Data & Analytics

The recipe for success in food retail is changing at breakneck speed. Economic drivers, such as commodity deflation, make revenue growth difficult. At the same time, demographic trends – including the rise of both millennials and centennials – undermine tried-and-tested business models. And now they are faced with the game changing move by Amazon with its planned acquisition of Whole Foods.  

Walmart is making big moves to ensure that it can serve Chinese shoppers efficiently during a crucial timeframe.    The discounter is further integrating its platform, supply chain and customer resources in China with partner JD.com — efforts that will prepare the companies to serve shoppers during the launch of the first JD-Walmart 8.8 omnichannel shopping festival on Aug. 8. The event will offer savings across all the different JD and Walmart channels, and reward customers for shopping multiple touchpoints. 

Walmart is streamlining how its third-party suppliers connect with its marketplace.    Acenda announced Wednesday that it has integrated with Walmart.com's global marketplace, connecting Acenda store owners and third-party sellers with Walmart's significant customer base.  Acenda now helps retailers and brands optimize their product listings across major marketplaces including Walmart, Amazon, Google and eBay as well as leading retailers.  

Walmart is stepping up efforts to drive energy efficiency across its distribution network.   The discount giant is adopting fuel cells and hydrogen stations from provider Power Plug — a move that will bolster its energy efficiency at up to 30 more locations. Walmart already has Plug Power fuel cells installed at 22 distribution centers, according to USA Today.  

One investor wants Barnes & Noble to embark on a new chapter — with a new owner.   Activist investor Sandell Asset Management issued a letter to Barnes & Noble’s board of directors on Tuesday, urging the company to sell itself. The firm believes a sale would not only improve the value of the brand, but protect itself against a volatile marketplace that continues to take a toll on sales.   

Strong performance across its largest global brands, digital and international divisions lifted VF Corp.'s profits in the second quarter.    For the quarter ended July 1, VF Corp.’s revenue increased 2% to $2.4 billion, surpassing the Zacks Consensus Estimate of $2.289 million. While earnings per share dropped 11% to 29 cents, this still beat analyst expectations of 28 cents.   The company’s direct-to-consumer division’s revenue increased 13%. Digital revenue jumped by 34%.

Despite what is shaping up to be a rough second quarter, Hibbett Sports is making a move to streamline its operations.    Days before its second quarter ends on July 29, Hibbett Sports is blaming very challenging sales trends for an approximate 10% decrease in comparable store sales. The decline in sales, along with significant pressure on gross margin is expected to result in a loss of $0.19 to $0.22 per diluted share for the second quarter. The company will release its earnings on Aug. 18.  

Wages

USDOL Tip Pooling Rule: The Labor Department will propose rescinding its regulations for tip pooling. The Obama administration issued rules that prohibited employers from redistributing tips to non-tipped employees, such as "back of the house" workers. Business groups oppose the rule and an association-backed lawsuit is still pending in the courts.

Amazon is working with government officials to head off a lengthy deal investigation.   Amazon will re-file documents this week seeking government approval of its planned purchase of Whole Foods Market for $13.7 billion. The move will restart the process, giving U.S. antitrust enforcers more time to complete an early review of the retailers’ planned tie-up, according to the Wall Street Journal.  

Customers that shop at both Amazon and Whole Foods Market are the most upbeat about the online giant’s purchase of the natural foods grocer.   This was according to a new GfK report that was conducted among 1,000 US adults (ages 18 and above) using KnowledgePanel, the company’s probability-based online panel that represents the adult U.S. population. Responses were collected from June 23-26.