Wal-Mart’s CEO Duke 2011 pay package dipped 3%
Bentonville, Ark. — A report by the Associated Press on Monday said that Wal-Mart Stores Inc. CEO Mike Duke was compensated with an $18.1 million pay package in 2011, down 3% from the prior year.
According to AP, the pay decline is attributed to a smaller performance-based cash bonus for the year.
Duke received a base salary of $1.3 million, up almost 3%, and stock awards worth $13.1 million, also up 3% over the year-ago period. But his cash-based performance bonus dropped 25% to $2.88 million. The compensation plan was outlined in documents filed Monday with the SEC.
Under Duke’s watch, Wal-Mart has reversed a more than two-year sales slump in its namesake business as it emphasized low prices across the store and ramped up SKUs.
In a letter to shareholders in the retailer’s annual report, released Monday, Duke said one of his top priorities in the current year is to develop existing talent, including advancing opportunities for women.
Duke also underscored Wal-Mart’s goal of cutting costs and reinvesting in lowered prices, as well as developing its global e-commerce business.
Toshiba Tec to acquire IBM POS business for $850 million
Irvine, Calif. — Toshiba Tec Corp., an arm of Toshiba Corp., announced plans on Tuesday to acquire IBM Corp.’s point-of-sale terminal business for $850 million.
The transaction is expected to be completed mid-summer.
Toshiba Tec, which is 50% owned by Toshiba Corp., will become the world’s largest supplier of POS terminals once the acquisition is finalized.
Study: Most shoppers make impulse purchases
Denver — Research results released Tuesday by The Integer Group and M/A/R/C Research found that, despite a shopping list being a tool to stay on budget and eliminate unnecessary purchases, nine out of 10 shoppers still buy items not on their list.
The shopper behavior study, called The Checkout, showed that 66% of those who purchase off-list items were motivated by a sale or promotion. Thirty percent said they found a coupon, and 23% wanted to pamper themselves.
"Our data shows that 61% of off-list shoppers purchase an additional one to three items," said Craig Elston, senior VP, Integer. "This shows that if you reach a particular shopper at the right moment with the right message, for example — using in-store signage to play into their desire to pamper themselves — it can end with that item being added to their basket."
When it comes to list-making, 61% of shoppers are influenced primarily by the brand of product they currently use, 57% report that coupons influence their list, and 56% say store ads or circulars influence their list.
However, when shoppers are making lists, they typically do not write down brand names of a product, but rather write the product type. This means that although they may have their brand of choice in mind, there are factors that can influence a shopper to select one brand of a product over the other, telling marketers they need not worry that a shopping list excludes certain brands or creates a barrier to purchase.