Posted by Barry Silverstein on January 31, 2013 10:05 AM
JCPenney has reversed its "Fair and Square Pricing" concept of a year ago, which slashed prices across the board and did away with sales. In its place, the retailer is bringing back — you guessed it — sales.
JCPenney will again offer "targeted discounts at certain times throughout the year," as it did in the past, according to Reuters. The U. S. retailer will also post signs on the majority of its merchandise, showing shoppers the amount of money they're saving on items purchased at Penney.
To some extent, the reversal rebuffs the efforts of chief executive Ron Johnson, formerly of Apple and Target, who joined JCPenney in late 2011.
Last year at about this time, Johnson outlined ambitious plans to turn the 110-year old company into a modern day low-priced retailer better able to compete with the likes of Target and Walmart. The store updated its logo for the third time in three years, announced partnerships with designers and fashion brands, tapped Ellen DeGeneres to be its brand ambassador, and (most portentously) did away with merchandise sales.Continue reading...
Posted by Mark J. Miller on January 30, 2013 12:07 PM
What will Hilco Consumer Capital do now that it has iconic music retailer HMV in its hands?
The company, which has previously acquired several other struggling brands like Polaroid, Borders and Linen 'n' Things, recently took over the bankrupt firm, paying off its £176m ($277.45 million) in debt to Lloyds and Royal Bank of Scotland.
The long-enduring HMV chain has 240 stores in Britain, Ireland, Singapore and Hong Kong, with about 4,000 employees in all. (In 2011, Hilco took in HMV's Canadian operations.) Its struggles come after Blockbuster, Tower Records and other once-dominant music and video retailers have declined or died off as digital delivery and online ordering continues surged.
Hilco is supported by media companies like Sony Pictures, 20th Century Fox, Universal Music and Warner Music, all of which will likely play a big part in the next step. Retail-Digital.com reports that those companies “have offered to cut the price of DVDs and CDS and are even considering offering the retailer better credit terms.” That could soon mean good deals for consumers.
Posted by Sheila Shayon on January 29, 2013 06:46 PM
Target is taking "online only" to a new level.
Last week, the retail giant hosted the Target Everyday Show, an interactive event on Twitter leveraging its tongue-in-chic “Everyday Collection” TV campaign by creating a virtual runway show that drew on people’s tweets about everyday products submitted via hashtag.
Calling the event its Tweet-to-Runway Show, Target chose its favorite tweets by fans to be featured on its YouTube channel and on a microsite, EverydayShow.com.
Witty tweets won the day, including “Why does my chocolate milk taste like bananas?” as one tweet chic model asked to the camera. “Monday, you saucy minx you. Coffee me,” cited another.Continue reading...
Posted by Dale Buss on January 29, 2013 06:28 PM
Amazon reported weaker-than-expected sales and earnings for the fourth quarter on Tuesday.
But investors quickly seemed to give the online-retailing giant a pass — partly because they figured the results reflected general economic reality, and partly because Amazon continues to be an unrivaled, trailblazing juggernaut that keeps all its competitors on their toes.
Revenue jumped 22 percent during the quarter to more than $21 billion, but fell short of analysts' expectations of more than $22 billion. And Amazon's profits were just $97 million during the period, compared with $177 million a year earlier.Continue reading...
Posted by Mark J. Miller on January 29, 2013 02:04 PM
Reebok is expanding its push in India, with large marketing campaigns, new products and tie-ins to big national sports stars.
The move comes as analysts say India, with more than 1.2 billion people, is ripe for market expansion. The India market research firm RNCOS found that the “Indian sports apparel market was set for annual growth of around 34% during the 2010-14 period.”
Seems like it’s a good time for Reebok to capitalize, especially since another report found that 15- to 24-year-old Indians labeled Reebok owner Adidas “the nation’s second ‘most exciting’ brand behind soft drinks giant Coca-Colas.”Continue reading...
Posted by Mark J. Miller on January 25, 2013 03:07 PM
In the United States, 7-Elevens aren’t exactly known for their funky appearance. But in Sweden, convenience-store consumers will be experiencing a completely different aesthetic in 2013 as the brand undergoes a groovy redesign there.
Stockholm was the location of the chain’s first European shop in 1978. Now its Swedish locations are getting an overhaul that started rolling out in December, using the company’s green and orange color scheme as its foundation in a highly minimalist way.
Green-and-orange striping abound on the chain’s cups, napkins, and bags, while green also adorns store walls, making the environments appear warmer than their antiseptic American counterparts.Continue reading...
Posted by Dale Buss on January 25, 2013 01:16 PM
Many politicians, actors and sports stars have experienced an annus horribilis. But when it comes to corporate CEOs, few have ever had as bad a year as Ron Johnson of JCPenney.
It's been about a year since the former Apple retailing executive blew into Penney's headquarters in Dallas believing that he had a secret formula that would do even more than rescue the company from its threatened place in the nation's retailing industry. Eager to start a "retail revolution," Johnson sought to simplify the company's structure and re-program the American consumer's attitude toward store pricing, discounting and promotional tactics.
A year ago today, at a splashy two-day press event in New York, Johnson outlined his vision for transforming the 110-year-old department-store chain over four years through "Fair and Square" pricing as part of a rebranding and repositioning for the company. But it's not working.Continue reading...
Posted by Barry Silverstein on January 23, 2013 02:29 PM
With the spring launch of Target's Canadian stores nearing, Walmart is paying heed to the new competition with a preemptive move of its own.
The retail giant said Tuesday it will plunk down about $450 million CAD to expand its presence in Canada, growing to 388 stores by this time in 2014.
Walmart has been in the Canadian market for years, but the anticipated opening of Target stores likely has something to do with its latest expansion plans. In 2012, Walmart invested even more than the $450 million, spending about $750 million CAD to add 46 new stores, 39 of which formerly belonged to the chain Zellers.Continue reading...