RETAIL NEWS FLASH 30th August 2013
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 6 Technology .......................................................................................................................... 10 Strategy .............................................................................................................................. 12
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Sales & Marketing ARCADIA GROUP Topshop to treble presence in the USA 28 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85595?WTrss_f=Daily+News+Summary&WTrss_a=A RCADIA%2bGROUP%2bTopshop%2bto%2btreble%2bpresence%2bin%2bthe%2bUSA&WTrss_ev=a Arcadia Group plans to treble the presence of its Topshop brand in the US, reports the Scotsman. Topshop teamed up with the Seattle-based Nordstrom chain last year to bring Topshop to 14 of its branches, and it was announced yesterday that a further 28 departments are in the pipeline. The expansion is to start next month with the number of Topman departments to rise from ten to 18. Pete Nordstrom, the US group’s President of Merchandising, said: “Through this collaboration, we hoped to attract new customers to both our women’s and men’s apparel businesses and create excitement in our stores and online.”
TOYS ‘R’ US expands price matching to online retailers 27 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85583?WTrss_f=Daily%20News%20Summary&WTrs s_a=TOYS%2B%25e2%2580%2598R%25e2%2580%2599%2BUS%2Bexpands%2Bprice%2Bmatching %2Bto%2Bonline%2Bretailers&WTrss_ev=a Toys ‘R’ Us has announced that it has enhanced its Price Match Guarantee ahead of the holiday season and will now match prices of online retailers as well as bricks and mortar competitors. The company says it will now match prices from Walmart.com, BestBuy.com, buybuyBaby.com and Amazon.com as well as matching US competitors’ instore advertised prices. Prices are matched after deducting any Toys 'R' Us coupons and all other offers from the price. In addition, shipping charges are calculated and factored into the cost of a competitor’s online price before a price match is completed. Toys ‘R’ Us has been impacted by intense competition as customers increasingly seek out better deals online.
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WALMART unveils gadget trade-in scheme 21 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85509?WTrss_f=Daily%20News%20Summary&WTrs s_a=WALMART%2Bunveils%2Bgadget%2Btrade-in%2Bscheme&WTrss_ev=a Walmart US has introduced a new Gadgets to Gift Cards program. Shoppers can trade in older electronic gadgets for a Walmart eGiftCard, which can be used for instore purchases or at Walmart.com. Acceptable items for trade-in include cell phones, tablets, MP3 players, game media and other miscellaneous gadgets such as cameras, e-Readers, game consoles and GPS devices. The process is conducted entirely online at walmart.cexchange.com. Users select products to trade in and identify whether or not the gadget is in working condition. Walmart then provides a pre-set trade-in value which the user can choose to accept. For example, an iPhone 4 8GB in working order is worth USD135 whereas the same item in non-working condition can fetch USD45. Once a user accepts the offer, they can choose to have an eGiftCard immediately credited to them or wait until the items have been received and verified. The program allows users to trade in multiple products in a single transaction. Users then are required to send in the items within 10 days. Walmart supplies a free shipping label.
United Changes Name to The United Family 19 August, 2013 | Supermarket News http://supermarketnews.com/retail-amp-financial/united-changes-name-united-family LUBBOCK, Texas — United Supermarkets here said Monday it is changing its company name to The United Family to reflect both its multiple store banners and its history of family ownership. As part of the branding initiative, The United Family has formed an internal Brand Stewardship Committee to help define the organization’s brand portfolio, which consists of four retail banners: United Supermarkets, Market Street, Amigos and United Express, along with its subsidiary operations, R.C. Taylor Distributing, Praters and Llano Logistics. “This vital step of defining, documenting and evolving our brand strategies will help ensure the entire company understands what each of our brands stands for. Our goal is to create more distinct and consistent brand identities so we stay relevant to current and future Guests,” said Monica Schierbaum, The United Family senior marketing director, who is leading the branding initiative. The first visible signs of the brand initiative are the newly redesigned logos. Market Street was introduced at the Jan. 9 opening of new location in Lubbock. A new logo for the United Supermarkets banner was introduced at the company’s Snyder location in early August. New logos for Amigos and United Express will be rolled out in the coming months, the company said.
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“Our business has become more and more competitive, with new stores and formats offering very compelling alternatives for food shopping,” said Robert Taylor, chief executive officer. “It’s vital to our future success that we let current and future guests know who we are and what we stand for. We have to make sure we offer our guests things that are relevant to them and their shopping needs.” Now in its 97th year of operation, The United Family — formerly United Supermarkets LLC — is a Texas-based, family-owned grocery chain operating 57 stores in 30 markets across north and west Texas.
JOHN LEWIS diversifies into pet category 19 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85482?WTrss_f=Daily%20News%20Summary&WTrs s_a=JOHN%2BLEWIS%2Bdiversifies%2Binto%2Bpet%2Bcategory&WTrss_ev=a John Lewis is branching out into the pet category. The move was reportedly encouraged by online feedback from customers. The retailer is to sell pet products after shoppers said they wanted to buy bedding, toys, gifts and other accessories. The UK department store operator will offer 253 different items after pet-related terms frequently appeared as some of the most searched-for terms on its website.
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Finance AUCHAN publishes sales up 4% in H1 30 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85640?WTrss_f=Daily+News+Summary&WTrss_a=A UCHAN%2bpublishes%2bsales%2bup%2b4%2525%2bin%2bH1&WTrss_ev=a French retailer Auchan published a 4% increase in turnover excluding petrol to EUR29.8 billion (USD39.27 billion), in H1 ending 30 June 2013. France and Western Europe hampers the retailer’s results, declining 0.9% and 2.9% respectively, while CEE and Asia bolster performance, soaring 14%. President Vianney Mulliez commented “Our efforts in terms of pricing, improvement of the assortment and buying performance alongside mastery of costs should enable us to face a macro economic situation from which we do not expect improvements”. This strategy seems to have delivered, as the retailer announced EBITDA grew 4.4% compared to H1 2012 to EUR1.15 billion (USD1.51 billion) thanks to the progression of commercial margin from 22.7% to 23% this semester alongside contained current operating expenditure. Operating income rose 14.8% to EUR583 million (USD768.22 million) while the groups shares soared 33.7% to EUR317 million (USD417.71 million). This enabled the retailer to continue to sustain investments, up 5.8% to EUR654 million (USD861.77 million), 38% of which allocated to Western Europe. The retailer’s debt soared 21% due to the significant acquisition of Metro Group’s Real hypermarket in CEE, but is contained to 49% of equity.
SEARS endures second-quarter declines 23 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85555?WTrss_f=Daily%20News%20Summary&WTrs s_a=SEARS%2Bendures%2Bsecond-quarter%2Bdeclines&WTrss_ev=a Sears Holdings posted a net loss of USD194 million for its second quarter ended 3 August. The company had a net loss of USD132 million in the year-earlier period. Revenues totaled USD8.87 billion, compared to USD9.47 billion last year. Domestic comparable store sales declined 1.5%. Kmart comparable store sales slipped 2.1%, Sears Domestic edged down 0.8% and Sears Canada declined 2.5%. The US-based broad line retailer blamed the revenue falls primarily on the effect of having fewer Kmart and Sears full-line stores in operation, which accounted for approximately USD210 million of the decline. Revenues were also impacted by approximately USD195 million attributable to the separation of the Sears Hometown and Outlet stores from Sears Holdings, which occurred in the third quarter of 2012. Lower domestic comparable store sales accounted for approximately USD100
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million of the decline. The Shop Your Way loyalty scheme, which enables shoppers to earn rewards on qualifying purchases, generated more than 65% of revenues at Sears Domestic and Kmart during the quarter, compared to over 55% last year. The sears.com and kmart.com online businesses grew more than 20% over the prior year. Eddie Lampert, Sears Holdings' Chairman & CEO, commented: "While the increase in Shop Your Way promotional activity and member redemptions resulted in a meaningful increase in our costs, it demonstrates that our members are deepening their engagement with our programme which will allow us to further accelerate our transformation. At the same time, we recognize how important it is to improve the profitability of our company and I am disappointed that we did not deliver a better result."
DOLLAR TREE marches on in Q2 23 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85570?WTrss_f=Daily%20News%20Summary&WTrs s_a=DOLLAR%2BTREE%2Bmarches%2Bon%2Bin%2BQ2&WTrss_ev=a The relentless growth of Dollar Tree has continued in Q2. The US-based value operator reported a 3.7% increase in comp store sales for the 13 weeks ended 3 August. This was despite lapping a challenging comp last year (+4.5%) and marked acceleration on Q1 (+2.1%). In addition to organic growth, the company continued to expand physically, opening 81 stores (net of two closures) and expanding/relocating 32 more in Q2 alone. Total sales grew by 8.8% to USD1.85 billion. Impressively, operating income growth outpaced sales (+9.1% to USD201.3 million). Operating margin improved by 10 bps to 10.9%. The company gave guidance of low to mid-single-digit comp sales growth in Q3 and forecast that full-year sales would be in the range of USD7.85 billion and USD7.97 billion. Commenting on the performance, CEO Bob Sasser stated: "Sales, customer traffic, average ticket, earnings and operating margin all continue to grow. Customers are responding in record numbers to our outstanding values in both discretionary and consumable merchandise categories. Our stores are well stocked with a terrific merchandise presentation for back-to-school and the fall selling season.�
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LOWE’S Q2 lifted by US housing recovery 22 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85526?WTrss_f=Daily%20News%20Summary&WTrs s_a=LOWE%25e2%2580%2599S%2BQ2%2Blifted%2Bby%2BUS%2Bhousing%2Brecovery&WTrss_e v=a Lowe’s saw sales rise 10.3% to USD15.7 billion for its second quarter ended 2 August. Sales were largely driven by the ongoing recovery of the US housing market, boosting same-store sales by 9.6%. Lowe’s net earnings increased 26% to USD941 million over the same period a year ago. Lowe’s and its rival Home Depot both reported earnings that beat analysts’ estimates this week and raised their profit forecasts for 2013. The US-based home improvement retailer now expects that sales in 2013 will grow approximately 5%, with a comparable sales increase of approximately 4.5%. Robert A Niblock, Lowe’s Chairman, President & CEO, said: “Home improvement demand was strong during the quarter, and we capitalised on it with improving execution *…+ We drove a healthy balance of ticket and transaction growth, and delivered solid performance across all product categories.” As of 2 August 2013, Lowe’s operated 1,758 stores in the US, Canada and Mexico, constituting 197.7 million square feet (18.4 million square metres) of retail selling space.
TARGET modest Q2 sales rise amid profit decline 22 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85520?WTrss_f=Daily%20News%20Summary&WTrs s_a=TARGET%2Bmodest%2BQ2%2Bsales%2Brise%2Bamid%2Bprofit%2Bdecline&WTrss_ev=a Target has announced total company sales for the second quarter 2013 increased 4% to USD17.12 billion. The figure was up from USD16.45 billion for Q2 last year. Second-quarter net earnings were USD611 million, down 13.2% from USD704 million a year ago. The fall-off is largely due to expenses related to the US-based general merchandiser’s continued expansion into Canada. In the US, Target reported softer-than-expected comparable store sales of 1.2% in the second quarter as the US economy remains sluggish with many shoppers hesitant to spend. It could be worse, however, since in comparison rival Walmart saw same-store sales at its US stores drop 0.3% during the quarter. Positive comps plus the contribution from four new US stores opened during the quarter (including one CityTarget) led to an overall sales increase of 2.4% for Target US, from USD16.5 billion in Q2 2012 to USD16.8 billion in 2013. The US segment’s second-quarter EBIT of USD1.33 billion was fairly steady with the USD1.32 billion recorded a year ago.
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During the quarter, US REDcard penetration reached 18.7%, up from 12.8% a year ago. The split was fundamentally down the middle with 9.3% being Target credit cards and 9.4% Target debit cards, representing a clear shift toward debit card usage compared with last year. Target’s Canadian segment reported sales of USD275 million for the second quarter 2013. Due to extensive start-up costs, the Canadian segment’s EBIT was –USD169 million. During the quarter, Target opened an additional 44 stores in Canada, bringing its store base up to 68 of 124 stores it plans to open in the country this year. Canadian REDcard penetration is 2.3%. Gregg Steinhafel, Chairman, President & CEO, said: “Target’s second-quarter financial results benefited from disciplined execution of our strategy and strong expense control, off-setting softerthan-expected sales. For the balance of this year, our US outlook envisions continued cautious spending by consumers in the face of ongoing household budget pressures. In Canada, where we are only five months into our market launch, we continue to learn, adjust and refine operations in our existing stores as we prepare to open another 56 stores by year-end.”
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Technology HARRIS TEETER tests mobile payments 28 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85593?WTrss_f=Daily%20News%20Summary&WTrs s_a=HARRIS%2BTEETER%2Btests%2Bmobile%2Bpayments&WTrss_ev=a Harris Teeter is testing mobile payments at a Matthews, NC, location. The US southeast supermarket operator is partnering with technology provider Paydiant to enable shoppers to use the HT Express Pay mobile wallet to pay for groceries ordered online. Users download an app to their iPhone or Android smartphone and payment cards are linked to the wallet. Payment occurs at a handheld mobile point of sale device from within a customer’s vehicle at Express Lane curbside pick-up locations. The mobile wallet platform is intended to eventually be incorporated into Harris Teeter's existing HT mobile application.
DIA rolls out Wincor Nixdorf POS systems in Spain 27 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85587?WTrss_f=Daily%20News%20Summary&WTrs s_a=DIA%2Brolls%2Bout%2BWincor%2BNixdorf%2BPOS%2Bsystems%2Bin%2BSpain&WTrss_ev=a Spanish neighbourhood discounter Dia has installed around 2,000 Beetle/M-II POS systems from Wincor Nixdorf in 1,100 stores, driving the number of outlets with Wincor Nixdorf POS systems up to over 4,000. Dia, which took over all the stores of the former German drugstore chain Schlecker in Spain, commissioned Wincor Nixdorf to integrate the network along with the POS systems in its existing store network within ten days. Wincor Nixdorf will also be providing services to ensure system availability.
LOWE’S updates instore app features 23 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85569?WTrss_f=Daily%20News%20Summary&WTrs s_a=LOWE%25e2%2580%2599S%2Bupdates%2Binstore%2Bapp%2Bfeatures&WTrss_ev=a Lowe’s has updated its mobile app with targeted, instore features to help shoppers find specific items, reports mobilecommercedaily.com. An especial focus of the update was on outlet navigation. Customers can now view the location of any stocked item in a particular store. Once shoppers define a particular store as their primary location, an indicator appears on a product page displaying the
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aisle where the item is stocked. The app also features interactive maps of the store, enabling them to zoom in closer on the required aisle.
TESCO 'Hudl' tablet emphasises retailer's digital drive 20 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85498?WTrss_f=Daily%20News%20Summary&WTrs s_a=TESCO%2B%2527Hudl%2527%2Btablet%2Bemphasises%2Bretailer%2527s%2Bdigital%2Bdrive &WTrss_ev=a Tesco is looking to launch an own brand tablet computer for Christmas, the Sunday Times reports. The tablet will be pre-loaded with music, films and books. It will also feature applications for Tesco’s grocery business and film and music service blinkbox. Tesco has yet to decide how much to charge for the device. According to the reports, the tablet will be similar to Amazon’s Kindle Fire. This currently retails at approximately GBP130 (USD201) in the UK. Stories earlier this year that Tesco had registered ‘Hudl’ as a trademark appear to be confirmed by a Google search under that term leading directly to Tesco Direct’s iPad and Tablets range.
SCHWARZ GROUP Lidl and ALDI SÜD go contactless in UK 19 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85483?WTrss_f=Daily%20News%20Summary&WTrs s_a=SCHWARZ%2BGROUP%2BLidl%2Band%2BALDI%2BS%25c3%259cD%2Bgo%2Bcontactless%2Bi n%2BUK&WTrss_ev=a Lidl UK has completed the roll-out of contactless payment, the Grocer reports. To enable NFC-based payments, the Schwarz Group-owned discounter has installed Ingenico payment terminals in all stores. Fellow German discounter Aldi Süd is currently running a contactless payment trial in several UK stores before deciding on a nationwide roll-out. Contactless payment has been available at Aldi Süd stores in Austria and Slovenia since earlier this year.
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Strategy DOMINO'S plans to open 100 stores in India 27 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85582?WTrss_f=Daily%20News%20Summary&WTrs s_a=DOMINO%2527S%2Bplans%2Bto%2Bopen%2B100%2Bstores%2Bin%2BIndia&WTrss_ev=a Jubilant FoodWorks, the master franchisee of Domino's Pizza is aiming to open 100 new stores in India. The company plans to open the stores by March 2014 to keep pace with high demand in smaller cities and towns. Jubilant FoodWorks plans to invest INR250 crore (USD43 million) in the current fiscal year on store expansion. The company will open an additional 18 Dunkin' Donuts outlets and construct three new factories.
WOOLWORTHS (AUS) buys direct clothing retailer 22 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85528?WTrss_f=Daily%20News%20Summary&WTrs s_a=WOOLWORTHS%2B(AUS)%2Bbuys%2Bdirect%2Bclothing%2Bretailer&WTrss_ev=a Woolworths (AUS) will acquire New Zealand-based womenswear and homewares retailer EziBuy for NZD350 million (USD276.7 million). The purchase of the online and catalogue trader comes as the company expands its home deliveries business. Though based in New Zealand, EziBuy now makes 68% of its sales from Australia, according to a regulatory statement from Woolworths. “This acquisition will provide us with a unique competitive advantage as we continue to develop our multi-option capabilities,'' Woolworths CEO Grant O'Brien said, “We believe the combination of our retail network, EziBuy's direct selling expertise and our respective loyal customer bases is a winning formula for us.’’
SUBWAY picks up the pace in Europe 22 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85529?WTrss_f=Daily%20News%20Summary&WTrs s_a=SUBWAY%2Bpicks%2Bup%2Bthe%2Bpace%2Bin%2BEurope&WTrss_ev=a Subway plans to accelerate European openings, Business Standard reports. The company plans to add as many as 1,000 new locations by 2014. The UK is Subway’s foremost European growth market, with a goal of 2,000 operations scheduled by 2015. The US-based sandwich chain also aims to enter Latvia, Lithuania, Georgia and Ukraine by the end of this year.
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Mike Charest, Assistant Regional Director, said: "Europe is the strongest, fastest-growing international market for Subway outside of North America, and will continue to be. Subway's strategy works for us regardless of economic situation by balancing affordability with high-quality food.”
LOWE’S Orchard Supply acquisition approved 21 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85515?WTrss_f=Daily%20News%20Summary&WTrs s_a=LOWE%25e2%2580%2599S%2BOrchard%2BSupply%2Bacquisition%2Bapproved&WTrss_ev=a Lowe’s has been given the green light for its acquisition of 72 stores from Orchard Supply Hardware. The approval was granted by the US Bankruptcy Court for the District of Delaware. Lowe’s will acquire the Orchard stores for approximately USD205 million in cash, plus the assumption of payables owed to nearly all of Orchard’s supplier partners. The US-based home improvement retailer expects to close the transaction by the end of August. Orchard will operate as a separate, standalone business, retaining its brand and its San Jose headquarters, according to Lowe’s. Lowe’s expects to reach a new customer base in California through the acquisition, as it says that the company is currently underpenetrated in this region. The retailer said it expected to be able to more fully participate in California’s economic recovery.
INDITEX Massimo Dutti eyes India again 21 August, 2013 | Planet Retail http://www.planetretail.net/News/Article/0/85513 Inditex is again said to be looking to enter India via its Massimo Dutti chain. The banner is expected to open stores in the country soon. The chain had announced a joint venture with Tata’s Trent to launch Massimo Dutti stores in India in 2011. However, this move was halted over brand ownership issues. The Indian Foreign Investment Promotion Board (FIPB) subsequently rejected another proposal from the Spanish clothing retail multinational in June 2012. The new proposal for entry is scheduled to be heard at the FIPB meeting on 27 August.
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