The Nation’s Hottest Retailers
Source: (Stores Magazine August, 06) 

August is an appropriate time to be reading about things hot, so here are a hundred of them: STORES magazine’s Hot 100 Retailers, the companies with the highest year-to-year sales percentage gains. Nearly a third of them are apparel retailers; another 10 don’t even operate stores. Wal-Mart, of course, is the biggest name on this list, but it is nestled in 78th place, while the smallest -- Shoe Pavilion, with sales of $102.5 million, is No. 26. Inclusion on the list is limited to publicly-held companies (so that the figures can be verified) with revenues of at least $100 million.

While the Hot 100 retailers are both large and small, fewer than half of them were also included among last month’s Top 100 Retailers. Specialty retailers dominate the Hot 100, but there are also five department store companies, five supermarket operators and five big-box value retailers. There are more shoe chains than home goods retailers, but even more sporting goods dealers than either of them.

Not included are video rental companies, rent-to-own retailers, professional/contractor-oriented dealers, showroom operators, subsidiaries of foreign companies or chains with non-retail corporate parents.

 

Variety is the ingredient spicing the moves made by retailers to grow their sales volumes at high double-digit rates. Mergers and acquisitions was the trail trod by three of the first five companies on the inaugural STORES Hot 100 chart. Other retailers opened a raft of new stores or ramped up multi-channel efforts. The best, and preferred, manner of boosting sales is by providing the goods consumers want so more of them come through the door (or portal, if you will) and spend more money than they have in the past, improving comps, or, as they are often referred to by industry watchers, “all important same-store sales.”

 

Topping the list with a 67.8 percent sales gain is GameStop, enjoying the synergy of the 2005 acquisition of rival EB Games (Electronics Boutique), as evidenced by the 65.4 percent earnings increase to go along with the big sales jump. GameStop is a product of the dot-com boom of the 1990s, when chains such as Babbages, Software Etc. and Neostar Retail were peddling computer applications software and games to the public.  Full Story:  Click Here

 

 

Wrigley Makes Over Gum Strategy
Source: (Chicago Tribune, August 6, 2006)

The Wm. Wrigley Jr. Co has hired its first chief marketing officer, opened an impressive new research and development center and launched at least eight new products this year in order to transform the company and better compete with Cadbury-Schweppes and The Hershey Co. Wrigley's revenue in the past six months is up 15% compared to a year ago, the company reported. Full Story:  Click Here (free registration)
Wrigley will present their TPM success with SAP at the TPMA Annual Conference in Chicago, September 25-27th, 2006

 

Progressive Strategies Enter the Mainstream
Source: (AdWeek August 07, 2006)

For big marketers, using a mix of nontraditional communications channels is nothing new, but there is growing evidence that what was once considered experimental consumer outreach is fast becoming mandatory strategy.

From packaged-goods marketers to automotive companies, heavy reliance on TV is being reconsidered, as tactics previously seen as ancillary grow into mainstream priorities. Recent Adweek interviews with executives associated with a dozen major brands, which collectively spend more than $9 billion annually in major media, revealed that such clients are rethinking not only how they use TV, but are also upping the ante on emerging media, such as viral campaigns, wireless messaging, blogs and podcasts.

This week, for instance, Acura launches its first turbo-charged crossover vehicle, the RDX, with a program that combines elements of viral, Internet and mobile marketing. The effort encourages consumers to take pictures of the car's print ads ("image tagging") and upload them to Acura's Web site, where image-recognition software will enter those participants into contests, send them e-vites to events and offer them ringtones.

Johnson & Johnson, meanwhile, sat out of network TV's upfront market this spring in part to expand a more customized four-year-old programming deal—whereby the client funds production and sponsors certain shows—with Time Warner.

For P&G's Folgers brand, the company recently launched a "Tolerate Mornings" initiative in the U.S. that has a Web application, which uses a short film, screen saver and "boss tracker" downloads, as well as a mobile component that sends a wake-up call to consumers' phones.

P&G considers the campaign a success: It has received over 100,000 hits to the Web site, toleratemornings.com, and the film has been viewed several hundred thousand times on other sites like YouTube.com. (Mainstream media like the New York Times, CNN and CNBC have generated publicity through their coverage.)  Full Story:  Click Here

 

Unilever Tests New RFID Software Standard
Source: (Food Navigator, August 6, 2006)

 

Unilever is testing a newly developed software standard designed to help retailers and manufacturers share data throughout the supply chain using radio frequency identification (RFID) technology. 

IBM and T3Ci last week announced they had successfully completed testing the new RFID software standard to insure it can be used with products from other manufacturers.  The new software standard will allow companies to query RFID data providing them with near real-time data from their trading partners. This will give manufacturers access to the precise information they need for the first time, IBM stated.

Unilever North America is currently testing the standard to query RFID data provided by retailers.  Unilever will also conduct a trial of the standard to collect and access information from within the company's manufacturing units and from trading partners.

A unified data system would allow changes in information about product sizes, weight, name, price, classification, transport requirements and volumes to be immediately transmitted along the supply chain.

Nestle, Coca-Cola, PepsiCo, Hormel Foods, Kraft, Unilever, Wegmans Food Markets and Sara Lee are among the food companies that have signed up to implement the system.

RFID has long been touted as the future of logistics for all companies by allowing retailers and suppliers to track goods throughout the supply chain.

However high prices for tags and systems has held enthusiasm at bay. Privacy concerns have also limited its use at the consumer level. However mandates from such giant retailers as Wal-Mart and Metro are slowly forcing processors to make investments in the system.  Full Story:  Click Here
OatSystems will present integrating RFID with your TPM initiatives at the TPMA Annual Conference in Chicago, September 25-27th, 2006

 

 

Conagra Sells Refrigerated Meat Brands
Source: (Drug Store News, August 07, 2006)

ConAgra Foods last week signed a definitive agreement to sell its refrigerated meats businesses to Smithfield Foods for approximately $575 million.

The sale includes the Butterball, Eckrich, Armour, LunchMakers, Margherita and Longmont brands, as well as most associated assets including plants and inventory. Combined annual sales for the businesses sold are about $1.8 billion, according to the companies.

"This sale is a significant milestone for ConAgra Foods, and part of an ongoing process to simplify our operations and to focus our efforts on areas of our portfolio where we have the greatest opportunities," said Gary Rodkin, ConAgra Foods president and chief executive officer. "It is a key catalyst in our plans and allows rapid progress on cost initiatives needed to fuel our future growth. I am delighted we were able to reach an agreement well in advance of our estimated timetable and for a fair value."

The deal calls for Smithfield to pay $475 million in cash, subject to adjustments in working capital, and $100 million in Smithfield Foods stock that is not subject to any sale restrictions, minus transaction costs.

 

 

 

Upcoming Events:

 

 

VCF Executive Management Series - Strategies in Growing Vendor Margins   August 24th – New York City – 8:30 AM - Save the Date! 

 

The Vendor Compliance Federation (VCF) is hosting an executive tailored program on August 24, 2006 at the Union League Club in New York City.  Our well-versed presenters will provide profit generating insight in a half day program that is designed to fit the busy schedules of executives who attend.  Hosting our event at the historical Union Club is the prefect venue for discussing best practices that can lead to greater margins and allows executives to be back at their desks by noon. 

 

VCF members are encouraged to attend for $199.  Non-members can register at $299.  To register and see our agenda, click here.

 

We look forward to seeing you on August 24th.  For more information, please call Anthony Miano at 646-442-3701. 

 

 

 

 

  

 

 

Retail Vendor Synchronization: Tactical Deduction Strategies for Key Customers
September 6, 2006 - September 7, 2006, Teaneck, NJ

 

Our conference is one of education, networking and awareness. See how to implement tactical deduction strategies using best practices, technology solutions and tools that can enhance a more efficient and cost effective supply chain.  This program is jointly hosted by the American Apparel and Footwear Association and the Vendor Compliance Federation.  

 

Our speakers are industry leaders discussing topics that matter most to your financial health.  Hear from Paul Charron, Chairman & CEO, Liz Claiborne Inc. share his insights on Trading Partner Relationships, a critical and key factor to remaining competitive in today’s retail environment.

 

Our second keynote speaker is Steve Hochman, Research Director, AMR Research.  Steve will present the tactics of "Fast Fashion: Zara & Beyond" providing attendees the important takeaways that this innovative retailer is using to improve supply chain performance to generate increasing profits! 

 

Click here to register and view detailed agenda.

 

 

 

 

 

 

 

TPMA Annual Conference: Proving the Value of Trade Promotion Management 

September 24-27, 2006, Chicago, IL

You don’t want to miss this event!

 

Join us in Chicago, September 25th-27th for TPMA’s Annual Conference to profit from industry experts and their shared insight. 

 

Learn from:

 

Chiquita Fresh Express and Synectics Group how they have gotten a handle on deductions

Wrigley’s and SAP on Integrating TPM to Drive Profitable Brand Growth

Verizon Wireless and ACB on Driving Strategic and Efficient Co-op Advertising Spending

Pinnacle Foods and MEI on Finding Success in Trade Promotion Management

 

Of equal value don’t miss the opportunity to network with your peers (including: Campbell Soup, Trader Publishing, Dial, McCain Foods, Hartmarx, AAFES, and Newell Rubbermaid, etc.) to share successes and build relationships across industries and channels.  SAP will take us out to the ballgame on Tuesday evening as we overlook Wrigley Field from our private rooftop event.

 

The first 100 people to register for the TPMA Annual Conference in September receive a complimentary copy of Bob Houk’s new book (17 copies left), “Trade Promotion Marketing”.  

 

Write to Mike Kantor at mkantor@tpcww.com for more information.

 

 

 

 

 

 

 

VCF Global Conference – Retail Trading Partners Unite!

November 5-8, 2006, Scottsdale, AZ

Are you struggling with deductions?

 

Do you want to prevent future deductions from occurring?

 

Then attend the VCF Global Conference at the Camelback Inn November 5-8, 2006! 

 

Retail trading partners will unite at the Camelback Inn and create new growth opportunities, learn how to reduce system disconnects and seamlessly execute their supply chains to the delight of every consumer they serve,  all the while learning how to prevent future deductions. 

 

Confirmed retailers attending so far...

  • AAFES
  • Big Lots
  • Circuit City 
  • Dillards
  • Kohl's
  • and more are confirming every day!

Register today and save your spot! Remember, members attend for only $695 - a $1000 savings off the non-member rate.  To register for the conference, click here.

 

Don't forget to make your hotel reservations now because rooms are already being booked!  To make your hotel reservations, call the Camelback Inn at 1-800-242-2635 for the negotiated rate of $245/night.  Reference the Vendor Compliance Federation to secure your special rate.

 

If you have questions, call Anthony Miano at 646-442-3701 or write to amiano@vcfww.com.

 

 

 

 

 

Write to Mike Kantor at mkantor@tpcww.com for more information.