OPERATIONS

Eastern retailers prepare for Hurricane Sandy

BY Katherine Boccaccio

New York — As Hurricane Sandy bears down on the northeastern U.S., retailers are doing more than stocking up on emergency supplies for their customers – they are making preparations to protect themselves.

According to a Friday report by MarketWatch, Sears Holdings Corp., for example, has a 45-person crisis command team in place to stay in close communication with its personnel housed at Sears and Kmart stores in the at-risk areas.

Sears told MarketWatch that it also has trailers on standby for a store that currently has some roof construction underway in order to relocate higher-priced merchandise to a nearby distribution center.

Wal-Mart Stores spokeswoman Dianna Gee said that about 800 of the company’s stores and Sam’s Clubs could be affected by the storm, and that the retailer would follow local authorities’ evacuation orders.

Wal-Mart, like Sears, has an emergency operation center and also has a full-time meteorologist on staff. The retailer’s emergency distribution centers around the U.S. are stocked with bottled water, canned foods and other emergency supplies.

Wal-Mart also has “truckloads of merchandise strategically located” outside of the projected areas to respond to any potential increase in demand after the storm passes, Gee told MarketWatch.

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OPERATIONS

Wal-Mart completes deal with Chinese e-commerce company

BY Staff Writer

Bentonville, Ark. — Wal-Mart Stores Inc. announced the completion of its increased investment in Yihaodian, a fast-growing Chinese e-commerce company. The chain now holds an approximate 51% stake in the Yihaodian holding company.

"This investment demonstrates we are committed to the development of e-commerce in China and bringing the best possible shopping experience to Chinese customers," said Neil Ashe, president and CEO of Wal-Mart’s Global e-commerce division in a statement.

Yihaodian sells more than 180,000 products ranging from groceries to electronics to clothing. It has 24 million registered users, and offers same-day delivery to customers in select markets.

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Apple, Amazon lead loyalty list

BY Katherine Boccaccio

New York — Results of the 16th annual Brand Keys Loyalty Leaders survey released Friday revealed that Apple, Amazon, Samsung, YouTube and Twitter have the most loyal followings.

“In 16 years aggregating brand loyalty leaders, this is the first time we’ve seen such a seismic shift in loyalty leadership in terms of new categories and brands making their appearance in the Top 100,” said Robert Passikoff, Brand Keys founder and president. “Brand loyalty has always been primarily driven by emotional engagement, and the rankings this year make it crystal clear that connection is everything.”

With 598 brands in 83 categories for consumers to rate, there’s strong competition for the Top 100 spots. “This year certain categories rose to the top because of the high levels of engagement that consumers show, and what they deliver versus consumers’ expectations,” said Passikoff.

According to Brand Keys, 21 new brands appeared on the 2012 list, most of those facilitating social outreach. Apple (tablets) and Amazon (tablets) took the top two spots among product categories, followed by Apple’s smartphone, Amazon’s on-line retail, Apple’s computer and Samsung’s tablet. Twitter ranked 10th for its social networks.

The brands that showed the greatest loyalty gains on the list this year were:

Sephora (+60 places)
Starbucks (+55)
Ford (+47)
Samsung smartphones (+30)
Costco (+24)

Brands that saw the greatest erosion of loyalty and engagement included:

Netflix (-69 places)
Bing (-60)
Blackberry (-40)
B.J.’s Price Club (-31)
Flickr (-29)

“Some brands suffered losses because of the economy as consumers shifted to less expensive brands that still held some degree of meaning,” said Passikoff.

Twenty-three percent of the Top 100 brands account for consumer outreach and engagement via cellular and social networks. And, whereas last year beauty and personal care brands accounted for nearly a third of the Top 100, in 2012 they represent only 18% of the Top 100 brands.

Retail brands were down nearly a third – looking at bricks and clicks providers – on this year’s list. “We believe that the inability for retailers to provide meaningful differentiation – beyond low-lower-lowest pricing strategies – has seriously eroded loyalty levels in the retail category,” said Passikoff.

Amazon.com is still high on the list (No. 4), but emotional bonds have weakened across the retail category. Zappos (No. 6 last year) moved down the list to No. 19 this year; the next ranked retailer is Target, at No. 36.

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