Marketing Tactics

Wages not the only thing rising at Starbucks
One day after announcing a general salary increase for all U.S. corporate store employees, Starbucks Corp. is preparing to increase some prices. As of July 12, Starbucks made what it calls a “small price adjustment” in U.S. company-operated stores. Depending on the market, customers will experience increases of 10 to 20 cents on select sizes of brewed coffee, and 10 to 30 cents on espresso beverages and tea lattes.
Forecast for back-to-school spending is sluggish
After two years of benefitting from gasoline price tailwinds, still-stressed consumers will generate only a sluggish 3.3% year-over-year increase in this year’s back-to-school sales, according to Customer Growth Partners’ 14th Annual BTS Forecast. Total BTS sales for the season will reach $540 billion — a new record, but the lackluster 3.3% growth represents a marked slowdown from the 4%-plus BTS growth seen in both 2014 and 2015, when sales were boosted by declining gasoline prices.

Amazon Prime Day starts with some hiccups

Online checkout problems are indicative of heavy e-commerce traffic, but still were not what Amazon.com hoped to see in the first hours of Prime Day. According to multiple media reports, a glitch was causing problems for some U.S. and U.K. consumers attempting to check out their Amazon purchases the morning of Tuesday, July 12. Numerous shoppers tweeted their frustrations using hashtags such as #PrimeDay and #PrimeDayFail. A sampling of tweet complaints includes:
Newegg takes another step into the physical world

Newegg.com is expanding its physical footprint, this time in Canada. The online electronics retailer opens its Hybrid Centre in Richmond Hill, Ontario on Friday, July 15. The facility serves a dual purpose of allowing customers to pick up their will-call orders, as well as browse tech products or attend an educational seminar. Some of the products on display are available exclusively through Newegg, many of which are making their North American debut at the Hybrid Centre.
This retailer satisfies appliance shoppers

Consumers have spoken, and they have a favorite chain when it comes to buying appliance products.
C-store giant looks to reduce energy use

7-Eleven has set itself new energy conservation goals. The world’s largest convenience store chain, in collaboration with Conservation International, has committed to reducing its energy footprint in stores by 20% by 2025, and also reducing its packaging footprint by 20% by 2025.
Another retailer enters Prime Day battlefield

Walmart is not the only big-name retailer preparing a July 12 online sales extravaganza. Toys “R” Us is launching an online discount event so simple even a child could take advantage of it. All day Tuesday, July 12, shoppers on the Toys “R” Us and Babies “R” Us e-commerce sites can receive 15% off regular-priced items. There will also be more than 50,000 toys and baby products on sale sitewide.
Barnes & Noble adds attractive concept to campus stores

Barnes & Noble has previously ventured into new product categories such as e-readers and toys and games, but the bookseller is going further outside its established niche than ever before.
Michaels membership has its privileges

Specialty arts and crafts retailer The Michaels Companies Inc. knows that customer loyalty is not its own reward.
Havertys Q2 sales spring upward

A shift in the timing of a major holiday was cause for celebration at home furnishings retailer Havertys Furniture Companies Inc. Sales in the second quarter of fiscal 2016 at Havertys rose 4% to $194.8 million, from $187.7 million the same period a year earlier. Same-store sales increased 2.8%. Written total and same-store sales for the second quarter both rose 6%.
Walmart steps up Prime Day competition

Walmart was offering its own July online savings event before Amazon Prime Day was officially announced, and now the discount giant is sweetening its deal. Walmart is offering all customers free shipping with no minimum purchase on its e-commerce site from Monday, July 11 – Friday, July 15. This builds on a previously announced online promotion that offers a free 30-day trial of the retailer’s ShippingPass program, which provides consumers unlimited, two-day free shipping for a year.
Ralph Lauren turnaround plan evokes Ford Motor’s comeback

Beset by declining sales, growing competition and changing consumer tastes, Ralph Lauren has launched an ambitious turnaround plan that includes a heavy brand emphasis.