Today’s shopper has retailers, suppliers and brand consultants continuously scratching their heads as they work feverishly to keep pace with escalating and changing expectations.

More than 300 business professionals attended the “Shop” conference at the University of Arkansas Center for Retailing Excellence on Thursday (May 16). A diverse speaker lineup shared their thoughts on finding and converting growth opportunities with shoppers.

One common theme during the day’s conference was the disruptive impact that social media and mobile technology has on how players in the retail space react. The other theme was that change is happening at warp speeds, and those embracing big data and digital technologies will likely survive for future generations.

Stephen Quinn, chief marketing officer for Walmart U.S, said when it comes to mobile, marketing dollars are often better spent creating applications that solve consumer problems, than in merely advertising a product or brand.

CREATIVE SOLUTIONS REQUIRED
He urged suppliers to collaborate with Wal-Mart and if they haven’t already done so, Quinn said get an RDK (Retail Development Growth Kit) which will help lay the groundwork for creative and collaborative solutions to consumer demands through the use of social and mobile media.

Fern Grant, executive vice president for Mars Advertising, challenged the retail sector and its supply chain to move beyond textbook shopper marketing 1.0 where retailers constantly trade marketshare often at the expense of margin erosion in the quest for low prices.

She said the 1.0 version is aimed at getting product on the shelf, and even keeping it on there with the hope of moving into other spaces as well. Her 2.0 version of shopper marketing includes suppliers and retailers working together to solve a consumer need.

“When you can provide a solution for the consumer’s needs, you no longer have to solely rely on price discounting.” Grant said.

GET GAMIFICATION
David Marcotte, senior vice president of retail insights for Kantar Retail, urged retailers and suppliers to think outside the box in terms of interacting with potential consumers through gamification.

He said Cabella’s, a leading outdoor specialty chain, has done just that with several games, which was accomplished through outsourcing. Marcotte, said the retailer is reaching multiple age demographics with its gamification, which is also tied to coupons when certain levels are achieved.

“Gamification is a dynamic and exciting industry that brings together game mechanics and marketing to create engagement and solve problems,” noted the website of Gamification Corp.

Another gamification company, Gigya, says such solutions can build“user loyalty by incentivizing users with points, badges and special offers for performing positive actions on your site.”

VISUALIZING THE NUMBERS
Greg Silverman, CEO of Concentric, said big data is good, but can be limiting. He said numbers just for number’s sake can only take you so so far. But the next wave of data is likely to include visualization.

“The digital visualization masters will be able to craft narratives that will add to the overall potential impact for big data,” he explained.

Silverman when creative presentations work hand-in-hand with analytics, the outcome is near magical. He said big data is moving toward simulation, in that companies will be able to plug the data into models that can allow for risk assessments to upsides and downsides.

Duncan McNaughton, chief merchandising and marketing officer at Walmart U.S., spoke the group at the end of the day. He said points that resonated with him were the “what matters to me” mindset of today’s shopper.

“It’s not about the masses any longer, and we are a mass retailer, which is not going to change,” McNaughton said. “We will continue to meet our customers where they are as a mulit-channel retailer that looks at data holistically, in real time, and we hope to convert that into strategies that help us sell more stuff.”

He said Wal-Mart is a good fast follower, but that isn’t not good enough today.

“We have to be out in front of the curve, something we are working on nonstop,” he added.

McNaughton said the obvious question of the day was Wal-Mart’s first quarter earnings, which reflected a disappointing 1.4% decline in U.S. same-store sales – well below the company’s flat expectations.

He made no excuses for the missed estimate, but did explain several factors that played a role in the negative comps. As discussed in the company’s earnings report, he reiterated that weather played a huge role in softer sales as did the $9 billion in absent tax refunds processed this year by the Internal Revenue Service.

“We continue to see our customers struggling, and don’t expect any real relief for them in the coming quarters,” McNaughton said. “Food inflation was near 0% in the recent quarter, which also led to a slightly lower drop in total ticket sales.”

In a rare panel discussion held Thursday (May 16), four senior management merchandisers for Walmart U.S. spoke candidly about the importance of communication in the busiest company on the planet.

The senior vice presidents participating included: Michelle Gloeckler, home business; Scott Huff,consumables; Gary Severson, hardlines and Ashley Buchanan, snacks and beverages. Tom Jensen, marketing professor at the University of Arkansas, served as the moderator during the hour-long discussion held at the “Shop” retail conference at the University of Arkansas on Thursday.

LOCALIZATION
There is hardly a hotter topic these days than “localization” with Walmart harkening back to the “store of the community” focus by bringing in more products unique to neighborhood areas. Gloeckler said having the right merchandise in stock is a very local thing.

“I can’t tell you how I hear it, when I go to Arizona and the stores are overrun with lawn mowers and there no lawns to mow. Grass seed and gardening plants in general have to be sourced with locality in mind. It would do us no good to have fire ant repellent in Minnesota, but it’s a must have in Louisiana,” she said.

Each store has its own Facebook page and after the long winter each store site posted a customized message as soon as the spring plants arrived.

Severson said fishing has been a somewhat expensive partnership to do on a store-by- store basis, but well-worth the effort.

“We have to keep abreast of what is happening in the local waterways in any particular area to make sure we have the right bait in stock. Sometimes we have big data to help and in other products categories, we don't,” Severson said.

Buchanan added that for his team, localization means figuring out what the customers want making sure it’s on the shelf. Gloeckler said Walmart.com is a great testing ground for small to medium size suppliers for home products. She said the supply chain is easier to maneuver with online offerings.

“The top sales item of Walmart.com each week will usually end up with a 2,000-plus store count ... the next new modular,” she said.

STORE EXECUTION
Stores with sparsely stocked products have been widely discussed in the media in recent weeks, and the panelists were asked to elaborate on how their merchandise teams work with store operators to improve in-stock percentages that keep customers happy.

Gloeckler previously worked in operational management and gave two examples of how the home office lay-out center was making the job of store operators to complicated.

“We were having stores display 88-cent spatulas and spoons on individual pegs, these displays looked awesome in the lay out center, but totally required too much labor. We opted to dump into a bin and put one 88-cent price on the assortment. A similar miscue happened with $2.88 throws, that we sell a ton of. We asked that they be stacked by color, but again not in-line with store efficiency models. Now you will see them in dump bins with the $2.88 price on there,” she said.

She said the customer is No. 1, and the store operator is No. 2.

“As merchandisers and home office operations we have to think about in-store efficiency, because we can make it impossible for our store associates to keep up,” Gloeckler added.

As item counts go up, she said it is imperative to keep store efficiency models in mind at all times. Huff said managing the level of inventory in the building is a critical component to the overall store execution.

“Our associates can’t touch inventory more than once, or the labor metrics quickly deteriorate. It puts store operations out of balance and execution slips,” Huff added.

Severson said one major gaffe in the past has been ordering late, putting pressure on suppliers to fulfill in a rush and potentially missing the modular window. He said a concerted effort has gone toward doing a better job in replenishment orders that helps to ensure the product gets to the floor in the optimal time window.

Buchanan said his team has redrawn modulars that better match demand. He said when they took a deep look inside they found displays where 25% of the product wouldn’t make it through the weekend, which meant workers had to spend too many hours restocking.

He said the now the metric is that 85% of the display needs to sell out within two weeks, which is much better store efficiency models. Huff said the retailer will invest in more labor when sales justify it, likewise declining sales will meet labor reductions. He said it is a delicate balance between inventory and the labor necessary to make a store run optimally.

“Our store managers can tell you at what level those labor and inventory efficiencies breakdown, They have it down to a science,” Gloeckler said.

HEIGHTENED TRANSPARENCY
About 18 months ago, Wal-Mart decided to integrate syndicated data from Nielsen and NPD Group into its business processes after several years of going it alone. The merchandising executives said the data has brought a whole new level of transparency to the retail universe.

“It helped us quickly get up to speed, but it has also helped our competitors. Historically we have always done very well in flea and tick repellant, and this year everyone, even retailers who have never sold it before has it. Competition can see what your doing and how well you are doing it,” Huff said.

Severson adds that having the big picture that syndicated data provides, such as market share and price competitiveness, has helped the retailer engage better with its suppliers.

“I don’t have Nielsen Data but in about half of my categories I have NPD data. It has helped us identify gaps in our assortment, measure market share and it brings a transparency that is needed.

“We had one category that running positive comps that we thought was doing fine, but it turned out we were losing market share, which brought up a whole new conversation,” he said.

Gloeckler said she was skeptical of the data at first, because she does not have it in all of her product categories.

“We found QVC and HSN was a fierce competitor on really high end household appliances, that do best in an extended air-time demonstration. This includes $300 blenders and high-dollar vacuums. It was a blind spot to me, until we got the syndicated data. I may not offer those products in store, but Walmart.com is a whole new ballgame and we are doing some of that because we want those sales too,” she said.

The merchandisers said the future is bright and changing all the time as technology becomes more integrated into daily routines. They said it is a market share game, as there is no indication of increased consumption coming anytime soon.

“We will continue to build trust in our low price strategy, in hopes that customers will want to save money where they can,” Buchanan said.

The Jones Center announces the opening of a new expanded fitness center in Springdale. A formal grand opening is set for Thursday (May 23) at 11  a.m.

The new fitness center was made possible through a number of major supporters including The Walton Family Foundation and Tyson Foods.  In conjunction with the opening ceremony there will be a presentation of a special donation from the Northwest Arkansas Dr Pepper Snapple Group, Walmart/Sam’s Team and Good Sports, proceed for new equipment.

The family fitness center was recently relocated to the main level of  the Jones Center facility to expand its size after being sited in its original location on the lower level since 1995. 

It will feature all new equipment including 13 pieces of cardiovascular and six strength training machines, dumb bells, mats and flat screen televisions. 

“We are delighted to be able to offer improved fitness opportunities for our membership and guests.  We are very grateful for all of the regional support we have received for this project.  The Walton Family Foundation has funded the purchase of much of the fitness equipment, and Tyson Foods provides substantial operating funds.  In addition, the timing of a very generous fitness equipment donation from the Northwest Arkansas Dr Pepper Snapple Group - Walmart/Sam’s Team and Good Sports couldn’t have been better.  We learned of the gift at the beginning of the new fitness center expansion planning process,” said Ed Clifford, President and CEO of the Jones Trust.

In December 2012, the Walton Family Foundation announced a three year grant of $1 million annually for capital improvements and deferred maintenance for Jones Trust properties.  

In addition to fitness center equipment, additional improvements at the Jones Center will include building control replacement, cooling tower improvements, and chiller upgrades.

In November,  the local Dr Pepper Snapple Group Walmart/Sam’s Team nominated the Jones Center as the recipient of the Good Sports fitness equipment donation. 

Donations for the new Fitness Center include a cable crossover machine, medicine balls and rack, weight benches, dumbbell rack, and a number of rubber encased dumbbells of various sizes.  In addition, the Center received gymnastic equipment including several mats, a 12 foot practice beam, split donut, and KiDinastics turning bar, equipment important for the upcoming new youth gymnastics programs.

“Getting kids off the sidelines and into the game is the central aim of Good Sports. Working collaboratively with the Jones Center and Dr Pepper Snapple Group Walmart/Sam’s Team over the past few months, we have learned so much about the important recreational and fitness opportunities The Jones Center offers residents living throughout Northwest Arkansas. We are happy to contribute a donation of gymnastics and fitness equipment to assist The Jones Center in laying the foundation for a healthy, active community,” said Melissa Harper, CEO of Good Sports.

Michael Kirk, director of recreation of the Jones Center, said the expanded fitness center is important as their programs strive to get children and adults in Northwest Arkansas to become more physically active and fit.

“In addition, we are pleased to announce we’ll be offering Zumba, Yoga and Water Aerobics classes. Obesity is a major issue in the region and facilities and programs like ours play an important role in its prevention,” Kirk said.

The number of unemployed in Arkansas fell by almost 3,800 in April but the size of Arkansas’ workforce and the number of employed continues to move in the wrong direction.

Arkansas’ jobless rate was 7.1% in April, down from March and just slightly below the 7.3% in April 2012, according to the Friday (May 17) report from the U.S. Bureau of Labor Statistics.

April marks 51 consecutive months that Arkansas’ jobless rate has been at or above 7%. April also continued a trend in which the jobless rate improves but declines in the size of the workforce and number of employed point to ongoing weakness in Arkansas’ economy.

The number of employed in Arkansas during April was down an estimated 27,531 compared to April 2012, but the number of unemployed fell from 98,937 in April 2012 to an estimated 95,154 in April 2013.

The workforce size shrank from an estimated 1.362 million in April 2012 to 1.33 million in April.

Arkansas’ annual average jobless rate fell from 7.9% during 2011 to 7.3% during 2012.

ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during April was an estimated 252,200, up from March number and ahead of the 242,000 during April 2012.

Manufacturing jobs in Arkansas during April totaled 155,600, down from the 155,800 in March and below the 156,500 in April 2012. Employment in the once booming manufacturing sector fell in 2012 to levels not seen since early 1968. Peak employment in the sector was 247,300 in April 1995.

Government job employment during April was 216,000, up from 215,800 in March and below the 216,400 during April 2012.

The state’s Education and Health Services sector during April had 175,600 jobs, up from the 175,400 during March and up from 171,300 during April 2012. Employment in the sector is up more than 25% compared to April 2003.

Arkansas’ tourism sector (leisure & hospitality) employed 102,300 during April, up from the 101,600 during March and less than the 102,900 during April 2012. At a revised 103,700, January 2013 marked a new employment high in the sector.

The construction sector employed an estimated 46,400 during April, up slightly from the 46,300 during March and below the 48,200 during April 2012. Employment in the sector is down almost 14% from April 2003.

It’s certainly not a popular move with potentially hundreds of employees in the Fort Smith region, but officials with Rheem and Arkansas Best Corp. recently said they will close their defined benefit pension plans.

In the case of Fort Smith-based Arkansas Best Corp., the change is only for the nonunion plan. Arkansas Best, which is a transportation company whose largest subsidiary is less-than-truckload carrier ABF Freight System, made the announcement on May 17.

“Effective July 1, 2013, the Plan will be frozen with the result that the accrual of future benefits under the Plan will stop. Retirement benefits earned by participants through June 30, 2013 will be preserved,” noted the Arkansas Best statement. “In accordance with legal requirements applicable to pensions, the Plan changes will not impact the vested pension benefits of retirees or former employees. Active employees participating in the Plan will become eligible for the discretionary defined contribution plan effective July 1, 2013.”

According to David Humphrey, vice president of investor relations and corporate communications for Arkansas Best Corp., there are about 3,700 nonunion employees at the company. The company has about 11,250 total employees, with 67% being union members.
 
“All nonunion employees who have joined our company since 1/1/06 have already been in the discretionary defined contribution plan, so this wouldn’t affect them,” Humphrey explained in an e-mail statement. “As we mentioned in the press release, the active employees participating in the defined benefit pension plan, whose benefits are being frozen, are now eligible to join that same discretionary defined contribution plan.”

Humphrey also said the pension change is not related to contract negotiations with the International Brotherhood of Teamsters. Officials with ABF and the Teamsters announced May 3 that they reached a tentative agreement on a five-year labor contract.
 
“This action is not related to the Teamster agreement, but it is another sacrifice being made by our non-union employees,” Humphrey said.

John Taylor, senior vice president of Sterne Agee in Fort Smith, said Arkansas Best and Rheem are simply part of a long line of companies that have moved away from defined benefit plans.

“Defined benefit plans are dinosaurs. Frankly I’m surprised they haven’t already done this,” Taylor said.

The defined benefit plans essentially guarantee a set pension amount upon retirement. With the combination of fewer participating employees, historic low interest rates and people living longer, the defined benefit plans have become a huge financial burden on companies and governments. Because pension contribution formulas are based on interest rate revenue, low interest rates require more money to be put into pension plans.

“So what you have is corporate America saying that in this low interest rate environment, and with people living longer, we can’t afford to do this and still be competitive,” Taylor explained.

Taylor said ABF is at a “huge cost disadvantage because it competes with companies who are non-union” and also do not have defined pension costs. And although he understands the decisions by Arkansas Best and Rheem to move away from a “vestige of a previous corporate culture that is no longer sustainable,” he does sympathize with employees who will see their retirement plans change.

“If I was one of those employees, I’d be ticked off too. ... But I do think it speaks well of these two companies that they’ve held on to it for so many years,” Taylor said, adding that such moves are also part of trend to shift responsibility for personal finances back to the individual.

Taylor reminded that the defined benefit contributions played a big part in the bankruptcy of several California municipalities.

A December report from the U.S. Bureau of Labor Statistics said the “dramatic shift” from such plans began in the 1980s.

“This shift was away from traditional defined benefit plans and towards portable defined contribution plans, such as the popular 401(k),” noted the BLS report. “Reasons for this shift were due, in part, to costs and flexibility for both employers and employees. Employer contributions required for defined benefit pension plans can fluctuate based on plan investment returns. By comparison, employer costs for defined contribution plans are often based on a fixed formula that matches employee contributions.”

Macy’s, General Motors, NBCUniversal/Comcast, American Airlines and Verizon are just a few of the high-profile companies to have ended, frozen or otherwise changed their defined benefit pension plans in recent years.

Wal-Mart launched a new state initiative called “Arkansas’ Own” to promote Arkansas vendors doing business with the retail giant and to encourage more shoppers to buy local products made in the Natural State.

The move is part of a 10-year, $50 billion commitment by Wal-Mart to onshore manufacturing in the U.S.

“There are 1,700 unique products made in Arkansas that are sold in Wal-Mart stores,” said Arkansas Economic Development Commission director Grant Tennille at a Little Rock Wal-Mart store appearance to promote the new endeavor. “Probably more than 85% of those are sold in Wal-Mart stores nationwide. We are highlighting this to encourage other Arkansas manufacturers to seek vendor relationships with Wal-Mart.”

Wal-Mart has about 100 supercenters, discount stores, neighborhood markets and express stores in Arkansas.

The new branding campaign will feature in-store signage that features the logo

“Arkansas’ Own” around product displays and throughout store aisles.

Wal-mart Vice-president for Home, Michelle Gloeckler, said the “Arkansas’ Own” marketing initiative originated from an idea at a local store in state.

“Our local leadership team – Ashley Taylor, who is our regional vice-president for all the stores in Arkansas – had a great vision for ‘Made in the U.S.’ and decided to take it one level down and said let’s do it right here in our stores because we have fantastic products in Arkansas,” said Gloeckler.

She added that while Arkansas was first to market local products in this manner, other states may adopt the concept.

“We’re pretty competitive so you never know,” Gloeckler said.

Several sources have told The City Wire that as many as 60 people have been laid off at Golden Living’s administrative center in Fort Smith, with the company acknowledging only that employment has been “appropriately aligned” at the facility.

The number of people laid off ranges between 40 and 60 according to information from the sources. But even with the layoffs, employment at Golden Living’s (formerly Beverly Enterprises) administrative center has grown by more than 36% between May 2013 and March 2011.

Kelli Luneborg, public relations director for Plano, Texas-based Golden Living, said employment changes were made in Fort Smith.

“Our company and our industry are facing multiple challenges in today’s healthcare system — from new government policies to changing customer needs and expectations,” Luneborg noted in a statement. “In March 2011, the Golden Living family of companies began implementing a transformational plan to enable us to grow and be successful in this changing healthcare environment. We have made a number of alignment changes in our field operations and as such, we have appropriately aligned our Administrative Center to support this transformation.”

Luneborg said employment at the Fort Smith admin center has grown from 675 in March 2011 to 923 people as of May 20.

The company announced in March 2011 that it planned to add at least 200 jobs at the Fort Smith admin center as part of a consolidation plan. The jobs will consolidate most of the company’s billing for its various subsidiaries in the 5-story, 318,000-square-foot Fort Smith building. At the time, Golden Living President and CEO Neil Kurtz said the jobs will come from company offices in Atlanta, Birmingham, Ala., Milwaukee, Pittsburgh and Richmond, Va.

A more than $1.5 million incentive package from the Arkansas Governor’s office and the Arkansas Economic Development Commission and a smaller incentive from the Fort Smith Regional Chamber of Commerce helped secure the jobs.

Golden Living also announced in March 2011 that it would move its headquarter operations and executive management teams to Dallas (Plano).

COMPANY HISTORY
The Fort Smith building, completed in the late 1990s as the new corporate headquarters for Beverly Enterprises, sits on a 60-acre campus. Beverly Enterprises moved in May 1990 its corporate headquarters from Pasadena, Calif., to Fort Smith. The first building Beverly occupied in Fort Smith was part of the strip mall in the rear of Central Mall.

In 2005-2006, Fillmore Capital purchased Beverly as a friendly bidder in what began as a hostile takeover play by Alpharetta, Ga.-based Formation Capital. The deal was valued at $2.2 billion, with about $1.8 billion going to shareholders.

On July 1, 2009, the company announced it had sold all of its nursing homes in Arkansas.

Much has been written about the convergence of technology and the act of shopping -- a behavior that dates back some 10,000 years to the ancient Persian empire.

And while no one has a crystal ball to clearly see the future, most analysts agree changes in the shopping landscape have barely reached the tipping point as technology collides head-on with the brick and mortar world.

The Futures Company and Kantar Retail recently released a study that closely examined how technology and changing shopper attitudes are reshaping retail across the planet.

The first observation was commerce is everywhere in today’s connected world. This is a stark difference from the traditional linear habits from past generations where consumers progressed in a beeline from awareness to purchase.

With the explosion of social technology consumers have many more touch points and opportunities to glean information and testimonials from their friends that can impact shopping behavior. And mobile technology allows for price comparisons and digital couponing from anywhere there is connectivity. These two changes have morphed the historical shopping behavior from the linear beeline into a broader, more complex purchase dynamic.

Kantar analysts said it is mistake to think this phenomenon is restricted to richer, affluent markets because cheaper mobile technology as turned retail in emerging markets on its head.

GLOBAL CONNECTIVITY
Some 140 million Chinese have made purchases through online channels. In Brazil, a courier company Direct Express makes 40% of its deliveries in non-affluent areas, according to the report.

Wal-Mart Stores Inc. continues to invest in e-commerce around the world and released the several stats during last week’s earnings call that help support the study findings.

“We are excited about the global capabilities of our e-commerce businesses abroad. We are strengthening and expanding in the key markets of the U.K., Brazil and China,” said Doug McMillon, CEO of Walmart International.

He said during the recent quarter Asda in the U.K. completed the rollout of Wi-Fi across its stores to enable a better smart device shopping experience. In addition, Asda added its grocery (Click and Collect) offer in approximately 100 stores. Asda also significantly expanded grocery home shopping capacity by opening a third dedicated online fulfillment center in Nottingham, providing increased accuracy, efficiency and delivery options. Customers can tap into 20,000 additional delivery slots per week.

McMillon said Asda’s continued focus on offering a convenient shopping experience for customers drove strong online sales -- up 16% -- in the first part of 2013, a bright spot in an otherwise tepid economic climate.

He said in the recent quarter Brazil showed strong e-commerce growth, as total online sales rose 40%, helping to propel the walmart.com.br site to the heaviest traffic e-commerce site in country.

One of the more exciting opportunities for Walmart International is the recent acquisition of Yihaodian, one of the fast-growing ecommerce businesses in China.

“We now have a platform to compete in a market with broadband penetration that has exceeded the U.S. Yihaodian provides consumer goods on a same-day basis in Tier 1 cities: Shanghai, Beijing, and Guangzhou.

“We grew market share already this year in e-commerce in the U.K., Brazil and China, and the integration of technology into our business is a key for future growth. We will expand our successes and learnings from the U.K., Brazil and China into other markets such Mexico, Japan and Canada,” McMillon said.

SHOPPER PERCEPTION
The study revealed consumers are more value-conscious, seeking quality as they are often squeezed for both money and time.

In this age of transparency consumers want superior products, made responsibly at the lowest possible prices. They want the option of home delivery or pick-up the same day at little, to no added costs, which creates quite the challenge for big retailers.

Kantar notes some of these demands drive down margins and reduce basket sales. This means it’s imperative for big box and other retail operators to find imaginative ways to match shoppers’ desires for value, assurance and quality. 

“Simply put, retailers will have to be more clever,” the study notes.

RETAIL OPPORTUNITIES
The Kantar report spotlighted several ways brick and mortar retailers can leverage their real estate assets and benefit from the changing shopper demographics.

Keeping an eye on changing demographics is a must for retailers. While that certainly requires a lot of energy and investment for future generations, one German supermarket chain, Kaiser’s, has opened a branch in Berlin that is specially adapted for older shoppers.

The report notes Kaiser’s has brighter lighting, non-slip floors, steps to access shelves and magnifying glasses for reading labels.

Another convenience store chain in South Korea is wooing females with its magenta and pink stations and elaborate powder rooms.

Kantar analysts said as digital technology is tearing down the walls of a store, successful retailers will have to tear down the walls of traditional retail mindsets that go well beyond the best price on any given day.

CLEVer TAKEAWAYS
The study breaks down the bare essentials for retailers in the future into four musts: Convenience, loyalty, experience and value (CLEV).

Reinventing convenience is already happening as brick and mortar stores and e-commerce push the boundaries for same-day or next-day delivery options.

The convenience store is no longer just a certain segment of the retail world because all retailers are being held to the high convenience standards that must include: quick service, free pick-up for online orders, competitive prices for in-store and ability to get products delivered same-day or next day if it’s out-of-stock.

Wal-Mart offers site-to-store, which means consumers can order online and pick up at the nearest store, often same-day or next-day.

In France, the “Drive” model is popular that allows shoppers to order groceries online and then pick up the boxed order at a “Drive” location. According to Kantar Worldpanel, some 2.3 million French households visited a Drive location last year, which is expected to reach 4.5 million by 2015.

Redefining loyalty in a way that is personal will be key for retailers going forward, according to the report.

This means retailers will need to have shopper-centric frame of mind, which is possible with the use of big data to target shopper attitudes, preferences and motivations.

Target does a good job building loyalty with its “Redcard” incentives, according to Kantar analyst Leon Nicholas, who recently said these types of loyalty programs defend against price competition with other big boxes like Wal-Mart.

He said when a Target shopper goes into a store to buy apparel, but also steps across the aisle to buy food or some other consumable, they won’t necessarily look at the published price, because that is not what they are paying as Redcard member.

Re-imagining experience has software technology geeks salivating at the possibilities for ways to make shopping trips memorable. This can be in-store mobile applications that direct shoppers to the items they want. Or it could be digital coupons hitting consumer email boxes when a price comparison is made in-store.

Kantar warns that retailers will need for these applications to be flawless in execution, which means lots of testing is necessary.

Lastly, repositioning value is key for retailers in the future as shoppers will look beyond the price of an item, as they want to know they have made a “smart decision”.

Kantar said smart equals price, service and quality.

The study notes Safeway is well on it's way to helping shoppers find that "smart" mindset.

Safeway's “Just for You” pricing actually leverages online and mobile applications to take pricing out of the pubic domain and tailor it privately to the individual shoppers based on their profile and purchase history, the study states.

Safeway went one-step further to link “Just for You” to its clubcard program that give discounts to regular customers. The grocer estimates these savings to range between 10% and 20%. Since the program launched in 2012, more than 5.4 million households have signed up. “Just for You” represents 45% of Safeway’s sales base.

Tyson Foods has formed an independent farm animal well-being advisory panel to provide guidance to the company's FarmCheck program, an initiative designed to ensure responsible care and over well-being of farm animals.

The advisory panel will help guide research priorities and suggests ways to improve the audit program. Tyson Foods launched the FarmCheck program initiative in October 2012. The program allows the company to audit the treatment of livestock and poultry suppliers. Tyson has 12,000 suppliers consisting of 5,000 poultry farms, 3,000 hog farms and 4,000 cattle farms.

“The FarmCheck program continues our long-standing commitment to responsible farm animal care,” said Donnie Smith, president and CEO of Tyson Foods. “This Advisory Panel is a diverse group of experts who bring valuable perspective on animal well-being. They will help shape the future of the program and ensure its effectiveness.”

Panel members include:
• Ryan Best, 2011-2012 president, Future Farmers of America
• Anne Burkholder, cattle feedlot owner
• Ed Cooney, executive director of the Congressional Hunger Center
• Gail Golab, Ph.D., DVM, director of American Veterinary Medical Association’s Animal Welfare Division
• Temple Grandin, Ph.D., professor of animal science, Colorado State University
• Karl Guggenmos, dean of culinary education, Johnson & Wales University
• Tim Loula, DVM, co-founder and co-owner of Swine Vet Center in St. Peter, Minn.
• Miyun Park, executive director, Global Animal Partnership
• Ashley Peterson, Ph.D., vice president of scientific and regulatory affairs, National Chicken Council
• Richard Raymond, M.D., former U.S. Department of Agriculture Undersecretary for Food Safety
• Janeen Salak-Johnson, Ph.D., associate professor in Animal Sciences, University of Illinois
• Janice Swanson, Ph.D., chair and professor, Animal Behavior and Welfare, Michigan State University
• Bruce Webster, Ph.D., professor of poultry science, University of Georgia

The Northwest Arkansas StartUp Cup is launching its 2013 competition, organizers announced recently. There will be several changes to the second year of the competition as organizers fine-tune the process.

StartUp Cup started in Tulsa, Okla.

In 2007 and in the last two years has licensed other regions across the globe to offer their own StartUp Cup. Northwest Arkansas received the first license and is now part of a global network of StartUp Cup business model competitions.

Tonya Nkokheli, president of Innovative Markets, which holds the NWA StartUp Cup license, is the chief event coordinator. She said there will be several changes to this year’s competition including more mentoring, an enhanced network of resources and most notable for some, the introduction of prize money for the top three winners. The winners of last year’s NWA StartUp Cup won free professional service hours and additional free mentoring.

Nkokheli is embracing the team approach for this year’s competition including seeking interested committee members to fill volunteer roles including project manager, website and social media support and sponsors. Several of last year’s winners have also committed to serve on the committee.

By establishing a stronger list of resources in all industries, the NWA StartUp Cup can help all participants succeed even if a business does not advance into the finals, Nkokheli said.

“Entrepreneurs may not make it through to a final round, but it’s important to have a reference or referral list to continue on,” she said.

The timeline for this year’s NWA StartUp Cup is also slightly accelerated. It begins June 4 with the application process opening. Winners will be announced during the Global Entrepreneurship Week in November.

There will be two information sessions about the NWA StartUp Cup:
· 6 p.m., Tuesday, May 21 at The Iceberg Co-Working Space in Fayetteville

· 6 p.m., Tuesday,  June 4 at the University of Arkansas Global Campus in Rogers

Interested businesses or potential committee members, coaches or mentors are invited to attend one of the meetings to learn more about NWA StartUp Cup. The meetings are not required to enter the competition, but entrepreneurs will find them useful, Nkohkeli said. The meetings will have essentially the same information. Two are being hosted to give more chances for participation.

Tyson Foods Inc. held a military summit on Monday (May 20) during which recently separated soldiers toured the company and interviewed for jobs. The summit is part of the company’s commitment to expand its military hiring efforts, according to the release.

“I know from experience that military veterans are well-trained and have an excellent work ethic,” said Alexa O’Leary, senior military recruiter for Tyson Foods and a U.S. Army reservist. “Our company appreciates and supports our nation’s veterans and we’re always looking to hire more.”

Tyson Foods is a leading supplier of food to the Defense Commissary Agency as well as a leading supplier to the Defense Logistics Agency’s troop feeding program. Tyson has had a contract to feed the U.S. military and their families for more than 50 years.

The company, along with other military commissary suppliers in late 2011, committed to hiring more veterans and military spouses over the next two years. Since that time, Tyson Foods has hired more than 1,600 veterans.

The company also recently established a special “Camo’ to Khakis” human resources team to increase the hiring of veterans and their spouses. (Many Tyson team members wear khaki uniforms.) This effort has included increased involvement in military job fairs and the addition of a military hiring section to the company’s corporate website.

More than 30 soldiers were taken on a poultry plant tour and also visited the corporate headquarters where they met with the company’s senior leadership. In addition, each candidate was interviewed for open management positions in the areas of operations, sales and marketing, purchasing, and transportation. Video of the event can be seen here.

“We hope to extend job offers to many of these men and women because they possess specialized and leadership skills, and they know how to perform under pressure,” O’Leary said. “These men and women represent the very best our country has to offer.”

Tyson provides differential pay for all employees called to active military duty, making up the difference between military compensation and pay they normally receive from Tyson. Since Sept. 11, 2001, Tyson has provided $2.2 million in differential pay to more than 400 employees.

“Military men and women put on the uniform of their respective service, raise their right hand, and willingly commit to defending our country,” said Melissa Lee, Tyson corporate counsel and current U.S. Army Reservist. “When these same individuals put on a Tyson khaki uniform, they are making another commitment -- to contribute to and protect our nation’s protein supply. It’s an easy and honorable mission shift.”

Wal-Mart Stores Inc. is being taken to task by institutional shareholders this week in a Delaware Chancery Court in Wilmington. Round one went in the favor of the investors, according to Bloomberg News covering the court proceedings.

The California State Teachers’ Retirement System, the New York City Employees’ Retirement System and the Indiana Electrical Workers Pension Trust Fund brought suit against the retail giant for financial damages and breech of fiduciary responsibility relating to the bribery allegations within the company’s Mexican business unit.

The investors contend Wal-Mart is hiding e-mails and other relevant documents about the Mexican bribery allegations to protect directors, but Delaware Chancery Court Judge Leo Strine ruled the documents must be turned over to the court as they are not covered by attorney-client privilege as Wal-Mart attorney’s argued.

Wal-Mart Stores Inc. does comment on pending litigation.

The case: Indiana Electrical Workers Pension Trust Fund IBEW v. Wal-Mart Stores Inc., CA No. 7779-CS, Delaware Chancery Court (Wilmington).

It seems to be the subject that few want to talk about, yet behind the scenes retailers actively pursue means to protect their assets from theft and damage coming from a variety of sources including their own employees.

“The most recent estimates for losses from retailers is approximately $35 billion, of which 44% or $15.4 billion is attributed to internal / employee dishonesty and 36% or $10.9 billion is attributed to external shoplifting and organized retail crime (ORC) theft,” said Garth Gasse, the director of asset protection at Retail Industry Leaders Association (RILA). “These estimates are from the 2011 survey, the most recent available, however, many believe these estimates are on the low side.”

The concepts of loss prevention and asset protection are often interchanged although technically they are different philosophies. Asset protection is more global and speaks more to protecting the company’s overall assets, he said.

RILA has many resources available to member companies including the recent RILA Retail Asset Protection Conference; five functional asset protection committees; training and seminars for leaders; asset protection leaders having the opportunity to develop relationships with others within their industry to discuss ideas and strategies; and the ability to help identify legislative issues that retailers face in regards to asset protection and loss prevention.

EMPLOYEE THEFT
Retail officials agree that there are several actions retailers of any size can take to reduce employee theft.

Retailers have many different approaches to protect their businesses from employee dishonesty. Initially, a thorough interview process by multiple supervisors or hiring personnel ensures the ideal candidates are offered employment,” Gasse said. “The next step is the training process and ensuring that loss prevention standards and policies are thoroughly communicated to the employees.

“Having a thorough understanding of the proper procedures and a detailed onboarding process, most of these employees will make good decisions while employed at the respective companies. Many other tools and resources do exist and are utilized by different retailers,” he said. “These include background screening, databases, repetitive procedural training and preventative standard operating procedures.”

Jeff Feldman, a consultant who works with retailers regarding loss prevention and a private investigator for retail theft investigations, said that the incidents of employee theft “wax and wane.”

He agreed that the economy lends itself to increased employee theft, but also said that retailers need to take more steps to protect themselves.

“It starts at the human resources end,” he said, adding that hiring qualified employees who pass background checks and offer solid references is vital.

Another common problem is that retailers fail to upgrade their technology that could help abate theft.
The biggest problem, however, is poorly trained management that does not follow up with the good employees who are hired. If there are potential concerns, many managers are too leery of approaching an employee to discuss the issue.

Feldman agreed that many retailers don’t like to talk about the problems they face with loss prevention.

“People just don’t like to talk about it when they are victimized,” he said. “It’s not something they want to advertise. Plus they don’t like to share those losses with employees because an opportunistic employee might take advantage.”

RETAIL RESPONSE
The City Wire contacted several retailers for this story and all but one declined to comment or did not respond. Wal-Mart Stores, Target and Dillard’s declined to comment and calls were not returned from Harp’s Foods.

Dollar General, which is prominent in the Northwest Arkansas area, did respond, but did not go into specifics.

Although he could not share details about the company’s plans to abate shoplifting and employee theft, spokesman Dan MacDonald agreed that retailers consider loss prevention and asset protection to be a major issue.

“We’re very passionate about keeping our low prices,” MacDonald said. “It’s important to do anything to reduce shoplifting and theft.”

Another growing trend is that retailers are establishing their own internal investigative units and those divisions work closely with law enforcement to investigate, prevent and prosecute retail crime including shoplifting of small items, organized retail crime and employee theft.

Bentonville Police Department Chief Jon Simpson said that Wal-Mart has had its own for many years and even convenience store chains such as E-Z Mart have their own investigative units.

“Wal-Mart has a pretty elaborate system right now,” Simpson said. “We might not know anything about (a situation) until they know they have enough to prosecute then they come to us. A lot is handled internally. Even the smaller chains are doing it more.”

If you’re determined to read only about clear signs of economic growth, you’d be well advised to avoid the American Trucking Associations’ freight index and the Cass Freight Index that measures North American shipments.

The Cass Freight Index for April fell 3.5% compared to March, and was 1.3% below April 2012 levels.

“North American shipment volume and overall freight expenditures both slumped in April, following strong showings in March. The drops are not unexpected given the slowing state of the economy overall,” noted Rosalyn Wilson, a supply chain expert and senior business analyst with Vienna, Va.-based Delcan Corp., who provides economic analysis for the Cass Freight Index.

Wilson said the pattern of starting strong only to fall back is becoming a recent trend, but the 2013 figures indicate a deeper decline.

“This month’s declines are significant because once again both the number of shipments and dollars spent have fallen below same month 2012 levels, and the number of shipments is even lower than the April 2011 level. This is indicative of the slow growth experienced since 2010 that has created a very narrow bounding range for each measure, with a small difference between the lows and the highs,” Wilson explained.

Cass uses data from $22 billion in annual freight transactions processed by its information processing division to create the Index. The data comes from a Cass client base of 350 large shippers.

HOUSING, MANUFACTURING SLIP
The American Trucking Associations’ advanced seasonally adjusted Truck Tonnage Index fell 0.2% in April after rising 0.9% in March. Compared with April 2012, the index was up 4.3%, which is the largest year-over-year gain since January of this year (4.7%). Year-to-date, compared with the same period in 2012, the tonnage index is up 4%.

“The slight drop in tonnage during April fit with trends from other industries that drive a significant amount of truck freight, such as manufacturing and housing,” ATA Chief Economist Bob Costello noted in the report.

Like Wilson, Costello also said overall economic shifts – factory output slipped 0.4%, housing starts down 16.5% – created weakness in the trucking sector.

“After rising significantly late last year and in January of this year, truck tonnage has been bouncing around a narrow, but elevated band over the last three months.” he said. “It is also worth noting that the year-over-year comparisons are much better than expected just a few months ago and I’m hearing good comments about freight so far in May.”

INVENTORY ADJUSTMENTS
Wilson reported that March and April saw a trend in which inventory levels were being adjusted downward.

“Businesses have been drawing down inventories for the last two months based on expectations that the economy will be lethargic,” she noted in her Cass report.

The “bouncing around” narrative from Costello holds true for Fort Smith-based ABF Freight System, one of the nation’s largest less-than-truckload carriers.

ABF tonnage levels during the first quarter of 2013 were up 6.7% compared to the same period in 2012. However, April saw a 2% to 3% decline in revenues based on several factors, included a dip in billed revenue per weight.

“Quarterly tonnage levels have fluctuated significantly in recent years. ABF experienced quarterly decreases in year-over-year tonnage per day from third quarter 2011 through third quarter 2012, which were influenced by ABF’s initiatives to improve account profitability and led to year-over-year increases in billed revenue per hundredweight for each quarter of 2012,” noted the company’s most recent 10-Q filing with the U.S. Securities and Exchange Commission. “In fourth quarter 2012, ABF experienced a slight increase in tonnage levels versus fourth quarter 2011. The first quarter 2013 year- over-year daily tonnage increase compares favorably to first quarter 2012 tonnage levels, which were 10.6% lower than the same period of the previous year.”

Rail shipments for the week ended May 11 are up 2.2% compared to the same week in 2012, according to the Stephens Inc. “Weekly Rail Update.” Year-to-date, the carload numbers are up just 0.9%.

“Overall, the increase in industry volumes was driven by intermodal (+3.9%) and petroleum & related products (+50.5%). Coal volumes improved slightly (+0.8%) and the largest decline came from grain (down 21.6%),” noted the Stephens report.

Northwest Arkansas has seen many changes in the past few decades, but for one small corner shop in downtown Rogers, it has been business as usual for decades and the cobbler working inside.

The first thing you notice when you enter Walter's Boot & Shoe Repair is the smell. The unmistakable scent of stained leather and shoe polish permeating from every corner of the classic "mom and Pop" shop, hits you in the nose like a George Foreman jab and snaps you back to a place that pre-dates i-phone apps and bio-degradable foot-wear.

The second thing you notice is the stern-looking man at the counter, his white hair slicked back. He's still looking good at age 90. His hand are stained black from the polish of too many shoes to count, with reading glasses dangling from his worn neck and his wife Dorothy at his side.

Most, if not all men Carl Walter's age are either knocking balls around the golf course, or living out their final days surrounded by nurses and oxygen tanks. These things never seemed to suit Walter, who still works at least 40 hours a week, 50 weeks a year in his shop, repairing leather shoes, belts, baseball gloves and other cobbler duties.

"I feel like if anything, working has given me more reason to live and it’s actually added years to my life," Walter said. "I thought I would be dead eleven years ago. My dad only lived to be 79, but I guess you can say I am blessed to have my health and to have my shop. This business is tough these days. It’s not like it used to be."

Walter’s shoe repair business is a family venture. He learned the trade from his uncle Henry Walter, who ran a shop in Salina, Kan. for more than 50 years. After serving in the armed forces and interning with his uncle and two cousins, Carl was able to open his own shop in 1947. His brother Clarence Walter is still running a shop in Long Beach, Calif., at the age of 82.

"I don't think either of us thought we'd still be working full time at this age, but sitting around the house all day isn't something my husband is cut out to do," said Dorothy Walter. "I worked for 50 years as a nurse and after that I figured I would enjoy my retirement. But when I started coming to the shop to help out, I started to like it. My favorite thing is chatting with the customers. Sometimes I even pray with them."

Soon after going into business for himself, Carl met and married wife Dorothy and had two kids (Sandra and Tim). Walter ran his shop in Kansas until moving the business to Rogers in 1983.

"We enjoyed our time in Kansas and once the kids were out of the house (Dorothy) and I wanted to fulfill our dream of building our own house on the lake," Walter said. "When we first moved to (Rogers) and opened up this shop, there were around 22 shoe repairmen in this area. Now I think I am about the only one left."

A quick Google search found one other shoe repair shop in Benton County and two in Washington County. Walter said some do large jobs with heavy leather like saddle work, which he no longer does.

While other local shoe repair shops have fallen by the wayside (nearly two dozen since 2000) Walter's business has found sustained success in a field that has seen most of the jobs outsourced to China or other foreign nations.

"Around the year 2000 the business changed. ... Nearly all of our shoes come from China now and they have a different method of shoe making which made it difficult for American's to keep the pace," Walter said. "It is a shame that so many jobs were lost in this transition. The biggest issue is the method in which the Chinese use to sew the sole to the shoe. A lot of the equipment used by guys in the states isn't made to repair a shoe made in China. But you have to keep up with the times."

Workforce statistics for 90-year-olds are virtually non-existent as the U.S. Census Bureau lumps population data in banded years, the oldest being 85 and up.

Walter is among 1.8 million men which comprise a tiny 1.2% of the U.S. population for just being alive at age 85. He and Dorothy are among 51,400 other Arkansans who are past age 85. There are no records for business owners or 90-year-olds who continue to work full-time.

Walter said he rarely takes a day off, but he and Dorothy do spend two weeks a year on vacation. The couple has traveled to seven different countries in Europe, as well as Canada and Thailand.

They also spent a summer visiting all 48 states in the continental U.S. One year Carl pushed for a extended three-week vacation, but could barely get though the trip for missing his shop, his wife said.

When Walter went to his last high school reunion he was just one of 12 men remaining from a graduating class of 130.

"Most of my friends are dead and were retired for twenty years before that, but I guess I am just not that kind of guy," said Walter. "I do love my job and I don't think I will be going to another high school reunion. ... They are getting sort of depressing."

Wal-Mart Stores Inc. is one of 19 retailers opting out of a $7.25 billion antitrust settlement with Visa and MasterCard over fees charged to merchants for processing credit-card transactions.

The Bentonville-based retailer released a statement on their position in July, which has not changed: The retailer remains disappointed in the antitrust settlement saying the deal encourages merchant rejections.

“It would allow credit card companies and big banks to perpetuate an unfair and broken system that costs all consumers,” Mike Cook, senior vice president of finance for Wal-Mart, said in a statement.

The settlement, estimated to be the largest-ever U.S. antitrust accord, has drawn criticism from trade associations and retailers contending that it grants the card companies too much leeway to raise rates.

The National Retail Federation said Tuesday (May 21)  it will oppose the settlement because it gives the card companies “legal blessing to continue their abuse of merchants and consumers indefinitely.”

Gap Inc., Lowes, Costco and Nike are among the retailers also rejecting the settlement.

An iconic building in downtown Fort Smith that has alternated between consideration for renovation and demolition will soon become the headquarters of Fort Smith-based Propak Logistics.

The historic and white tiled Friedman-Mincer building – also known as the OTASCO building – at the intersection of Garrison Avenue and Towson Avenue in downtown Fort Smith was built in 1911, and Steve Clark plans to give it a serious makeover more than 102 years later.

Clark, founder and president of Propak, finalized on Tuesday (May 21) the transaction to buy the property. With an acquisition and renovation estimate of about $2 million, Clark plans to convert the three-story, 24,000-square-foot building into offices for the about 40 employees of Propak. The company provides logistics, transportation and supply-chain management services.

The top two floors – each floor is roughly 8,000 square feet – will be Propak offices, with a use for the bottom floor yet to be determined. The two floors for Propak will offer room for growth, with Clark estimating the company could add 10-15 people in the next few years. Propak now has offices in a 9,000-square-foot space in the Arvest tower in Fort Smith.

Clark has watched several companies and individuals make a play for the deteriorating but historic property. He drives by the property almost every day during his work commute. And while the property is not the most economically advantageous choice for new office space, it gives him a chance to invest in “a city that’s been good to me.”

“With each building we see removed in that (downtown) area, it removes some of the heart of our history. ... So I see this as a preservation of a truly iconic building on an historic corner,” Clark explained during an interview prior to finalizing the deal.

Clark is hoping to move offices into the renovated space by June 2014.

The building recently came close to demolition. In 2009, developer Jimmy Meadows bought the building with plans for 14 apartments and ground-floor retail. Meadows had previously purchased and renovated the Davis Furniture building in downtown Fort Smith.

However, Meadows in 2012 told the Central Business Improvement District that the project was not economically feasible and he recommended that demolition might be the best option. CBID Chairman Richard Griffin suggested an independent review of the structure before authorizing demolition. It was a delay that has proven a good thing for fans of preserving historic structures in Fort Smith.

Fort Smith City Administrator Ray Gosack said he is grateful for Clark’s willingness to move downtown.

“It’s exciting that there is interest in developing that property, particularly with it being in a high-profile area,” Gosack said, adding that having at least 40 more people employed in the downtown area will be an added benefit. “It’s not only good news for preservation of that historic building, but good for downtown Fort Smith in general.”

Clark said he will seek tax credits for historic redevelopment, and plans on using a Fayetteville-based architect with Fort Smith ties because he “wants to create a buzz in Northwest Arkansas about what’s going on in Fort Smith.”

Clark wants to return the main entrance to the building’s front corner. He hopes to return the large glass panels to the bottom level. To do that and best retain the history of the building, he has traveled with architects to Cincinnati to look at some of the historic renovations in the city’s 28 separate national historic districts.

“Part of the issue for me is, ‘This is my home, and so how do I make a true preservation play ... How do we do this right in terms of that (history)?’” Clark said.

There is a lot of history with the building, according to Ben Boulden, Fort Smith native and author of “The Hidden History of Fort Smith, Arkansas.”

“It’s a real special building on the avenue. It has that triangular, mini-Flatiron (building in New York) appearance. ... The history includes being part of Texas Corner,” Boulden said.

In Boulden’s book, Texas Corner was plotted by Captain Benjamin Bonneville as a road to connect Fort Smith with Fort Towson in Indian Territory. At one time, the corner was a “rough street” with “undesirable families” and where gangs congregated to drink and raise hell.

Boulden said the building was part of several-year building boom on Garrison that included the Goldman Hotel and the First National Bank building. The Goldman no longer stands.

“What’s interesting is that those two buildings, First National and Mincer, also have that white tile brick,” Boulden noted, saying the white brick was preferred at the time because it was easier to clean.

In addition to office space and retail space, the building also housed a bowling alley in the 1930s and 1940s with the pins set manually by “pinboys,” Boulden said.

The building was also once home to the Oklahoma Tire and Supply Co. store (OTASCO).

Boulden, who was aware of the building’s poor condition and threat of demolition, was pleased to hear of Clark’s plan for the property.

“This is good news because we don’t need to lose any more historic architectural assets on the avenue,” he said.

Not only will renovation save a building on Garrison Avenue, Clark is hopeful it will be the first of several developments between the Avenue and south to Sparks Hospital.

“I would be disappointed if it wasn’t a stimulus” for improvements in that direction, Clark said.

When tragedy strikes, Wal-Mart is often one of the first on the scene to help as the retailer mans its own storm watch and disaster teams from its central command center at the Bentonville home office.

The retailer’s weather system is linked into The Weather Channel in a partnership deal, as Wal-Mart continually has one eye on the world’s weather at nearly all times.

The F-5 tornado that ripped apart Moore, Okla., on Monday (May 20) hit the retailer close to home, leaving behind a 17-mile path of destruction, 24 fatalities, 240 injured, hundreds homeless and thousands without power.

Wal-Mart said Tuesday (May 21) its two supercenter stores in Moore are open, but the company is still trying to make contact with all of its employees in that region. A Neighborhood Market in the region was damaged and remains closed, although the company is working to get it operational.

“While we feel very fortunate that none of our associates or customers were injured inside our two stores in Moore, we continue working very hard to make contact with all of our associates who live and work in the area to make sure they and their families are okay. Our primary focus right now is meeting the immediate needs of our associates, some of who have lost everything,” the retailer notes in a press release.

Wal-Mart sent teams from Arkansas, Kansas, Missouri and Texas into the areas to help staff stores so Walmart employees in the tornado-torn area can be with their families. The teams include crisis counselors to help with the overwhelming emotional needs right now.

“We send our deepest condolences to those who lost loved ones, and we are working on several ways to support the community. In the aftermath of any disaster, we understand that helping people and communities meet their basic needs is the first step toward restoring normalcy. With several residents and businesses affected by these devastating storms, we want to ensure our community has access to the things they need to recover,” according to Katy Cody, Wal-Mart spokeswoman.

Wal-Mart said it has pledged $1 million in cash and in-kind donations to help ensure the essential needs of residents are being met.

The retailer is directing truckloads of water, food and other basic items to the area to help the community during this difficult time as they work in conjunction with the Salvation Army, Red Cross and other agencies to monitor further ways to help.

Wal-Mart has five Sam’s Clubs in the area which have all stepped up efforts to help. Sam’s is temporarily waiving membership requirements to support residents and the communities impacted. The clubs are also establishing free power stations so residents with out power can recharge their mobile devices, laptop computers and other electronic devices.

More than 40,000 residents remained without power on Tuesday afternoon, according to Oklahoma Gas & Electric.

Early estimates of the storm’s damage top $1 billion as the F-5 tornado stayed on the ground for roughly 40 minutes. Moore, with a population of 55,000, is about the size of Rogers.

Gov. Mike Beebe on Wednesday (May 22) presented four Arkansas companies with the Governor’s Award for Excellence in Global Trade during an awards luncheon at the Governor’s Mansion. The award honors companies for their leadership in exporting goods and services throughout the world.

This year’s winners are:
• Agribusiness – Tyson Foods (Springdale)
• Small Manufacturer Exporter – Conway Machine Inc. (Conway)
• Medium Manufacturer Exporter – Alliance Rubber Company (Hot Springs)
• Large Manufacturer Exporter – Welspun Tubular (Little Rock)

“Arkansas’s exporting companies are ambassadors to the global marketplace,” Beebe said in a statement. “These companies understand that competing effectively around the world is good not only for their bottom line, but for our state’s economic health as well.”

This is the fourth year for the program which is co-sponsored by the Arkansas District Export Council, Arkansas Economic Development Commission, U.S. Commercial Service, and the Arkansas World Trade Center.

Judging criteria was based on factors such as most recent percentage of export sales to total sales, growth of export sales over the past three years, the company's goals and commitments internationally and the number of jobs saved or created due to the company's export performance if applicable.

Previous winners include Coleman Dairy, Little Rock; Trump Tours, Bentonville; Riceland Foods, Stuttgart; Amercable, Inc., El Dorado;  Cobb-Vantress, Inc., Siloam Springs; Weldon, Williams, & Lick, Inc., Fort Smith; Keith Smith Company, Inc, Hot Springs; Allen Engineering, Paragould; Power Technology, Inc., Alexander; Pernod Ricard USA, Fort Smith; and Keo Fish Farm, Keo.

According to Census Bureau data, Arkansas’s export shipments of merchandise in 2012 totaled $7.6 billion – an increase of 36% over 2011 totals. Arkansas’s largest markets in 2012 were Canada ($1.7 billion), Mexico ($845 million), China ($720 million) and France ($365 million). More than 14%  of Arkansas manufacturing workers depend on exports for their jobs.
 
1,627 Arkansas companies exported goods or services in 2012, and 78% of these companies were small to medium sized.
 
The Arkansas District Export Council is composed of business leaders appointed by the U.S. Secretary of Commerce. District Export Councils contribute leadership and international trade expertise to complement the U.S. Commercial Service's export promotion efforts through counseling businesses on the exporting process and conducting trade education and community outreach.

Chazlie Jones of Moore, Okla., has never been a loyal Wal-Mart fan, but a close encounter with tragedy during Monday’s horrific F-5 tornado has changed her mind.

Jones and her fiancé Thomas Brey were picking up their marriage license on Monday (May 20) when the deadly storm was brewing several miles away. She said they knew there was a storm threat, which is all too common in this time of year in the Oklahoma City area.

“We decided to go and get the kids, my 8-year-old daughter at her school and the baby at the daycare,” Jones told The City Wire in a phone interview. "The lines were long as parents were all trying to get their kids picked up ahead of the storm."

The clouds gathered quickly about 3 p.m. as the family headed home, some three miles away.

“We knew we needed to pull over, the sirens were sounding but there was no where to stop. Businesses were closed up and time was running out,” Jones said. “We saw a man standing at the door of the Wal-Mart Neighborhood Market waving people into the store, so we pulled into the parking lot, grabbed the kids and ran inside.”

She said they were calmly ushered to the meat cooler where roughly 65 people were gathered to wait out the storm.

“The store manager kept a watchful eye out the fire exit door and within minutes he herded us into the freezer. Kids, older folks and store workers were given butcher coats to wear inside the chilly freezer where we waited out the worst of the storm,” Jones said.

Adam Stutzman, the store manager at the Neighborhood Market, said the building began to shake, the sound of a loud freight train weighed heavily on their ears, skylights began to pop, as merchandise swirled about the store. He said the worst of the storm lasted about three minutes, before the calm set in.

“When we opened the outside door we could see a church roughly 20 yards behind the store was half gone and the worst of the devastation was about 100 yards away. We were very lucky to remain on the extreme edge,” Stutzman said.

Jones said Stutzman’s calm demeanor throughout the ordeal was incredible giving the magnitude of the storm.

“My fiancé is a disabled veteran serving two terms in Iraq, and a hero in my eyes, but that store manager is very much a civilian hero to my entire family,” Jones said.

Stutzman, humbled by the comment, said he didn’t do anything special, but just used common sense and preparedness training he has acquired as a lifelong resident of Oklahoma and his 16 years with Wal-Mart. The Neighborhood Market sustained minor roof damage during Sunday’s storm that hit Shawnee and Stutzman said he had roofers there to repair the damage when the storm hit on Monday.

“They were great helping us keep watch ahead of the storm. My entire team is to be commended for the job they did as well,” Stutzman said.

He hadn’t been back at the store long when the storm hit on Monday. Stutzman said he attended his son’s award ceremony at school at 2 p.m., and then drove his family home to get into their storm cellar.

“My wife asked me if I was going back to the store, and of course I was. I made it back and we started to get everyone inside around 3:30. We didn’t want to turn anyone out into the storm, so we stayed open as long as we could,” he said.

The Neighborhood Market closed after the storm so damages could be repaired and power restored. Stutzman said the store reopened about 10 a.m. on Wednesday (May 22).

Jones said they made it home fine and did not sustain any serious property damage, but the emotional wounds will be felt for years to come.

“My 8-year-old daughter lost a good friend in the storm and explaining that has been extremely hard. We’re a close community, our kids play softball together and we have become like extended family to many who have lost homes and loved ones. It’s hard,” she said.

Jones and Brey plan to marry on Saturday as scheduled.

Stutzman said for him it’s business as usual at the Neighborhood Market he has managed for eight years.

“We are glad we could we help," he said.