Mass Market Retailers articles from May 2005

Mass Market Retailers archives from May 2005

Albertsons' vision.(INDUSTRY NEWS)(Brief Article)
May 9, 2005... ALBERTSONS' VISION: Albertsons Inc. will provide shoppers with an array of information about the company, food preparation and other topics via 15-inch liquid crystal display screens at checkouts and 42-inch plasma screens in other locations....

Costco health plan.(INDUSTRY NEWS)(Brief Article)
May 9, 2005... COSTCO HEALTH PLAN: Costco Wholesale Corp. plans to offer a new service in California in the next six months--health insurance for individuals. Costco would not provide details about the new offering. The retailer has sold health insurance to...

New Safeway facility.(INDUSTRY NEWS)(Brief Article)
May 9, 2005... NEW SAFEWAY FACILITY: Work on Safeway Inc.'s new $175 million, state-of-the-art distribution center in Auburn, Wash., was completed in mid-April. The facility includes a dry goods warehouse measuring 538,000 square feet and refrigerated storage...

Signs of inflation.(INDUSTRY NEWS)(Brief Article)
May 9, 2005... SIGNS OF INFLATION: Ernst & Young's Quarterly Market Basket report reveals --for the first time since being issued in September 2003--that its three tracked areas are in an inflationary status. According to the latest index, released last...

Online music option.(INDUSTRY NEWS)(Brief Article)
May 9, 2005... ONLINE MUSIC OPTION: Wal-Mart Stores Inc. has launched an online music service allowing customers to customize CDs from an extensive library of tunes. Shoppers choose the songs and pay for them at the walmart.com web site. Wal-Mart then...

Costco says it will miss projections.
May 9, 2005... ISSAQUAH, Wash. -- Costco Wholesale Corp. warned that it expects its third quarter and full-year earnings to fall short of Wall Street's projections, citing lower-than-anticipated gross margins stemming from volatile gasoline prices....

Attacks on Wal-Mart continue.(anti-Wal-Mart campaign )(www.walmartwatch.com)(Brief Article)
May 9, 2005... NEW YORK -- Critics of Wal-Mart Stores Inc. have launched a another campaign against the retailer. The latest effort consists of a full-page, four-color ad, which appeared last month in The New York Times. It alleges that the retailer's...

Web Retail Exchanges GNX, WWRE decide to join forces.(WorldWide Retail Exchange)(Brief Article)
May 9, 2005... PARIS -- GNX and the WorldWide Retail Exchange (WWRE) are merging. The onetime rival retail exchanges were each founded more than five years ago with the aim of using the Internet to give member retailers the scale and efficiencies they...

FMI show gets more relevant.(SPOTLIGHT)(Food Marketing Institute)
May 9, 2005... CHICAGO -- This year the Food Marketing Institute is introducing a new format and several new features at the FMI Show being held at McCormick Place from May 1 through May 3. The innovations reflect the trade group's focus on issues and trends...

Meth abuse calls for Federal Law.(NEWS)
May 9, 2005... NEW YORK -- With a number of states mulling restrictions on sales of cold medicine as a way to curb the illicit methamphetamine trade, retailers are calling for the issue to be handled with a national law. Currently chains are forced to...

Rite Aid, ProCare RX do deal.(NEWS)(Brief Article)
May 9, 2005... CAMP HILL, Pa. -- Rite Aid Corp. is now providing pharmacy benefits management (PBM) services to employers, health plans and insurance companies. It has contracted with ProCare RX,, which has been serving the health care industry since...

Sam's measures who's confident.(NEWS)(Brief Article)
May 9, 2005... BENTONVILLE, Ark. -- Small businesses have more confidence in this country's economy than general consumers, according to the Small Business Confidence Index from Wal-Mart Stores Inc.'s Sam's Club. But small companies' confidence level is...

Getting the real story on slotting allowances.(OPINION)
May 9, 2005... Slotting allowances are one of the most contentious issues in mass marketing retailing. Critics assert that manufacturers' practice of paying retailers for shelf space gives them an unfair advantage over other suppliers and limits consumer...

Inexorably, things change ...(OPINION)(Industry Overview)
May 9, 2005... MMR's Annual Report of the Mass Market Retail Industries, which appears in this issue, contains more than a few surprises, most notably in the wildly diverse results of the various retail segments. Particularly stunning is the same-store...

How Wal-Mart, others can continue growing.(OPINION)
May 9, 2005... COLUMBUS, Ohio -- Wal-Mart Stores Inc. excels in providing its customers with the ultimate destination for low-cost replenishment shopping. For it to reach its ambitious goals for growth in the United States, however, the retailer will...

Scoreboard.(MONEY NEWS)(Illustration)
May 9, 2005... SCOREBOARD Net Quarter Dollar % Income RETAILERS Ended Sales Change (Loss) Burlington (1) 02/26 969.6 mil...

Biggest gainers.(MONEY)(Brief Article)(Illustration)
May 9, 2005... BIGGEST GAINERS Close Change % Stock 04/22/05 vs. 04/08/05 Change Burlington 28.32 +1.19 +4.4 Amerisource 60.00 +2.17 +3.8...

Biggest losers.(stores)(Brief Article)(Illustration)
May 9, 2005... BIGGEST LOSERS Close Change % Stock 04/22/05 vs. 04/08/05 Change Smart&Final 10.11 -2.22 -18.0 Costco 40.17 -6.01 -13.0 BJ's ...

Most active.(MONEY)(Illustration)
May 9, 2005... MOST ACTIVE Vol. (000) As a % Change vs. 1 Wk. Ended of Total 1 Wk. Ended Stock 04/22/05 Shares 04/08/05 Smart&Final 1,732 5.9 +328.4...

Walgreens has another strong qtr.(MONEY)
May 9, 2005... DEERFIELD, Ill. -- Even with higher costs associated with its conversion to digital photoprocessing labs and lower litigation gains this year, Walgreen Co. managed to post a 13.7% increase in earnings on a 12.4% advance in sales during the...

Rite Aid results mixed.(SPOTLIGHT)
May 9, 2005... CAMP HILL, Pa. -- Despite an ongoing lack of sales growth, Rite Aid Corp. was able to post major gains in net income for both the fourth quarter and fiscal 2005, thanks to a big income tax benefit. Even when adjusted, earnings for the quarter...

Pathmark in the Red.(MONEY)
May 9, 2005... CARTERET, N.J. -- Fourth quarter adjusted earnings exceeded analysts' expectations at Pathmark Stores Inc., but flat sales and a hefty charge to write down assets triggered net losses for both the fourth quarter and fiscal 2004 year. Just...

Industry sales top $1 trillion; Wal-Mart leads the pack.(Annual Report)
May 9, 2005... MMR Special Report--For the first time ever, the food, drug and discount store retailers that collectively constitute the mass market retailing community surpassed $1 trillion in sales. The actual figure was $1.06 trillion. They did so through...

Channel blurring is a fact of life.(Brief Article)(Industry Overview)
May 9, 2005... NEW YORK -- Consumers today are less and less likely to buy their groceries from a grocery store, their drugs from a drug store and their general merchandise from a store specializing in general merchandise. Instead, anyone needing a can of...

Slow, steady growth is order of the day.(FINANCIAL OUTLOOK)
May 9, 2005... NEW YORK -- Mass market retailing can expect a relatively strong economy for the balance of 2005 and further into 2006, several economists maintain. Interest rates should rise only slightly, and steady job growth should be sustained...

Retailers positioned to face tough, competitive market.(FINANCIAL OUTLOOK)(Industry Overview)
May 9, 2005... NEW YORK -- Mass market retailers will face satisfactory but highly competitive conditions as 2005 progresses, analysts say, adding that they expect sales gains to be solid as the nation's steadily growing economy continues to generate job...

Discount stores grow their boundaries.(DISCOUNT CHAINS)
May 9, 2005... NEW YORK -- Discount retailing continued to evolve in 2004, in response to both consumer needs and competitive pressures. As a result, the traditional general merchandise discount store format is being steadily transformed. Leading that...

Traditional rules don't apply in site selection.(DISCOUNT CHAINS)
May 9, 2005... NEW YORK -- As consumer shopping patterns change and retailers pursue growth opportunities wherever they exist, traditional real estate strategies are not only changing, they are being turned on their heads. The discount store format...

Wal-Mart focus is on what still needs doing.(WAL-MART)
May 9, 2005... BENTONVILLE, Ark. -- The last year for Wal-Mart Stores Inc. was, once again, a highly successful one, but not without its frustrations. On one hand, the world's largest company turned in another strong performance in its 2005 fiscal year....

It's all systems go at Sam's Club.(WAL-MART)
May 9, 2005... BENTONVILLE, Ark. -- The Sam's Club operation continued its impressive turnaround in fiscal 2005, although the division ran into a strong headwind in the fourth quarter and failed to meet its targets. "We're very pleased with the...

Ad campaign reaches out to set the record straight.(WAL-MART)(public relations)(Brief Article)
May 9, 2005... BENTONVILLE, Ark. -- While Wal-Mart continued to achieve double-digit profit and sales gains in fiscal 2005, it also drew mounting public criticism and scrutiny on a number of issues ranging from charges of low pay and class-action lawsuits by...

A slimmer target moves ahead aggressively.(Target Corp.)(Company Profile)
May 9, 2005... MINNEAPOLIS -- Last year Target Corp. passed a major milestone, exiting the department store business in order to focus on its highly successful discount operation. The retailer sold its Mervyn's and its Marshall Field's department store...

Upscale lines come in for bigger push.(TARGET)(website)(Brief Article)
May 9, 2005... MINNEAPOLIS -- Target Corp. customers can find a growing number of upscale, exclusive selections from well-known designers in clothing and other product categories in the company's stores and on its web site. The upscale brands include:...

Web services expanded; shoppers respond.(TARGET)
May 9, 2005... MINNEAPOLIS -- Target Corp.'s web site, www.target.com, is an important and growing part of its overall business. "The greater breadth and depth of target.com's assortment allows us to quickly identify emerging trends on our web site and...

Post-merger Kmart remains a mystery.(KMART)
May 9, 2005... TROY, Mich. -- A new chapter in Kmart's storied history began in March when Kmart Holding Corp. and Sears, Roebuck and Co. merged to become the nation's third-largest retailer. The deal combines two former giants of retailing. Through 1990...

New exec team for new corporate structure.(KMART)
May 9, 2005... TROY, Mich. -- The past year has seen big changes in Kmart's management team. Topping the list was the appointment in October of Aylwin Lewis as president and chief executive officer. Lewis came to Kmart from Yum Brands Inc., which...

Sears essentials format of choice.(KMART)(Brief Article)
May 9, 2005... HOFFMAN ESTATES, Ill. -- Kmart's future may look very much like Sears Essentials. The new format, making its debut this spring in 25 former discount stores, is meant to combine the best features of a Kmart store and a Sears store into one...

ShopKo finds growth hard to come by.(SHOPKO)
May 9, 2005... GREEN BAY, Wis. -- ShopKo Stores Inc. continued to make measured progress in a number of areas during fiscal 2004, but sales growth remained elusive for the regional discounter. In a search for that growth, the chain that was founded by...

Pamida to bolster Rx in effort to build sales.(retailer's management strategy)
May 9, 2005... OMAHA -- ShopKo's Pamida Inc. division, which was acquired in 1999, is a small-town retailer, geared to providing a broad range of hard line and soft line merchandise at value prices to residents of rural America. The stores are typically...

Health Care Heritage gets play.(SHOPKO)
May 9, 2005... GREEN BAY, Wis. -- The year 2005 began with ShopKo returning to its roots in retail health care. In January the regional discount chain opened three freestanding drug stores under the ShopKo Express Rx banner. Two of the three outlets...

Meijer bets on new footprint.(MEIJER)
May 9, 2005... GRAND RAPIDS, Mich. -- Last year supercenter pioneer Meijer Inc. toned down the nostalgia and instead celebrated its 70th anniversary by reinventing itself for the future. The family-owned regional chain got its start with a single grocery...

Zellers hypes mix, merchandising.(ZELLERS)
May 9, 2005... BRAMPTON, Ontario -- Zellers Inc., the discount retailing arm of Hudson's Bay Co., has been undergoing myriad changes, most notably in the merchandising area, in an accelerated attempt to bolster its bottom line. For example, the...

Costco's performance continues to impress.(COSTCO)
May 9, 2005... ISSAQUAH, Wash. -- Costco Wholesale Corp. remains the premier warehouse club operator in the United States and a favorite of retail analysts as well. In its last full fiscal year, which ended August 29, 2004, Costco recorded double-digit...

Home outlets show signs of promise.(Costco Companies Inc.'s Costco Home stores)(Company Profile)
May 9, 2005... TEMPE, Ariz. -- Last October saw the debut here of Costco's second Costco Home outlet, expanding the warehouse club operator's exploration of the home furnishings market. The store incorporates some interesting modifications and changes from...

Merchants find steady stream of hot new products.(COSTCO)
May 9, 2005... ISSAQUAH, Wash. -- At the heart of Costco's success is its merchandising prowess. The chain's ability to surprise and delight its shoppers has made it the standard setter that its rivals strive to match, albeit with different strategies. ...

Fred's says it's back on course.(FRED'S)
May 9, 2005... MEMPHIS -- Like many mass market retailers, Fred's Inc. faced a challenging environment in 2004. "Throughout much of fiscal 2004 we witnessed slower overall sales and a shift in sales mix to lower-margin products," says Michael Hayes, the...

BJ's looks to the mainstream.(BJ'S)
May 9, 2005... NATICK, Mass. -- BJ's Wholesale Club Inc.'s unique approach to the warehouse club business, focusing on consumers rather than business owners, appears to be working. For the full year ended January 29, 2005, BJ's sales increased by 10.3%...

Supers slug it out on all fronts.(SUPERMARKET CHAINS)
May 9, 2005... NEW YORK -- The traditional supermarket format appears to be in decline, a recent Food Marketing Institute report suggests. "Increasingly, conventional supermarkets are finding it hard to compete in a world of low-price megamarkets and a...

Smaller stores target niches.(SUPERMARKET CHAINS)
May 9, 2005... NEW YORK -- Supermarkets are getting smaller, and chains are opening fewer of them. Those are some of the trends highlighted in a Food Marketing Institute report, "Facts About Store Development 2004." The report attributes the trend...

Kroger sees way to meet challenges.(KROGER)
May 9, 2005... CINCINNATI -- Kroger Co. continues to be challenged in several areas, but most notably on the labor front. For example, the company indicates that the work disputes in West Virginia and southern California--the site of the longest...

Changes strengthen management team.(KROGER)(Ralphs Grocery Co.)
May 9, 2005... CINCINNATI -- Kroger Co. has significantly strengthened its leadership teams with several executive appointments within the parent organization as well as in its divisions and in one of its units--Ralphs Grocery Co. The most notable change...

Albertsons covers all the bases.(Albertson's Inc.)
May 9, 2005... BOISE, Idaho -- While financial results for fiscal 2004 were disappointing for Albertsons Inc., the past year has nonetheless seen several notable achievements by the nation's No. 2 supermarket operator. Once the operator of a single...

Acquisition produces aftereffects.(ALBERTSONS)
May 9, 2005... BOISE, Idaho -- Like its major competitors, Albertsons has been forced to respond to a rapidly shifting competitive environment as well as complex changes in consumer behavior and demographics. What is perhaps too easy to overlook is the...

New tech brings big progress.(Albertson's Inc.)(Brief Article)
May 9, 2005... BOISE, Idaho -- Among the many changes that Albertsons has carried out in the past year, technology upgrades have had a major role. In fact, capital investments in fiscal 2004 included no fewer than 200 technology projects. For example,...

Safeway works to reinvent business.(SAFEWAY)(Company Profile)
May 9, 2005... PLEASANTON, Calif. -- It has been a full year since the labor dispute that battered southern California supermarket chains came to an end, but its effects continue to be felt at some companies. Safeway Inc. is one of them. "There were some...

Top-level management weathers the storm.(SAFEWAY)
May 9, 2005... PLEASANTON, Calif. -- Safeway has faced its share of troubles over the past several years, including an investor uprising led by five major public employee pension funds seeking to oust Safeway's chief executive officer and some directors last...

Ahold gets behind core markets.(AHOLD USA)(Company Profile)
May 9, 2005... ZAANDAM, the Netherlands -- Having traveled part of the way down its "road to recovery," Ahold NV is now looking ahead to the prospect of future growth. Last fall, speaking at an investors conference in Philadelphia, Ahold chief executive...

Staples to debut at Stop & Shop, Giant.(AHOLD USA)(Brief Article)
May 9, 2005... QUINCY, Mass. -- Ahold's Stop & Shop Co. and Giant Food LLC chains will try a new form of synergy in July, partnering with Staples Inc. to add branded office supply departments to their stores. "This is a great way for us to bring added...

Divestitures optimize portfolio.(AHOLD USA)(BI-LO Holdings LLC)
May 9, 2005... GREENVILLE, S.C. -- As part of its effort to optimize its store portfolio and reduce debt, Ahold NV has sold its BI-LO and Bruno's supermarket chains. Ahold sold BI-LO Holdings LLC, the parent company of BI-LO LLC and Bruno's Supermarkets...

Tops remains a work in progress.(AHOLD USA)(Brief Article)
May 9, 2005... BUFFALO, N.Y. -- The weakest link in Ahold's portfolio of chains in the United States is Tops Markets LLC. Ahold president and chief executive officer Anders Moberg noted last fall that the company is working to reengineer Tops, which...

American operations make Delhaize.(DELHAIZE AMERICA)(Company Profile)
May 9, 2005... SALISBURY, N.C. -- Last year saw continued progress on the part of Delhaize America Inc., the United States arm of Brussels-based Delhaize Group. The U.S. organization, which counted 1,523 stores in 16 Eastern states at the start of 2005,...

Hannaford tried, true performer.(DELHAIZE AMERICA)(Brief Article)
May 9, 2005... SCARBOROUGH, Maine -- Although Delhaize America's other divisions have gained more headlines in recent months, its Hannaford Bros. chain continues to be a solid performer that has provided a model for the entire group. With 142 stores...

Bloom format is cutting-edge super.(DELHAIZE AMERICA)
May 9, 2005... SALISBURY, N.C. -- The Bloom format introduced last year by Food Lion is a prime example of the concept leadership espoused by the management of Food Lion and its parent, Delhaize Group. In 2002 the chain put together a cross-functional...

Winn-Dixie struggles to reinvent itself.(WINN-DIXIE)
May 9, 2005... JACKSONVILLE, Fla. -- After years of underinvestment in its stores and ignoring changes in competition and the consumer, Winn-Dixie Stores Inc. plunged into a deepening crisis in 2004 that culminated in the company filing for bankruptcy in...

Financial results tell woeful story.(WINN-DIXIE)(Company Profile)
May 9, 2005... JACKSONVILLE, Fla. -- Winn-Dixie's bankruptcy filing was triggered by financial results for the second quarter and first half of fiscal 2005 that alarmed the financial community and, ultimately, the company's suppliers. For the 16 weeks...

A new exec team gets to work.(WINN-DIXIE)
May 9, 2005... JACKSONVILLE, Fla. -- While the appointment of Peter Lynch to replace Frank Lazaran as president and chief executive officer of Winn-Dixie was the biggest personnel story of a tumultuous year for the grocer, there have been other significant...

'Thanks for shopping with Publix'.(PUBLIX)
May 9, 2005... LAKELAND, Fla. -- Publix Super Markets Inc. has experienced an eventful past 12 months. In March the grocer celebrated a major milestone--its founding by George Jenkins 75 years ago in Winter Haven, Fla. Consequently, on March 3 festive...

Supervalu fosters new ideas.(SUPERVALU)
May 9, 2005... MINNEAPOLIS -- With a 135-year history of grocery retail and supply chain experience behind it, Supervalu Inc. credits its success to a tradition of fresh thinking as to how it approaches an ever-changing market, industry-specific expertise and...

A&P could go in any direction.(A&P)(Great Atlantic and Pacific Tea Company Inc.)
May 9, 2005... MONTVALE, N.J. -- A&P has been fulfilling the needs of North American grocery shoppers for almost a century and a half, but the last few years have been tumultuous ones for the venerable chain. Nonetheless, the chain's top financial...

H.E. Butt celebrates 100 years.(H.E. BUTT)
May 9, 2005... SAN ANTONIO -- H.E. Butt Grocery Co. (H.E.B.) is celebrating its 100th anniversary this year by returning to its roots while simultaneously looking ahead. The privately held supermarket chain kicked off its centennial celebration with the...

Loblaws 'builds for the future'.(LOBLAWS)
May 9, 2005... TORONTO -- This is a year of reorganization and preparation for Loblaw Cos. The company is opening a new headquarters in Brampton, a town on the northwestern edge of Toronto. The new offices will allow the retailer to centralize the buying...

Pathmark gets a shot in the arm.(PATHMARK)
May 9, 2005... CARTERET, N.J. -- When Pathmark Stores Inc. announced its fiscal 2003 results in April 2004 the company looked like it was facing a bright future. Net earnings had advanced a more than respectable 24.1% to $16.5 million. That was a notable...

A blockbuster year for CVS, Jean Coutu.(DRUG CHAINS)
May 9, 2005... NEW YORK -- While several important developments have taken place recently in the chain drug industry, the biggest attention grabber in 2004 was the demise of Eckerd Corp.--50 years after it was founded. Together with more recent...

Chains hunker down to deal with threat of mail-order Rx.(DRUG CHAINS)
May 9, 2005... NEW YORK -- The drug store industry is being increasingly confronted with a major threat to its top and bottom lines--mandatory mail-order prescription drug programs. These programs, generally imposed by pharmacy benefits management...

Walgreens is on its way to 7,000 stores.(WALGREENS)(Company Profile)
May 9, 2005... DEERFIELD, Ill. -- Walgreen Co. is nothing short of a retailing juggernaut. The company that operates drug stores in more markets than anyone else continues to spread its reach across the continent, ringing up record sales and earnings as...

Choice should be left to the patient in Rx.(WALGREENS)
May 9, 2005... DEERFIELD, Ill. -- While on the surface it would look as if Walgreen Co.'s very public stance that it will not join any pharmacy network that requires patients to get 90-day prescriptions through the mail means it opposes mail-order pharmacy,...

CVS closes books on a spectacular year.(CVS)(markets)(Company Profile)
May 9, 2005... WOONSOCKET, R.I. -- The year 2004 was one of which the people at CVS Corp. are justifiably proud. Acquiring the former Eckerd Corp. stores in Florida and Texas along with a significant PBM has been a major plus for the retailer, says Tom...

Eckerd purchase does more than add stores.(CVS)(Eckerd Health Services)
May 9, 2005... WOONSOCKET, R.I. -- When CVS Corp. acquired Eckerd Corp. stores last year it also acquired Eckerd Health Services (EHS), a $1 billion mail-order and pharmacy benefits management (PBM) business. Adding EHS immediately doubled the size of...

An instant presence in new markets.(CVS)(market share)(Brief Article)
May 9, 2005... WOONSOCKET, R.I. -- CVS Corp.'s purchase of 1,268 Eckerd Corp. stores last year gave it significant clout in areas of the United States where it had previously not been a major force. In particular, the acquisition bolstered CVS' strength...

Rx is at heart of new Rite Aid.(RITE AID)(markets)
May 9, 2005... CAMP HILL, Pa. -- Rite Aid Corp. has put the past behind it. The retailer's recovery, say company executives, is complete. The Rite Aid of 2005 has all but erased memories of the chain of five years ago that had to reduce its earnings...

New format gets rave reviews.(RITE AID)
May 9, 2005... SELLERSBURG, Ind. -- Rite Aid's core customers have embraced the chain's new prototype, which was unveiled here in November. The format has won over the retailer's target female shoppers in part with a color scheme that Rite Aid vice...

NextGen allows pharmacists more quality time.(RITE AID)(pharmacy computer system)(Brief Article)
May 9, 2005... CAMP HILL, Pa. -- The promise of Rite Aid's pharmacies is that "with us it's personal." To fulfill that promise, the chain has to offer a differentiating experience to every patient on every pharmacy visit, says vice president of pharmacy...

Coutu takes giant step forward.(JEAN COUTU)
May 9, 2005... LONGUEUIL, Quebec -- The Jean Coutu Group, already one of North America's 10-largest drug chains, jumped to the top ranks in the United States as well last year with the acquisition of more than 1,500 Eckerd stores from J.C. Penney Co. The...

Eckerd integration under control.(JEAN COUTU)(Jean Coutu Group Inc.)
May 9, 2005... WARWICK, R.I. -- The Jean Coutu Group's integration of its operations in the United States is proceeding on schedule, company officials say. Michel Coutu, president and chief executive officer of the Jean Coutu Group USA Inc., described...