Austin Grocery Retailers: The Ban of Disposable Bags

March 21, 2012

Although the Austin City Council passed one of the broadest bag bans in the nation early Friday , a few details remain to be ironed out.

Among them is what the penalties will be for refusing to comply with the law, which will prohibit retailers from offering single-use paper and plastic bags at all retail checkout counters starting in March 2013 . Penalties and details about who will enforce the ban will be worked out over the next few months, said Jennifer Herber , a spokeswoman for Austin Resource Recovery , the city's trash and recycling department.

Only retailers, not customers, will face penalties, she said.

The council also asked staffers to explore creating an "emergency option" that would allow shoppers who forget their reusable bags to pay a fee for disposable bags so that they aren't forced to buy more reusable bags. It's not clear exactly how that would work or whether it would simply become a loophole for customers to continue getting disposable bags.

Before and after the ban takes effect, the city plans to do a $2 million education campaign to alert shoppers to the change and remind them to bring reusable bags.

The council decided not to enact a fee on disposable bags before the ban takes effect. An interim fee had been discussed as a way to help shoppers and retailers begin to change their habits and prepare for a ban.

Austin is the first big Texas city to pass a bag ban. More than two dozen U.S. cities have bag laws, most of them prohibiting plastic bags and imposing a fee on paper.

"This is about Austin reclaiming its position as the national leader in environmental protection," said Rick Cofer , vice chairman of the city's Zero Waste Advisory Commission, who has pushed for a ban for five years. "This ordinance is forward-looking. It may have taken a few years, but we got it right."

The City Council came close to enacting a ban a few years ago but held off when a few big retailers agreed to try to voluntarily reduce the plastic bags they offer. Council members have said that program wasn't effective enough, and they asked city staffers last summer to begin writing up a ban.

Friday's vote came at about 2 a.m. , after a daylong council meeting. It was unanimous, even though a few council members recently had expressed reservations about the details of the ban, including the idea of prohibiting paper bags as well as plastic.

Austin retailers will still be able to offer reusable bags, defined as those made of cloth or durable materials, or thicker paper or plastic bags that have handles. Retailers will decide whether to charge for those bags, though most probably will because such bags tend to be costlier to make.

Exempt from the ban will be single-use bags for bulk foods, meat, fish, produce, newspaper delivery, dry cleaning and restaurant carryout foods, and bags that charities and nonprofits use to distribute food and other items.

During months of debate, members of the plastics industry argued that thin plastic bags can be easily recycled and reused, such as for lining trash cans and picking up pet waste. But city leaders said the bags often end up as litter or landfill trash and cause environmental harm. Activists urged the City Council to ban single-use paper bags as well, saying they take more energy to make and transport.

The Texas Retailers Association was the most vocal opponent of a ban, saying it would discourage retailers from continuing robust programs they've built to accept plastic bags and plastic packaging for recycling, meaning more of those goods could end up in landfills.

In recent weeks, ban opponents have urged the city to pursue a program that will allow Austin residents to put plastic bags in their curbside recycling carts. Currently, the city accepts paper but not plastic bags through its curbside collection and recycling program because plastic bags can damage recycling machinery.

Austin Resource Recovery Director Bob Gedert said adding plastic bags to the curbside program would be costly and difficult to carry out. He also said Austin should focus on reducing the number of plastic bags in circulation, not simply on continuing to make and recycle them.

About a dozen people stuck around late Thursday and early Friday to offer the council their thoughts on the ban; most were in favor of it.

"It's time for you folks to make history and take a huge step in cleaning up your community," said Robin Schneider , executive director of the nonprofit Texas Campaign for the Environment .

Chris Bailey told the council a ban could have unintended consequences.

"People act like the solution is to just create a crime out of an everyday activity, and all of a sudden, it will go away," he said. "You're trying to modify behavior by creating a punishment for it, and this has not been shown to work. ... I think common sense is being neglected here."

scoppola@statesman.com; 912-2939

Basics of the ban
Austin retailers will no longer be able to offer thin, so-called single-use paper and plastic bags starting in March 2013 .Retailers will offer only reusable bags made of cloth or durable materials, or thicker paper or plastic bags that have handles.Exemptions will include disposable bags used for bulk foods, meat, fish, produce, dry cleaning, newspaper delivery and restaurant carryout foods.

For more information, visit: http://www.statesman.com/news/local/austin-bag-ban-means-penalties-for-retailers-that-2213031.html?cxtype=rss_news&viewAsSinglePage=true

The Value of Michael Kors: $666 Million Man

March 13, 2012

Let's be clear: Michael Kors is on a pretty good run, but it's not that he hasn't had a few disappointments. He, for instance, is not a teacher in Ontario.

So far, they are the real winners in Kors' December IPO. The Ontario Teachers Pension Plan Board was the only named Kors investor that didn't sell stock in the public offering.

And so instead of getting $20 a share -- as Kors himself did when he sold off 5.8 million shares, raising $117 million -- the pension plan's 13.2 million shares are now worth $42.08 each.

Kors, sadly, sold at what now seems to be a low price.

He might have another chance to get a better valuation since he, along with chief executive officer John Idol and backers Silas Chou and Lawrence Stroll, also has a stake in the Michael Kors operations in China, Hong Kong, Macau and Taiwan, which were not part of the IPO.

And he has steady employment.

The designer's contract gives him a job for life, an annual salary of $2.5 million and creative control over products bearing his name, assuming he can stay on the right side of "commercially reasonable." (The Wall Street types apparently don't approve of art for art's sake.) Kors is also eligible for a bonus and certain "perquisites" including life insurance, health club membership, car and driver for business purposes and tax services.

It's not the deal scored by Tommy Hilfiger -- who received 1.5 percent of U.S. revenues over $48 million when his company was public -- but it seems to be enough for Kors to keep the heat on.

If he does have to dip into the piggybank, he still owns 15.8 million shares of the company that bears his name, or 8.3 percent of those outstanding. On paper, that's worth $666.8 million, so he could always buy half a million of his $1,295 shearling racing jackets to keep warm.

That's something, at least.

For more information, visit: http://www.wwd.com/fashion-blogs/michael_kors_the_666_million_m-12-02

Truth: Discounts Hurt Retailers

March 7, 2012

Retailers like Children's Place Retail Stores Inc (PLCE.O) and Brown Shoe Co Inc (BWS.N) are struggling to protect their margins as they continue to discount heavily to drive sales, resulting in weak quarterly profit reports and bleak forecasts.

Apparel and footwear retailers have been trying to cut back on discounts that were used to lure bargain-hungry shoppers in the downturn, but warmer-than-expected weather forced some of them to reduce prices to move winter merchandise.

Children's Place shares were trading down 4 percent on the Nasdaq, while Brown Shoe shares plunged as much as 14 percent, making it one of the biggest losers on the New York Stock Exchange.

Brown Shoe saw boot sales fall 5.7 percent during the quarter, while Children's Place slashed prices of winter apparel like sweaters and cardigans to push sales.

Children's Place, which competes with privately held Gymboree Corp, expects gross margins to decline in the first quarter on higher souring costs for its spring and summer lines.

The kids clothing retailer, which struggled with inventory and merchandise issues in the past, has been heavily discounting at the end of each season to get rid of piled up products.

Meanwhile, footwear retailers like Brown Shoe are also facing sharp declines in sales of toning shoes, a once popular item that was supposed to exercise leg muscles by making the wearer work harder while walking. Brown Shoe said sales of toning shoes fell more than 59 percent in the fourth quarter.

On Wednesday, Brown Shoe projected full-year adjusted earnings of 78 cents to 92 cents a share, while analysts were expecting 78 cents a share.

Children's Place forecast first-quarter profit of $1.03 a share to $1.08 a share, while analysts were expecting a profit of $1.14 a share, according to Thomson Reuters I/B/E/S.

However, department store operator Bon-Ton Stores Inc (BONT.O) bucked the trend with a strong full-year profit, despite reporting weak quarterly results on discounting of winter products, sending its shares soaring 33 percent.

For more information, visit: http://www.reuters.com/article/2012/03/07/us-retailers-idUSTRE8261F220120307

Truth: Discounts Hurt Retailers

March 7, 2012

Retailers like Children's Place Retail Stores Inc (PLCE.O) and Brown Shoe Co Inc (BWS.N) are struggling to protect their margins as they continue to discount heavily to drive sales, resulting in weak quarterly profit reports and bleak forecasts.

Apparel and footwear retailers have been trying to cut back on discounts that were used to lure bargain-hungry shoppers in the downturn, but warmer-than-expected weather forced some of them to reduce prices to move winter merchandise.

Children's Place shares were trading down 4 percent on the Nasdaq, while Brown Shoe shares plunged as much as 14 percent, making it one of the biggest losers on the New York Stock Exchange.

Brown Shoe saw boot sales fall 5.7 percent during the quarter, while Children's Place slashed prices of winter apparel like sweaters and cardigans to push sales.

Children's Place, which competes with privately held Gymboree Corp, expects gross margins to decline in the first quarter on higher souring costs for its spring and summer lines.

The kids clothing retailer, which struggled with inventory and merchandise issues in the past, has been heavily discounting at the end of each season to get rid of piled up products.

Meanwhile, footwear retailers like Brown Shoe are also facing sharp declines in sales of toning shoes, a once popular item that was supposed to exercise leg muscles by making the wearer work harder while walking. Brown Shoe said sales of toning shoes fell more than 59 percent in the fourth quarter.

On Wednesday, Brown Shoe projected full-year adjusted earnings of 78 cents to 92 cents a share, while analysts were expecting 78 cents a share.

Children's Place forecast first-quarter profit of $1.03 a share to $1.08 a share, while analysts were expecting a profit of $1.14 a share, according to Thomson Reuters I/B/E/S.

However, department store operator Bon-Ton Stores Inc (BONT.O) bucked the trend with a strong full-year profit, despite reporting weak quarterly results on discounting of winter products, sending its shares soaring 33 percent.

For more information, visit: http://www.reuters.com/article/2012/03/07/us-retailers-idUSTRE8261F220120307

Meijers Giving Back

February 27, 2012

Donation will provide more than 34,000 meals to feed the hungry in southeast Michigan

Meijer has donated $10,000 to two southeast Michigan food banks as part of the retailer's nationwide online holiday contest, "Get Gifted," that also awarded one lucky winner – a Macomb County, Mich. resident – with $10,000 in Meijer gift cards.

Meijer representatives and grand prize winner Vicki Spokes presented the $10,000 donation to Gleaners Community Food Bank and Forgotten Harvest last week. Both food banks are members of Feeding America®, the nation's leading domestic hunger-relief charity with a network of 200 food banks nationwide.

"While we are always pleased when our customers engage with our brand online, it's especially satisfying when the end result provides a benefit to such a worthy cause," said Kevin Brown, chief marketing officer of the Grand Rapids, Mich.-based retailer. "Food giving continues to be a focus at Meijer, and we appreciate our customers joining us in this effort."

Each year, Meijer donates more than 6 percent of its net profits to charity.

The donation will help make a difference in the community, said John Dziurgot, vice president of operations for Gleaners Community Food Bank.

"Gleaners is grateful to Meijer for its leadership in addressing hunger," Dziurgot said. "With one in five households in southeast Michigan facing hunger, this generous donation will help Gleaners ensure that our neighbors are not forced to choose between buying food and paying the bills. We appreciate Meijer's efforts to bring attention to hunger in our community and to provide two excellent organizations with much-needed resources to address the problem."

The "Get Gifted" contest launched nationwide in November to give customers a feel for the hot brands of the season by offering playersa chance to explore three rooms of a Meijer home through 360-degree videos. It was the first time a big box retailer utilized the interactive 360-degree video technology with a contest.

The contest was quite popular, drawing nearly 3.3 million featured merchandise clicks and more than 255,000 sweeps entrants. The contest launched on Nov. 10 and concluded on Dec. 18.

More than 100 prizes – three each day – were awarded throughout the contest period, and included gifts such as a Nintendo 3DS, a 32" Vizio television, and a Barbie Dream Townhouse. The Grand Prize winner received $10,000 in Meijer gift cards.

Even though Vicki Spokes, 55, entered the contest daily, she said she never dreamed she'd win the grand prize.

"I was just hoping I would get lucky and win a $50 gift card," Spokes said. "I never in a million years thought I would win $10,000 in giftcards. I was shocked and surprised and in awe. My grandchildren will reap the rewards."

Aside from the contest's unique digital focus, Spokes said she was pleased to know that it also included a philanthropic component.

The $10,000 donation to the Feeding America member food banks – Gleaners Community Food Bank and Forgotten Harvest – equals more than 34,000 meals for the hungry, according to Feeding America.

"Every dollar we can generate is critical to Forgotten Harvest's battle against hunger," said Russ Russell, Forgotten Harvest chief development officer. "This award will provide over 16,000 meals to those in need of food. We are deeply appreciative of their commitment to helping us drive hunger from the community."

Russell added that Meijer supports Forgotten Harvest daily as a food donor. In 2011, Meijer donated more than 500,000 pounds of food that would otherwise have gone to waste, as well as a semi-tractor to help expand its mobile pantry program.

To view the food bank donation presentation video, please visit http://www.youtube.com/watch?v=KYQeJau3QNY.

To review the "Get Gifted" contest, please visit www.meijer.com/getgifted.

About Feeding America: Feeding America provides low-income individuals and families with the fuel to survive and even thrive. As the nation's leading domestic hunger-relief charity, our network members supply food to more than 37 million Americans each year, including 14 million children and 3 million seniors. Serving the entire United States, more than 200 member food banks support 61,000 agencies that address hunger in all of its forms. For more information on how you can fight hunger in your community and across the country, visit http://www.feedingamerica.org. Find us on Facebook at www.facebook.com/FeedingAmerica or follow our news on Twitter at www.twitter.com/FeedingAmerica. 

About Meijer: Meijer is a Grand Rapids, Mich.-based retailer that operates 197 supercenters and grocery stores throughout Michigan, Ohio, Indiana, Illinois and Kentucky. As a pioneer of the "one-stop shopping" concept, Meijer stores have evolved through the years to include expanded fresh produce and meat departments, as well as pharmacies, comprehensive electronics departments, garden centers and apparel offerings. For more information on Meijer and the ability to shop for more, please visit www.meijer.com. Follow Meijer on Twitter @twitter.com/meijer or become a fan at www.facebook.com/meijer.

For more information, please visit: http://www.prnewswire.com/news-releases/meijer-donates-10000-to-gleaners-community-food-bank-and-forgotten-harvest-through-retailers-get-gifted-online-holiday-contest-140564133.html

Meijers Giving Back

February 27, 2012

Donation will provide more than 34,000 meals to feed the hungry in southeast Michigan

  Meijer has donated $10,000 to two southeast Michigan food banks as part of the retailer's nationwide online holiday contest, "Get Gifted," that also awarded one lucky winner – a Macomb County, Mich. resident – with $10,000 in Meijer gift cards.

Meijer representatives and grand prize winner Vicki Spokes presented the $10,000 donation to Gleaners Community Food Bank and Forgotten Harvest last week. Both food banks are members of Feeding America®, the nation's leading domestic hunger-relief charity with a network of 200 food banks nationwide.

"While we are always pleased when our customers engage with our brand online, it's especially satisfying when the end result provides a benefit to such a worthy cause," said Kevin Brown, chief marketing officer of the Grand Rapids, Mich.-based retailer. "Food giving continues to be a focus at Meijer, and we appreciate our customers joining us in this effort."

Each year, Meijer donates more than 6 percent of its net profits to charity.

The donation will help make a difference in the community, said John Dziurgot, vice president of operations for Gleaners Community Food Bank.

"Gleaners is grateful to Meijer for its leadership in addressing hunger," Dziurgot said. "With one in five households in southeast Michigan facing hunger, this generous donation will help Gleaners ensure that our neighbors are not forced to choose between buying food and paying the bills. We appreciate Meijer's efforts to bring attention to hunger in our community and to provide two excellent organizations with much-needed resources to address the problem."

The "Get Gifted" contest launched nationwide in November to give customers a feel for the hot brands of the season by offering players a chance to explore three rooms of a Meijer home through 360-degree videos. It was the first time a big box retailer utilized the interactive 360-degree video technology with a contest.

The contest was quite popular, drawing nearly 3.3 million featured merchandise clicks and more than 255,000 sweeps entrants. The contest launched on Nov. 10 and concluded on Dec. 18.

More than 100 prizes – three each day – were awarded throughout the contest period, and included gifts such as a Nintendo 3DS, a 32" Vizio television, and a Barbie Dream Townhouse. The Grand Prize winner received $10,000 in Meijer gift cards.

Even though Vicki Spokes, 55, entered the contest daily, she said she never dreamed she'd win the grand prize.

"I was just hoping I would get lucky and win a $50 gift card," Spokes said. "I never in a million years thought I would win $10,000 in gift cards. I was shocked and surprised and in awe. My grandchildren will reap the rewards."

Aside from the contest's unique digital focus, Spokes said she was pleased to know that it also included a philanthropic component.

The $10,000 donation to the Feeding America member food banks – Gleaners Community Food Bank and Forgotten Harvest – equals more than 34,000 meals for the hungry, according to Feeding America.

"Every dollar we can generate is critical to Forgotten Harvest's battle against hunger," said Russ Russell, Forgotten Harvest chief development officer. "This award will provide over 16,000 meals to those in need of food. We are deeply appreciative of their commitment to helping us drive hunger from the community."

Russell added that Meijer supports Forgotten Harvest daily as a food donor. In 2011, Meijer donated more than 500,000 pounds of food that would otherwise have gone to waste, as well as a semi-tractor to help expand its mobile pantry program.

To view the food bank donation presentation video, please visit http://www.youtube.com/watch?v=KYQeJau3QNY.

To review the "Get Gifted" contest, please visit www.meijer.com/getgifted.

About Feeding America: Feeding America provides low-income individuals and families with the fuel to survive and even thrive. As the nation's leading domestic hunger-relief charity, our network members supply food to more than 37 million Americans each year, including 14 million children and 3 million seniors. Serving the entire United States, more than 200 member food banks support 61,000 agencies that address hunger in all of its forms. For more information on how you can fight hunger in your community and across the country, visit http://www.feedingamerica.org. Find us on Facebook at www.facebook.com/FeedingAmerica or follow our news on Twitter at www.twitter.com/FeedingAmerica. 

About Meijer: Meijer is a Grand Rapids, Mich.-based retailer that operates 197 supercenters and grocery stores throughout Michigan, Ohio, Indiana, Illinois and Kentucky. As a pioneer of the "one-stop shopping" concept, Meijer stores have evolved through the years to include expanded fresh produce and meat departments, as well as pharmacies, comprehensive electronics departments, garden centers and apparel offerings. For more information on Meijer and the ability to shop for more, please visit www.meijer.com. Follow Meijer on Twitter @twitter.com/meijer or become a fan at www.facebook.com/meijer.

For more information, please visit: http://www.prnewswire.com/news-releases/meijer-donates-10000-to-gleaners-community-food-bank-and-forgotten-harvest-through-retailers-get-gifted-online-holiday-contest-140564133.html

"It's a warm bath of slow adjustment..."

February 16, 2012

"Wholesalers balance inventory with sales"

February 15, 2012

Crocs Creating Stepping Stones For Their Comeback

February 15, 2012

Crocs Inc announced its expansion into licensing, providing opportunities for the Crocs brand to extend beyond footwear. The company has signed licensing agreements with key global and regional manufacturers for products ranging from apparel to sunglasses and other accessories.

“Licensing presents an opportunity to leverage one of our most valuable assets – the global power of the Crocs brand - by associating it with best-in-class products that go beyond footwear,” said Mike DeBell, Vice President of Global Sales. “More than 200 million pairs of Crocs shoes have been sold, in more than 90 countries around the world. That’s powerful testimony to the connection forged with consumers by the Crocs brand. Through strong international and regional licensing partners, we plan to extend the power of our brand and make new consumer connections.”

The first non-footwear Crocs-branded products included a line of adult and children’s socks from Sock and Accessories Brands, which launched in the holiday 2011 season. These are available in North America through wholesale and retail channels. Crocs-branded socks, produced by Intersocks, will also be available throughout European markets.

Crocs also entered an agreement with Accessory Exchange, which is producing a variety of Crocs-branded accessories for men, women and children, in several global regions. Accessory Exchange Crocs-branded products include hats, bags, backpacks, socks and gloves that are available now at Crocs retail stores and Crocs.com.

In April 2012, the Crocs brand will extend to children’s apparel through an agreement with the A Group. The children’s apparel will be available in 46 countries around the globe and distributed through retail and wholesale channels. Crocs-branded sunglasses and sunglass accessories also will launch in May 2012. Eye King, LLC is producing sunglasses for adults and youth for retail and wholesale distribution in the U.S. and Canada.

Through a partnership with ICER Brands, Crocs Professional Footwear Division will build on the loyal following of medical professionals with the introduction of Crocs-branded scrubs. This new medical gear is available now through specialty stores and online.

Finally, Paramount, a sports licensee, recently kicked off Collegiate and MLB licensed footwear for the brand, which is available now.

“As we continue to explore these and other new collaborations, I am confident our license partners will help us grow and spread our brand promise of delivering products with profound comfort, fun and innovation,” continued DeBell.

A world leader in innovative casual footwear for men, women and children, Crocs Inc, offers several distinct shoe collections with more than 250 styles to suit every lifestyle.

For more information, visit: http://www.fibre2fashion.com/news/company-news/crocs-inc/newsdetails.aspx?news_id=108076

JCPenney--predicted to be one of the most interesting retailers in 2012

February 13, 2012

J.C. Penney just blew up its brand — in a good way — thanks to a new management team with some radical new ideas. J.C. Penney is about to be the most interesting retail story of the year.

Late last year, J.C. Penney began building a dream team with Ron Johnson — the man who launched Apple‘s retail stores — as its new CEO. Johnson cut his retail teeth at Target and from there he poached Michael Francis to serve as J.C. Penney’s new president. Francis is largely responsible for Target’s branding and marketing efforts.

And this week, Johnson took a sledgehammer to the J.C. Penney way of doing business. It’s the most exciting thing I’ve seen in retail since Apple opened stores, again with Johson at the the helm.

J.C. Penney — now being referred to as jcpenney — is implementing a new pricing strategy, slashing prices up to 40% with to keep them that way year round. Not EDLP, this fair pricing strategy is designed to keep prices low on the basics shoppers look for frequently and introduce new merchandise on a routine schedule.

“We want customers to shop on their terms, not ours,” said Johnson. “By setting our store monthly and maintaining our best prices for an entire month, we feel confident that customers will love shopping when it is convenient for them, rather than when it is expedient for us.”

It’s a shocking move for any retailer, let alone a department store where hi-low pricing and promotions have long been the norm.

There will also be an entirely new layout, with brands merchandised in shops within the store rather than endless racks and runs of shelves. There aren’t many new ways to display merchandise and any effort to re-invent the in-store experience will be welcome with shoppers and provide a reason to buy in stores, rather than looking for bargains online.

“The department store is the number one opportunity in retail today. We are going to rethink every aspect of our business, boldly pursue change, and create long-term shareholder value, as we become America’s favorite store,” Johnson said. “Every initiative we pursue will be guided by our core value to treat customers as we would like to be treated – fair and square.”

The new logo is meant to evoke the American Flag, a move likely to resonate with today’s shoppers and set it apart from the rest of the retail pack.

Most retailers make tentative steps toward change. They take a year to develop a new store format, reconfigure a layout or commission a logo. Then they test it, refine it and test it again. It can take years to roll out changes to a large store base and often before that happens, the plan changes again.

But Johnson is anything but typical. Changes begin on Feb. 1 and  in August jcpenney will begin updating all stores with new merchandise and presentations, adding two to three shops each month through 2015 in what management is calling a complete transformation.

It’s refreshing, daring and probably exactly what the retailer needs. It’s probably what a lot of retailers need but few have the leadership and support to do it.

For more information, visit: http://www.forbes.com/sites/lauraheller/2012/01/26/why-jcpenney-will-be-the-most-interesting-retailer-of-2012/