Old Navy closing in on 300th remodel; new design driving higher customer transaction
San Francisco — Old Navy will complete its 300th remodeled store in mid-July as it continues to overhaul its entire chain. The design has a racetrack layout and features improved visual merchandising with light wood and white shelving, walls and backdrops that spotlight the core Old Navy product categories. For more photos, click here.
“With almost a third of our fleet remodeled, we are well on our way to completing our vision of transforming Old Navy into what our customers want more of – a fun, convenient shopping experience that showcases our compelling products, all at great prices,” said Tom Wyatt, president of Old Navy. “These store designs more boldly reflect our personality; more clearly delineate our product categories and consistently outperform the rest of our fleet in sales, with higher customer experience scores in each new community driving her to spend $1-$2 extra per store visit.”
Other updated store features include moving the dressing rooms to center of store from the back, and closer to the cash wrap for more energy, ‘quick fit pods;’ additional associates for the fitting rooms and greeters during peak hours. The new stores also have an interactive play area for kids.
Old Navy integrated sustainable practices and features into each design, including low-wattage fluorescent lighting, low VOC paints, low water consumption plumbing fixtures, and recycled materials. The brand is also piloting a construction waste program to divert waste from landfills this year, with plans for this to be standard in most stores by 2012. To date, Old Navy has saved around $2 million a year by implementing low wattage fluorescent lighting in all remodeled stores.
NCR acquiring Radiant Systems
Duluth, Ga. — NCR Corp. will acquire Radiant Systems, a leading provider of multichannel point-of-sale and managed hosted service solutions to the hospitality and specialty retail markets, through a cash tender offer of $28.00 per Radiant Systems share. The equity purchase price of $1.2 billion has been approved by the boards of directors of each company.
It is expected the transaction will close during third quarter 2011, subject to regulatory approval.
The transaction accelerates NCR’s strategy of expanding into core industry adjacencies, increasing revenue growth rates and expanding margins by enhancing its mix of software and services. With the addition of Radiant Systems, NCR will create a third core industry vertical, after its Financial and Retail lines of business, and establish category leadership in the hospitality and specialty retail markets.
NCR plans to leverage Radiant Systems’ leadership position in quick service and table service restaurants, specialty and convenience retailers and entertainment venues by combining Radiant Systems’ solution and services portfolio with NCR’s existing portfolio, brand and global reach.
The hospitality and specialty retail total addressable markets are approximately $8 billion in size and under-penetrated by industry leaders, according to NCR.
Key members of the Radiant Systems management team will play integral roles in strengthening NCR’s position in hospitality and specialty retail, including Andrew Heyman, currently Radiant Systems’ COO, who will lead the new vertical. The two companies anticipate a seamless transition for customers, channel partners and employees.
Supervalu-owned Albertsons not removing self-checkout lanes
Minneapolis — Supervalu on Monday that it is not removing the self check-out lanes from the 460 Albertsons stores that it owns and operates in Idaho, Oregon, Montana, Nevada, Southern California, Utah, Washington state and Wyoming.
Last week it was reported that Albertsons LLC, a separate entity that owns and operates 217 stores in Arizona, Arkansas, Colorado, Florida, Louisiana, New Mexico, Texas and Utah, decided to remove self check-out lanes from its stores. The Albertsons stores owned by Supervalu will continue to provide self-checkout lanes for the convenience of its customers.