CPG Holiday Forecast: Humbug sales, with only 2.9% growth
New Canaan, Conn. — Continuing a two-year slide in retail spending momentum, American shoppers will generate only a lackluster 2.9% rise in holiday sales, according to Customer Growth Partners’ 13th Annual Holiday Forecast. The CPG report paints a scenario that is decidedly less cheery than some of the other holiday forecasts that have been released to date.
“Holiday 2013 will mark the first time that retailers see an actual decline in store productivity per square foot since the recession, by about 1%,” said Craig Johnson, president, Customer Growth Partners. “And because of the steep promotional pace this year, earnings will be weak, leading to a decline in “TOP” ratios, the true operating earnings generated per square foot, an even worse sign. The Grinch may not steal Christmas, but he may spoil it for a lot of retailers.”
The key drivers behind the retail weakness, according to the forecast, are lagging income growth, and the declining share of the population with full-time jobs.
“Consumers — at least those with full-time jobs — will still do their Christmas shopping this year, but at a smaller and slower pace than the last few years,” Johnson said. “For retailers, particularly those dependent on solid discretionary spending, however, this will be a ‘Humbug Holiday’ — the worst since the recession — and more so for stores who placed their holiday orders earlier in the year, when sales were still healthy.”
For more on the CPG holiday forecast, click here.
Walmart announces three U.S. manufacturing projects
Washington, D.C. — Walmart U.S. president and CEO Bill Simon and Secretary of Commerce Penny Pritzker announced at the SelectUSA 2013 Investment Summit on Thursday that three suppliers have made new domestic manufacturing commitments that will create 385 jobs. The move is part of the retailer’s previously announced pledge to buy an additional $50 billion in U.S.-made products over the next decade.
Walmart said that Elan-Polo, Louis Hornick & Company and EveryWare Global will produce footwear, curtains and glassware, respectively.
“Today’s announcement is a great example of the progress that’s being made, and it highlights opportunities that exist for manufacturers to invest in the USA by re-shoring or expanding their manufacturing in America,” said Simon. “Companies, government officials and industry leaders are working together to increase manufacturing, and these efforts are helping more Americans get into good-paying jobs and more businesses reinvest in the U.S. economy.”
"For retailers like Walmart, who they choose to buy from makes a difference,” said Pritzker. “Since Walmart announced its commitment earlier this year to buy an additional $50 billion in U.S.-made products over the next 10 years, manufacturers have committed to investments in the U.S. that will create more than 1,600 jobs.”
Elan-Polo, a global footwear and 35-year Walmart supplier, will start production of injection-molded footwear in March 2014 at a factory in Hazelhurst, Ga., as part of a joint venture with McPherson Manufacturing. Once at full capacity, this new facility will create 250 jobs and produce 20,000 pairs of shoes per day. Previously, the company manufactured the shoes overseas.
EveryWare Global, which manufactures bakeware, beverageware, tabletop and household glassware, will produce Mainstays Canning Jars for Walmart in the supplier’s Monaca, Pa., facility. The company is investing $1.8 million to expand factory capacity and establish a new product line made in the U.S. Founded in 1905, Anchor Hocking, an EveryWare Global brand, has been supplying products to Walmart for over 25 years and has 1,811 employees in the United States.
Louis Hornick & Company, a leading manufacturer and importer of window coverings and home textiles, will invest $2.5 million to establish a new manufacturing facility in Allendale County, S.C. The investment is expected to create 125 new jobs over the next three years. The company has been supplying Walmart for 40 years.
Toms deploys Oracle Commerce platform
Redwood Shores, Calif. – Toms — the company that gives a pair of its shoes or provides eye care to a person in need for every corresponding purchase — has deployed the Oracle Commerce platform to support its rapid business growth and international expansion.
“Toms is changing daily to meet new challenges,” said Hilda Fontana, VP global Web development, Toms. “Oracle Commerce immediately enables our team to better serve a variety of international markets. We know Oracle has the flexibility and scalability to meet the demands of our growing business.”
Toms is using Oracle Commerce as part of a strategic initiative to deliver its “One for One “charitable message to new markets and support global demand for an expanding product line that is constantly refreshed with new colors and styles.
The Oracle platform helps Toms personalize the customer experience by delivering relevant content and recommendations to customers, providing a faster, easier checkout and a more visual, content-rich shopping experience with integrated ratings and reviews.
It also enables Toms’ business users to have better control over the customer experience by allowing them to target promotions, personalize content, customize search results and recommendations, and update product information across multiple sites on the fly.
Deloitte, a Diamond level member in Oracle PartnerNetwork, helped Toms to leverage the full functionality of the Oracle Commerce solution while launching its first ecommerce site for Toms Netherlands in just seven months. Throughout the implementation, Deloitte worked side-by-side with Toms’ staff in a “train the trainer” approach that prepared the company to begin immediately moving its U.K., U.S., and Canada sites to the Oracle platform.
“Toms is rapidly evolving and growing their digital presence globally and the Oracle Commerce solution helps provide Toms with the ability to offer leading commerce capabilities on a global, flexible, scalable platform,” said Belinda McConnell, principal, Deloitte Consulting LLP.