News

AUSTIN, Minn. — Hormel Foods Corporation has announced the advancement of Thomas R. Day, group VP, foodservice, to group VP, refrigerated foods.

As a result of the move, Deanna T. Brady, VP of sales, foodservice, will advance to group VP, foodservice, and Mark J. Ourada, foodservice regional sales manager, will advance to VP of sales, foodservice. These advancements will become effective Oct. 28.

Flooring specialist Lumber Liquidators reported a 14.9% second quarter same store sales increase and became the latest company to benefit from a resurgent housing and home improvement market.

Lumber Liquidators, operator of 300 stores, said total sales increased 22.2% to $257.1 million from $210.3 million during the second quarter ended June 30. Gross margins expanded to 41.3% from 37.3%, reflective of a reduced sourcing costs, higher prices and improved operational efficiencies, which translated to significant profit growth. Net income surged 67.7% to $20.4 million.

HOFFMAN ESTATES, Ill. — Kmart is offering members of its Shop Your Way loyalty program a new payment option called Pay in Store. The program launches nationally this month and allows online shoppers to reserve an item for 48 hours.

Loblaw Companies Limited — which recently announced its plans to <a href="http://loblaw/ investments bolster its Q2 Loblaw Companies Limited, which announced its plans to acquire Shoppers Drug Mart for C$12.4 billion in cash and stock, reported higher earnings and revenue in the second quarter of fiscal 2013 as compared to the same period in fiscal 2012. Lolbaw’s net earnings for the quarter totaled USD $173.2 million, up 14% from $151.8 million. The retailer reported revenues of $7.31 billion, a 2% increase from $7.18 billion a year earlier. Same-store sales improved 1.1%.

GRAND RAPIDS, Mich. — As lawyers face off in the first battle over Detroit’s bankruptcy bid, Meijer is preparing to open its first store in the economically depressed city at the Gateway Marketplace shopping center.

PLANO, Texas — Unseasonably cold and wet weather and cautious consumer spending negatively impacted business at Dr Pepper Snapple Group, which reported second quarter 2013 net sales of $1.61 billion, a 1% decrease from $1.62 for the same period last year. 

Reported income from operations for the quarter was $285 million, including $7 million of unrealized commodity mark-to-market losses. Reported income from operations was $300 million in the prior year period, including $6 million of unrealized commodity mark-to-market losses.

PURCHASE, N.Y. — PepsiCo reported net revenue of $16.8 billion for the second quarter of 2013, a 2% increase from $16.4 billion for the same quarter last year.

Structural changes, principally the refranchising of the company's beverage operations in Vietnam and China, negatively impacted reported net revenue performance by nearly 1% and foreign exchange translation had a 1.5% unfavorable impact in the quarter. Adjusted to exclude the impact of foreign currency translation and structural changes, revenue grew 4.2%.

CHICAGO — Just two months after Groupon launched its free Breadcrumb iPad point-of-sale app, the company has announced major additions aimed to provide local businesses with a pre-built, customizable experience adapted to their specific industry. 

Breadcrumb POS how offers features for a broad range of merchants, including the ability to use pre-loaded menus and inventory lists, process offline transactions, scan and redeem Groupon vouchers, track deal performance and add custom item modifiers. 

British fashion retailer Oasis lets the permanent architecture do the talking at its store in Leeds, U.K. Designed as a model for international expansion, the 2, 238-sq.-ft. space was developed for ease of installation, flexibility and efficient detailing. The walls and ceiling were constructed away from the structural shell giving a fun stage-set feel while allowing elements to become standardized with less site-specific variables. The interior has the aesthetic of a Georgian house executed in a contemporary manner. (Oasis was designed by Dalziel+Pow, London.)

By Lee Peterson, wdpartners.com

Across-the-board payroll cuts have rarely delivered margins long-term for retailers. Crude cuts are more than misguided today, but a dangerous strategy for stores in the fight for survival against Amazon.