Author: Helen Thomas

January 23, 2014

Hudson’s Bay Company plans to launch a new mobile shopping application for both Hudson’s Bay and Lord & Taylor.  HBC is partnering with Pounce, a consumer-facing mobile app, to integrate traditional media with m-commerce, providing customers the opportunity to purchase merchandise displayed in print media using tablets and smartphones.  According to Pounce, it is the only Hudson’s Bay and Lord & Taylor approved mobile app that allows customers to instantly buy products seen in print by simply scanning an image.

The app launched in Canada today, just ahead of this year’s Olympic Winter Games.  Hudson’s Bay is the official apparel sponsor of the Canadian Olympic and Paralympic Teams for the Sochi 2014 Olympic and Paralympic Winter Games, and the upcoming ads for HBC Olympic apparel will be the first to display the Pounce mobile app opportunity for customers.  The app also launched in the United States for Lord & Taylor.

“Our goal with this initiative is to complement traditional media with popular mobile technology, and Pounce creates the opportunity to combine offline and online channels in a seamless way,” said Michael Crotty, chief marketing officer for HBC. “Pounce’s unique capability is a natural fit as we roll-out and grow our omnichannel strategy for HBC.”

“Traditional media is a successful marketing channel, but consumers also want the power of instant purchasing,” said Avital Yachin, CEO of Pounce.  Our technology turns static print into digital storefronts, satisfying the instant purchasing needs of consumers.”

Hudson’s Bay customers can download Pounce free on iOS devices via the Apple App Store.

Source: Retailing Today

January 15, 2014

In an effort to expand its service capabilities, Lowe’s has partnered with Porch.com, a home improvement network that connects homeowners with over 1.5 million professionals.  The partnership aims to connect customers with home improvement pros for nearly any project outside of what Lowe’s currently offers as part of its installation services. 

“Working with Porch is another great example of how Lowe’s supports our customers throughout every step of the home improvement journey,” said Jay Rebello, VP new business development and corporate innovation at Lowe’s.  “By partnering with Porch, Lowe’s can help our customers achieve their home improvement dreams by providing them with the confidence of knowing who their neighbors have used successfully, and benefit our professional customers by providing them greater opportunities to grow their business.”

“For millions of people, the home is the biggest investment of their lives.  Home improvement projects are an essential part of owning or renting a home – finding the right professionals should be easy, delightful, and connected,” said Matt Ehrlichman, CEO of Porch.  “Now, Lowe’s customers can not only buy high-quality products to make their home improvement projects a reality, they can connect directly with local professionals their neighbors have used.”

To be introduced at Lowe’s stores, the partnership will make its first touchdown in 139 stores in the Carolinas and the Seattle metro area.

Source: Retailing Today

January 24, 2014

Dillard’s, Inc. announced today that it will make a significant contribution of more than $1 million to local chapters of Ronald McDonald House Charities.  This donation was made possible through the sale of Dillard’s exclusive Southern Living Christmas Cookbook.

For the sixth time, Dillard’s offered a special custom edition of the Southern Living Christmas Cookbook to benefit RMHC.  This Exclusive, 288-page hardbound cookbook is filled with fabulous holiday recipes, color photos, menus, decorting tips and entertaining ideas.

With this year’s contribution, Dillard’s has donated more than $11.4 million to local RMHC chapters to support the Ronald McDonald House program since 1994.  “Over the past 20 years, Dillard’s has developed a strong and lasting bond with our local RMHC chapters,” said Denise Mahaffy, Vice President.  “The work they do every day to bring comfort to children and families inspires us and makes the sale of the cookbooks an enormous source of pride and satisfaction.”

Every night, Ronald McDonald Houses offer comfort, care, hope and healing to more than 8,000 families of seriously ill children.  And after a long day at the hospital, there is nothing more comforting than for these families to be welcomed with a home-cooked meal prepared by loving volunteers.

“The Dillard’s Southern Living Christmas Cookbook and the funds raised highlight how a good meal can provide sustenance and strength to families caring for a hospitalized child,” said J.C. Gonzalez-Mendez, president and CEO, RMHC.  “We are immensely grateful for the ongoing generosity of Dillard’s and its customers.  Together, we are able to give sick children the best medidine of all – their famillies.”

For more information, visit www.rmhc.org and www.dillards.com.

January 23, 2014

February 2014 is projected to be the coldest in four years and drier than last year for the U.S. as a whole.  Much colder year-on-year trends will be widespread at the start of the month, especially across the Central U.S.  The axis of colder temperatures shifts to the Northern Tier of the U.S. by the second week of the month.  Much colder trends early in the month will help to clear remaining winter merchandise.  A taste of spring arrives in the Deep South in retail week three, making this a favorable time for categories such as sun care, apparel and cold beverages.  After a very dry January along the West Coast, the ridge of high pressure in the West will finally break down allowing for rain and snow to return to the West.  The first two weeks of February will yeild the greatest risk of snow in the Mid-Atlantic and Ohio and Tennessee River Valleys; weeks one, two and four will be the highest risk for the Northwest.

Source: Retailing Today, Weather Trends International

January 23, 2014

The Conference Board Leading Economic Index for the U.S. increased 0.1 percent in December to 99.4, following a 1.0 percent increase in November, and a 0.1 percent increase in October.

“Despite month-to-month volatility in the final quarter of 2013, the U.S. LEI continues to point to gradually strengthening economic conditions through early 2014,” said Ataman Ozyildirim, Economist at The Conference Board.  “The LEI was lifted by its financial components in December, but consumer expectations for business conditions and residential construction continue to pose risks.”

“This latest report suggests steady growth this spring, but some uncertainties remain,” said Ken Goldstein, Economist at The Conference Board.  “Business caution and concern about unresolved federal budget battles persist, but the better-than-expected holiday season might point to sustained stronger demand and could put the U.S. on a faster growth track for 2014.”

The Conference Board Coincident Economic Index for the U.S. increased 0.2 percent in December to 108.1, following a 0.4 percent increase in November, and a 0.1 prcent increase in October.

The Conference Board Lagging Economic Index for the U.S. increased 0.3 percent in December to 121.2, following no change in November, and a 0.3 percent rise in October.

Source: The Conference Board

January 22, 2014

Hudson’s Bay Company’s CFO Michael Culhane is reportedly taking a leave of absence from the company.  Assuming the CFO role will be Donald Watros, who on February 1 will be stepping into his new role as president of the company.

HBC did not provide further details on Culhane or the CFO position.

Culhane has been CFO of Hudson’s Bay Comapny since February 2009.  He is responsible for financial planning, profit improvement, accounting, treasury, income taxes, audit, legal and credit/loyalty marketing.  He also served as CFO and EVP of Lord & Taylor from 2004 to 2009 and held other executive financial positions with the May Department Stores Comapny from 1997 to 2004.

The company has been restructuring its leadership so it can focus on managing and growing HBC’s presence in North America, as well as its expanding portfolio of brands.

Source: Retailing Today

The National Retail Federation recapped Holiday 2013 in a PR… and sales were pretty good.  It remains to be seen however how profits fair due to heavy discounting.  The next quarterly filings by retailers will tell that tale. 

Holiday Retail Sales Come in at NRF Expectations
Sales Increased 3.8% to $601.8 Billion; NRF Projected 3.9% to $602 Billion

NEW YORK, January 14, 2014 – Severe winter weather did not dampen December retail sales as shoppers took advantage of heavy promotions and last-minute deals. According to the National Retail Federation – the world’s largest retail trade association – December retail sales, which exclude automobiles, gas stations and restaurants, increased 0.4 percent seasonally adjusted month-to-month, and 4.6 percent unadjusted year-over-year.

Total holiday retail sales, which include November and December sales, increased 3.8 percent to $601.8 billion, which was in line with NRF’s projected forecast of 3.9 percent and $602.1 billion. In addition, non-store holiday sales, which is an indicator of online and e-commerce sales, grew 9.3 percent to $95.7 billion.

“Despite facing a truncated holiday season, severe weather, and shaky consumer confidence, retailers rose to the challenge and executed their strategies with proven success,” NRF President and CEO Matthew Shay said. “Today’s holiday sales numbers are a testament to a resilient industry that knows what their customers want, when they want it and how they want to get it. Considering that retail sales are an important barometer when measuring the overall health of our national economy, this report provides a level of true optimism that the recovery is picking up steam, and once again, retail leads the way.”

December retail sales, released today by the U.S. Census Bureau, which include categories such as automobiles, gasoline stations, and restaurants, increased 0.2 percent seasonally adjusted month-to-month, and 4.1 percent adjusted year-over-year.

“Retail sales have been volatile all year and the holiday shopping season was no exception,” NRF Chief Economist Jack Kleinhenz said. “Solid job growth in the months of October and November led to a more-confident consumer and healthy holiday shopping season for many retailers. While economic and policy uncertainties remain, the economy seems set for steady growth in the New Year.”

“Undoubtedly, some of the increase came at the expense of margin. Retailers are still stressed and a long-term promotional environment may actually hurt the bottom line,” said Kleinhenz.  “As consumer confidence grows, there will be less need for retailers to heavily promote and discount their offerings.”

Other findings from the December retail sales report include:

• Building material and garden equipment and supplies dealers stores’ sales decreased 0.4 percent seasonally-adjusted month-to-month yet increased 4.2 percent unadjusted year-over-year. 
• Clothing and clothing accessories stores’ sales increased 1.8 percent seasonally-adjusted month-to-month and 4.7 percent unadjusted year-over-year. 
• Electronics and appliance stores’ sales decreased 2.5 percent seasonally-adjusted month-to-month and 1.5 percent unadjusted year-over-year. 
• Furniture and home furnishing stores’ sales decreased 0.4 percent seasonally-adjusted month-to-month yet increased 5.0 percent unadjusted year-over-year. 
• General merchandise stores’ sales were flat seasonally-adjusted month-to-month and flat unadjusted year-over-year. 
• Health and personal care stores’ sales increased 0.6 seasonally-adjusted month-to-month and 5.9 percent unadjusted year-over-year. 
• Nonstore retailers’ sales increased 1.4 percent seasonally-adjusted month-to-month and 14 percent unadjusted year-over-year. 
• Sporting goods, hobby, book and music stores’ sales decreased 0.6 percent seasonally-adjusted month-to-month yet increased 5.8 percent unadjusted year-over-year.

NRF is the world’s largest retail trade association, representing discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and Internet retailers from the United States and more than 45 countries. Retail is the nation’s largest private sector employer, supporting one in four U.S. jobs – 42 million working Americans. Contributing $2.5 trillion to annual GDP, retail is a daily barometer for the nation’s economy. NRF’s This is Retail campaign highlights the industry’s opportunities for life-long careers, how retailers strengthen communities, and the critical role that retail plays in driving innovation. www.nrf.com 

January 2, 2014

Economic activity in the manufacturing sector expanded in December for the seventh consecutive month, and the overall economy grew for the 55th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report on Business.

The PMI registered 57 percent, the second highest reading for the year, just 0.3 percentage point below November’s reading of 57.3 percent.  The New Orders Index increased in December by 0.6 percentage point to 64.2 percent, which is its highest reading since April 2010 when it registered 65.1 percent.  The Employment Index registered 56.9 percent, an increase of 0.4 percentage point compared to November’s reading of 56.5 percent.  December’s employment reading is the highest since June 2011 when the Employment Index registered 59 percent.  Comments from the panel generally reflect a solid final month of the year, capping off the second half of 2013, which was characterized by continuous growth and momentum in manufacturing.

*A PMI in excess of 42.2 percent, over a period of time, generally indicates an expansion of the overall economy.  Therefore, the December PMI indicates growth for the 55th consecutive month in the overall economy, and indicates expansion in the manufacturing sector for the seventh consecutive month.  The past relationship between the PMI and the overall economy indicates that the average PMI for January through December (53.9 percent) corresponds to a 3.7 percent increase in real gross domestic product (GDP) on an annualized basis.  In addition, if the PMI for December (57 percent) is annualized, it corresponds to a 4.6 percent increase in real GDP annually.

Source: Institute For Supply Management

The growth of e-commerce and the omni-channel retail strategy appears to be having a significant impact on retail store foot traffic according to ShopperTrak.   An article in today’s WSJ highlights the issue  “Retailers got only about half the holiday traffic in 2013 as they did just three years earlier, according to ShopperTrak, which uses a network of 60,000 shopper-counting devices to track visits at malls and large retailers across the country. The data firm tracked declines of 28.2% in 2011, 16.3% in 2012 and 14.6% in 2013.”  Urban Outfitters Inc. CFO Frank Conforti commented on an investor conference call “The reality is, we just don’t see that changing.”

These changes in store foot traffic may explain part of the reason retailers like Home Depot Inc, Gap, and Sears Holdings are closing stores or cutting back new store openings.  As fewer consumers show up to walk the isles retailers do not need as much retail space.  Only 44 million square feet of retail space opened in the 54 largest U.S. markets last year, down 87% from 325 million in 2006, according to CoStar Group, Inc., a real-estate research firm.

Bon-Ton Stores Inc. (BONT) slashed its expectations for the year and the retailer warned poor winter weather in the majority of its markets led to lower traffic and hampered promotional events tied to the Christmas holiday.

The retailer, which operates 273 department stores with locations in the Northeast, Midwest and upper Great Plains states, said the disappointing results could be blamed on bad weather.

“We are disappointed with the deceleration in sales during December, particularly given the strong start to the holiday season beginning with Black Friday and extending through the early part of the month,” President and Chief Executive Brendan Hoffman said.

Bon-Ton said promotional events on key weekend days leading up to and continuing after Christmas were affected by the poor weather.

The company now expects same-store sales for the fiscal year to fall about 3.5%, worse that the November estimate of growth between 1.5% to 2.5%.

As a result, Bon-Ton warned per-share results for the year could range between a 15-cent profit to a 30-cent loss, down from the prior estimate of earnings between 15 cents to 75 cents. As recently as May, Bon-Ton had guided for full-year profit as high as $1 a share.

Shares, inactive in after-hours trading, closed down 2% to $15.50 on Friday.

source: WSJ, John Kell