Wal-Mart said this week it will take unwanted iPhone, Galaxy S3 or other electronic gadgets in exchange for gift cards that can be spent in its stores or online. The big box giant joins Amazon, eBay and other retailers wanting consumers’ cast-off electronic gadgets, a mission that analysts said is two fold.

Wal-Mart’s “Gadgets to GIft Cards” program was announced less than a month ahead of the next iPhone release on Sept. 10. The retailer has continued to expand its smart phone offerings and subscription plans at a time when the broader electronic category is struggling.

Perhaps consumers who trade working phones will upgrade to a new phone purchase from Wal-Mart. They might even subscribe to Straight Talk, which is now compatible with iPhones and Android devices.

The company recently posted negative same-stores sales in its entertainment division. Bill Simon, CEO of Walmart U.S., said Thursday (Aug. 15) the sales in the entertainment category posted a mid single-digit negative comp for the quarter ending June 30.

“Our performance was pressured by soft results in both electronics and media and gaming. Mid single-digit industry deflation and softer discretionary spending continued to be significant headwinds for these categories, while the anticipation of new video game consoles caused further delays in spending for gaming,” Simon said.

He said while the retailer lost market share in its TV category during the quarter there was a bright spot in wireless sales. He said Wal-Mart is the number one handset retailer in unit share, according to NPD.

Analyst said the retailer’s move to accept a broad range of electronic gadget trade-ins will also provide the company with a rich data source from consumers who may or may not already be Wal-Mart shoppers. In the process of completing a trade with Wal-Mart, consumers will give the retailer valuable data such as brand allegiance, personal information such as address and even credit history for those consumers who choose the “pay me now” option.

On the surface the Wal-Mart program appears similar to others except that the retailer will grant the seller credit on the honor system, providing the seller can pass a credit check first.

The program accepts a wide range of makes and models of iPhones, smartphones, tablets, MP3 players, game media, laptops, GPS devices and cameras. Popular Apple products are wanted whether they work. For instance, the Apple iPhone 4S in nonworking order will fetch $75. In working order the offer is $205 with AT&T as the provider. However, the price falls to $162.50 if Verizon is the carrier.

Wal-Mart said the worldwide demand for certain carriers has an impact on the price offered.

Lackluster brands of late, like Blackberry, are also approved for trade-in. They fetch anywhere from $3.50 for an old Blackberry Curve to $234 for the newest version Blackberry Q10.

Insiders said Wal-Mart is also offering better deals for some popular devices until Aug. 25, like $175 for a Samsung Galaxy S3 16GB, and $250 for an iPad.

When accessing the exchange site, consumers may get quotes for the devices they wish to trade. If they find a deal they like, Wal-Mart will pay via e-card within minutes. The consumer then has 10 days to send the device to the retailer, who provides a free shipping label in the deal.

The devices are sent to CExchange, a leading provider of electronic trade-in, recycling and asset recovery services who partners with Wal-Mart on this program, said Bao Nguyen, Wal-Mart spokesman.

The deal also hinges on the retailer extending the consumer credit until the device is received. For those who don’t want to share their credit history with retailer, a gift card will be mailed once the device is received and verified. Wal-Mart estimates a three to five-day time period for gift cards to be mailed once the device is received by its program partner.

The Wal-Mart program details can be found its dedicated site.

NorthWest Arkansas Community College will dedicate its student center to Dr. Becky Paneitz at 10 a.m. on Thursday, Aug. 22. The brief ceremony will be held at Bogle Plaza on the college campus in Bentonville.

The Dr. Becky Paneitz Student Center honors Paneitz as President Emerita after her recent retirement from the institution and caps a decade of service to the rapidly growing community college.

The Student Center was the first building project undertaken after Paneitz assumed the college’s chief executive role in 2003. Other facilities constructed during her tenure include what was Benton County’s first multistory parking garage, the Shewmaker Center for Global Business Development and the Center for Health Professions.

Recently, work has begun to transform the former Highlands Oncology building into the Melba Shewmaker Southern Region National Child Protection Training Center, also located on the NWACC campus in Bentonville.

The brief dedication ceremony will include a ribbon cutting by Bentonville / Bella Vista Chamber of Commerce.

Arkansas’ jobless rate has ticked higher during 2013, with the July unemployment rate rising to 7.4% from the 7.3% in June. The rate is unchanged compared to July 2012.

Although the jobless rate remained the same compared to July 2012, the size of Arkansas’ labor force fell 1.8%, and the number of employed fell by an estimated 22,771, or down 1.8%.

The number of employed in Arkansas during July was 1.229 million, down compared to the 1.252 million in July 2012, according to the Monday (Aug. 19) report from the U.S. Bureau of Labor Statistics.

The number of unemployed fell from 99,493 in July 2012 to an estimated 97,806 in July 2013. The number of unemployed increased by an estimated 37 between May and July.

The workforce size shrank from an estimated 1.352 million in July 2012 to 1.327 million in July.

Arkansas’ annual average jobless rate fell from 7.9% during 2011 to 7.3% during 2012. In July, Arkansas was one of nine states to see a jobless rate increase compared to July 2012. Also, July marked the 54th consecutive month that Arkansas’ jobless rate has been at or above 7%.

ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during July was an estimated 251,600, up from 251,400 in June and well ahead of the 241,100 during July 2012.

Manufacturing jobs in Arkansas during July totaled 153,900, down from the 154,400 in June and below the 155,800 in July 2012. Employment in the manufacturing sector fell in 2012 to levels not seen since early 1968. Peak employment in the sector was 247,300 in February 1995.

Government job employment during July was 214,800, down from 214,900 in June and below the 215,700 during July 2012.

The state’s Education and Health Services sector during July had 176,900 jobs, up from the 174,200 during June and up from 170,800 during July 2012. Employment in the sector is up almost 27% compared to July 2003.

Arkansas’ tourism sector (leisure & hospitality) employed 101,500 during July, down from revised 102,000 during June, and below the 102,100 during July 2012. At a revised 103,700, January 2013 marked a new employment high in the sector.

NATIONAL DATA
The BLS report also noted that 36 states had unemployment rate decreases from a year earlier, nine states had increases, and five states had no change. The national jobless rate during July was at 7.4%, and was down from the 8.2% in July 2012.

Nevada had the highest unemployment rate among the states in July at 9.5%. The next highest rate was in Illinois with 9.2%. North Dakota again had the lowest jobless rate, 3%.

The July jobless rate in Oklahoma was 5.3%, up from 5.2% in June and unchanged compared to July 2012.

Missouri’s jobless rate during July was 7.1%, up from 6.9% in June and unchanged compared to July 2012.

The Walton Family Foundation is donating $2 million to help fund construction and operation of the U.S. Marshals Museum planned for downtown Fort Smith.

Announced Monday (Aug. 19), the $2 million is the single largest gift from the public toward the 52,260-square-foot museum.

In January 2007, the U.S. Marshals Service selected Fort Smith as the site for the national museum. The cost to build the museum — including exhibit work — is estimated at around $53 million. Although the announcement was made in 2007, formal fundraising activities did not begin until the latter part of 2009.

Museum officials have said they hope to break ground on Sept. 24, 2014, the 225th anniversary of the U.S. Marshals founding by President George Washington.

“The Walton Family Foundation’s enthusiasm and support for the U.S. Marshals Museum is extremely exciting,” Jim Dunn, president and CEO, U.S. Marshals Museum, said in a statement “After learning about the plan, they came onboard and have been very interested in how they could boost this worthwhile national project. We are delighted to count them as part of the Museum effort and thank them for their vision.”

Updated info: Dunn said the Foundation was not asked for a specific amount. Museum staff made a presentation to Foundation officials in January requesting some level of support. Dunn also said having the Walton Family Foundation support sends a signal of legitimacy to other foundations and individuals who have been asked to support the museum.

“I think the gift from the Walton Family Foundation brings the museum much closer to reality, and the value of their gift likely goes beyond the $2 million,” Dunn said.

He said the museum effort needs between $10 million and $15 million more to reach the “threshold” of between $30 million and $35 million needed to break ground and begin construction. Dunn is confident they will meet the September 2014 date.

“I stop short of saying it’s 100% (certain). ... But I am optimistic about our pace of fundraising and the prospects we have on the horizon,” Dunn said.

As a sign of the optimism, the museum is in the process of hiring a curator, and have re-engaged architects to begin converting conceptual drawings into construction plans.

Richard Davies, executive director of the Arkansas Department of Parks and Tourism, said the museum will help boost tourism traffic statewide.

“The U.S. Marshals Museum will be an outstanding attraction for Fort Smith and all of Arkansas. It will complement the Clinton Presidential Center in Little Rock and the Crystal Bridges Museum of American Art to give us a threesome of great nationally recognized museums that will bring visitors from all over the country,” Davies said in the statement.

Based in Bentonville, the Walton Family Foundation was created by the Helen and Sam Walton family and today has three primary goals: To support K-12 education reform; support freshwater and marine conservation; and fund qualify of life initiatives.

In 2012, the foundation awards $432.672 million in grants.

The City Wire will have more on this story later today.

College students on average are racking up thousands of dollars in debt thanks to escalating tuition and textbook prices as they return to class over the next week. But several organizations said those costs can be reduced by renting textbooks instead of buying them.

The National Association of College Stores said students spent an average of $662 on textbooks last year, up slightly from $655 the prior year. That cost could easily run students more than $1,000 annually, as one textbook can cost $300, but more students have begun renting their books for a lower cost than buying, said Charles Schmidt, corporate spokesman for the NACS, trade group.

His organization estimates students saved more than $450 million in textbook costs last year because they chose to rent the books. He said renting is not new and neither is the competition college bookstores get from online services like eBay, Amazon, Chegg or Direct Textbook. He said the number of college stores offering textbook rental over the past four years as skyrocketed from only 300 in the fall 2009 to roughly 3,000 today.

“Such print-version rental programs can save a student between 45% - 65% off the price of a new print textbook, and is often less expensive than digital formats,” Schmidt said.

Debbie Miller, a recent graduate student at John Brown University, used the textbook rental program when the online book she ordered from Amazon did not arrive before classes began. Miller said she found the business textbook from a third-party seller on Amazon’s site and ordered what she thought was a “great deal” nearly two weeks before classes started.

When classes began, the book had not arrived so she rented the textbook from the college store.

Miller said when the textbook arrived from the third party seller, it was a photocopied version of the textbook she had rented, which was stamped “For sale only in Bangladesh” as an economy edition. She contacted the seller to say she was not satisfied with the book and was offered a free study guide, but no return option. After contacting Amazon, Miller said the third-party seller agreed to refund her money and told her to keep the book.

“I didn’t feel right about using a copied version and renting the textbook was a great option for me in this instance. I particularly like the fact that renters are allowed to highlight in the books, with no penalty,” Miller said.

Schmidt said piracy does occur in the textbook business, which is another reason why buying or renting locally is a good idea.

He said consumers think there are huge savings from ordering online, but many college bookstores around the country have instituted priced-matching, free shipping, guaranteed buyback and custom-published products that can provide values for the consumer.

“Stores also are investing in price comparison software, demonstrating how price-competitive they are with outside, for-profit companies,” he said.
 
Direct Texbook is a third party search engine that helps students compare prices between more than 200 reputable vendors.

"Direct Textbook is a completely free way for students to find the lowest-priced textbooks, compare special offers and coupons, sign up for textbook price alert notifications, sell their textbooks for a good price and even get cash back," said Morgan MacArthur, chief technology officer for Direct Textbook. "We're thrilled to have helped more than 20 million parents and students save millions of dollars on textbooks to-date, and we look forward to continuing to help make college more affordable for everyone."

MacArthur said students can save anywhere from 20% to 70% when they order online.

Schmidt said many college bookstores now offer online ordering as well and some report sales are up among certain income demographics. He said the cost of textbooks are high, but the idea that college bookstores have padded margins is not the case. He adds that local stores often provide jobs for students and local transactions have a positive impact on sales tax collections.

Roughly one-fifth of a textbook's price goes to the store where it is sold to cover personnel and operating costs, while more than three-quarters goes straight to the publisher, according to a report from U.S. News & World Report.

Both groups cited in the story agree the costs for college textbooks continues to escalate, rising 812% in the past decade, outpacing the rise in medical care and college tuition up 575% and 559%, respectively, according to U.S. Census data. They also agree that renting provides the most upfront savings and students should take advantage of price comparisons and price matching programs between local and online services.

Leadership Franklin County Director Marci Gage of Ozark has announced the program’s 2013-14 class.

Housed at Arkansas Tech University-Ozark Campus, Leadership Franklin County develops current and emerging leaders to work together to improve conditions in Franklin County and surrounding Arkansas River Valley communities.

From August through May, the following 18 participants will be educated and challenged during monthly, daylong sessions as to the needs and opportunities of the regional and dynamics of social and economic change:

Anthony Boen of Ozark, Franklin County sheriff;

Justina Buck of Russellville, associate director of Financial Aid, Arkansas Tech-Ozark;

Yvonne Case of Coal Hill, training unit manager, Department of Human Services;

Ronnie Duggar of Ozark, gas field specialist, Southwest Energy;

Sonya Eveld of Ozark, Ozark city clerk;

Brandon Fisher of Charleston, GIS coordinator, Arkansas Valley Electric Cooperative;

Jim Ford of Ozark, Ozark School District superintendent;

Mike Gibbons of Ozark, assistant vice president, Bank of the Ozarks;

Rex Heffington of Ozark, owner, Heffington Insurance Inc.;

Luke Holcombe of Altus, winemaker, Post Winery;

Keith Moore of Mulberry, owner, Do Moore Works LLC;

Lauren Robinson of Cecil, accountant, Arkansas Valley Electric Cooperative;

Paula Shaw of Ozark, item processing manager, Bank of the Ozarks;

Tonya Sneed of Charleston, administrative assistant/project coordinator, City of Charleston;

Ray Spruell of Ozark, chief public defender, Sebastian County Public Defender’s Office;

Jan Stacy of Altus, legal assistant, Capp Law Firm;

Rachel Whitman of Paris, assistant manager of Fiscal Affairs, Arkansas Tech-Ozark;

Gina Wilkins of Lamar, Clarksville-Johnson County Chamber of Commerce director.

“Last year’s inaugural class was a tremendous success and laid the groundwork for this year’s class, which promises to increase awareness of local issues and develop a valuable communications network within the county,” Gage said. “Also, it will strengthen the participants’ personal leadership skills and prepare them for other leadership opportunities.” 

America’s Car-Mart Inc. said higher than expected credit losses curbed its earnings in the company’s fiscal first quarter ending July 31. But the Bentonville-based firm still managed to deliver healthy top line results.


The buy here, pay here dealer posted net income of $7.541 million, 7% less than $8.118 million earned in the year-ago period. Car-Mart’s net profits equaled 79 cents per share, missing Wall Street expectations by 9 cents and 4 cents less than a year ago. The earnings report was released after the market closed on Monday (Aug. 19).

Top line revenue in the quarter totaled $122.5 million, up nearly 11% from a year ago. That revenue included sales and interest income, which is generated from its in-house finance operations.

Investors sold off shares early Tuesday (Aug.20) given the headwinds Car-Mart is facing with increased competition. Shares were trading at $41.62, down 3.44% following the company's call with analysts. Over the past 52 weeks Car-Mart shares have traded between $35.89 and $50.59.

On a bright note, same-store sales, a key metric in retail performance, were up a healthy 5.6% from a year ago.

"We are very pleased with our top line growth for the quarter. Our general managers continue to work hard at helping our customers succeed and are meeting the challenges of the current competitive environment head–on,” said CEO Hank Henderson.

"Even though our revenues were up, we feel like we could have done even better as we believe that increased funding to the sub-prime auto industry continues to have a negative effect on our business especially on the provision for credit losses line,” he added.

The company has said over the past few quarters that it continues to see more competition for its better customers, which prompted it to slightly extend loan terms and have to ante up more money to loan loss provisions. Loan loss provisions are the cushion the company has against defaulting loans as it finances each auto that it sells in-house. Car-Mart has some 59,000 active accounts with a finance balance sheet totaling $379.92 million, up 15% from a year ago.

The company’s loan loss provision was $26.53 million in the recent quarter, up 22% from a year ago. The accounts over 30 days past due rose to 5.4% in the quarter, up from 4% a year ago, amid a somewhat sluggish macroeconomic climate, according to Jeff Williams, chief financial officer for Car-Mart.

Operating expenses also rose 10% in the quarter from a year ago as there were 10 more dealerships in operation in the recent quarter compared the year-ago period. The company continues to expand its footprint at a robust clip of 10 to 12 new dealerships per year.

The company also recently began equipping the cars it sells with GPS tracking devices. This practice is widely used among subprime auto finance dealers as it helps them keep tabs on a vehicle.

Williams said the cost is about $4 per vehicle per month, and though Car-Mart doesn't actually lose that many vehicles, it will help the company stay in close contact with the customers should they fall behind of their payments. Once the loan is repaid, the device is removed.

Car-Mart also said it was taking advantage of lower used cars prices and purchasing some newer cars with less mileage for its lots. This took the firm's average retail sales price up 2.6% in the recent quarter, from a year ago.

Car-Mart customers paid an average $9,836 for vehicle purchases in the quarter. This compared to $9,584 a year ago.

Williams said while the cost is a little higher, they still believe putting their customers into better vehicles is the best for the long term. Instead of passing along lower prices to their customers, Car-Mart is working to keep prices near level and buying cars with less mileage.

“We remain convinced that the business model will continue to support significant unit volume expansion. We are excited about our future and we will continue to fight to retain our better customers," Henderson said.

FINANCIALS (quarter ending July 31)
Gross Revenue
2013: $122.54 million
2012: $110 million

Net Income
2013: $7.531 million
2012: $8.108 million

Earnings Per Share
2013: 79 cents
2012: 83 cents

Forty-five jobs could be on the way to Van Buren following action taken by the town's city council tonight (Aug. 19).

At the meeting, the council approved an application for a state grant that would help pay for part of an expansion at the Bekaert Corporation's Van Buren facility. The grant, an Arkansas Community and Economic Development Grant, would be used to expand a parking lot, according to Mayor Bob Freeman.

"(The grant would be) $265,000 for expansion and improvements of their parking lot," he said. "The application, as you're aware, is done by the city of Van Buren but it's actually a Bekaert application process, but we need a resolution to do that."

The grant, if approved, would be given to the city and then administered out.

Shortly after approving the application for the grant, the council passed a resolution authorizing Western Arkansas Planning and Development District to assist the city with administration of the grant. The organization, Freeman said, would primarily be responsible for not only administering the grant, but also ensuring that the company fulfilled the jobs component of the grant.

Information from Bekaert on the company's expansion plans were not immediately known, such as the overall money to be spent on the expansion, when the expansion may take place or whether the company will still expand regardless of whether or not the grant is approved by the state.

Freeman was unsure of when the city may find out whether the grant has been approved.

Bekaert, based in Belgium, produces in Van Buren wire cord for various products. The company employs around 27,000 people in 120 countries.

PARKS WORK
In other business, the city approved a resolution authorizing the city to apply for a 50/50 matching grant to purchase $170,000 in parks and recreation equipment to be installed at three sites across the city.

The projects are diverse, from the installation of pickle ball courts (a racquet sport that combines various aspects of badminton, tennis, and table tennis) at a park in the Rolling Hills neighborhood, installation of new restroom facilities at Dr. Louis Peer Memorial City Park and playground equipment at the Field of Dreams complex off interstate 40.

Director of City Planning Joe Hurst said building these projects through the 50/50 matching grant program offered by the Arkansas Department of Parks and Tourism's Outdoor Recreation Program was the first step in fulfilling the vision citizens shared with the city through various public meetings held in June.

"We had a lot of good ideas and we got to hear different needs and priorities. A lot of those needs and priorities that were at that particular meeting were more long-term, I think, but they were good ideas and I think they're something we can plan for in the future."

The proposed projects presented tonight are what Hurst calls short-term ideas, "things we can tackle now and really begin investing, continuing to invest in our parks."

PROJECT DETAILS
In explaining the various projects, Hurst said the developments would take place on land already available for park development. On the site of the proposed pickleball court is a basketball court, which Hurst said could be split in half and then house the basketball court, along with two of the pickleball courts. A parking lot would be built for about eight vehicles at a total cost of about $25,000.

The restroom facility would be south of the old pool house at the city's main park, which is home to the city pool, golf course, a small lake and the Boys and Girls Clubs. The total cost, which includes burying overhead power lines as required by the grant, would total about $75,000.

The final project is $40,000 for playground equipment to be used by families while at the Field of Dreams. In addition to the playground equipment, the improvements at the Field of Dreams would also include the addition of two pavilions at a cost of $15,000 each.

In all, Hurst said the city would only end up paying a total of $85,000 once the state reimbursed the city's costs.

Freeman said it was possible the city could continue applying for the grant year after year to help with other projects, as well, but he said the Department of Parks and Tourism would look at three different criteria:
• Taking care of equipment previously purchased through the 50/50 matching grant;
• Using the funds for the projects proposed in the application; and
• Completing projects before the next application is due.

As with the grant for Bekaert, it is unknown when the grant could be approved, though Hurst said the city should be notified of a decision by the end of the year. A timeline on construction would be determined following approval of the grant, Freeman said.

Area home sales continue to show signs of strength as July's home sales report shows a jump in sales in July that is 38% higher than July 2012.

Sebastian County showed the biggest improvement, with 123 homes sold this July versus 85 homes sold in July 2012. The total value of this year's sales were $18.209 million, a 48% spike.

In Crawford County, 48 homes were sold in July, an improvement from July 2012 when only 38 homes were sold. In all, the value of homes sold increased by 12.8% to $5.501 million last month.

Realtor Clif Warnock, principal broker at Warnock Real Estate in Fort Smith, said the jump in not only the number of homes sold, but also in the total values, was due to increasing interest rates.

"The difference has been movement in those interest rates. It's not been good that interest rates have gone up slightly, but any movement in interest rates prompt people to take action," he said.

With interest rates still near historic lows, many buyers are not only jumping due to the expected rise in interest rates, but they are also jumping to buy more home at a lower monthly cost.

"The interest rates, which is a driving force in real estate sales no matter what, (have been the key to the rise in number of homes sold and the values) since over 95% of the people buying homes have to finance them."

As interest rates increase, whether at a large or slow pace, Warnock is convinced that the market in both counties will continue to show spikes.

"For just a short amount of time, it does cause people that were sitting on the fence to go ahead and make a decision. The other part of that is, and there still are a lot of people who are undecided and sit and wait to see what turn the economy is going to take. Will it stay like it is or continue to get a little better? With each incremental increase with the (interest rates), I think you'll see people see that trend going to buy homes."

And even though July's numbers have shown growth in both counties, the total year-to-date numbers are still mixed. In Crawford County, there have only been 267 homes sold this year, versus 309 sold during he same period in 2012, resulting in $36.451 million in sales volume last year versus $28.628 million this year.

In Sebastian County, the numbers have remained in the positive, with growth in both the number of home sold and the volume, with 688 homes having been sold so far this year with a total value of $95.055 million, while only 617 homes were sold in the same period in 2012 with a value of only $83.58 million.

In order to keep the growth in home sales from reaching a plateau or possibly sliding back into negative territory, Warnock said economic development in the region must not only continue, but pick up pace.

"The one thing that (the area) has to deal with is the jobs that are in Fort Smith - without a job, without an income, you can't buy a home," he said. "I think that's what has got to spur more activity, is just an increase a number of jobs in Fort Smith to sustain that increase."

Home Sales Data
(January-July)
• Crawford County
Unit Sales
2013: 267
2012: 309

Total Sales Volume
2013: $28.628 million
2012: $36.451 million

Median Sales Price
2013: $102,950
2012: $110,000

• Sebastian County
Unit Sales
2013: 688
2012: 617

Total Sales Volume
2013: $95.055 million
2012: $83.580 million

Median Sales Price
2013: $114,900
2012: $115,000

Attorney General Dustin McDaniel announced Tuesday (Aug. 20) that former owners of an adoption agency found guilty of defrauding Arkansas consumers have been ordered to pay more than $1.2 million in restitution and penalties and to never do business in Arkansas again.
 
McDaniel sued Adoption Advantage Inc., a defunct Little Rock adoption agency, in 2010, accusing the company of making false promises related to the company’s ability to place a child with prospective parents. All the while, the company and owners Ed Webb and Donna Gail Hight were raking in thousands of dollars in upfront fees collected through their deception.

“Many Arkansas families who earnestly wished to adopt were left with despair and heartbreak after dealing with the defendants,” McDaniel said. “Some consumers gave their life savings to this company to adopt a child. Instead, these callous individuals stole their hopes, dreams and their money.”

A Pulaski County jury in April unanimously found that Hight and former Adoption Advantage employee Jacklyn Potter had violated the Arkansas Deceptive Trade Practices Act. Previously, the court had entered a default judgment against Webb and Adoption Advantage.

In his order issued today, Pulaski County Circuit Judge Mackie Pierce described the defendants’ actions as “simply horrific.” He added that “words cannot adequately describe the despicable conduct,” of the defendants.

Adoption Advantage claimed to specialize in domestic infant adoptions. The company lied to prospective parents about the availability of birth mothers seeking adoptive parents for their infants. Prospective parents were asked to pay tens of thousands of dollars in fees. Couples were asked to sign a contract and wire money to be able to “immediately” adopt a child.
 
Pierce ordered the defendants to pay a total of $850,749 in restitution to affected consumers. He assessed civil penalties of $370,000 to Adoption Advantage, Webb and Hight for 37 violations of the Deceptive Trade Practices Act. Potter was ordered to pay $2,000 in civil penalties.
 
The State was awarded $33,577 in fees and costs.
 
The order permanently prohibits the defendants from operating an adoption service in or from Arkansas regardless of the location of the prospective parents. It also prohibits the defendants from offering to facilitate adoptions for Arkansas residents even if the defendants choose to operate from outside Arkansas.

Home sales and foreclosure listings are rising across the Northwest Arkansas region which has veteran appraisers working overtime. But despite the hectic pace, not all values are rising fast enough to keep pace with positive market trends in place.

Charles Hudson Sr., owner of Hudson Appraisals in Rogers, said the turn-around time for an appraisal is one to two weeks, and his crew is working overtime to keep that being any longer. He said the demand for appraisals is steady and mixed between conventional homebuyers and an uptick in activity in the foreclosure market.

Nicky Dou, a broker with the local franchise of Coldwell Banker, said recently she’s seen a few closings taking longer than they have in the past because there are so many more sales which have inspectors and appraisers requiring more time.

Agents sold 2,001 homes across the two counties between May 1 and July 31. Unit sales are up nearly 16% through the first seven months of this year, according to Paul Bynum, market analyst with MountData.com

At the same time, the number of foreclosure properties for sale continues to rise with 396 listings as of last week. Agents said then there had been 64 new listings in the past 10 days. Distressed property listings totaled 296 in June, rising from 249 in April and 222 in March.

Real estate professionals said a more active market – even with foreclosures – is another positive move for real estate values that may still be lagging in some areas.

VALUE COMPARISONS
Dou said she has seen a few deals this year where appraisals did not match the offer in hand.

“I have had to send comparable data that supported the sale to the appraisers. Some will look and make changes, and some will not,” Dou said.

She adds that some of the appraisers are coming from outside the area and do not know this market.

Hudson has appraised in the region for more than two decades and said values are mixed, although nearly all are up somewhat from the deep lows recorded a few years ago. He said values remain mixed, which is not uncommon given that the two-county region encompasses everything from new starter homes, to older established neighborhoods and exclusive executive-style homes – all of which have been impacted by foreclosures in recent years.

Hudson said appraisers have to look at historical sales data to draw market comparisons which can include distressed and non-distressed sales depending on the neighborhood.

“I have had some appraisals that were done in areas where there were 24 sales transactions to compare with, all of them were distressed. This property was not,” he said.

In other cases, Hudson said if there is an arm’s length comparable sale that isn’t distressed, that usually supports higher values. He said every neighborhood is different. Hudson said the new home market appraisals are standing firm in part because builders are not making concessions.

“We know building costs are going up and homebuilders have to pass those along, so it makes sense that new home prices are higher. There is also no real excess supply to hinder the price appreciation,” said Tom Reed, owner of Reed & Associates appraisers in Fayetteville.

He said that does not mean existing home prices will rise to the same degree or in concert with the new home market because there are other factors in play. Reed was not surprised to hear that some sellers have to had lower their prices when the property did not appraise for the buy offer in-hand. Again, he said appraisal data is backward looking and usually lags the present market, which at this time is moving higher.

J.P. Sexton, mortgage lender at Liberty Bank in Fayetteville, said when values are rising, it takes a while for the appraisals to catch up, especially on the heels of lean years. On the flip side, Sexton said when prices were going down a few years ago some of the homes still appraised higher because of the lag from the boom years.

“I have recently seen some buyers bring cash to the closing table when the home they wanted appraised $10,000 below the contract price. The seller lowered the price by $5,000 and the buyers put an additional $5,000 down to get the home they wanted,” Sexton said.

That was a case where the buyers understood the home’s upside potential and they had the means to work out a deal, he added.

EXISTING HOME SALES
Vicki Briolat, an agent with Crye-Leike in Bentonville, said she has held her breath on some recent appraisals, but so far she has not had one come in too low.

“I recently had a listing for a buyer using VA financing. VA uses their own appraisers and he had my seller fix a few small issues before he would complete the appraisal,” Briolat said.

She said prices are better for sellers of existing homes, especially if the property has been well-maintained. While there are more foreclosures on the market, Briolat said the number of listings remains low.

“I am nearly sold out, activity has been solid and we are selling what we get, nearly as fast as we get it,” Briolat said. “It’s a good problem to have but nearly everyone I know is looking for more listings.”

She said a seller can’t do anything about what has happened in the neighborhood – foreclosures and such. But things a seller can do to get top price for their home is get it ready, listen to the agent and price it right.

“I recently worked with a couple who wanted to sell but it took them four months to get the home ready. We waited to put the home on the market until they had made all the changes recommended, most of which was de-cluttering and replacing the large scale furniture with borrowed furniture from a relative. When we listed the home, we got two cash offers in the first 12 hours. We ended up with five offers and my sellers got what they wanted out of the deal,” Briolat said.

A lawsuit filed Aug. 2 by Fort Smith-based Cooper Clinic against Mercy Fort Smith and St. Louis-based Sisters of Mercy Health System not only more fully reveals a contentious relationship between former medical sector partners, it may signal an end to the hospital-clinic relationships that have been part of area medicine for almost a century.

In the 17-page complaint filed in Sebastian County Circuit Court, Cooper Clinic officials allege that Mercy and its parent company used their economic power to recruit 15 physicians away from Cooper and to the Mercy Clinic between Oct. 31, 2010 and Aug. 1, 2013.

The physicians who left Cooper Clinic are (in order of departure): Ivelesse Dupree; Merle McClain; Tony Flippin; Douglas Buckley; John Smith; Garreth Carrick; Lane Wilson; David Hunton; Kurt Mehl; Donald Shows; Chris Coleman; Greg Pineau; Robert Nowlin; Jennifer Burks; and John Werner.

Cooper’s complaint also includes Drs. Burks, Nowlin, Shows and Werner as defendants.

“Some or all of the above physicians were contacted prior to the expiration of their contracts with Cooper and actively recruited to come to work for Mercy Entities, notwithstanding the existing contractual obligations between Cooper and said physicians which were known to the Mercy Entities,” notes the Cooper complaint.

The complaint alleges that the loss of physicians “created problems in serving patients” in primary care and several specialties, which “caused harm to Cooper’s financial condition.” By recruiting Cooper physicians, Cooper Clinic officials also allege that Mercy and its parent company “were attempting to economically harm Cooper and punish it for not selling its business to Mercy Entities.”

MERCY RESPONSE
In a response to questions from The City Wire, Mercy on Tuesday provided this statement: “Mercy has been served with a summons and a complaint filed against it by Cooper Clinic. Those documents have been referred to our counsel for an evaluation and a response. It is our belief that Mercy has done nothing wrong or illegal and will defend itself vigorously against the allegations made by Cooper Clinic in the complaint.”

In a Dec. 8, 2010 letter, Doug Babb, CEO of Cooper Clinic, asked Jeff Johnston, then the CEO of what is now Mercy Fort Smith, to “refrain from further negotiations with Cooper Clinic physicians under executory employment agreements.” The letter also said Cooper preferred to work with Mercy but would not shy away from legal action if necessary.

Babb sent a letter to Johnston on Jan. 21, 2011, to again ask Mercy to stop recruiting its physicians.

“While I appreciated your kind words and warm Christmas wishes in your December 21, 2010 letter, you and your staff nevertheless are continuing to attempt to get at least six more Cooper Clinic physicians to break their employment contracts notwithstanding my request that you stop this anticompetitive practice,” Babb wrote.

POSSIBLE MERGER WITH MERCY, SPARKS
The complaint also reveals that Cooper negotiated with Mercy and with Sparks Health System – and its parent company, Naples, Fla.-based Health Management Associates –   about a possible merger, acquisition or “integration” with Cooper physicians.

In a July 25 letter from Mercy (Kim Day, president of Mercy Central Communities; Ryan Gehrig, president of Mercy Hospital Fort Smith; and Dr. Cole Goodman, president of Mercy Clinic Fort Smith) to Babb and Dr. Michael Callaway, chairman of the Cooper Clinic Board of Directors, Mercy offered to “stand still” on negotiations with Cooper Clinic physicians if Cooper would not continue “further discussions with Sparks, HMA, equity investors” or any other group that would create a “Competing Transaction” to Mercy.

Babb responded July 30 with a letter noting that Cooper officials interpreted the Mercy letter as “both a threat and ultimatum” that if Cooper did not accept the terms then more physicians would be lost to Mercy.

“Please be informed that the Clinic has retained counsel to seek redress from this continued pattern of intentionally and tortiously interfering with our physician employment agreements and engaging in anticompetitive and predatory business practices,” Babb concluded in his July 30 response letter.

Cooper’s lawsuit seeks compensatory and punitive damages under six counts: Breach of Contract; Tortious Interference; Violation of Arkansas Deceptive Trade Practices Act; Unjust Enrichment; Civil Conspiracy; and Breach of Contract-Compensation Reimbursement.

COOPER CLINIC STATEMENT
In a response to questions from The City Wire, officials at Cooper Clinic provided this statement:
“While it would be inappropriate to comment outside of court regarding the specifics of this lawsuit, we can provide a brief summary of the actions that led us to seek legal recourse. Locally owned by our doctors since 1920, Cooper Clinic is important to the health of our patients as well as the strength of our community; however, our Clinic is being threatened by Mercy’s continued recruiting of our physicians. Repeatedly, Mercy has negotiated with physicians who are under contract with Cooper Clinic, leading doctors to terminate their employment agreements and join Mercy to accept financial incentives. Despite our requests that these actions cease, Mercy’s actions have continued. This has negatively impacted Cooper Clinic and been disruptive to patient care. Cooper Clinic has been a vital part of our local medical community for more than 90 years. It is crucial that we protect our organization against these practices to secure our independence and our future.”

FIRST HINTS OF TROUBLE
Although well known for several years in regional medical circles, the schism between Cooper Clinic and Mercy bubbled up to the public in early 2012.

Prior to 2012, physicians with Fort Smith-based Cooper Clinic have for decades had privileges only at St. Edward Mercy Medical Center (now Mercy) – part of a two-hospital town dynamic that often saw clinics affiliated entirely with St. Edward or Sparks Health System.

However, a Jan. 31, 2012 letter from Cooper Clinic Drs. Dale Asbury and Jeffrey Medlock informed patients that physicians with Eastside Family Practice are now making rounds at Sparks.

“Whenever possible, we would prefer that our patients who must be hospitalized choose Sparks Regional Medical Center so we can oversee your hospital care,” the two physicians noted in the letter.

Babb said at the time that the letter from Drs. Asbury and Medlock is “information for a specific group of patients and does not reflect a Clinic-wide shift from service at one hospital to the other.” However, Babb noted then in a letter to The City Wire that “this is a shift in the way our doctors have practiced traditionally.”

In a Sept. 7, 2012 address during a Fort Smith Regional Chamber of Commerce event, Babb said the historically pleasant relationship between Cooper and Mercy had become “tense.”

“Cooper Clinic and Mercy, in the 1990s, were very much quasi-partners, and very much working closely with each other, but that’s evolved over time,” Babb said at the chamber event. “The main reason is that HMA and Mercy have different system strategies. HMA wants to work with independent physicians, while Mercy has chosen, and this is not to be critical, to have integrated physicians. In other words, they want physicians to be employees, and that creates tension. ... We have been forced to work with Sparks and be as independent as we can, and not to rely just on Mercy. So that relationship has evolved from a partnership to actual competition.”

MERCY EXPANSION
Mercy officials have not been shy about their plans to expand facilities, services and add physicians in the Fort Smith market.

Officials with the St. Louis-based Sisters of Mercy announced in August 2011 a plan to invest about $192 million in Mercy facilities in the Fort Smith region as part of a 10-year plan to invest $4.8 billion in its operations in Arkansas, Kansas, Missouri and Oklahoma.

“Assuming Mercy’s growth in spending and wages increases at a modest 2% annually over the next 10 years, Mercy will generate almost $3.5 billion in total economic benefits for the city during this time period,” noted the executive summary of a Mercy impact report released in October 2012.

Part of that impact includes the hospital’s continued recruitment of new doctors. Goodman, the Mercy Clinic CEO, said in October 2010 that the clinic plans to add 80 new physicians in the next three to five years, with at least 50 of those being specialists. Those doctors will require a support staff of about 280, which will result in added annual payroll of about $19.7 million.

Crystal Bridges Museum of American Art has recently hired two new staff members, Emily Ironside and Bill Lyle.

Emily Ironside joined Crystal Bridges’ advancement team on August 1 as the membership program manager. 

At Crystal Bridges, Ironside will oversee all aspects of the museum’s membership program, including recruitment and member services.  

“It’s certain that the museum’s membership program will continue to thrive under Emily’s capable leadership,” said Jill Wagar, Director of Advancement. “Her graceful ability to strategically engage individuals at Crystal Bridges will enrich members’ experiences.”  



No stranger to the arts in Northwest Arkansas, Ironside comes to Crystal Bridges from Walton Arts Center, where she served as the annual giving manager for two years. 

She also worked previously at the University of Arkansas, Wal-Mart, and YMCA and holds a master’s degree in communication from the UA.

Ironside serves on the boards of NWA Mercy Family YMCA, the Association of Fundraising Professionals, and Life Styles Inc. as a member of the Art Advisory Council.

Bill Lyle also joined Crystal Bridges as the new executive chef of Eleven, the museum restaurant. 

Chef Lyle has been part of the Northwest Arkansas food community in Fayetteville for several years, not only through his work as executive chef at Ella’s Restaurant on the campus of the University of Arkansas.

Lyle also has the annual Winemaker’s Dinner at Walton Arts Center’s Art of Wine Festival and previously served as sous chef at Bordino’s restaurant in downtown Fayetteville.


“Chef Lyle’s dynamic, yet accessible style of cuisine promises to be a perfect fit for Eleven’s mantra of modern American comfort food,” said Crystal Bridges’ Director of Culinary Services Case Dighero.

Other cities call such a road system a beltway, but Fayetteville city planners call theirs the "Mayor's Box," Fayetteville Mayor Lioneld Jordan said, adding that it's the key to the city's street plan.

"I think we've got to start with the box," the mayor said in a recent interview in his office off the Fayetteville Square. (See the map at the bottom of this story.)

As a City Council member, Jordan was chairman of the Street Committee when planning for the beltway began in about 2004, said City Engineer Chris Brown, and it got that name then. Dan Coody was mayor at the time.

The box is about 21.5 miles long, Brown said. The cost is about $33.5 million previously budgeted and approved, two-thirds of which comes from city coffers and the rest from state and federal sources. The dollar figure does not include competed stretches, he said.

The roads that form a rough square around the city are or will be in a few years four lanes wide with left-turn lanes, and to the sides 10 feet of greenway between them and wide sidewalks. Fayetteville's multiuse trail project is well under way, and this plan makes sidewalks an adjunct to it.

Sidewalks accompany the ring of roads, but more are planned to lead to all public and private schools within, Jordan said. The intent is to encourage parents to let their children return to walking to school.

"I think it's going back to that again. But we haven't had the type of sidewalks to encourage that," he said. The planned sidewalks are 5 feet wide and set apart from traffic by that 10 feet of greenway.

With the sidewalks and grassy areas, "I'd like to call it a 'green beltway,'" the mayor said.

Except for the northwest corner of the Mayor's Box – Rupple Road north of Mount Comfort Road then a portion of Howard Nickell Road – the road extensions or widenings all are approved and funded. That last section is not a priority, Brown said. While there's some residential development there, it's slower growing than other areas and also lies on or outside city limits with unincorporated Washington County.

Rather than a policy spreading out city limits to accommodate a growing population, the box "establishes your growth boundaries, and then you infill from there," Jordan said.

SOUTH AND EAST SEGMENTS
The southern leg mainly comprises 15th Street, with Martin Luther King Boulevard to the west of Razorback Road and a portion of Huntsville Road to the east. It already is nearly complete, Brown said. Fifteenth Street between School (U.S. 71 Business) and Armstrong avenues is set to remain less than four lanes wide in the near term. Traffic flows "pretty well" there, Brown said, and the city will leave it alone for a while. Improvements to Huntsville (which also is Arkansas 16 so the state pays about half) between Armstrong Avenue to Crossover are costing about $3.5 million, Brown said.

The east leg comprises Crossover Road. Construction nearly is complete between Mission and Joyce boulevards, and should be done this fall. South of that is expected to be finished in fall 2014. The stretch from Joyce north to the city limits, which lie outside the beltway at that points, has a summer 2015 target. Because Crossover also is Arkansas 265, costs are being shared with the state Highway and Transportation Department.

The segments now under construction altogether cost about $16 million, Brown said – $8 million city funds and $8 million from the state. The bill for the Mission to Joyce stretch of Crossover is $12.5 million of this total.

NORTH AND WEST SEGMENTS
The northern leg has Joyce to Steele Boulevard and is complete. Van Asche Drive will lose its twisting curves from Garland Avenue (Arkansas 112) east to Steele. A straight, wide thoroughfare will be the new Van Asche, to the south and west of Northwest Arkansas Mall. Its construction is to begin early next year and be completed in spring 2015.

The northern and western segments of the box that have not been started will cost about$17.5 million, of which approximately $3.5 million comes from federal aid and the rest by the city. The new Van Asche from Garland/112 to Gregg Avenue has a budget set at $4 million of that $17.5 million, Brown said.

Continued widening and extensions of Rupple Road form the western portion. It is being separated into at least three projects, Brown said.

The southernmost part creates an extension of Rupple to start M.L. King (U.S. 62) and continue to Persimmon Street, where Owl Creek Elementary School sits. Rupple there will be nearly all new construction and needs further traffic studies, Brown said, and should start in fall 2014, ending 18 months later, perhaps early 2016.

Rupple from Persimmon to a residential lane, Starry Night View just south of Mount Comfort Road, is to start in early 2015 and be ready in mid-2016. Starry Night to Mount Comfort should be started by mid-2016 and be completed by the end of that year.

The King/62 to Mount Comfort segments should cost $13.5 million of the $17.5 million budget, Brown said.

The unfunded section of the Mayor's Box begins on Rupple north of Mount Comfort.

Brown said "current construction costs are running at an average of $1,000 per linear foot of roadway." Thus, the unfunded road extensions or two-lane segments needing four-lane width in the beltway total about 20,000 linear feet, he said, and would need another $20 million to wrap it up.

For Jordan, the Mayor's Box is more than easing automotive traffic. A "walkable community" is a goal.

"It's not just about roads, it's about sidewalks, bike lanes, bus routes, sidewalks and trails connecting into it."

Summit Medical Center has announced that Tinika Osborne has been hired as a new physical therapist.

Osborne, PT, DPT, RYT, is now caring for patients in the inpatient and outpatient settings. This means two full time physical therapists and a physical therapy assistant are now available to provide Crawford County patients with the individualized experience they deserve.

Osborne has nearly 10 years of experience helping rehabilitate patients.  She earned her doctorate in physical therapy from Shenandoah University in Winchester, Va., and her Bachelor of Science degree from Virginia Tech in Blacksburg, Va.

The Summit physical therapy staff provides care for patients of all ages, from pediatric to geriatric. Services available include back and neck rehabilitation, post-surgical rehab, sports and orthopedic rehab, neurological rehab, industrial rehab and a wide range of modalities. Patients must be referred to receive outpatient treatment by a licensed healthcare provider.  

Summit Medical Center is a fully accredited, 103-bed acute care hospital based in Van Buren.

Sparks Health System has added a new computed tomography (CT) scanner for use in the Sparks Medical Plaza.

The General Electric Bright Speed 16-slice scanner is the same model in use at Sparks Regional Medical Center. This means Sparks Clinic patients in need of diagnostic imaging may have their scans performed right at the Plaza, located at 1500 Dodson Ave., without having to travel to the hospital. 

The Plaza CT scanner is also equipped with Adaptive Statistical Iterative Reconstruction technology, which allows for an up to 75% reduction of radiation dose in the patient without compromising image quality or resolution. IQ Enhancement software enables the Bright Speed device to perform scans at a speed equal to 50-slice scanners.

This particular scanning system is designed with patient comfort in mind. The scanner’s low table height allows patients easier access to the device and its faster speed mean patients spend less time being scanned.

The new CT allows the Plaza’s Medical Imaging department to perform a wide variety of patient scans, including specialized orthopedic and sinus scans, and some angiography studies.

Sparks Health System includes Sparks Regional Medical Center, Sparks Clinic (an employed multi-specialty physician group), Sparks Home Health, Sparks PremierCare physician-hospital organization, and the fully hospital-integrated Marvin Altman Fitness Center. Summit Medical Center in Van Buren, Ark., is a sister facility of Sparks Health System. 

Two closely watched indices measuring the health of the U.S. freight sector during the first half of the year have pointed to slow and uncertain economic growth in the nation’s economy. The July reports from the American Trucking Associations’ and the Cass Freight Index were more of the same.

The American Trucking Associations’ Truck Tonnage Index fell 0.4% in July after a scant 0.1% rise in June. Year-to-date, the index is up 4.7% compared to the same period in 2012.

The not-seasonally adjusted index, which represents the real change in tonnage hauled by the fleets, equaled 129.6 in June, which was 3% above the previous month.
 
“After gaining a total of 2.2% in May and June, it isn’t surprising that tonnage slipped a little in July,” ATA Chief Economist Bob Costello said in a statement. “The decrease corresponds with the small decline in manufacturing output during July reported by the Federal Reserve last week.”

Trucking serves as a barometer of the U.S. economy, representing 67% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, according to the ATA. Trucks hauled 9.2 billion tons of freight in 2011. Motor carriers collected $603.9 billion, or 80.9% of total revenue earned by all transport modes.

Based on an expectation of continued growth in the energy industry and auto sector, Costello believes tonnage numbers will be positive in the second half of 2013.

“Despite the small reprieve in July, we expect solid tonnage numbers during the second half of the year as sectors that generate heavy freight, like oil and gas and autos, continue with robust growth,” Costello said. “Home construction generates a significant amount of tonnage, but as mortgage rates and home prices rise, growth in housing starts will decelerate slightly in the second half of the year, but still be a positive for truck freight volumes. Tonnage gains in the second half of the year are likely to overstate the strength in the economy as these heavy freight sectors continue to outperform the economy overall.”

RETAIL IMPACT?
One of those economic areas to see less freight shipped could be retail. In recent weeks, most major U.S. retailers have lowered their sales guidance for the second half of the year based on a reduction in consumer spending. Execs with Wal-Mart Stores recently cut the company’s growth projections for this fiscal year by 50% based on what they see as a “challenging” retail environment.

Costello told The City Wire that the retail sector pull back will have an impact on freight, but not enough to pull the amount of tonnage into negative territory compared to 2012. A shipment of retail goods, Costello explained, typically weighs less than a shipment of components for the housing, energy or auto sectors.

Costello’s view of tonnage gains for the remainder of 2013 is supported by an Aug. 15 report from Little Rock-based Stephens Inc. about the health of the less-than-truckload (LTL) sector of the trucking industry. The report, written by Stephens’ transportation industry analyst Brad Delco, and research associate Ben Hearnsberger, suggest that tonnage levels in the LTL began to improve the latter part of the second quarter and into the third fiscal quarter.

“(T)he tonnage trends throughout the second quarter were encouraging as many carriers that reported negative tonnage this quarter were seeing flat to positive tonnage in their monthly June/July figures,” noted the Stephens report.

CASS DECLINE
The Cass Freight Index fell 2.3% in July, but was a drop “in line with seasonal trends,” according to 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.

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.

Despite being down in June and July, shipment volume between January and July is up 3.4% above the same period in 2012.

Wilson’s report included the following info about shipping segments:
• Railroads led the way in declines with drops in carloadings and intermodal shipments in the last four weeks. Carloadings were down 3.6% and intermodal loadings fell 2.5%.

• The decrease in intermodal rail is consistent with the decline in imports and weak exports, which limited the number of trailers to be moved.

• The trucking sector showed some signs of capacity constriction, but it is too early to determine if or to what extent this is being caused by the new Hours of Service Rules.

Wilson said the U.S. economy “is still showing signs of slow growth,” with the GDP second quarter growth estimated at 1.7%, up from a first quarter revised growth rate of 1.1%. Another positive sign, according to Wilson, is improvement in U.S. manufacturing orders in June.

“Future prospects from a freight point of view look largely the same as they did last month. Volume is strong enough to make use of the equipment we have deployed, but not growing at a rate sufficient to cause stress in the system,” Wilson said.

The back-to-school sales are not even in books yet and retailers from Wal-Mart to Toys R Us are already unveiling new incentives to woo holiday shoppers.

Wal-Mart Stores Inc. said Wednesday (Aug. 22) at the retailer’s annual holiday meeting in Orlando that it ditched the $5 layaway set-up fee this year and will give its Facebook fans a 2-day head start on holiday layaway beginning Sept. 11. In prior years, Wal-Mart refunded the start-up fee with a gift card when the layaway paid in full. This year the program is free, no strings attached.

That said, layaway cancelations will incur a $10 charge this year, except in the states of Ohio, Maryland, Rhode Island and the District of Columbia. There was no cancelation charge in 2012.

The program officially kicks off Sept 13 and runs for 90 days and will operate similarly to last year, absent the set-up fee.

“Times are tough and it’s not easy for many Americans – they are watching every penny,” said Duncan Mac Naughton, chief merchandising officer for Walmart U.S.
 “All year long, but especially during the holidays, our customers need a low price leader. This year, we are committed to doing everything we did last year to help Americans save money – plus more. More savings, more layaway items and our commitment that they can give their families a great Christmas on a budget."

Wal-Mart said there are 35,500 eligible layaway items this year, up by about 1,000 items from a year ago. This year’s eligible merchandise includes Apple’s iPad, the Samsung Galaxy and PlayStation 4, as well as toys, jewelry, small appliances, select sporting goods and automotive stereo and speaker systems.


The retailer phased out its layaway plan in September 2006 — roughly a year before the recession began — with the exception of jewelry. But Wal-Mart brought back the program for the holiday season in 2011 and said it’s been widely used by its customer base.


Toy giant Toys R Us is expanding its price match guarantee this holiday season to include online pricing from Wal-Mart, Target, Best Buy and Amazon on identical in-store items.

"We want to take away any concerns our customers might have about maximizing their budgets," said Toys R Us Chief Merchandising Officer Richard Barry.

Getting customers into stores is more than half the battle for retailers during the important holiday season. Analysts estimate holiday sales can account for 40% of a retailers total annual revenue.


Wal-Mart, Target, Macy’s and other retailers recently reporting earnings have given cautious outlooks, trimming sales and profit estimates for the balance of this year. Walmart U.S. CEO Bill Simon said recently that the consumer is still quite value- conscious. He added that consumers will likely spend for the holidays, while they may cut back on other things between now and then. Target executives said Wednesday (Aug. 22) their shoppers may have been willing to dole out for large-ticket items like new cars in recent months, at the expense of other discretionary spending.

Lori Cross, analyst with Cross Ledge, said there is plenty of evidence that consumers are spending more on big ticket items from robust auto sales to Home Depot’s recent note that the “$900 and up projects” rose 15% from a year ago for the big box giant.

“That’s equal to lots of smaller trips not taken to Wal-Mart or Target,” she said.

Other analysts agree the higher payroll taxes which took effect in January to the tune of $1,000 a year for households earning $50,000, are still being felt by some consumers. They said consumer income has also been dinged by rising health insurance costs and stagnant wages.

“Let’s hope by the end of this year, consumers are figuring out how to adjust to those higher taxes,” said Courtney Reagan, retail analyst with CNBC.

Last year holiday shoppers spent almost $579 billion, rising 3% from the prior year. A holiday survey by Baynote found 60% of retailers are forecasting revenue growth of 10% for the 2013 holiday season.

The report also suggests that 30% of retailers will begin their pre-holiday promotions prior to October 1, with more than 40% waiting only until early November.

"We wanted to take the pulse of the retail industry as it prepares for the 2013 holiday season and gain a deeper understanding of how marketers plan to increase holiday season revenue and profitability," said Dan Darnell, VP of marketing and product, Baynote. "The inaugural survey provides a benchmark for retailers finalizing promotional strategies for the upcoming holiday season.”

The survey also revealed that most retailers believe shoppers will spend later in the year, despite their efforts to price match and provide extended layaway programs.

Tyson Foods continues to grow its value-added, higher margin sales making strategic investments into various facilities across the country.

The latest of those deals is a $5.3 million expansion to its Mexican Original facility in Portland, Ind.

This subsidiary makes tortillas, taco, chips and flatbreads for the restaurant industry.


This is the second major expansion for the Mexican Original business this year as the company purchased Don Julio Foods in February.



Wall Street continues to shine on Tyson Foods with shares trading near its 52-week highs. Shares closed Wednesday (Aug. 21) at $31.53, down 30 cents.

Fayetteville-based Clark Partners Realty Group has hired Alex McGowen as a tenant representative to manage all rental/lease inquiries.

McGowen is a business major at the Walton Honors College and earned his real estate license in 2013. He also co-founded the Razorback Hope Chest charity and serves as Vice-President. Alex can be contacted at 479-236-6002.
 
"Alex’s position fills an important void missing in our college town and throughout the region,” said Anthony Clark, lead agent. “Having a professional willing to take on the daunting job of helping you find the perfect rental property in a quick-moving market is something few other companies offer in Northwest Arkansas.”
 
Clark Partners Realty Group is a real estate group within Bassett Mix & Associates Inc. Clark Partners is based in Fayetteville but serves all of Northwest Arkansas.