Retail Growth Patterns
 
How Target Is Challenging Amazon
As it redesigns its stores, Target is getting back to offering fashion-forward merchandise at decent prices. If it can keep that momentum going, it will help set the company apart from its peers including Walmart, Amazon and Kroger. Nestled inside Target's Minneapolis headquarters, racks of unfinished clothes line the walls. In another area, sketches and splotches of color are hung up for inspiration. Walk down the hallway, and it looks like you've arrived at an HGTV set with bedrooms, living rooms and kitchens on display. This is the creative hub of Target's in-house brands — a key part of the retailer's turnaround. Scattered throughout, there are chemical mixing labs and an alcove with a handful of 3-D printers. About 550 employees work together to bring roughly 40 private labels, such as Goodfellow & Co. for men's clothing and Up & Up for cleaning supplies, to life. Meetings take place around a dining table in Target's Made By Design room, which is decked out with kitchen appliances and other utensils from that label. And "Targeters," as they're sometimes referred to, arrive back from fashion shows or visits to overseas shops, toting items they've collected on their journeys. Each week, so-called kid influencers are ushered in and out of the Cat & Jack room to offer feedback on clothing styles being developed for the coming year.
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The Rise And Fall Of Yelp
When Yelp went public in 2012, the popularity of the review site was quickly growing and its stock soared. But it’s been a rocky road since then as advertisers fled the platform and as competition has increased from Google, Facebook and others.
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American shopping malls struggle to survive
Since the 1950s shopping malls became a fixture of the American landscape. But with the growing popularity of online shopping, malls across the country are struggling and even shutting down. Mark Strassmann reports on how one entrepreneur has found a new way to reel in consumers.
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How Domino's Is Winning The Pizza Wars
Domino's Pizza sales fell a decade ago, but today it's world's biggest pizza company by sales. How did Domino's turn around its fortunes to dominate competitors like Pizza Hut and Papa John's? For decades, food delivery meant Chinese takeout or Pizza, usually from a local shop or a large chain like Domino's Pizza. That's changed with the rise of food delivery services like Uber Eats, Grubhub, Postmades, and DoorDash. That's bad for Domino's. It might be American's number 1 pie maker, but Domino's Pizza built its business on delivery.
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Disney And Apple Take On Netflix In The Streaming Wars
Netflix, Hulu, Amazon Prime Video and others are about to come head-to-head with the likes of Disney Plus, Apple TV Plus, HBO Max and CNBC's parent company, NBCUniversal. It's been dubbed the streaming wars. In 2017, 61% of adults 18 to 29 said they primarily watch TV through a streaming service, compared to just 31% who watched cable. So who's going to win, what's going to happen to cable, and how much will it cost customers? Watch the video to find out.
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How Starbucks Became An $80B Business
In its 47-year history, Starbucks has transformed from a single coffee bean store in Seattle to a 30,000 cafe international coffee power house. But massive expansion hasn't come without growing pains. It's no secret that Starbucks has been struggling to get U.S. customers to frequent its cafes more often. While sales have been positive, the number of customer visits continues to stagnate. Same-store sales, a key metric in the restaurant industry, have dwindled over the last 12 months as competition heated up and customers were uninspired by some of Starbucks' limited-time offerings. While comparable-store sales exceeded expectations in the fourth quarter that ended Sept. 30, rising 4 percent, much of that was due Starbucks charging more for its lattes. Under the careful watch of Howard Schultz, Starbucks pursued a strategy of aggressive expansion in the late '80s and early '90s. By the time the company went public in 1992, it had 165 stores. Four years later, Starbucks opened its 1,000th location, including international cafes in Japan and Singapore. Growth was so rapid that, just two years later, Starbucks opened its 2,000th cafe. While unit expansion helped boost sales throughout the last two decades — Starbucks has had positive same-store sales growth since 2010 — the company has now spread itself too thin. With more than 14,000 locations in the United States alone today, Starbucks has cannibalized its own sales. The company is regrouping and rethinking its expansion. It is expected to shutter 150 underperforming locations in 2019, three times the amount it typically does. Compounding its problems are changing consumer preferences, an issue CEO Kevin Johnson has addressed with investors. People are shying away from sugar-laden calorie bombs, which happen to be one of Starbucks' staples. In 2015, sales of Frappuccinos were 14 percent of Starbucks revenue. However, in the first half of 2018, Frappucino sales were down 3 percent — and accounted for only about 11 percent of the company's revenue. Making matters worse, Frappuccino sales also were hurt by a lack of innovation, analysts said.
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How Nike Became The Most Powerful Brand In Sports
Nike is one of the most recognized brands in the world. It continues to surpass rivals like Adidas and Under Armor, despite controversy and slowing sales growth in U.S. How did Nike become the giant it is today? Nike's iconic swoosh logo and "Just Do It" slogan are universally known. As of June 2019, Nike is valued at nearly $130 billion, making it one of the most valuable companies in the world. It's popular shoe lines include the Nike Air Max, Nike Air Force 1, Nike VaporMax, Nike Cortez, and of course, Air Jordans. Air Jordans, combined with an advertising strategy that embraces controversy and exclusive contracts with some of the biggest sports leagues in the country have helped Nike succeed. But sales growth in North America is slowing down and and sneaker sales aren't growing as fast as they used to. Nike also faces criticism for its treatment of female employees, which is something the company will need to work on as it tries to make Women's apparel and sneakers a bigger part of its strategy. Will Nike continue to grow or will Adidas, Under Armour, and other brands continue to eat into its market share?
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Why Is Costco Opening Its Own Chicken Farm?
Vertically integrated agriculture - In fall 2019, Costco will open a chicken farming operation in eastern Nebraska. This venture will provide Costco with 100 million chickens, or 40 percent of its yearly chicken needs, allowing it to partially escape the American chicken oligopoly run by the likes of Tyson, Pilgrim's Pride and Perdue. One of the brand's iconic products is the Costco rotisserie chicken. Costco sells about 60 million of them every year, but they're a loss leader. Costco sells these chickens at a loss sometimes up to 30 to 40 million dollars per year. The chickens are a lure to get customers in the door. They're placed strategically at the back of every Costco so customers might pick up other items along the way. That's why Costco wants to keep the price so low. The trouble is that chicken prices have crept up over the last 10 years and the industry is practically an oligopoly run by the likes of Tyson and Perdue. Costco like most American Grocers buys from these behemoth companies because there's no other option. But not anymore. In 2016 Costco announced its plans to open a chicken farming operation in eastern Nebraska. It will own the whole supply chain from baby chicks to feed to the final product. This operation will provide Costco with 40 percent of its yearly chicken needs about 100 million chickens.
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