In mid-January, Haiti was rocked by a devastating earthquake. Thousands of people have been injured or killed, homes and notable landmarks have been destroyed, and Port-au-Prince and the surrounding area have been reduced to rubble. Help is needed to guide this country and its citizens towards a path of rebuilding and recovering.
Those of us who have much-needed resources can provide help in a number of ways. Our sister publication, Viva, has collected some information on ways you can help - please visit the link below for more information.
http://www.vivamagonline.com/Haiti.html
Thursday, February 25, 2010
RESEARCH NEWS: Nutritional Supplementation May Positively Affect Adiposity in Obese Women
A study, published online ahead of print, in the International Journal of Obesity, investigated the effects of nutritional supplementation on body weight control, energy homeostatis and lipid metabolism in obese subjects. After a 26-week randomized, double-blind, placebo-controlled internveion study, subjects in the multivitamin and mineral supplement group were found to have significantly lower body weight, body mass index, fat mass, total cholesterol and lipo-protein cholesterol, as well as significantly higher resting energy expenditure and high-density lipoproten cholesterol (HDL). The results suggest that, in obese individuals, multivitamin and mineral supplementation could reduce body weight and fatness and improve serum lipid profiles, possibly through increased energy expenditure and fat oxidation.
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AB Background: Obese individuals are more likely to have either lower blood concentrations or lower bioavailability of minerals and/or vitamins. However, there are limited data on the effects of nutritional supplementation on body weight (BW) control, energy homeostasis and lipid metabolism in obese subjects. Objective: The purpose of this study is to evaluate the effects of supplementation with multivitamin and multimineral on adiposity, energy expenditure and lipid profiles in obese Chinese women. Design: A total of 96 obese Chinese women (body mass index (BMI) 28 kgm-2) aged 18-55 years participated in a 26-week randomized, double-blind, placebo-controlled intervention study. Subjects were randomized into three groups, receiving either one tablet of multivitamin and mineral supplement (MMS), or calcium 162mg (Calcium) or identical placebo daily during the study period. BW, BMI, waist circumference (WC), fat mass (FM), fat-free mass, resting energy expenditure (REE), respiratory quotient (RQ), blood pressure, fasting plasma glucose and serum insulin, total cholesterol (TC), low- and high-density lipoprotein-cholesterol (LDL-C and HDL-C) and triglycerides (TGs) were measured at baseline and 26 weeks. Results: A total of 87 subjects completed the study. After 26 weeks, compared with the placebo group, the MMS group had significantly lower BW, BMI, FM, TC and LDL-C, significantly higher REE and HDL-C, as well as a borderline significant trend of lower RQ (P=0.053) and WC (P=0.071). The calcium group also had significantly higher HDL-C and lower LDL-C levels compared with the placebo group. Conclusion: The results suggest that, in obese individuals, multivitamin and mineral supplementation could reduce BW and fatness and improve serum lipid profiles, possibly through increased energy expenditure and fat oxidation. Supplementation of calcium alone (162mg per day) only improved lipid profiles. Copyright (C) 2010 Nature Publishing Group
Source: Source: International Journal of Obesity
Published online ahead of print, doi:10.1038/ijo.2010.14
“Effects of multivitamin and mineral supplementation on adiposity, energy expenditure and lipid profiles in obese Chinese women”
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AB Background: Obese individuals are more likely to have either lower blood concentrations or lower bioavailability of minerals and/or vitamins. However, there are limited data on the effects of nutritional supplementation on body weight (BW) control, energy homeostasis and lipid metabolism in obese subjects. Objective: The purpose of this study is to evaluate the effects of supplementation with multivitamin and multimineral on adiposity, energy expenditure and lipid profiles in obese Chinese women. Design: A total of 96 obese Chinese women (body mass index (BMI) 28 kgm-2) aged 18-55 years participated in a 26-week randomized, double-blind, placebo-controlled intervention study. Subjects were randomized into three groups, receiving either one tablet of multivitamin and mineral supplement (MMS), or calcium 162mg (Calcium) or identical placebo daily during the study period. BW, BMI, waist circumference (WC), fat mass (FM), fat-free mass, resting energy expenditure (REE), respiratory quotient (RQ), blood pressure, fasting plasma glucose and serum insulin, total cholesterol (TC), low- and high-density lipoprotein-cholesterol (LDL-C and HDL-C) and triglycerides (TGs) were measured at baseline and 26 weeks. Results: A total of 87 subjects completed the study. After 26 weeks, compared with the placebo group, the MMS group had significantly lower BW, BMI, FM, TC and LDL-C, significantly higher REE and HDL-C, as well as a borderline significant trend of lower RQ (P=0.053) and WC (P=0.071). The calcium group also had significantly higher HDL-C and lower LDL-C levels compared with the placebo group. Conclusion: The results suggest that, in obese individuals, multivitamin and mineral supplementation could reduce BW and fatness and improve serum lipid profiles, possibly through increased energy expenditure and fat oxidation. Supplementation of calcium alone (162mg per day) only improved lipid profiles. Copyright (C) 2010 Nature Publishing Group
Source: Source: International Journal of Obesity
Published online ahead of print, doi:10.1038/ijo.2010.14
“Effects of multivitamin and mineral supplementation on adiposity, energy expenditure and lipid profiles in obese Chinese women”
INDUSTRY NEWS: US SUPREME COURT CLARIFIES ‘PRINCIPAL PLACE OF BUSINESS’
The US Supreme Court issued a ruling earlier this week, in which they held that a corporations "principal place of business" for purposes of federal jurisdiction is the corporations "nerve center," typically where its headquarters is located. This is a long-running - 51 years, in fact - debate in the US among the federal circuits - that is, how to answer the jurisdictional question.
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US SUPREME COURT CLARIFIES ‘PRINCIPAL PLACE OF BUSINESS’
WASHINGTON – The U.S. Supreme Court issued a ruling earlier this week wherein they held that a corporation's "principal place of business" for purposes of federal jurisdiction is its "nerve center," typically where its headquarters is located.
The Court, in an opinion by Justice Stephen Breyer, resolved a long-simmering debate among the federal circuits, which, for the past 51 years, have used a hodgepodge of tests to answer the jurisdictional question. The ruling in Hertz Corp. v. Friend will help to determine the battlefields on which class action and other litigation involving multistate corporations will be fought -- what corporations perceive to be the friendlier forum of the federal courts or state courts seen as more sympathetic to plaintiffs. While he noted that there is no perfect test, Breyer wrote, "Our test nonetheless points courts in a single direction, towards the center of overall direction, control and coordination. Our approach provides a sensible test that is relatively easier to apply, not a test that will, in all instances, automatically generate a result." The high court ruling stems from a lawsuit brought by two Hertz employees in California who are seeking damages and relief for themselves and a potential class of California citizens for violations of that state's wage-and-hour laws.
Source: Lawday
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US SUPREME COURT CLARIFIES ‘PRINCIPAL PLACE OF BUSINESS’
WASHINGTON – The U.S. Supreme Court issued a ruling earlier this week wherein they held that a corporation's "principal place of business" for purposes of federal jurisdiction is its "nerve center," typically where its headquarters is located.
The Court, in an opinion by Justice Stephen Breyer, resolved a long-simmering debate among the federal circuits, which, for the past 51 years, have used a hodgepodge of tests to answer the jurisdictional question. The ruling in Hertz Corp. v. Friend will help to determine the battlefields on which class action and other litigation involving multistate corporations will be fought -- what corporations perceive to be the friendlier forum of the federal courts or state courts seen as more sympathetic to plaintiffs. While he noted that there is no perfect test, Breyer wrote, "Our test nonetheless points courts in a single direction, towards the center of overall direction, control and coordination. Our approach provides a sensible test that is relatively easier to apply, not a test that will, in all instances, automatically generate a result." The high court ruling stems from a lawsuit brought by two Hertz employees in California who are seeking damages and relief for themselves and a potential class of California citizens for violations of that state's wage-and-hour laws.
Source: Lawday
BUSINESS NEWS: Reliv International Reports Fourth-Quarter and Full-Year Financial Results for 2009
Reliv International has reported the Company's fourth quarter and full-year financial results for 2009. Earnings per share increased in the fourth quarter of 2009 compared to the same quarter in 2008. Sales outside of the U.S. rose 9.6 percent in the quarter to $2.9 million. Approximately 75 percent of the increase in international sales was due to foreign currency fluctuations. For more on this story, check out the next issue of ihr magazine!
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Reliv International Reports Fourth-Quarter and Full-Year Financial Results for 2009
CHESTERFIELD, Mo., Feb. 25 /PRNewswire-FirstCall/ -- Reliv International, Inc. (Nasdaq: RELV), a nutrition and direct selling company, today reported its fourth-quarter and full-year 2009 earnings. Earnings per share increased in the fourth quarter of 2009 compared to the same quarter in 2008.
Fourth-quarter results
Net sales for the fourth quarter of 2009 equaled $20.7 million, a decline of 6.5 percent compared to the fourth quarter of 2008. Net sales in the United States for the fourth quarter of 2009 totaled $17.8 million, a decline of 8.7 percent compared to the same quarter in 2008. Sales outside of the U.S. rose 9.6 percent in the quarter to $2.9 million. Approximately 75 percent of the increase in international sales was due to foreign currency fluctuations.
Net income for the quarter more than tripled to $769,000 compared to $250,000 for the same period of 2008. Earnings per share increased from $0.02 to $0.06 in the respective quarters. Both net income and earnings per share in the fourth quarter of 2008 were reduced by investment losses on a private equity fund and other investments.
Income from operations in the fourth quarter equaled $1.1 million, a decline of 18.2 percent compared to the fourth quarter of 2008.
Full-year results
Net sales for 2009 were $85.4 million compared to $98.2 million in 2008. U.S. net sales in 2009 totaled $75.0 million, down 12.1 percent compared to 2008 net sales. International net sales, at $10.4 million, were down 19.2 percent in 2009 compared to 2008. Approximately 50 percent of the decrease was due to currency fluctuations.
Net income for 2009 equaled $2.5 million or $0.20 per diluted share, compared to $2.9 million or $0.19 per diluted share in 2008. Earnings per share in 2009 benefited from a significant repurchase of stock during the year. Earnings per share and net income in 2008, as noted above, were reduced by investment losses.
Net cash generated from operating activities in 2009 was $5.5 million compared to $3.7 million for 2008. Reliv had cash and cash equivalents of $5.8 million as of Dec. 31, 2009.
New distributor enrollments were up for both the fourth quarter and the full year of 2009. Quarterly enrollments rose nearly 19 percent compared to the fourth quarter of 2008. For 2009, new enrollments rose approximately 9.4 percent over sponsoring in 2008.
As of Dec. 31, 2009, Reliv had approximately 67,940 distributors, up approximately 1 percent from Dec. 31, 2008. The number of U.S. distributors as of Dec. 31, 2009, was 54,040, representing a 1.1 percent increase from the end of 2008. Reliv distributors outside of the United States totaled 13,900 as of Dec. 31, 2009, up slightly compared to Dec. 31, 2008.
Robert L. Montgomery, chairman, president and chief executive officer, said, "The recession continued to negatively affect our distributors and customers in the fourth quarter, but the impact wasn't as dramatic as in the first three quarters of the year."
Montgomery said, "We slowed the rate of our sales decline significantly in the fourth quarter, reflecting a smaller decline in the size of average orders in the quarter. Our goal, of course, is to turn that into growth in 2010," he added.
"We have a stable and slightly growing distributor base," Montgomery said. "We've kept costs under control so that when sales increase, we should see a solid increase in net income as well. I'm confident in our 2010 growth strategy to increase our brand awareness by emphasizing the role of Reliv supplements in living a healthy, active lifestyle."
Montgomery said, "The basics of our business remain strong. Reliv makes nutrition simple. Our science-based nutritional supplements are second to none, and we offer our distributors an outstanding business opportunity."
Source: RELIV press release
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Reliv International Reports Fourth-Quarter and Full-Year Financial Results for 2009
CHESTERFIELD, Mo., Feb. 25 /PRNewswire-FirstCall/ -- Reliv International, Inc. (Nasdaq: RELV), a nutrition and direct selling company, today reported its fourth-quarter and full-year 2009 earnings. Earnings per share increased in the fourth quarter of 2009 compared to the same quarter in 2008.
Fourth-quarter results
Net sales for the fourth quarter of 2009 equaled $20.7 million, a decline of 6.5 percent compared to the fourth quarter of 2008. Net sales in the United States for the fourth quarter of 2009 totaled $17.8 million, a decline of 8.7 percent compared to the same quarter in 2008. Sales outside of the U.S. rose 9.6 percent in the quarter to $2.9 million. Approximately 75 percent of the increase in international sales was due to foreign currency fluctuations.
Net income for the quarter more than tripled to $769,000 compared to $250,000 for the same period of 2008. Earnings per share increased from $0.02 to $0.06 in the respective quarters. Both net income and earnings per share in the fourth quarter of 2008 were reduced by investment losses on a private equity fund and other investments.
Income from operations in the fourth quarter equaled $1.1 million, a decline of 18.2 percent compared to the fourth quarter of 2008.
Full-year results
Net sales for 2009 were $85.4 million compared to $98.2 million in 2008. U.S. net sales in 2009 totaled $75.0 million, down 12.1 percent compared to 2008 net sales. International net sales, at $10.4 million, were down 19.2 percent in 2009 compared to 2008. Approximately 50 percent of the decrease was due to currency fluctuations.
Net income for 2009 equaled $2.5 million or $0.20 per diluted share, compared to $2.9 million or $0.19 per diluted share in 2008. Earnings per share in 2009 benefited from a significant repurchase of stock during the year. Earnings per share and net income in 2008, as noted above, were reduced by investment losses.
Net cash generated from operating activities in 2009 was $5.5 million compared to $3.7 million for 2008. Reliv had cash and cash equivalents of $5.8 million as of Dec. 31, 2009.
New distributor enrollments were up for both the fourth quarter and the full year of 2009. Quarterly enrollments rose nearly 19 percent compared to the fourth quarter of 2008. For 2009, new enrollments rose approximately 9.4 percent over sponsoring in 2008.
As of Dec. 31, 2009, Reliv had approximately 67,940 distributors, up approximately 1 percent from Dec. 31, 2008. The number of U.S. distributors as of Dec. 31, 2009, was 54,040, representing a 1.1 percent increase from the end of 2008. Reliv distributors outside of the United States totaled 13,900 as of Dec. 31, 2009, up slightly compared to Dec. 31, 2008.
Robert L. Montgomery, chairman, president and chief executive officer, said, "The recession continued to negatively affect our distributors and customers in the fourth quarter, but the impact wasn't as dramatic as in the first three quarters of the year."
Montgomery said, "We slowed the rate of our sales decline significantly in the fourth quarter, reflecting a smaller decline in the size of average orders in the quarter. Our goal, of course, is to turn that into growth in 2010," he added.
"We have a stable and slightly growing distributor base," Montgomery said. "We've kept costs under control so that when sales increase, we should see a solid increase in net income as well. I'm confident in our 2010 growth strategy to increase our brand awareness by emphasizing the role of Reliv supplements in living a healthy, active lifestyle."
Montgomery said, "The basics of our business remain strong. Reliv makes nutrition simple. Our science-based nutritional supplements are second to none, and we offer our distributors an outstanding business opportunity."
Source: RELIV press release
Wednesday, February 24, 2010
CRISIS IN HAITI: How You Can Help
In mid-January, Haiti was rocked by a devastating earthquake. Thousands of people have been injured or killed, homes and notable landmarks have been destroyed, and Port-au-Prince and the surrounding area have been reduced to rubble. Help is needed to guide this country and its citizens towards a path of rebuilding and recovering.
Those of us who have much-needed resources can provide help in a number of ways. Our sister publication, Viva, has collected some information on ways you can help - please visit the link below for more information.
http://www.vivamagonline.com/Haiti.html
Those of us who have much-needed resources can provide help in a number of ways. Our sister publication, Viva, has collected some information on ways you can help - please visit the link below for more information.
http://www.vivamagonline.com/Haiti.html
INDUSTRY/RESEARCH NEWS: Prescription Drugs Can Cause Nutritional Deficiencies
As per the Durango Herald's Green Medicine column, nutritional deficiencies can be caused by prescription drugs, which, according to the article, is a lesser-known cause of nutrient depeletion. Prescription drugs can have side effects which in turn decrease mineral absorption and uptake in the body - this is a reason why supplements, and knowing types of supplements available, is important. Retailers can use this as an opportunity for education of both staff and consumers. If you work with a local naturopath, arrange a seminar or discussion with tips for customers.
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Prescription medications can cause nutritional deficiencies
by Nancy Utter
Here in our “land of plenty," we think of vitamin and mineral deficiencies as a common health issue in impoverished countries but not here at home. The bowed legs of rickets or the distended belly of kwashiorkor are things we don't usually see in America. The nutrient deficiencies we do have in the United States are more subtle but just as serious and surprisingly common.
In our culture, these deficiencies are not caused by the scarcity of healthy foods but by the consumption of foods, beverages or drugs that causes vitamin and mineral depletion. One lesser-known cause of nutrient depletion in America is prescription medications.
Many prescription medications have the side effect of decreasing vitamins and minerals in the body. They do this in different ways, including decreasing uptake of nutrients, increasing excretion and increasing overall need for nutrients.
Listed here are some of the drug classes, some of the medicines in them and the nutrient deficiencies that they cause.
Anti-inflammatories: Steroids (Prednisone, Medrol, Decadron) cause deficiencies in calcium, vitamin D, magnesium, zinc, vitamin C, vitamins B6 and B12, folic acid, selenium and chromium. NSAIDS (Motrin, Aleve, Advil, Anaprox, Naprosyn) cause deficiencies in folic acid. Aspirin causes low levels of vitamin C, calcium, folic acid, iron and vitamin B5.
Cardiovascular drugs: Anti-hypertensives (Catapres, Aldomet) cause low levels of CoQ10, vitamin B6, zinc and vitamin B1. ACE inhibitors (Capoten, Vasotec, Monopril and others) are associated with decreased zinc, which affects immunity, wound healing, sense of taste and smell, and sexual dysfunction. Beta blockers (Inderal, Corgard, Lopressor and others) decrease levels of CoQ10. Ironically, low levels of CoQ10 are associated with a higher incidence of congestive heart failure, high blood pressure, stroke and mitral valve prolapse.
Antacids/ulcer medications (Pepcid, Tagamet, Zantac, Prevacid, Prilosec): Because they decrease stomach acid, these medications cause deficiencies in vitamin B12, folic acid, vitamin D, calcium, iron and zinc, which all need stomach acid to be absorbed into the blood.
Female hormones (birth control pills, estrogen/hormone replacement): These decrease levels of vitamins B1, B2, B3 and B6, folic acid, vitamin C, magnesium, selenium and zinc.
In my practice, I test for nutritional deficiencies and use the results to focus my patient's treatment plans on known deficiencies. Overprescribing supplements also can have harmful side effects. However, most Americans could safely take a good multivitamin and mineral supplement and be better for it. One quick tip is to always take a multivitamin with food so it will be absorbed.
There also are natural medicine options to many pharmaceutical drugs. Be sure you consult a professional who has been trained to understand pharmaceutical drugs and the safe alternatives, and do not abruptly quit any of your medications. Many of them need to be slowly tapered down, and it can be life-threatening to stop taking them “cold turkey."
If you are taking prescription medicines, educate yourself about potential side effects. Ask your doctor or pharmacist about nutrient problems associated with your medications. Information gives you the power to make good decisions, which will allow you to maintain better health.
drnancy@durangonatural medicine.com. Nancy Utter is a naturopathic doctor who completed a five-year training program at Bastyr University in Seattle. She works in Durango with people of all ages and varying illnesses.
Source: Durango Herald
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Prescription medications can cause nutritional deficiencies
by Nancy Utter
Here in our “land of plenty," we think of vitamin and mineral deficiencies as a common health issue in impoverished countries but not here at home. The bowed legs of rickets or the distended belly of kwashiorkor are things we don't usually see in America. The nutrient deficiencies we do have in the United States are more subtle but just as serious and surprisingly common.
In our culture, these deficiencies are not caused by the scarcity of healthy foods but by the consumption of foods, beverages or drugs that causes vitamin and mineral depletion. One lesser-known cause of nutrient depletion in America is prescription medications.
Many prescription medications have the side effect of decreasing vitamins and minerals in the body. They do this in different ways, including decreasing uptake of nutrients, increasing excretion and increasing overall need for nutrients.
Listed here are some of the drug classes, some of the medicines in them and the nutrient deficiencies that they cause.
Anti-inflammatories: Steroids (Prednisone, Medrol, Decadron) cause deficiencies in calcium, vitamin D, magnesium, zinc, vitamin C, vitamins B6 and B12, folic acid, selenium and chromium. NSAIDS (Motrin, Aleve, Advil, Anaprox, Naprosyn) cause deficiencies in folic acid. Aspirin causes low levels of vitamin C, calcium, folic acid, iron and vitamin B5.
Cardiovascular drugs: Anti-hypertensives (Catapres, Aldomet) cause low levels of CoQ10, vitamin B6, zinc and vitamin B1. ACE inhibitors (Capoten, Vasotec, Monopril and others) are associated with decreased zinc, which affects immunity, wound healing, sense of taste and smell, and sexual dysfunction. Beta blockers (Inderal, Corgard, Lopressor and others) decrease levels of CoQ10. Ironically, low levels of CoQ10 are associated with a higher incidence of congestive heart failure, high blood pressure, stroke and mitral valve prolapse.
Antacids/ulcer medications (Pepcid, Tagamet, Zantac, Prevacid, Prilosec): Because they decrease stomach acid, these medications cause deficiencies in vitamin B12, folic acid, vitamin D, calcium, iron and zinc, which all need stomach acid to be absorbed into the blood.
Female hormones (birth control pills, estrogen/hormone replacement): These decrease levels of vitamins B1, B2, B3 and B6, folic acid, vitamin C, magnesium, selenium and zinc.
In my practice, I test for nutritional deficiencies and use the results to focus my patient's treatment plans on known deficiencies. Overprescribing supplements also can have harmful side effects. However, most Americans could safely take a good multivitamin and mineral supplement and be better for it. One quick tip is to always take a multivitamin with food so it will be absorbed.
There also are natural medicine options to many pharmaceutical drugs. Be sure you consult a professional who has been trained to understand pharmaceutical drugs and the safe alternatives, and do not abruptly quit any of your medications. Many of them need to be slowly tapered down, and it can be life-threatening to stop taking them “cold turkey."
If you are taking prescription medicines, educate yourself about potential side effects. Ask your doctor or pharmacist about nutrient problems associated with your medications. Information gives you the power to make good decisions, which will allow you to maintain better health.
drnancy@durangonatural medicine.com. Nancy Utter is a naturopathic doctor who completed a five-year training program at Bastyr University in Seattle. She works in Durango with people of all ages and varying illnesses.
Source: Durango Herald
BUSINESS NEWS: Quarterly financial statistics for enterprises: StatsCan
StatsCan has released quarterly financial statistics for enterprises. According to StatsCan, Canadian corporations earned $60.1 billion in operating profits in the fourth quarter of 2009, an increase of $4.4 billion, or 7.9% from the previous quarter.
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Fourth quarter 2009 (preliminary)
Canadian corporations earned $60.1 billion in operating profits in the fourth quarter, an increase of $4.4 billion, or 7.9%, from the previous quarter. This is still below the $77.3 billion high reached in the third quarter of 2008 as the economy headed into the downturn. This marked the second quarter of growth since the recent low of $50.2 billion reported in the second quarter of 2009.
Quarterly operating profits
Profits in the non-financial industries increased 4.4% from the third quarter to $44.8 billion in the fourth quarter, while profits in the financial industries reached $15.2 billion, up 19.7%. Overall, gains were widespread as 15 of 22 industries reported higher profits in the fourth quarter.
Energy profits up in the fourth quarter
Combined profits for the oil and gas, and petroleum and coal industries were up 8.6%, totalling $7.0 billion in the fourth quarter. Much of this gain came from rising oil prices and greater sales volumes. This marked the second straight quarter of growth, although profits were still below their peak of $16.7 billion reported in the third quarter of 2008.
Manufacturing profits continue to rise
Manufacturers reported a third consecutive quarter of increased profits. At $11.2 billion, fourth quarter profits reflected a 4.4% growth over the previous quarter. The top contributors were chemicals, plastics and rubber manufacturers, wood and paper manufacturers and primary metal manufacturers. However, motor vehicle and parts manufacturers tempered these gains with a decline in profits of $583 million.
Wholesale and retail profits up
Profits in the wholesale industry grew by 12.1% to $4.3 billion in the fourth quarter. Automotive product wholesalers and building materials and supplies wholesalers together accounted for almost half of that growth. Profits for retailers also grew, up 3.9%, to $3.4 billion.
Operating profits for financial industries on the rise
The 19.7% increase in profits for financial industries in the fourth quarter marked the second consecutive quarter of increase. Most of this growth came from the banks and insurance companies as their expenses declined.
Aggregate balance sheet and income statement data for Canadian corporations are now available in CANSIM. They are available at the national level for 22 industry groups.
SOURCE: Statistics Canada
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Fourth quarter 2009 (preliminary)
Canadian corporations earned $60.1 billion in operating profits in the fourth quarter, an increase of $4.4 billion, or 7.9%, from the previous quarter. This is still below the $77.3 billion high reached in the third quarter of 2008 as the economy headed into the downturn. This marked the second quarter of growth since the recent low of $50.2 billion reported in the second quarter of 2009.
Quarterly operating profits
Profits in the non-financial industries increased 4.4% from the third quarter to $44.8 billion in the fourth quarter, while profits in the financial industries reached $15.2 billion, up 19.7%. Overall, gains were widespread as 15 of 22 industries reported higher profits in the fourth quarter.
Energy profits up in the fourth quarter
Combined profits for the oil and gas, and petroleum and coal industries were up 8.6%, totalling $7.0 billion in the fourth quarter. Much of this gain came from rising oil prices and greater sales volumes. This marked the second straight quarter of growth, although profits were still below their peak of $16.7 billion reported in the third quarter of 2008.
Manufacturing profits continue to rise
Manufacturers reported a third consecutive quarter of increased profits. At $11.2 billion, fourth quarter profits reflected a 4.4% growth over the previous quarter. The top contributors were chemicals, plastics and rubber manufacturers, wood and paper manufacturers and primary metal manufacturers. However, motor vehicle and parts manufacturers tempered these gains with a decline in profits of $583 million.
Wholesale and retail profits up
Profits in the wholesale industry grew by 12.1% to $4.3 billion in the fourth quarter. Automotive product wholesalers and building materials and supplies wholesalers together accounted for almost half of that growth. Profits for retailers also grew, up 3.9%, to $3.4 billion.
Operating profits for financial industries on the rise
The 19.7% increase in profits for financial industries in the fourth quarter marked the second consecutive quarter of increase. Most of this growth came from the banks and insurance companies as their expenses declined.
Aggregate balance sheet and income statement data for Canadian corporations are now available in CANSIM. They are available at the national level for 22 industry groups.
SOURCE: Statistics Canada
INDUSTRY NEWS: Walmart Canada to Open 35 to 40 Supercentres in 2010
Walmart Canada has announced that the Company will open 35 to 40 supercentres in 2010 - including new stores, relocations of existing stores and store expansions, in a combined investment of almost half a billion dollars.
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Walmart Canada to Open 35 to 40 Supercentres in 2010
Projects expected to generate approximately 6,500 store and construction jobs
Mississauga, Ontario, February 23, 2010 – Walmart Canada will open 35 to 40 supercentres in 2010 the company announced today. The projects will include new stores, relocations of existing stores, store expansions and store remodels, representing a combined investment of almost half a billion dollars in Canadian communities. The supercentres are expected to generate approximately 6,500 store and construction jobs, with specific store locations to be announced over the coming weeks and months.
“The combination of one-stop shopping and low prices that our supercentres provide has been embraced by our customers,” said David Cheesewright, President and CEO of Walmart Canada. “We look forward to bringing this popular format to a new range of shoppers.”
Launched in 2006, Walmart Canada’s supercentre program provides a full range of groceries and general merchandise under one roof. Today’s announcement is expected to bring Walmart Canada’s store count to as much as 325 stores by the end of the year, including 124 supercentres and 201 discount stores.
In addition to store expansions, Walmart Canada is investing in its first sustainable refrigerated distribution centre, which is anticipated to open in Balzac, Alberta, in the fall of this year. The company is investing $115 million in its construction. The centre will create 1,400 jobs, including trade and construction jobs.
Expected to be one of the most energy-efficient distribution facilities of its kind in North America, the cutting-edge distribution centre will be an estimated 60 percent more energy-efficient than Walmart’s traditional refrigerated distribution centres. The centre will include a pilot of fuel cell technology and many other sustainable features.
SOURCE: Walmart Canada Press Release
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Walmart Canada to Open 35 to 40 Supercentres in 2010
Projects expected to generate approximately 6,500 store and construction jobs
Mississauga, Ontario, February 23, 2010 – Walmart Canada will open 35 to 40 supercentres in 2010 the company announced today. The projects will include new stores, relocations of existing stores, store expansions and store remodels, representing a combined investment of almost half a billion dollars in Canadian communities. The supercentres are expected to generate approximately 6,500 store and construction jobs, with specific store locations to be announced over the coming weeks and months.
“The combination of one-stop shopping and low prices that our supercentres provide has been embraced by our customers,” said David Cheesewright, President and CEO of Walmart Canada. “We look forward to bringing this popular format to a new range of shoppers.”
Launched in 2006, Walmart Canada’s supercentre program provides a full range of groceries and general merchandise under one roof. Today’s announcement is expected to bring Walmart Canada’s store count to as much as 325 stores by the end of the year, including 124 supercentres and 201 discount stores.
In addition to store expansions, Walmart Canada is investing in its first sustainable refrigerated distribution centre, which is anticipated to open in Balzac, Alberta, in the fall of this year. The company is investing $115 million in its construction. The centre will create 1,400 jobs, including trade and construction jobs.
Expected to be one of the most energy-efficient distribution facilities of its kind in North America, the cutting-edge distribution centre will be an estimated 60 percent more energy-efficient than Walmart’s traditional refrigerated distribution centres. The centre will include a pilot of fuel cell technology and many other sustainable features.
SOURCE: Walmart Canada Press Release
Tuesday, February 23, 2010
CRISIS IN HAITI: How You Can Help
In mid-January, Haiti was rocked by a devastating earthquake. Thousands of people have been injured or killed, homes and notable landmarks have been destroyed, and Port-au-Prince and the surrounding area have been reduced to rubble. Help is needed to guide this country and its citizens towards a path of rebuilding and recovering.
Those of us who have much-needed resources can provide help in a number of ways. Our sister publication, Viva, has collected some information on ways you can help - please visit the link below for more information.
http://www.vivamagonline.com/Haiti.html
Those of us who have much-needed resources can provide help in a number of ways. Our sister publication, Viva, has collected some information on ways you can help - please visit the link below for more information.
http://www.vivamagonline.com/Haiti.html
RESEARCH NEWS: Study finds Alpha- and Beta-Carotene Inversely Associated with Breast Cancer Risk
In a new study published online ahead of print in the European Journal of Cancer, researchers found that dietary alpha-carotene and beta-carotene were inversely associated with risk of breast cancer among smokers and among women not taking dietary supplements. This is interesting information to include in your daily/monthly newsletter, and to consider in marketing initiatives - for example, consider a women-friendly angle when marketing certain products.
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Article Abstract:
Summary: In a population-based cohort study involving 36,664 women who completed a questionnaire and were then followed up with for 9.4 years, during which time 1,008 were diagnosed with incident breast cancer, dietary alpha-carotene and beta-carotene were found to be inversely associated with risk of breast cancer among smokers and among women not taking dietary supplements. While dietary carotenoids were not found to be significantly associated with the risk of breast cancer overall, dietary alpha-carotene and beta-carotene were found to be inversely associated with risk of ER-PR-breast cancer among ever smokers (multivariable RR=0.32 for alpha-carotene and 0.35 for beta-carotene). In addition, among women who did not take dietary supplements, increasing intakes of alpha- and beta-carotene were associated with decreasing risk of breast cancer. The authors conclude, "These findings suggest that dietary alpha-carotene and beta-carotene are inversely associated with the risk of breast cancer among smokers and among women who do not use dietary supplements."
SOURCE: "Dietary carotenoids and risk of hormone receptor-defined breast cancer in a prospective cohort of Swedish women," Larsson SC, Bergkvist L, et al, Eur J Cancer, 2010 Jan 27; [Epub ahead of print]. (Address: Division of Nutritional Epidemiology, The National Institute of Environmental Medicine, Karolinska Institutet, Stockholm, Sweden).
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Article Abstract:
Summary: In a population-based cohort study involving 36,664 women who completed a questionnaire and were then followed up with for 9.4 years, during which time 1,008 were diagnosed with incident breast cancer, dietary alpha-carotene and beta-carotene were found to be inversely associated with risk of breast cancer among smokers and among women not taking dietary supplements. While dietary carotenoids were not found to be significantly associated with the risk of breast cancer overall, dietary alpha-carotene and beta-carotene were found to be inversely associated with risk of ER-PR-breast cancer among ever smokers (multivariable RR=0.32 for alpha-carotene and 0.35 for beta-carotene). In addition, among women who did not take dietary supplements, increasing intakes of alpha- and beta-carotene were associated with decreasing risk of breast cancer. The authors conclude, "These findings suggest that dietary alpha-carotene and beta-carotene are inversely associated with the risk of breast cancer among smokers and among women who do not use dietary supplements."
SOURCE: "Dietary carotenoids and risk of hormone receptor-defined breast cancer in a prospective cohort of Swedish women," Larsson SC, Bergkvist L, et al, Eur J Cancer, 2010 Jan 27; [Epub ahead of print]. (Address: Division of Nutritional Epidemiology, The National Institute of Environmental Medicine, Karolinska Institutet, Stockholm, Sweden).
INDUSTRY/PACKAGING OPERATIONS NEWS: SunOpta Completes Upgrade and Expansion of Aseptic Packaging Operations
SunOpta Inc. announced that the Company has completed the upgrade of its Alexandria, Minnesota aseptic processing and packaging facility and has commenced first production of natural broth and soup products for a major international packaged goods company. The packaging facility has the capacity to produce approximately 170 million litres annually of natural and organic alternative beverages, broth and soup products. The upgrade expanded packaging size capabilities for these products to include 500 mL and 1.5 L packages in addition to existing 1 and 2 L package formats.
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SunOpta Completes Upgrade and Expansion of Aseptic Packaging Operations and Commences Production of Aseptic Broth Products
TORONTO, Feb. 23, 2010 (GLOBE NEWSWIRE) -- SunOpta Inc. ("SunOpta" or the "Company") (Nasdaq:STKL) (TSX:SOY) today announced that the SunOpta Grains and Foods Group has completed an upgrade and retrofit at its Alexandria, Minnesota aseptic processing and packaging facility and has commenced its first production of natural broth and soup products for a major international packaged goods company.
The Alexandria, Minnesota aseptic packaging facility has the capacity to produce the equivalent of approximately 170 million liters annually of natural and organic alternative beverages such as soy, rice, almond and others as well as broth and soup products. The recently completed upgrade and retrofit expands packaging size capabilities for these products to include 500 ml and 1.5 liter packages in addition to existing 1 liter and 2 liter package formats. The additional configuration also enables packaging the full array of aseptic pint, quart, 11/2 quart and 1/2 gallon sizes.
In hand with the completion of the upgrade and retrofit, the Company has commenced production of aseptically processed and packaged natural broth products for a global consumer products company under the terms of a three year packaging agreement. The products will be produced in both 16 oz and 48 oz formats for retail and food service distribution. This business positions the Company for continued expansion in natural and organic broths and soups and is consistent with the Company's long-term objective of building an integrated natural and organic aseptic broth and soup business to profitable annualized revenues in excess of $25 million.
Allan Routh, President of the SunOpta Grains and Foods Group commented, "Expansion of our value added processing and packaging capabilities into natural and organic broths and soups has been a strategic objective designed to leverage our integrated sourcing, processing and packaging capabilities. We are extremely pleased to have completed this upgrade and retrofit and commenced production of natural broth products for our new customer and look forward to continuing to leverage our capabilities into complementary natural and organic products categories."
SOURCE: SunOpta Press Release
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SunOpta Completes Upgrade and Expansion of Aseptic Packaging Operations and Commences Production of Aseptic Broth Products
TORONTO, Feb. 23, 2010 (GLOBE NEWSWIRE) -- SunOpta Inc. ("SunOpta" or the "Company") (Nasdaq:STKL) (TSX:SOY) today announced that the SunOpta Grains and Foods Group has completed an upgrade and retrofit at its Alexandria, Minnesota aseptic processing and packaging facility and has commenced its first production of natural broth and soup products for a major international packaged goods company.
The Alexandria, Minnesota aseptic packaging facility has the capacity to produce the equivalent of approximately 170 million liters annually of natural and organic alternative beverages such as soy, rice, almond and others as well as broth and soup products. The recently completed upgrade and retrofit expands packaging size capabilities for these products to include 500 ml and 1.5 liter packages in addition to existing 1 liter and 2 liter package formats. The additional configuration also enables packaging the full array of aseptic pint, quart, 11/2 quart and 1/2 gallon sizes.
In hand with the completion of the upgrade and retrofit, the Company has commenced production of aseptically processed and packaged natural broth products for a global consumer products company under the terms of a three year packaging agreement. The products will be produced in both 16 oz and 48 oz formats for retail and food service distribution. This business positions the Company for continued expansion in natural and organic broths and soups and is consistent with the Company's long-term objective of building an integrated natural and organic aseptic broth and soup business to profitable annualized revenues in excess of $25 million.
Allan Routh, President of the SunOpta Grains and Foods Group commented, "Expansion of our value added processing and packaging capabilities into natural and organic broths and soups has been a strategic objective designed to leverage our integrated sourcing, processing and packaging capabilities. We are extremely pleased to have completed this upgrade and retrofit and commenced production of natural broth products for our new customer and look forward to continuing to leverage our capabilities into complementary natural and organic products categories."
SOURCE: SunOpta Press Release
INDUSTRY NEWS: Enzymotec Launches Phospholipid Product for Vegetarians
Enzymotec has launched a new phosopholipid product designed for the special nutritional needs of vegetarians. Phospholipids are a major dietary component acquired most often through consumption of meat and fish; the Company aims to provide these needs via their new product.
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Enzymotec has launched a new phospholipid product designed for the special nutrition needs of vegetarians. Phospholipids are major components of every living cell's membrane; they are involved in diverse biological functions and act as carriers of essential nutrients to the brain, which are needed in order to keep high level of cognitive abilities.
In a balanced diet, most of the needed phospholipids are provided through consumption of meat and fish. Enzymotec is pleased to provide a new product based on comprehensive research that is designed to meet the needs of a balanced phospholipids diet.
Source: Enzymotec Press Release via NPI Center
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Enzymotec has launched a new phospholipid product designed for the special nutrition needs of vegetarians. Phospholipids are major components of every living cell's membrane; they are involved in diverse biological functions and act as carriers of essential nutrients to the brain, which are needed in order to keep high level of cognitive abilities.
In a balanced diet, most of the needed phospholipids are provided through consumption of meat and fish. Enzymotec is pleased to provide a new product based on comprehensive research that is designed to meet the needs of a balanced phospholipids diet.
Source: Enzymotec Press Release via NPI Center
Monday, February 22, 2010
CRISIS IN HAITI: How You Can Help
In mid-January, Haiti was rocked by a devastating earthquake. Thousands of people have been injured or killed, homes and notable landmarks have been destroyed, and Port-au-Prince and the surrounding area have been reduced to rubble. Help is needed to guide this country and its citizens towards a path of rebuilding and recovering.
Those of us who have much-needed resources can provide help in a number of ways. Our sister publication, Viva, has collected some information on ways you can help - please visit the link below for more information.
http://www.vivamagonline.com/Haiti.html
Those of us who have much-needed resources can provide help in a number of ways. Our sister publication, Viva, has collected some information on ways you can help - please visit the link below for more information.
http://www.vivamagonline.com/Haiti.html
INDUSTRY NEWS: Hain Celestial Supplies Spectators with Healthy Snacks
Hain Celestial Canada, the official supplier of natural and organic products for the Vancouver 2010 Olympic and Paralympic Winter Games has a foot firmly in the fan sector, by offering spectators healthy alternatives at all venue concessions at the Vancouter 2010 Games. This is the first time the Games is featuring such a focus on organic and healthy alternatives.
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Natural and Organic Foods Fuel the Taste for the Vancouver 2010 Olympic and Paralympic Winter Games
DELTA, BC, Feb. 18 /CNW/ - Vancouver 2010 is the first-ever Games to feature a distinctly organic flavour. Hain Celestial Canada, the Official Supplier of Natural and Organic Products for the Vancouver 2010 Olympic and Paralympic Winter Games is proudly offering spectators healthy alternatives at all venue concessions. From natural salty snacks to vegetarian hot dogs and chili, Hain Celestial is pleased to provide nutritious choices for all 2010 Winter Games fans.
Hain Celestial Canada - known for popular healthy foods such as Yves Veggie Cuisine(R), Terra Chips(R), Garden of Eatin'(R), and Imagine(R) organic soups - has exclusive Official Supplier sponsorship rights in the Natural and Organic Packaged Grocery Products category for the 2010 Winter Games. Hain Celestial Canada is a subsidiary of The Hain Celestial Group, a leading natural and organic food and personal care products company in North America and Europe.
"As a Canadian company that operates in the Vancouver community, Hain Celestial Canada is proud to be involved with an iconic sport event that complements our values and brings worldwide attention to this great province and to Canada," said Beena Goldenberg, President, Hain Celestial Canada. "We are dedicated to the spirit of the Games and providing A Healthy Way of Life(TM); and are very proud to showcase healthy, sustainable living at the Vancouver 2010 Olympic and Paralympic Winter Games through Hain Celestial Canada's natural and organic products. Having visited many concessions during my Games trip, it was with great pride that I watched the spectators make the healthy choice choosing our Terra Chips and Yves Veggie Cuisine veggie dogs while cheering on all the athletes!"
Hain Celestial Canada is experiencing great success at the venue concessions with an increased demand for Terra Chips, Yves Veggie Cuisine veggie dogs and Garden of Eatin' nacho chips. With an increased demand for nutritious, healthy alternatives it is no surprise that spectators are choosing to go natural in their food choices.
Source: Hain Celestial Canada Press Release
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Natural and Organic Foods Fuel the Taste for the Vancouver 2010 Olympic and Paralympic Winter Games
DELTA, BC, Feb. 18 /CNW/ - Vancouver 2010 is the first-ever Games to feature a distinctly organic flavour. Hain Celestial Canada, the Official Supplier of Natural and Organic Products for the Vancouver 2010 Olympic and Paralympic Winter Games is proudly offering spectators healthy alternatives at all venue concessions. From natural salty snacks to vegetarian hot dogs and chili, Hain Celestial is pleased to provide nutritious choices for all 2010 Winter Games fans.
Hain Celestial Canada - known for popular healthy foods such as Yves Veggie Cuisine(R), Terra Chips(R), Garden of Eatin'(R), and Imagine(R) organic soups - has exclusive Official Supplier sponsorship rights in the Natural and Organic Packaged Grocery Products category for the 2010 Winter Games. Hain Celestial Canada is a subsidiary of The Hain Celestial Group, a leading natural and organic food and personal care products company in North America and Europe.
"As a Canadian company that operates in the Vancouver community, Hain Celestial Canada is proud to be involved with an iconic sport event that complements our values and brings worldwide attention to this great province and to Canada," said Beena Goldenberg, President, Hain Celestial Canada. "We are dedicated to the spirit of the Games and providing A Healthy Way of Life(TM); and are very proud to showcase healthy, sustainable living at the Vancouver 2010 Olympic and Paralympic Winter Games through Hain Celestial Canada's natural and organic products. Having visited many concessions during my Games trip, it was with great pride that I watched the spectators make the healthy choice choosing our Terra Chips and Yves Veggie Cuisine veggie dogs while cheering on all the athletes!"
Hain Celestial Canada is experiencing great success at the venue concessions with an increased demand for Terra Chips, Yves Veggie Cuisine veggie dogs and Garden of Eatin' nacho chips. With an increased demand for nutritious, healthy alternatives it is no surprise that spectators are choosing to go natural in their food choices.
Source: Hain Celestial Canada Press Release
INDUSTRY TIPS: Achieving INSIGHT-DRIVEN Inventory Management - RetailWire
Via RetailWire, here are some tips about the benefits of inventory management. How do you manage your inventory? Has this changed over the last five, ten years?
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Achieving INSIGHT-DRIVEN Inventory Management
Holiday sales grew modestly in 2009, and most saw that as an encouraging sign. But, for many analysts, the jump in retail profits was the more meaningful indicator. With inventory trimmed and supply chains revved up for better responsiveness, many leading retailers pulled the maximum yield from what sales they had.
Clearly, the benefits of inventory management on the bottom line are not lost on retailers. According to an NRF/Retail Horizons study, inventory management is the number-one supply chain initiative, current and planned. As many as 97 percent of retailers will have inventory management strategies implemented by mid-2010, an increase of 12 percent over the previous year.
It's not that inventory management is a new science, but the practice has evolved considerably. Yesterday's inventory planning processes occurred in "siloed" environments. Inventory decisions made at the store level were not shared with stakeholders upstream in the supply chain. Management strategy was a one-dimensional affair -- using past performance to predict future sales. Retailers are demanding a more comprehensive enterprise solution. Today's more advanced systems:
* Break the barriers across the supply chain to tap into more information resources and spread the benefits;
* Incorporate consumer insights to better predict demand;
* Determine the right allocations by region, by store and by size, color and SKU;
* Weigh stock reduction versus customer service and predict the best mix for long-term success.
Letting the data tell the story; then planning how to act on it.
With new generation inventory management, retailers and suppliers are working together to create a merchandise mix that will minimize stock-outs, reduce last-minute orders and ultimately result in increased sales. Of particular concern are the dynamics of changing assortments by adding or discontinuing items. Understanding the impact of these changes in assortments on inventory positions and ability to optimally balance consumer demand with inventory costs is critical.
When a new product is introduced into an assortment, retailers will ramp-up the item's inventory based on a similar item's history. However, as a new item moves through its lifecycle it begins to generate its own sales history. How this item is replenished needs to be verified and a different replenishment target may be necessary to ensure that the desired trade-off between customer service level and inventory position are met.
Initially, optimization is based on historical data of like items, but after observing actual sales patterns, the systems can begin to predict how and when to change the replenishment methods to achieve optimal results.
Source: RetailWire
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Achieving INSIGHT-DRIVEN Inventory Management
Holiday sales grew modestly in 2009, and most saw that as an encouraging sign. But, for many analysts, the jump in retail profits was the more meaningful indicator. With inventory trimmed and supply chains revved up for better responsiveness, many leading retailers pulled the maximum yield from what sales they had.
Clearly, the benefits of inventory management on the bottom line are not lost on retailers. According to an NRF/Retail Horizons study, inventory management is the number-one supply chain initiative, current and planned. As many as 97 percent of retailers will have inventory management strategies implemented by mid-2010, an increase of 12 percent over the previous year.
It's not that inventory management is a new science, but the practice has evolved considerably. Yesterday's inventory planning processes occurred in "siloed" environments. Inventory decisions made at the store level were not shared with stakeholders upstream in the supply chain. Management strategy was a one-dimensional affair -- using past performance to predict future sales. Retailers are demanding a more comprehensive enterprise solution. Today's more advanced systems:
* Break the barriers across the supply chain to tap into more information resources and spread the benefits;
* Incorporate consumer insights to better predict demand;
* Determine the right allocations by region, by store and by size, color and SKU;
* Weigh stock reduction versus customer service and predict the best mix for long-term success.
Letting the data tell the story; then planning how to act on it.
With new generation inventory management, retailers and suppliers are working together to create a merchandise mix that will minimize stock-outs, reduce last-minute orders and ultimately result in increased sales. Of particular concern are the dynamics of changing assortments by adding or discontinuing items. Understanding the impact of these changes in assortments on inventory positions and ability to optimally balance consumer demand with inventory costs is critical.
When a new product is introduced into an assortment, retailers will ramp-up the item's inventory based on a similar item's history. However, as a new item moves through its lifecycle it begins to generate its own sales history. How this item is replenished needs to be verified and a different replenishment target may be necessary to ensure that the desired trade-off between customer service level and inventory position are met.
Initially, optimization is based on historical data of like items, but after observing actual sales patterns, the systems can begin to predict how and when to change the replenishment methods to achieve optimal results.
Source: RetailWire
INDUSTRY NEWS: Cadbury's Settles Class Action Suit
Cadbury's has agreed to pay $5.7 million in a class-action lawsuit alleging that Cadbury's and four other companies fixed the price of chocolate products between 2001 and 2008.
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CADBURYS AGREES TO PAY $5.7 MILLION IN CLASS-ACTION
TORONTO - Cadburys has agreed to pay $5.7 million in a class-action alleging that they and four other companies fixed the price of chocolate products between 2001 at 2008. The other companies involved were Adams Canada, Mars Canada, Hershey Canada and Nestlé Canada. The lawsuit alleged that they conspired to fix prices of chocolate products such as Caramilk bars, Smarties, M&Ms, and O’Henry chocolate bars.
The lawsuit claims that the companies held secret meetings to discuss prices and penalize stores that undercut the recommended retail price by limiting the supply of product to them. Last week Cadburys agreed to pay to have itself removed as a defendant in a lawsuit. The lawyer for the plaintiffs, Charles Wright of Siskinds in London Ontario, indicated that Cadburys would be providing information that would help his firm continue with litigation against other named defendants.
Source: Lawday
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CADBURYS AGREES TO PAY $5.7 MILLION IN CLASS-ACTION
TORONTO - Cadburys has agreed to pay $5.7 million in a class-action alleging that they and four other companies fixed the price of chocolate products between 2001 at 2008. The other companies involved were Adams Canada, Mars Canada, Hershey Canada and Nestlé Canada. The lawsuit alleged that they conspired to fix prices of chocolate products such as Caramilk bars, Smarties, M&Ms, and O’Henry chocolate bars.
The lawsuit claims that the companies held secret meetings to discuss prices and penalize stores that undercut the recommended retail price by limiting the supply of product to them. Last week Cadburys agreed to pay to have itself removed as a defendant in a lawsuit. The lawyer for the plaintiffs, Charles Wright of Siskinds in London Ontario, indicated that Cadburys would be providing information that would help his firm continue with litigation against other named defendants.
Source: Lawday
Friday, February 19, 2010
CRISIS IN HAITI: How You Can Help
In mid-January, Haiti was rocked by a devastating earthquake. Thousands of people have been injured or killed, homes and notable landmarks have been destroyed, and Port-au-Prince and the surrounding area have been reduced to rubble. Help is needed to guide this country and its citizens towards a path of rebuilding and recovering.
Those of us who have much-needed resources can provide help in a number of ways. Our sister publication, Viva, has collected some information on ways you can help - please visit the link below for more information.
http://www.vivamagonline.com/Haiti.html
Those of us who have much-needed resources can provide help in a number of ways. Our sister publication, Viva, has collected some information on ways you can help - please visit the link below for more information.
http://www.vivamagonline.com/Haiti.html
CONSUMER BEHAVIOUR: More On Consumer Coupon Clipping
According to an article in the Wall Street Journal, H.J. Heinz Co. CEO William Johnson said that coupon clipping has become more of a new behaviour and less a temporary phenomenon. He adds that retailers have to work to trim the variety of products from shelves in order to match consumers' shift "back to basics."
What adjustments have you made in response to changes in consumer spending? How did you determine how to make these changes?
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Heinz Sees More Coupon Clipping
By ILAN BRAT
H.J. Heinz Co. Chief Executive William Johnson said Wednesday that consumers have settled into a money-saving mind-set, including using coupons substantially more than in the past and preparing more meals at home.
He said the behavioral changes, particularly prominent among families with children, would benefit Heinz and other packaged-food makers.
"This is not a temporary phenomenon, but rather a new behavior," he said, speaking at a food-industry conference in Florida.
Mr. Johnson also said that consumer-goods makers and grocery retailers have to work to trim the variety of products from shelves in order to match consumers' shift "back to basics." He said that doing so would help leading brands increase sales while helping them and retailers reduce costs.
In a release, the company raised its projections for earnings per share in its fiscal year to $2.82 to $2.85 from $2.72 to $2.82. The company said that the amount of food it sold in its fiscal third quarter grew 4% in its U.S. retail segment. That growth is far ahead of results at many of the largest packaged-food makers.
Heinz also said it expects to increase its marketing spending in fiscal 2010 by 20%, up from a previous projection of 7% to 10%.
Food makers are trying to spur people to buy more food in order to drive sales as consumers have become less willing to accept price increases amid the weak economy.
Mr. Johnson also announced that Heinz would enter the infant-formula market in China later this year using ingredients sourced only from outside the country. He said Heinz aimed to take market share from competitors already selling infant formula in China.
Source: Wall Street Journal
What adjustments have you made in response to changes in consumer spending? How did you determine how to make these changes?
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Heinz Sees More Coupon Clipping
By ILAN BRAT
H.J. Heinz Co. Chief Executive William Johnson said Wednesday that consumers have settled into a money-saving mind-set, including using coupons substantially more than in the past and preparing more meals at home.
He said the behavioral changes, particularly prominent among families with children, would benefit Heinz and other packaged-food makers.
"This is not a temporary phenomenon, but rather a new behavior," he said, speaking at a food-industry conference in Florida.
Mr. Johnson also said that consumer-goods makers and grocery retailers have to work to trim the variety of products from shelves in order to match consumers' shift "back to basics." He said that doing so would help leading brands increase sales while helping them and retailers reduce costs.
In a release, the company raised its projections for earnings per share in its fiscal year to $2.82 to $2.85 from $2.72 to $2.82. The company said that the amount of food it sold in its fiscal third quarter grew 4% in its U.S. retail segment. That growth is far ahead of results at many of the largest packaged-food makers.
Heinz also said it expects to increase its marketing spending in fiscal 2010 by 20%, up from a previous projection of 7% to 10%.
Food makers are trying to spur people to buy more food in order to drive sales as consumers have become less willing to accept price increases amid the weak economy.
Mr. Johnson also announced that Heinz would enter the infant-formula market in China later this year using ingredients sourced only from outside the country. He said Heinz aimed to take market share from competitors already selling infant formula in China.
Source: Wall Street Journal
INDUSTRY TIPS: Tech Tips - Observe Your Customers
Considering upping your tech usage in-store, or at the corporate/higher operations level? Via RetailWire, here are some tips to gauge whether people would use a service.
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Observing Consumers Beats Listening to Them
By Tom Ryan
Nate Bolt, co-founder and chief executive of user research firm Bolt Peters, argues that while tech entrepreneurs are encouraged to listen to potential customers, observing is a much better tool to see whether a new product will succeed in the market.
"The main problem with opinions is self-reporting bias," wrote Mr. Bolt in a column in the venture-capital blog, VentureBeat. "Opinions are often inconsistent with behaviors or other attitudes, especially when discussing hypotheticals."
As an example, he noted that Clippy, Microsoft's animated paperclip helper, came about after the company's researchers found that when asked, users roundly agreed that they wanted help working with their documents.
"But once people started actually using it in the real world, they hated it -- it might be one of the most hated features in the history of computing," said Mr. Bolt.
Mr. Bolt offered three ways tech entrepreneurs can gauge whether people would use a service:
1. Test ideas early by watching behavior: He suggests having eight people interact with a prototype or even wireframes or design makeups. In the tech world, a number of websites (Chalkmark, Pidoco, Balsamiq, etc.) allow companies to easily test prototypes. Wrote Mr. Bolt, "You can still ask all your needy questions about what they think after the session -- just don't take those too seriously."
2. Get all stakeholders to watch the research: Technical and business constraints obscure the basic question of whether the interface is any good.
3. Use unorthodox methods: Mr. Bolt noted that Apple claims it doesn't conduct user research but releasing products in generations provides the company with loads of reviews, task-specific complaints, crash reports, customer support issues, and Genius Bar feedback. "It's audacious, large-scale behavioral research," Mr. Bolt wrote. Similarly, long-beta testing periods have helped launch services such as Gmail.
Mr. Bolt concluded, "Do whatever you need to do to understand how people use your product. If it's a device meant to be used in cars, watch people use it cars; if it's a video game, avoid sterile lab environments. Just don't ask perfunctory, cookie-cutter survey questions to your potential customers, and expect that to ensure your product's usefulness."
Source: RetailWire
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Observing Consumers Beats Listening to Them
By Tom Ryan
Nate Bolt, co-founder and chief executive of user research firm Bolt Peters, argues that while tech entrepreneurs are encouraged to listen to potential customers, observing is a much better tool to see whether a new product will succeed in the market.
"The main problem with opinions is self-reporting bias," wrote Mr. Bolt in a column in the venture-capital blog, VentureBeat. "Opinions are often inconsistent with behaviors or other attitudes, especially when discussing hypotheticals."
As an example, he noted that Clippy, Microsoft's animated paperclip helper, came about after the company's researchers found that when asked, users roundly agreed that they wanted help working with their documents.
"But once people started actually using it in the real world, they hated it -- it might be one of the most hated features in the history of computing," said Mr. Bolt.
Mr. Bolt offered three ways tech entrepreneurs can gauge whether people would use a service:
1. Test ideas early by watching behavior: He suggests having eight people interact with a prototype or even wireframes or design makeups. In the tech world, a number of websites (Chalkmark, Pidoco, Balsamiq, etc.) allow companies to easily test prototypes. Wrote Mr. Bolt, "You can still ask all your needy questions about what they think after the session -- just don't take those too seriously."
2. Get all stakeholders to watch the research: Technical and business constraints obscure the basic question of whether the interface is any good.
3. Use unorthodox methods: Mr. Bolt noted that Apple claims it doesn't conduct user research but releasing products in generations provides the company with loads of reviews, task-specific complaints, crash reports, customer support issues, and Genius Bar feedback. "It's audacious, large-scale behavioral research," Mr. Bolt wrote. Similarly, long-beta testing periods have helped launch services such as Gmail.
Mr. Bolt concluded, "Do whatever you need to do to understand how people use your product. If it's a device meant to be used in cars, watch people use it cars; if it's a video game, avoid sterile lab environments. Just don't ask perfunctory, cookie-cutter survey questions to your potential customers, and expect that to ensure your product's usefulness."
Source: RetailWire
INDUSTRY/SUPPLY CHAIN NEWS: Walmart Canada's Sustainability Initiatives
Last week, Walmart Canada announced a host of sustainability initiatives at the Walmart Green Business Summit in Vancouver, which brought together more than 300 of Canada's largest corporations, NGOs, academics and government leaders to share the business case for sustainability. Notably, Walmart Canada announced plans to launch a Sustainable Product Index (as reported by ihr last year) that will aim to help Canadian consumers evaluate the sustainability of the products they purchase, from raw materials to disposal. In addition, Walmart Canada also announced plans to conduct two significant wind and solar power projects, which the Company will own and finance. Power generated will be returned to the electrical grid under Ontario's feed-in tariff program for renewable energy; and, in turn, investigate the possibility of using this energy to power the Company's stores in the future. The Company further announced that it will open its first sustainable refrigerated distribution centre in Alberta, and announced the launch of a website to share sustainable business practices across the Canadian business community.
On a large- or small-scale, retailers can work towards efforts in sustainability. What are some of your sustainability practices? What are your sustainability goals?
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Walmart Canada announces plans for Sustainable Product Index
Index to measure product sustainability
VANCOUVER, Feb. 10 /CNW/ - Walmart Canada announced plans today to launch
a Sustainable Product Index that will ultimately help customers across Canada
evaluate the sustainability of the products they purchase, from raw materials
to disposal. Announced by Walmart in the U.S. this past summer, Walmart
Canada is the first Walmart operation outside of the U.S. to initiate the
process for the product index.
The announcement was made at the Walmart Canada Green Business Summit in
Vancouver today, a high-profile event which brought together more than 300 of
Canada's largest corporations, NGOs, academics and government leaders to
share the business case for sustainability.
"Customers want value and quality when buying products," said David
Cheesewright, President and CEO of Walmart Canada. "They also want to know
that products are being made in a responsible way. Once launched, the
Sustainable Product Index will give customers transparency into the entire
lifecycle of the products they buy, so they know they're safe, made-well and
produced responsibly."
The company will introduce the Sustainable Product Index initiative in
three long-range phases:
- Phase 1 - Supplier assessment
- Phase 2 - Creation of database
- Phase 3 - Development and launch of customer tool
Phase 1 - Supplier Assessment
-----------------------------
Beginning in the summer of 2010, Walmart Canada will provide its top
suppliers with a survey of 15 simple questions to evaluate their
sustainability efforts. The questions are divided into four areas: energy and
climate; material efficiency; natural resources, and; people and community.
The survey will be an important first step in assessing the sustainability of
suppliers and their products.
Phase 2 - Creation of Database
------------------------------
The second step will include the creation of a Sustainability Index
Consortium and the database that will house information on the lifecycle of
products. Wal-Mart Stores, Inc., Walmart Canada's parent company, will
initially fund and help create the Consortium, which will include
universities, other retailers, suppliers and non-government organizations
(NGOs).
The Consortium will take a research-driven approach to developing the
database, that will drive the Index, and will look at the full lifecycle of
products, from the use of raw materials to the way a product can be recycled
or disposed of.
Phase 3 - Development and Launch of Customer Tool
-------------------------------------------------
The final step will include the development and launch of the Sustainable
Product Index tool, which will help customers identify the sustainability of
a product with a simple and convenient rating system. How that information
will be delivered to customers is still to be determined, but it may take the
form of a numeric score, colour code or some other type of label. The
Sustainability Consortium will help determine the scoring process in the
coming months and years.
Timing for phases two and three of the initiative will be determined
later this year.
Source: Walmart Canada Press Release
On a large- or small-scale, retailers can work towards efforts in sustainability. What are some of your sustainability practices? What are your sustainability goals?
____________________
Walmart Canada announces plans for Sustainable Product Index
Index to measure product sustainability
VANCOUVER, Feb. 10 /CNW/ - Walmart Canada announced plans today to launch
a Sustainable Product Index that will ultimately help customers across Canada
evaluate the sustainability of the products they purchase, from raw materials
to disposal. Announced by Walmart in the U.S. this past summer, Walmart
Canada is the first Walmart operation outside of the U.S. to initiate the
process for the product index.
The announcement was made at the Walmart Canada Green Business Summit in
Vancouver today, a high-profile event which brought together more than 300 of
Canada's largest corporations, NGOs, academics and government leaders to
share the business case for sustainability.
"Customers want value and quality when buying products," said David
Cheesewright, President and CEO of Walmart Canada. "They also want to know
that products are being made in a responsible way. Once launched, the
Sustainable Product Index will give customers transparency into the entire
lifecycle of the products they buy, so they know they're safe, made-well and
produced responsibly."
The company will introduce the Sustainable Product Index initiative in
three long-range phases:
- Phase 1 - Supplier assessment
- Phase 2 - Creation of database
- Phase 3 - Development and launch of customer tool
Phase 1 - Supplier Assessment
-----------------------------
Beginning in the summer of 2010, Walmart Canada will provide its top
suppliers with a survey of 15 simple questions to evaluate their
sustainability efforts. The questions are divided into four areas: energy and
climate; material efficiency; natural resources, and; people and community.
The survey will be an important first step in assessing the sustainability of
suppliers and their products.
Phase 2 - Creation of Database
------------------------------
The second step will include the creation of a Sustainability Index
Consortium and the database that will house information on the lifecycle of
products. Wal-Mart Stores, Inc., Walmart Canada's parent company, will
initially fund and help create the Consortium, which will include
universities, other retailers, suppliers and non-government organizations
(NGOs).
The Consortium will take a research-driven approach to developing the
database, that will drive the Index, and will look at the full lifecycle of
products, from the use of raw materials to the way a product can be recycled
or disposed of.
Phase 3 - Development and Launch of Customer Tool
-------------------------------------------------
The final step will include the development and launch of the Sustainable
Product Index tool, which will help customers identify the sustainability of
a product with a simple and convenient rating system. How that information
will be delivered to customers is still to be determined, but it may take the
form of a numeric score, colour code or some other type of label. The
Sustainability Consortium will help determine the scoring process in the
coming months and years.
Timing for phases two and three of the initiative will be determined
later this year.
Source: Walmart Canada Press Release
Thursday, February 18, 2010
CRISIS IN HAITI: How You Can Help
In mid-January, Haiti was rocked by a devastating earthquake. Thousands of people have been injured or killed, homes and notable landmarks have been destroyed, and Port-au-Prince and the surrounding area have been reduced to rubble. Help is needed to guide this country and its citizens towards a path of rebuilding and recovering.
Those of us who have much-needed resources can provide help in a number of ways. Our sister publication, Viva, has collected some information on ways you can help - please visit the link below for more information.
http://www.vivamagonline.com/Haiti.html
Those of us who have much-needed resources can provide help in a number of ways. Our sister publication, Viva, has collected some information on ways you can help - please visit the link below for more information.
http://www.vivamagonline.com/Haiti.html
INDUSTRY TIPS: Consumers and Changing Consumer Behaviour
Matt Pillar at Retail Solutions Online, offers some solutions for dealing with consumers who are spending in the so-called "new economy". Have you encountered these types of consumers in your store? How do you interact with them to create the best possible customer experience? How do you educate your staff to deal with different types of customers?
_____________________________
Three Responses To Changing Consumer Behavior
By Matt Pillar, Editor In Chief, Retail Solutions Online/Integrated Solutions For Retailers
Read most any economy-related editorial published in the retail media and you'll find unanimous agreement on several observations of consumer spending in the "new economy." Among them:
* Shoppers are less impulsive, more needs-based
* Shoppers are far less loyal and more likely to shop around
* "Aspirational" shoppers have come to their senses and are living within their means.
So what? These observations are meaningless without a nugget of advice on how you should react to these changes. Late last week, I talked to two sharp executives from HP and SAS about these trends, and they shared some advice that you can take action on.
Dealing With The Needs-Based Consumer
Bjoern Petersen is president and general manager of the Retail Industry Group for HP Enterprise Services and an astute observer of the global retail landscape. While he laments the recession on one hand, on the other he sees value in what he terms a "correction" in consumer behavior in the U.S. "We're seeing less impulse shopping and more needs-based buying in America," he observes, "and while there's pent-up demand to go back to old spending habits, the means simply aren't there and won't be for some time." Throughout our discussion, Petersen reflected on his native Germany, where there exists a consumer-spending environment that he terms "far more conservative and needs-based, even in a boom economy." Petersen advises those U.S. retailers who are adjusting to changing consumer behavior to in turn adjust their merchandise mix and price points accordingly. "The merchandise and the brands that helped you beat the competition before won't help you now. Determine which products will. This recession is more prolonged than usual and there's no assurance that we'll return to boom shopping days, so don't be afraid to make sweeping changes at the merchandise level," he says.
What To Do About Loyalty Lost
If shopping has become about price for your consumer, then retailing should become about price for you. When was it a bad idea to respond to widespread consumer demands? Dianna McHenry, director of the global retail practice at SAS institute, says that gaining access to data that will help maximize the sale and margin performance of merchandise is hot among SAS customers. "We're seeing a lot of interest in price, markdown, and promotion optimization," she says. "Size optimization has been popular among apparel retailers, as has demand forecasting," she says. SAS recently announced price and pack optimization engagements with Aeropostale, Tilly's, and The Wet Seal.
At HP, Petersen sees a bright and growing future for m-commerce despite the gray cast of the recession, and it's the price-conscious, "I'll shop around" consumer that he credits for this growth. As such, "retailers must acknowledge that the consumer's mobile device has quickly become a tool that's called on during the selection and comparison process." Ironically, swift adoption of the phone as a shopping assistant has perhaps been fueled by the recession and, as such, happened more quickly than anticipated. Petersen encourages retailers to meet the consumer at all points of interaction by quickly developing and executing on a mobile strategy.
You should also consider your marketing and promotions strategy. If your consumer is suddenly less brand-aware and more price-conscious, create awareness around price, not brand and merchandise. Advertise more on price, less on product.
Keeping — Or Winning Back — The "Aspirational" Shopper
Loosely defined, the "aspirational" shopper spends more than he or she really should (based on income) on specific brands. Pre great recession, most of us fit this description at one time or another, some of us chronically. As pent-up demand unleashes and the economy slowly improves, some anticipate a return to this kind of spending behavior. Whether that happens or not, Petersen says retailers can make incremental adjustments to their merchandise mixes to retain or win back the folks who like to "shop up." In one example he suggests that, due to disposable income pressure, a certain segment of "aspirational" Ann Taylor shoppers migrated down to Macy's, some "aspirational" Macy's shoppers migrated down to Target, and so on down the line. As personal incomes rebound and the unemployed go back to work, what can Target do to keep its newfound Macy's shoppers? What can Ann Taylor do to get its defectors back?
Petersen points again to affecting change to the merchandise mix. He suggests that as the rebound occurs, retailers like Target might maximize their newfound "cool" factor by adjusting the quality, brand image, and even price point up to retain Macy's level defectors. Reciprocally, he says high-end retailers might lure newly price-conscious consumers back into the fold by building in a line of merchandise that comes with a more palatable price tag.
Ramping up sophisticated private-label brands can have an impact here as well. SAS' McHenry says the best private labelers have been at it for some time and were in good position to leverage established private label brands when the economy turned down. But this is a perfect time for retailers who haven't done so already to explore private labeling, which gives you more merchandise control, better time to market, and significantly better margins than name-brand merchandise. SAS' new traction in the grocery business (Wakefern is a recent customer win) is due in part to grocers' interest in analyzing private-label merchandise performance.
Source: Retail Solutions Online
_____________________________
Three Responses To Changing Consumer Behavior
By Matt Pillar, Editor In Chief, Retail Solutions Online/Integrated Solutions For Retailers
Read most any economy-related editorial published in the retail media and you'll find unanimous agreement on several observations of consumer spending in the "new economy." Among them:
* Shoppers are less impulsive, more needs-based
* Shoppers are far less loyal and more likely to shop around
* "Aspirational" shoppers have come to their senses and are living within their means.
So what? These observations are meaningless without a nugget of advice on how you should react to these changes. Late last week, I talked to two sharp executives from HP and SAS about these trends, and they shared some advice that you can take action on.
Dealing With The Needs-Based Consumer
Bjoern Petersen is president and general manager of the Retail Industry Group for HP Enterprise Services and an astute observer of the global retail landscape. While he laments the recession on one hand, on the other he sees value in what he terms a "correction" in consumer behavior in the U.S. "We're seeing less impulse shopping and more needs-based buying in America," he observes, "and while there's pent-up demand to go back to old spending habits, the means simply aren't there and won't be for some time." Throughout our discussion, Petersen reflected on his native Germany, where there exists a consumer-spending environment that he terms "far more conservative and needs-based, even in a boom economy." Petersen advises those U.S. retailers who are adjusting to changing consumer behavior to in turn adjust their merchandise mix and price points accordingly. "The merchandise and the brands that helped you beat the competition before won't help you now. Determine which products will. This recession is more prolonged than usual and there's no assurance that we'll return to boom shopping days, so don't be afraid to make sweeping changes at the merchandise level," he says.
What To Do About Loyalty Lost
If shopping has become about price for your consumer, then retailing should become about price for you. When was it a bad idea to respond to widespread consumer demands? Dianna McHenry, director of the global retail practice at SAS institute, says that gaining access to data that will help maximize the sale and margin performance of merchandise is hot among SAS customers. "We're seeing a lot of interest in price, markdown, and promotion optimization," she says. "Size optimization has been popular among apparel retailers, as has demand forecasting," she says. SAS recently announced price and pack optimization engagements with Aeropostale, Tilly's, and The Wet Seal.
At HP, Petersen sees a bright and growing future for m-commerce despite the gray cast of the recession, and it's the price-conscious, "I'll shop around" consumer that he credits for this growth. As such, "retailers must acknowledge that the consumer's mobile device has quickly become a tool that's called on during the selection and comparison process." Ironically, swift adoption of the phone as a shopping assistant has perhaps been fueled by the recession and, as such, happened more quickly than anticipated. Petersen encourages retailers to meet the consumer at all points of interaction by quickly developing and executing on a mobile strategy.
You should also consider your marketing and promotions strategy. If your consumer is suddenly less brand-aware and more price-conscious, create awareness around price, not brand and merchandise. Advertise more on price, less on product.
Keeping — Or Winning Back — The "Aspirational" Shopper
Loosely defined, the "aspirational" shopper spends more than he or she really should (based on income) on specific brands. Pre great recession, most of us fit this description at one time or another, some of us chronically. As pent-up demand unleashes and the economy slowly improves, some anticipate a return to this kind of spending behavior. Whether that happens or not, Petersen says retailers can make incremental adjustments to their merchandise mixes to retain or win back the folks who like to "shop up." In one example he suggests that, due to disposable income pressure, a certain segment of "aspirational" Ann Taylor shoppers migrated down to Macy's, some "aspirational" Macy's shoppers migrated down to Target, and so on down the line. As personal incomes rebound and the unemployed go back to work, what can Target do to keep its newfound Macy's shoppers? What can Ann Taylor do to get its defectors back?
Petersen points again to affecting change to the merchandise mix. He suggests that as the rebound occurs, retailers like Target might maximize their newfound "cool" factor by adjusting the quality, brand image, and even price point up to retain Macy's level defectors. Reciprocally, he says high-end retailers might lure newly price-conscious consumers back into the fold by building in a line of merchandise that comes with a more palatable price tag.
Ramping up sophisticated private-label brands can have an impact here as well. SAS' McHenry says the best private labelers have been at it for some time and were in good position to leverage established private label brands when the economy turned down. But this is a perfect time for retailers who haven't done so already to explore private labeling, which gives you more merchandise control, better time to market, and significantly better margins than name-brand merchandise. SAS' new traction in the grocery business (Wakefern is a recent customer win) is due in part to grocers' interest in analyzing private-label merchandise performance.
Source: Retail Solutions Online
BUSINESS NEWS: Whole Foods Reports First Quarter Results
Whole Foods is reporting that for the first quarter ended January 17, 2010, sales increased 7.0% to $2.6 billion. "Our first quarter results exceeded our own expectations on both the top and bottom line. Given the strong sales momentum we are seeing, there are many reasons to be bullish about our future results. It is relatively early in our recovery, however, and there is still a lot of uncertainty regarding where the economy, the consumer, and competition go from here," said John Mackey, chief executive officer and co-founder of Whole Foods Market.
_________________________
Whole Foods Market Reports First Quarter Results
AUSTIN, Texas, Feb 16, 2010 /PRNewswire via COMTEX/ -- Whole Foods Market, Inc. today reported results for the 16-week first quarter ended January 17, 2010. Sales increased 7.0% to $2.6 billion. Comparable store sales increased 3.5%, or -0.5% on a two-year stacked basis. Identical store sales, excluding five relocations and two major expansions, increased 2.5%, or -2.4% on a two-year stacked basis. Earnings before interest, taxes, depreciation and amortization ("EBITDA") increased 26% to $186.0 million. Income available to common shareholders increased 79% to $49.7 million, and diluted earnings per share increased 62% to $0.32 per diluted share.
The Company's comparable and identical store sales results for the last five quarters, first four weeks of the second quarter and year to date through February 14, 2010 are shown in the following table.
"Our first quarter results exceeded our own expectations on both the top and bottom line. Given the strong sales momentum we are seeing, there are many reasons to be bullish about our future results. It is relatively early in our recovery, however, and there is still a lot of uncertainty regarding where the economy, the consumer, and competition go from here," said John Mackey, chief executive officer and co-founder of Whole Foods Market. "Our raised outlook for the fiscal year reflects our cautiousness on the low end and our optimism on the high end. As the world moves out of this recession, we believe we are well positioned to produce strong returns for our shareholders."
During the quarter, the Company produced $161.5 million in cash flow from operations and invested $82.5 million in capital expenditures, of which $59.3 million related to new stores. This resulted in free cash flow of $78.9 million. Total cash and cash equivalents, including restricted cash, and short-term investments were $569.6 million, and total debt was $734.1 million. In addition, the Company currently has $337.7 million available on its credit line, net of $12.3 million in outstanding letters of credit.
For the quarter, gross profit, excluding LIFO, increased 84 basis points to 34.3% of sales due to an improvement in cost of goods sold which was partially offset by a slight increase in occupancy costs as a percentage of sales. The LIFO charge was $0.2 million versus $3.6 million last year, a positive impact of 14 basis points. Direct store expenses increased 12 basis points to 26.6% of sales driven by an increase in health care costs which was partially offset by an improvement in workers' compensation expense as a percentage of sales. As a result, store contribution, excluding LIFO, improved 73 basis points to 7.7% of sales.
"Early last year, we made the shift from being fairly reactionary on pricing to being much more strategic. We have seen this strategy successfully play out over the last several quarters, as we have produced strong year-over-year improvement in gross margin and comparable store sales growth," said Mr. Mackey. "While many of our competitors have gone back and forth on their pricing strategies, we remain focused on continuing to strike the right balance between driving sales over the long term by improving our value offerings while maintaining margin."
For stores in the identical store base, gross profit, excluding LIFO, improved 104 basis points to 34.5% of sales, direct store expenses improved seven basis points to 26.4% of sales, and store contribution improved 111 basis points to 8.1% of sales.
G&A expenses, excluding FTC-related legal costs, improved five basis points to 2.8% of sales. FTC-related legal costs totaled $0.7 million in the quarter versus $11.0 million in the prior year.
Pre-opening expenses were $12.8 million versus $14.1 million in the prior year.
Relocation, store closure and lease termination costs were $12.4 million, of which $10.1 million related to store closure reserve adjustments. The Company continues to make ongoing store closure reserve adjustments primarily related to changes in certain sub-tenant income estimates driven by the outlook for the commercial real estate market.
Growth and Development
The Company opened six stores and closed one former Wild Oats store in the first quarter. The Company currently has 289 stores totaling 10.7 million square feet. Three stores are expected to open in the second quarter.
Since the Company's fourth quarter earnings release, the Company has reduced the size of one store in development by 8,000 square feet and terminated two leases totaling approximately 103,000 square feet for stores previously scheduled to open in fiscal years 2012 and 2013. The Company also recently signed three new leases averaging 40,000 square feet in size - two in Ontario, Canada (Mississauga and Toronto) and Pembroke Pines, FL - all currently scheduled to open after fiscal year 2010.
The following table provides additional information about the Company's store openings in fiscal years 2009 and 2010, leases currently tendered but not opened, and total development pipeline for stores scheduled to open through fiscal year 2013. For accounting purposes, a store is considered tendered on the date the Company takes possession of the space for construction and other purposes, which is typically when the shell of the store is complete or nearing completion. The average tender period, or length of time between tender date and opening date, will vary depending on several factors, one of which is the number of acquired leases, ground leases and owned properties in development, all of which generally have longer tender periods than standard operating leases.
Redemption of Series A Preferred Stock
Leonard Green & Partners converted its preferred stock into common stock on November 26, 2009, increasing the Company's common stock outstanding by approximately 29.7 million shares. The Company made an $8.5 million dividend payment during the first quarter and issued approximately 0.4 million shares of common stock upon conversion for the pro-rated amount due on the second dividend. The conversion of the preferred stock will save the Company approximately $26 million in preferred cash dividends this year, and the net impact on diluted earnings per share will not be material.
Updated Assumptions for Fiscal Year 2010
The Company is raising its sales and earnings outlook for the fiscal year. For the twenty weeks ended February 14, 2010, total sales increased 7.8%. Comparable store sales increased 4.2%, and identical store sales increased 3.2%, or 0.1% and -1.8% on a two-year stacked basis, respectively. The Company is still in the early stages of recovery but believes it is reasonable to expect some sales momentum to continue for the remainder of the year. Accordingly, the Company is raising its sales outlook as follows: sales growth of 8.5% to 10.5%, comparable store sales growth of 3.5% to 5.5% (or 0.4% to 2.4% on a two-year stacked basis), and identical store sales growth of 2.9% to 4.9% (or -1.4% to 0.6% on a two-year stacked basis). The Company points out that the economic outlook remains uncertain, and it faces a significantly higher hurdle starting in the third quarter as identical store sales improved 224 basis points from the first half to the second half of fiscal year 2009. The Company has no relocations or significant expansions this fiscal year, so after the relocated Lincoln Park store anniversaries its opening in May, comparable and identical store sales growth will be the same. The Company still expects to open 16 new stores this year, six of which have already opened, translating to a 6% increase in ending square footage.
The Company now expects operating margin of 4.3% to 4.5% for fiscal year 2010. For the second through fourth quarters, the Company does not expect to generate the 57 basis point year-over-year improvement in gross margin, excluding LIFO, that it produced on average over the last three quarters. That higher level of improvement will be hard to sustain once the Company anniversaries the shift in its pricing strategy that occurred in the first half of last year. In addition, the Company has been taking advantage of buying opportunities to pass through values to its customers, but it is difficult to predict to what extent those opportunities will continue. The Company is committed to maintaining its relative price positioning, which might require a higher level of price investments going forward. The Company expects G&A as a percentage of sales to be in line with fiscal year 2009 results of 2.9% excluding FTC-related legal expenses.
Based on the Company's first quarter results and updated estimates for the year, including the possibility of further store closure reserve adjustments primarily related to changes in certain sub-tenant income estimates driven by the outlook for the commercial real estate market, the Company now expects total pre-opening and relocation costs in the range of $65 million to $70 million.
The Company is raising its estimates for EBITDA to $655 million to $685 million from a previous range of $625 million to $650 million and diluted earnings per share to $1.20 to $1.25 from a previous range of $1.05 to $1.10. After earning $0.32 per diluted share in the first quarter, this implies $0.88 to $0.93 per diluted share for the remaining three quarters of the year. The Company notes the fourth quarter is seasonally its weakest quarter.
Capital expenditures for the fiscal year are expected to be in the range of $350 million to $400 million. Of this amount, approximately 60% to 65% relates to new stores opening in fiscal year 2010 and beyond.
The Company is committed to producing positive free cash flow on an annual basis, including sufficient cash flow to fund the 51 stores in its current development pipeline. The following table provides information about the Company's estimated store openings through 2013 based on this pipeline. These openings reflect estimated tender dates, which are subject to change, and do not incorporate any potential new leases, terminations or square footage reductions.
SOURCE: Whole Foods Press Release
_________________________
Whole Foods Market Reports First Quarter Results
AUSTIN, Texas, Feb 16, 2010 /PRNewswire via COMTEX/ -- Whole Foods Market, Inc. today reported results for the 16-week first quarter ended January 17, 2010. Sales increased 7.0% to $2.6 billion. Comparable store sales increased 3.5%, or -0.5% on a two-year stacked basis. Identical store sales, excluding five relocations and two major expansions, increased 2.5%, or -2.4% on a two-year stacked basis. Earnings before interest, taxes, depreciation and amortization ("EBITDA") increased 26% to $186.0 million. Income available to common shareholders increased 79% to $49.7 million, and diluted earnings per share increased 62% to $0.32 per diluted share.
The Company's comparable and identical store sales results for the last five quarters, first four weeks of the second quarter and year to date through February 14, 2010 are shown in the following table.
"Our first quarter results exceeded our own expectations on both the top and bottom line. Given the strong sales momentum we are seeing, there are many reasons to be bullish about our future results. It is relatively early in our recovery, however, and there is still a lot of uncertainty regarding where the economy, the consumer, and competition go from here," said John Mackey, chief executive officer and co-founder of Whole Foods Market. "Our raised outlook for the fiscal year reflects our cautiousness on the low end and our optimism on the high end. As the world moves out of this recession, we believe we are well positioned to produce strong returns for our shareholders."
During the quarter, the Company produced $161.5 million in cash flow from operations and invested $82.5 million in capital expenditures, of which $59.3 million related to new stores. This resulted in free cash flow of $78.9 million. Total cash and cash equivalents, including restricted cash, and short-term investments were $569.6 million, and total debt was $734.1 million. In addition, the Company currently has $337.7 million available on its credit line, net of $12.3 million in outstanding letters of credit.
For the quarter, gross profit, excluding LIFO, increased 84 basis points to 34.3% of sales due to an improvement in cost of goods sold which was partially offset by a slight increase in occupancy costs as a percentage of sales. The LIFO charge was $0.2 million versus $3.6 million last year, a positive impact of 14 basis points. Direct store expenses increased 12 basis points to 26.6% of sales driven by an increase in health care costs which was partially offset by an improvement in workers' compensation expense as a percentage of sales. As a result, store contribution, excluding LIFO, improved 73 basis points to 7.7% of sales.
"Early last year, we made the shift from being fairly reactionary on pricing to being much more strategic. We have seen this strategy successfully play out over the last several quarters, as we have produced strong year-over-year improvement in gross margin and comparable store sales growth," said Mr. Mackey. "While many of our competitors have gone back and forth on their pricing strategies, we remain focused on continuing to strike the right balance between driving sales over the long term by improving our value offerings while maintaining margin."
For stores in the identical store base, gross profit, excluding LIFO, improved 104 basis points to 34.5% of sales, direct store expenses improved seven basis points to 26.4% of sales, and store contribution improved 111 basis points to 8.1% of sales.
G&A expenses, excluding FTC-related legal costs, improved five basis points to 2.8% of sales. FTC-related legal costs totaled $0.7 million in the quarter versus $11.0 million in the prior year.
Pre-opening expenses were $12.8 million versus $14.1 million in the prior year.
Relocation, store closure and lease termination costs were $12.4 million, of which $10.1 million related to store closure reserve adjustments. The Company continues to make ongoing store closure reserve adjustments primarily related to changes in certain sub-tenant income estimates driven by the outlook for the commercial real estate market.
Growth and Development
The Company opened six stores and closed one former Wild Oats store in the first quarter. The Company currently has 289 stores totaling 10.7 million square feet. Three stores are expected to open in the second quarter.
Since the Company's fourth quarter earnings release, the Company has reduced the size of one store in development by 8,000 square feet and terminated two leases totaling approximately 103,000 square feet for stores previously scheduled to open in fiscal years 2012 and 2013. The Company also recently signed three new leases averaging 40,000 square feet in size - two in Ontario, Canada (Mississauga and Toronto) and Pembroke Pines, FL - all currently scheduled to open after fiscal year 2010.
The following table provides additional information about the Company's store openings in fiscal years 2009 and 2010, leases currently tendered but not opened, and total development pipeline for stores scheduled to open through fiscal year 2013. For accounting purposes, a store is considered tendered on the date the Company takes possession of the space for construction and other purposes, which is typically when the shell of the store is complete or nearing completion. The average tender period, or length of time between tender date and opening date, will vary depending on several factors, one of which is the number of acquired leases, ground leases and owned properties in development, all of which generally have longer tender periods than standard operating leases.
Redemption of Series A Preferred Stock
Leonard Green & Partners converted its preferred stock into common stock on November 26, 2009, increasing the Company's common stock outstanding by approximately 29.7 million shares. The Company made an $8.5 million dividend payment during the first quarter and issued approximately 0.4 million shares of common stock upon conversion for the pro-rated amount due on the second dividend. The conversion of the preferred stock will save the Company approximately $26 million in preferred cash dividends this year, and the net impact on diluted earnings per share will not be material.
Updated Assumptions for Fiscal Year 2010
The Company is raising its sales and earnings outlook for the fiscal year. For the twenty weeks ended February 14, 2010, total sales increased 7.8%. Comparable store sales increased 4.2%, and identical store sales increased 3.2%, or 0.1% and -1.8% on a two-year stacked basis, respectively. The Company is still in the early stages of recovery but believes it is reasonable to expect some sales momentum to continue for the remainder of the year. Accordingly, the Company is raising its sales outlook as follows: sales growth of 8.5% to 10.5%, comparable store sales growth of 3.5% to 5.5% (or 0.4% to 2.4% on a two-year stacked basis), and identical store sales growth of 2.9% to 4.9% (or -1.4% to 0.6% on a two-year stacked basis). The Company points out that the economic outlook remains uncertain, and it faces a significantly higher hurdle starting in the third quarter as identical store sales improved 224 basis points from the first half to the second half of fiscal year 2009. The Company has no relocations or significant expansions this fiscal year, so after the relocated Lincoln Park store anniversaries its opening in May, comparable and identical store sales growth will be the same. The Company still expects to open 16 new stores this year, six of which have already opened, translating to a 6% increase in ending square footage.
The Company now expects operating margin of 4.3% to 4.5% for fiscal year 2010. For the second through fourth quarters, the Company does not expect to generate the 57 basis point year-over-year improvement in gross margin, excluding LIFO, that it produced on average over the last three quarters. That higher level of improvement will be hard to sustain once the Company anniversaries the shift in its pricing strategy that occurred in the first half of last year. In addition, the Company has been taking advantage of buying opportunities to pass through values to its customers, but it is difficult to predict to what extent those opportunities will continue. The Company is committed to maintaining its relative price positioning, which might require a higher level of price investments going forward. The Company expects G&A as a percentage of sales to be in line with fiscal year 2009 results of 2.9% excluding FTC-related legal expenses.
Based on the Company's first quarter results and updated estimates for the year, including the possibility of further store closure reserve adjustments primarily related to changes in certain sub-tenant income estimates driven by the outlook for the commercial real estate market, the Company now expects total pre-opening and relocation costs in the range of $65 million to $70 million.
The Company is raising its estimates for EBITDA to $655 million to $685 million from a previous range of $625 million to $650 million and diluted earnings per share to $1.20 to $1.25 from a previous range of $1.05 to $1.10. After earning $0.32 per diluted share in the first quarter, this implies $0.88 to $0.93 per diluted share for the remaining three quarters of the year. The Company notes the fourth quarter is seasonally its weakest quarter.
Capital expenditures for the fiscal year are expected to be in the range of $350 million to $400 million. Of this amount, approximately 60% to 65% relates to new stores opening in fiscal year 2010 and beyond.
The Company is committed to producing positive free cash flow on an annual basis, including sufficient cash flow to fund the 51 stores in its current development pipeline. The following table provides information about the Company's estimated store openings through 2013 based on this pipeline. These openings reflect estimated tender dates, which are subject to change, and do not incorporate any potential new leases, terminations or square footage reductions.
SOURCE: Whole Foods Press Release
BUSINESS NEWS: Walmart Reports Fourth Quarter and Fiscal 2010 Results
Walmart has announced the Company's fourth quarter and fiscal year 2010 results. Net sales for the full year topped $405 billion, with International net sales exceeding $100 billion for the first time. "Walmart's exceptional earnings for the fourth quarter and the full year exceeded our expectations," said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer. "These results reflect the ongoing underlying strength of our business and our strategies to improve shareholder value through our priorities - delivering growth, leveraging expenses and improving returns.
________________________
Walmart Reports Fourth Quarter and Fiscal Year 2010 Results
Earnings Exceed Guidance and First Call Consensus Estimate Highlights
- Walmart reports fourth quarter earnings per share of $1.23 and adjusted earnings per share(1) of $1.17, five cents above the company's latest guidance and five cents above the First Call consensus estimate.
- The company's full year EPS was $3.72 and adjusted EPS was $3.66.
- Net sales for the full year topped $405 billion, with International net sales exceeding $100 billion for the first time. Walmart U.S. comparable store sales for the fourth quarter were below guidance.
- Consolidated operating income for the fourth quarter was $7.3 billion, up 13.8 percent from last year.
- The company leveraged operating expenses for the fourth quarter and expects to leverage expenses for fiscal year 2011.
- Walmart ended the year with strong free cash flow(1) of $14.1 billion, an increase over last year of almost 21 percent.
- The company has returned $11.5 billion to shareholders through dividends and share repurchase this fiscal year, a level of return that is 58 percent higher than last year.
- Walmart posted a pre-tax return on investment(1) (ROI) of 19.3 percent for fiscal year 2010, equal to last fiscal year's ROI.
--(1) See additional information at the end of the release regarding non-GAAP financial measures.
BENTONVILLE, Ark., Feb 18, 2010 /PRNewswire via COMTEX/ -- Wal-Mart Stores, Inc. (NYSE: WMT) today reported financial results for the quarter and year ended Jan. 31, 2010. Net sales for the fourth quarter of fiscal year 2010 were $112.8 billion, an increase of 4.6 percent from $107.9 billion in the fourth quarter last year. Net sales for the fourth quarter included a currency exchange rate benefit of $1.9 billion. Income from continuing operations attributable to Walmart for the quarter was $4.7 billion, an increase of almost 24 percent from $3.8 billion in the fourth quarter last year.
Diluted earnings per share from continuing operations attributable to Walmart ("EPS") for the fourth quarter of fiscal year 2010 were $1.23. This compares to EPS of $0.96 in the fourth quarter last year. Adjusted earnings from continuing operations attributable to Walmart for the fourth quarter of fiscal year 2010 were $4.5 billion, or $1.17 per share, after adjusting for the following items:
* $372 million, or $0.10 per share, in net tax benefits primarily from the repatriation of certain non-U.S. earnings that increased U.S. foreign tax credits; and
* $260 million charge ($162 million net of tax), or $0.04 per share, from several business restructurings.
By comparison, adjusted earnings from continuing operations attributable to Walmart for the fourth quarter of fiscal 2009 were $4.0 billion, or $1.03 per share, after adjusting for the $382 million charge ($255 million net of tax), or $0.07 per share, due to the settlement of 63 wage-and-hour class action lawsuits.
Net sales for the fiscal year were $405.0 billion, an increase of 1.0 percent over fiscal year 2009. On a constant currency basis, net sales for the fiscal year would have been $9.8 billion higher, increasing 3.4 percent to approximately $414.8 billion. Income from continuing operations attributable to Walmart increased to $14.4 billion from $13.3 billion in fiscal year 2009, an increase of 8.8 percent.
For fiscal year 2010, adjusted earnings from continuing operations attributable to Walmart were $14.2 billion, or $3.66 per share, versus $13.5 billion or $3.42 per share in the prior year, an increase of 7.0 percent per share.
Adjusted EPS for both the fourth quarter and the full year were also above the company's most recent guidance of $1.08 to $1.12 and $3.57 to $3.61 respectively, as well as above First Call consensus.
Three Strategic Priorities - Growth, Leverage and Returns
"Walmart's exceptional earnings for the fourth quarter and the full year exceeded our expectations," said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer. "These results reflect the ongoing underlying strength of our business and our strategies to improve shareholder value through our priorities - delivering growth, leveraging expenses and improving returns.
"We successfully shifted the productivity loop into higher gear. The diligent way we managed our businesses and tight control of our costs resulted in the company leveraging operating expenses for the fourth quarter," Duke explained. "We plan to grow expenses slower than the rate of sales in the new fiscal year.
"The company added more than 34 million net square feet of selling space this year, with International contributing more than half of that growth," said Duke. "We expect continued strong growth from International this fiscal year. U.S. sales will be more challenging in the first quarter, as Walmart U.S. cycles through strong year-over-year comparisons and deflation. We remain focused on growing top line sales, and expect improvement in the United States as the year progresses."
Walmart continues to generate strong free cash flow, reporting a record $14.1 billion in fiscal year 2010. This is an increase of almost 21 percent over the $11.6 billion reported in the prior year. Duke also noted that the company continued to deliver consistency in pre-tax returns, ending fiscal year 2010 with return on investment (ROI) of 19.3 percent, equal to last year.
Source: Walmart Press Release
________________________
Walmart Reports Fourth Quarter and Fiscal Year 2010 Results
Earnings Exceed Guidance and First Call Consensus Estimate Highlights
- Walmart reports fourth quarter earnings per share of $1.23 and adjusted earnings per share(1) of $1.17, five cents above the company's latest guidance and five cents above the First Call consensus estimate.
- The company's full year EPS was $3.72 and adjusted EPS was $3.66.
- Net sales for the full year topped $405 billion, with International net sales exceeding $100 billion for the first time. Walmart U.S. comparable store sales for the fourth quarter were below guidance.
- Consolidated operating income for the fourth quarter was $7.3 billion, up 13.8 percent from last year.
- The company leveraged operating expenses for the fourth quarter and expects to leverage expenses for fiscal year 2011.
- Walmart ended the year with strong free cash flow(1) of $14.1 billion, an increase over last year of almost 21 percent.
- The company has returned $11.5 billion to shareholders through dividends and share repurchase this fiscal year, a level of return that is 58 percent higher than last year.
- Walmart posted a pre-tax return on investment(1) (ROI) of 19.3 percent for fiscal year 2010, equal to last fiscal year's ROI.
--(1) See additional information at the end of the release regarding non-GAAP financial measures.
BENTONVILLE, Ark., Feb 18, 2010 /PRNewswire via COMTEX/ -- Wal-Mart Stores, Inc. (NYSE: WMT) today reported financial results for the quarter and year ended Jan. 31, 2010. Net sales for the fourth quarter of fiscal year 2010 were $112.8 billion, an increase of 4.6 percent from $107.9 billion in the fourth quarter last year. Net sales for the fourth quarter included a currency exchange rate benefit of $1.9 billion. Income from continuing operations attributable to Walmart for the quarter was $4.7 billion, an increase of almost 24 percent from $3.8 billion in the fourth quarter last year.
Diluted earnings per share from continuing operations attributable to Walmart ("EPS") for the fourth quarter of fiscal year 2010 were $1.23. This compares to EPS of $0.96 in the fourth quarter last year. Adjusted earnings from continuing operations attributable to Walmart for the fourth quarter of fiscal year 2010 were $4.5 billion, or $1.17 per share, after adjusting for the following items:
* $372 million, or $0.10 per share, in net tax benefits primarily from the repatriation of certain non-U.S. earnings that increased U.S. foreign tax credits; and
* $260 million charge ($162 million net of tax), or $0.04 per share, from several business restructurings.
By comparison, adjusted earnings from continuing operations attributable to Walmart for the fourth quarter of fiscal 2009 were $4.0 billion, or $1.03 per share, after adjusting for the $382 million charge ($255 million net of tax), or $0.07 per share, due to the settlement of 63 wage-and-hour class action lawsuits.
Net sales for the fiscal year were $405.0 billion, an increase of 1.0 percent over fiscal year 2009. On a constant currency basis, net sales for the fiscal year would have been $9.8 billion higher, increasing 3.4 percent to approximately $414.8 billion. Income from continuing operations attributable to Walmart increased to $14.4 billion from $13.3 billion in fiscal year 2009, an increase of 8.8 percent.
For fiscal year 2010, adjusted earnings from continuing operations attributable to Walmart were $14.2 billion, or $3.66 per share, versus $13.5 billion or $3.42 per share in the prior year, an increase of 7.0 percent per share.
Adjusted EPS for both the fourth quarter and the full year were also above the company's most recent guidance of $1.08 to $1.12 and $3.57 to $3.61 respectively, as well as above First Call consensus.
Three Strategic Priorities - Growth, Leverage and Returns
"Walmart's exceptional earnings for the fourth quarter and the full year exceeded our expectations," said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer. "These results reflect the ongoing underlying strength of our business and our strategies to improve shareholder value through our priorities - delivering growth, leveraging expenses and improving returns.
"We successfully shifted the productivity loop into higher gear. The diligent way we managed our businesses and tight control of our costs resulted in the company leveraging operating expenses for the fourth quarter," Duke explained. "We plan to grow expenses slower than the rate of sales in the new fiscal year.
"The company added more than 34 million net square feet of selling space this year, with International contributing more than half of that growth," said Duke. "We expect continued strong growth from International this fiscal year. U.S. sales will be more challenging in the first quarter, as Walmart U.S. cycles through strong year-over-year comparisons and deflation. We remain focused on growing top line sales, and expect improvement in the United States as the year progresses."
Walmart continues to generate strong free cash flow, reporting a record $14.1 billion in fiscal year 2010. This is an increase of almost 21 percent over the $11.6 billion reported in the prior year. Duke also noted that the company continued to deliver consistency in pre-tax returns, ending fiscal year 2010 with return on investment (ROI) of 19.3 percent, equal to last year.
Source: Walmart Press Release
Wednesday, February 17, 2010
CRISIS IN HAITI: How You Can Help
In mid-January, Haiti was rocked by a devastating earthquake. Thousands of people have been injured or killed, homes and notable landmarks have been destroyed, and Port-au-Prince and the surrounding area have been reduced to rubble. Help is needed to guide this country and its citizens towards a path of rebuilding and recovering.
Those of us who have much-needed resources can provide help in a number of ways. Our sister publication, Viva, has collected some information on ways you can help - please visit the link below for more information.
http://www.vivamagonline.com/Haiti.html
Those of us who have much-needed resources can provide help in a number of ways. Our sister publication, Viva, has collected some information on ways you can help - please visit the link below for more information.
http://www.vivamagonline.com/Haiti.html
INDUSTRY TIPS: Task Management - RetailWire
Via RetailWire, Bill Bittner, President of BWH Consulting, explores Task Management and how it can help (and hinder) your store operations. How do you plan task management in your retail operation?
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BrainTrust Query: Can Task Management Go Too Far?
By Bill Bittner, President, BWH Consulting
Talk to anyone outside of store operations and they will give you an ear full about poor execution at store level. Talk to anyone in store operations and they will give you an ear full about all the stupid requests they get from category managers, marketing, human resources and loss prevention. The truth probably lies somewhere between the two perspectives, but most would agree that things could stand improvement and the latest tools to address the issue are task management applications.
Task management applications range from simple to-do lists that can be used by individuals to set their personal priorities, to network-based applications that help coordinate merchandising plans across multiple locations by scheduling display preparation and other in-store activities. The fundamental steps for task management involve: planning, allocating, setting goals, organizing, prioritizing, scheduling, delegation, monitoring, and analysis of time spent.
By moving these steps to the network, it is easier for everyone dependent on store performance to see how their activities overlap and monitor their execution. For example, maybe it makes more sense to wait until the upcoming reset to clean the shelves. By making requests visible to everyone and coordinating execution, the burden on the store can be reduced.
Task management applications can help the store achieve better results, but there could be a downside in the loss of "ownership" by store management. Traditionally the store manager works with department heads to plan weekly activities and set priorities. To the extent that the task management application organizes all the demands on the store and discourages outside departments from overloading the store, it is a help. But if store managers no longer have the authority to set priorities or manage the activity within their four walls, will the store lose the hands-on fine-tuning that many organizations rely on?
SOURCE: RetailWire
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BrainTrust Query: Can Task Management Go Too Far?
By Bill Bittner, President, BWH Consulting
Talk to anyone outside of store operations and they will give you an ear full about poor execution at store level. Talk to anyone in store operations and they will give you an ear full about all the stupid requests they get from category managers, marketing, human resources and loss prevention. The truth probably lies somewhere between the two perspectives, but most would agree that things could stand improvement and the latest tools to address the issue are task management applications.
Task management applications range from simple to-do lists that can be used by individuals to set their personal priorities, to network-based applications that help coordinate merchandising plans across multiple locations by scheduling display preparation and other in-store activities. The fundamental steps for task management involve: planning, allocating, setting goals, organizing, prioritizing, scheduling, delegation, monitoring, and analysis of time spent.
By moving these steps to the network, it is easier for everyone dependent on store performance to see how their activities overlap and monitor their execution. For example, maybe it makes more sense to wait until the upcoming reset to clean the shelves. By making requests visible to everyone and coordinating execution, the burden on the store can be reduced.
Task management applications can help the store achieve better results, but there could be a downside in the loss of "ownership" by store management. Traditionally the store manager works with department heads to plan weekly activities and set priorities. To the extent that the task management application organizes all the demands on the store and discourages outside departments from overloading the store, it is a help. But if store managers no longer have the authority to set priorities or manage the activity within their four walls, will the store lose the hands-on fine-tuning that many organizations rely on?
SOURCE: RetailWire
INDUSTRY NEWS: Whole Foods To Expand in Ontario
Whole Foods Market is set to expand the Company's reach across Ontario with two new locations that will be opening in Mississauga and North York.
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Whole Foods Market® to Expand in Ontario
Two New Locations Announced on Earnings Call
Toronto (February 16, 2010) – Whole Foods Market (Nasdaq: WFMI), the world’s leading natural and organic foods supermarket announced Tuesday that two new locations will be opening in Ontario – one in Mississauga in the Square One shopping complex; the other in Toronto’s North York area.
“At Whole Foods Market, we want to share our enthusiasm for the freshest, most flavorful natural and organic foods available, and we are thrilled to grow our business in Ontario,” comments Michael Bashaw, Midwest Regional President. “I opened Whole Foods Market’s first Canadian store in 2002. Ever since then, I’ve been convinced that Ontario is a great location for more Whole Foods Market stores. We definitely plan for further growth in the area,” says Bashaw.
The stores will reflect the company’s mission of supporting sustainable agriculture and the environment by featuring natural, organic foods, which are free of artificial ingredients and hydrogenated fats. With a focus on fresh, organic fruits and vegetables, specialty items, high-quality meats and poultry, everyday pantry staples and sustainable seafood, the store will appeal to a variety of customers ranging from the health conscious to serious gourmands.
About Whole Foods Market Team Members
Whole Foods Market, which estimates it will add approximately 250 additional jobs in the areas, has been named by Fortune magazine as one of the “100 Best Companies to Work For” in the U.S. for 13 consecutive years – every year since the List’s inception.
“Whole Foods Market celebrates a unique and diverse workforce. We’re proud that our Team Members are truly passionate about sharing the joys of great-tasting food and natural lifestyle choices with others,” Bashaw says.
Commitment to the Community
Whole Foods Market has a history of establishing a deep commitment to each of the communities it serves. “These stores will allow us to deepen our commitment to the community. We look forward to building relationships with our neighbourhood partners,” Bashaw comments.
About the Mississauga Store
The store, set to open in 2011, will be located at Rathburn Road and Square One Drive. It will be located at the northeast corner of the Square One shopping complex in Mississauga as a standalone store. Square One is a popular shopping area known for its fashion events, contests, community celebrations and holiday spectacles. The city of Mississauga has been recognized as the safest city in Canada for the past eight years, offering family-oriented sports, leisure and arts facilities with 11 community centres and a vibrant downtown city centre.
“We couldn’t be more pleased to have Whole Foods Market join the Square One family,” states Nance MacDonald General Manager Square One Shopping Centre. “Whole Foods Market embodies everything we stand for at Square One: a devotion to community, a provider of delicious, high-quality foods and a topnotch employer.”
About the North York Store
The store, located at the corner of Yonge and Sheppard in Toronto’s North York community, is scheduled to open in 2013. It will be the ground level anchor of the Hullmark Centre, a destination hub destined to become a defining landmark. The development will be served by direct indoor access to the Yonge and Sheppard subway station. Hullmark Centre is being built by Tridel, ranked “Highest in Customer Satisfaction for a Fourth Consecutive Year” by J.D. Power and Associates. Hullmark Centre will be a Tridel Built Green, Built For Life® community that is registered with the Canada Green Building Council to pursue LEED® Certification. Yonge and Sheppard is the gateway to North York’s dynamic and growing downtown. Office towers, luxury condominiums, residential neighbourhoods, parks, restaurants and great shopping all make this an exciting community.
“Whole Foods Market is a natural fit for both the Hullmark Centre and the North York,” comments Dino Carmel, Chief Operating Officer, Tridel Builders Inc. “We cannot wait to get this store open and share Whole Foods Market’s wonderful natural and organic products with the community.”
Source: Whole Foods Press Release
___________________________
Whole Foods Market® to Expand in Ontario
Two New Locations Announced on Earnings Call
Toronto (February 16, 2010) – Whole Foods Market (Nasdaq: WFMI), the world’s leading natural and organic foods supermarket announced Tuesday that two new locations will be opening in Ontario – one in Mississauga in the Square One shopping complex; the other in Toronto’s North York area.
“At Whole Foods Market, we want to share our enthusiasm for the freshest, most flavorful natural and organic foods available, and we are thrilled to grow our business in Ontario,” comments Michael Bashaw, Midwest Regional President. “I opened Whole Foods Market’s first Canadian store in 2002. Ever since then, I’ve been convinced that Ontario is a great location for more Whole Foods Market stores. We definitely plan for further growth in the area,” says Bashaw.
The stores will reflect the company’s mission of supporting sustainable agriculture and the environment by featuring natural, organic foods, which are free of artificial ingredients and hydrogenated fats. With a focus on fresh, organic fruits and vegetables, specialty items, high-quality meats and poultry, everyday pantry staples and sustainable seafood, the store will appeal to a variety of customers ranging from the health conscious to serious gourmands.
About Whole Foods Market Team Members
Whole Foods Market, which estimates it will add approximately 250 additional jobs in the areas, has been named by Fortune magazine as one of the “100 Best Companies to Work For” in the U.S. for 13 consecutive years – every year since the List’s inception.
“Whole Foods Market celebrates a unique and diverse workforce. We’re proud that our Team Members are truly passionate about sharing the joys of great-tasting food and natural lifestyle choices with others,” Bashaw says.
Commitment to the Community
Whole Foods Market has a history of establishing a deep commitment to each of the communities it serves. “These stores will allow us to deepen our commitment to the community. We look forward to building relationships with our neighbourhood partners,” Bashaw comments.
About the Mississauga Store
The store, set to open in 2011, will be located at Rathburn Road and Square One Drive. It will be located at the northeast corner of the Square One shopping complex in Mississauga as a standalone store. Square One is a popular shopping area known for its fashion events, contests, community celebrations and holiday spectacles. The city of Mississauga has been recognized as the safest city in Canada for the past eight years, offering family-oriented sports, leisure and arts facilities with 11 community centres and a vibrant downtown city centre.
“We couldn’t be more pleased to have Whole Foods Market join the Square One family,” states Nance MacDonald General Manager Square One Shopping Centre. “Whole Foods Market embodies everything we stand for at Square One: a devotion to community, a provider of delicious, high-quality foods and a topnotch employer.”
About the North York Store
The store, located at the corner of Yonge and Sheppard in Toronto’s North York community, is scheduled to open in 2013. It will be the ground level anchor of the Hullmark Centre, a destination hub destined to become a defining landmark. The development will be served by direct indoor access to the Yonge and Sheppard subway station. Hullmark Centre is being built by Tridel, ranked “Highest in Customer Satisfaction for a Fourth Consecutive Year” by J.D. Power and Associates. Hullmark Centre will be a Tridel Built Green, Built For Life® community that is registered with the Canada Green Building Council to pursue LEED® Certification. Yonge and Sheppard is the gateway to North York’s dynamic and growing downtown. Office towers, luxury condominiums, residential neighbourhoods, parks, restaurants and great shopping all make this an exciting community.
“Whole Foods Market is a natural fit for both the Hullmark Centre and the North York,” comments Dino Carmel, Chief Operating Officer, Tridel Builders Inc. “We cannot wait to get this store open and share Whole Foods Market’s wonderful natural and organic products with the community.”
Source: Whole Foods Press Release
Tuesday, February 16, 2010
RESEARCH NEWS: Probiotics During Pregnancy May Decrease Obsesity Risk in Child
A study, first published online ahead of print in the British Journal of Nutrition, finds that probiotics taken during pregnancy reduced the frequency of gestational diabetes mellitus and diminished risk of larger birth size in affected cases. Therefore, the researchers found that probiotic-supplemented perinatal dietary counselling can be a safe tool for addressing the fact that birth size is a risk marker for later obesity.
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Study Abstract:
Impact of maternal probiotic-supplemented dietary counselling on pregnancy outcome and prenatal and postnatal growth: a double-blind, placebo-controlled study
Raakel Luoto, Kirsi Laitinen, Merja Nermes and Erika Isolauri
British Journal of Nutrition
doi:10.1017/S0007114509993898 (About doi), Published Online by Cambridge University Press 04 Feb 2010
The perinatal nutritional environment impacts upon the health and well-being of mother and child also in the long term. The aim of the present study was to determine the safety and efficacy of perinatal probiotic-supplemented dietary counselling by evaluating pregnancy outcome and fetal and infant growth during the 24 months' follow-up. Altogether, 256 women were randomised at their first trimester of pregnancy into a control and a dietary intervention group. The intervention group received intensive dietary counselling provided by a nutritionist and were further randomised, double-blind to receive probiotics (Lactobacillus rhamnosus GG and Bifidobacterium lactis Bb12; diet/probiotics) or placebo (diet/placebo). Firstly, probiotic intervention reduced the frequency of gestational diabetes mellitus (GDM); 13 % (diet/probiotics) v. 36 % (diet/placebo) and 34 % (control); P = 0·003. Secondly, the safety of this approach was attested by normal duration of pregnancies with no adverse events in mothers or children. No significant differences in prenatal or postnatal growth rates among the study groups were detected. Thirdly, distinctive effects of the two interventions were detected; probiotic intervention reduced the risk of GDM and dietary intervention diminished the risk of larger birth size in affected cases; P = 0·035 for birth weight and P = 0·028 for birth length. The results of the present study show that probiotic-supplemented perinatal dietary counselling could be a safe and cost-effective tool in addressing the metabolic epidemic. In view of the fact that birth size is a risk marker for later obesity, the present results are of significance for public health in demonstrating that this risk is modifiable.
Source: British Journal of Nutrition
Published online ahead of print, doi: 10.1017/S0007114509993898
"Impact of maternal probiotic-supplemented dietary counselling on pregnancy outcome and prenatal and postnatal growth: a double-blind, placebo-controlled study"
Authors: R. Luoto, K. Laitinen, M. Nermes, E. Isolaur
_______________________
Study Abstract:
Impact of maternal probiotic-supplemented dietary counselling on pregnancy outcome and prenatal and postnatal growth: a double-blind, placebo-controlled study
Raakel Luoto, Kirsi Laitinen, Merja Nermes and Erika Isolauri
British Journal of Nutrition
doi:10.1017/S0007114509993898 (About doi), Published Online by Cambridge University Press 04 Feb 2010
The perinatal nutritional environment impacts upon the health and well-being of mother and child also in the long term. The aim of the present study was to determine the safety and efficacy of perinatal probiotic-supplemented dietary counselling by evaluating pregnancy outcome and fetal and infant growth during the 24 months' follow-up. Altogether, 256 women were randomised at their first trimester of pregnancy into a control and a dietary intervention group. The intervention group received intensive dietary counselling provided by a nutritionist and were further randomised, double-blind to receive probiotics (Lactobacillus rhamnosus GG and Bifidobacterium lactis Bb12; diet/probiotics) or placebo (diet/placebo). Firstly, probiotic intervention reduced the frequency of gestational diabetes mellitus (GDM); 13 % (diet/probiotics) v. 36 % (diet/placebo) and 34 % (control); P = 0·003. Secondly, the safety of this approach was attested by normal duration of pregnancies with no adverse events in mothers or children. No significant differences in prenatal or postnatal growth rates among the study groups were detected. Thirdly, distinctive effects of the two interventions were detected; probiotic intervention reduced the risk of GDM and dietary intervention diminished the risk of larger birth size in affected cases; P = 0·035 for birth weight and P = 0·028 for birth length. The results of the present study show that probiotic-supplemented perinatal dietary counselling could be a safe and cost-effective tool in addressing the metabolic epidemic. In view of the fact that birth size is a risk marker for later obesity, the present results are of significance for public health in demonstrating that this risk is modifiable.
Source: British Journal of Nutrition
Published online ahead of print, doi: 10.1017/S0007114509993898
"Impact of maternal probiotic-supplemented dietary counselling on pregnancy outcome and prenatal and postnatal growth: a double-blind, placebo-controlled study"
Authors: R. Luoto, K. Laitinen, M. Nermes, E. Isolaur
CRISIS IN HAITI: How You Can Help
In mid-January, Haiti was rocked by a devastating earthquake. Thousands of people have been injured or killed, homes and notable landmarks have been destroyed, and Port-au-Prince and the surrounding area have been reduced to rubble. Help is needed to guide this country and its citizens towards a path of rebuilding and recovering.
Those of us who have much-needed resources can provide help in a number of ways. Our sister publication, Viva, has collected some information on ways you can help - please visit the link below for more information.
http://www.vivamagonline.com/Haiti.html
Those of us who have much-needed resources can provide help in a number of ways. Our sister publication, Viva, has collected some information on ways you can help - please visit the link below for more information.
http://www.vivamagonline.com/Haiti.html
INDUSTRY NEWS: GNC Partners with Bright Food
GNC has announced a partnership with Bright Food Co., said to be named GNC China. Bright Food is a state-owned conglomerate in China's food industry and a direct subsidiary of Shanghai Municipal government and the State-owned Assets Supervision and Administration Commission of Shanhai Municipal Government. This is a growth opportunity for GNC in the PRC marketplace.
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GNC Announces Entry to China's Nutritional Products in Partnership with Bright Food
SHANGHAI, Feb. 12 /PRNewswire/ -- General Nutrition Centers, Inc. (GNC), a leading global retailer of nutritional products, announced today that it, together with its parent company, has entered into a memorandum of understanding to form a strategic partnership with Bright Food (Group) Co., LTD (Bright Food). The partnership, to be named GNC China, will participate in China's nutritional products market. Bright Food, a leading state-owned conglomerate in China's food industry, is a direct subsidiary of Shanghai Municipal government and the State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government. Shanghai Yantang Group, a wholly owned subsidiary of Bright Food, will be responsible for undertaking the collaboration with GNC.
"Based on our research on the nutrition industry in China, GNC believes there are significant growth opportunities in the PRC marketplace. We look forward to working with Bright Food, which has strong product, distribution and retail capabilities in China. GNC also shares an important strategic goal with Bright Food: to provide healthy and safe products for consumers in China and to participate in a key governmental initiative to focus on health and wellness," said Joe Fortunato, Chief Executive of GNC. "Our partnership with Shanghai Yantang Group will lay a solid foundation for GNC's market entry into China. We believe Chinese consumers will bring GNC products into their daily lives and we hope to raise levels of health awareness in China."
The collaboration between Shanghai Yantang Group and GNC marks an important development for Bright Food, which was established in August, 2006. "Bright Food's joining hands with GNC represents our company's formal entry in nutritional products, which will be a core strategic industry for Bright Foods. With China's GDP and consumer expenditure taking off in recent years, there are tremendous growth opportunities for nutritional products in China. And with the food safety laws that began to be implemented in 2009, food safety issues and health awareness have been elevated to a new height," commented Mr. Zongnan Wang, Chairman of the Board of Bright Food. "As a pioneer in the Chinese food industry, Bright Food has won the trust and preference of Chinese consumers. At the moment of this key industrial development, we believe that Bright Food must take on the responsibility to help guide the nutritional products industry forward. We strive to set a new benchmark for the PRC nutritional products industry through this collaboration with GNC, which will promote a sustainable and healthy development of the nutrition market."
The two companies expect to complete the formation of a joint venture and product launches by mid 2010. GNC China will promote the "GNC" brands in China's large to medium-sized cities and examine potential development opportunities in retailing, distribution and production when conditions permit.
GNC offers a family of comprehensive and competitive nutrition products, which includes over 1,000 products including diet, sports nutrition, male and female health, brain supplements, sleeping aid, natural herbal extracts, vitamins, and minerals. GNC products are sold in over 47 countries around the world.
"Bright Food's partnership with GNC in nutritional products will not only introduce GNC's popular products into China, but we will also seek GNC's assistance to improve and upgrade selected Bright Food products. In the future, the products of GNC and Bright Food's health related products will be sold in a wide range of retail formats in China," said Mr. Junjie Ge, Vice President of Bright Food and Chairman of Shanghai Yantang Group. Mr. Ge also stated: "Bright Food's collaboration with GNC is in line with our group's strategy of aligning with outstanding companies in various industries. The GNC partnership in the nutrition industry is expected to be a core focus for Bright Food and a key growth factor for our business."
SOURCE: GNC Press Release
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GNC Announces Entry to China's Nutritional Products in Partnership with Bright Food
SHANGHAI, Feb. 12 /PRNewswire/ -- General Nutrition Centers, Inc. (GNC), a leading global retailer of nutritional products, announced today that it, together with its parent company, has entered into a memorandum of understanding to form a strategic partnership with Bright Food (Group) Co., LTD (Bright Food). The partnership, to be named GNC China, will participate in China's nutritional products market. Bright Food, a leading state-owned conglomerate in China's food industry, is a direct subsidiary of Shanghai Municipal government and the State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government. Shanghai Yantang Group, a wholly owned subsidiary of Bright Food, will be responsible for undertaking the collaboration with GNC.
"Based on our research on the nutrition industry in China, GNC believes there are significant growth opportunities in the PRC marketplace. We look forward to working with Bright Food, which has strong product, distribution and retail capabilities in China. GNC also shares an important strategic goal with Bright Food: to provide healthy and safe products for consumers in China and to participate in a key governmental initiative to focus on health and wellness," said Joe Fortunato, Chief Executive of GNC. "Our partnership with Shanghai Yantang Group will lay a solid foundation for GNC's market entry into China. We believe Chinese consumers will bring GNC products into their daily lives and we hope to raise levels of health awareness in China."
The collaboration between Shanghai Yantang Group and GNC marks an important development for Bright Food, which was established in August, 2006. "Bright Food's joining hands with GNC represents our company's formal entry in nutritional products, which will be a core strategic industry for Bright Foods. With China's GDP and consumer expenditure taking off in recent years, there are tremendous growth opportunities for nutritional products in China. And with the food safety laws that began to be implemented in 2009, food safety issues and health awareness have been elevated to a new height," commented Mr. Zongnan Wang, Chairman of the Board of Bright Food. "As a pioneer in the Chinese food industry, Bright Food has won the trust and preference of Chinese consumers. At the moment of this key industrial development, we believe that Bright Food must take on the responsibility to help guide the nutritional products industry forward. We strive to set a new benchmark for the PRC nutritional products industry through this collaboration with GNC, which will promote a sustainable and healthy development of the nutrition market."
The two companies expect to complete the formation of a joint venture and product launches by mid 2010. GNC China will promote the "GNC" brands in China's large to medium-sized cities and examine potential development opportunities in retailing, distribution and production when conditions permit.
GNC offers a family of comprehensive and competitive nutrition products, which includes over 1,000 products including diet, sports nutrition, male and female health, brain supplements, sleeping aid, natural herbal extracts, vitamins, and minerals. GNC products are sold in over 47 countries around the world.
"Bright Food's partnership with GNC in nutritional products will not only introduce GNC's popular products into China, but we will also seek GNC's assistance to improve and upgrade selected Bright Food products. In the future, the products of GNC and Bright Food's health related products will be sold in a wide range of retail formats in China," said Mr. Junjie Ge, Vice President of Bright Food and Chairman of Shanghai Yantang Group. Mr. Ge also stated: "Bright Food's collaboration with GNC is in line with our group's strategy of aligning with outstanding companies in various industries. The GNC partnership in the nutrition industry is expected to be a core focus for Bright Food and a key growth factor for our business."
SOURCE: GNC Press Release
CONSUMER BEHAVIOUR: Consumers saved billions due to 2009 coupon distribution - Valassis
According to US media and marketing company Valassis, shoppers saved nearly $35 billion with coupons in 2009. Coupon distribution increased to 311 billion coupons, the largest single-year distribution quantity ever recorded. How can Canadian retailers stimulate consumer spending through value-added savings? What types of savings programs do you implement in your store?
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U.S. Coupon Market Posts Record-breaking Distribution and Redemption Numbers in 2009
Shoppers Save Nearly $3.5 Billion by Using Coupons
Livonia, Mich., Jan. 29, 2010: Valassis (NYSE: VCI), one of the nation’s leading media and marketing services companies, announced today that shoppers saved nearly $3.5 billion with coupons in 2009, according to the Year-end 2009 Consumer Packaged Goods (CPG) Coupon Industry Facts Report recently released by NCH Marketing Services,
Inc., a Valassis company. A record number of coupons in the marketplace contributed to this increase of $800 million, or nearly 30% more than 2008. CPG coupon distribution increased by 11% from 2008, to a total of 311 billion coupons distributed in 2009 – the largest single-year distribution quantity ever recorded. The majority of 2009 coupon distribution growth occurred as marketers chose to put paper coupons in the hands of consumers in a variety of different ways to stimulate product purchase decisions last year. Consumers redeemed nearly 3.2 billion coupons in 2009, a 23% increase over the prior year. This growth represented the second-highest increase ever recorded for year-over-year coupon redemption. Marketers also increased the average face value of coupons – up to $1.41 in 2009 from $1.29 in 2008.
“With interest in coupons by consumers at an all-time high and lasting savings habits being formed, we expect that coupons will continue to be an important tool marketers will use to reach and motivate consumers in 2010 and beyond,” said Suzie Brown, Valassis Chief Marketing Officer. “Through our consumer brand, RedPlum, we deliver savings and deals to over 100 million shoppers a week. These findings indicate our RedPlum portfolio is incredibly well positioned to deliver the values consumers are seeking today and tomorrow.”
Personal economic situations are causing consumers to make changes in savings and lifestyle habits. Over 30% of respondents to a 2009 NCH Consumer Survey indicated they are now more careful about remembering to bring their coupons to the store, with 74% stating they would maintain this new habit. Twenty-five percent of respondents also said they are now clipping more coupons than in the past.
“The state of the economy is influencing manufacturers and consumers as it relates to both distribution and redemption,” said Charlie Brown, NCH Vice President of Marketing. “This recession has been long enough and unemployment has been high enough, to have placed a greater emphasis on spending and savings habits since the last period of deep U.S. recession in the early 1990’s.”
In addition, results from NCH Consumer Surveys indicate 88% of respondents plan shopping lists using coupons, up 10 percentage points from before the recession began. Seventy-seven percent of respondents also indicated they regularly use coupons, up from 64% in 2007.
Source: Valassis Press Release
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U.S. Coupon Market Posts Record-breaking Distribution and Redemption Numbers in 2009
Shoppers Save Nearly $3.5 Billion by Using Coupons
Livonia, Mich., Jan. 29, 2010: Valassis (NYSE: VCI), one of the nation’s leading media and marketing services companies, announced today that shoppers saved nearly $3.5 billion with coupons in 2009, according to the Year-end 2009 Consumer Packaged Goods (CPG) Coupon Industry Facts Report recently released by NCH Marketing Services,
Inc., a Valassis company. A record number of coupons in the marketplace contributed to this increase of $800 million, or nearly 30% more than 2008. CPG coupon distribution increased by 11% from 2008, to a total of 311 billion coupons distributed in 2009 – the largest single-year distribution quantity ever recorded. The majority of 2009 coupon distribution growth occurred as marketers chose to put paper coupons in the hands of consumers in a variety of different ways to stimulate product purchase decisions last year. Consumers redeemed nearly 3.2 billion coupons in 2009, a 23% increase over the prior year. This growth represented the second-highest increase ever recorded for year-over-year coupon redemption. Marketers also increased the average face value of coupons – up to $1.41 in 2009 from $1.29 in 2008.
“With interest in coupons by consumers at an all-time high and lasting savings habits being formed, we expect that coupons will continue to be an important tool marketers will use to reach and motivate consumers in 2010 and beyond,” said Suzie Brown, Valassis Chief Marketing Officer. “Through our consumer brand, RedPlum, we deliver savings and deals to over 100 million shoppers a week. These findings indicate our RedPlum portfolio is incredibly well positioned to deliver the values consumers are seeking today and tomorrow.”
Personal economic situations are causing consumers to make changes in savings and lifestyle habits. Over 30% of respondents to a 2009 NCH Consumer Survey indicated they are now more careful about remembering to bring their coupons to the store, with 74% stating they would maintain this new habit. Twenty-five percent of respondents also said they are now clipping more coupons than in the past.
“The state of the economy is influencing manufacturers and consumers as it relates to both distribution and redemption,” said Charlie Brown, NCH Vice President of Marketing. “This recession has been long enough and unemployment has been high enough, to have placed a greater emphasis on spending and savings habits since the last period of deep U.S. recession in the early 1990’s.”
In addition, results from NCH Consumer Surveys indicate 88% of respondents plan shopping lists using coupons, up 10 percentage points from before the recession began. Seventy-seven percent of respondents also indicated they regularly use coupons, up from 64% in 2007.
Source: Valassis Press Release
INDUSTRY NEWS: Nordic Naturals Named 2010 Exporter of the Year by ThinkGlobal Inc.
Nordic Naturals has been named 2010 Exporter of the Year by U.S. Export Promotion Magazine. The Company produces fish oil supplements and related products, and began exporting to Canada in 2003.
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Nordic Naturals® Named Exporter of the Year by U.S. Export Promotion Magazine
Watsonville, CA (February 15, 2010) Nordic Naturals received a 2010 Exporter of the Year award from ThinkGlobal Inc., publisher of Commercial News USA, the official export promotion magazine of the U.S. Commerce Department.
“Since 1996, Nordic Naturals has been the industry leader in fish oil supplementation,” said Jean-Philippe Sidaner, Export Manager for Nordic Naturals. “The company has set the standard of excellence in the areas of purity, freshness, taste, and sustainability. In 2003, we began exporting to Canada and the UK. Today, we export to more than 25 countries on six continents.”
Criteria on which winners were selected included the total number of documented export transactions completed in 2008, the total percentage increase in sales in 2008 compared to 2007, exports as percentage of total sales, the company’s commitment to exporting, the company’s commitment to customer service, and the company’s innovation and originality in marketing products or services. To be eligible for the award, a company must currently be exporting from the United States.
“Our goal is to develop long-term relationships with passionate and motivated international partners and to carry out our mission of health and wellness,” said Sidaner. “Nordic Naturals is honored to have received the 2010 ThinkGlobal, Inc./Commercial News USA Exporter of the Year award.”
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Nordic Naturals® Named Exporter of the Year by U.S. Export Promotion Magazine
Watsonville, CA (February 15, 2010) Nordic Naturals received a 2010 Exporter of the Year award from ThinkGlobal Inc., publisher of Commercial News USA, the official export promotion magazine of the U.S. Commerce Department.
“Since 1996, Nordic Naturals has been the industry leader in fish oil supplementation,” said Jean-Philippe Sidaner, Export Manager for Nordic Naturals. “The company has set the standard of excellence in the areas of purity, freshness, taste, and sustainability. In 2003, we began exporting to Canada and the UK. Today, we export to more than 25 countries on six continents.”
Criteria on which winners were selected included the total number of documented export transactions completed in 2008, the total percentage increase in sales in 2008 compared to 2007, exports as percentage of total sales, the company’s commitment to exporting, the company’s commitment to customer service, and the company’s innovation and originality in marketing products or services. To be eligible for the award, a company must currently be exporting from the United States.
“Our goal is to develop long-term relationships with passionate and motivated international partners and to carry out our mission of health and wellness,” said Sidaner. “Nordic Naturals is honored to have received the 2010 ThinkGlobal, Inc./Commercial News USA Exporter of the Year award.”
Friday, February 12, 2010
CRISIS IN HAITI: How You Can Help
In mid-January, Haiti was rocked by a devastating earthquake. Thousands of people have been injured or killed, homes and notable landmarks have been destroyed, and Port-au-Prince and the surrounding area have been reduced to rubble. Help is needed to guide this country and its citizens towards a path of rebuilding and recovering.
Those of us who have much-needed resources can provide help in a number of ways. Our sister publication, Viva, has collected some information on ways you can help - please visit the link below for more information.
http://www.vivamagonline.com/Haiti.html
Those of us who have much-needed resources can provide help in a number of ways. Our sister publication, Viva, has collected some information on ways you can help - please visit the link below for more information.
http://www.vivamagonline.com/Haiti.html
RESEARCH NEWS: Combination of Nutrients May Combat Alzheimer's Effects
New research at MIT is showing that a combination of nutrients has the potential to improve memory in Alzheimer's patients by stimulating the growth of new brain connections.
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New approach to fighting Alzheimer’s shows potential in clinical trial
Nutrient mix shows promise in improving memory
written by: Anne Trafton, MIT News Office
CAMBRIDGE, Mass. — In the early stages of Alzheimer’s disease, patients typically suffer a major loss of the brain connections necessary for memory and information processing. Now, a combination of nutrients that was developed at MIT has shown the potential to improve memory in Alzheimer’s patients by stimulating growth of new brain connections.
In a clinical trial of 225 Alzheimer’s patients, researchers found that a cocktail of three naturally occurring nutrients believed to promote growth of those connections, known as synapses, plus other ingredients (B vitamins, phosopholipids and antioxidants), improved verbal memory in patients with mild Alzheimer's.
“If you can increase the number of synapses by enhancing their production, you might to some extent avoid that loss of cognitive ability,” says Richard Wurtman, the Cecil H. Green Distinguished Professor of Brain and Cognitive Sciences, who did the basic research that led to the new experimental treatment. He is an author of a paper describing the new results in the journal Alzheimer’s and Dementia.
There is currently no cure for Alzheimer’s disease, though some medications can slow the progression of the disease. In particular, many U.S. patients take cholinesterase inhibitors, which increase levels of acetylcholine, a neurotransmitter important for learning and memory.
While those treatments target the symptoms of Alzheimer’s, Wurtman hopes to attack what he believes is the root cause of the disease: loss of synapses. The three nutrients in his dietary cocktail — uridine, choline and the omega-3 fatty acid DHA (all normally present in breast milk) — are precursors to the fatty molecules that make up brain cell membranes, which form synapses.
In animal studies, Wurtman has shown that these nutrients boost the number of dendritic spines (small outcroppings of neural membranes). When those spines contact another neuron, a synapse is formed.
Three additional clinical studies in Alzheimer’s patients are now underway, one in the United States and two in Europe. Results are expected to be available between 2011 and 2013.
The first clinical study was sponsored by the French company Danone, known in the United States as Dannon; the study was conducted primarily in Europe and was led by Philip Scheltens, director of the Alzheimer Center at Vrije Universiteit Medical Center in Amsterdam. Wurtman and MIT have patented the mixture of nutrients used in the study, and Nutricia Advanced Medical Nutrition, a unit of Danone, holds the exclusive license on the patent.
Patients with mild Alzheimer’s drank the cocktail (made in the form of a nutrient drink called Souvenaid, with the collaboration of Danone) or a control beverage daily for 12 weeks. Patients who received the nutrients showed a statistically significant level of improvement compared to control subjects: 40 percent of the treated patients improved performance in a test of verbal memory (memory for words, as opposed to memory of locations or experiences) known as the Wechsler Memory Scale, while 24 percent of patients who received the control drink improved their performance. Among those who received the cocktail, patients with the mildest cases of Alzheimer’s showed the most improvement.
The drink appeared to have no effect on patients’ performance in another commonly used evaluation for Alzheimer’s patients, the ADAS-cog test. Wurtman believes that is because ADAS-cog is a more general assessment that tests for orientation and movement/spatial memory as well as cognition. So in subjects with early Alzheimer's who show principally cognitive changes, more than the 225 subjects in the first study will probably be required to yield significant ADAS-cog changes after Souvenaid. The 500 subjects in the ongoing study in the United States may be sufficient.
John Growdon, a neurologist at Massachusetts General Hospital, says that trying to regrow synapses is an innovative strategy and offers a complementary approach to two other lines of attack in treating Alzheimer’s: targeting the amyloid plaques that accumulate in patients’ brains, and minimizing the damage done by toxic metabolites that build up in Alzheimer’s-affected brains.
“I don’t think any one approach has a monopoly, and that’s good,” Growdon says. “You need to have a lot of different approaches because no one knows what’s going to work.”
Wurtman believes his approach to Alzheimer’s may eventually prove beneficial in treating other diseases. If these nutrients prove to be successful in Alzheimer’s patients, “then you can think about other diseases in which there are too few synapses,” such as Parkinson’s disease, he says. “There are a lot of diseases associated with synapse deficiency.”
Source: MIT Press Release
____________________________
New approach to fighting Alzheimer’s shows potential in clinical trial
Nutrient mix shows promise in improving memory
written by: Anne Trafton, MIT News Office
CAMBRIDGE, Mass. — In the early stages of Alzheimer’s disease, patients typically suffer a major loss of the brain connections necessary for memory and information processing. Now, a combination of nutrients that was developed at MIT has shown the potential to improve memory in Alzheimer’s patients by stimulating growth of new brain connections.
In a clinical trial of 225 Alzheimer’s patients, researchers found that a cocktail of three naturally occurring nutrients believed to promote growth of those connections, known as synapses, plus other ingredients (B vitamins, phosopholipids and antioxidants), improved verbal memory in patients with mild Alzheimer's.
“If you can increase the number of synapses by enhancing their production, you might to some extent avoid that loss of cognitive ability,” says Richard Wurtman, the Cecil H. Green Distinguished Professor of Brain and Cognitive Sciences, who did the basic research that led to the new experimental treatment. He is an author of a paper describing the new results in the journal Alzheimer’s and Dementia.
There is currently no cure for Alzheimer’s disease, though some medications can slow the progression of the disease. In particular, many U.S. patients take cholinesterase inhibitors, which increase levels of acetylcholine, a neurotransmitter important for learning and memory.
While those treatments target the symptoms of Alzheimer’s, Wurtman hopes to attack what he believes is the root cause of the disease: loss of synapses. The three nutrients in his dietary cocktail — uridine, choline and the omega-3 fatty acid DHA (all normally present in breast milk) — are precursors to the fatty molecules that make up brain cell membranes, which form synapses.
In animal studies, Wurtman has shown that these nutrients boost the number of dendritic spines (small outcroppings of neural membranes). When those spines contact another neuron, a synapse is formed.
Three additional clinical studies in Alzheimer’s patients are now underway, one in the United States and two in Europe. Results are expected to be available between 2011 and 2013.
The first clinical study was sponsored by the French company Danone, known in the United States as Dannon; the study was conducted primarily in Europe and was led by Philip Scheltens, director of the Alzheimer Center at Vrije Universiteit Medical Center in Amsterdam. Wurtman and MIT have patented the mixture of nutrients used in the study, and Nutricia Advanced Medical Nutrition, a unit of Danone, holds the exclusive license on the patent.
Patients with mild Alzheimer’s drank the cocktail (made in the form of a nutrient drink called Souvenaid, with the collaboration of Danone) or a control beverage daily for 12 weeks. Patients who received the nutrients showed a statistically significant level of improvement compared to control subjects: 40 percent of the treated patients improved performance in a test of verbal memory (memory for words, as opposed to memory of locations or experiences) known as the Wechsler Memory Scale, while 24 percent of patients who received the control drink improved their performance. Among those who received the cocktail, patients with the mildest cases of Alzheimer’s showed the most improvement.
The drink appeared to have no effect on patients’ performance in another commonly used evaluation for Alzheimer’s patients, the ADAS-cog test. Wurtman believes that is because ADAS-cog is a more general assessment that tests for orientation and movement/spatial memory as well as cognition. So in subjects with early Alzheimer's who show principally cognitive changes, more than the 225 subjects in the first study will probably be required to yield significant ADAS-cog changes after Souvenaid. The 500 subjects in the ongoing study in the United States may be sufficient.
John Growdon, a neurologist at Massachusetts General Hospital, says that trying to regrow synapses is an innovative strategy and offers a complementary approach to two other lines of attack in treating Alzheimer’s: targeting the amyloid plaques that accumulate in patients’ brains, and minimizing the damage done by toxic metabolites that build up in Alzheimer’s-affected brains.
“I don’t think any one approach has a monopoly, and that’s good,” Growdon says. “You need to have a lot of different approaches because no one knows what’s going to work.”
Wurtman believes his approach to Alzheimer’s may eventually prove beneficial in treating other diseases. If these nutrients prove to be successful in Alzheimer’s patients, “then you can think about other diseases in which there are too few synapses,” such as Parkinson’s disease, he says. “There are a lot of diseases associated with synapse deficiency.”
Source: MIT Press Release
CONSUMER BEHAVIOUR: Customers Service Expectations are Higher
According to an Empathica Consumers Insights survey, retailers are coping with higher customer expectations. According to the survey, 55% of US respondents said they feel customer service is getting worse. However, Canadians who responded to the survey were less negative about their customer service, with 45% indicating that customer service has gotten worse. Have you gauged your store's customer service lately? What are some ways you can improve your customer-staff relationship?
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Majority of U.S. Consumers: ‘Customer Service is Getting Worse’
Empathica Consumers Insights survey indicates that while Americans are spending less, retailers must cope with higher customer expectations.
By Gary Edwards, PhD, and Sherri Kolomayz
EMPATHICA CONSUMER INSIGHTS PANEL
Q1 2010, Issue 2
Empathica Inc., a leading provider of Customer Experience Management (CEM) solutions to some of the world’s most respected brands, announced that its survey of more than 13,000 American and Canadian consumers reveals that the majority believe customer service is suffering in today’s economy.
Fifty-five percent of U.S. consumers feel their country’s customer service is getting worse, 13% are unsure, and 32% say they haven’t seen service suffering in this economy. Canadians were less negative about their customer service, with 45% of consumers indicating customer service has gotten worse, compared to 39% who said it hasn’t gotten worse, and 16% reporting that they are unsure.
Insights chart
Regionally in the U.S., those in the South were more apt to say customer service is getting worse (58% of respondents), in contrast to the West who had 49% in agreement.
One in Five Consumers Value Good Service Over Good Food
Those who think customer service doesn’t matter should be aware. The data also revealed that customer service is so important to U.S. consumers, that one in five respondents said they value good customer service over good food. Younger people (18-34) were the bulk of respondents who responded this way, but were also the age group most forgiving of a bad experience at a restaurant.
Older customers (55+) were more willing to interact with management to either express their dissatisfaction, or offer a compliment.
“With consumers reducing their spending, they consequently have heightened expectations when they do go out,” explained Gary Edwards, EVP of Client Services at Empathica. “There is less tolerance for poor service, which is a huge challenge for casual and fine dining restaurant brands struggling with lower traffic, less incoming cash and higher expectations to deliver.”
The survey found that those who receive poor service -- even at a restaurant they’ve been to several times -- can cause huge damage to a brand. One in four U.S. consumers stated they would tell others not to go there in addition to never going again. In comparison, even more Canadians (28%) would take the same actions.
Despite Reduced Spending, Consumers are More Loyal to Brands They Love
While overall restaurant spending was down in 2009, the survey showed increased customer loyalty. In the current economy, consumers indicated they have been just as loyal (68.3%) or more loyal (15%) to specific restaurants.
The now commonplace practice of discounting and couponing, something unheard of for most casual dining brands just a year or two ago, seeks to entice new customers.
A coupon is most likely to encourage American consumers to try a new restaurant (44%), yet only 28% of Canadians agreed. In fact, a restaurant coupon or discount offer recently prompted 62% of Americans to go to a restaurant they might not have otherwise visited. Thirty-nine percent of Canadian consumers said the same thing.
“Expectations around the future economic outlook in part dictates consumer motivations for visiting a restaurant,” explained Edwards. “In this instance, our survey showed that while 67% of Canadians are optimistic about their economy, Americans are much more divided. Their consumer confidence is influencing their discretionary spending.”
Source: Empathica Press Release
_________________________
Majority of U.S. Consumers: ‘Customer Service is Getting Worse’
Empathica Consumers Insights survey indicates that while Americans are spending less, retailers must cope with higher customer expectations.
By Gary Edwards, PhD, and Sherri Kolomayz
EMPATHICA CONSUMER INSIGHTS PANEL
Q1 2010, Issue 2
Empathica Inc., a leading provider of Customer Experience Management (CEM) solutions to some of the world’s most respected brands, announced that its survey of more than 13,000 American and Canadian consumers reveals that the majority believe customer service is suffering in today’s economy.
Fifty-five percent of U.S. consumers feel their country’s customer service is getting worse, 13% are unsure, and 32% say they haven’t seen service suffering in this economy. Canadians were less negative about their customer service, with 45% of consumers indicating customer service has gotten worse, compared to 39% who said it hasn’t gotten worse, and 16% reporting that they are unsure.
Insights chart
Regionally in the U.S., those in the South were more apt to say customer service is getting worse (58% of respondents), in contrast to the West who had 49% in agreement.
One in Five Consumers Value Good Service Over Good Food
Those who think customer service doesn’t matter should be aware. The data also revealed that customer service is so important to U.S. consumers, that one in five respondents said they value good customer service over good food. Younger people (18-34) were the bulk of respondents who responded this way, but were also the age group most forgiving of a bad experience at a restaurant.
Older customers (55+) were more willing to interact with management to either express their dissatisfaction, or offer a compliment.
“With consumers reducing their spending, they consequently have heightened expectations when they do go out,” explained Gary Edwards, EVP of Client Services at Empathica. “There is less tolerance for poor service, which is a huge challenge for casual and fine dining restaurant brands struggling with lower traffic, less incoming cash and higher expectations to deliver.”
The survey found that those who receive poor service -- even at a restaurant they’ve been to several times -- can cause huge damage to a brand. One in four U.S. consumers stated they would tell others not to go there in addition to never going again. In comparison, even more Canadians (28%) would take the same actions.
Despite Reduced Spending, Consumers are More Loyal to Brands They Love
While overall restaurant spending was down in 2009, the survey showed increased customer loyalty. In the current economy, consumers indicated they have been just as loyal (68.3%) or more loyal (15%) to specific restaurants.
The now commonplace practice of discounting and couponing, something unheard of for most casual dining brands just a year or two ago, seeks to entice new customers.
A coupon is most likely to encourage American consumers to try a new restaurant (44%), yet only 28% of Canadians agreed. In fact, a restaurant coupon or discount offer recently prompted 62% of Americans to go to a restaurant they might not have otherwise visited. Thirty-nine percent of Canadian consumers said the same thing.
“Expectations around the future economic outlook in part dictates consumer motivations for visiting a restaurant,” explained Edwards. “In this instance, our survey showed that while 67% of Canadians are optimistic about their economy, Americans are much more divided. Their consumer confidence is influencing their discretionary spending.”
Source: Empathica Press Release
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