04 Feb 2010
 
 
Priority News Forward to a colleague

02 Feb 2010 — Costco Names Craig Jelinek President and Chief Operating Officer
Costco has appointed Craig Jelinek to the President and Chief Operating Officer post, effective immediately. Jelinek will also join the retailer’s Board of Directors.
  • Jelinek has over 25 years' experience occupying various merchandising roles within warehouse operations. Most recently and since 2004, he was Costco’s Executive Vice President in charge of merchandising.

Chief Executive Officer Jim Sinegal, Chairman of the Board Jeff Brotman, Senior Executive Vice President Dick DiCerchio, and Jelinek together will form Costco’s “Office of the President,” through which the four will coordinate on major company issues.

 
01 Feb 2010 — Supervalu Names New EVP, CMO

Supervalu has announced that Julie Dexter Berg has been named Executive Vice President (EVP) and Chief Marketing Officer (CMO). Reporting to Craig Herkert, she will be responsible for research and analytics, customer and brand strategy, and advertising. Berg will join Supervalu on March 15, 2010.  She replaces former CMO Steve Michaelson.

Prior to joining Supervalu, Berg founded the brand and customer strategy consulting firm Brandmaking, LLC. 

 
04 Feb 2010 — Target Reports January 2010 Sales Up 3.6%
Target reported net sales of USD 4.289 billion for the four weeks ended January 30, 2010, a 3.6% increase from sales reported for the same period last year.  
  • Comparable store sales (comps) increased 0.5%.
  • Traffic increased, partially offset by a decrease in ticket.
  • The Northeast, mid-Atlantic, upper Midwest and northern California areas posted the strongest comps performance; weaker comps were seen in Georgia, central California, and Arizona.
  • The strongest comps were seen in commodities, led by health care, beauty, and food, which experienced comps increases from the mid single-digits to high single-digits. Hardlines comps decreased in the low double-digit range, with the strongest performance seen in sporting goods and the weakest in electronics and toys. Apparel comps increased in the low single-digit range, led by double-digit increases in jewelry/accessories, partially offset by a weaker performance in children’s apparel. Home comps were slightly above the company average, with the strongest results seen in decorative home and weaker-than-average comps in seasonal categories.

Fiscal year-to-date sales grew 0.9% to USD 63.436 billion.

  • Comps decreased 2.5%.

On February 4, 2010, Target operated 1,740 stores in 49 states.

 
03 Feb 2010 — Walgreens Announces January 2010 Sales Up 2.7%

Walgreens reported sales for the month of January 2010 of USD 5.36 billion, a 2.7% increase from the same numbers reported in January 2009. Due to one additional Sunday and one less Thursday in January 2010, calendar day shifts negatively impacted comparable store sales and comparable pharmacy sales by 1.3% and 1.9%, respectively.

  • Comparable store sales (comps) decreased 1.1%.
  • Front-end sales increased 3.9%.
  • Front-end comps decreased 1.0%.
  • Pharmacy sales grew 1.6%, accounting for 66.2% of total sales.
  • Pharmacy comps decreased 1.2%. New generic introductions negatively impacted pharmacy comps by 2.3%.
  • Total prescriptions filled at comparable stores increased 2.7%, positively impacted 1.7% due to H1N1 flu vaccinations and 1.4% due to patients filling more 90-day prescriptions.

Walgreens' fiscal year-to-date sales for 2010 increased 6.8% over the prior year to USD 28.1 billion. 

On January 31, 2009, Walgreens operated 7,665 locations in 50 states, the District of Columbia, Puerto Rico, and Guam, 7,162 of which are drugstores.

 
03 Feb 2010 — Walmart Cuts 300 Corporate Office Positions

As part of Walmart’s recent restructuring efforts to become more efficient, the retailer has eliminated 300 home office positions.  The roles are described as concentrated in the “corporate support areas.”

Related Content:

Walmart Reorganizes, Realigns Its Online, Operations, Merchandising Units

 
 
 

Corporate Retailer News
BJs
04 Feb 2010 —  BJ's Comparable Sales Excluding Gas Up 2.9% in January 2010

BJ’s reported sales of USD 742.6 million for the five-week period ended January 30, 2010, a 13.0% increase over numbers reported for January 2009. 

  • Excluding gas, comparable club sales (comps) grew 2.9%; gasoline sales would have otherwise benefitted comps 550 basis points (bp).
  • Comps increased in all regions, the greatest of which were the Southeast and upstate New York regions.
  • Excluding gasoline, traffic increased 5%; average transaction decreased 2%.
  • Food sales increased approximately 4%. General merchandise sales were approximately flat year-over-year.
  • Strong comps were seen in apparel, breakfast foods, candy, cigarettes, dairy, frozen, health and beauty aids, household chemicals, housewares, juices, paper products, produce, residential furniture, small appliances, and tires.
  • Categories with weaker sales versus last year included automotive & tools, sporting goods, televisions, trash bags, and pre-recorded video.

Fiscal year-to-date sales increased 1.6% to USD 9.95 billion.

  • Excluding gas, comps increased 4.0%; gasoline sales would have otherwise negatively impacted comps by 590 bp.

On January 30, 2010, BJ's operated 187 warehouse clubs in 15 US states.


Costco
04 Feb 2010 —  Costco January 2010 Comps Excluding Gas, FX Up 2%

Costco reported sales of USD 5.62 billion for the four-week period ended January 31, 2010, up 10% from the same four-week period a year ago. Sales for the YTD period were up 8% to USD 32.45 billion.

  • Comparable club sales (comps) were up 4% in the US and 25% internationally, for a total company increase of 8%.
    • Excluding foreign currencies and gas inflation, comps would have been flat in the US and grown 9% internationally for a total company increase of 2%.
  • Including the impact of gas and FX, average transaction size was up 4%, while traffic was up 3.5%.
  • Cannibalization negatively impacted comps by approximately 60 basis points.
  • Merchandise category performances were as follows:
    • Within food and sundries, candy, cooler, and deli led the way.  
    • Fresh foods posted slightly negative comps, with bakery and produce leading the way.
    • Within hardlines, the strongest results were in office, sporting goods, and hardware. Majors posted a mid single-digit comps decline, due to soft TV sales (due to a later Superbowl in 2010).
    • Within softlines, which had subcategories that grew over 20% year-over year, the strongest results were in housewares, small appliances, domestics, home furnishings, and apparel.
    • Gasoline, hearing aids, and photo posted the best results within Ancillary.
  • In the US, the strongest performing regions were Texas, the Midwest, the Southeast, and Northeast.
  • Internationally, the strongest performers were Canada and Korea.

On February 4, 2010, Costco operated 413 warehouses in the US and Puerto Rico, 77 in Canada, 21 in the UK, 7 in Korea, 6 in Taiwan, 9 in Japan, 32 in Mexico, and 1 in Australia.


Delhaize
03 Feb 2010 —  Food Lion Launches Mobile Marketing Campaign

Food Lion has launched its latest mobile marketing campaign, this time focusing on male skin care products. Shoppers can send a text message to Food Lion and receive coupons worth up to USD 4 by mail or have them linked to their loyalty cards.

Food Lion has run similar promotions for the upcoming Super Bowl and over the holidays.

02 Feb 2010 —  Delhaize America Names New Executives

As part of an overall restructuring of its US operations, Delhaize has announced a series of executive appointments:

  • Cathy Green has been named President of the Food Lion, Bloom, Harvey’s, and Reid’s banners. She will be responsible for all operations of these banners including financial performance, marketing, merchandising, customer service, and pricing.
  • Beth Newlands Campbell has been named President of Hannaford Brothers Supermarkets.
  • Meg Ham has been named President of Bottom Dollar Food and will be responsible for its planned expansion.
Click here to learn about Delhaize America’s recent reorganization.


hhgregg
04 Feb 2010 —  hhgregg Reports Its Fiscal Q3 Sales Increased 20.3%

hhgregg reported sales for the three months ended December 31, 2009, of USD 500.4 million. This brings the retailer’s fiscal year-to-date sales total to USD 1.1 billion, an 8.3% rise over last year. The retailer’s sales gains were attributed to new stores; there was a net addition of 19 stores over the past 12 months.

  • Comparable store sales (comps) in Q3 declined 0.2%. The company explained this was driven by weakness in the video category. Sales of appliances improved this period.
  • Net income increased 32.8% in the period to USD 22.7 million, driven by the increase in net sales and a slight decrease in operating expenses as a percentage of sales.
  • Gross profit as a percentage of sales decreased 90 basis points (bp) year-over-year to 30.5%.
  • Selling, General, and Administrative (SG&A) expenses decreased 20 bp, year-over-year.
  • Net advertising expenses as a percentage of sales declined 90 bp, driven by reduced advertising costs and increases in vendor supported advertising.
  • In fiscal 2011, the retailer expects to open approximately 40-45 stores in the mid-Atlantic region.
  • hhgregg currently operates 127 stores in 11 states.


Kohls
04 Feb 2010 —  Kohl’s Announces January 2010 Sales Up 10.7%

Kohl’s reported sales for the four-week January 2010 period of USD 798 million, a 10.7% increase from numbers reported for the comparable period last year.

  • Comparable store sales (comps) increased 6.5%.
  • The Southwest was the strongest performing region.
  • Footwear and Women’s posted the strongest comps for the month.

Preliminary results for the fiscal 2009 period include a sales growth of 4.8% to USD 17.178 billion.

  • Comps grew 0.4%.

On January 4 2010, Kohl’s operated 1,058 stores in 49 states.


OfficeMax
02 Feb 2010 —  OfficeMax Expands Its Private Label Office Furniture

OfficeMax announced plans to expand its office furniture private label brands, Brenton Studio and Eastleigh. The private brands are targeted toward value-conscious shoppers and complement the retailer’s private brand offerings, which include DiVOGA, [IN]PLACE, INFUSE, and TUL.


Rite Aid
02 Feb 2010 —  Rite Aid Announces Organizational Changes

Rite Aid named Chris Hall, Senior Vice President (SVP) of Strategic Business Development, to the position of SVP of Pharmacy Business Development, reporting to Robert Thompson. Hall will oversee pharmaceutical purchasing analysis, strategy and execution, and acquisitions and retail pricing. Hall joined Rite Aid in 2000 as SVP and Chief Accounting Officer.

Rite Aid also appointed Matt Schroeder, Vice President (VP) of Financial Accounting and Treasury, to the position of Group VP of Strategy, Investor Relations, and Treasurer, reporting to Frank Vitrano. Schroeder will continue to oversee treasury while managing investor relations, risk management, and planning and business analysis. Schroeder began working at Rite Aid in 2000 as VP of Financial Accounting.  


Target
01 Feb 2010 —  Target Reveals Super Bowl Television Deals

Beginning January 31, 2010 and lasting through February 6, 2010, Target is offering up to USD 200 savings on select TVs. Additionally, guests who buy any 32-inch or larger TV on a REDcard account during this timeframe will have the option to receive zero-percent introductory financing until September 2010.


Walgreens
02 Feb 2010 —  Walgreens Introduces Community Corner Program Featuring Minority-Owned Businesses

Walgreens launched a new Community Corner program, recognizing minority-owned businesses during the month of February. The program will feature products made by African-American vendors through print advertisements, in-store announcements, coupon books, shelf tags, in-store demonstrations, and Walgreens.com. This program is designed to help consumers identify and purchase products produced by diverse companies.  

01 Feb 2010 —  Walgreens Completes Acquisition of Eaton Apothecary Pharmacies

Walgreens completed the acquisition of the assets of 12 Eaton Apothecary pharmacies in the greater Boston area. As of January 31, 2010, prescription records and staff from the Eaton Apothecary pharmacies in Salem and Gloucester were transitioned to nearby Walgreens locations.


Walmart US
01 Feb 2010 —  Walmart Announces “Gametime” Event Deals

To promote football party solutions, Walmart announced rollback deals up to USD 300 on select HDTVs. The retailer also promoted a USD 44 party feast to feed eight, which includes appetizers, hot dogs, and cookies.


Whole Foods
03 Feb 2010 —  Whole Foods to Open Third Fuel Cell-Powered Store

Whole Food’s third store to be powered by an on-site fuel cell is currently under construction in San Jose, California and will join stores Dedham, Massachusetts and Glastonbury, Connecticut when completed. The 50,000 square foot store will get 90% of its electricity from the fuel cell system and will see its overall energy efficiency increase 60%.

When completed, the San Jose store will keep more than 370 metric tons of carbon dioxide from being released annually, equivalent to planting over 85 acres of trees. At the same time, nitrogen oxide emissions will be reduced equivalent to taking 92 cars off the road.

 

 

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