Home Depot Catches up on Internet Sales

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As of this month, when shoppers find their local store on its website, they see new information including whether the store provides key cutting or tool rental. They also see the store manager’s name, as well as the in-store layout. Item searches yield how many items are in stock at the nearest stores. “We know we were behind folks like Amazon.com,” said Hal Lawton, Home Depot’s HD +0.31% president of online. “We’ve put a stake in the ground. We want to catch up and then get ahead. We certainly are not going to lose share.”

Like other retailers, the world’s largest home-improvement retailer says it’s expanding in the online channel aggressively and targeting it as a major growth opportunity. Home Depot has made its biggest e-commerce investment over the past two years since it started Internet sales in 2001. An important part of the company’s $370 million in planned annual IT spending over the next three to four years will be online, including mobile, the company said, declining to elaborate.

(As reported in MarketWatch.com)

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Home Depot’s Second Quarter – The Tale of the Tape

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The Home Depot’s Craig Menear, executive VP merchandising, said the company’s strong 4.3% comp-store sales performance in the second quarter was boosted by outdoor projects, storm-related repairs and steady strength in core departments. Performance was aided by Home Depot’s improved supply chain and merchandising tools, he said.

“At the end of the first quarter, we chose to carry more inventory to keep our stores fully stocked with seasonal product,” Menear told analysts during the company’s earnings-report conference call. “This was the right decision. Improvements in the weather combined with our merchandising tools and enhanced transportation network allowed us to end the first half with inventory turns flat to last year.”

(As reported in Home Channel News)

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OSH Goes back to Basics

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It’s back to basics for the hardware store that for decades has been known as OSH, as the San Jose-based retailer tries to distinguish itself from big-box stores. That means an increased emphasis on customer service, hardware and home decor, said Tom Carey, a senior vice president for Orchard Supply Hardware.

“Hardware is a tough business, and in this competitive environment, you must differentiate yourself,” said Patricia Edwards, chief investment officer and analyst with Trutina Financial. “The better alternative for Orchard is to play more to the individual consumer.”

That especially makes sense, given the wide reach of Home Depot and Lowe’s.

(As reported by MercuryNews.com)

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Service Outweighs Price

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A customer satisfaction survey by J.D. Powers and Associates found that sales, delivery and installation service are slightly more important than facilities, product assortment and price when it comes to buying major appliances.

Combined, the importance of the sales staff, delivery and installation service factors slightly exceed the combined importance of the store facility, merchandise and price factors (51% versus 49%, respectively). Courtesy of the sales staff is the most important aspect within the sales staff and service factor, while courtesy of delivery personnel is the most important element of delivery service.… Read the article

(As reported by Home Channel News)

Eight Major Retailers Taking a Hit

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It’s no secret that U.S. retail sales collapsed in 2008 and 2009 because of the recession. But several of the largest retailers consistently performed poorly between 2005 and 2010 for reasons that go beyond the recession. 24/7 Wall St. looked at which retailers lost most in total sales during that period and found that their troubles have a few common elements.… Read the article

(As reported by MSNBC.com)

BJ’s Buyout a Done Deal

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After months of speculation, BJ’s Wholesale Club has entered a definitive agreement to be acquired by Leonard Green & Partners and CVC Capital Partners for an all-cash transaction valued at about $2.8 billion.

BJ’s board of directors unanimously approved the merger agreement — which is subject to approval of BJ’s shareholders, customary closing conditions and regulatory approvals — and recommends that all BJ’s shareholders vote in favor of the transaction.

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(as reported by RetailingToday.com)

Wholesale Club War: BJ’s vs. Costco

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BJ’s Wholesale Club delivered healthy sales this spring. In April, the wholesale club retailer registered an 8.5% sales increase, and in May the company’s sales increased $7.4% from the same period the previous year. But the company has been seen as facing stiff competition from Costco, and now the company will accept an offer from two leading investment firms to buy the chain with the ambition of enhanced competition against Costco in the future.

With 190 wholesale club retail stores in 15 states, Westborough, Massachusetts-based BJ’s (NYSE: BJ) has performed well across all categories this year, improving across all categories, from beauty care products to coffee and small appliances. But analysts have been neutral on BJ’s stock because of stiff competition that’s coming on fast from Costco (NASDAQ: COST).

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(as reported by IB Times)

Discounting Lifts June Sales

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Most retailers surprised Wall Street with better-than-expected monthly sales results in June, as bargains led shoppers to spend more. June is the second most important month on a retailers’ sales calendar behind December. It is June that stores typically clear out summer merchandise to make room for fall goods.

Analysts polled by Thomson Reuters expected a 4.9% rise in June same-store sales, compared with a prior-year increase of 3.1%. Of those retailers who have reported, most are on pace to beat expectations. However, margins will likely show a squeeze as leading retailers were forced to offer deals to prompt spending, a trend that isn’t likely to abate as back-to-school season approaches.

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(As reported in RetailingToday.com)

Best Buy to downsize Stores

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When it comes to retailing, big is not so beautiful anymore. Weak sales, online competition and changing consumer habits have big-box chains looking to downsize. Best Buy Co. is the latest merchant shedding space, in an initiative that stands out in both size and scope. The giant retailer, with 1,300 stores nationwide, is launching plans to wall off parts of its cavernous stores and sublease the space to smaller retailers, such as grocers, beauty supply stores, home furnishing outlets and others. Best Buy’s new stores will aim to be about 36,000 square feet — down from the current average of 45,000 square feet.

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Sears spins off Orchard Supply

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Sears Holdings Corp. said Thursday that it plans to spin off its Orchard Supply Hardware Stores Corp. business as a separate, publicly traded company.

The department store retailer said in a filing with the Securities and Exchange Commission on Thursday that it believes the chain, which runs 89 stores in California, will generate more value for shareholders as a standalone company. Sears shareholders will own 80 percent of Orchard, and the remaining 20 percent will be held by Ares Management LLC. ESL Investments, the Edward Lampert-run fund that also is Sears’ majority shareholder, will be Orchard’s biggest owner.

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