Jana Partners pressures PetSmart for sale
Phoenix – Jana Partners, the largest shareholder in PetSmart by one million shares with a 9.9% disclosed ownership stake, is pressuring PetSmart to sell the company. In a letter to the PetSmart board of directors, Jana said it will seek to install new, pro-sale board members at the upcoming annual meeting if PetSmart does not start seeking a sale.
“Given PetSmart’s chronic underperformance and significant private equity interest in the company, a sale in this case very likely offers the highest risk-adjusted return for shareholders,” said the letter.
Study: Health and beauty products best for drop-shipping
Albany, N.Y. – Retailers can maximize revenue from drop-shipping by adding health and beauty supplies while staying away from electronics. By analyzing 750,000 products added by retailers on its merchandising and fulfillment platform in a 12-month period, CommerceHub found that the number of health and beauty supply products grew by 92% while increasing revenue in the product category by 130%.
On the flip side, the number of electronics products increased by 59% while only growing revenue by 15%. Other leading product categories for drop-shipping include bedding & bath (50% increase in SKUs and 57% increase in revenue) and baby & kids (63% increase in SKUs and 78% increase in revenue).
Other lagging categories for drop-shipping include sports & outdoor recreation (18% increase in revenue and 68% increase in SKUs), computers & networking (10% increase in revenue and 39% increase in SKUs), and electronics & entertainment (15% increase in revenue and 59% increase in SKUs).
True Value net margin drops in Q2
Chicago – True Value Company posted a quarterly net margin of $23.2 million, down 2.5% compared to $23.8 million the prior year period in the second quarter of fiscal 2014. Revenue was $429.5 million, an increase of 4.5% from $411.2 million for the same period a year ago.
Same-store sales rose 4.2%. True Value Company’s expanded farm, ranch, automotive and pet product assortments, plus seasonal and plumbing categories, drove the majority of sales increases.