Tuesday, January 18, 2011

Why free samples are part of Costco's business model

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January 18, 2011News for the retail industry

  Industry Watch 
 
  • Target to enter Canada with a few twists
    Target plans to open in Canada in 2013, but industry watchers say the discount chain's stores to the north may not be exact duplicates of their U.S. counterparts. Prices are likely to be a bit higher because of distribution costs and exchange rates, and while familiar brands such as Merona apparel and Archer Farms foods are likely to be sold, the smaller Canadian stores won't have room to carry all of Target's product lines. Financial Post (Canada) (1/17) LinkedInFacebookTwitterEmail this Story
 
  • Jewel-Osco adds "nutrition iQ" shelf tags
    Jewel-Osco stores introduced its "nutrition iQ" food-labeling program, with color-coded shelf tags showing the nutritional value of more than 2,500 foods. Orange indicates an excellent or good source of fiber, pink is for 100% juice and yellow is for an excellent or good source of protein. TribLocal.com (Chicago) (1/17) LinkedInFacebookTwitterEmail this Story
  • Why free samples are part of Costco's business model
    Sampling free food is part of the shopping experience for many Costco members, a perk the company says is worth the price whether or not shoppers wind up buying the products. Samples are a key part of the chain's business model, and analysts say it pays off in higher sales over the long term. "There's just a high correlation with successfully run supermarkets and sampling," said analyst David Livingston. American Public Media/Marketplace (1/17) LinkedInFacebookTwitterEmail this Story
 
  • Other News
Same DemandTec results, now serving softlines. Recently announced DemandTec Lifecycle Pricing for Softlines delivers the most advanced science available for deep intelligence on volatile merchandise, forecasting, and shopper-centricity for apparel, footwear, and other retailers selling short lifecycle merchandise. Learn more now.
  Retail Trends 
 
  • Can deal sites sustain growth?
    Group coupon giants Groupon and LivingSocial have inspired a host of much smaller and sometimes local imitators. These sites also share traits of other kinds of targeted online and mobile advertising that are growing rapidly and may swamp the field, undermining the originators of the digital daily-deal service. The Washington Post (1/16) LinkedInFacebookTwitterEmail this Story
  • Startup has designs on aspirational shoppers
    Awards-show season in Hollywood has kicked 12-week-old startup Send the Trend into high gear, with staffers avidly watching the red carpet to see the latest accessories adorning celebrities. The team, which includes upscale designer Christian Siriano, chooses among those most likely to be envied by aspirational shoppers, then sells replicas of the pieces for no more than $29.95. Portfolio.com (1/17) LinkedInFacebookTwitterEmail this Story
New cloud management techniques enable IBM to provide a simplified "anywhere, anytime" self-service approach for the delivery and consumption of IT services. Read this paper to see how using a cloud-based approach for your IT can free you to reap immediate benefits of a specific technology instead of having to spend time, resources, and money focusing on how to implement it.
  Retail Technology 
 
  • French retailer tests RFID-enabled discount system
    E.Leclerc, a retail chain in France, is testing a system that allows shoppers to redeem coupons using stickers that attach to their mobile phones. The system, a form of near-field communication, redeems discounts when users tap the stickers against radio-frequency identification codes on shelves, then tap the stickers against readers at checkout. RFID Journal (1/17) LinkedInFacebookTwitterEmail this Story
 
  • Interactive window-shopping system in the works
    Developers in Germany built a prototype of an interactive system to allow window shoppers to manipulate images to get a better look at the products they're thinking of buying. The setup uses a 3D camera system and image-processing software to create the new shopping experience, which would let shoppers complete purchases without entering stores. ScienceDaily (1/17) LinkedInFacebookTwitterEmail this Story
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  Main Street 
  • Get the maximum bang for your bonus bucks
    With the economy improving, it's more important than ever to keep your best people on board, and that means tough decisions about compensation. Most experts recommend giving a bonus rather than a raise, and Paul Schaye offers a formula for distributing those funds: The top 15% of performers get 80% of the available compensation, the bottom 15% get nothing and the remaining 70% share 20% of the total incentive pool. Crain's New York Business (1/16) LinkedInFacebookTwitterEmail this Story
  • Job interviews: Look for passion, not just skills
    Most questions during a job interview are structured to get at a candidate's skill set. But Ray Williams argues that skills can be exhibited only on the job; what interviews should attempt to uncover is passion. Ask questions such as, "What do you do in your spare time?," he suggests. "Both the content of the response, and the emotion or passion that they show in giving the response will be a key to finding a quality hire," Williams writes. Financial Post (Canada) (1/17) LinkedInFacebookTwitterEmail this Story
The Buzz(CORPORATE ANNOUNCEMENTS)

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Interested in learning more about advertising in NRF SmartBrief? Contact Susan W. Kim at (202) 407-7877 or skim@smartbrief.com.  

  Featured Content 
 

  NRF News 
  • The retail executive's guide to the 112th Congress
    As the 112th Congress gavels into action, don't miss out on the best resource on public policy for retail executives -- NRF's Government and Legal Affairs Update. Covering a range of issues like tax policy, labor and health regulations, consumer privacy and online marketing, this report provides background, recent congressional actions and the veritable impact on retail of the many issues before Congress. Learn more. LinkedInFacebookTwitterEmail this Story

 
  • Smaller marketing budget? Focus on relevancy
    How relevant are your marketing communications? Studies reveal that up to 63% of consumers have or will consider abandoning a brand altogether because of irrelevant communications. In a recent white paper made available at NRF's Retail Reference Center, Connie Hill of VeraCentra shares how relevancy, executed well, "can prevent customer defection, improve customer satisfaction and increase customer spending while reducing marketing costs." Read more. LinkedInFacebookTwitterEmail this Story
Learn more about NRF ->Join NRF  |  Govt Relations  |  NRF Events  |  STORES  |  NRF Foundation

  Chain Restaurant News 
  • Other News
  Career Track 

Vice President - Divisional Merchandise ManagerThe Vitamin ShoppeNorth Bergen, NJ
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Merchandise Data AnalystMarine Corps Exchanges/Headquarters Marine CorpsQuantico, VA
Planogram SpecialistExchange (Army Air Force Exchange Serivce)Dallas, TX
Operational Initiatives ManagerRoss Stores, Inc.Pleasanton, CA
Store Operations Manager - dd's DISCOUNTSRoss Stores, Inc.Pleasanton, CA
Manager of New Store Openings & OperationsRoss Stores, Inc.Pleasanton, CA
Vice President of Supply Chain & ReplenishmentTotal Wine & MorePotomac, MD
Senior Project ManagerPetSmartPhoenix, AZ
Divisional Merchandising Manager - Men's SportswearStein MartJacksonville, Florida, FL
Divisional Merchandising Manager - Home Decor & GiftsStein MartJacksonville, FL
Chief Merchant/General Merchandise ManagerMoosejaw MountaineeringMadison Heights, MI
Senior Merchandise Planner/DistributorNavy Exchange Service CommandVirginia Beach, VA
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Merchandise PlannerNavy Exchange Service Command (NEXCOM)Virginia Beach, VA
Associate Buyer - International & Offshore Markets (Bilingual Spanish required)OfficeMaxNaperville, IL
Lead Analyst, Paid SearchTarget CorporationMinneapolis, MN
Senior Manager, Site PlanningTarget CorporationMinneapolis, MN

  SmartQuote 
A man will be imprisoned in a room with a door that's unlocked and opens inwards; as long as it does not occur to him to pull rather than push."
--Ludwig Wittgenstein,
Austrian philosopher


 
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