Genpack to provide IT help desk support to Dollar General
New York City — Genpact, a leader in business process and technology management, announced the transition services started in 2011 have been completed and IT Help Desk production support services are now fully operational as of Jan. 1, 2012 with Dollar General Corp.
Genpact’s services include providing technical and customer relations support to the more than 90,000 store employees at Dollar General’s 9,800 stores in North America. Genpact will also be providing services for Dollar General’s new stores as part of the retailer’s expansion into California and Massachusetts.
Under this agreement, Genpact is managing a range of services out of its center in Danville, Illinois for Dollar General. Genpact’s services for Dollar General include supporting point-of-sale terminals, hand-held terminals, printers, server registers, flatbed and handheld scanners, as well as both pin pad and keypad sets. Genpact is deploying tools for multi-channel delivery which increases the efficiency of overall IT help desk operations and customer relations calls. Dollar General Corp. is the nation’s largest small-box discount retailer.
“Dollar General is already benefitting from Genpact’s end-to-end thinking to all of these store operations support activities which will result in significant improvement in business outcomes, especially our ability to expand into new states,” said Bobby Aflatooni, VP of information technology, Dollar General Corp.
eBay brands itself a fashion advocate
NEW YORK — Counterfeit apparel and accessories has gotten so close to the original that even the most discerning customer often can’t tell the difference. And while it’s one thing to purchase an item known to be an imitation of a more expensive brand, many consumers are duped into buying what they believe is a high-quality, brand-named item. This is especially true when purchasing items online, where the customer has to rely on product descriptions and images to determine an items authenticity.
To help combat counterfeiters and restore consumer confidence, eBay is joining the Council of Fashion Designers of America (CFDA) to bring back the "You Can’t Fake Fashion" campaign. Following a sold-out summer edition, eBay and CFDA will introduce a new collection of original tote bags, with more than 75 designers each customizing a tote as one-of-a-kind. The collection will be previewed at Mercedes-Benz Fashion Week exhibit at Lincoln Center beginning Feb. 9.
The collection will include one-of-a-kind totes and limited-edition of standard totes in four styles that will be available on eBay starting March 20.
“We hope broader awareness will help fight counterfeits and the harm they cause, and eBay is proud to partner with the CFDA on the second iteration of this campaign,” said Alan Marks, eBay’s SVP global communications. “Counterfeits not only are illegal, they also damage brand owners, frustrate shoppers and undermine consumer confidence. eBay invests substantial resources to help provide millions of consumers a trusted, confident marketplace experience; this campaign is another example of our commitment to being a leading industry voice in the fight against counterfeits.”
CVS reports gains from ESI-Walgreens feud
WOONSOCKET, R.I. — CVS Caremark recorded strong financial results for the fourth quarter and full year, and made solid progress across the enterprise during 2011, which set the stage for future growth. However, it was the potential benefit that CVS Caremark is seeing from Walgreens’ battle with Express Scripts that was top of mind for many and was a key question that president and CEO Larry Merlo hit head on at the top of Wednesday morning’s conference call.
“The benefit was not material to our results in the fourth quarter, although it did start to ramp up late in the year. Now since the start of this year, we are seeing a significant number of transfers from Walgreens into CVS. In fact, the amount is a bit more than we anticipated,” Merlo told analysts, referring to Walgreens’ withdrawal from the Express Scripts network. “We have spent the last several weeks focused on ensuring that Express Scripts members have uninterrupted, convenient access to pharmacy care and excellent service. The feedback, to date, from our new customers has been excellent.”
Merlo noted that CVS Caremark has made investments in store labor and marketing to enhance it success in capitalizing on the opportunities from the impasse between Walgreens and Express Scripts. Based on the early results, CVS Caremark is now projecting that earnings per share will benefit by about 3 cents per share in the first quarter of 2012, should the situation remain unresolved for the duration of the quarter. This guidance is 1 cent higher than that provided during the company’s recent Analyst Day.
Should the impasse remain unresolved, CVS Caremark will report the estimated impact on a quarter-by-quarter basis throughout the year, Merlo told analysts.
Meanwhile, the 2012 selling season in the PBM segment continues to be on the upswing with a 98% retention rate. Net new business wins now total $7.2 billion, up from the $6.8 billion provided on Analyst Day. The estimate for the number of new Medicare Part D lives for 2012 has increased to 200,000.
In addition to net new business wins, the company expects an additional $5.5 billion in incremental revenue in 2012 associated with the acquisition of the Universal American Medicare Part D business in 2011.
In light of this, the total 2012 impact revenues currently stand at $12.7 billion, which is up from the $12.3 billion projected on Analyst Day.
During the fourth quarter ended Dec. 31, revenues in the pharmacy services segment increased 32.4% to $15.9 billion.
Net revenues for the fourth quarter rose 15.2% to $28.3 billion.
Fourth-quarter net income attributable to the company rose to $1.06 billion, or 81 cents per share, from $1.02 billion, or 75 cents per share, a year earlier.
In the first quarter 2012, adjusted EPS from continuing operations is expected to be between 61 cents and 63 cents. GAAP diluted EPS from continuing operations are expected to be between 55 cents and 57 cents.
CVS Caremark expects to deliver adjusted EPS of $3.18 to $3.28 and GAAP diluted earnings per share from continuing operations of $2.96 to $3.06 per share in 2012.
It also raised its 2012 free cash flow guidance by $300 million to a range of $4.6 billion to $4.9 billion. Cash flow from operations in 2012 is expected to be between $6.2 billion and $6.4 billion.