Optimism was the theme of an American Trucking Associations’ economic report, but a broader index that measures shipments and freight expenditures delivered a sour note on future economic conditions.

The American Trucking Associations’ Truck Tonnage Index fell 2.8% in October compared to September, but was up 8% compared to October 2012. Year-to-date, the tonnage index is up 5.5% compared to the 2012 period. Also, October was the first decrease in the monthly index since July.

“From May through September, the index surged 3.5%, including only one monthly decrease over that period,” ATA Chief Economist Bob Costello said in the tonnage report. “It isn’t surprising for volumes to fall back some after such a good run.”

Costello said the “robust” year-over-year gains suggest the economy may be stronger than some believe.
 
“Specifically, the heavy freight sectors, like tank truck, have been helping tonnage this year. But in the third quarter, generic dry van truckload freight saw the best quarterly gains since 2010. I view this positively for the economy. I view it positively for trucking. Now, we have to see if it continues,” Costello said.

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.

The Cass Freight Index reported a 2% decline in the shipment index and a 0.8% gain in the expenditure side of the index.

St. Louis-based 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.

‘COOL DOWN’ SIGNS
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, said the 16-day federal shutdown in October is partially to blame for the decline in shipments, “but prior to the shutdown the economy was already exhibiting signs of a cool down.”

“The 3.5 percent decline in freight volumes followed two months of strong growth, but is reflective of the weakening state of the overall economy. Shipment volume has already been below corresponding 2012 volumes in six months of this year, and October contributed the seventh month, coming in 2.0 percent below a year ago,” Wilson noted.

The eventual federal budget agreement only “kicked the can down the road,” Wilson said, which is not likely to help an already struggling economy.

“Rather than settling appropriations for the 2014 budget, the result was a continuing resolution that will fund the government through January 15 and suspend the debt ceiling until February 7. This resolution does little to defray the concerns of workers and consumers alike, demonstrated by the plummeting measures of consumer and business confidence in October,” she said.

The monthly Wells Fargo outlook suggests slower overall economic growth in the fourth quarter, with conditions improving in 2014.

U.S. economic activity increased at a 2.8 percent pace in the third quarter, but much of the gain was due to an outsized increase in inventories. However, real final sales, which exclude inventories, moderated to a 2.0 percent pace. The gain in inventories sets the stage for a slower pace of growth in the fourth quarter. We now expect real GDP in the fourth quarter to increase at only a 1.8 percent pace,” noted the Wells Fargo report. 

The report predicted that “economic growth in 2014 is expected to pick up from its moribund pace this year led by improving consumer spending, business fixed investment and homebuilding.”

ARKANSAS TRUCKERS
The third fiscal quarter was good for most Arkansas-based trucking and shipping companies.

P.A.M. Transportation Services Inc. reported net income of $2.39 million in the third quarter of this year. Profits surged 171% from the $880,907 pocketed a year ago. 
Revenue also rose 6.4% to $101.87 million in the quarter ending Sept. 30.

The quarterly net income for Fort Smith-based Arkansas Best Corp. more than doubled the $6.518 million reported during the third quarter of 2012, and the revenue was up almost 8% compared to the 2012 quarter. Helping fuel the improved results was a 4.3% uptick in tonnage during the quarter and a 4.5% increase in per-day shipments.

Lowell-based J.B. Hunt’s net income rose 14% to $89.47 million in the third quarter. On a per-share basis that equates to 75 cents, compared to 65 cents per share earned a year ago, falling short of the 78-cent average consensus from two dozen analysts that regularly follow the company. Total revenue rose to $1.435 billion, up 10.8% and inline with expectations for the third quarter period.

However, Van Buren-based USA Truck again posted a quarterly loss, but the loss was lower than expected. Cash flow improved and revenue was up almost 14% – overall a much-needed improvement for a company facing a hostile takeover and five consecutive years of losses. Also, The 6 cent per share loss was better than the consensus estimate of 10 cents per share.

Vinh Long, a Vietnamese furniture manufacturer, will invest $5 million to locate an operation in an existing building in Morrilton that will employ 75 people.

The company, which produces home furnishing products made from natural fiber mixed with industrial materials, will locate in the former Bosch building in Morrilton.
www.vinhlong.com.vn/

Vietnam’s Ambassador to the U.S. Nguyen Quoc Cuong joined Madam Phan Thi My Hanh, Chairman of the Board and General Director for Vinh Long at during the Thursday (Nov. 21) announcement that included Gov. Mike Beebe.
 
“We see great potential for wood-based products manufactured in Arkansas for several reasons, including the fact that Arkansas’s sustainable supply of raw materials fits into our global vision of creating a better life for all people,” Madam Hanh said in the statement. “Strong support from the Arkansas Economic Development Commission and city officials has allowed us to speed up our timeline to get our product to market quickly and efficiently.”
 
“Vinh Long’s investment in the State of Arkansas shows the growing business relations between Vietnam and the United States,” Ambassador Cuong said. “As our two countries are embarking on common endeavors, especially the Trans-Pacific Partnership negotiation, more jobs and economic growth will be created, here in the United States as well as in Vietnam. I wish Vinh Long – Arkansas Ltd. great successes.”

Vinh Long-Arkansas Ltd. plans to begin production in summer 2014. The company will begin hiring this spring. Vinh Long Import-Export Manufacturing Joint Stock Company was founded in 1976, since starting operations from a small weaving group representing for local women. The company has grown to become one of Vietnam’s largest natural fiber manufacturers. With 850 of in-house employees and nearly 10,000 home weavers, the company is a key player in the natural fiber manufacturing industry.

“Arkansas remains a popular choice for international investment, and we appreciate Vinh Long's decision to bring this operation to Morrilton,” Beebe said in a statement. “Companies around the world continue to recognize that our location and workforce make Arkansas an ideal site for expansion.”

Chuy’s, the Austin-based restaurant opening in Rogers in January, announced its Northwest Arkansas charity partnership with the Sunshine School and Development Center, a nonprofit organization dedicated to developing and enriching lives of individuals with disabilities.
 
In line with its long tradition of community involvement, additional fundraisers for Northwest Arkansas Sunshine School and Development Center will be held at Chuy’s preopening events offering invited guests an exclusive taste of Chuy’s before the restaurant’s official opening.
 
“We’re honored to be named as the charity partner for Chuy’s Rogers,” said Greg Parker, board president of the Sunshine School and Development Center. “We’re thankful for this new partnership and impressed by Chuy’s commitment to our community. Their support will be vital to helping us continue to offer year-round programs for families and children with developmental disabilities.”
 
The Sunshine School and Development Center provides developmentally appropriate learning and therapeutic opportunities to young children who have been identified with developmental delays. Through outside funding and support, the school is able to offer tuition replacement to a limited number of students 18 months of age and older.
 
“Chuy's was built on the foundation of giving back to our communities,” said Jason Crane, local owner/operator of Chuy’s Rogers. “We’re excited to begin a life-long partnership with Sunshine School and Development Center that helps so many northwest Arkansas children and families.”
 
Chuy’s Rogers will open at 4889 W. Pauline Whitaker Parkway on Tuesday, Jan. 14.
 

Thirty-seven teams of high school business students made their pitches Nov. 21 to “loan committees” at the University of Arkansas at Fort Smith to seek funding for the businesses they want to start and operate until spring.
 
Dave Robertson, director of the Family Enterprise Center at UAFS, said Craig Pair, local entrepreneur and business owner, was the catalyst of the program when it began in 2007. Robertson has been the on-campus facilitator for the annual event since 2010.

The participating students come from business development classes at Northside and Southside high schools. Their presentations at UAFS were business plans developed this fall.

“Each team was allowed to request up to $500 in seed money to use to actually start and run their small business,” said Robertson. “Most asked for $100 to $200, and some didn’t need any cash up front.”

Robertson said local business people were on the panels that decided loan amounts for the students, with approximately $3,000 loaned to the students this year by UAFS. The high school instructors work with the students to open bank accounts and purchase supplies or inventories for their businesses.

“The neat thing about this is that for some of these students, this may be the first time that they have had to make a formal presentation to a group of adults,” said Robertson.

The plans covered a range of business entrepreneurial endeavors -- customized cell phone cases, car detailing, Web creating and hosting, algebra and geometry tutoring, monogrammed sports bras, handmade bass lures, seasonal gift bags, Mexican candy sales, specialty headbands and more.
 
The high school faculty involved with the project believe in the importance of the endeavors as well. Instructors include Judy Vosburg from Southside and Melinda Briscoe from Northside. Briscoe said her students are learning about the quality of work that is expected outside the classroom.
 
“They get to practice talking to adults in a business and social situation that some never get the opportunity to do,” she said. “This is a first ‘networking’ opportunity for many of my students. We practice shaking hands and making eye contact. What we might consider common knowledge, they need to practice.”
 
Briscoe asked her students what they gained from this experience, and the answers – which “just filled the air” – were varied.
 
“I heard how stressful it is to run a business, how important the details are and how it would feel to be the business owner,” she said, adding that others believe they have learned time management.
 
Vosburg believes the entrepreneurship activity at UAFS is important for her students, too.
 
“The students gain valuable experience and confidence when they present themselves and their business ideas to business owners and bankers,” said Vosburg. “They realize that it takes a lot of planning and detail work to get their businesses started, and through this process, some learn that entrepreneurship is not for them and some realize it is and they want to do this.”
 
The student teams return to the UAFS campus next spring, with another group of panels judging their efforts and awarding first-, second- and third-place winners with UAFS scholarships.

Wal-Mart Stores Inc. knows it needs a lesson or two in consumer convenience. It’s true the behemoth’s supercenter offers one type of convenience — one-stop shopping. But weaker customer traffic patterns and impatient consumer behaviors have prompted Wal-Mart to test its own version of the quick-trip convenience store at one of the busiest intersections in its hometown of Bentonville.

Wal-Mart spokeswoman Deisha Barnett told The City Wire that the small convenience store under construction near the intersections of Walton Boulevard and S.E. 14th St., will open sometime in the spring of 2014.

“The store will offer customers a quick and easy solution for gas, snacks and beverages, and other staples like milk, bread and eggs. We know this type of convenience store is popular with customers. We’re excited about the opportunity to test a new store and learn,” Barnett said.

A typical convenience store is roughly 2,500 square-feet, the same size as the retailer’s three college campus stores. The new convenience store model in Bentonville will sell fuel, unlike the campus stores at the University of Arkansas in Fayetteville, Arizona State University in Tempe and the Georgia Institute of Technology in Atlanta.

Wal-Mart continues to report weakening traffic and a decline in stock-up trips over the past several quarters and at the same time has recognized a meaningful jump in those consumers purchasing smaller baskets of fresh items.

Analysts applaud Wal-Mart for this latest test in the convenience format, as the retailer has the opportunity to leverage huge scale for the low prices, but also give the consumers the time savings they crave.

“Testing a Wal-Mart branded convenience store makes sense given the retailer’s push into smaller Express and Campus stores. They still have a lot to learn in this area and testing multiple small store formats allows them to zero in on what works and what doesn’t,” said Jason Long, CEO of Shift Marketing Group.

Carol Spieckerman, CEO of New Market Builders, said convenience is the key word for Wal-Mart and other retailers, because that’s want consumers are demanding.

“Although they have downsized from the mega supercenters to smaller Neighborhood Markets and Express formats (at 45,000 to 10,000 square feet, respectively,) it may be a stretch to call them convenience stores,” Spieckerman said.

WHAT’S TO GAIN
With nearly a half billion in annual sales, one might ask what can Wal-Mart can hope to gain with it’s own version of a 7-Eleven, Kum & Go or Casey’s General Store.

A former Wal-Mart buyer recently told The City Wire there is plenty the retailer can learn from a testing lab in its own backyard, including pricing strategies, traffic patterns, consumer behaviors in the quick trip format and experimenting with unique merchandise offerings that could turn the convenience store model on its head.

Spieckerman said if Wal-Mart initial tests prove successful, Wal-Mart will gain access to a new customer base.

“Given Wal-Mart’s highly-developed supply chain, particularly in fresh, it will go in with a huge advantage. This is particularly true as convenience stores evolve from selling beef jerky, cigarettes and hot dogs on metal rollers and into becoming destinations for healthy snacks and meal occasions,” she added.

In the highly competitive world of retail, Wall Street continues to watch Wal-Mart’s deteriorating comp sales while other big boxes like Costco remain their “darling choice”.

“Testing a convenience store is a big signal to Wall Street that the company is working diligently to turn around its recent sales woes. It could also be a competitive signal to current and would-be competitors that Wal-Mart isn’t going to blindly stand by and concede sales to smaller stores any longer,” Long said.

NPD Group recently reported some interesting finds about the convenience store format, noting that impulse buys were more prevalent by student shoppers who are one of the most loyal to this format, behind Hispanics. The firm also found that 65% of convenience store shoppers consume their purchase within one hour of purchase. This is 36% at traditional grocery and 47% at drug and dollar stores.

Robin Sherk, analyst with Kantar Retail, said the consumer quick trips are the fastest growing segment in brick and mortar retail today and it’s troublesome for big boxes that aren’t often thought of in that context. She said this latest experiment should give Wal-Mart ample opportunity to tweak their business toward convenience that perhaps could be transferred to other larger formats.

MINIMAL RISKS
While the experts believe this local convenience store will serve as a lab that allows Wal-Mart to experiment with pricing trade-offs in exchange for the time-convenience, they warn there could be some risk to Wal-Mart’s core identity.

“We have to wonder if Wal-Mart’s C-store pricing be similar to existing supercenter stores. In general, C-stores charge more to offset lower sales velocity, and I would expect the same here. But charging C-store prices could dilute Wal-Mart’s position as the low price leader,” Long said.

The experts agree that Wal-Mart is playing it safe by putting its first convenience store in a market it already owns. Long said having just the one store in their backyard could possibly skew Wal-Mart’s results to the positive. He said the company will need to test in other markets to get a more accurate read. Barnett said there are no plans for any additional convenient stores at this time.

NPD Group found that Hispanics are the largest demographic to use convenient stores by nearly three times the category purchases of non Hispanics. This raises the question why Wal-Mart didn’t look at south Texas or some other largely Hispanic market to test this new format.

Spieckerman said Wal-Mart clearly is not afraid to test nearly every aspect of their gigantic business to improve insights on what shoppers want today, and this a nimble-like behavior becoming somewhat synonymous with this clunky retail giant.

BY THE NUMBERS
$4.5 million: The price Wal-Mart paid for the 2.01 acres for the building site.

9/11/2013: The date of property purchase by Wal-Mart Stores Inc.

2,500 square feet: The approximate size of the new convenience store, one-fifth the size of an Express Store.

8: The number of convenience stores that could fit inside one typical Wal-Mart Supercenter.

Members of NorthWest Arkansas Community College’s public relations and marketing team received six awards in the District 4 Medallion Awards competition conducted by the National Council for Marketing & Public Relations.
 
District 4 includes Arkansas, Colorado, New Mexico, Oklahoma, Texas and Wyoming. The National Council for Marketing & Public Relations is the only organization of its kind that represents marketing and PR professionals at community and technical colleges. Awards were presented earlier this fall at the District 4 conference in Lubbock, Texas.
 
The local community college staff earned three gold awards – in government relations or community relations, communication success story and promotion of a special event, one silver award in fundraising campaign, and two bronze awards in social marketing and in feature writing.
 
The team includes:

Steven R. Hinds, executive director of public relations and marketing;
Rob Hanlon, director of marketing;
Chris Holtman, public relations and social media specialist;
Debbie Miller, communications specialist;
Justin Froning, graphic designer;
Brian Clark, graphic artist; and
Daniel Yeager, social media coordinator.

Tara Berry and Micah Milligan, former graphic designers at NWACC, also contributed to the projects that earned district honors.

Union-backed groups and individuals announced Thursday (Nov. 21) a series of protests planned at Wal-Mart Stores on Black Friday and at the home office on Friday (Nov. 22), the one year anniversary of last year’s holiday protest.

Protestors called attention to the National Labor Relations Board’s announcement earlier this week that found Wal-Mart Stores illegally threatened "reprisal" against workers who protested on Nov. 22, 2012, in a number of states where strikes were held.

The NLRB has asked Wal-Mart to settle the claim or risk a suit being filed in the coming weeks. Wal-Mart said it is looking into the next steps and would soon make a decision regarding the request for settlement.

On Friday morning (Nov. 22), the workers who claim they were fired after last year’s protest will visit the home office to urge Wal-Mart to live up to the anti-retaliation policy it professes to follow, according to an email announcement from Making a Change at Walmart.

“We know that there are more labor events planned in the coming days. We certainly respect the unions’ right to protest,” said David Tovar, spokesman for Wal-Mart Stores Inc.

In an email to the media on Thursday, Tovar posed the question: How many of the people attending the planned strikes are current Wal-Mart associates? Do any of them work at this store?

He shared an infographic that claims the 30,000 workers and supporters that reportedly took place in strikes and protests last year is false. Wal-Mart said 5 of its workers walked off their shifts and 120 workers participated in demonstrations, while more than 1 million other employees worked on Black Friday. Tovar said the largest union-sponsored event took place in Los Angeles, with one Wal-Mart employee protesting for every 25 union sponsored protestors.

He said Wal-Mart welcomes a broader conversation around the economy and service industry jobs.

“As a large employer with many entry level jobs, we have a responsibility to be a part of this conversation, and you’ll see us engage in it over the coming weeks and months. We must all work together in a constructive manner to rebuild America’s middle class. Creating good jobs and real career opportunities means expanding education, training, and workforce development and we’re ready to do our part,” Tovar noted in the email.

A corporate disagreement over an alternative fuel plant, new jobs for Springdale and the redemption of a former fallen Arkansas political star are part of the Northwest Arkansas Friday Wire for Nov. 22.

NEWS & ANALYSIS
• A dynamic dispute
What began with much fanfare and a public relations chest-thumping about alternative energy has become a divisive issue among the once harmonious partnership of Springdale-based Tyson Foods and Tulsa-based Syntroleum Fuels.

The two companies can’t agree on when to restart their Dynamic Fuels plant in Geismar, La. Every month the plant sits idle each partner burns though $1 million in cash to support a facility that is fully staffed and on-standby mode. Aside from the monthly cash burn, Syntroleum execs estimate the venture has lost out on roughly $20 million in potential sales since July because the partners can’t reach amicable restart terms.

The City Wire asked Tyson execs for an update on the plant operations during Monday’s earnings call with the media after CEO Donnie Smith said last quarter the plant would not be restarted as long as its partner (Syntroleum) was shopping its interest with potential buyers. On Monday, Smith simply said the partners had not reached a restart agreement and declined to discuss the matter any further.


Stinebaugh said there are multiple interested parties involved in due diligence to acquire Tyson Foods' interest in Dynamic Fuels and there is nothing materially wrong with the plant. He said the partners have had different interpretations of the agreement terms.

The watch is on to see if there is a corporate divorce, and if it is a calm divorce or otherwise.
www.thecitywire.com/node/30545

• Near the closing chapter?
K. Vaughn Knight, a Northwest Arkansas attorney and one-time associate with Brandon Barber, was found guilty on eight charges related to money laundering and fraud related to Barber’s messy bankruptcy.

Barber, once a high-profile developer during the heady days of seemingly non-stop Northwest Arkansas commercial development, was arrested March 20 on several federal charges related to fraud and his bankruptcy filing.

Of the six indicted so far in the Barber case, four have plead guilty, Knight was found guilty and David Fisher was found not guilty in an alleged role to inflate real estate sales prices. In addition to Barber, the other conspirators to plead guilty were New York attorney James Van Doren, 37; Jeff Whorton, 45, of Johnson, Ark.; and Brandon Rains, 31, from Springdale.

The sentencing for those involved could happen in the first quarter of 2014, which could close the book on this white-collar crime drama that’s unfolded during the past seven years.


ICYMI
Following are a few stories posted this week on The City Wire that we hope you didn’t miss. But in case you missed it ...

• A Long Road Back
Former Arkansas Attorney General Steve Clark details his long road back when he fell from grace after a felony conviction for theft of property while serving as AG in 1980.
According to Clark, the days following his conviction only seemed to emphasize the true weight and reality of the situation.


“Where you would get invitations to give 500 speeches a year and 500 events, your phone didn’t ring,” said Clark. “Where you were having people walk across the street to say to you, ‘when you’re my governor, I’m going to be so proud’ – now they see you coming, so they walk to the other side of the street.”

• Jobs coming to Springdale
An estimated $3.2 million expansion of the American Tubing plant in Springdale is expected to create 50 new jobs and boost the company’s annual payroll to $1.35 million. The company now employs around 160.


The Springdale-based company manufactures copper components used in the air conditioning and refrigeration industries. Company products are also used by defense industry companies. The expansion will add aluminum components to the company’s product portfolio.

NUMBERS ON THE WIRE
$1.13 billion: The value of homes sold through October in Benton and Washington counties. Agents have sold 6,172 homes through the first 10 months of 2013.

10,608: The number cars and trucks America’s Car-Mart sold during the recent quarter ending Oct. 31.

2.5 million: The number of store item combinations one replenishment manager at Wal-Mart is responsible for — 75 suppliers and 700 items that are in 3,500 stores.

$20-plus million: Amount of money raised to fund the planned $28.5 million Amazeum children’s museum in Bentonville near the Crystal Bridges Museum of American Art.

OUTSIDE THE WIRE
• Apple's new headquarters gains approval of Cupertino City Council
The Cupertino City Council voted unanimously Tuesday to reduce the annual tax break it gives Apple (AAPL) -- America's most valuable company by market capitalization, with a net income last year of $41.7 billion -- by 15 percent. Having wrung that concession from its richest corporate resident, the council then voted unanimously to give its final blessing to Apple's proposed new headquarters. The spaceship-shaped building has now officially landed.

• A Dow Jones record
The Dow industrials closed above 16,000 for the first time on Thursday as stocks rebounded from three days of weakness, after economic data pointed to a slowly improving labor market and subdued inflation.

• A game changer
The Democratic-controlled U.S. Senate, in a historic and bitterly fought rule change, stripped Republicans on Thursday of their ability to block President Barack Obama's judicial and executive branch nominees.

WORD ON THE WIRE
“Experts estimate that (big data) will grow 40 times over the next six years. This will make ranking and prioritizing data that much more important and that’s what DataRank does better than anyone.”
– Ryan Frazier, a founder of Fayetteville-based DataRank, on the business model of the upstart company

“I woke up one morning as a ‘who’s who.’ I went to bed that same night a ‘who’s he?’ It happened just about that quickly.”
– Steve Clark, president of the Fayetteville Chamber of Commerce, on the sudden end of this political career in 1990

“Retail is detail and there is a lot to understand, from supply chain flow, item set-up, modulars, in stock, it’s all important.”
– Mike Graen, former Wal-Mart marketing executive and newly named director of Crossmark Collaboration Center. about the need for Wal-Mart suppliers to understand the retail system

“Get rid of Sam’s Club. ... It doesn’t belong in the company especially when the focus in clearly on investing online and winning internationally.”
– Brian Sozzi, CEO of Belus Capital Advisors, about the on-again, off-again debate on whether Sam’s Club should become a company separate from Wal-Mart Stores Inc.

A possible big gamble on a country club, an investment spark in downtown Fort Smith and the success of a Catholic school principal are part of the Nov. 8 Friday Wire for the Fort Smith region.

NEWS & ANALYSIS
• Club money
Can they do it again?

That’s the question many have about Lance Beaty and Dr. Stephen Nelson, partners in FSM Redevelopment Partners. That’s the company that took a financial gamble on what has proven to be a successful makeover of the former Phoenix Village Mall property and is now considering at least a $7 million deal to acquire and renovate Fianna Hills Country Club in Fort Smith.

Beaty has confirmed he is working with club owners David Mille and Jim Shields on buying the club and 18-hole golf course. Both sides are in the due diligence phase, with a goal to close on a deal before the end of the year.

It could prove to be an interesting makeover for the more than 40-year-old property if the deal goes through.

• Downtown spark?
Speaking of interesting investments, Fort Smith businessman Steve Clark says renovation of the historic Friedman-Mincer building in downtown Fort Smith is on track, but that it is “impossible to fully appreciate” what it has taken just to get the structure to the point where architects and designers could begin work on renovation details.

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. Clark announced in May he would restore the structure and move his Propak corporate offices to the building.

Let’s hope Clark’s progress continues and that it has a positive impact on the east end of Garrison Avenue in downtown Fort Smith.

ICYMI
Following are a few stories posted this week on The City Wire that we hope you didn’t miss. But in case you missed it ...

• ‘Significant’ changes possible for Fianna Hills Country Club
The company that took a financial gamble on what has proven to be a successful makeover of the former Phoenix Village Mall property may soon invest at least $7 million in the acquisition and renovation of the Fianna Hills Country Club in Fort Smith.

• A Long Road Back
Former Arkansas Attorney General Steve Clark details his long road back when he fell from grace after a felony conviction for theft of property while serving as AG in 1980.
According to Clark, the days following his conviction only seemed to emphasize the true weight and reality of the situation.

• Education dedication
Sharon Blentlinger is pretty much a rock star in the world of parochial schools. She has been at the helm of Immaculate Conception Elementary School's leadership for 27 years, after serving as a teacher there for nearly a decade.

NUMBERS ON THE WIRE
$7 million: Initial estimate from FSM Redevelopment Partners on the cost to acquire and renovate the Fianna Hills Country Club in Fort Smith.

1,470: Number of homes sold in Crawford and Sebastian counties during the first 10 months of 2013, ahead of the 1,357 sold during the same period of 2012.

$176,072: Estimated economic impact to the Fort Smith regional economy from the teams gathering to play in the Heartland Conference volleyball tournament at the University of Arkansas at Fort Smith.

100+: Number of GAP stores in which a t-shirt designed by Danielle Kling of Muldrow, a University of Arkansas at Fort Smith graphic design student, is being sold.

OUTSIDE THE WIRE
• Apple's new headquarters gains approval of Cupertino City Council
The Cupertino City Council voted unanimously Tuesday to reduce the annual tax break it gives Apple (AAPL) -- America's most valuable company by market capitalization, with a net income last year of $41.7 billion -- by 15 percent. Having wrung that concession from its richest corporate resident, the council then voted unanimously to give its final blessing to Apple's proposed new headquarters. The spaceship-shaped building has now officially landed.

• A Dow Jones record
The Dow industrials closed above 16,000 for the first time on Thursday as stocks rebounded from three days of weakness, after economic data pointed to a slowly improving labor market and subdued inflation.

• A game changer
The Democratic-controlled U.S. Senate, in a historic and bitterly fought rule change, stripped Republicans on Thursday of their ability to block President Barack Obama's judicial and executive branch nominees.

WORD ON THE WIRE
“I applied for about 40 jobs. I have a pretty good resume, until you get to that part that says alcoholic and felon."
– former Attorney General Steve Clark speaking about his journey from a rising political star to convicted felon to his pardon by then-Gov. Mike Huckabee to his current role as President and CEO of the Fayetteville Chamber of Commerce.

"It's a pretty big detail. That's a pretty big detail, when you're looking at alcohol sales and it looks like you're going to circumvent this board to do that. That's what it looks like to me."
– Sebastian County Justice of the Peace Shawn Looper, addressing County Judge David Hudson during Tuesday's (Nov. 19) Quorum Court meeting about media reports that the Parks Advisory Board had discussed pursuing annexation of the golf course at Ben Geren Regional Park into the Fort Smith city limits

"Food pantries are starting to buckle. Each has only a certain level of support to give the community. Some are reducing the amounts of food they give. Others are reducing their hours. We've even had closures. Those with the ability to give to help are asked to help local food pantries with food, funds or volunteer help.”
– Ken Kupchick, director of marketing and development for the River Valley Regional Food Bank, said about the rising demand for food support in the Fort Smith metro area

Arkansas’ jobless rate rose to 7.5% in October, the highest level for the year, thanks primarily to the largest number of unemployed in the state in the past 20 months and a slight decline in the labor force size.

The October jobless rate was up from the 7,4% in September and higher than the 7.2% in October 2012, according to the Friday morning (Nov. 22) report from the U.S. Bureau of Labor Statistics.

Arkansas’ labor force was an estimated 1.321 million in October, down just 0.05%, compared to September and down almost 2% compared to October 2012.

The number of employed in Arkansas during October was 1.221 million, a drop of 2,096 compared to September and a drop of 29,575 compared to October 2012 – or down 2.36%.

Arkansas’ annual average jobless rate fell from 7.9% during 2011 to 7.3% during 2012. Also, October marked the 57th consecutive month that Arkansas’ jobless rate has been at or above 7%.

The number of unemployed rose to 99,570 during October, up from the 98,403 in September and up 2.2% compared to the 97,402 in October 2012.

Greg Kaza, director of the Arkansas Policy Foundation and an economic researcher, said the October report does not reflect well on the state’s economy.

“Today's employment report for October continues the unprecedented decline in Arkansas' civilian labor force. The decline is documented in state labor market records that date to the mid-1970s,” Kaza noted in a statement to The City Wire. “Arkansas' civilian labor force contracted to 1,321,500 in October, well below its level (1,352,800) in June 2009 when the Great Recession ended and a new expansion started.”

ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during October was an estimated 254,100, up from 252,000 in September and well ahead of the 246,500 during October 2012.

Manufacturing jobs in Arkansas during October totaled 155,500, down from the 155,400 in September and below the 155,200 in October 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 October was 215,000, up from 214,300 in September and below the 216,000 during October 2012.

The state’s Education and Health Services sector during October had 176,600 jobs, up from the 175,700 during September and up from 173,300 during October 2012. Employment in the sector is up more than 25% compared to October 2003.

Arkansas’ tourism sector (leisure & hospitality) employed 102,600 during October, up from 101,900 during September, but below the 103,400 during October 2012. At a revised 103,700, January 2013 marked a new employment high in the sector.

NATIONAL DATA
The BLS report also noted that 38 states had unemployment rate decreases from a year earlier, 10 states had increases, and two states had no change. The national jobless rate during October was at 7.3%, and was down from the 8.1% in October 2012.

Nevada had the highest unemployment rate among the states in October at 9.3%. The next highest rate was in Rhode Island with 9.2%, followed by Michigan at 9%. North Dakota again had the lowest jobless rate at 2.7%.

The October jobless rate in Oklahoma was 5.5%, up from 5.4% in September and 5.2% in October 2012.

Missouri’s jobless rate during October was 6.5%, down from 6.9% in September and up compared to 6.7% in October 2012.

Dennis Wemyss, a graphic design student at the University of Arkansas at Fort Smith, and Josh Pham, an information systems student at the University of Arkansas at Fayetteville, planned to be observers at a business event last weekend. Instead, it ended up being one of the most important weekends of their lives.

The two friends, both of Fort Smith, attended Startup Weekend NWA on Nov. 15-17 simply planning to network with other professionals and assist would-be entrepreneurs as they vied to win the competition that awarded the best startup venture.

Instead, they decided to enter their own business concept – a website called Exposure that connects photographers with potential clients – into the competition, winning first place, earning a slew of prizes and receiving publicity that they say will change their lives forever.

“It was definitely the biggest weekend of my life,” Wemyss said. “I’ve already received job offers and internships from people I’ve never heard of.”

Pham echoed Wemyss’ statements.

“I probably wouldn’t give this weekend up for anything,” he said. “I’m thrilled that we got first place, but a lot of the credit goes out to the people who put together Startup Weekend.”

Pham had conceived of the winning idea last year but had yet to develop it into an actual business model before the weekend of the competition. That proved convenient, as the competition requires contestants’ concepts for businesses to be nothing more than a basic premise that they will develop into a working business model over the course of the weekend-long event.

Pham and Wemyss estimated they worked a total of 42 hours developing the business over the weekend before the final presentation on Sunday. And Wemyss, who had no background in public speaking, pitched the idea to judges and won Best Pitch in addition to the team placing first.

Wemyss said the conciseness of their presentation, coupled with the fact that they only had three team members – the third being Darrick Buralli, a programmer at Dillard’s in Little Rock – helped them to win the competition.

“We addressed a solution to a problem, and we were concise with everything, and I think the judges liked that,” he said. “The average number of people on a team was seven, and we were blessed to have a small team because a lot of larger teams had problems agreeing on what they wanted to do.”

Judges included a Chief Technology Officer from Dillard’s and several Chief Executive Officers of local businesses. The award for first place included three hours of legal consulting from Smith & Hurst, 30 hours of brand consulting from the advertising agency Stone Ward, printed branding materials from the brand agency Moxy Ox, four hours of technical consulting from RevUnit, $300 in field agent credits, and one year gold subscription to the web design website Treehouse for the entire team.

Pham said Exposure was the employment website Monster and image hosting website Flickr “fused into one.”

“Exposure lets you connect to a photographer wherever you need a photograph taken,” he said. “So let’s say you’re going to Hawaii for your honeymoon. You’re not going to want to pay to fly a photographer out there. Instead, you can put a request on our website, and photographers in Hawaii will reply to the request and submit portfolios to show you what work they’ve done. From there, you can decide which photographer you’d like.”

Wemyss added that it has benefit for the client and the photographer.

“It gives the photographer work and a chance to build his or her portfolio,” he said. “It works out for both parties.”

A first-place finish at the local competition now enters them into the Global Startup Battle, where their idea will compete against others from around the world. But the two aren’t as worried about the global competition as they are about getting their business off the ground.

“Our goal is to have Exposure functioning by the early spring, and by summer, we’d like to have good investment and rolling in regular customer bases,” Pham said. “This competition gave us a great head start.”

Startup NWA Weekend is a grassroots movement to help grow entrepreneurship at a local level. Startup Weekend organizers and facilitators can be found in over 200 cities around the world. Sponsors of Startup NWA Weekend included Innovate Arkansas, Arkansas Business, Smith & Hurst and The Iceberg.

NorthWest Arkansas Community College has opened registration for its spring 2014 semester that begins Jan. 13 and concludes May 2.
 
The schedule for the spring semester includes day, evening and Saturday classes with courses scheduled on the Bentonville campus, at The Jones Center and Washington County Center sites in Springdale and at the Farmington High School campus. Culinary and Hospitality Management courses, General Education Development classes and Adult Education classes are offered in the Center for Nonprofits at St. Mary’s in Rogers. 



NWACC also provides a variety of courses online, including a structured degree track tailored to fit the needs and schedules of working adults. Students progress through the online degree program as a group (or cohort), and by following the track, they can obtain an associate’s degree in two years.

New courses offered in the spring include:
Sociology - Caribbean Societies; 

iOS app development, iPod Touch and iPad;
Philosophy - Critical Thinking;
Information Literacy Skills;
Genetics;
Mechanical engineering dynamics;
Competitive soccer;
Health Information: disease pathology and coding; and
Fundamentals of sustainability.

Kathryn Birkhead, director for diversity and inclusion at NorthWest Arkansas Community College, recently completed a certificate program in diversity management at Cornell University.
 
Cornell’s School of Industrial and Labor Relations conducted the training which provided participants the opportunity to gain in-depth knowledge in an area that is complex and important to organizations in creating a competitive workforce.

The program required the completion of six workshops for a total of 72 units.

Topics covered include:
Law of Equal Employment Opportunities;
Fundamentals of Diversity Initiatives;
Strategic Diversity Recruiting and Retention;
Difficult Issues in Diversity;
Effective Affinity Groups; and
Effective Diversity Councils.  
 
Birkhead joined NWACC in 2012. She previously was director of diversity and inclusion for The Jones Center in Springdale.

Wal-Mart Stores Inc. announced that its board of directors has appointed Pamela Craig, retired chief financial officer of Accenture, as a new member of the company’s board, effective immediately.

Craig became the fifteenth member of the board and will also serve as a member of the company’s Audit Committee.

“Pam Craig is a well-respected leader and ideally suited to serve on Wal-Mart’s board given her extensive financial experience and her understanding of the vital role technology plays in business today,” said Wal-Mart Chairman Rob Walton. “The domestic and global perspectives she gained during her 34 years with Accenture give her unique insight into managing a global company that will be invaluable to Wal-Mart.”

Craig, 56, has extensive experience in finance, technology and operations from her time at Accenture, a global management consulting, technology services and outsourcing company. She served as the company’s chief financial officer from October 2006 until July 1.

In that role, she was responsible for the company’s corporate controllership, corporate development, treasury, tax, finance operations and strategic planning and analysis. Craig retired from Accenture on Aug. 31.

“I look forward to working with the board and executive management team and to helping Wal-Mart maintain its retail leadership role,” Craig said. “In an unpredictable global economy I believe Wal-Mart is well-positioned for continued success through its stores and growing eCommerce business, disciplined financial approach and leadership position on important issues facing society.”

Craig holds a master of business administration degree from New York University and a bachelor's degree with honors in economics from Smith College. She currently serves on the board of directors and as audit committee chair for Akamai Technologies and on the board of VMware Inc.

November is a bittersweet month for fourth generation family banker Jon Harrell, who is the president of First Bank’s Northwest Arkansas region and new chairman of Harrell Bancshares of Hampton, Ark.

It’s been three years this month since First Bank purchased two branches – Rogers and Siloam Springs – from Signature Bank of Arkansas and Harrell took over as market president.

Earlier this month First Bank announced the acquisition of First Community Bank of Crawford County, which will help grow the southern Arkansas bank’s footprint on the western side of the Natural State.

But the news of this recent bank purchase was immediately followed by family tragedy as the bank’s board chairman, 72-year-old Searcy Harrell and father to Jon, was killed when the plane he was piloting crashed in Washington County. The senior Harrell was on his way to see grandson Max Harrell’s football game in Rogers.

This untimely death meant Jon Harrell would assume the role of board chairman for Harrell Bancshares, one of the oldest family owned banks in the state dating back to 1907.

 “The family owns 60% of the growing bank, with the balance owned by a few outside investors,” Harrell said. “My dad had been chairman for 20 years, taking over from his dad. I am the fourth generation Harrell to hold the seat.”

Banking professor and analyst John Dominick has known the Harrell family for 40 years. He first met Jon Harrell’s grandfather in 1970 when Dominick was the Arkansas Bankers Chair for the University of Arkansas.

“Then a few years later Jon Harrell was one of my banking students at the University of Arkansas, who later worked for Signature Bank where I serve on the board. This family has a long history of being fine bankers. They’re just good people who have managed to grow a very successful bank throughout many years,” Dominick said.

CRAWFORD COUNTY
Harrell said the recent acquisitions in Crawford County are an exciting opportunity for the growth of the First Bank brand.

The deal is subject to regulatory approval from the Arkansas State Bank Department and the Federal Deposit Insurance Corporation. Upon approval, which is expected in first quarter 2014, First Community will merge into First Bank. First Community had total assets of $67 million as of Sept. 30, the most recent filing with the Federal Deposit Insurance Corp.

“We like the staff in these locations and plan to keep them in place once the deal is complete. Our hope is to get in there and help work out some problem loans so we can begin to growth the business, following the same plan we had in Northwest Arkansas during the past three years,” Harrell said.

First Community Bank of Crawford County has been under enforcement actions with regulators since July 2012 and came under heightened scrutiny for capital deficiencies in September of this year. The pending purchase from First Bank will infuse the Crawford County bank with the capital it needs to shake free from the two enforcement orders.

The bank has reported losses of $1.031 million through three quarters of this year. Since 2010, the bank has lost more than $6 million linked to a steep rise in non-performing loans. At the same time the bank curtailed lending and its capital equity was eroded to “unsafe” levels, according to the federal enforcement orders.

Terry Carson, president of First Community, will become market president for Crawford County.

“Our bankers are looking forward to the opportunity of providing expanded financial services to our customers in Crawford and surrounding counties with the support of First Bank’s ownership and management team,” Carson recently noted.

Dominick said Crawford County is a competitive banking market showing signs of growth given its location along Interstate 40.

“I think First Bank will do just fine in this market,” Dominick said.

NWA GROWTH
It’s been exactly three years since Harrell took charge of First Bank’s two branches in Northwest Arkansas. He said the bank has expanded their loan portfolio by 50%, and nearly all of that growth came from the two Benton County branches.

First Bank reported total loans of $187.55 million as of Sept. 30, up 10% so far this year. Going back to 2010, the bank has grown its loans from $113.7 million, an increase of 65% during the three year period.

“We have been pleased with our growth in Northwest Arkansas and plan to open a new loan production office in Fayetteville in January,” Harrell said.

The bank has pocketed $1.825 million in net profits through three quarters of 2013. Since expanding into Northwest Arkansas in the fall of 2010 the Hampton-based bank has earned $6.79 million in net profits.

During the same period, the bank has managed to maintain exemplary capital ratios demonstrating it core financial strength. Dominick said the loan demand in western Arkansas is more robust than in south Arkansas where First Bank is based and operates thee different institutions. He said the recent acquisition in Crawford County added to the Benton County branches gives the First Bank some diversity, a good idea for any bank.

BY THE NUMBERS
$320 million: The estimated assets of the pro forma First Bank
$30.4 million: The combined capital equity of First Bank and First Community Bank
7: The number of cities where First Bank will have locations: Hampton, Camden, Junction City, Rogers, Siloam Springs, Van Buren and Alma.

Downtown areas continue to attract investment across Northwest Arkansas. Springdale and Rogers are actively working to boost their downtown exposure as retail growth has moved westward toward to Interstate 540.

When driving down Emma Avenue in Springdale, there’s a mix of old and new, but mostly old. Obvious efforts have been made to start sprucing up the downtown Springdale area but plans are about to explode. 



BOLD MISSION

The Downtown Springdale Alliance is comprised of business, civic and community leaders and the mission is to “create excitement for a diverse community to gather, shop, play and live.

The Historic Springdale District extends from Huntsville Avenue to the north, Maple Avenue to the south, Old Missouri Road to the east and Pleasant Street to the west.

In May 2013, the association approved a Springdale Downtown Revitalization Master Plan that contains four phases. This summer, the Springdale City Council approved the initial phase of that plan. Kent Hirsch, president of the association, said the $100,000 needed to complete the study came from the A&P Commission, Springdale Public Facilities Board and the City of Springdale.

The rest of the funds for the various phases are intended to come from almost entirely private resources, however. The initial cost estimates are about $20.6 million, not including paying for property acquisition, according to the master plan documents.

According to the plan documents, the master plan calls for several key features including:

• An open creek north of Shiloh Square;

• Closing Mill Street; 

• Removing the buildings on the west side of the Shiloh Square Block;

• Changing the traffic on Emma and Meadow avenues to one-way couplet and changing Johnson Avenue to one-way eastbound;
• Construction of a new town square south of Emma and east of Spring Creek;

• An open creek south of Emma Street;

• A new arch bridge south of Meadow Street for the Razorback Greenway; 

• Access to Spring Creek south of Meadow with stairs, ramps, terraces and planting; an
• Opportunities for new development along the creek and around the newly developed Square.

The various phases will be completed as funding is raised and the appropriate traffic and parking studies are conducted.

Over the years several groups have tried to beautify and restore downtown Springdale.



“If we don’t do it, we will have blight,” Hirsch said. “We need footsteps. We need people coming here to eat and for entertainment.”

The hope is to establish districts, including places of residence.

“This will drive the Springdale economy and improve the overall image of downtown,” he said.

SOULFUL DOWNTOWN

Nov. 15 was Kerry Jensen’s last day as director of Main Street Rogers as he resigned to be able to find a job where he could spend more time with his family. Dana Mather has been named interim director. 

Before leaving his post, Jensen took a few moments to discuss progress in Historic Downtown Rogers with The City Wire. 

The goal was to make downtown more attractive and therefore to attract more businesses, Jensen said.

“Downtown now has a soul,” he said. “It’s taken on a whole new life.”

In 2010, 26 new businesses came to the region and that number has remained steady or grown each year. As of late October, 23 new businesses had come into downtown. This is a gross number and does not include businesses that have left.

“We have very reasonable rent rates so we attract a lot of Mom & Pops and also lots of entrepreneurs,” Jensen said. “It’s normal to have some turnover. We’re pretty much filling up businesses downtown.”

Sometimes community members express concern over empty buildings but Jensen said most of the times those buildings are not available for lease either because they are being renovated from the previous tenant or the owner does not want to lease the property.

Rogers is another Northwest Arkansas community that does not have a centralized Square. That’s a double-edged sword at times, Jensen said.

“We have a larger area to claim as downtown but there’s also the issue of where to meet,” he said. “During Oktoberfest and (other events) we closed off a part of Elm Street and that gave people a starting point.”

Jensen said the downtown Rogers community has focused on what it has, not what it doesn’t have.

“We don’t try to be like anyone else,” he said. “We’re focused on what we do have and promote that.”

COOPERATIVE EFFORT

Mather said having a robust downtown area is the result of many years of cooperation with the city making substantial investments over the past five years.

“The city has invested in significant streetscape improvements including the removal of asphalt from historic brick streets, renovation and repairs to the brick streets, the intersection improvements that include flower beds for traffic control and beautification, and installation of period-appropriate modern street lights to improve safety and appearance,” Mather said.

The removal of the wooden awnings was undertaken through grants and private investment, Mather said, with significant input and oversight from several city departments.

“Downtown Rogers consistently runs above 90% occupancy of all available buildings for lease in the historic district. Interest in the downtown business district is high, but with few available spaces, things move quickly,” she said.

Steve Cox, vice president of economic development for the Rogers-Lowell Chamber, said new companies reaching out to Rogers often want to see downtown on their tours of the city.

“They know a city who cares about preserving downtown is one that not only cares about history and community and is going be a good partner for years to come,” Cox said.

FUTURE GROWTH

Although beautification efforts have already taken place in Rogers, the city plans for future development and growth in the area. Steve Glass, Rogers' planning and transportation director, said the city is in the process of hiring a firm to develop a downtown future growth plan.

“It will include a lot of public meetings and economic research,” Glass said regarding the plan.

Glass said it's important maintain a healthy downtown economic district, despite the burgeoning growth toward westward toward I-540.

“Downtown has a rich history and viable businesses,” he said. “It’s our gateway from the north. There are many historic buildings there and you just can’t get that in a new development.

“(Downtown Rogers) is already doing well, we are trying to look at what we want it to be in the future.”

Tyson Foods announced Monday (Nov. 25) that Mike Roetzel will become the group vice president of operations for the meat giant, reporting directly to CEO Donnie Smith.


Roetzel is an industry veteran who began his career with Tyson Foods in 1986 as the controller for the transportation and warehouse division. He has also served as director of sales accounting and held numerous other management positions such as vice president of commodity purchasing. He was most recently the senior vice president of purchasing since 2008.


This new top corporate position came about as chief operating officer Jim Lochner recently announced his pending retirement next year. In the meantime, while Lochner retains the COO position, he will relocating back to South Dakota, where Tyson Fresh Meats is headquartered as he oversees the transition of new leadership in the beef and pork division.


Based in Springdale, Roetzel will oversee several of the company’s shared services including:

• Information systems;

• Animal well-being;

• Distribution;

• Food safety and quality assurance;

• Environmental, and

• Health and safety.


Smith said following Lochner’s retirement the company will no longer have a chief operating officer position as the firm has restructured its top tier management, splitting the top management duties of its poultry and prepared foods segments.


Roetzel will be in charge of many of the day-to-day operations for the entire firm, while Noel White will locate to Springdale from South Dakota to head up the poultry division. At the same time, Donnie King will oversee the prepared foods segment through a major growth and investment phase.


Roetzel is a Springdale native who earned his bachelor’s degree in accounting from the University of Arkansas. He worked as a certified public accountant a short time later. He now lives in Fayetteville with his wife of 33 years, Julie.

Retail analysts lined up Monday morning (Nov. 25) to assess what might be behind Wal-Mart’s decision to appoint Doug McMillon as its CEO and discuss their thoughts on what to expect next at the retail giant.

There had been two candidates – Walmart International CEO Doug McMillon and Walmart U.S. CEO Bill Simon – in the running, according to public opinion. The Walton family and the rest of Wal-Mart’s board chose culture and merchant tenure as the two trump cards in McMillon’s hand.

Carol Spieckerman, CEO of New Market Builders, said McMillon’s international experience should be a plus in his role as CEO. She gave two reasons for her assertion.

“First of all, Walmart is perhaps the only international retailer poised to fulfill the promise of “global e-commerce” from an omni-channel perspective. Most if its U.S.-based competitors are still trying to figure out how to integrate bricks and clicks – Walmart is doing so on a global level and accelerating its efforts through strategic acquisitions such as Yihaodian in China. Secondly, Walmart’s international business is a terrific learning lab for its multi-format and localization efforts, both of which are critical to its omni-channel strategy, as these stores serve as distribution hubs for the thousands of unique items that Walmart offers online,” Spieckerman explained.

However, Spieckerman said McMillon’s challenges are significant.

“The term ‘merchant’ still gets thrown around in retail these days but the implications and expectations have to expand,” she said. “That is perhaps Mr. McMillon’s biggest challenge and opportunity as retailers evolve from their store-centric past and into harnessing digital-first strategies.”

SIMON’S FATE
Leon Nicolas, retail insight exec with Kantar Retail, wonders what the implications will be for the U.S. business, with McMillon's move to the top.

"For instance, will Bill Simon remain at the helm of Walmart US? If not, does Duncan Mac Naughton assume the helm of US operations? There could be a domino effect there," Nicholas said.

He said word in the industry for sometime has been that Simon could have political aspirations in his future, given his previous public service work in Florida.

Courtney Reagan, a retail analyst with CNBC, also said lots of eyes are now on Simon’s  fate wondering if he will also make an exit.

Brian Sozzi, CEO of Belus Capital Advisors, believes Simon will stay on as CEO of Wal-Mart U.S. because he is connected to the brand, but said at some point he could get pushed out. Sozzi, through Twitter, also said of McMillon: “New Wal-Mart CEO has been groomed for this spot, has touched all parts of organization”

Sozzi also said the decision to go with McMillon suggests the company has concerns about the future of its U.S business and that international growth in the near term may slow.

THE NATURAL
Others said the naming of McMillon has been in the works for some time as he as been prepped for the role and is the perfect candidate to lead Wal-Mart through these challenging and evolutionary times for retailers.

"We're encouraged by this," said Joe Feldman, a senior retail analyst at Telsey Advisory Group. "I would bet that very little would be different and think that's part of why the stock's barely moving at this point. It's going to be a seamless transition."

Wal-Mart shares (NYSE: WMT) rose slightly on the news trading at $80.42 up 61 cents in normal volume in the morning session. The shares have traded between $67.37 and $80.57 during the past 52-week period.

David Schick, retail analyst with Stifel Nicolaus, said the new is merely confirmation of what many thought would happen.

“Perhaps it will be an extra happy holiday for the McMillon family at home,” he said.

Schick said the decision doesn’t necessarily indicate more focus on U.S. and less on international, but it does underscore what has already been happening at the company as the retailer works on increasing its small store development in the U.S. and matching that intensity with the omni-channel strategy.

“I don't know that it's a deemphasis of international but there's new talking points and directions for the domestic business as part of their emerging story,” Schick said.

Budd Bugatch, senior analyst with Raymond James & Associates, agreed that McMillon was the heir apparent. He said the decision is “vintage Wal-Mart and an example of the retailer in a very rational way going about their business.”

FCPA WOES
One issue that won’t change even with a CEO transition is the ongoing investigation into alleged violations by Wal-Mart officials of the Foreign Corrupt Practices Act, according to Jeffrey Sonnenfeld, an expert in corporate succession and Dean of Executive Programs at Yale University. 

On CNBC Monday he reminded the public that Duke and former CEO Lee Scott have been implicated as having knowledge of alleged FCPA violations. They could face some legal action when the investigation is finished. He said the board seats of Duke and Scott could be in jeopardy pending the findings of the FCPA investigation.

Sonnenfeld said McMillon is a clean image and calm influence for the company going forward and he is already a board member, a position that Simon does not have.

The Arkansas Economic Development Commission (AEDC) on Monday (Nov. 25) announced a new initiative to better position Arkansas to compete for projects requiring large acreage. Those locations worthy of the “Advance Arkansas Sites” distinction must be ready for rapid industrial development and meet AEDC’s highest standards of quality.

Two large-acreage sites, the Little Rock Metro Mega Site and West Memphis Mega Site, are already on the website featuring the new program. Each location lists property information, demographics and workforce information to educate prospective businesses on the economic and environmental landscape of Arkansas.
 
“Arkansas must use every tool available to highlight our state’s economic advantages in a competitive global marketplace,” Gov. Mike Beebe said in a statement. “Companies looking to call Arkansas home need easy access to the right information that will immediately put us in the conversation for potential projects large and small alike.”
 
“It is imperative for our state to continue to find innovative ways to market our competitive advantages to those companies needing large-acre sites,” said Grant Tennille, executive director of the Arkansas Economic Development Commission. “Advance Arkansas Sites is a proactive tool that allows decision makers quick access to detailed information on Arkansas’s best, large-acreage sites.”

That traditional Thanksgiving dinner will cost a little less year thanks to lower turkey and milk prices, according to the Arkansas Farm Bureau. But before the feast can be digested, retailers promise to deliver a huge helping of pre-Black Friday bargains.

The 28th Annual Farm Bureau survey indicates $42.63 will feed a family of 10 this year,  which is a 5.5% savings from a year ago.

The statewide average is based on responses volunteers who surveyed food prices at 11 grocery stores and supermarkets across the state. They were asked to report the “best in-store price” of 12 items included in the meal. They are allowed to take advantage of advertised specials, excluding discount coupons and purchase requirements.

“The fact the cost of the traditional Thanksgiving dinner is more than $2 lower than last year remains a testament to the efficiencies of our food production system,” said Randy Veach, Arkansas Farm Bureau President.

LOWER PRICES
He said the savings are somewhat remarkable given the drought many farmers have endured the past several years. Food prices in the Natural State came in 13% cheaper than the $49.04 average reported in the national survey.

“Lower prices on turkey and sweet potatoes account for much of the price difference from a year ago. Turkey supplies have increased this year due to lower feed prices, while sweet potatoes benefited from this year’s milder growing conditions. Both of these items were negatively impacted by the heat and drought in 2012,” said Travis Justice, chief economist for Arkansas Farm Bureau.

After rising sharply two years ago, the average price of a 16-pound young tom turkey this year fell $2.26 to $15.59 (98 cents per pound). Turkey prices are higher nationwide. The American Farm Bureau reported an average of $1.36 per pound.

Milk, sweet potatoes and cranberries each cost less this year saving consumers nearly $1 on their traditional Thanksgiving meal. Other items included in the meal that saw modest price declines were a package of brown and serve rolls, frozen green peas, a pound of carrots, and half pint of whipping cream. These price decreases were mitigated by higher costs for stuffing mix, canned pumpkin, celery and frozen pie shells.

The $42.63 state average cost this year, is the best value consumers have seen since 2010, reversing a two-year higher trend.

PRE-BLACK FRIDAY
Retailers like Wal-Mart, Best Buy, J.C. Penney, Target, Toys R Us and Macy’s have announced they are open Thanksgiving evening and pulling overnight sales marathons through Friday night.

Despite a few protests regarding the Turkey Day deals, Wal-Mart said it will kick off its Black Friday specials at 6 p.m. Thanksgiving Day – this is a two-hour advance versus last year. Meanwhile, Kmart is set to open at 6 a.m., and will stay open for a full 41 hours straight.

Wal-Mart has sweetened the deal for its employees who work this Thanksgiving, providing them with dinner at work and a 25% discount. Duncan Mac Naughton, Walmart’s U.S. chief merchandising and marketing officer most employees are “really excited” to work the holiday.

“We appreciate each of our associates and the time that they dedicate,” he said.

Wall Street analysts said this year is expected to brutal for retailers who are each vying for more of the consumer wallet.

Wal-Mart has aggressively marketed toward consumers this year with price matching guarantees backed by an broad advertising campaign, said CNBC Courtney Reagan.

“I won’t be surprised if Wal-Mart picks up market share this year, because cash strapped consumers need and want those great deals Wal-Mart is offering online and in stores.” Reagan said.

REMAIN CLOSED
That said, other retailers like Costco, Sam’s Club, Dillard’s, Apple, Cabela’s and Home Depot has stood firm on their decision to remain closed Thanksgiving Day.

Paul Latham, Costco’s vice president for membership and marketing, told the Huffington Post that the warehouse club wants to give its employees time with their families, as they work especially hard throughout the holiday season and they deserve the day off.

Charles Redfield, vice president of merchandise for Sam’s Club, said the Wal-Mart subsidiary will close the clubs on Thanksgiving Day, but the Sam’s Club Black Friday Savings Event will begin at 7 a.m. on Friday, Nov. 29.

Dillard's also will close all 299 stores on Thanksgiving Day "to honor our associates with their family time," said spokeswoman Julie Johnson Bull.

HIGH STAKES

Between Black Friday and Christmas retailers will make between 30% to 40% of their total annual sales and with six less shopping days this year retailers across the board have already started giving Black Friday deals.


An estimated 33 million people, or 23% of those surveyed by the retail federation, said Thanksgiving will find them in stores at some point. Nearly 70% or an estimated 97 million consumers plan to be out shopping on Black Friday.

"It is evident that Americans are in the holiday spirit, despite their cautious approach to spending," said Pam Goodfellow, director of Consumer Insights at Prosper Insights & Analytics, the firm that polled more than 6,000 consumers for the National Retail Federation Survey.