Best Buy and The Carphone Warehouse Group (CPW) announced that they have completed their transaction to create a new consumer electronics retail venture in Europe.

• Best Buy paid The Carphone Warehouse GBP1.1 billion (USD2.1 billion) with cash and debt proceeds.
• The effective date of the transaction is June 28, 2008, the end of CPW’s fiscal first quarter.
• As previously announced, the new company is comprised of CPW’s existing retail and mobile service businesses, including more than 2,400 stores in 9 European countries and CPW’s share of existing relationships with Best Buy.
• Carphone Warehouse and Best Buy each own a 50% share in the new company.

Circuit City reiterated that it is "exploring strategic alternatives" to enhance shareholder value, including a merger or acquisition. Independent of the Blockbuster offer, the board will continue to consider all the alternatives to enhance shareholder value.

Circuit City does not plan to make further interim disclosures until the board approves a course of action.

Costco has introduced a more efficient milk container under its Kirkland Signature brand. The jug contains less air and more product, and therefore reduces shipping and storage costs.

Source: WCCO.com 

CVS announced executive changes, including the retirement of Kevin Smith, Senior Vice President (SVP) of Supply Chain and Logistics, at the end of 2008.

• Smith joined CVS in 2000 and during his tenure integrated six new distribution centers.
• Ron Link will replace Kevin Smith. In his capacity as SVO Supply Chain and Logistics, Link will lead the retailer’s logistics division including managing inventory, creating distribution solutions, and providing logistics service to all CVS stores.

Family Dollar reported results for the third quarter ended May 31, 2008. For the quarter, sales increased 2.9% year-over-year to USD1.7 billion.

For the third quarter of 2008:

• Comparable store sales (comps) increased 0.1%.
• Increased average customer transaction (ticket) was offset by decreased traffic.
• Gross margin decreased 30 basis points (bp) year-over-year to 34.6%. The decline was attributed to stronger sales of lower margin consumable goods, partially offset by lower merchandise markdowns.
• Net income increased to USD64.7 million; as a percentage of sales, net income increased 20 bp to 3.8%.

For the year-to-date period, total sales increased 0.3% to USD5.2 billion. It should be noted that the first three quarters of 2007 included one extra week of sales compared to the same period of 2008.

• For a comparable 39-week period, Family Dollar’s comps decreased 0.3% year-over-year.
• Decreased traffic was partially offset by increased ticket.
• Gross margin decreased 50 bp to 33.8%. Increased sales of lower margin consumable goods and higher seasonal markdowns contributed to the gross margin decline.
• Net income decreased to USD180 million; as a percentage of sales, net income decreased 40 bp to 3.5%.
• On May 31, 2008, Family Dollar’s inventories were USD1 billion, a decreased of 0.3% compared to June 2, 2007. Average inventory per store was 3% lower at the end of the third quarter of 2008 than at the end of the same period of 2007.
• Family Dollar spent USD108.9 million on capital expenditures; the company opened 165 new stores and closed 50 stores.

For the fourth quarter of 2008, Family Dollar expects comps to increase 4% to 6% year-over-year, driven in part by increased sales of consumable goods.

Kroger has expanded the voluntary beef recall that was initiated last week at stores in Michigan and central and northern Ohio to include ground beef products in Styrofoam tray packs wrapped in cellophane or purchased from service meat counters in select stores. The expanded recall was prompted by information given to Kroger by the US Department of Agriculture (USDA). Products with a variety of sell by dates are included in the expanded recall, which span the period from May 19, 2008 through July 5, 2008.

The company also announced that it is recalling all Private Selection Natural ground beef sold in 16-ounce packages from self-service meat counters with a sell by date from July 11 through July 21, 2008.

The USDA has identified the supplier of ground beef products linked to E. coli illnesses in Michigan and central and northern Ohio, which were reported between May 31 and June 8, 2008. No additional related illnesses have been reported since that period.

Office Depot is introducing a line of more stylish and fashion-forward backpacks and totes for back to school. The line features exclusive patterns, coordinating colors and themes, and colorful accessories.

Office Depot offers a broad range of back to school needs, including backpacks, technology gadgets, accessories, and environmentally preferable products. Back-to-school products arrive in Office Depot stores the week of July 1, 2008.

Rite Aid reported a 2.5% decrease to USD 2.02 billion in total drugstore sales for the four weeks ended June 28, 2008.

• Same store sales decreased 0.4%, negatively impacted year-over-year by the Brooke Eckerd stores.
• Front-end same store sales decreased 0.2%
• Pharmacy same store sales decreased 0.5%. New generic introductions negatively impacted pharmacy same store sales by 250 basis points (bp); the switch of Zyrtec from prescription to over-the-counter negatively impacted pharmacy same store sales by 60 bp.
• Prescription revenue was 66.5% of total sales; third party prescription sales were 96.4% of pharmacy sales.

Excluding the Brooks Eckerd stores, for the four weeks ended June 28, 2008:

• Same store sales increased 2.6%.
• Pharmacy same store sales increased 2.5%.
• Front-end same store sales increased 2.9%.

Including only the Brooks Eckerd stores, for the four weeks ended June 28, 2008:

• Same store sales decreased 6.2%.
• Pharmacy same store sales decreased 5.4%.
• Front-end same store sales decreased 8.1%.

For the seventeen week year-to-date period:

• Total sales increased 32.3% year-over-year to USD8.61 billion.
• Same store sales increased 0.9%.
• Pharmacy same store sales increased 0.7%.
• Front-end same store sales increased 1.1%.
• Prescription revenue was 67.3% of total sales; third party prescription sales were 96.3% of pharmacy sales.

On June 28, 2008 Rite Aid operated 4,988 stores in 31 states and the District of Columbia. 

Safeway has kicked off its Power Pump Rewards Program where the retailer will give a USD0.10 fuel discount for every USD100 shoppers spend in stores. In addition to grocery purchases, the program includes certain gift card and prescription purchases.

Safeway has named Diane M. Dietz as the retailer’s new Executive Vice President (EVP) and Chief Marketing Officer (CMO). Reporting to Chairman, President, and Chief Executive Officer Steven Burd, Dietz will be responsible for Safeway’s marketing, merchandising, manufacturing, and distribution functions.

• Dietz brings with her a 19-year career at Proctor and Gamble (P&G).
• Most recently, Dietz ran one of P&G’s largest business units and is credited with turning around P&G’s Oral Care North America unit and revitalizing the Crest brand.

Safeway’s marketing organization had been led by Mike Minasi, President of Marketing, since September 2007. Safeway’s previous CMO, Brian Cornell, resigned in June 2007. Cornell had been CMO of Safeway since April 2004.

Safeway opened its first Lifestyle format store in Bellevue, Washington on June 27, 2008. The opening marks the first Lifestyle format store in the Seattle market.

• Free food samples from 21 departments and a baby grand piano by the cash registers playing live music marked the celebration.
• The new store replaces an older Safeway supermarket that was located across the street.

Safeway’s Seattle market comprises 197 stores from Alaska to Montana

On July 1, David McCreight resigned as the president of Lands’ End, the Sears Holdings subsidiary.

• Previous to Lands’ End, McCreight held positions at Disney Stores Worldwide and Smith & Hawken.
• McCreight joined Lands’ End in 2003 as Chief Merchant and was named President in 2005, reporting directly to the Sears Holdings Chairman, Edward Lampert.
• During his leadership, McCreight was credited with much of the subsidiary’s success.
• McCreight has accepted a position as President at Under Armour Inc. and is expected to begin his new role in September.

Kmart has expanded its generic drug program by cutting prices and expanding medications covered from 300 to over 500 common medications, starting June 22. The program offers:

• Over 100 generic antibiotics and cold treatments for USD5 per prescription.
• Price reduction of a three-month supply for some common drugs from USD15 to USD10.
• A 90-day supply of nearly 50 women’s generic drugs—oral contraceptives, prenatal, osteoporosis medications, etc.—for USD25 or less.

On June 27, 2008, Empire Co. Ltd., owner of Sobeys, reported a fiscal fourth quarter profit of CAD66.5 million, up from CAD64.8 million from the prior-year period. 

• Empire, a privately owned company of the Sobey family, stated that the increase in profit was from increased sales in its retail divisions.
• "Our fourth-quarter earnings before capital gains and other items was a record level for the company," said Chief Executive Officer Paul Sobey.
• Consolidated quarterly revenue rose to CAD3.56 billion from CAD3.35 billion. For the full fiscal year, sales were CAD14.06 billion, up 5.2%.

Staples has decided to transition its Easy Rebates reward system from paper checks to prepaid cards.

• Rebates in the form of prepaid cards were rolled out in late June 2008, following a successful test launch in January 2008.
• Staples rebate program partner of nine years, Parago, will transition the Easy Rebates reward system from paper checks to prepaid cards.
• Delivering Easy Rebates through prepaid cards instead of paper checks will make the program more convenient and allow shoppers to spend their rewards immediately.