Tag: USA

Localized customer specific strategies provide competitive edge for retailers

Posted by | Jul 2, 2007 | |

For retailers, there’s nothing more important today than precisely understanding local markets. Trying to serve the average consumer is a quick ticket to commoditization and earnings pressure for retailers.

Sure, companies can still be profitable using the old retail model. But in today’s marketplace, the road to increased market share, higher profit margins and stronger customer loyalty begins with a localized, consumer-centric strategy.

For some retailers this means a fundamental transformation in the way they approach their business. To succeed, companies must make informed, data-driven decisions by positioning the customer in the center of their universe.

Take this example: two stores are virtually identical. Both are 30,000 square feet, do about USD 6 million in volume a year and have about 3,800 customers a week. The surrounding population for both has a median household income of USD 80,000 and median age of 40.

The customers for both stores probably view the same ads and experience the same merchandise and store presentations. Yet, both stores may be sub-optimizing their performance.

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Wal-Mart, Home Depot, Kroger triumph in Top 100 retailers list

Posted by | Jul 2, 2007 | |

Retail giant Wal-Mart, home-improvement chain Home Depot and grocery chain Kroger have topped the list of Stores Magazine Top 100 Retailers ranking.

The annual report, conducted by Stores, the monthly magazine of the National Retail Federation, ranks companies in all segments by revenue.

Bentonville, AR-based Wal-Mart again ranked No. 1 with 2006 revenues of USD 348.65 billion, an 11.7 percent increase over the previous year. Wal-Mart’s revenues were greater than those of the next five largest US retailers combined.

Home Depot and Kroger retained their second and third spots, respectively. Despite a troubled year, which saw the departure of CEO Robert Nardelli, Home Depot gained 11.4 percent in total revenues in 2006. Kroger’s 2006 sales rose 9.2 percent over 2005 to USD 66.11 billion.

Costco came in at No. 4, up from last year’s fifth place, thanks to increasing its private-label offerings with a new line of food conceptualized by Martha Stewart. Costco’s revenues increased 13.6 percent in 2006 to USD 60.15 billion.

Mass merchants Target and Sears came in fifth and sixth. Target advanced a spot in the ranking with a revenue increase of 13.1 percent to USD 59.49 billion. Sears dropped two spots despite a 7.9 percent revenue increase to USD 53.01 billion.

Drug stores are also represented in the top 10. Walgreens rose one spot to No. 7 after aggressively adding freestanding store locations and focusing on front-end merchandise. CVS, which took ninth place and is a new entry to the top-10 list, acquired Caremark Rx in an attempt to upgrade pharmacy services.

Other companies in the top 10 include Lowe’s, which dropped one spot to No. 8, and Safeway, which retained its spot at No. 10.

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Market forces raise the bar for delivery

Posted by | Jul 1, 2007 | |

While retail web sites work to differentiate themselves from stores with web-only features, personalized services, detailed imaging and other tactics, there always will be one thing that separates sites from their braicks-and-mortar counterparts: a reliance on delivery services to fulfill online customers’ orders.

And as shoppers have become more accustomed to online retail, their expectations of timely and reliable delivery services—across a variety of delivery options—have only increased. A comprehensive shipping policy has become a crucial part of e-retailing, experts say.

“A critical component of the online checkout process is the determination and selection of a shipping option,” says Rob Garf, vice president of retail strategies at research and advisory firm AMR Research Inc. “Retailers must offer multiple delivery methods, including overnight, ship-to-store and split shipments, and be crystal clear regarding cost and timeframe.”

For Internet retailing, the average postal rate increase comes to about 6 pct, says David Marinkovich, senior vice president of sales and marketing at DHL Global Mail. “The cost of fuel is having a big effect on retail shippers, but the Postal Service rate change that went into effect May 14 is the most dramatic postal rate change ever,” he says. “Some retail organizations that sell products like CDs, video games, books and apparel are looking at rate increases of about 54 pct.”

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Agreement in principle between TNT and unions on collective agreement on employment mobility

Posted by | Jun 29, 2007 | |

TNT and the unions (ABVAKABO FNV, CNV Publieke Zaak, BVPP and VPP) today reached agreement in principle on a new collective agreement on employment mobility. This new employment mobility agreement will make it possible to deal with the consequences of the impending reorganisations in a socially responsible manner.

The collective agreement on mobility applies to some 60,000 TNT employees in the Netherlands and runs until 1 January 2011. The unions intend presenting the agreement to their members with a recommendation that they approve it.

The collective agreement on mobility comprises measures to minimise the need for redundancies. The measures focus, for example, on encouraging mobility from one job to another and providing full assistance to employees looking for a job outside the TNT organisation. TNT’s Mobility department will play a major role in all this.

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