A&P appointed Tom O’Boyle as new Executive Vice President where he will be in charge of Merchandising, Marketing, Supply and Logistics departments.

Before joining A&P, Tom Boyle was employed as Food and Drug President and Senior Vice President at Sears, and before that as Senior Vice President for Merchandising and Marketing for Albertson’s.

Staples has announced plans to sell Amazon’s Kindle, the wireless reading device, in more than 1,550 stores in the US.

• Effective this fall, Staples will become the only office store to offer the wireless reading device in all of its stores in the country.
• In addition to the Kindle, Staples will carry the entire range of accessories related to the product.
• The new Kindle device, available at Staples are:
  • Kindle (6 inches diagonal) at USD 139
  • Kindle 3G (6 inches diagonal) at USD 189
  • Kindle DX (9.7 inches diagonal) at USD 379

Jevin Eagle, Executive Vice President, Merchandising and Marketing, Staples said: "As part of our efforts to offer customers a wide range of top technology products and services at amazing values, the new Kindle is a natural fit."

Best Buy has launched a trade-in program offering shoppers a chance to sell pre-owned video games in approximately 600 outlets.

• Effective August 29, 2010, shoppers will be able to trade in their pre-owned games for a USD 20 worth gift card on over 100 popular labels.
• Shoppers can use the Best Buy gift card to purchase any product in the outlet, such as games and gaming accessories.
• The retailer plans to offer a similar program on its online site, BestBuy.com, to allow shoppers to get an estimate price for their games. Shoppers may also mail their pre-owned video games for free and receive the gift card in 14 days.

Chris Homeister, Senior Vice President and General Manager for the Home Entertainment Group at Best Buy, stated: “The expansion of our trade-in program reaffirms our commitment to consistently pursue new ways to bring a better gaming experience to consumers.” (…) “Fall marks the launch of several highly anticipated gaming titles and new technology, and we’re thrilled to provide gamers with innovative ways to connect with the games they love.”

BJ’s reported sales increased 4.9% to USD 794.6 million for the four weeks ended August 28, 2010.

• Excluding gasoline, comparable-club sales (comps) increased by 1.9%; gas sales would have otherwise benefited comps 50 basis points (bp).
• With the exception of Metro New York, sales increased in all regions.
• Excluding gas, traffic increased approximately 3%, while the average transaction decreased by an estimated 1%.
• Food sales increased approximately 4%; general merchandise sales decreased by approximately 1%.
• The strongest performing departments included bakery, cigarettes, computer equipment, dairy, frozen, housewares, meat, milk, produce, small appliances, and snacks; weaker performances compared to the prior year were seen in air conditioners, health and beauty aids, household chemicals, and pre-recorded video.
• Compared to last year, a benefit from a tax-free weekend in Massachusetts was offset by overall weaker sales of air conditioners.

As of September 2, 2010, BJ’s operated 189 warehouses in 15 states.

Costco is in the process of developing a more formalized written policy on humane animal treatment and will increase its vigilance in ensuring suppliers adhere to its policies. This announcement was made in reaction to video footage of the mistreatment of young animals connected to Costco’s sale of veal in select locations. While Costco operates an inspection program to ensure suppliers comply with its animal treatment standards, it acknowledged its failure to uncover this problem.

Dollar General has reported its Q2 2010 ended July 30, 2010. Highlights include:

Q2 2010 – 13 weeks

• Net sales increased 10.8% to USD 3.2 billion.
• Same-store sales increased 5.1% during the quarter.
• Both ticket and traffic contributed positively in the same-store sales growth.
• Gross margin increased 101 basis points (bp) to 32.2% of sales.
• SGA as a percentage of sales decreased 32 bp to 22.9% of sales.
• Operating profit increased 29% to USD 300.7 million.
• Adjusted net income surged 55% to USD 145.1 million.

Year to Date 2010 – 26 weeks

• Net sales increased 11.3% to USD 6.3 billion.
• Same-store sales increased 5.9% over the same period last year.
• Gross profit increased 118 bp to 32.2% of sales.
• SGA as a percentage of sales fell by 34 bp to 22.8% of sales as compared to 23.2% in 2009.
• Operating profit increased to 9.4% of sales compared to 8.1% in 2009.
• Total capex in 2009 came in at USD 163.1 million.
  • USD 54 million on new stores
  • USD 59 million on upgrade of existing stores
  • USD 29 million on remodels and relocations
  • USD 11 million on systems-related capital projects
  • USD 10 million on distribution and transportation improvements
• Opened 315 new stores, relocated, and remodeled 301
  • Total stores as of July 30 2010 was 9,113.

 Outlook

• The retailer expects FY 2010 sales to increase by 8.5% to 10.5% with an increase of 4% to 6% in same-store sales.
• The retailer anticipates an increase of 20% to 23% in operating profit for FY 2010 compared to the previous year.
• Dollar General announced plans to open around 600 new stores. It will remodel or relocate approximately 500 stores by investing USD 350 million as capital expenditure in 2010.

According to Chairman and Chief Executive Officer of Dollar General, Rick Dreiling: "Fiscal 2010 is on track to be another great year for Dollar General, reflecting our disciplined execution and ability to deliver excellent performance and positioning us for continued growth in the future."

Family Dollar reported sales for fourth quarter (Q4) period ended August 28, 2010.

Quarterly Performance

• Net sales were up 8% to USD 1.957 billion.
• Comparable-store sales (comps) increased 6.1% over Q4 2009.
  • Family Dollar noted that sales were strong in the Consumables category.
• During Q4 2010, Family Dollar opened 75 new stores.

Yearly Performance

• Net sales were up 6.3% to USD 7.867 billion.
• Comps increased 4.8% as compared to the previous year.

As of August 28, 2010, Family Dollar operated 6,785 stores.

Howard Levine, Family Dollar, Chairman and Chief Executive Officer (CEO), stated: "In fiscal 2010, we enhanced our assortment, worked to make our stores easier to shop, and expanded our operating hours to provide our customers with more convenience. These investments have delivered solid results and position us well for continued growth in fiscal 2011."

Family Dollar will report full Q4 2010 and FY 2010 results on September 29, 2010.

Fred’s reported net sales of USD 134.3 million for the four weeks ended August 28, 2010, a 5% increase over numbers reported for the same period in 2009.

• Comparable-store sales (comps) increased 3.6% compared with a decrease of 1.4% in the same period last year.
• Year-to-date (YTD) sales were USD 1,055 million, up 3% compared to USD 1,021 million in the same period last year. YTD comps increased 2.6% compared with an increase of 0.5% in the same period last year.

According to Chief Executive Officer, Bruce Efird, "(…) Comparable-store sales for the month were at the higher end of our quarterly guidance, driven by general merchandise departments and increased customer traffic. The Core 5 program, as well as the success of our back-to-school promotions, continues to validate the marketing and merchandising programs initiated earlier this year."

As of August 28, 2010, Fred’s operated 674 discount general merchandise stores, including 24 franchised stores in the United States.

Gap Inc. reported net sales of USD 1.1 billion for the four weeks ended August 28, 2010, a flat growth compared to the previous year.

• Comparable-store sales (comps) for the group were flat.
  • Comps for Gap North America declined 1% compared to a decline of 7% in the prior year. 
  • Comps for Banana Republic North America increased 6% compared to a decline of 8% in the prior year.
  • Old Navy North America reported negative 2% comps as compared to a positive 4% in the prior year.
  • Comps for the international markets increased 5% as compared to a decline of 12% in the prior year.

Year-to-date (YTD) sales totaled USD 7.77 billion, an increase of 4% as compared to fhe prior year. YTD comps increased 2% as compared to a decrease of 7% in the prior year.

As of August 28, 2010, Gap operated about 3,100 stores in the United States, Canada, the United Kingdom, France, Ireland, and Japan.

Gap has launched two dedicated e-commerce sites for the European shoppers, in continuation with its online international expansion strategy. Further, it plans to ship to the following additional nine countries by this fall: Belgium, Denmark, France, Germany, Republic of Ireland, Italy, Netherlands, Spain, and Sweden.

• The retailer has launched sites for Gap and Banana Republic; http://www.gap.eu/ and http://www.bananarepublic.eu/, respectively. The sites will allow fast and reliable local shipping within UK, with no hidden charges or fees.
• Shoppers can avail a free shipping introductory offer on purchase of GBP 50 or more, along with free, easy returns on online or in-store purchases.
• The "Universality" platform will bring all brands under one roof, along with ease in navigation and a universal shopping cart.
• The launch will enable UK shoppers to shop for Gap, GapKids, babyGap, and Banana Republic with one shopping basket, one checkout, and one shipping box.
• The retailer plans to open stores in China and Australia by the end of 2010, which along with its online and franchise presence, will make it reach around 80 countries.

Zellers has remodeled five stores in Winnipeg as a test for offering fresh produce as a way to draw in additional shoppers. Winnipeg is a seemingly reasonable choice for this test, as the market is not as competitive in discount groceries as BC or Ontario.

Zellers does not yet have the appropriate logistics in place for perishable items, so it is using a third-party distributor for fulfillment. If the tests go well, Zellers will roll out additional stores to Ontario and other markets.

JC Penney reported net sales of USD 1,439 million for the four weeks ended August 28, 2010, a 0.8% decrease over numbers reported for the same period in 2009.

• Comparable-store sales (comps) increased by 2.3% when compared to a decrease of 7.9% in the same period last year.
• Year-to-date (YTD) sales were USD 9,306 million, up 0.6% compared with a decrease of 6.7% in the same period last year.
• YTD comps increased 1.4% compared with a decline of 8.4% in the same period last year.

JC Penney operates 1,107 department stores in the United States and Puerto Rico, along with the general merchandise catalog business and jcp.com.

Kohl’s reported sales for the four weeks ended August 28, 2010, of USD 1.416 billion, a 7.7% increase over numbers reported for the same period in 2009.

• Comparable-store sales (comps) for the month increased 4.5%.
• Fiscal year-to-date sales grew 9% to USD 9.551 billion, while comps increased 5.7%.

Kevin Mansell, Kohl's, Chairman, President and Chief Executive Officer, stated: "Our August results were slightly better than planned. All regions and all lines of business reported positive comparable-store sales for the month. The southeast region continued its strong year-to-date trends with low double-digit comp increases. From a line-of-business perspective, the Home business reported the strongest comparable-store sales for the month. Men's and Footwear also outperformed the company average."

As of August 28, 2010, Kohl’s operated 1,067 stores in 49 states.

Limited Brands reported net sales of USD 630.3 million for the four weeks ended August 28, 2010, compared to USD 561.4 million during the same period in 2009.

Group comparable-store sales (comps) increased 10% during the month.

• Comps for Victoria's Secret stores increased 15%;
• La Senza store comps increased 2%; and
• Bath & Body Works comps increased 2%.

Year-to-date (YTD) sales for the group were USD 4,804 million, compared to USD 4,353 million in the same period last year. YTD comps increased 9% when compared to the same period in 2009.

• Comps for Victoria's Secret stores increased 13%;
• La Senza store comps increased 1%; and
• Bath & Body Works comps increased 3%.

As of August 28, 2010, Limited Brands operated 2,972 specialty stores in the US. Its brands Victoria's Secret, Bath & Body Works, and Henri Bendel operated 1,038, 1,616, and 11 stores in the US, respectively.

Macy's reported net sales of USD 1.638 billion for the four weeks ended August 28, 2010, an 6.2% increase over numbers reported for the same period in 2009.

• Same-store sales increased 4.3%.
• Online sales, including Macys.com and Bloomingdales.com, increased 22.2%.

Fiscal year-to-date sales grew 7.1% to USD 12.749 billion.

• Same-store sales increased 5%.
• Online sales increased 29.8%.

According to Chairman, President, and CEO Terry Lundgren, "Our back-to-school business through August has been strong, led by great performances by Material Girl, the exclusive juniors brand by Madonna, as well as American Rag, our largest private brand in juniors and young men's. We are particularly encouraged by the response from our customers to new fall fashion, which indicates that the consumer understands and appreciates the value, the quality, and the uniqueness of our on-trend merchandise".

As of August 28, 2010, Macy's operated 850 department stores in 45 states, the District of Columbia, Guam, and Puerto Rico under the names of Macy's and Bloomingdale's.

Neiman Marcus reported net sales of USD 250 million for the four weeks ended August 28, 2010, a 3.9% increase over numbers reported for the same period in 2009.

• Comparable-store sales (comps) increased 2.9% to USD 248 million during the month.
• Comps for Specialty Retail Stores segment, comprising Neiman Marcus Stores and Bergdorf Goodman, increased 2.7%.
• Women’s shoes and handbags, designer jewelry and men’s, were the strongest-performing categories in the specialty retail store segment.
• Comps for Neiman Marcus Direct segment were up 3.6%, primarily driven by women’s shoes and handbags, jewelry, and beauty.

Year-to-date (YTD) comps increased 0.5%., while net sales were up 2% to USD 3,717 million.

Nordstrom reported net sales of USD 615 million for the four weeks ended August 28, 2010, a 13.6% increase over numbers reported for the same period in 2009.

• Same-store sales for the group increased 6.3% compared to the same period in 2009.
  • Same-store sales for Full-line Stores increased 7.8%.
  • Same-store sales for Direct increased 3.7%.
  • Same-store sales for Multi-channel (Full-line Stores and Direct) increased 7.5%.
  • Same-store sales for Rack Stores decreased 4.2%.
• During the period, the retailer opened one full-line and two Rack stores.

Year-to-date (YTD) sales were USD 5,022 million, up 14.3% compared to USD 4,392 million in the same period last year. YTD comps increased 9.5% compared to the previous year.  

• Same-store sales for Full-line Stores increased 9.5%.
• Same-store sales for Direct increased 32.6%.
• Same-store sales for Multi-channel (Full-line Stores and Direct) increased 11.1%.
• Same-store sales for Rack Stores decreased 0.1%.

As of August 28, 2010, Nordstrom operated 196 stores in 28 states, of which 115 were full-line stores, 78 Nordstrom Racks, two Jeffrey boutiques, and one clearance store.

OfficeMax, in partnership with Rosetta, a US-based interactive marketing agency, has launched a free OfficeMax Application (App) for iPhone on the Application Store.

• The application will enable shoppers to access offers, locate the retailer’s stores, and browse the OfficeMax website for products while on the move.
• OfficeMax MaxPerks loyalty members will also be able to browse their purchase history, view the progress of their reward programs, and redeem awards.

Commenting on the launch, Julie Krueger, Senior Vice President of Ecommerce for OfficeMax, stated: "The OfficeMax App for iPhone and iPod touch adds a whole new level of convenience for our customers that wasn't there before and helps them make savvier purchasing decisions. We are especially excited to introduce a new access channel for our most loyal customers, MaxPerks members, that makes it easier for them to redeem rewards and track important purchases. The OfficeMax App raises the bar and enhances the value of our loyalty program."

Rite Aid reported total drugstore sales of USD 2.343 billion, a 2.2% decrease, for the five weeks ended August 28, 2010.  

• Same-store sales decreased 1.0% compared to the prior-year period.
• Front-end same-store sales decreased 0.9%.
• Pharmacy same-store sales decreased 1.0%; new generic introductions negatively impacted pharmacy same-store sales by 225 basis points (bp).
• Prescriptions filled at comparable stores decreased 1.2%.
• Prescription revenue was 68.5% of total sales; third-party prescription sales were 96.2% of pharmacy sales.

For the 26-week year-to-date period:                                       

• Total sales decreased 2.3% year-over-year to USD 12.505 billion.
• Same-store sales decreased 1.2%.
• Front-end same-store sales decreased 1.1%.
• Pharmacy same-store sales decreased 1.3%.
• Prescriptions filled at comparable stores decreased 1.9%.
• Prescription revenue was 68.2% of total sales; third-party prescription sales were 96.2% of pharmacy sales.

As of August 28, 2010, Rite Aid operated 4,747 stores compared to 4,812 stores in the prior-year period.

From August 30 to September 2, 2010, a Sweepstakes for five USD 100 Safeway gift certificates is running through Safeway’s Facebook page. To enter, participants must indicate that they “like” Safeway’s page, fill out an entry form, and agree to the rules. Participants must be at least 18 years old, and the contest is valid in select states: Colorado, Nebraska, New Mexico, South Dakota, Wyoming, Illinois, Delaware, Maryland, Virginia, Washington DC, New Jersey, Pennsylvania, California, Hawaii, Nevada, Arizona, Oregon, Washington, Alaska, Idaho, Montana, and Texas.

Safeway announced that it will give shoppers 10% off of their next grocery purchase if they receive a flu shot at its pharmacy. No appointment is necessary, but the retailer did point out that some restrictions apply to this promotion.

Saks Incorporated reported net sales of USD 159.3 million for the four weeks ended August 28, 2010, a 0.9% decrease over numbers reported for the same period in 2009.

• Comparable-store sales (comps) increased 1% during the month. The comps were negatively impacted due to reduced levels of clearance inventory.
• The increase in comps was positively impacted by strong performance of women's shoes, fine and fashion jewelry, dresses, cosmetics, and women's designer and WEAR apparel. In addition, Saks Direct performed well during the month.

Year-to-date (YTD) sales were USD 1,399.5 million, up 5% compared to USD 1,332.3 million in the same period last year. YTD comps increased 4.9% during the period.

Outlook

For second half of the fiscal year 2010, the retailer expects comps growth to be in the mid-single digit range.

As of August 28, 2010, Saks operated 49 Saks Fifth Avenue stores, 55 Saks OFF 5TH stores, and Saks.com.

Kmart has launched Stylesip.com, an online social hub for teen girls that is focused on fashion. The site provides a platform for teens to learn about new apparel; share thoughts on trends, entertainment, music, and gossip through a Stylesip blog; and chat live with designers, style experts, and celebrities. The site will also be a hub for exclusive Kmart lines, such as Dream Out Loud by Selena Gomez, Rebecca Bonbon, Bongo, and GLO.

Source: Kmart.com (September 2010)

Sears and Kmart have partnered with recognized Hispanic journalist and talk show host, Cristina Saralegui, to launch a new soft home collection, Casa Cristina. Drawing on designs from Hispanic culture, the bedding line includes comforter sets, quilted coverlets, and euro shams, microfiber sheets, and decorative pillows. The bath collection includes matching shower curtains, towel sets, cotton bath rugs, and accessories. Products will be available in Winter 2010.

Kmart and Alloy Media + Marketing are airing a bi-weekly comedy Web series, First Day (http://www.firstdaytheseries.com/), which features product integration.

• The eight-episode series premieres today on Alloy’s multi-platform digital entertainment network, AlloyTV (http://www.alloytv.com/).
• Kmart and its brands will receive extended promotion throughout the series, as well as through Alloy’s Digital Network and Channel One Network.
• Each episode of First Day will feature a retail component, with Kmart showcasing its fashions and enabling viewers to buy looks worn by lead characters via http://www.kmart.com/; viewers can also participate in a sweepstakes for a makeover and Kmart shopping spree.

Starring Tracey Fairaway (from Make It or Break It) and Elizabeth McLaughlin (from Ugly Betty and The Clique) First Day follows the life of a teenage girl who keeps reliving her first day at a new school.

In an effort to attract new shoppers, a Save-A-Lot store in Opelousas, Louisiana has delivered a bag of free groceries to 1,000 homes within a one and a half mile radius of the store. The bags are filled with approximately USD 10 to USD 20 worth of Save-A-Lot branded items.

Supervalu banner Jewel-Osco paired its existing loyalty card program with a new promotion that allows shoppers to accumulate points that can be redeemed for high-end cookware. Between August 26, 2010 and January 12, 2011, shoppers who use their loyalty card will earn a sticker for every USD 10 spent on eligible items. The stickers can then be redeemed for eight different pieces of high-end cookware for 1 cent each. Normally, the cookware pieces would retail for between USD 29.99 and USD 89.99.

Jewel-Osco has paired the program with cooking tips and recipes as well as sweepstakes and live cooking demonstrations.

Target will open five in-store health clinics in Chicago, Illinois within the next week, increasing its total number of US clinics to 36. The clinics will operate seven days a week, treating patients for routine health issues with no appointment necessary. Along with three additional clinics in Palm Beach, Florida, these clinics are the second largest group to open since Target first launched in-store clinics in 2006. Target indicated it will continue to strategically expand clinic locations, with no current plans for major US expansion.

Target will be the first brick-and-mortar retailer of Facebook Credits gift cards, which will launch in stores on September 5, 2010. Facebook Credits enable consumers to buy virtual goods in over 150 social games and applications offered by independent developers on Facebook. Target will offer the gift cards in USD 15 (created exclusively for Target), USD 25, and USD 50 increments.

Source: Facebook.com (September 2010)

Target has introduced “My TargetWeekly,” a personally customizable online ad viewer. It lets guests set deal alerts for their preferred products, customize screen views, create mobile shopping lists for their trip, and share deals through Facebook and Twitter. The retailer commented that it plans to expand this new offering with more capabilities in the coming months.

TJX reported net sales of USD 1.7 billion for the four weeks ended August 28, 2010, a 6% increase over numbers reported for the same period in 2009.

• Comparable-store sales (comps) increased 2% as compared to the same period of 2009.
• Year-to-date (YTD) sales were USD 11.7 billion, up 10% compared with USD 10.7 billion last year. YTD comps witnessed an increase of 6%.
• As of August 28, 2010, TJX operated 2,816 stores in North America and Europe, including 909 T.J. Maxx, 822 Marshalls, 329 HomeGoods, and 156 A.J. Wright stores in the United States.

Carol Meyrowitz, President and Chief Executive Officer of The TJX Companies, stated, "Our consolidated August comparable-store sales increase of 2% and The Marmaxx Group’s comp sales increase of 3% were both solidly in line with our expectations and achieved on top of mid-single-digit comp sales increases last year. We continue to see customer traffic increase and are confident that our excellent value proposition on great fashions and brands is drawing people to our stores. With very lean inventories, we are in an excellent position to capitalize on the terrific buying opportunities on quality brands that we are seeing in the marketplace as we move into the fall selling season."

Walgreens announced plans to acquire the assets of 18 Apothecary Rx pharmacies from Graymark Healthcare. The acquired pharmacies are located in Colorado, Oklahoma, Minnesota, Missouri, and Illinois. Walgreens expects the acquisition to be completed in the fourth quarter 2010.

Walmart Canada announced this week that it is revamping its own-brand apparel lines. George is getting the go ahead to be the primary brand, with ancillary brands B.U.M., Penman's, and 725 being retired and rolled into George. Walmart Canada is also retrofitting all of its stores to play up the apparel department with new signage and fixtures. The company has also doubled the internal design team for George to around 40 people.