Rite Aid same-store sales fall in June
Camp Hill, Pa. Rite Aid Corp. said Thursday that its total revenue and same-store sales both fell in June compared with a year earlier, when consumers’ worries about the swine flu outbreak boosted sales of flu shots and treatments.
The chain said comp-store sales fell 2.5% in the four weeks that ended June 26. Pharmacy revenue from those stores dropped 3.7%, and sales of food, cosmetics, magazines, and other products fell 1.1%.
NCR expands Blockbuster Express kiosks in the South
DULUTH, Ga. NCR Corp. announced the expansion of its Blockbuster Express-branded DVD kiosks in Tennessee and the mid-South with a deployment at Mapco Express convenience stores.
Mapco Express currently operates more than 400 locations in nine states across the Southeast.
“Mapco Express customers throughout the southern United States will now have quality entertainment choices available to them at any hour of the day,” said Alex Camara, Vp and general manager, NCR Entertainment. “Convenience stores across the country are recognizing that conveniently-located Blockbuster Express kiosks improve the everyday shopping experience of customers.”
Cautiously, Lowe’s chief looks ahead
What’s it going to take for a robust recovery in the home improvement industry? According to Lowe’s CEO Robert Nibllock, two things — home prices must bottom and the job market must improve. When is that likely to happen? Next year, “in all likelihood,” he said.
Niblock made his remarks at the recent Jefferies & Co. Global Consumer Conference in Nantucket, Mass., where he told investors that the company is beginning to see some encouraging signs. Not only did the first quarter present the first positive comp-store number in 15 quarters, he also pointed out that 21 of the company’s 23 regions had positive comps. Gulf coast regions facing difficult comparisons with quarters bolstered by hurricane-related spending were the only exceptions, he said.
The second quarter of 2010, however, won’t have the twin benefits of Cash for Appliances program or the Homebuyer Tax Credit, which expired April 30. And one other thing: the first quarter had ideal weather for home improvement retailing.
“We still think that there’s some headwinds out there that make us cautiously optimistic as we look over the balance of the year. Particularly, we think consumers are closely monitoring housing value trends, as well as the employment landscape,” Niblock said.
Niblock and his team have studying consumer patterns very carefully in this year of transition, and the overall picture looks better than last year. “We think overall, as we look out into the future, consumers are less cautious than they were previously for the U.S. economic outlook,” he said. “I think they believe that the worst of the financial crisis and the impact of the recession that we’ve been through is behind them, but they still know that we’re not out of the woods yet.”
Cost containment will play a major role in the success of the company during the transition year — and the company’s new (rolled out in the third quarter) Facilities Servie Associate (FSA) positions are designed to provide an in-house alternative to outsourced facility management. “We decided that by hiring our own dedicated person, doing ti in-house versus outsourcing it on a contract basis, we could get better executing, quicker response to issues that take place and ultimately a lower cost.”
Next year, the company intends to reap benefits from what it calls its Integrated Planning and Execution (IP&E) — enhanced product assortment and replenishment systems — “to make sure that we improve our local assortments and make very sure that we have the right product in the right market at the right time.”