SUPPLY CHAIN

Kohl’s names Schneider Logistics as best-performing deconsolidator

BY CSA STAFF

Menomonee Falls, Wis. Kohl’s Corp. has named logistics provider Schneider Logistics as its Deconsolidator of the Year for 2008.

Kohl’s recognized Schneider’s transloading and distribution services during its Annual Carrier Conference held earlier this year in Milwaukee.

The Deconsolidator of the Year award is presented annually to the best performing deconsolidator in Kohl’s network of 12 locations throughout the United States.

During deconsolidation (also known as cross-docking or transloading), Schneider Logistics drays ocean containers of Kohl’s merchandise to its port warehouses. At the warehouse, the goods are transloaded for distribution to various Kohl’s distribution centers and stores throughout the country.

“In 2008 alone, our dray and transload teams eliminated one full day from their distribution cycle by increasing the throughput of ocean containers from port to distribution center,” said John Ferguson, VP international, Schneider Logistics. “Our new warehouse management system also accelerated the delivery of merchandise identified for special promotion and holiday sales by more than 90%.”

Schneider was honored for its deconsolidation work for Kohl’s at the port of Savannah. Schneider provides transloading, deconsolidation, port drayage and warehousing services at six U.S. ports, including Savannah, Ga.; Norfolk, Va.; Charleston, S.C.; Houston; Los Angeles; and Seattle. The company’s International services also include freight forwarding and customs house brokerage.

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Did sales heat up in July?

BY CSA STAFF

July sales results due out later this week from Target are likely to be somewhat anticlimactic. The company already told analysts last month that it would meet or exceed earnings estimates that were in place at the time, and second-quarter results for the period ended July 31 are scheduled for release in two weeks on August 18. Nevertheless, the July figures should provide valuable insight on a number of levels. For starters, there is the issue of the effectiveness of Target’s strategy to generate customer traffic through an ongoing, but recently heightened, promotional emphasis on food and consumables that is designed to allay shoppers concerns regarding Target’s prices.

Last month, Target’s same-store sales declined 6.2%, as fewer people shopped its stores and those who did spent less, so trends regarding customers traffic and average transaction size will be watched closely. Also instructive will be comments regarding the early pace of sales for the back-to-school season and expectations of seasonal sales during the remainder of August. Of course, the most closely watched metric will be same-store sales, which are expected to be negative, but a low-single-digit decline would be seen as a victory of sorts since earlier guidance and analysts’ expectations call for a mid-single-digit drop. Either way, the numbers will require some explaining on the part of executives because they will be compared to a prior-year period when consumers benefitted from economic stimulus checks, but at the same time were paying nearly $4 a gallon prices for gas. Then there is the issue of the credit card business and insight Target executives offer regarding repayment trends and whether consumers are paying their bills on time.

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Tapping former Target talent

BY CSA STAFF

Pier 1 Imports has secured the merchandising services of former Target executive Catherine David, who joined the Fort Worth-based retailer as EVP merchandising. David Spent 13 years at Target, and when she left the company was VP and general manager of Target Direct. However, she’s held several jobs in the interim, including most recently serving as president and COO for Kirkland’s and prior to that held VP and general manager positions with Sears Essentials, Sears Grand and The Great Indoors. She also serve as president of the Burnes Group, a photo frame and accessories supplier.

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