The board of A&P appointed Sam Martin as new CEO succeeding Ron Marshall.

• Before joining A&P, Sam Martin was Chief Operating Officer at OfficeMax, a role he assumed in 2007 when he joined from a similar position at Wild Oars Markets Inc.
• Previously, he held senior management positions at ShopKo Stores and Fred Meyer.

 

A&P announced a 7.2% sales decrease for the first 16 weeks to 19 June 2010, down to USD 2.6 billion from USD 2.8 billion last year.

• Net loss increased by 88% to USD 112.6 million, compared to a net loss of USD 56.1 million in the previous year.
• EBITDA was USD 19 million, compared to USD 81 million for last fiscal year’s Q1.
• A&P currently operates 429 stores in the US.

Albertsons LLC has announced that it will transition its 17 southern Louisiana stores to Supervalu’s distribution system beginning in September 2010. The stores are currently supplied by Associated Wholesale Grocers (AWG). Albertsons LLC said that AWG will continue to supply its 77 Texas stores and one store in Arkansas.

Carphone Warehouse CEO Roger Taylor said: "We are delighted with the launch of the first three Big Box Best Buy stores in the UK - the customer response is excellent". The Best Buy branded stores in Thurrock, Hedge End and Merry Hill opened in Q1, with a further three stores scheduled to open later in the year. Taylor added that the big-box electrical retailer would also launch online trading in October. Taylor is confident that Best Buy will successfully manage recent executive changes announced earlier this month, with Andrew Harrison replacing Paul Antoniadis to take on overall responsibility for the retailer's UK launch.

The Carphone Warehouse business also had a good start to the year, with total group revenues growing by 2.7% in Q1. European results have seen like-for-like revenues rise by 3.7% in the quarter. Expansion in the US continued in Q1 with a 9.3% increase in stores year-on-year and a 29.7% rise in connections, while European connections rose 1.1%.

CVS announced a 12-year agreement to provide Pharmacy Benefit Management services for Aetna members. The contract will support 9.7 million Aetna PBM members and represent an approximate USD 9.5 billion in annual drug spend. The contract will offer the following to members:

• Enhanced clinical capabilities
• Improved pricing and products
• Enhanced customer service 

Aetna will retain its PBM with CVS applying its integrated pharmacy care model to the Aetna network while managing customer service functions. CVS will also manage purchasing, inventory management, and prescription fulfillment for Aetna’s mail order and specialty pharmacy operations.

CVS announced the launch of an informational flu season campaign to educate shoppers on the importance of protecting against the flu. On July 26, 2010, CVS stores and MinuteClinic locations will post signs reminding shoppers to get an “all-in-one” flu shot this season, which will be available in all CVS stores and MinuteClinic locations. CVS.com and Minuteclinic.com have been updated to include facts about staying healthy this season and the importance of getting a flu shot.

CVS announced the launch of a free iPhone application for CVS Caremark members. The new application allows members to manage their prescriptions online while accessing educational information about specific prescription drugs. Additional functions of the application include:

• Prescription refill
• Prescription order status
• Prescription history
• FastStart allowing customers to request new prescriptions
• Drug costs
• Nearby network pharmacies

Drugstore.com announced the launch of VitaminEmporium.com, a new online store offering vitamins and supplements. The site will also offer shoppers access to nutritionists and health advisors who are able to provide educational information related to available products.

JC Penney has launched a new clothing line, "Supergirl by Nastia," in collaboration with DC Comics and Nastia Liukin, the Olympic medalist and world champion.

• The range is targeted at girls in the age group of 4-12 years and is priced between USD 20-38.
• The collection features Supergirl, the DC comic super heroine and is available in fleece, dresses, tunics, knit pants, signature Supergirl tees, dancewear, fashion leggings, and shrug tops.

 

JC Penney will be reviving the discontinued clothing brand Liz & Co line, following its partnership with Liz Claiborne. The retailer will start offering the Liz Claiborne Collection clothes in 1,100 stores and the JC Penney's website in August 2010. A wide range of sportswear, knits, denims, jackets, handbags, jewelry, and watches, along with men's tailored and dress clothing, will be offered in the stores.

Kroger banner Fred Meyer has announced that effective August 1, 2010 it will eliminate plastic bags from its 10 stores in Portland, Oregon. The move follows a similar initiative implemented at its Hawthorne, Oregon store last year as part of its bid for LEED certification.

Whole Foods eliminated plastic bags from all of its stores nationwide in 2008.

Kroger has debuted an online coupon center on the retailer’s website. The center collects an array of private label, web-only, and manufacturer coupons in one place. Visitors can register on the site, link their account to their Kroger loyalty card, and download up to 150 coupons on to their card. Digital coupons are available one hour after being downloaded.

Office Depot has signed a contract with The Cooperative Purchasing Network (TCPN), a national governmental purchasing cooperative, for supplying office products to the network.

• Under the agreement, the retailer will make available office & school supplies, furniture, technology products, and copy & print services at discounted rates to eligible public agency shoppers.
• Office Depot had been a supplier of office supplies to TCPN since 1997.

According to Steve Schmidt, President of Office Depot's North American Business Solutions Division, "Office Depot is proud to once again have the opportunity to partner with TCPN to provide our government customers with unprecedented value, selection, and the highest quality products."

Office Depot reported that sales for the second quarter ended June 26, 2010, fell 4% to USD 2.7 billion. Year-to-date (YTD) sales decreased 4.6% to USD 5.7 billion as compared to same period for the last year.

• Gross profit increased 0.3% to USD 766.7 million for the quarter and 0.4% to USD 1,680.4 million YTD.
• Office Depot posted an operating loss of 27.6 million, compared with an operating loss of USD 97.9 million in Q2 2009.
• Net loss was USD 9.7 million, compared with a net loss of USD 82.9 million in Q2 2009.
• Net loss attributable to Office Depot was USD 9.5 million.
• YTD capital expenditure (capex) totaled USD 83.2 million, up 54.6% from USD 53.8 million in the prior year.
• Free cash flow during the quarter increased 335.0% to USD 62.2 million.

North American Retail Division

• North American Retail Division sales fell 2% to USD 1.1 billion for the quarter and 4% to USD 2.4 billion YTD.
• Comparable-store sales (comps) decreased 1% for Q2 2010.
• Division operating profit increased to USD 9 million, compared with loss of USD 13 million in Q2 2009. The increase was driven by favorable product margins and the absence of a USD 5 million charge recognized in Q2 2009, to reflect updated assumptions on subleases of closed stores.
• During the quarter, Office Depot opened seven stores and closed four stores. The retailer opened 11 stores and closed 11 stores YTD.

North American Business Solutions Division

• North American Business Solutions Division sales decreased 6% to USD 820 million for the quarter and 7% to USD 1.6 billion YTD.
• Division operating profit fell 39.1% to USD 14 million, compared with USD 23.0 million during the prior year. The decrease was a result of lower sales, as well as shrink and customer rebate benefits in 2009.

International Division

• International Division sales decreased 6.0% to USD 778.0 million, a decrease of 3% in local currency for the quarter. YTD sales decreased 2.0% to 1.7 billion as compared to same period last year.
• Division operating profit grew 533.3% to USD 19.0 million, compared with USD 3 million in Q2 2009. The profit surged because of better pricing management, reduced distribution costs and general and administrative expenses, and exiting the retail business in Japan during 2009.
• During the quarter, Office Depot opened and closed one store. The retailer opened four stores and closed one store YTD.

On June 26, 2010, Office Depot operated 1,292 stores, including 1,152 stores in the US and Canada and 140 company-owned international stores.

Office Depot has extended its contract with Spring Global Mail (Spring), a Netherlands-based international mail services provider, as its exclusive provider of mail distribution service in Europe.

• As per the terms of the multi-year agreement, Spring will be responsible with the distribution of catalogues in 11 European countries on an annual basis.
• Office Depot has been working with Spring since 2006. The relationship had started with distribution of mails to five destinations.

René Crins, Non-Trade Procurement Director, Office Depot stated: "Spring has real expertise in the field of international mail, and they apply their market knowledge to find the optimal postal distribution solutions in each of the European markets in which Office Depot operates. This, combined with the meticulous way Spring manages our mailing plans across the supply chain, has resulted in the extension of our current contract with Spring as our sole supplier in this critical area."

RadioShack has reported its Q2 2010 results for the three months ended June 30, 2010.

• Revenue increased 4.7% to USD 1.01 billion.
  • US company-operated store sales increased 6.4%.
  • US kiosk sales declined 12%, which was primarily attributed to fewer locations and the closure of Sprint-branded kiosks.
• Comparable-store sales (comps) for company-operated stores and kiosks increased 6.7% over the prior period.
  • This was driven primarily by higher post-paid wireless sales, the addition of T-Mobile as a third post-paid wireless carrier in company-operated stores, and higher sales of prepaid wireless handsets and airtime.
  • The increase in comps was partially offset by the 85.3% decline in sales of digital converter boxes.
• Gross margin increased 140 basis points (bp) to 47.5% of sales.
• SG&A increased 120 bp to 36% of sales.
• Operating income increased 40 bp to 9.5% of sales.
• Net income increased 8.6% to USD 53 million.

The retailer completed the pilot of wireless kiosk locations inside Target stores and plans to open kiosks in nearly all the Target store by mid of 2011. Also "Bullseye Mobile," the full mobile service will be launched at selective Target stores from August 15, 2010.

• Revenue increased 4.3% to USD 2.05 billion.
• Comps for company-operated stores and kiosks increased 5.7%.
• Converter boxes sales declined 85% to USD 18.6 million.
• Gross profit increased 100 bp to 47.4% of sales.
• SG&A increased 70 basis points (bp) to 36.3% of sales.
• Operating income increased 60 bp to 9.1% of sales.
• Net income increased 12.2% to USD 103.1 million.
• Capex totaled USD 13.4 million. RadioShack anticipates total capex for fiscal 2010 to be in the range of USD 90 million to USD 110 million.

RadioShack's retail network includes 4,680 company-operated stores in the United States and Mexico, more than 550 wireless phone kiosks in the United States, and approximately 1,300 dealer outlets worldwide.

Rite Aid reported total drugstore sales of USD 1.886 billion, a 2.2% decrease, for the four weeks ended July 24, 2010.

• Same-store sales decreased 1.1% compared to the prior-year period.
• Front-end same-store sales decreased 0.5%.
• Pharmacy same-store sales decreased 1.4%; new generic introductions negatively impacted pharmacy same-store sales by 197 basis points (bp).
• Prescriptions filled at comparable stores decreased 1.5%.
• Prescription revenue was 68.1% of total sales; third-party prescription sales were 95.7% of pharmacy sales.

For the 21-week year-to-date period:                                       

• Total sales decreased 2.4% year-over-year to USD 10.163 billion.
• Same-store sales decreased 1.3%.
• Front-end same-store sales decreased 1.1%.
• Pharmacy same-store sales decreased 1.4%.
• Prescriptions filled at comparable stores decreased 2.1%.
• Prescription revenue was 68.1% of total sales; third-party prescription sales were 96.2% of pharmacy sales.

As of July 24, 2010, Rite Aid operated 4,751 stores compared to 4,817 stores in the prior-year period.

Rite Aid has partnered with the American Dental Association to offer a free 12-page educational guide promoting oral health. The guide can be found in Rite Aid stores nationwide and online. The oral health campaign will run through September 25, 2010 and also offers Wellness+ members purchasing USD 15 or USD 25 of select oral health products a Rite Aid gift card valued at USD 15 or USD 25, respectively. Additional educational information and video demonstrations can be found at www.riteaid.com.   

This coming fall season, Saks will start selling designer garments in larger sizes at its high-end floor of its New York branch.

• Shoppers will be able to purchase garments in sizes 10-14 in styles designed by Alexander McQueen, Oscar de la Renta, Carolina Herrera, St. John, Escada, Valentino, MaxMara, Chanel, Yves Saint Laurent, Dolce & Gabbana, and Roberto Cavalli.
• Earlier, Saks stocked garments only up to a size 10. However, during the trial, one piece per size will be stocked with some garments available up to a size 20.
• Saks is likely to stock plus-size clothes in all stores across the nation following a successful trial at the New York branch.

On the weekend of August 6-8, 2010, Sam’s Club is hosting an open house. Timed to coincide with the back-to-school shopping season, this event allows non-members to shop at Sam’s Club for free, avoiding the usually 10% service fee charge on purchases. In addition, the retailer is offering a USD 15 gift card to new collegiate members.

Sears announced it is opening Now + Here, a fashion destination offering trends and styles for juniors and young men.

• The fashion destinations, which launch in August, will be located at the mall entrance in Sears stores nationwide.
• Now + Here will feature fall trends for young shoppers, such as Battle Gear, Girly Grunge, Biker Chic, and Sweet Dreams, as well as exclusive and new brands for juniors, such as Bongo, Rebecca Bon Bon, and Amplify.

Beginning July 29, Sears is conducting a national search for a Now + Here Rock the Scene reporter to kick off the destinations.

• Music fans must submit an online audition video touting their personal style and demonstrating why they should be chosen as a reporter to compete for a top 20 entry.
• The top 20 entries will receive a Live Nation 30-Day Ultimate Access Pass and be named Now + Here Rock the Scene reporters. Those who generate the best content over their 30-day music tour will be awarded a Live Nation 2011 Ultimate Access Pass and a USD 5000 cash prize.
• Live Nation will also host 17 live audition events in Sears stores in Chicago, Los Angeles, New York, San Francisco, Seattle, and Washington, D.C.; the first 500 consumers to audition in-store will receive USD 50 Concert Cash to a Live Nation concert of choice.
• In addition, Sears will host three in-store concert events featuring artists such as Jason Derulo, Travie McCoy, and B.O.B.

Source: Sears (July 29, 2010)

Coexist by Cannon, a new collection of urban-inspired dorm fashions for teens, will be sold exclusively at Sears and Kmart stores this year.

• The collection includes bedding and décor; bedding designs include Love Generation, Sound Wave, Houndstooth Hearts, and Typography.
• The Kmart Home Design team showcases the new line through a series of dorm room makeovers and how-to videos on http://www.kmartdesign.com/.
• Additionally, Coexist brand ambassadors will visit select US campuses, handing out Coexist backpacks that include a product catalog.

Source: Sears Holdings (July 27, 2010)

As of July 26, 2010, Sears Holdings operated approximately 3,900 full-line and specialty retail stores in the US and Canada.

Sears and Kmart have introduced an interactive digital program, Campus 2010, designed to ease the transition for college-bound students and enhance customers’ multi-channel shopping experience.

• Campus 2010 is centered around a “Sears Campus Connection” Facebook page, serving as a resource for teens preparing for college.
• Examples of features available to college-bound students on the Facebook page include a wish list, which operates like a wedding registry, and an application for finding soon-to-be dorm roommates, with the ability to coordinate and shop for a dorm room online.
• In addition, the page provides a forum for students to chat with future classmates and friends online on campus-related issues, such as class schedules, college expectations, and dorm necessities; students enrolled at Indiana University lead and moderate the discussions.
• A Campus Connector application also allows students to tag high school friends, future roommates, and new college friends, broadening their social network.

Source: Sears Holdings; Facebook (July 27, 2010)

Sears and Kmart are bringing back the Christmas Club card to help consumers with holiday budgeting.

• Customers can use the card across all Sears and Kmart platforms, including online, in-store, and for paying off layaway; there are no fees associated with the card and the value will not expire.
• Users who activate the card by October 31, 2010, will earn a 3% reward, up to USD 100, based on the value obtained on their card on November 15, 2010; this reward will be added to cards by November 24, 2010.
• Customers can activate or add value to their cards at any Sears or Kmart store or online; cards can be activated with a minimum of USD 5 and redeemed at Sears, Kmart, Lands’ End, and The Great Indoors stores, and online.
• Customers who participated in last year’s Christmas Club can transfer remaining money from their 2009 red Christmas Club card to the new gold 2010 Christmas Club card.

Source: Sears Holdings (2010)

Sears Holdings operated approximately 3,900 full-line and specialty retail stores in the US and Canada, as of July 21, 2010.

Supervalu has reported its financial results for the first quarter ended on June 19, 2010. For the quarter, overall sales declined 9.2% to approximately USD 11.5 billion.

• Retail food segment sales comprised 77.5% of overall sales, down from 77.6% of overall sales in the first quarter of 2009. Supply Chain Segment sales were 22.5% of sales, up from 22.1% of sales for same period last year.
• Net earnings were USD 67 million, down 40.7% for the same period last year, which was USD 113 million.
• Gross margin grew 10 basis points (bp) to 22.5 % of sales, or approximately USD 2.6 billion. The increase was driven by more effective promotional spending but was partially offset by price investments.
• Selling, General, and Administrative (SG&A) expenses grew 30 bp to 19.9% of sales.
• Operating profit was USD 301 million, down 16.9% since the first quarter of last year.
• Total debt to capital was 72%, compared to 73% at the end of fiscal 2009. Supervalu remains in compliance with its debt covenants.

Retail Food Segment Results:

• Sales declined 9.6% to USD 8.9 billion.
• Identical store (ID) sales decreased 7.2%.
• Retail square footage decreased 6.1%.
• Operating profit decreased 19.3% to USD 251 million, or 2.8% of sales.

Supply Chain Segment Results:

• Sales declined 7.9% to USD 2.6 billion.
• Operating profit declined 3.7% to USD 79 million.

Fiscal 2010 Guidance

• Net sales are expected to be USD 38 billion.
• Non-fuel ID sales are expected to decline 5.0%.
• Supply chain sales are expected to decline 3.0%, driven by the final transition of Target to self-distribution and Ahold’s acquisition of Ukrop’s.
• Capital expenditures are expected to be approximately USD 700 million, which comprises 60-75 major remodels, 30-40 minor remodels, 2 replacement stores, and 100 Save-A-Lot stores
• Debt is expected to be reduced by USD 600 million.

As of July 27, Supervalu operated approximately 2,350 retail grocery locations and supplied approximately 1,920 independent locations.

Target appointed Matt Zabel, 42, as Vice President of Government Affairs. effective August 23.

• Zabel joins Target from serving as Chief of Staff since 2004 for U.S. Senator John Thune’s office.
• He has also served various roles in the U.S. Senate, U.S. Department of Justice, and as an adjunct law professor at George Mason University.
• Zabel will be based in Washington, D.C., and oversee teams in Minneapolis and D.C.

Target operated 1,743 stores in 49 states, as of July 23, 2010.

Fresh & Easy has announced that it will source more produce from California to its local stores, through its “Farm to Store in 24” programme.
• Depending on the time of year Tesco states that up to 65% of its produce in its California stores is sourced locally.
• To inform customers when produce is available on shelves within 24 hours from leaving the farm, Fresh & Easy places a special logo on "Farm to Store in 24" products.

Walgreens has begun to promote flu shots, introducing gift cards, good for one flu shot, which can be purchased for USD 29.99. Walgreens kicked off last year’s flu shot program in early September, offering seasonal vaccinations for USD 24.99. In 2009, Walgreens administered 5.5 million seasonal flu shots and 2 million H1N1 vaccinations. In the first quarter of 2009, Walgreens comparable-pharmacy sales benefited from the flu shot program by 1.1%. The retailer expects to have a stronger 2010 flu shot season, with 23,000 certified pharmacists on hand, 6,000 more than last year.  

Duane Reade announced the promotion of Joe Magnacca, Executive Vice President and Chief Merchandising Officer, to President. Chief Executive Officer John Lederer will continue to work with John Spina, Walgreens Vice President of Retail Integration and New Format Development, on the integration.   

Walmart.com now offers a flat rate of 97-cent shipping on single orders containing health & beauty items. This is available only for the 48 states within the continental US. Previously, added shipping rates were applied to each item ordered instead of the overall basket.

After a vote by the city council of 41 to 4, Walmart has received the go-ahead for plans to build another store in Chicago. The site for the retailer’s third store in the area is located at 83rd and Stewart in Chatham.

Walmart is set to test putting removable radio-frequency identification (RFID) tags on individual pieces of clothing. The aim is to help the retailer better monitor inventory, enhance shelf stocking, and reduce shrink.

Walmart announced a “long-term strategic partnership” with Seventh Generation, makers of eco-friendly cleaning products. Components of this plan include:

• Offering the cleaning products at over 1,500 Walmart stores and on Walmart.com;
• Informing audiences at Walmart's mom blogs, Facebook, and the 7GenBlog about environment-friendly means to help families "live better";
• Leading education and sharing best practices with the industry through involvement in Walmart's Chemical Intensive Products Sustainable Network; and
• Helping to develop the sustainability index through involvement with the Sustainability Consortium.

Effective yesterday, Walmart’s General Manager of apparel, Dottie Mattison resigned from her position. She had reported into John Fleming, Walmart’s Chief Merchant who is set to leave the company August 1, 2010. The other head of the retailer's apparel division, Senior Vice President Lisa Rhodes, was appointed to her role earlier this quarter.