http://chicagobusiness.com/section/on-retail http://www.chicagobusiness.com en-us Tue, 21 May 2013 00:05:31 EST 10 http://www.chicagobusiness.com/article/20121228/BLOGS01/121229882/walgreens-stock-prospects-look-bright-for-2013?utm_source=BLOGS01&utm_medium=rss&utm_campaign=chicagobusiness 20121228/BLOGS01/121229882 the worst corporate blunder of the year.

But an article published today on YCharts says the Deerfield-based drug giant's woes may be behind it, pointing out that Walgreen's stock is up 24 percent in the past six months, compared with competitor CVS' 5 percent gain.

Author Dee Gill writes:

"CVS remains the darling of the sector, having made away with oodles of Walgreens' customers and investors in the past 18 months. More than 20 analysts recommend buying CVS shares now, which is almost everyone that follows it. Walgreens gets a much more mixed reaction from that community.

But 2012 will close out many of the problems that led to Walgreens' disgrace, leaving intact one of the most popular drugstore chains in the nation. With the summer's purchase of a 45 percent stake in Britain's Alliance Boots, it also becomes one of the biggest prescription drug buyers in the world and gains bargaining power with the status. And with a 3 percent dividend yield and more than a decade of steady dividend gains, it remains an income play worth investigating."

In other news, someone else isn't feeling quite as positive about Walgreen.

Rollingstone.com noted that Canadian rapper and singer Drake is displeased with Walgreen and other retailers for selling merchandise emblazoned with "YOLO," an acronym for "you only live once' popularized in Drake's 2011 song, "The Motto."

Rolling Stone reported that the rapper took his grievances to Instagram, where he wrote, "Walgreens . . . you gotta either chill or cut the cheque" underneath a photo of baseball caps with "YOLO" printed on them.]]> Fri, 28 Dec 2012 11:13:50 EST http://www.chicagobusiness.com/article/20121228/BLOGS01/121229880/sears-holds-steady-in-online-satisfaction?utm_source=BLOGS01&utm_medium=rss&utm_campaign=chicagobusiness 20121228/BLOGS01/121229880
According to an annual customer satisfaction survey of the top 100 e-commerce sites, Sears.com has improved its customer experience markedly since 2005, the survey's first year.

That's important because Chairman Edward Lampert and CEO Lou D'Ambrosio are counting heavily on integrated retail and Sears' online sales to spur a turnaround at the struggling 124-year-old mass merchant.

Sears scored a satisfaction rating of 75 out of 100, unchanged from last year but up 7 points since 2005, according to Ann Arbor, Mich.-based research firm ForeSee. Sony's online store boasted the largest improvement over time, jumping 10 points from 2005 to 2012. Home Depot increased its satisfaction by 9 points since 2008 and OfficeMax by 9 points since 2007.

Though Sears is working its way up in the rankings, its online experience still scored below the 78 average for all retailers. And its improvement hasn't lifted its satisfaction scores out of the bottom tier of big retailers. With a 75, Sears ranked 84th out of 95 companies. (ForeSee didn't receive sample sizes large enough to report scores for five retailers.)

For the second year in a row, Amazon.com scored the highest rating of any company, with an 88. L.L. Bean's site came in second, with an 85.

For comparison's sake: J.C. Penney, another elder statesman of retail that has struggled to reinvent itself in 2012, dropped 5 points to 78 — still higher than Sears but a marked decline from 2011. Penney's efforts to shift its pricing strategy under new CEO Ron Johnson have attracted negative publicity that seems to have affected customer perception, according to ForeSee.

“At this point, Amazon has been dominant for so long and has such a history of focusing on the customer, it's hard to imagine anyone else coming close,” ForeSee CEO Larry Freed said in a statement.

An estimated 39 percent of U.S. holiday shopping was done online this year, and shoppers spent nearly $30 billion online between Nov. 1 and Dec. 7, up 13 percent from the same period a year ago, according to the National Retail Federation.

The report is based on more than 24,000 responses from visitors to the top 100 e-retail sites, as defined by sales figures reported by Internet Retailer's Top 500 Guide.]]> Fri, 28 Dec 2012 11:31:03 EST http://www.chicagobusiness.com/article/20121227/BLOGS01/121229905/holiday-sales-slow-this-year?utm_source=BLOGS01&utm_medium=rss&utm_campaign=chicagobusiness 20121227/BLOGS01/121229905
For the week ended Dec. 22, sales increased 39.1 percent and shopper traffic increased 32 percent compared with the previous week.

But compared with the same week in 2011, retail sales declined 2.5 percent and foot traffic declined 3.3 percent.

Saturday was the second-busiest retail sales and foot traffic day of 2012, behind Black Friday, the day after Thanksgiving, according to ShopperTrak. The company counts shopper traffic electronically in more than 50,000 stores worldwide.

ShopperTrak's findings are in line with other post-holiday reports.

According to MasterCard Advisors SpendingPulse, U.S. holiday sales grew in 2012 but slowed about 65 percent from 2011 as shoppers were interrupted by Hurricane Sandy and worried by politicians' inability to compromise on fiscal legislation.

Retail sales grew 0.7 percent from Oct. 28 through Dec. 24, the Purchase, N.Y., research firm said. Sales grew at a 2 percent pace in the same period a year ago. SpendingPulse tracks total U.S. sales at stores and online.]]> Thu, 27 Dec 2012 09:22:02 EST http://www.chicagobusiness.com/article/20121221/BLOGS01/121229961/getting-to-know-wilfred-newmans-ryan-newman?utm_source=BLOGS01&utm_medium=rss&utm_campaign=chicagobusiness 20121221/BLOGS01/121229961
The latest upscale label to hit Chicago is Wilfred Newman, which just opened a River North storefront. Founder Ryan Newman, a veteran of several major clothing manufacturers, has been creating custom suits and shirts since 2009. He began his business out of his apartment with precious little capital, began acquiring clients ranging from young bankers to NHL players and Smashing Pumpkins frontman Billy Corgan, and eventually rented the penthouse suite in enV, a River North high rise, for customer fittings.

Now, with a permanent store, Mr. Newman is expanding his line to include ready-to-wear items, casual sweaters and accessories.

He answered a few questions via e-mail while overseeing the store's final touches and hosting its launch party. Below is the edited transcript of our exchange.

30-second bio

Name: Ryan Lynn Newman

Age: 32

Birthplace: Baltimore; grew up in Columbus, Ohio

Residence: River North

Hobbies: Cooking, travel, fashion, music, art,

Crain's: What time do you wake up? Mr. Newman: 7 or 7:30, after going to sleep around 2 a.m.

How many cups of coffee a day? Just one.

How'd you first become interested in retail and clothing? I first became interested in clothing in high school. I think I wanted to wear cool clothes when I realized that girls liked guys that looked good.

What sources do you mine for retail and menswear news? Truthfully, I am so busy and so focused on Wilfred Newman that I don't spend a lot of time on other companies. When I'm traveling, I always read GQ, Esquire and Details on my flights. So that's once or twice a month.

Can you describe the moment you knew you wanted to go into business for yourself? I was 29 and at an interesting point in my life. My twenties had been kicking my ass a little bit and I really had nothing to lose. I knew that working for someone else was very limiting from a creative standpoint and figured, "Screw it, I'm going to start my own business." The first thing that I decided was that it would be an extension of me: what I like, what I think is cool and in style. I suppose that's also a contributing factor to why I came up with Wilfred Newman. . . .My great-grandfather's name was Wilfred.

You worked for a couple of major menswear manufacturers before going out on your own. What did you learn there, and how did your experience translate to launching a startup? I learned a lot of behind-the-scenes stuff, but the most important thing that I have ever learned is to never give up and never quit. No matter how difficult things are or how big the problem, if you have a clear vision of your goals and what you are trying to accomplish, you persevere and can overcome any obstacle. I started Wilfred Newman from nothing while crashing on a friend's couch. . . .Three years later, we opened our first street-level retail shop.

What's your own preferred day-to-day look? Favorite brands? My preferred day-to-day look is casual-cool. I prefer a blazer with a button-down shirt, no tie, probably a pocket square, casual dress pant. Our cotton twill pants are the perfect in-between pant: Not a dressy slack but not a jean. You can wear them to the office or out on a dinner date. My favorite brands are typically guys who I admire and respect in the industry. I love what brands like John Varvatos, Paul Smith, and Billy Reid represent.

What five items should every well-dressed guy invest in? Tuxedo, overcoat, sharp navy suit, killer blazer and a nice pair of shoes.

What should we expect from Wilfred Newman in the future? Really great-quality clothes.]]> Fri, 21 Dec 2012 10:56:27 EST http://www.chicagobusiness.com/article/20121219/BLOGS01/121219759/the-ebay-of-pawn-shops?utm_source=BLOGS01&utm_medium=rss&utm_campaign=chicagobusiness 20121219/BLOGS01/121219759
Definitely, says George Souri, of Chicago-based private equity firm Atria Group.

"With traditional pawn shops, let's face it: There's a stigma attached," said Mr. Souri, who recently led a group of investors in launching Ultrapawn. "People aren't comfortable, so there's an underserved consumer market."

Ultrapawn, which involves both online and bricks-and-mortar components, targets customers used to shopping at Bloomingdale's and Nordstrom.

"There are people who acquire valuable items and want to generate cash, not necessarily because they need the money, but because they want to reallocate the value," Mr. Souri said. "Maybe they have jewelry they don't wear and want to take a vacation, or are looking for some seed money for a new business. Banks in that situation are difficult to work with, and you can't do a quick transaction. Dealing with eBay or Craigslist is a pain in the butt."

The popularity of cable TV shows like the History Channel's "Pawn Stars," Mr. Souri said, has polished the industry's image and made it ripe for disruption.

"The pawn industry has experienced a real change in public perception," said Emmett Murphy, a spokesman for the National Pawnbrokers Association in Keller, Texas.

He says three factors have created a "perfect storm" of demand and popularity.

No. 1: Millions of Americans are "underbanked" and don't have anywhere else to turn to for loans. According to a 2011 report by the Federal Deposit Insurance Corp., some 10 million households — or more than 8 percent of the nation — do not have a bank. Twenty percent are underbanked, meaning they still conduct some of their financial transactions outside of the mainstream banking system.

Reason 2, according to Mr. Murphy, is the escalating price of gold and the fact that consumers can get more for their jewelry.

Finally, these factors, combined with television shows, have "mainstreamed the pawn industry to an unprecedented degree," so more middle-class Americans are pawning items of higher value.

Statistics from the NPA back that up. According to a survey of its 2,000 national members, the average pawn loan amount increased to $150 in 2012 from $100 in 2010. More than 80 percent of pawnbrokers surveyed reported an increase in the dollar amount of loans being extended.

According to the most recent U.S. Economic Census data, there were 6,389 pawn stores in the U.S. in 2007. The NPA estimates that number grew to about 10,000 by January 2012.

The pawn industry as a whole has grown to a $7 billion business, but remains extremely fragmented. Only three corporations in the pawn industry are publicly traded — Cash America International Inc., EZCORP Inc. and First Cash Financial Services Inc. — and, according to the NPA, represent less than 13 percent of the industry.

Mr. Souri says Ultrapawn's main draws are its customer service and its focus on higher-end merchandise.

The process is straightforward: A potential seller fills out a short online form describing the item he wants to pawn. Ultrapawn then sends the customer an initial estimate and a prepaid shipping label to mail in the item, which is insured up to $1 million. Once the item is more fully appraised, the customer receives a final offer. The money is either wired to his bank account or sent to him via a prepaid debit card.

The whole process generally takes less than 24 hours, according to Mr. Souri. Customers can repay the loan in 30, 60 or 90 days. Once the loan is repaid, Ultrapawn sends the item back to the customer. If a customer does not repay a loan, Ultrapawn keeps the item and sells it; there are no collections and the customer's credit is not affected. (According to the NPA, about 80 percent of all pawn loans are repaid and customers reclaim their belongings.)

While traditional pawn shops charge interest rates of up to 25 percent, Mr. Souri says Ultrapawn's rates will range between 2 and 10 percent.

The company will focus primarily on online transactions, but Ultrapawn is also building its bricks-and-mortar presence. So far, the company has locations in northwest suburban Arlington Heights, west suburban Lombard and Littleton, Colo. The stores, which range from 2,000 to 3,000 square feet, feature upscale decor and leather seating.

"Our bricks-and-mortar stores look like Michigan Avenue stores," Mr. Souri said.

Mr. Souri isn't the first businessman to see huge opportunity in the world of online pawning, which many industry watchers compare to the world of online auctions before eBay.

No entity has yet legitimized the business and taken a leading position, but at least several are trying. They include Pawngo, a Denver-area company financed by Chicago's Lightbank, the same group that financed Groupon, and Portsmouth, N.H.-based Pawntique.

The race to claim a stake in the online pawn industry is likely intensified by the fact that no one currently knows who regulates the online pawn industry.

The Illinois Department of Finance and Professional Regulations oversees the roughly 400 bricks-and-mortar pawn shops in Illinois, spokeswoman Susan Hofer says, but does not have online rules.

"Illinois law requires the seller to present identification and ensure that the owner of the pawn shop is confident he or she knows who is selling the item," Ms. Hofer said. "That can't happen online. There will come a time where there is a wide use of digital signatures (or other identification procedures), but we're not there yet."

Pawn shops are also required to report every item they acquire to make sure the merchandise isn't stolen, a process that is handled at the state level and would be overwhelming should online pawn shops begin conducting business across state lines.

"There is no precedent for this kind of business," said Mr. Murphy of the NPA.]]> Wed, 19 Dec 2012 11:15:07 EST