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2012 Store Closing Roundup - U.S. Retail Closings List

Sears, Kmart, Blockbuster, Abercrombie & Fitch, The Gap, and Food Lion are all closing more than 100 stores each in 2012, and other major U.S. retail chains are closing stores in the U.S. too. See a complete 2012 Store Closings Roundup List...

More 2012 Store Closings & Openings
Retail Industry Spotlight10

Starbucks Busy With a Boycott, A Bomb Squad, a Theft Ring, a Court Ruling, a Major Promotion and a National Holiday in Half-a-Frappa May (SBUX)

Wednesday May 16, 2012

Already It's been a busy month of May for the Starbucks (SBUX) corporation. A boycott, a bomb squad, a theft ring, a court ruling, a new opening in a new country, a major promotion on a national holiday... It's difficult to imagine what kind of caffeine was consumed by the Starbucks executives who had this much notable news to deal with before the month of May is even halfway over. The most recent news for the Starbucks corporate team is...

  • A bomb squad used a robot to open a suspicious briefcase found outside a Murietta, CA Starbucks this month. Although no explosives were disarmed, an iPad and some music performance equipment were the unfortunate casualties of a misinterpreted sidewalk X-ray and the subsequent use of robotic force.

  • In another police-related matter, three men were arrested for a series of thefts in which they are accused of snatching laptops literally out of the hands of Starbucks customers as they were typing in Starbucks stores in the Phoenix area. (So an iPad can sit in a briefcase on the sidewalk outside of a Starbucks without being stolen, but the computer you're actively using at a Starbucks table is at risk?)

    Apparently the resale value of stolen laptops doesn't justify the wait time it takes to snatch computers that are left unattended during Starbucks restroom breaks. So I guess Starbucks laptop and notepad users will have to be prepared at all times to use those scalding hot Starbucks beverages to defend their property from audacious snatch-and-run thieves from now on.


  • The Starbucks legal team has also been on the defensive in the U.S. Court of Appeals, answering allegations of unfair labor practices from the National Labor Relations Board. Starbucks prevailed in this particular court proceeding, and it's now clear that Starbucks has the right to limit the number of pro-union buttons that can be worn by on-duty Starbucks employees to just one. It's not so clear how the price of the average Starbucks beverage will be affected in the future to cover the legal bills incurred to win the landmark button-control case, however.

  • In another government run-in, a busy New York Starbucks was shut down for two days by the Department of Consumer Affairs because some Starbucks employee somewhere failed to renew the permit that allowed a restaurant with outdoor seating to be operated at this particular location. Apparently moving the furniture off the sidewalk while the paperwork was being processed ;wasn't a viable option, so the best bureaucratic solution was to slap an "illegal operation" notice on the Starbucks front door and lose two days of tax revenue. Good call.

  • Most recently, the National Organization for Marriage (NOM) launched an international "Dump Starbucks" campaign in protest of the official Starbucks stance to support same-sex marriage. Although the non-profit "marriage protection" group claims to have gathered more than 38,000 signatures, there is no indication that any of these signatures came from previously loyal Starbucks customers. Time will tell whether the NOM campaign will have a negative impact on Starbucks (like the HRC boycott of Target and Best Buy) or whether it will backfire (like the One Million Moms campaign against jcpenney). Most likely it is political posturing that will have little measurable effect at all.

  • Also this month, the first Starbucks store was opened at the Helsinki airport in Finland. No drama, no controversy, no boycotts, no legal wranglings, just a new presence in a new country which will no longer be deprived of the Starbucks brand.

If you add all of this big business together, it doesn't even come close to the busy-ness that I observed in one Starbucks store during one two-hour period. For those who missed it, May 13th was Mother's Day AND it was the last day of Half-Price Frappuccino Happy Hour Week. I have to believe that some marketing manager consciously decided that it was a good idea for those two events to occur on the same day. I'm pretty certain that there was more than one Starbucks store employee who consciously thought otherwise.

But if sheer volume was the goal, the Mother's Day Half Price Frappuccino event was definitely a success. From 3:01 to 4:59:59 that day from where I was sitting in the corner of one medium-sized Starbucks location, there were no less than forty people waiting either to place their order or grab their frapp at any given time. There were almost as many green-aproned people stuffed behind the service counter - pumping, mixing, blending, cupping, and topping frappuccino ingredients in an infinite number of personalized combinations. The extra frapparistas brought in to handle the frappa-rush were heads-down and hyper-focused, despite the frappa-cup mountain assembling itself in their peripheral view.

At 4:26 PM, one of the super-slammed somewhat sticky Frapparista's called out "Thirty-four minutes!" A cheer erupted behind the counter, followed by appreciative laughter from the now nearly 100 customers crowded into the store in some stage of frappa-limbo.

Thirty-four minutes later, even though the frappromotion was officially over, the frappa-frantic activity continued until the last order was ordered, the last blender had blended, and the last half-priced drink was handed to Daphne, the last official frappromotion customer who looked to be less than three years old, and more interested in the straw than the frozen vanilla bean soymilk treat it was connected to.

In all that time with all those customers and all those completely customized concoctions, I only saw one customer return to the counter because their order was wrong. There might have been more mistakes, but only one customer was bothered enough to complain. My own Frappa Mother's Day drink was delivered sometime in that last 34 minutes and it was picture perfect (as you can see).

Starbucks Frappuccino Promotion Employee Engagement Corporate Crap

It was an impressive display of Starbucks training, efficiency, and teamwork. But the most impressive part didn't begin until about 5:25. That's when the first extra employee finished cleaning up, took off his apron and declared, "I'm out!" The spontaneous response from the dozen or so employees still busy behind the counter was "Thanks John!" and a smattering of additional comments like "You Rock!" "Great team!" "Thanks for showing up!" and "Sick, dude!"

One by one as the frappa-extras finished up and checked out, the scene repeated itself and each of the departing employees received their due share of spontaneous praise and appreciation. If it had been written in a book, or scripted in a Starbucks managers training manual, it couldn't have been a more classic demonstration of workplace engagement.

According to the unofficial report from the last frapparistas standing that day, that one location "rocked almost 600 frapps." This seems somewhat impossible if you do the math, but the important thing was that they declared it with pride and there were fist bumps all around in celebration of the accomplishment.

So, as with any multinational enterprise, there's a lot of corporate, government and legal crap to deal with behind the scenes. But if you look beyond the crap and see the happy frapp happening made possible by all the crap-handling, somehow it all seems worth it.

For Starbucks leaders, employees and customers alike, the important thing is not to let yourself get too distracted by either the crap or the frapp, lest you look down to find you've lost the computer on your lap.

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Today in Retail Business History Commercial Television Was Born - Today's Retail Technology Moving Quickly With or Without Retail Participation (BBY)

Monday April 30, 2012

Today is a significant date in both business and retail history because on April 30, 1939, U.S. commercial television debuted at the New York World's Fair, with the help of a signal transmission from the top of the Empire State Building.

The value of the birth of commercial television is inestimable to life, to business, and to the retail industry. Without television there wouldn't have been much of a category for Best Buy (BBY) to kill. In a U.S. retail industry without television, there would be no Super Bowl commercials, no effective way for Jim Cramer to rant and scream about retail stocks, and no way to give hourly retail employees a face and a voice by an Undercover Boss. Without commercial television the Home Shopping Network would be the Sears catalogue, and the quality of life would have been diminished without the pocket fishermen, ThighMasters, Bowflex machines, and George Foreman Grills peddled to the masses on infomercials.

Whenever retailers find themselves saying that something is a passing fad - like e-gift cards, mobile shopping apps, Facebook, and Pinterest, for example - it would be a good idea to remember that 1939 world's fair attendees probably thought the same thing about some crazy picture box that needed the world's tallest building to operate. Retailers can either embrace technology or get trampled by it. Either way, today's consumer technology marches quickly on, with or without retailer participation.

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May Day Retail Industry Earnings Preview - News Affecting Expectations for Avon, Big 5, Nutrisystem, Office Depot, Papa John's, PF Chang's & True Religion (AVP, BGFV, NTRI, ODP, PZZA, PFCB, TRLG, AMZN)

Monday April 30, 2012

A busy month of May U.S. retail industry earnings reports begins on Tuesday, as seven retailers will be kicking off the earnings season with May Day earnings releases. Here is some of the recent news about Avon, Big 5, Nutrisystem, Office Depot, Papa John's, PF Chang's and True Religion which has affected expectations about their earnings and the reliability of their stock performance in the short and long term.

Avon (AVP) reports its quarterly earnings on Tuesday, just days after another one of its executives resigned as part of an ongoing overseas bribery investigation. The Avon bribery allegedly took place in China in 2005. Although the Foreign Corrupt Practices Act prohibits the bribery of foreign officials in business dealings, Avon is not the only retail company to be caught doing it. Truth be told, if any U.S. company is bribing its way around any country, then there are probably many other U.S. companies that are doing the same.

Big 5 Sporting Goods (BGFV) has taken its place on the leading edge of technology alongside McDonald's and Dunkin' Donuts by offering paperless mobile coupons via the Yowza!! smartphone app. Big 5 is also expected to be on the leading edge of a profitable sporting goods industry when it reports its earnings on Tuesday.

Nutrisystem Inc. (NTRI) lost a CEO and gained a high-profile celebrity spokesperson all in the same month. While CEO Joe Redling is stepping out of the executive boardroom, superstar Janet Jackson is stepping into the spotlight as a Nutrisystem celebrity spokesperson. Weight Watchers revenue grew 15.6% after Jennifer Hudson became its celebrity success story, and even though hopes are high that Janet Jackson will have the same positive effect on Nutrisystem, there are no high hopes for Nutrisystems earnings report on Tuesday.

It wasn't a happy day for Office Depot (ODP) when Amazon (AMZN) announced that it would be actively seeking to woo away commercial customers to its AmazonSupply division, which offers more product choices, lower prices, free shipping on orders over $50, and a 365-day return policy. The effect of AmazonSupply competition won't be felt when Office Depot reports earnings on Tuesday, but investors can expect to start hearing about "increased competition" in the near future.

There's no question about the retail politcs of Papa John's (PZZA) founder John Schnatter after he hosted a fundraiser in his Louisville, Kentucky home for Republican candidate Mitt Romney. Coincidentally Romney retold the story of Papa John Schnatter to a group of college students days later, citing it as a great American business story. It is not expected that Romney will speak during Papa John's earnings teleconference on Tuesday, but it is expected that Schnatter will have plenty to say about the 50 pizza restaurants that were acquired in Denver and Minneapolis, which will be operated as company-owned outlets.

It's all about the menu for PF Chang's (PFCB). Its Home Menu frozen food line was named as the best new product for Kraft in 2011, it launched a lower-priced lunch menu in response to customer perception that its price points are too high, and it unveiled its plans to convert some of its Pei Wei Diners to Pei Wei Asian Markets which have a faster and cheaper menu. The positive PF Chang's news is expected to continue when the company reports its quarterly earnings on Tuesday.

The value of the True Religion (TRLG) brand of jeans is evidenced by the fact that they are the most stolen, most pirated, most returned, and most coveted jeans in the civilized jeans-wearing world right now. But there's doubt about how long that "now" can last for True Religion or any other high-end designer jeans company, so expectations about True Religion's earnings report on Tuesday are mixed.

Complete calendar of U.S. retail industry earnings reports scheduled for the first week of May >>

Complete 2012 Retail Earnings Calendar >>

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Special Toyota Plant Tour Shows Quality Commitment to Analysts, Toyota Service Team Proves Service Commitment to Customer (TM)

Monday April 30, 2012

Reporters and auto industry analysts were given unprecedented access to the Toyota (TM) Motomachi auto manufacturing plant in Toyota City, Japan this past weekend so that Toyota could showcase new production innovations, and re-establish its commitment to quality engineering. Adjustable assembly lines, laser-welding, and new paint technology were among the production innovations showcased during the Toyota tour, which Toyota allowed to be viewed, but not photographed by the special tour audience assembled.

From a manufacturing and public relations perspective, Toyota is still trying to recover after it tarnished its own brand reputation with faulty engineering that caused massive recalls starting in 2008. From a consumer perspective, my personal experience with Toyota's service team has proven to me repeatedly that its commitment to quality at the dealership level couldn't be higher.

My last encounter with Toyota service happened just last week when I pulled into a random dealership (not where I had purchased my car) without an appointment to ask a couple of clueless questions about the functioning of the gadgets inside my car. I thought they were stupid questions which would only need simple answers, but it turns out that they actually did require some tweaking from a member of the Toyota service team. Toyota Tony came to my rescue without question, hesitation, or any hint of impatience with my inability to figure out the workings of my vehicle's electronics for myself.

My unplanned service visit was in the middle of a day when I was hauling some things in my car, and the floor behind my driver's seat was full. Rather than make me unload or shift things around in order to adjust my seat so that his long legs could fit in, Toyota Tony squished himself into my much-too-close-for-the-average-driver seat, hanging halfway out of the car door the entire time he was adjusting my gadgets and giving me a thorough lesson in their operation.

Exceeding Customer Expectations with Toyota Service

What does commitment to quality look like? It looks like this service employee, who had a genuinely helpful attitude that 27 years of dealing with clueless Toyota customers hadn't tarnished. If you want to know the difference between meeting and exceeding customer expectations, now you have a visual representation of doing-whatever-it-takes-ness.

Despite its quality control challenges, Fortune Magazine still placed Toyota on the 2011 World's Most Admired Retailers list based on several aspects of its corporate leadership and operational excellence. My personal experiences tells me that Toyota still deserves this kind of global business recognition. And when the Toyota corporate mission statement says "We will meet our challenging goals by engaging the talent and passion of people, who believe there is always a better way," I don't doubt for a minute that they mean it. I believe what Toyota says and what Toyota does are the same thing because I've seen evidence of it hanging halfway out my car door.

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