The share of retail workers suffering pay cuts has increased for the past six weeks, “not a good sign for holiday sales,” said a Morning Consult report released Monday and based on a poll of 15,000 U.S. adults. Seventy-three percent expressed worry about the economy, 71% were trying to spend less money, 58% were worried about finances during the holidays, 54% were trying to pay down debt, 46% were worried about job security and 40% expected to have lower household income; a quarter had higher household income than last year. On health worries, 71% were concerned that others weren’t taking the coronavirus seriously while shopping, 70% were worried about being too close to others, 54% were concerned about delivery speed or delays, and 29% worried about having time to shop. Some 45% of those polled Oct. 30-Nov. 1 expected to spend less on gifts this year vs. 39% polled Sept. 1-3. Only 14% expected to spend more, up from 12% in September. Forty-seven percent planned to shop online vs. 22% in store; 31% expected to shop in store and online equally. December is “the true cliff” for unemployment benefits, with 37% due to expire then, following 9% this month, said a poll of 200 U.S. adults.
The ProSource member healthcare program, launched last year as a way to help members retain and recruit employees, is now available in 48 states and Washington, D.C., said the buying group Tuesday. The program offers major medical coverage at an average 25% discount vs. market-equivalent plans, ProSource said. The unbundled plans offer access to major networks such as Cigna that ensure efficiencies through block underwriting: "Now, a small business can offer health care plans that are on par with large corporations," said Tim Bashford, senior director-sales. The group expects to add Alaska and Hawaii next year.
Conn’s is opening its first store in Wichita Falls, Texas, a HomePlus showroom set to open Aug. 14, it said Tuesday. The 40,000-square-foot store -- stocking furniture, mattresses, appliances, CE and home office products -- brings the state’s operating locations to 72, with a total of 143 stores across 14 states, the Houston-based retailer said. Conn's didn't respond to questions.
Best Buy signed on as a founding member of Parity.org’s Corporate ParityPledge in support of people of color, blogged the retailer Monday. The pledge is a public commitment to interview at least one qualified person of color for every open leadership role at the vice president level or higher, including the C-suite and board, it said. There are no quotas or deadlines, it said. Best Buy previously signed a similar pledge in support of women in leadership. “We know we won’t get there overnight, but we are committed to increasing the representation of people of color at Best Buy and being an inclusive employer that empowers and supports all of our employees,” said Mark Irvin, chief inclusion and diversity officer. Best Buy CEO Corie Barry last month appointed a group within the company to come up with ways of addressing racial inequalities and injustices after protests following the killing of George Floyd in Minneapolis police custody (see 2006030030).
Microsoft is closing its physical stores and will provide sales, training and support remotely, it said Friday. The company will “reimagine” spaces that serve customers, including Microsoft Experience Centers in New York; London; Redmond, Washington; and Sydney. Store closings will result in a pretax charge of $450 million, to be recorded in Q2. “Our sales have grown online as our product portfolio has evolved to largely digital offerings," said Microsoft Corporate Vice President David Porter. The company has been serving customers remotely over the past few months during the pandemic, he said. New online services include 1:1 video chat support, online tutorial videos and virtual workshops.
Former Best Buy CEO Hubert Joly will retire as chairman when his term expires at the June 11 annual meeting, said the retailer Wednesday. Joly will stay on as an independent consulting contractor for a one-year renewable term at $37,500 quarterly pay but no benefits. Former Chief Financial Officer Corie Barry succeeded Joly as CEO last June (see 1904150003). Patrick Doyle, Best Buy’s lead independent director since 2019, will succeed Joly as chairman. Russell Fradin, Doyle’s predecessor as lead independent director, won’t seek re-election to the board when his term expires at the annual meeting because of “increased time commitments” at his law firm, said Best Buy.
Best Buy has done an “admirable job mitigating the impact of tariffs,” Wedbush Securities analyst Michael Pachter wrote investors Thursday, but pressure from tariffs will “swiftly shift to pressure from supply chain disruption” at least through the first half. Supply chain problems due to the coronavirus are an “elevated concern” for the retailer, with the full impact of disruptions currently unknown, Pachter said. About 60% of Best Buy’s cost of goods sold originated in China last year, “but should be closer to 40%” in 2020, said Pachter, “still highly exposed in our view.” He affirmed the $43 billion company’s perception (see 2002270034) that it will be among the highest priority retailers to receive goods from China, making its risk “lower than any smaller retailer or online seller” other than Amazon.
Walmart shares recovered Tuesday, after a morning dip, to close 1.5% higher at $119.65 after its Q4 earnings report showing lower-than-expected revenue. Thanksgiving week sales were strong but the weeks just before Christmas fell short, said CEO Doug McMillon on an investor webcast. The holiday season “wasn’t as good as expected” due to lower sales volume and pressure on associate scheduling, said Chief Financial Officer Brett Biggs. Strength in electronics, grocery, health and wellness and home was offset by softness in toys, media and gaming, and apparel during December. McMillon noted there wasn’t a hot toy item during the season, as in previous seasons, with the most popular toy priced under $5. Revenue grew 2.1% to $141.7 billion, below analysts’ estimates of $142.5 billion. E-commerce sales in the U.S. grew 35% vs. the year-ago quarter. Walmart forecast 2021 earnings per share of $5 to $5.15, with 30% e-commerce sales growth.
AirPods Pro, largely on backorder since the holiday season, were being sold on BestBuy.com Thursday with in-store availability of Tuesday or Wednesday in various locations and shipping arrival by Tuesday through the website. Apple.com is still showing a month out on filling AirPods Pro orders. A Google search showed the flagship earbuds in stock at Target stores but further clicks showed they were out of stock at New York area stores and unavailable for ordering by website. But standard AirPods are in plentiful supply, including in a Target sale Thursday. The base model AirPods with wired charging case were discounted $20 to $139 and the wireless charging case version showed at $40 off to $169. Other Apple sale items at Target were Powerbeats Pro true wireless headphones, down $50 to $199, while the brand’s over-ear Studio 3’s were also clipped by $50 to $299. The latest iPads were discounted up to $80 with the seventh-generation 10.2-inch model 24 percent off to $249; that was lower than the 7.9-inch iPad mini that was on sale for $50 off to $349.
ProSource bumped nine custom integrator members to the Power level in Q4, it said Thursday, bringing the number of promoted Power members to 13 for 2019. The buying group added five CI members in the quarter, bringing its total number of new members for the year to 33. New members brought in more than $113 million in revenue. Elevated Power member companies are Audio Video Extremes, Waite Park, Minnesota; Digital Installers, Long Beach, California; First Priority Audio, Pompano Beach, Florida; Hive, Tampa; Home Technology Experts, Southampton, New York; Integrity Sound, Lakewood Ranch, Florida; Main Line Sound & Video, Wayne, Pennsylvania; Stereo and Video Center, Tyler, Texas; and TVS Pro, Salt Lake City. New CI members are Brilliant AV, Costa Mesa, California, Home Technology Solutions, Matthews, North Carolina; Home Video Library, Portland, Oregon; InVision Home Theater, Concord, California; and Merkle Audio Video, Fort Wayne, Indiana. Power members have annual minimum sales of $4 million vs. $1 million for CI, $10 million for PRO.