FROM THE DESK OF DEBORAH WEINSWIG

• In-store offers delivered digitally: When a shopper enters a store, a sensor could identify her via the location data from her smartphone (at some point, this could be done using cameras and facial-recognition software). The system could then call up data about the shopper, including online-browsing data, to “push” a list of suggested purchases to her, make cross-selling suggestions and issue e-coupons.
• More self-service options: In-store technologies could give shoppers new ways to find what they want. For example, smartphone apps or in-store kiosks could advise customers on product availability and the in-store location of their chosen items. And, in clothing stores, “magic mirrors” could show customers colors and size options or suggest complementary accessories or footwear.
• Clienteling: The store of the future may not need as many associates on the floor, but the ones who are there would have new powers. With tablet computers and apps that tap into data on the cloud, associates could have full customer relationship management systems in their hands. They could call up a shopper’s profile, make cross-selling suggestions, answer the shopper’s questions, display merchandise, check availability and transact a sale.
• Automated inventory: Internet-of-Things technology could make new approaches to inventory management possible. By using sensors to weigh or measure inventory, stores could see exactly when replenishment is needed. At some point, RFID tagging of individual stock items could make inventory management even more precise. Advanced inventory systems could not only prevent costly stock-outs, but also help fine-tune ordering and reduce inventory carrying costs and markdowns.

Through February 28, 2015 Seasonally adjusted Source: US National Association of Realtors

• The sale of existing homes rose in February by 1.2% from January, and by 4.7% year over year, to a seasonally adjusted rate of 4.88 million units.
• Despite the increase, the rate of growth is still “unhealthy,” according to the chief economist of the National Associaton of Realtors.
• Fast-rising home prices and low inventory levels were major concerns. The Feburary median home price in the US was $202,600, up 7.5% year over year.

 US RETAIL TRAFFIC

US Store Traffic Was Improved by Spring and Easter Shopping

Through March 21, 2015 Source: ShopperTrak

• US store traffic stayed in negative territory in the week ending March 21, but improved to (-1.2%) from (-3.4%) due to early spring and Easter shopping.
• Apparel store traffic grew by 3.8%, while electronics store traffic declined 8.4%.

 US REGULAR GASOLINE PRICES

Source: US Energy Information Administration

US WEATHER ANALYTICS: Week of March 29–April 4

• Warmth Continues Across the Plains and West. Markets from the Central Plains to the West Coast will continue to trend warmer than both last year and normal. Expect strong demand for pool chemicals, lawn care categories and other outdoor products.
• Cooler than Last Year in the East. The eastern US will start the week off on the cool side and will become colder still as another shot of Canadian air rushes into the region midweek. Most of the East will average well below last year and normal. The South Central region will also trend cooler than last year and normal for the majority of the week. These conditions will limit demand for spring merchandise. Florida remains the exception, with temperatures there expected to be warmer than both last year and normal.
• Rain and Mountain Snow. Light snow will track across the Northern Tier, while rain and thunderstorms will persist across the South. More rain and mountain snow will extend from the Pacific Northwest across the Northern Rockies and into the Plains.

US PROMO HIGHLIGHTS

• Retailers started early Easter promotions: JCPenney offered bonus cash and doorbuster deals for Easter dresses. Kohl’s also featured dresses and shoes for Easter at up to 50% off. Dollar General encouraged shoppers to celebrate Easter savings with over 100 items for Easter baskets.
• Department stores’ spring campaigns were in full swing: Nordstrom promoted wedding guest dresses and “style on a shoestring.” The Macy’s weekly sale was themed “Happy Spring Home Sale” and featured sales of 10%–15% off, plus extra Macy’s money.
• Big-box retailer Walmart encouraged shoppers to tackle spring projects and take advantage of deals on landscape basics.

RETAIL EARNINGS

*Reported in SEK Source: Company reports

US RETAIL HEADLINES

Simon Property Made Best and Final Offer of $23.2 Billion for Macerich

• Simon Property announced its best and final offer to acquire Macerich: $95.5 per share, or a total transaction value of $23.2 billion. This offer represents a 37% premium over Macerich’s pre-announcement price on November 18, 2014.
• This new deal was proposed after Macerich rejected Simon’s $91 per share, or $16 billion, offer last Tuesday. The new offer also includes the assumption of Macerich’s $6.4 billion of debt.
• Macerich has until April 1 to consider the offer, after which Simon will withdraw the deal.

Victoria’s Secret Partners with Percassi to Franchise in Italy

• The Italian retail and real estate development firm Percassi signed a franchising partner agreement with Victoria’s Secret in Italy. The first city boutiques are set to open this year. Percassi earlier had helped Zara enter the Italian market.
• At Victoria’s Secret stores in Italy, customers will be able to shop for fragrances, bath and body products, small leather goods, travel accessories, and a selection of lingerie.

Morgan Stanley CFO Ruth Porat to Join Google

• The Chief Financial Officer of Morgan Stanley, Ruth Porat, will assume the same role at Google. She will replace the retiring CFO, Patrick Pichette.
• Porat, 57, joined Morgan Stanley in 1987 and led the bank’s tech banking division during the dot-com era. She is the most recent influential Wall Street figure to leave for Silicon Valley, following the example of Goldman Sachs’ Anthony Noto, who became CFO of Twitter, and prominent Credit Suisse tech banker Imran Khan, who now serves as Chief Strategist at Snapchat.

Heinz and Kraft Announce Merger: Will Become the Third-Largest Food Company in North America

• Kraft Foods Group and H.J. Heinz announced their merger, under which Kraft shareholders will own 49% of the new company and get a special cash dividend of $16.5 per share, while Heinz shareholders will own a 51% stake.
• The new Kraft Heinz will be headquartered in Pittsburgh and the Chicago area. Kraft’s shares jumped 26% upon the announcement.

ASIA TECH HEADLINES

Reuters Websites Become Inaccessible in China

• The news websites of Reuters, including those in English and Chinese, were inaccessible in China on Friday. Users first experienced difficulties accessing them late Thursday.
• The websites of Bloomberg News, The New York Times and The Wall Street Journal have all been inaccessible in China for some time. The Cyberspace Administration of China, the country’s Internet regulator, did not immediately respond to a written request for comment.

Founder Cher Wang Takes Over as CEO as Taiwan’s HTC Seeks Turnaround

• On Friday, HTC named Cher Wang as Chief Executive Officer, giving her, the company’s founder and chairwoman, a bigger role in leading a potential turnaround of the Taiwanese smartphone maker.
• Revenue at HTC, which once had a 1% share of the global smartphone market, has largely flatlined following a gradual slide over the past two years. Net income has fared worse, with the company reporting either losses or only a slim profit since hitting a peak in the third quarter of 2011

Uber Singapore Is Offering Free Rides in a Lamborghini or Maserati

• In the new service, Uber will provide rides in supercars until May 20, 2015, as part of a new partnership with Dream Drive.
• The Lamborghini will set riders back a base fee of S$200 (US$144) with a S$7 (US$5) fee for each additional minute. The Maserati is somewhat cheaper, with a base fee of S$165 (US$119) with a S$7 (US$5) fee per additional minute.

China to Reap Alibaba Windfall as It Tightens Up on Tax

• China could make billions of dollars from taxing gains made by employees of e-commerce giant Alibaba. Employees are free to sell their shares for the first time since the company’s IPO, just as the country is tightening up its leaky mechanisms for tax collection.
• While tax on employee compensation is withheld by employers, tax on share sales must be declared by employees, meaning that those taxes are typically harder for authorities to track.

Wempy Dyocta Koto of Indonesia’s Systec Group Joins Chinaccelerator

• Wempy Dyocta Koto is a well-known figure in Southeast Asia. Fortune named him one of Indonesia’s “40 under 40” recently. He also currently sits on the board of advisors for Kalibrr, the first Filipino startup to be admitted into Y Combinator.
• Startups that gain entry into Chinaccelerator receive US$30,000 in seed funding, residence at the accelerator’s campus in Shanghai, three months of mentorship, and the chance to pitch to angel investors and VCs at the end of the program during a demo day.

Daum Kakao Acquires K Cube Ventures, Adds $15 Million to It

• Daum Kakao, the publicly listed firm responsible for one of South Korea’s largest Web portals in Daum and chat app KakaoTalk, has acquired 100% of K Cube Ventures, an early-stage VC firm that invests primarily in South Korean and a few Asian-Pacific companies.
• Daum Kakao will invest another US$15 million in K Cube to launch a new early-stage fund. In the process, K Cube will become the acquirer’s corporate investment arm. K Cube will operate independently from K Venture, an investment firm with US$90.8 million in capital.

Learn Business English from Real Execs with BeNative Pro, Which Just Raised $2.7M

• Seoul-based educational startup Smatoos announced a KRW3 billion (US$2.7 million) series B investment for its business-English learning service, BeNative Pro, which launched earlier this year.
• It will go toward expanding into China and Taiwan, as well as increasing the startup’s existing presence in Japan. Currently, 64% of users are in South Korea, 27% are in Japan and 9% are in China.

EUROPE/UK RETAIL HEADLINES

Hennes & Mauritz Group Increases Profits and Establishes New Market Opportunities

• For the period from December 2014 through February 2015, H&M’s comparable sales increased by 15% in local currency, while gross profits grew by 26%. This quarter’s success has been attributed to new collections that have been well received by consumers both in-store and online.
• The company said it plans to open 400 new stores in the financial year 2014/2015 and will pursue nine more online markets.

ScS Reports Rise in Comparable Sales Alongside an Operating Loss

• ScS, a UK sofa retailer, has reported a 7.8% rise in comparable sales in the first half of its financial year and a total sales increase of 14.5%, to £132 million (US$478 million).
• In the six months ending January 24, 2015, ScS boosted gross profits by 13.2%, but posted an operating loss of £8.7 million (US$13 million). However, this shortfall had been expected due to investment in advertising and new concessions.

NotOnTheHighstreet.com Taps into Tesco Knowledge

• Simon Belsham, Managing Director of Grocery Home Shopping for Tesco.com, has been appointed Chief Executive Officer for NotOnTheHighstreet.com.
•  NotOnTheHighstreet.com had a turnover of £127 million (US$189 million) in 2014 and customers numbered over 3 million. With previous roles in Ocado and Tesco, Belsham is being brought on to help the company with his e-commerce expertise.

Achica Remains in the Red Despite Sales Increase

• UK-based luxury e-tailer Achica has now posted its full-year financial results for 2013. The sales figures are encouraging: £36.5 million (US$54 million) in 2012 increased to £55.7 million (US$83 million) in 2013. However, the loss for the period reached almost £7 million (US$10 million).
• The deficit has been linked to staff investment and property costs. Achica says it will continue to invest in new market opportunities, particularly in Spain and France, which the company sees as strategically important for business growth.

Morrisons Axes Nearly Half of Executive Board in One Fatal Blow

• David Potts, the new boss of UK supermarket chain Morrisons, has started an explosive clear-out within the company’s top-level management. The Marketing Director, Retail Director, Strategy Director, and Logistics and Convenience Directors have all been shown the door, leaving only seven left on the Executive Board.
• Potts has said he aims to create a “leaner” senior team as Morrisons prioritizes investment in its larger stores in order to regain “trading momentum.”

LATAM RETAIL HEADLINES

FEMSA to Benefit from Change in Mexico’s Oil Regulation

• A minor change in Mexico’s oil regulation overhaul ended the monopoly of state-owned Pemex (Petróleos Mexicanos).
• Fomento Económico (FEMSA) agreed to acquire 227 gas stations on February 26 and is looking to acquire even more.
• Under the new regulatory framework, FEMSA will now be able to open gas stations freely.

Ferrioni Automates Supply Chain

• Mexican brand manufacturer and retailer Ferrioni plans to replace its legacy POS and merchandising systems with fully automated supply chain processes.
• The company is implementing an omnimobile solution, which expands beyond the traditional workplace to include enterprise notifications and alerts from anywhere, at any time.
• When the solution is deployed, the company will have real-time insight into all of its business processes.

GM to Manufacture Next-Generation Chevrolet Cruze in Mexico

• On March 23, General Motors announced its plans to build its next-generation Chevrolet Cruze small car in Mexico.
• The company will spend $450 million to expand its plant in Coahuila, as part of its announced $5 billion investment in Mexican plants.
• This represents the first time the Cruze will be manufactured in Mexico.

Facebook Opens “Innovation Lab” in Brazilian Favela

• Last week, Facebook set up an “Innovation Lab” in Heliópolis, a sprawling, unplanned community (favela), in southeast São Paulo.
• The lab offers small business owners free classes on digital marketing, finance and Facebook’s services.
• The lab’s goal is to provide mobile technology to entrepreneurs, since Brazilians are among the world’s top purchasers of smartphones, even in lower-income areas.