OPERATIONS

EBay asks users to change passwords after breach

BY Dan Berthiaume

San Jose, Calif. – EBay Inc. is asking EBay users to change their passwords because of a cyberattack that compromised a database containing encrypted passwords and other non-financial data. After conducting extensive tests on its networks, the company said it has no evidence of the compromise resulting in unauthorized activity for EBay users, and no evidence of any unauthorized access to financial or credit card information, which is stored separately in encrypted formats.

Cyberattackers compromised a small number of employee log-in credentials, allowing unauthorized access to EBay’s corporate network, the company said. Working with law enforcement and leading security experts, EBay is investigating the matter and applying forensics tools and practices to protect customers.

The database, which was compromised between late February and early March 2014, included EBay customers’ name, encrypted password, email address, physical address, phone number and date of birth. However, EBay said the database did not contain financial information or other confidential personal information. The compromised employee log-in credentials were first detected about two weeks ago, and forensics subsequently identified the compromised EBay database.

The company said it has seen no indication of increased fraudulent account activity on EBay and has no evidence of unauthorized access or compromises to personal or financial information for PayPal users. PayPal data is stored separately on a secure network, and all PayPal financial information is encrypted.

Beginning May 21, EBay users will be notified via email, site communications and other marketing channels to change their password. In addition to asking users to change their EBay password, the company said it also is encouraging any eBay user who utilized the same password on other sites to change those passwords, as well.

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OPERATIONS

Amazon.com tops customer service ratings

BY Dan Berthiaume

Waban, Mass. – Amazon.com took second place overall and was the highest-ranked retailer in the 2014 Temkin Customer Service Ratings, which rates 233 companies across 19 industries with 10,000 U.S. consumers. Other retailers in the top 12 include Chick-fil-A, Publix, H-E-B, Starbucks, Costco, QVC, and Trader Joe’s.

Retailers with the most improvement over last year’s ratings are Apple Store, KFC, and Food Lion. Ace Hardware and Staples saw their Temkin Customer Service Ratings fall by 15 points or more between 2013 and 2014: No retailers placed at the bottom of the rankings.

"Customer service is a key moment of truth for many companies," said Bruce Temkin, managing partner of Temkin Group. "While some industries are notoriously bad, it’s great to see so many companies making improvements."

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MARKETING/SOCIAL MEDIA

Foot Locker introduces Eastbay Performance Zone at Champs Sports

BY Dan Berthiaume

New York – Foot Locker Inc. is introducing Eastbay Performance Zone at Champs Sports. The new shop-in-shop destination brings together direct-to-customer athletic apparel retailer Eastbay and Champs Sports.

Champs Sports is dedicating approximately 150 sq. ft. in select stores for the Eastbay Performance Zone, where customers can access the full range of Eastbay’s product. The Eastbay Performance Zone will empower customers at Champs Sports to view and sample the best seasonal product: rotating football, baseball, will feature a 4-ft. touch-screen display through which the most premium of Eastbay’s inventory can be shopped and purchased. Customers can also browse the entire product database available at Eastbay on a computer set up in the Zone.

"The Eastbay brand has a powerful connection with the elite high school athlete," said Dowe S. Tillema, president and CEO of Footlocker.com/Eastbay/CCS. "A very high percentage of professional athletes across many sports cite Eastbay as an important destination for the gear that enabled them to become the best they could be as they competed in high school and college."

The first four Champs Sports stores to feature the Eastbay Performance Zone will be located in St. Petersburg, Florida; Minneapolis; Milwaukee; and Sacramento, California, beginning in June. Both Eastbay and Champs Sports are part of Foot Locker Inc.

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