RadioShack announces new capital allocation strategy
Fort Worth, Texas — RadioShack Corp. announced Tuesday a 100% increase in its dividend and the authorization of a $200 million share repurchase program as part of a new capital allocation strategy.
The strategy, according to the company, is designed to balance business growth opportunities with continued strong cash flow and provide a more consistent return of excess cash to long-term shareholders.
The board increased the annual dividend on the company’s common stock to $.50 per share in 2011, compared with $.25 per share paid in 2010, and has changed the annual dividend payout to a quarterly payout. The annual cash dividend of $.50 per share for 2011 is payable on Dec. 15, 2011, to stockholders of record at the close of business on Nov. 25, 2011, after which the dividend will be paid on a quarterly basis beginning in the first quarter of 2012.
The board also approved an authorization for a share repurchase of $200 million of the company’s common stock to be executed from time to time through open market or private transactions. The company said it currently expects to repurchase $200 million of the common stock during the next 12 months.
"Our balance sheet is strong and our business generates consistent positive cash flow," said Jim Gooch, president and CEO of RadioShack Corp. "At the same time, our evolving growth profile is well supported by current cash flow. Our new capital strategy reflects our desire to return excess cash more consistently to shareholders during a challenging economic environment."
Stop & Shop expands Scan It! mobile app
Quincy, Mass. — The Stop & Shop Supermarket Co. said Tuesday it has expanded the availability of Scan It! Mobile – a grocery app that allows customers to use their personal mobile device to scan, tally and bag their groceries while they shop.
First introduced last June for iPhone 3GS and 4G in three stores, Scan It! Mobile is now also available for many Android devices which will double the reach of customers. In addition, the pilot will expand to an additional 42 Stop & Shop stores in Massachusetts, Rhode Island and Connecticut.
A natural transition from the in-store handheld Scan It! device currently in use across 350 Stop & Shop stores, Scan It! Mobile provides shoppers with the industry’s first fully integrated in-store mobile experience where they can scan, tally and bag their groceries. Scan It! Mobile also provides personalized, relevant and specific offers to shoppers based on their location in-store and purchase history. Customers can anticipate potential savings of $250-$500 each year, based upon receiving eight-10 targeted coupons per shopping trip.
"We are excited to introduce our in-store mobile shopping experience to more Stop & Shop stores and Android customers, given the positive feedback we’ve received from customers that have used Scan It! Mobile and enjoy the ability to shop and scan with their smartphone," said Mark McGowan, president, Stop & Shop New England Division.
Stop & Shop first announced the Scan It! Mobile pilot in three Massachusetts Stop & Shop stores in Quincy, Braintree and Plymouth. With this recent expansion, the app is currently available in an additional 19 stores and is being rolled out to another 23 stores in the coming weeks. By the end of 2011, at least 45 Stop & Shop supermarkets will be fully operational with Scan It! Mobile.
Supervalu expands in Chicago, helps fight food deserts
CHICAGO— At an event Tuesday in Chicago, Supervalu announced that it will open a Save-A-Lot store in the Lawndale neighborhood of Chicago, bringing thae total number of Save-A-Lot stores in the Chicagoland area to 14. Supervalu, which said it is opening the store as part of its commitment to helping eliminate food deserts nationally, made the announcement alongside First Lady Michelle Obama and Chicago Mayor Rahm Emanuel. The Lawndale store will open by the end of November.
In July as part of an agreement with the Partnership for a HealthierAmerica, Supervalu announced plans to open 250 new Save-A-Lot stores in areas across the United States where there is limited or no access to affordable,healthy, fresh foods. Since its July announcement, Supervalu has opened 14 new Save-A-Lot stores in food deserts throughout the country.
“Supervaluand its network of stores, including our Save-A-Lots ubsidiary, are committed to bringing healthy, affordable food offerings tocustomers here in Chicago and throughout the United States,” said Craig Herkert, Supervalu chief executive officer and president. “We appreciate the tremendous leadership shown by First Lady Michelle Obama and Mayor Emanuel to address this important issue.