Supply Chain & Merchandising

It’s official. Amazon is raising the membership fee for Prime and Student Prime customers.

The company sent out emails today to Prime and Student Prime consumers letting them know of the new fees. Prime customers will be paying an annual rate of $99 whenever their membership renews — that’s up from $79 per year.

Student Prime consumers will pay $49 a year, up from $39. Students with questions about renewal rates should click here for details.

Retailers and CPG companies faced with the twin pressures of low inflation and a lack of volume growth are discovering new methods of driving profit improvement from some surprising sources within their supply chains.

Cincinnati -- The Kroger Co. said Thursday that it will buy back up to $1 billion of its shares. The repurchase program replaces its existing plan, which had roughly $2 million remaining.

Kroger also declared a regular quarterly dividend of 16.5 cents per share, payable June 1 to shareholders of record May 15.
During the last four quarters, Kroger has used its strong free cash flow to return more than $928 million to shareholders through share buybacks and dividends.  

Walmart deepened its commitment to domestic sourcing and supply chain efficiency on Thursday when Walmart U.S. president and CEO Bill Simon unveiled a first-of-its-kind RFP process and a new Innovation Fund.

Both revelations came at an event Walmart holds each spring in Orlando known as the Year Beginning Meeting, or simply YBM. While much of the several day event is focused on Walmart store managers, a portion is devoted to trading partners who are given the opportunity to hear from top executives.

Gardendale, Ala. – Independent grocer cooperative ROFDA, the Retailer Owned Food Distributors & Associates, has appointed Park City Group director of business development Christina Romas to its seven-member advisory council. ROFDA’s advisory council was created to provide the organization’s leadership team with input, information and feedback representing the interests of ROFDA’s associates and suppliers in support of its mission.

San Jose, Calif. – EBay is making updates to its seller performance standards and returns policy designed to promote and safeguard top-level sellers and also ease returns.

Verifi, a leading provider of global electronic payment and risk management solutions for card-not-present merchants, and ReD (Retail Decisions), a leading global fraud prevention services company, have agreed to jointly develop new products and solutions to benefit CNP (card-not-present) merchants.

Orlando, Fla. -- The digital marketing initiative known as “My Weekly Ad” is helping CVS Caremark grow sales and deepen engagement with loyal customers by providing them with personalized versions of the retailer’s weekly ad.

The My Weekly Ad program was launched last fall, and Wednesday morning during a presentation at the IRI Summit CVS Caremark senior VP of merchandising and retail pricing Judy Sansone shared additional details regarding the program.