Walmart Canada Bank launches credit card
New York City Wal-Mart Canada Corp. said its newly licensed bank, Walmart Canada Bank, has launched Walmart Rewards MasterCard. It plans to offer more banking products in the future.
“Over time, we would expect to launch additional products in the financial services area,” said Trudy Fahie, president CE) of the Canadian banking unit, in a Bloomberg report. “For now, it’s truly a singular focus on the cards.”
With the new card, holders can earn 1.25% of their purchases in Walmart Rewards for virtually every dollar spent at Walmart Canada and 1% of their purchases in Walmart Rewards for dollars spent at “virtually” all other stores where MasterCard is accepted, the company said. The no-fee cards will be sold at checkout counters as well as about 200 kiosks that have been installed in Wal-Mart locations,
Walmart Rewards can be redeemed instantly on future purchases, in five dollar increments, at the cash register of any Walmart Canada store nationally. Five Walmart Rewards equal five dollars in redemption value.
With the launch of the card, Wal-Mart joins other retailers, including Loblaw and Canadian Tire Corp., that offer banking services in Canada.
Retailers discuss how to get social
Social media took center stage at the Internet Retailer Conference & Exhibition 2010 in Chicago last week, with many retailers debating the best way to approach the medium.
“The impact of social media is clear — it’s not an ‘if,’ it’s a ‘now,’” said Andrew Koven, president of e-commerce and customer experience for Bayside, N.Y.-based Steve Madden Shoes, during a session. “We don’t want to be a general merchandiser that just throws things against the wall — so we have to make things relevant to audience.”
Steve Madden has already recognized the power of product recommendations via its targeted e-mail programs. Now, however, the footwear chain is taking recommendations a step further by leveraging social networking platforms to draw attention to its products.
For example, shoppers can now like/share/tweet or recommend Steve Madden items and spread the news on social networking sites.
“Social media is an open invitation for those who are interested in your brand — sometimes the feedback is positive and sometimes it’s not. Either way, it builds customer-brand trust and helps the company know where to make improvements,” Koven explained.
Steve Madden is currently redesigning SteveMadden.com to make “significant adjustments that make it a more socially minded site,” Koven said. This will include introducing new up-and-coming artists and adding more ties to social networking sites.
It is also setting the bar high for its Twitter and aims to reach triple its follower base in the next 12 months. Not only does Koven and the marketing team send out tweets, so does Steve Madden himself.
As for the frequency of tweets from the company — a much-discussed topic throughout the conference — Koven said it depends on whether or not the company has something meaningful to say.
“Sometimes we have a lot of things going on and other times we don’t,” he said. “We keep it natural and organic and don’t say there has to be at least five in a certain amount of time — though, we do try to send out at least one a week.”
Unlike Steve Madden, however, Palo Alto, Calif.-based Moxsie.com — an online retailer that sells independent designer clothing, jewelry and shoes — reaches out to its audience via Twitter much more.
“We don’t have the brand recognition yet that Steve Madden so have to do a lot more to engage our customers — we tend to send out a tweet at least once an hour,” said Julia Kung, director of marketing, Moxsie.com.
Moxsie — with nearly 62,000 followers on Twitter — uses the social networking site to not only let shoppers know about new items and giveaways, it also uses it as a platform to chat directly with customers.
“Like our audience, we watch Glee and reference Lady Gaga,” Kung said. “We go off topic sometimes and this is what keeps people interested — it’s an authentic voice, and a refreshing and effective alternative to traditional marketing. It also helps us relate and better interact with our customers, and ultimately we get loyal brand evangelizers.”
In fact, some shoppers take pictures or film videos with their purchases and in turn, the company posts them on Twitter. “People like to be a part of our brand, and we’re glad they are active participants,” Kung said.
Its Twitter strategy has indeed helped the company establish its brand presence and get the word out. In fact, 50% of its traffic comes mainly from Twitter. And when Moxie highlights certain products on Twitter, they often sell out fast.
“When something sells out, we usually send out a tweet and let everyone know we hope to get it back in stock soon,” Kung said.
It also gives its Twitter followers a sneak preview of when certain products come into the warehouse.
“We snap pictures and post them on the site,” Kung said. “Even if it’s blurry, we put it up — it’s not about perfection, it’s about wetting your customer’s whistle and making them feel like they are on the inside.”
Best Buy quarterly results below expectations
MINNEAPOLIS Best Buy reported net earnings of $155 million, or 36 cents per diluted share, for its fiscal first quarter ended May 29, compared with $153 million, or 36 cents per diluted share, for the prior-year period. Diluted earnings per share decreased 14% versus the prior-year period’s adjusted diluted earnings per share of 42 cents.
During the first quarter of fiscal 2011, Best Buy’s revenue increased 7% to $10.8 billion, compared with revenue of $10.1 billion for the first quarter of fiscal 2010. The increase reflected the impact of net new stores in the past 12 months, a comparable-store sales gain of 2.8% and the favorable impact of fluctuations in foreign currency exchange rates, the company reported.
“While our financial results in the fiscal first quarter were below expectations, we remain confident that the strategic investments we are making will deliver more robust connected solutions for customers and support increased margin expansion during the fiscal year,” said Jim Muehlbauer, Best Buy’s EVP finance and CFO. “We continue to expect solid top-line growth and expansion of our annual operating margin to approximately 5% revenue in fiscal 2011.”