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THE |
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MONITOR |
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Keeping
Our Finger On The Pulse Of The Retail Industry |
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Volume VII,
Issue 9 |
September 2009 | |
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Hart Systems, LLC.
is the rental
solution for inventory scanning.
We Make Self-Inventory Simple!
Contact us to find out how we may help you improve your
physical inventory process.
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Mixed bag for retailers in August |
Same-store sales dropped an average of
2.9% at the 30 retailers tracked by Thomson Reuters. This decline
was better than the 3.8% decline analysts had forecast. Only 46%
of the retailers beat analysts' expectations.
The retail sales decline continued, but slowed in August as the
back-to-school shopping season neared its close. Results still fell
short of anything that can be described as a consumer recovery.
The later start to the back-to school shopping period and the shift
of several state tax-free shopping periods from July to August
helped retailers. This was partially offset by the shift in the
Labor Day holiday.
Discount chains posted better-than-expected sales results in August
as consumers looked to save money in the back-to-school shopping
season. Target Corp., TJX Cos., Kohl’s and Costco Wholesale Corp.
were among the chains whose results beat analysts’ estimates.
"It's really still a discounter's market and an off-price
seller's market," said Ken Perkins, president of research firm
Retail Metrics.
“Holiday sales are definitely going to be soft, but it's not going
to be the bombshell that was dropped on retailers last season,"
Perkins said.
Experts pointed out that the sales view is unclear by the shift
of the U.S. Labor Day holiday -- which falls on the first Monday
in September -- to Sept. 7 in 2009 from Sept. 1 in 2008. That means
seven more shopping days before Labor Day, including the entire
holiday weekend; will be in the September sales reporting month this
year. Last year, the Saturday of Labor Day weekend fell in August. |
KUTGW* Means......(Texting Shortcuts) |
In an article written by Stephanie
Raposo of WSJ.com, she points out the need to be in tune with the
ever-increasing texting shortcuts that are used everyday –
socially and professionally.
As text-messaging shorthand becomes increasingly widespread in
emails, text messages and Tweets, people are scrambling to decode
it. A working knowledge of text-speak is becoming necessary in
many offices, and at home, for parents to keep up with their
children. “If a CEO does not appear to be tech-savvy, people may
start to wonder, ‘Is the company not plugged into today’s
technologies also?’, says Stephanie Grayson, a corporate speech and
media trainer based in New York.
One reason for the surge in texting abbreviations-more than 2,000
and counting, according to NetLingo, is the boom in social-media
sites like Twitter, where messages are limited to 140 characters.
Based on the length limitation, users have developed an alphabet
soup of shorthand abbreviations to save time, and their thumbs.
Taking time to learn the jargon may seem like a WOMBAT (“Waste of
money, brains and time”). But with over one trillion text messages
sent and received in the U.S. last year, according to CTIA-The
Wireless Association, an industry trade group, you run the risk of
feeling out of it if you don’t.
The new lingo has given rise to a number of resources that provide
English translation for terms like WRUD (“What are you doing”)-among
them independent Web sites like NetLingo.com and UrbanDictionary.com
and corporate ones like LG Mobile Phones’ DTXTR.com. Textapedia, a
pocket guide to texting terms released last year, is sold in over
4,000 stores nationwide. Both the AP Stylebook and Merriam-Webster
Dictionary recognized texting shorthand for the first time in their
2009 editions.A sampling of
some popular shorthand texting terms. |
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KUTGW* |
Keep up
the good work |
| UG2BK |
You got
to be kidding |
| NMP |
Not my
problem |
| PIR |
Parent
in room |
| GFTD |
Gone for
the day |
| FYEO |
For your
eyes only |
| BI5 |
Back in
five minutes |
| DEGT |
Don’t
even go there |
| BIL |
Boss is
listening |
| PAW |
Parents
are watching |
| 99 |
Parents
are no long watching |
| PCM |
Please
call me |
| IMS |
I am
sorry |
| HAND |
Have a
nice day |
| NRN |
No
response necessary |
| TOY |
Thinking
of you |
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So now that you're in the know......
HAND AND GBTW
From your friends at Hart |
How
to Spot Counterfeit Money |
It used to be that spotting a “good”
counterfeit bill was impossible for ordinary people. But for the
past ten years, the Bureau of Engraving and Printing has been making
bills that are easy to check.
The amount of counterfeit money in the US is low enough that most
people feel safe taking money with minimal checks for counterfeits.
Does it look and feel like money? Then it probably is. But have you
ever gotten a bill where something seemed off? Ever wished you
could quickly check to see if it was good? Philip Brewer of
Wisebread Forums has offered the following suggestions:
Step 1) Look and Feel
This is good enough most of the time. US bank notes are printed on
special paper that’s 75 percent cotton and 25 percent linen. The
linen makes it distinctive. There are also red and blue fibers
imbedded in the paper.
Step 2) Color-Shifting Ink
Bank notes bigger than the $5 bill use color-shifting ink to print
the number showing the denomination in the lower-right-hand corner.
Just look at the numbers head-on, and then from an angle. For
genuine notes the color will shift (copper-to-green or
green-to-black). You can confirm the color-shifting ink in a quick
glance. Going further will require that you hold the note up to the
light; it’s the next step if you want to be sure.
Step 3) Watermark
All bills bigger than a $2 now have a watermark; hold the bill up to
the light to see it. For the $10, $20, $50 and $100, the image
matches the portrait.
Step 4) Security Thread
All bills bigger than a $2 have a security thread running vertically
through the bill. Like the watermark, you hold the bill up to the
light to see it. The thread has text with the bill’s denomination
and an image that is unique.
In summary, if a bill:
• Looks and feels like a US bank note
• Has color-shifting ink
• Has a watermark that matches the portrait
• And has a security thread with text that matches the denomination
Then it’s almost certainly a genuine bill. |
Adapting to a More Profitable Business Model |
By Jeffrey B. Edelman, contributing
author
Director of Retail and Consumer Advisory Services,
RSM McGladrey, Inc
The retail markets, once driven by the “affluent” baby boomer, will
now need to focus on a more value-conscious consumer. Shopping
patterns are changing; retailers and vendors will need to adapt a
new business model. Management in those sectors is already taking
action -- reducing discretionary spending, slowing expansion,
curtailing payrolls, and tightening inventory controls.
The first step for retailers and vendors to develop their new game
plan is to engage themselves in an intense self-analysis in
order to determine the wants and needs of its target customer,
increase its value proposition with new and differentiated
merchandise, find a path to a more efficient sourcing and logistics
structure, strengthen its brand (whether national or owned), and
implement a multi-channel distribution network.
Inventory management is one of the important keys to managing the
distribution process. Simply put, inventory management is the
means to ensuring that the appropriate selection and quantity of
merchandise is in place to ensure a higher rate of sale at regular
price, and/or at the first markdown. The strategy of a
steadily-increasing initial markup, to offset the increasing
markdown rate, must be reversed so that the consumer perceives
greater value at the outset, as opposed to searching lower-priced
channels. This will help to preserve integrity of the brand, and at
the same time limit the amount of branded product distributed
through off-price outlets and discount formats.
The sourcing strength of large organizations is a significant
advantage, but their ability to push back on the manufacturer is
becoming more difficult due to deterioration of vendor financial
condition; therefore strategy of better collaboration must evolve to
provide the incentive of fresh, new and differentiated product. The
largest of the national retailers have become too commoditized
through their brand’s reliance on “safe” merchandise, with buying
decisions today tending towards the overly price sensitive.
Management’s mindset needs to gravitate towards the specialty store
model, focused on turnover and profits per square foot. This
again comes back to “Retailing 101” -- knowing your customer,
providing the appropriate level of service, and offering the right
product, at the right time, at the right price. Delivering on that
back-to-basics mindset should drive traffic, sales productivity and
profitability.
A more profitable business model needs to be developed. Increasing
focus on driving gross profit per square foot may allow retailers to
offset lower or slower growth in comparable store sales and the
resultant cost pressures. The strategy should evolve towards a
higher rate of sell-through and inventory turnover. There must be
new programs aimed at increasing efficiency as alongside coordinated
efforts towards individual store profiling, with
appropriately-adjusted size and product assortments.
Strategy has to shift back to the consumer, and truly
understanding their wants and needs. There has to be more
collaboration between retailers and vendors in managing the
merchandise assortment. More importantly, the key to higher returns
is higher gross profit per square foot. That mission can be driven
by turnover, rather than markdown allowances; realized by
“fashion-right” merchandise with less, rather than more, inventory;
and a better in-stock position, with reduced breadth and a
heightened focus.
About RSM McGladrey’s Retail and Consumer Advisory Services
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Helping businesses compete in the retail
and apparel/textiles industries has been an area of strength for RSM
McGladrey Inc. We have experience helping more than 8,000 companies
address the challenges of supply chain management, improve costs
through the implementation of lean practices and face increasing
global pressure.
RSM McGladrey Director of Retail and Consumer Advisory Services,
Jeffrey B. Edelman, former industry analyst, regularly shares his
views on industry issues. For more information, go to
http://www.rsmmcgladrey.com/ |
New
Canadian Occupational Health and Safety Regulations |
According to the Retail Council of
Canada, there will be revisions to the Occupational Health and
Safety regulations effective September 1, 2009 affecting the
provinces of Newfoundland and Labrador. The revised regulations,
under the Occupational Health and Safety Act, apply to all employers
in these provinces.
Hart Systems is a proud Member of the Retail Council of Canada and
if this applies to your company or divisions please click on the
link provided below for more detail information.
Province Introduces New OHS Regulations |
Movers & Shakers |
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People you know, who are on the go… |
This monthly installment to The Hart
Monitor includes executive moves within the retail industry as
reported in publications such as WWD, Hoover's, and various other
sources.
Shaw's Supermarkets:
Mike Witynski, former group VP of Brands for parent company
SUPERVALU, has become President of the Shaw's supermarket chain.
Former President Larry Wahlstrom has retired.
Stein Mart:
Former Kellwood executive Gregory Kleffner is now SVP finance
and CFO at discount department store retailer, Stein Mart. He
succeeds James Delfs, who has retired. Meanwhile, Robert
L. Mettler has been appointed to the Company's Board of
Directors. Mr. Mettler is the former Chairman/Chief Executive
Officer of Macy's West, a division of Macy's Inc.
Borders Group:
At book retailer, Borders Group, Larry Norton comes on as SVP
merchandising and distribution.
Harry & David Holdings:
Former Shaklee CFO Ed Dunlap has been given the titles of SVP
and CFO at gift basket retailer Harry & David Holdings.
Destination Maternity:
Leading maternity apparel retailer, Destination Maternity, has
announced that Melissa Payner-Gregor, the Chief Executive
Officer of Bluefly, Inc., has joined the Company's Board of
Directors.
The Warnaco Group:
David Cunningham has become President of its Calvin Klein
Jeans division. Mr. Cunningham is assuming the position
previously held by Janice Sullivan, who has left the company
to pursue other interests.
Kohl's:
President and CEO Kevin Mansell is now the retailer's
Chairman since Larry Montgomery stepped down Sept. 1.
Safeway:
Arun Sarin and Michael S. Shannon have been appointed
to the Company’s Board of Directors. The company’s board of
directors will expand from ten to 12 members with these new
appointments. Mr. Sarin was CEO of Vodafone Group Plc while
Mr. Shannon founded KSL Capital Partners LLC and its
predecessor, KSL Recreation Corporation.
Family Dollar Stores:
Dorlisa Flur is now EVP and Chief Merchandising Officer at
bargain retailer, Family Dollar Stores; replacing Robert George. |
Every issue of The Hart
Monitor will contain a 'TIPS' section of helpful information regarding
Inventory or Loss Prevention for retailers, including some of the
industry's "Best Practices." If you have any Inventory or LP
tips that you'd like to share, please
CLICK HERE
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Attend Upcoming Loss Prevention Conferences
Canada’s LP industry’s leading conference is right around the corner: |
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Retail Council of Canada 2009 Loss
Prevention Conference
September 15, 2009, International Centre –
Conference Centre, Mississauga, Ontario, Canada
From the
RCC Website:
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The Retail Loss Prevention Conference
serves loss prevention and retail operations professionals across
Canada and focuses on all loss prevention aspects within the
retail industry. This event brings in a full complement of
exhibitors who provide ideas and expertise on a variety of products
and services geared toward preventing retail losses. The
conference's aim is to provide strategic insight and best practices
of the industry, and strengthen relationships between the retail
industry, law enforcement, and governments
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Hart Systems will be participating in
this exciting event, and we'll be discussing loss prevention through
inventory control, and displaying
our rental system for self-scanned inventories - the most accurate
physical inventory system available today.
Please stop by our booth and introduce
yourself.
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We're also planning some fun and
interesting networking events. To find out more about these events,
or to make arrangements for a private demonstration at the
conference, or to simply learn more about our scanning solutions,
Click Here or call us at (800) 252-2818 |
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To learn more about
how we can help you achieve your physical inventory goals, please
call us at 800-252-2818, click here -Tell Me More- to send an
e-mail, or visit our website at
http://www.hartsystems.com/. |
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To view a previous
Hart Monitor, click June,
July,
August |
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© 2009 Hart Systems,
LLC.
Hart Quote !!! |
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“Ability is what you’re
capable of doing. Motivation determines what you do.
Attitude determines how well you do it.” |
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Lou Holtz (1937 – present)
author, television commentator, motivational speaker,
former NCAA football and NFL head coach |
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Hart Systems, LLC
60 Plant Ave
Hauppauge, NY 11788 |
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