Italy’s best known and loved, continue to innovate on behalf of its customers,” said Jorrit Van der Meulen, Vice President, Amazon Kindle. “Amazon and Giunti share the same core values: customer obsession and a passion for reading. With its 170 bookstores, Giunti is the ideal partner for Amazon to help Italian readers discover the benefits of digital reading.” “The Giunti-Amazon agreement represents a milestone to advance the bookstore experience for our customers and promote reading in Italy, in any possible format,” said Martino Montanarini, Giunti CEO. “The Kindle ecosystem is truly appreciated by customers all over the world, thanks to this agreement, we can make the largest possible selection of books, digital innovation and eBooks available to our customers, adding the Italian Kindle Store and the Giunti online shop to the traditional Giunti al Punto offer.”
Alibaba, ShopRunner to Team Up for China Service May 07, 2014 |The Wall Street Journal http://online.wsj.com/news/articles/SB10001424052702304655304579548343863161338 Customers Will Have Goods From U.S Retailers Delivered to China in 10 Days or Less
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Alibaba Group Holding Ltd. is preparing a new U.S. foray ahead of its planned initial public offering. The Chinese e-commerce retailer later this summer will join with ShopRunner Inc. to enable Chinese consumers to shop on the Web directly from U.S. retailers that otherwise sell little into the world’s largest market. Under the program, the more than 300 million users of Alibaba’s affiliated PayPal-like Alipay payments service will be able to order goods directly from the U.S. websites of ShopRunner partners and have them delivered to China in 10 days or less. In the U.S., ShopRunner offers unlimited two-day shipping from about 100 retailers, including Neiman Marcus Group Inc., GNC Holding Inc. and Lord & Taylor, for a $79 annual fee. Alibaba invested $206 million in ShopRunner last year; the investment valued ShopRunner at $600 million. Alibaba on Tuesday filed paperwork for a highly anticipated IPO that could value the company at more than $100 billion, expected later this year. The program gives Alibaba another way to deliver merchandise to Chinese consumers, particularly from retailers that are reluctant to use its Tmall.com marketplace site. Tmall offers goods from more than 2,000 foreign brands, but has developed a reputation among some retailers for steep discounting, potentially hurting their brand image as well as their margins. “Retailers, particularly luxury and health and beauty brands, are deeply concerned with their reputation,” said Fiona Dias, chief strategy officer for ShopRunner. “This partnership with Alibaba ensures that Chinese consumers know that what they are getting is authentic and comes at the same price as what Americans are paying.” An Alibaba spokeswoman declined to comment. Ms. Dias declined to name which retailers would initially be involved, but said the program would be focused on categories like luxury fashion, baby products and health and beauty goods. “If we don’t invest overseas and bring ideas and people from outside China, we will become a much more closed company, and that’s not good,” Alibaba Executive Vice Chairman Joe Tsai said in a February interview. Michael Chui, a McKinsey Global Institute partner, who has studied e-commerce in China, said, “Anything that would ease the regulatory barriers to selling into China will probably make sense to a number of retailers.” U.S. retailers attracted by the size of the Chinese market have had mixed success. Neiman Marcus recently said it would sell its 44% stake in fashion website Glamour Sales Holding Ltd. after failing to gain much traction hawking luxury goods without discounts. Neiman continues to sell directly to China through its international website. ShopRunner offers an alternative for retailers who don’t want to list their merchandise on Amazon.com Inc. or eBay, while still offering speedy shipping. The company takes a commission of less than 10% for each sale it helps facilitate, an arrangement that will remain for sales to China through the Alibaba partnership, said Ms. Dias.
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German retailer Metro AG plans to have 50 wholesale stores in India by 2020 May 06, 2014 |The Economic Times http://m.economictimes.com/industry/services/retail/german-retailer-metro-ag-plans-to-have50-wholesale-stores-in-india-by-2020/articleshow/34690018.cms German retailer Metro AG plans to have 50 wholesale stores in India by 2020 and make the country one of its ‘focus expansion’ markets alongside Russia, China and Turkey. “India has always been an important future growth market of Metro and we have seen continuous like-for-like growth recently in India. Now we decide to inject extra momentum into our expansion course there to operate 50 distribution centers by 2020,” Olaf Koch, chairman of the management board of Metro AG, said in a statement on Monday. The Dusseldorf-based company was the first global player to enter the cash-andcarry wholesale segment in India, back in India. It currently operates 16 outlets in the country. Rajeev Bakshi, managing director at Metro Cash & Carry India, said, “We have been relentlessly consolidating our market position by translating our nuanced understanding of the customer into daily practices, tailored projects and innovations. This provides a firm foundation for us to switch our expansion into the fast lane now.” India opened up its multibrand retail market to foreign companies with several riders, including a free hand to state governments to shut their doors on such chains, in September 2012. But so far UK firm Tesco is the only international supermarket chain to have decided to come in. Cash-and-carry, like retail, is a long-haul business with a longer break-even period. Even though foreign operators including Metro, American giant Walmart Stores Inc and French firm Carrefour report growing sales at their stores, companies are still not making money even after years of operations. Metro Cash & Carry India had made a loss of Rs 272 crore on a turnover of Rs 2,521 crore on an annualised basis for the fiscal year ended March 2013.
@WalmartLabs Acquires Adchemy May 06, 2014 |MediaPost http://www.mediapost.com/publications/article/225189/walmartlabs-acquires-adchemy.html Walmart’s innovation lab and research and development center, @WalmartLabs, has made its 12th acquisition with Adchemy. The latest acquisition, among the largest in terms of headcount, highlights the importance of on-site search. Financial terms were not disclosed. Through the acquisition, the company acquires more than 60 talented technologists from the product search company Adchemy. They will join Walmart Global eCommerce, adding critical engineering and analytics expertise to teams in various areas, including search, data analytics and marketing. Adchemy founder and CEO Murthy Nukala will not join the new team. Walmart is acquiring Adchemy for talent and several of technologies including Adchemy’s expertise in semantic search, product search, relevance, ad targeting tools and analytics, per a spokesperson.
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Adchemy was founded in 2004 in Foster City, Calif. Over the years, it has built an “impressive team” that will help Walmart transform the shopping experience for millions of shoppers, explains Jeremy King, SVP and CTO at @WalmartLabs. Walmart Global eCommerce has been building an Internet tech company inside the world’s largest retailer, known for forging new paths with technology. In addition to Target, Walmart was one of the first retailers to use radio frequency identification technology to track the movement of consumer product goods from supplier warehouses to its distribution center and onto store floors. Among the team joining @WalmartLabs are Rohit Deep, former vice president of engineering and chief architect and engineering Lead at WebEx; Ethan Batraski, who served as vice president of products, formerly the head of search innovation at Yahoo; and data scientist Esteban Arcaute, head of research, who holds a PhD from Stanford and also worked at Yahoo. @WalmartLabs has hired more than 1,000 associates during the past year, with many gained through acquisitions. The company’s internal search engine, built by the Kosmix team, took nine months. It led to a 20% increase in search conversion. Inkiru technology was integrated within four months after the team joined. Today, their predictive analytics platform is applied to 100% of its transactions, per the company.
H-E-B talks online, plant plans May 05, 2014 |Planet Retail http://www.planetretail.net/NewsAndInsight/Article/88637 Texas-based grocery operator H-E-B is seeking to expand its distribution network and manufacturing capacities along with its online services, reports the San Antonio Business Journal. For 2014, the retailer is focused on launching an online grocery service. The retailer plans to open at least three new manufacturing plants over the next few years. Bob McCullough, Senior Vice President of Manufacturing, told the San Antonio Manufacturers Association Expo that H-E-B expects to commence online operations this year. This would seem to put it in competition with services such as Amazon Prime Pantry and Google Shopping Express, which couriers products from Target and Costco. McCullough added that H-E-B was considering development of a milk-processing plant in Mexico, a snack-production facility in the US and at least one more manufacturing site, as yet undefined. H-E-B currently operates 337 stores in Texas and northeastern Mexico with sales of more than USD18 billion. It produces and processes food products at more than a dozen manufacturing facilities, including three dairy plants.
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Amazon Partners With Twitter To Make It Easier To Buy Stuff Through Twitter May 05, 2014 |Business Insider http://www.businessinsider.in/Amazon-Partners-With-Twitter-To-Make-It-Easier-To-Buy-StuffThrough-Twitter/articleshow/34692426.cms Amazon and Twitter have teamed up for a new service called #AmazonCart, that lets users add products that they see on Twitter to their Amazon shopping cart without leaving the app. Here’s how it works: First, you have to link up your Twitter and Amazon accounts in Amazon’s social settings section. Then, if you’re checking out Twitter and you spot a tweet with an Amazon link for something you want, all you have to do is reply to that tweet with the hashtag “AmazonCart” for that item to be placed in your shopping cart. The item will be saved, but not ordered until you actually review your cart and you’ll also receive a response tweet from @MyAmazon to tell you whether the product was successfully added (or whether it was out of stock). The idea for Amazon is that if you can instantaneously save a product that you’re interested in, you’re more likely to buy it, since otherwise you might forget or not want to go through the hassle of leaving Twitter to find it on Amazon’s site. The more convenient and seamless the transaction process is, the more likely that you’ll go through with it.
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