Online grocery is here and poised for steady growth in the next decade with Amazon expected to lead the charge.

Multiple surveys reveal that 11% of consumers are already buying groceries online. A study by Brick Meets Click found more than 10% of the 22,000 shoppers recently interviewed had made a grocery purchase online in the last 30 days.

A white paper by Kantar Research last year, noted that 11% of shoppers had purchased grocery items online in the past 90 days. Of that, 56% purchased those groceries from Amazon and that was prior to the launch of Amazon Prime Fresh. Anne Zybowski, a retail analyst with Kantar Retail, notes that Amazon has set the competitive bar for the grocery industry.

“Responding to – and revolutionizing on behalf of – the shopper, Amazon is set to learn from its Fresh launch in Los Angeles. ... it expects to roll out to as many as 20 other markets by the end of 2014, if Los Angeles proves successful,” Zybowski said.


She said despite “conventional wisdom” and the limited yet growing availability of online grocery delivery models in the U.S. (Safeway, Fresh Direct, Peapod, Coburns), shoppers are already purchasing groceries online. Kantar Retail expects online grocery to grow at a compound annual rate of 26%, moving from 1% of the US grocery landscape to 5% by 2020.

Bricks Meet Clicks research notes the online grocery market today is poised for a moderate growth scenario to 10.7% over the next decade. Bill Bishop of Bricks Meet Clicks said with this scenario, Amazon is already a "disrupter" by taking market share from brick and mortar chains. He said Safeway and Wal-Mart are two other national grocers also playing in the place. Bishop suggests the market growth could escalate to 16.9% over the next decade if Amazon or some other large retailer launched a dramatic rollout.

The experts said online sales are growing in popularity even though the market is highly fragmented with some niche retailers in targeted areas like San Francisco and Los Angeles.

Zybowski said while online grocery will by no means replace stores, appealing to today’s connected shopper will be critical to driving future growth. The new value proposition is delivering on convenience without a hefty price tag. Retailers that find this balance will win in the medium to long term, according to the market watchers.

AMAZONFRESH CATALYST
She said AmazonFresh is the catalyst to grocers to reinvent how to deliver convenience to shoppers. She pegs Wal-Mart and Safeway as the two national retailers in the direct line of fire.

“When will Walmart To Go move beyond a pilot phase?” Zybowski wondered, given that it’s been tested since 2011 in San Jose and San Francisco, and more recently rolled out in Chicago and Denver.

As the largest national grocer and one of the few already testing a home delivery model, she wants to know when Wal-Mart plans to expand the Walmart To Go. Wal-Mart grocery executive Jack Sinclair told analysts in October that consumer demand is not enough to justify the economics of online grocery sales and home delivery. He said then that Wal-Mart had the logistics and supply chain in place to roll it out at anytime should the demand or economics be there to support it.

Safeway is a national grocery retailer that offers delivery services in the California market and perhaps the most directly impacted from AmazonFresh, based on the fees charged. Zybowski expects to see Safeway offer more promotions for frequent shoppers that could be enticed away by AmazonFresh.

Kantar also expects to see an increase in the click-and-collect options as more retailers find themselves losing share to Amazon. Such shopping is where a consumer orders their list online. The items are picked from the shelves by a merchant and packed at the retail store where the shopper goes to pay for the completed order. Kantar Retail has covered this concept during the past 18 months. They found several regional grocers such as Harris Teeter, ShopRite and Stop & Shop are experimenting with click and collect models or curbside pickup at the store.

Peapod is has experimented with drive-thru locations in the Chicago area. They also offer home delivery for a nominal fee and Kantar expects to see more experimentation from Peapod in the coming year.


NICHE PLAYERS
Relay Foods is an organic grocer that serves six metro areas between Baltimore and Washington, D.C. Relay president Arnie Katz said the niche grocer continues to grow its customer base each month. He said consumers order their products online and they can chose to pick them up at drop location or have them delivered home for a fee.

“We pack the products into bins and load trucks early in the morning, the truck driver will then set up at general location and the consumers drive up to truck and get their order. This is a sustainable method of delivery. The driver can make more than 20 deliveries in an hour’s time from a stationary site. We have 100 of these pick-up site locations,” Katz said Wednesday (Jan. 22).

As the second largest national grocer behind Wal-Mart, Kroger has been on the forefront of digital marketing, but to date has not taken the plunge into the commerce side. Zybowksi expects to see some new initiative from Kroger this year.

Yummy.com is another niche player that is off to the races in southern California. This limited-item retailer offers store fulfillment for basic groceries delivered within 30 minutes of the order. CEO Barnaby Montgomery said Yummy.com fills an average of 20,000 online orders a month. While the retailer has four physical stores, between 50% and 70% of its business comes from online orders with home delivery. Montgomery said Yummy.com sells convenience and is growing at a healthy clip in the Los Angeles market.

Zybowski said even before AmazonFresh was added into the equation, New York City had become a hot bed of online grocery offers with Fresh Direct, Peapod, and ShopRite aggressively expanding to the metro area and looking to double the size of their businesses.

She expects to see an interesting battle for marketshare to ensue this year in response to AmazonFresh and the growing number of niche players entering the space.

More events held in the Fort Smith area like the upcoming “Battle at the Fort” volleyball tournament may be needed to improve the area hospitality industry and boost Fort Smith and Van Buren hospitality tax collections.

The volleyball event, which brings more than 6,000 people to the region, is hosted by Fort Smith Juniors Volleyball and is set for Jan. 25-26 (for ages 15-18) and Feb. 1-2 (for ages 10-14), and is held at the Fort Smith Convention Center.

In addition to Arkansas, teams often travel from Kansas, Missouri, Oklahoma, Tennessee and Texas for the tournament. It has grown to be the largest volleyball tournament in either Arkansas or Oklahoma, according to the Fort Smith Juniors organization.
 
“Last year we had a record year in terms of number of teams and we were just over 190. This year we are around 205 and the tournament continues to grow every year,” Club Director Greg Hale said in a statement. “When it first started nearly 15 years ago we utilized a few courts from the school system during one weekend. Today the tournament is spread out over two weekends and the club rents and places temporary courts in the Fort Smith Convention Center for two back to back weekends.”

Claude Legris, executive director of the Fort Smith Convention & Visitors Bureau, estimated that the 2013 tournament created a $1.831 million economic impact for the region.

“This total impact of nearly $2 million would probably have been higher had we not experienced some winter weather on the first go-round,” Legris explained. “Another important element is that we do see quite a few college volleyball coaches at this event doing some scouting for their incoming freshman classes which could mean that play in this tournament could become quite significant in for the potential of college scholarships. ... This has always been a great event for the local economy as well as the future for the participants.”

Tournament organizers have said the event fills up hotels and restaurants in Van Buren and Fort Smith.

Dev Pathik, CEO of Sports Facilities Advisory in Clearwater Fla., recently told The City Wire that spending on sports travel has steadily risen during the past few years and is largely fueled by youth sports. He said families collectively spend $192 million per day supporting their children’s sports activities. That ranges from gear, uniform fees, private lessons and travel to games often played each weekend during their appropriate seasons.

Youth sports and sports-related travel is creating an approximate economic impact of $7 billion per year, according to Pathik. Cities across the country have taken notice in recent years and competition for hosting tournaments for travel ball has become intense, he added.

The Fort Smith Juniors Volleyball Club is a 501c3 non-profit organization dedicated to giving female athletes, grades 3rd through 12th, the opportunity to learn, play, compete, and develop their skills at the game of volleyball. The club is made up of more than 20 teams and includes more than 200 players from all over the Fort Smith region, including communities as far away as Mena, Russellville, Fayetteville, Siloam Springs and eastern Oklahoma. The club season begins in November and typically concludes in April.

Fort Smith Juniors was started in 1994 by University of Arkansas at Fort Smith coach Jane Sargent, who at the time was a coach at Chaffin Junior High in Fort Smith.

FORT SMITH COLLECTIONS
Unfortunately, the 2014 tournament will not help boost the 2013 hospitality tax collection tally for Fort Smith.

Collections in Fort Smith for the first 11 months of 2013 totals $678,553, down 3.1% compared to the same period in 2012. However, Fort Smith hospitality tax collections have improved during each quarter. Collections were down 6.4% in the first quarter, down 1.6% during the second quarter, and down just 0.5% in the third quarter.

November collections were $53,789, down 3.7% compared to November 2012. The city collects a 3% tax on lodging.

During 2012, Fort Smith hospitality tax collections totaled $746,182, up 5.37% compared to the 2011 period.

VAN BUREN COLLECTIONS
Hospitality tax collections in Van Buren during the first 11 months of 2013 total $391,150, up just 0.09% from the $390,771 in the same period of 2012. November collections were $333,219, up 2.6% from the $32,383 in November 2012. The city collects a 1% tax on lodging and a 1% prepared food tax.

During 2012, Van Buren hospitality tax collections totaled $425,554, up 5.2% compared to the 2011 collections. Hospitality tax collections in Van Buren during 2011 totaled $429,561, up 2.34% compared to 2010. The 2011 collections ended a two-year skid in Van Buren.

Maryl Koeth, executive director of the Van Buren Advertising & Promotion Commission, said 2013 receipts will likely be higher than 2012, but is not optimistic about 2014 economic conditions.

“If this trend holds for December tax receipts we will end the year slightly above 2012. I am not forecasting any change in revenue trends for 2014. I think we will continue to see a very sluggish economic recovery with occasional setbacks during 2014,” Koeth said.

Although collections have been flat in Van Buren and down in Fort Smith, employment in the sector has held up on a year-over-year comparison. Employment in the region’s tourism industry was 9,100 during November, down from 9,300 in October and above the 8,900 in November 2012. The sector reached an employment high of 9,800 in August 2008.

The state of Arkansas will receive $459,000 in clawback funding from tech giant Hewlett Packard for its failure to meet employment goals as part of a $10 million incentive package.

HP announced in December 2008 that it would locate a tech support facility in Conway. It received roughly $10 million in incentives from Gov. Mike Beebe’s Quick Action Closing Fund as part of an agreement to create 1,000 jobs within five years.

In mid-2013, HP laid off about 500 workers and later in the year announced it would hire 200 with different skill sets. As a result of the net employment figures, HP failed to meet all of the requirements of its original deal.

AEDC notified HP late last week it owed a total of $459,000 back to the state’s economic development agency from the $10 million given to the company from the governor’s fund.

In order to determine how much HP owed, AEDC used a formula that was included in the signed agreement. It weighs total employees and total payroll against the 1,000 jobs promised.

“The strength of HP’s overall payroll in Conway played a factor in determining the amount owed, made it a bit less,” said AEDC spokesman Scott Hardin. “We don’t share the exact formula as that would allow the company’s specific employment and payroll information to be made public.”

Hardin said there is little more in the way of formality to kick in the repayment of the money owed to the state. He added that HP has informed Arkansas economic officials that they are in the process of making the payment.

“HP has worked closely with us throughout this process and the company has always said it will honor the exact terms of the original agreement,” Hardin said.

Current employment at the HP facility in Conway stands between 700 and 900 people, according to the company.

The National Retail Federation on Wednesday (Jan. 22) sent a letter to congressional leaders outlining the retail industry’s commitment to protecting sensitive consumer data in the wake of the recent international cyber attacks and thefts.

“The National Retail Federation and our 12,000 members are committed to combating this criminal threat to our industry and our customers, and we strongly recommend the adoption of meaningful steps to fight cyber theft and credit card fraud,” NRF President and CEO Matthew Shay wrote in the letter sent to Senate Majority Leader Harry Reid, D-Nev. and House Speaker John Boehner, R-Ohio.

The letter reiterated the retail industry’s long-held support for replacing current credit and debit cards with cards that would store data in an embedded computer micro-chip and require the use of a PIN rather than a signature. Cards today use easy-to-hack 1960s technology.

“For years, banks have continued to issue fraud-prone magnetic stripe cards to U.S. customers, putting sensitive financial information at risk while simultaneously touting the security benefits of next-generation PIN and Chip card technology for customers in Europe and dozens of other markets,” Shay said.

NRF expressed its support for an immediate transition from magnetic-stripe cards to more-secure and advanced PIN and Chip cards to better protect consumer data from theft, hacking and skimming. PIN and Chip cards are widely used in more than 80 countries throughout Europe, Asia and Africa.

“The retail industry is eager to work with banks and card companies to fight cyber attacks and reduce fraud,” Shay said. “These efforts include installation of sophisticated new PIN-enabled point-of-sale-systems and readiness to adopt cards with more secure microchip technology, but the fact remains that retailers cannot do this alone.”

Real estate is the only career Nicky Dou of Bentonville has ever wanted to pursue. Her growing success year after year seems a validation of the focused desire. In 2013, Nicky Dou doubled her sales, closing $18.5 million in total sales.

“It was a record for me, sales rose from $10 million a year ago. Together my husband Jerry and I posted just under $28 million,” she said. “It just keeps getting better.”

Dou said she loves her career and the opportunities she has to use creative marketing for the properties she lists. When asked what so different about 2013, Dou said the couple hired a licensed assistant, Jerilyn Poe, in July. Then the three of them joined Keller Williams in August, jumping ship from Coldwell Banker. The Dous and Poe are part of Keller Williams’ 103 agents in Northwest Arkansas.

Paul Bynum of MountData.com reports the median sales volume per agent was $1.135 million last year, up from $1.016 million in 2012. Nicky’s sales were well ahead of the median.

BACKGROUND
Nicky has been an agent/broker in Northwest Arkansas since she graduated from the University of Arkansas in 2001 with a bachelor’s degree in communication. She grew up in the region and graduated from Springdale High School.

“It was a great time to come into the market,” she said. “I joined Harris McHaney and have never looked back.”

Husband Jerry graduated in 2001 with an engineering degree and worked in that field until the couple opened in 2005 their own real estate boutique firm Element Realty.

“We have rode the market up and down and back up again,” Jerry Dou said.

Their firm Element was acquired by Coldwell Banker in 2007. The couple joined Century 21 Exclamation Realty in 2008, which was subsequently acquired by Coldwell Banker Harris McHaney Faucette in February 2013.

“Coldwell Banker is a great firm, but for us the best financial and professional decision was to join Keller Williams’ in their new Bentonville location,” she said. “We like the ability to sell our own brand and use creative marketing in the process.”

SELF-BRANDING
Dou said she has worked really hard over the years pushing Internet marketing and using social media to broaden her own brand.

“I don’t use the traditional marketing approaches taught by the large companies. I like to do my own thing using technology, staging, professional grade photos and video marketing for the listings I get,” Nicky Dou said. “My clients usually call me. They find me from all over the country after they have been window-shopping online for some time.”

Jerry Dou said the couple has learned volumes in recent years about what it takes to keep today’s savvy customer happy.

“We try to ensure our clients are getting the best investment deal they can make in every transaction. It’s no fun being upside down on a home. We try and make sure our clients buy with resale in mind, even if they think it’s going to be their forever home,” he said.

Nicky, a self-proclaimed Pollyanna, said even through an incredibly slow market she continued to grow her sales each year and part of the reason is because of her silver-lining outlook. She said there’s plenty of variables an agent can’t control – interest rates, foreclosure sales, or declining prices. But instead of focusing on those, she has always found it more productive to do what she can to make sure her clients’ expectations are exceeded.

“I believe in being honest with clients and if they listen to my recommendations we can usually close a sale they are happy with,” Nicky said.

She said late last year she closed a home sale for a new listing she got in just two weeks. The home had been listed with another firm for several months with no offers.

“I want to make sure every listing I have comes up in the top five buyer searches online,” she added. “That exposure will help sell a home and I won’t list it until it is ready to sell.”

NEW HOME AGENT
The couple does a fair amount of relocation business in the Wal-Mart supplier community and says it’s steady year round. But more recently they have negotiated deals with homebuilders to be the selling agent in Hyde Park, a new subdivision between Cave Springs and southwest Bentonville.

Hyde Park offers craftsman style homes with priced between $250,000 and $300,000. The homes are about 2,700 square feet with a community pool, playground and trails throughout the neighborhood. Dou said she has already closed seven new homes in Hyde Park and there are 10 more presolds under construction.

The couple is also promoting Kerelaw Castle, a new geothermal subdivision in west Bentonville. It’s the first of its kind in Northwest Arkansas with all the homes featuring energy efficient geothermal heating systems. Nicky Dou said there are 10 homes under construction, five of which are close to completion.

“The buyers will qualify for $7,000 in tax credits relating to the geothermal system. The homes are listed between $240,000 and $270,000,” she said.

MARKET OUTLOOK
The couple said they expect the momentum they have seen since 2012 to continue in Benton County. They have already closed $5.5 million in sales since Jan. 1. 

“The supplier community is hiring and we are really busy with folks who want to move up now that their property values have rebounded. We think property values could move up a little more this year, but that depends on sustained demand from the buyer pool,” Jerry said.

Neither Dou is too concerned by the active building they see in Benton County. They note that supplies are still low given that lenders are proceeding cautiously.

The number one criteria the couple said they get from most homebuyers moving to the area are the schools.

“Most buyers want to look at the entire area first, but after seeing the individual towns, schools and factoring in commute time, if they work in Benton County they usually want to live here. They often want to be near the Pinnacle shopping area and they like Bentonville schools,” Jerry said.

They expect to see the growth in Benton County continue, with more retail and entertainment venues on tap to open this year. 

Benton County was the top Arkansas county for home sales during the year, according to The City Wire’s Arkansas Home Sales Report. The county, with a population of around 230,000, had 4,571 home sales in 2013. Pulaski County, the state’s largest with a population of around 390,000, posted 4,499 home sales during the year.

During 2013, the number of homes sold in central Arkansas are up 10.44%, up 12.89% in the Jonesboro area, up 17.98% in Northwest Arkansas, and up 7.36% in the Fort Smith area.

Cargill Meat Solutions has settled hiring discrimination allegations in three of its plants, including the turkey slaughter and processing facility in Springdale. The allegations were made by Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP).


The meat packer agreed to pay $2.2 million into a settlement fund, although the company notes it did not discriminate against any applicant and views the agencies allegations as unfounded.


"The decision to settle was not taken lightly, because we work hard every day to ensure compliance with all hiring laws, and we have an unwavering commitment to diversity and equal employment opportunity," said Cargill Senior Vice President Bill Buckner.  "The plants involved in the bundled settlement include Fort Morgan, Colo. (beef); Springdale, Ark. (turkey); and Beardstown, Ill. (pork). They have diverse employee populations, representing dozens of nationalities. It's a fact we take great pride in, especially because these communities are thriving with economic prosperity that results from the diverse Cargill employee population."


OFCCP audits companies that conduct business with the U.S. government.

Buckner said the meat company was disappointed with the way OFCCP used a mathematical model to allege violation in the absence of evidence.


“We believe the agency needs to change the way it applies the law to ensure that OFCCP is not forcing employers to violate – by using quotas – the very laws the agency is supposed to be enforcing. We will continue to hire the best candidates available from those who apply for positions at our plants,” Buckner said.

J.B. Hunt Transport continues to set the bar high in the logistics sector despite caution from Wall Street about conflicting signs in the overall economy.

The Lowell-based logistics giant posted another record quarter to end 2013 reporting net earnings of $92 million, or 77 cents per share. Bottom line profits improved 9% from 70 cents a share pocketed a year ago, but the company narrowly missed Wall Street’s consensus estimate by two-cents per share.

Total operating revenue for the fourth quarter was $1.47 billion, up 9.7% from the year-ago period and inline with analysts expectations.

Shares of J.B. Hunt tumbled lower on Thursday (Jan. 23), trading down about 1.5% at $78.13 in the morning session as it followed the bearish coat tails of the broader market descent.

Operating income for the quarter increased to $153.5 million versus $143.3 million for the fourth quarter 2012. The increase primarily reflects higher revenue on greater load volumes and improved network balance in firm’s intermodal unit. These improvements were partially offset by increased costs paid to hire and retain drivers; higher workers’ compensation and accident costs; increased costs to third party carriers, fewer gains on equipment sales and lower truck utilization.

For the full year,  J.B. Hunt posted total revenue of $5.584 billion, rising 10.4% from a year ago. Net earnings of $2.87 cents per share, or $342.3 million, increased 10.8% and 10.3% respectively from the prior fiscal year.

Wall Street is split on its sentiment for J.B. Hunt in 2014. Stephens Inc. ranks the logistics leader as “overweight” or favorable to buy, given a target price of $87 per share in the next 12 months. That said, Stephens recently trimmed its 2014 fiscal guidance for J.B. Hunt from $3.55 per share to $3.25. Wall Street consensus is $3.39 per share.

J.B. Hunt’s estimate for fiscal 2014 includes revenue growth of 11%, as the firm expects operating income to rise between some 13% to 15%, which analysts believe is a little aggressive.

“We think J. B. Hunt still has significant leverage to the cycle and has one of the most defensible and diversified business models in the transportation space. We remain comfortable recommending shares for long-term investors given the opportunity for an improved intermodal pricing environment and firm’s leverage to improving supply-demand dynamics,” Stephens analyst Brad Delco noted on Jan. 8.

John Larkin, an analyst with Stifel, ranks J.B. Hunt shares as neutral, a hold position based on softening rates and the additional interest expense J.B. Hunt will see as it finances $700 million in capital expenditures for fleet replacement and growth strategies in place.

“We continue to believe that shares of J.B. Hunt are slightly over-valued ... we think the Street estimate will come down and our 12-month fair value estimate of $66 implies over 10% downside risk over the coming year,” Larkin noted in November.

4Q SEGMENT HIGHLIGHTS
Intermodal transport continues to be the bread and butter for J.B. Hunt comprising two-thirds of the companies total revenue and 79% of the firm’s operating income. J.B. Hunt posted a 13% increase in its intermodal loads during quarter ending Dec. 31, which helped to drive an 11% rise in segment revenue to $915 million. This unit posted operating income of $121.5 million in the quarter, rising 17% from a year ago.

The company said its Eastern network loads increased 17% and transcontinental loads increased 11% compared to the same quarter in 2012. Despite the increased number of loads the revenue per load slid 1.3% from a year ago, most of which was linked to customer rate increases and volatile fuel prices. J.B. Hunt had ended the year with approximately 66,000 units of trailing capacity and approximately 4,100 power units in the dray fleet.

Dedicated Contract Services (DCS) segment revenue increased by 17% to $330 million in the fourth quarter. The increase in revenue resulted from 1,154 net additional revenue producing trucks, mostly due to converting customers’ private fleets, the company said. Productivity (revenue per truck per week) was virtually flat compared with the fourth quarter 2012 due to the higher percentage of customer provided equipment and customer paid fuel in this segment’ book of business. DCS operating income totaled $29.5 million, up 0.5% compared to the same quarter 2012.

J.B. Hunt’s Integrated Capacity Solutions (ICS) segment revenue increased by 13% to $145 million in quarter. This move up is linked to a higher load count and an increase in revenue per load. Revenue grew faster than volume primarily due to a change in freight mix driven by customer demand. That said the segment posted a 24% decline in its operating income for the quarter pocketing $3.5 million. Gross profit margin decreased to 12% in the current period from 14.1% last year. This is partially linked to higher third party carrier rates seen during the quarter. 
Meanwhile the firm said it continues to expand this brokerage division, adding nine more branches and 11% more employees in the past year.


J.B Hunt’s laggard Truck (JBT) segment posted a 19% decline in revenue in the quarter primarily from an 11% reduction in fleet size compared to a year ago. The unit posted $91 million in total revenue in the quarter. The segment reported a 2.7% decreased in rates and 4.6% shorter average length of haul, when compared to a year ago. It’s important to note that the 2012 rates were favorably impacted because of added demand created from Hurricane Sandy relief efforts. At the end of the period, the trucking segment tractor count was 1,857 compared to 2,093 in the fourth quarter 2012, primarily from a reduction in independent contractor capacity. 
The trucking unit incurred an operating loss of $1 million in the quarter compared to operating income of $5.2 million in the same quarter of 2012. 


The previously announced personnel and leadership changes are expected to address and improve tractor utilization, maintenance and customer service issues that have impacted the profitability of JBT.

“We expect to demonstrate operational improvements throughout 2014, but significant financial improvements will become more apparent in 2015,” the firm noted in the release.

BY THE NUMBERS (Year-over-Year)
Gross Revenue
2013: $5.584 billion
2012: $5.054 billion

Net Income
2013: $343.382 million
2012: $310.354 million

Earnings-per-share
2013: $2.87
2012: $2.59

Total Assets
2013: $2.819 billion
2012: $2.464 billion

Net Capital Expenditures
2013: $442.5 million
2012: $369.6 million

Current Liabilities
2013: $712 million
2012: $502 million

Long Term Debt
2013: $458.4 million
2012: $585.3 million

Tupelo, Miss.-based BancorpSouth, which has operations in the Fort Smith and Northwest Arkansas areas, reported full year net income of $94.115 million, up 11.16% compared to 2012.

For the fourth quarter, net income was $27.698 million, well ahead of the $16.98 million during the fourth quarter of 2013.

Total revenue (interest and non-interest revenue) during the year was $724.573 million, below the $766.573 million during 2012.

“Our results for the fourth quarter are reflective of the commitment that we have made to grow our Company,” CEO Dan Rollins said in a statement. “We are pleased to report net loan growth of almost $185 million, or 8.4 percent on an annualized basis. While we have continued to produce quality credits throughout the cycle, these efforts are becoming more visible as the headwind caused by problem asset runoff continues to subside.” 

Non-performing loans declined from $233.6 million as of Dec. 31, 2012, to $120.4 million as of Dec. 31, 2013. Also, non-performing assets fell from $336.8 million at the end of 2012 to $189.7 million at the end of 2013.

The bank holding company also announced an agreement to acquire Temple, Texas-based Central Community Corporation. Central is the parent company of First State Bank Central Texas which is based in Austin, Texas, and operates 31 locations in central Texas. As of Dec. 31, 2013, Central Community had total assets of $1.3 billion, total loans of $555.5 million and total deposits of $1.1 billion.

BancorpSouth will issue 7.25 million shares and pay $28.5 million to acquire Central Community.

BancorpSouth shares (NYSE: BXS) opened Thursday (Jan. 23) at $25.07. During the past 52 weeks the share price has ranged from a $25.54 high to a $14.14 low.

Bentonville-based Collective Bias continues its rapid growth trajectory which again has garnered it national recognition. The local social shopper media firm ranked No. 18 on Forbes' latest list of "America's Most Promising Companies." The 2014 class of 100 privately held, high-growth companies features organizations across a wide number of industries.

In addition to being named to the top 25, Collective Bias co-founder Amy Callahan was recognized as one of 13 female entrepreneurs who helped build companies on this year's list.

The Forbes ranking comes on the heels of a banner growth year for Collective Bias in 2013. The company doubled sales year-over-year and signed major global brands to its roster, including: Nestle, Kraft Foods and T-Mobile. This marks the third consecutive year of at least 100 percent revenue growth for the company.

The firm also expanded Into Europe in 2013, as demand for global social shopper marketing campaigns led Collective Bias to open its first office abroad. Located in London, the new space is the headquarters for European operations, while supporting future expansion in the region.

"When we started Collective Bias (2009) we knew we had a unique vision for how social would transform brand marketing. Yet, I never imagined we'd achieve such success on a global scale," said Amy Callahan, chief operating officer. "Being recognized by Forbes for these breakthroughs is a testament to the creativity and hard work that our people do every day." 

Collective Bias specializes in helping brands create authentic stories that resonate with consumers and motivate them to share their own experiences and make purchases. The firm uses paid bloggers who connect with brands and report their stories via social media sites.

"It is a great honor to be recognized by a respected institution like Forbes," said Bill Sussman, CEO of Collective Bias. "It helps us maintain our focus on delivering top-notch content for our clients while re-writing the book of the modern media company."

Last week Collective Bias announced four new hires to its growing executive management team.

• Charles Shapiro, joined Collective Bias as SVP of sales, from a similar position at Workplace Media. He will lead sales initiatives with marketing agencies.

• Aileen Burke is the firm’s new VP of business development. She was formerly with Valassis and will head up all business development for the Northeast region including many health and beauty and consumer packaged goods firms.

• Dana Verdeja is the director of business development and based in Minneapolis / St. Paul. Verdeja will work with clients and team with partners to proactively create new business opportunities.

• Tom Balla is the director of business development based in Bentonville. He will be focused on entertainment categories.

Walmart U.S. CEO Bill Simon announced Thursday (Jan. 23) a $10 million innovation fund from the retailer and its foundation to spur new U.S. manufacturing commitments that lead to job creation.

Simon joined 280 of the nation’s mayors in Washington, D.C., at the U.S. Conference of Mayors meeting to announce the five-year program and the most recent addition of its suppliers that will provide onshore jobs, Kent Bicycles.

He said Walmart and the Walmart Foundation will fund the $10 million, five-year program and work in collaboration with the U.S. Conference of Mayors for a launch in March. The fund will provide grants to innovators in the manufacturing sector and seeks to create new processes, ideas, and jobs that support America’s growing manufacturing footprint.

“If we want to grow manufacturing and help rebuild America’s middle class, we need the brightest minds in our universities, in our think tanks, and in our towns to tackle obstacles to U.S. manufacturing,” said Simon. “The $10 million fund will identify and award leaders in manufacturing innovation and help us all work together to create opportunity."

In 2013, Wal-Mart announced that it will buy an additional $50 billion in American products over the next decade. Wal-Mart estimates cumulatively over the next decade the investment will total $250 billion. The Boston Consulting Group predicts that this $250 billion investment will create one million jobs, including the jobs in manufacturing and related services.

The initiative has already proven beneficial to Wal-Mart’s home region. Redman & Associates in October announced a $6.5 million investment to relocate its ride-on toy manufacturing business from Shanghai to Northwest Arkansas over the next three years. Redman  operates a sales office in Bentonville that employs 16 people. Moving the manufacturing to Northwest Arkansas was estimated to create 17 jobs the first year, and ramping up to 74 by the time the entire operation comes online in Rogers.

KENT BICYCLES
Kent Bicycles is the latest supplier to move its production back onshore. The Parsippany, N.J.-based firm is relocating some production to Clarendon, S.C., which is expected to be at full capacity by 2016. The South Carolina plant will employ 175 workers, assembling 500,000 bikes annually. Onshore production is expected to begin this fall.

“We look forward to bringing production to South Carolina,” said Arnold Kamler, owner of Kent Bicycles. “Our company moved all manufacturing overseas in 1990 because it was so much more cost effective. When Walmart made its commitment to U.S. manufacturing last year, it opened our eyes to restarting some manufacturing here. We attended Walmart’s August manufacturing summit and were able to focus our efforts quickly and make things happen with South Carolina.”

Simon said those that have already taken the risk to move or expand manufacturing in the U.S. tell him they are experiencing a first-mover advantage of a significant leg-up in terms of market-share and momentum.

Wal-Mart also announced it will host its second U.S. manufacturing summit in Denver, Colo., in August 2014. One focus of the summit will be to connect manufacturers in need of component parts to factories with excess capacity.


“Many factories aren’t operating at full capacity. By working together, we have an opportunity to repurpose or help add production to some of these communities,” said Simon. “This will help rebuild the American supply chain to support U.S. manufacturing and create more jobs.”

2014 SUMMIT
Wal-Mart’s first summit in August 2013 brought together more than 1,500 attendees, including 500 suppliers, 34 states and government officials to discuss opportunities to create jobs, restore communities and drive economic growth.

Wal-Mart has been applauded by state officials for taking the lead in its efforts to rebuild the U.S. manufacturing sector, that has been in steady decline for the past decade. Arkansas officials see the Natural State benefiting from Wal-Mart’s manufacturing agenda.

Among the retailer’s vast supplier network it found that 72% of suppliers believe manufacturing in the U.S. will be result in better cost savings within four years or less.

Simon said 40 different departments at Walmart U.S. are in active discussions with suppliers to move manufacturing back American soil.

The weight of materials shipped by truck grew an estimated 6.2% in 2013, but overall U.S. freight shipments were “mediocre” in 2013 and reflective of “another bumpy year in the recovery.”

The American Trucking Associations’ Truck Tonnage Index was up 0.6% in December after a 4.7% bump in November. For the year, the index is up 6.2% compared to 2012, making it the best year for the index since 1998. Tonnage, as measured by the ATA, increased 2.3% in 2012.

The not-seasonally adjusted index, which represents the real change in tonnage hauled by the fleets, equaled 123 in December, which was 1.4% below the previous month.

“Tonnage ended 2013 on a high note, which fits with many economic indicators as trucking is an excellent reflection of the tangible goods economy,” ATA Chief Economist Bob Costello said in his report. “The final quarter was the strongest we’ve seen in a couple of years, rising 2.2% from the third quarter and 9.1% from a year earlier.” 

Trucking serves as a barometer of the U.S. economy, representing 68.5% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, according to the ATA. Trucks hauled 9.4 billion tons of freight in 2012. Motor carriers collected $642.1 billion, or 80.7% of total revenue earned by all transport modes.
 
Costello, as he has in past reports, said the index gains suggest an economy that is better than some may think.
 
“I’m seeing more broad-based gains now. The improvement is not limited to the tank truck and flatbed sectors like earlier in the year. With manufacturing and consumer spending picking up, coupled with solid volumes from hydraulic fracturing, I look for tonnage to be good in 2014 as well,” Costello said.

Rosalyn Wilson, a supply chain expert and senior business analyst with Vienna, Va.-based Delcan Corp., said freight activity was relatively unremarkable in 2013.

“North American freight activity followed virtually the same path in 2013 as it did in the previous two years, concluding with the typical December falloff,” Wilson wrote in the report prepared for the December Cass Freight Index. “The climate for freight was mediocre throughout 2013, with the average number of monthly freight shipments 0.7 lower than in 2012. Inventories remained high, manufacturing stalled mid‐year, and exports and imports were relatively flat for most of the year. All of this contributed to another bumpy year in the recovery that hasn’t quite gotten there.”

North American shipments in December measured by the Cass Freight Index were down 6.2% compared to November, and were 3.2% below December 2012. December marked the largest monthly decline in 2013 and the third consecutive decline for the Cass 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.

Wilson provided the following observations about 2013 and thoughts on 2014.
• Freight shipment volumes experienced five three‐year lows during 2013, while freight expenditures hit eight three‐year highs.

• Unemployment fell, yet the number of new jobs created averaged below 2012. The number of workers leaving the labor pool has reached near‐historic highs.

• Increased inventory investment, a deceleration in imports, and strengthened state and local government spending were the strongest upward drivers of third quarter GDP. The first two do not drive shipping activity.

• Exports fell in the third quarter and the housing market, which was stronger in 2013, slowed in the fourth quarter. New starts lagged well behind permits issued, and new construction is what will lead to increased freight.

• Manufacturing gained strength for most of the year but at a very modest rate. Although better than 2012, which included several months of contraction, 2013 was still well below pre‐recession production levels.

• Looking forward to 2014 there are some hurdles, but the freight picture should strengthen as the year progresses. Congress is ahead of the budget issue – which had been kicked down the road in November – so another shutdown is unlikely.

• Transportation employment, especially in trucking, has been rising in recent months. Globally, new orders are up, but more for exports to developing countries than to the U.S. or Europe. The market for U.S. goods should strengthen by the second half.

• The high inventory levels are going to be drawn down in 2014, if for no other reason the fact that higher interest rates are going to make them more costly to carry. Consumers still hold the key to completing the recovery, and there are few signs that they feel confident to resume old spending habits.

• The lower labor participation rate plays a big role in the amount of disposable income available for anything but necessities. Many are finding that as their unemployment benefits end they still have few job prospects, so they are joining the ranks of those who are not actively in the labor market.

Simmons First National Corporation said it incurred $4 million associated from the acquisition of Metropolitan National Bank and the subsequent branch consolidations now underway.


The Pine Bluff-based holding company said its core earnings totaled $7.7 million, or 48 cents a share, in the fourth quarter, up 4.7% and 9.1% respectively from the year ago period. The financial institution narrowly missed Wall Street’s 49-cent per share consensus. But, when factoring in the merger costs profits came to $3.8 million, or 23 cents a share.

With the merger costs considered the firm posted net earnings in 2013 of $23.2 million or $1.42 per share.


CEO George Makris Jr. said the bank is pleased the total results for the year and the recent quarter and while the acquisition and efficiency initiatives have and will weigh on profits in the short-term, he believes bank’s the long-term performance will benefit.

“Our focus continues to be improvement in core operating income," Makris said.

Makris said during Thursday’s earnings call the bank expects to take a $3.5 million hit to earnings in the first quarter of 2014 from the closing of 27 branches in combined Northwest Arkansas and Little Rock markets.

“We have identified 28 locations in Central Arkansas and 10 in Northwest Arkansas that will remain open and poised to growth services in those regions,” he said. “I will say the acquisition of Metropolitan went better and smoother than expected, we are set for a March 21 conversion of the branches and that will be the last piece of the merger.” Makris said during the call.

He hinted that the bank would be ready to tackle another deal after that.

SHARE, FINANCIAL PERFORMANCE
Simmons shares closed at $37.05 on Thursday, down 19 cents in light volume. For the past 52 weeks the share price has ranged from a high of $38.54 to a low of $23.16.


During 2013, the firm repurchased approximately 420,000 shares at an average price of $25.89. During the third quarter, the company suspended its stock repurchase program as it worked to absorb the $53.6 million paid (all cash) for Metropolitan National Bank in September.

Simmons reported net income growth of 29.5% in the quarter to $39.6 million. The $9 million year-over-year increase was linked to growth in the loans, earning assets acquired from Metropolitan and higher overall yield margins.


Non-interest expense for the fourth quarter of 2013 was $41.7 million, an increase of $9.5 million compared to the same period in 2012. 


"During the fourth quarter there were $3.7 million in incremental normal operating expenses attributable to our acquisition of Metropolitan National Bank. We also closed one underperforming branch (Bella Vista) during the quarter, incurring one-time costs of $108,000,” Makris said. 


Expense control remains a focus as Simmons continues to search for additional efficiency opportunities, Makris added.

LOAN AND DEPOSIT GROWTH

The pro forma bank reported $2.4 billion in loans on the books at the end of December. Total loans increased 25.1% from the same period in 2012.
 Acquired loans increased by $369 million, net of discounts, while legacy loans (all loans excluding acquired loans) grew $114 million, or 7.0%.

"We are encouraged by the continued growth in our legacy loan portfolio during the fourth quarter. We have had nice loan growth this year, particularly from the new lenders we have attracted in our targeted growth markets. Their production has exceeded our expectations through the end of the year," Makris noted in the release.

He added during the call that he was pleased with the caliber of lenders onboard since the Metropolitan deal saying they were eager and ready to grow production.

 Simmons reported total deposits of $3.7 billion at the end of December, growing $823 million or 28% from the year-ago period. This increase included $850 million acquired from the Metropolitan merger.

ASSET QUALITY

Simmons bank had $27.4 million in set aside for loan losses and loan credit mark of $101.4 million, for a total of $128.8 million in coverage.


Non-performing loans as a percent of total loans were 0.53% at year end. Non-performing assets increased $38.2 million from the previous quarter, to $74.1 million.


Included in the quarter was $42.1 million of acquired other real real estate owned (OREO) from the Metropolitan acquisition. 

For the full year of 2013, the annualized net charge-off ratio, excluding credit cards, was 0.15%, and the annualized credit card charge-off ratio was 1.33%.
 

The desires of Benton County home buyers, Mike Huckabee’s thoughts about the female libido and the financial dance between Wal-Mart and its suppliers are part of the Northwest Arkansas Friday Wire for Jan. 24.

NOTES & ANALYSIS
• On the retail chargeback watch
While the Northwest Arkansas has greatly benefitted from the thousands of suppliers who do business with Bentonville-based Wal-Mart Stores Inc., the relationship between the retail giant and the many vendors is not always warm and friendly.

A small industry has cropped up in recent years to audit the financial give and take between the Wal-Mart number crunchers and vendors who sometimes find themselves on the short end of the crunched numbers. 

This dance will become more interesting as Wal-Mart moves to influence and respond to the global retail dynamic that often sees the narrowing of margins place pressures on relationships. It may not always be pretty, but it’s a dance we plan to watch and study.

• Recovery (finally) for Arkansas’ real estate market 
It’s been more than six years since the bubble burst on Arkansas’ real estate market, but figures from Arkansas’ four largest metro areas suggest the industry found its legs again in 2013.

The number of homes sold in Arkansas’ four largest metro areas totaled 20,644 during 2013, the first time since 2007 that the tally topped 20,000 and the value of the homes sold in the four markets topped $3 billion. The gains were healthy in all four markets, according to The City Wire’s Arkansas Home Sales Report. During 2013, the number of homes sold in central Arkansas are up 10.44%, up 12.89% in the Jonesboro area, up 17.98% in Northwest Arkansas, and up 7.36% in the Fort Smith area.

The healthy pace of sales may be tough to maintain in 2014 with interest rates expected to rise in 2014 and ongoing concerns about the stability of the U.S. economy. And even if the pace continues, home values may plateau, especially if interest rates rise throughout the year.

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 ...

• The construction report
Home builders and others employed in the local construction industry can easily sum up 2013 with just two words — steady work.

• The agri report
Agriculture is still king in Arkansas despite being the home of the world’s largest retailer, a robust trucking industry and a quickly evolving start-up sector.

• The health and wellness report
Health and wellness is big business for Wal-Mart’s Stores Inc. garnering roughly $30 billion in sales, which was 11% of the retailer’s total U.S. sales in fiscal 2013. Sales grew 3.8% from the prior year but the retailer is barely scratching the surface of opportunities as there are major shifts underway in this segment.

NUMBERS ON THE WIRE
• 11%: Percentage of respondents in a Kantar Research study who said they had purchased grocery items online in the previous 90 days.

• 50%: Percentage of Arkansas respondents in a recent Talk Business-Hendrix College poll who say Arkansas should provide no legal recognition of a gay couple’s relationship. 24% said gay couples should be allowed to form a civil union, but not legally marry. 21.5% said gay couples should be allowed to legally marry in Arkansas.

• $500 million: Arkansas Farm Bureau estimate of cattle production in the state during 2013.

OUTSIDE THE WIRE
• Mike Huckabee and the female body
Former Arkansas Gov. Mike Huckabee on Thursday charged that Democrats are conflating women’s rights with access to birth control. Democrats, Huckabee said, believe women are “helpless” — that they “cannot control their libido or reproductive system without the help of the government.”

• Wal-Mart and the NLRB challenge
A challenge by the U.S. National Labor Relations Board (NLRB) to Wal-Mart Stores Inc's treatment of striking workers is likely to become a critical symbol of labor unions' attempts to organize the many non-union workplaces in the United States in the face of stiff resistance from management.

• Thoughts from Arkansas CEOs
If Arkansas businesses were cars, most have been in the “shop” for months now. Well, it’s starting to look like many of them will be taking to the streets the first half of 2014.

WORD ON THE WIRE
“Most buyers want to look at the entire area first, but after seeing the individual towns, schools and factoring in commute time, if they work in Benton County they usually want to live here. They often want to be near the Pinnacle shopping area and they like Bentonville schools.”
– Jerry Dou, a Realtor with Keller Williams, about the real estate market in Northwest Arkansas

“It took the industry a decade to recover that export volume lost in December 2003. The sustained drought and record grain prices of the past couple years also weighed heavy on the beef industry, but barring some weather catastrophe or disease outbreak, 2014 should be better for many Arkansas farmers.”
– Travis Justice, senior economist with the Arkansas Farm Bureau, about the health of Arkansas’ beef industry in 2013

“Other issues that sometimes get a good deal of air time, such as health care, lag dramatically behind economics. The centrality of the economy and jobs as the key issue crosses all demographic and political subsets of Arkansans. The key test for candidates in this political environment is offering a vision of an economic future for the state that resonates with voters.”
–Dr. Jay Barth, professor of political science at Hendrix College, about a Talk Business-Hendrix College poll that suggested 55% of Arkansans believe economy/jobs is the number one issue during the 2014 election cycle

Water park surprises, $20 million in jail money, Mike Huckabee’s thoughts about the female libido, and the financial impact of a “Battle at the Fort” are part of the Jan. 24 Friday Wire for the Fort Smith region.

NOTES & ANALYSIS
• Jail money
Talk about your tough sell. Crawford County Judge John Hall and County Sheriff Ron Brown have the unenviable task of convincing county voters to approve a half-cent sales tax to build a new $20 million jail.

There is no doubt the county has a problem with the existing facility and some sort of fix is necessary. But, if passed, the half-cent bump in the sales tax would make the county's two largest cities, Alma and Van Buren, some of the most heavily taxed communities (in terms of sales tax) in the nation, with a sales tax rate of 10% each.

It will be the fourth time the county has sought a tax to fix the jail system. Judge Hall is hoping the fourth time is the charm. Hall and Brown may need less of a charm and more of a miracle.

• Recovery (finally) for Arkansas’ real estate market 
It’s been more than six years since the bubble burst on Arkansas’ real estate market, but figures from Arkansas’ four largest metro areas suggest the industry found its legs again in 2013.

The number of homes sold in Arkansas’ four largest metro areas totaled 20,644 during 2013, the first time since 2007 that the tally topped 20,000 and the value of the homes sold in the four markets topped $3 billion. The gains were healthy in all four markets, according to The City Wire’s Arkansas Home Sales Report. During 2013, the number of homes sold in central Arkansas are up 10.44%, up 12.89% in the Jonesboro area, up 17.98% in Northwest Arkansas, and up 7.36% in the Fort Smith area.

The healthy pace of sales may be tough to maintain in 2014 with interest rates expected to rise in 2014 and ongoing concerns about the stability of the U.S. economy. And even if the pace continues, home values may plateau, especially if interest rates rise throughout the year.

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 ...

• Consultant’s ‘extremely high’ water park cost concern withheld
E-mails tell the tale of an attempt to keep information about cost estimates for the Ben Geren Aquatics Center from city and county officials voting on budgets and amenities tied to the contentious aquatics facility being planned and jointly funded by the city of Fort Smith and Sebastian County.

• The agri report
Agriculture is still king in Arkansas despite being the home of the world’s largest retailer, a robust trucking industry and a quickly evolving start-up sector.

• Volleyball money
More events held in the Fort Smith area like the upcoming “Battle at the Fort” volleyball tournament may be needed to improve the area hospitality industry and boost Fort Smith and Van Buren hospitality tax collections.

NUMBERS ON THE WIRE
• $1.3 million: The amount in sales RSVP Event Rentals expects to do in sales during its first year in business. The company was formed by the owners for the now-shuttered Phoenix Expo Center following the transition of the site to an office for Health Management Associates (HMA).

• 50%: Percentage of Arkansas respondents in a recent Talk Business-Hendrix College poll who say Arkansas should provide no legal recognition of a gay couple’s relationship. 24% said gay couples should be allowed to form a civil union, but not legally marry. 21.5% said gay couples should be allowed to legally marry in Arkansas.

• $500 million: Arkansas Farm Bureau estimate of cattle production in the state during 2013.

OUTSIDE THE WIRE
• Mike Huckabee and the female body
Former Arkansas Gov. Mike Huckabee on Thursday charged that Democrats are conflating women’s rights with access to birth control. Democrats, Huckabee said, believe women are “helpless” — that they “cannot control their libido or reproductive system without the help of the government."

• Wal-Mart and the NLRB challenge
A challenge by the U.S. National Labor Relations Board (NLRB) to Wal-Mart Stores Inc's treatment of striking workers is likely to become a critical symbol of labor unions' attempts to organize the many non-union workplaces in the United States in the face of stiff resistance from management.

• Thoughts from Arkansas CEOs
If Arkansas businesses were cars, most have been in the “shop” for months now. Well, it’s starting to look like many of them will be taking to the streets the first half of 2014.

WORD ON THE WIRE
"The need is out there and it's really sad that they have to attempt to survive on $20 or $30 a month (in SNAP benefits). And it's unfair that they can be deducted $8 because they got a $2 raise. To us, that's a loaf of bread and a gallon of milk. It's terrible that they are eating cat food and dog food for protein."
– Julie Tann, food coordinator and assistant director of The Hope Center in Van Buren, discussing the impacts that cuts to the Supplemental Nutrition Assistance Program (SNAP) have had on clients of her food pantry

"Had I known he wrote that in an e-mail, I would have asked him how he plans on saving $3 or $4 million. But we didn't have that information at that joint meeting."
– Justice of the Peace Shawn Looper during a Sebastian County Quorum Court meeting, the same day The City Wire reported that Fort Smith officials intentionally withheld cost estimates from a consultant, in which he claimed the Ben Geren Aquatics Center could be built for $6 million to $8 million instead of the current budget of $10.9 million

“Other issues that sometimes get a good deal of air time, such as health care, lag dramatically behind economics. The centrality of the economy and jobs as the key issue crosses all demographic and political subsets of Arkansans. The key test for candidates in this political environment is offering a vision of an economic future for the state that resonates with voters.”
–Dr. Jay Barth, professor of political science at Hendrix College, about a Talk Business-Hendrix College poll that suggested 55% of Arkansans believe economy/jobs is the number one issue during the 2014 election cycle

As of Dec. 31, 2013, the midpoint of the 2014 fiscal year, the University of Arkansas raised $62.633 million and is now 58% of its way to its goal of $108 million.

“We are encouraged, proud and – most of all – thankful for the success we have seen so far this year,” said Chancellor G. David Gearhart. “Our benefactors are investing in the future of our great university and are clearly excited about the direction we are heading. Their confidence in us speaks volumes and reminds us why we are here: to advance higher education in the state of Arkansas and enhance the academic opportunities available for our students and faculty. I look forward to finishing out the fiscal year with additional positive results.”

The amount reported includes outright gifts of cash, gifts-in-kind, new planned gifts and new pledges. Funds have been designated for academic and athletic purposes such as scholarships, diversity initiatives, new construction and renovation projects, the Razorback Foundation and University Libraries.

This year marks the fifth consecutive year that the university has raised over half of its goal by Dec. 31. The 2014 fiscal year will conclude on June 30.

Rising beef prices and ever-changing health trends have more consumers eating less beef. A recent survey report from Mintel found 39% of U.S. consumers ate less red meat in 2013, than in the prior year.

Mintel found that 90% of those surveyed said they still eat some kind of red meat at least once a month, but more than one-third of the respondents said higher beef prices were the main reason they had turned to other proteins.
 Just 10% of those surveyed said they ate more beef last year and plan to continue in 2014.


“The red meat category is facing a difficult future, as both health trends and price are working to discourage consumer demand for red meat products. The industry also has done little to innovate since the recession and therefore has offered consumers little to get excited about. This presents an opportunity for the industry to try to invigorate the market with new products, improved quality and improved functionality,” said Patty Johnson, global food analysts at Mintel.


Johnson said packaging innovation is an area the red meat industry could score some points with consumers, particularly women.
 More than one-third (35%) of women would like to see more re-sealable packaging, 26% say they want individual sized portions and 23% would like to see recipe options on the package.

Tyson Foods CEO Donnie Smith recently said consumers today want they they want, preferring fresh over frozen, trading down if they have to, but still demanding the food items be produced responsibly.

He noted a major shift in foodservice promotions of more chicken in their menu offerings, in part because of the value proposition. In the grocery retail space, he said consumers want convenience, honest labeling, the best values they can find as they work to stretch their food dollars further.

USDA reports consumption of beef per person peaked at 94.4 pounds in 1976, but in 2012 it had fallen to 57 pounds, half of that was ground beef. Per capital spending on beef in 2013 was $288.17, up $48 over the past two years.

Arvest Bank announced Friday (Jan. 24) that the bank has expanded its mobile banking offerings to include mobile banking alerts and an application for iPad.

The bank’s mobile customers will now be able to create text message, email and iPhone push alert notifications to manage their finances more efficiently, as well as access their banking information from their iPads.

“Today our customers are more mobile than ever, and we want them to know Arvest Bank is doing everything we can to give them access to their accounts at all times.  Mobile alerts are a great financial management tool. These alerts allow our customers to better manage their accounts and watch for unauthorized activity, while the iPad app provides one more place to access their banking information.,” said Jason Kincy, marketing director for Arvest Bank.

Mobile banking alerts can notify customers when their account reaches a user-specified low balance, when a debit transaction is over a specific amount, when deposits or overdraft fees are posted, or when any check clears or withdrawal occurs. These alerts help customers keep up with their accounts in a timely manner, help minimize overdrafts, and watch for unauthorized or suspicious account activity.

Dr. Jill Self-Pike is joining the Samaritan Community Center Health Clinic as its first paid staff dentist.

“Having Dr. Self-Pike on staff will allow us to greatly expand both the number of people we can serve and the type of services offered through our dental clinic,” says Debbie Rambo, SCC executive director. “Jill was part of the original group of volunteer dentists who founded the clinic in 2006 and has participated in many international mission trips, so her heart to serve the poor and underserved is a perfect match for what we strive to do here at the SCC.”

The Samaritan Community Center clinic is located in the Rogers facility at 1211 West Hudson Road.
    

“I am truly honored that I was chosen to be a part of something that will help so many people,” Self-Pike said in a statement. “My main goal is to show each patient that we truly care about them.”

A graduate of the University of Arkansas, Self-Pike received her doctor of medical dentistry degree from the University Of Louisville School Of Dentistry in Louisville, Ky., in 2002 and returned to Northwest Arkansas following graduation where she worked professionally as a dentist for the Community Clinic Rogers Dental Clinic and Arkansas Orthodontics, prior to joining the SCC Dental Clinic.

In addition to Self-Pike, who will work three days a week, the SCC dental clinic will continue to operate with the assistance of other local volunteer dentists. The clinic provides full-service dental care for uninsured adults only (dental exams, X-rays, extractions, restorative care and cleanings).

Dental Clinic hours vary. Appointments are taken on the first Monday of each month beginning at 8 a.m. by calling the clinic at (479) 636-0451.

One of Northwest Arkansas’ largest non-profits — Samaritan Community Center (SSC) —  is in the midst further expansion thanks to six foundation grants totaling $320,000 it recently received.
Three grants totaling more than $216,000 will allow center’s dental clinic to expand its restorative services.

“In the past we did a lot of extractions and emergency care but did not have the ability to offer many restorative options,” said Debbie Rambo, executive director. “These three grants will fund the cost of supplies and business expenses associated with running a full-service dental clinic over the next couple of years which, in turn, frees up SCC center funds to hire a part-time staff dentist.”

• $136,365 from Walmart Foundation,
• $15,000 from Blue and You Foundation for a Healthier Arkansas,
• $65,000 private family foundation.

Rambo said since 2006, the dental clinic has offered care for uninsured adults, which has been staffed by volunteers working mainly after business hours, which limited the number of patients that could be seen. Last year the clinic provided dental care at no cost to 624 patients.

This month the clinic announced the hiring of its first staff dentist — Dr. Jill Self-Pike. She will work three days a week at the clinic which will allow more patients to be seen.

OTHER SERVICES

A second Walmart Foundation grant funded the purchase of a new pickup truck and cargo trailer that will be used jointly by the Samaritan Shop’s resale stores in Rogers and Springdale and the center to pick-up smaller donations that do not require the use of the larger SCC truck.

The General Mills Foundation grant ($40,000)  and a second private local family foundation grant provided $70,000 toward the funding of a 2014 healthy foods initiative of the SnackPack for Kids Program. 

The goal of the initiative is to purchase healthier food options for the snackpacks in larger bulk amounts and provide adequate storage space for the bulk purchases.

The SnackPack for Kids program distributes more than 6,500 bags each week during the school year filled with eight healthy snacks in 94 schools and Head Start centers in all four Northwest Arkansas counties. The child recipients have been identified by their school as being at-risk for hunger on weekends and holidays. The average monthly cost for the program is $30,000.

Sam's Club is laying off 2,300 workers as the warehouse club seeks to reduce the level of middle managers. The staff reduction is roughly 2% of Sam's workforce, and is the largest staff reduction by the retailer since 2010.


It is unclear if any of these layoffs will come from the corporate headquarters in Bentonville. The retailer has not returned multiple requests for additional information. 


Bill Durling, a Sam’s Club spokesman, reportedly said the layoffs would target a combination of salaried assistant managers and hourly employees. Certain positions, like telephone attendants, will be eliminated.

“We realized we had pretty much the same club structure whether a club had $50 million in revenue or $100 million in revenue,” Durling said of the distribution of assistant managers. “What we’re trying to do is balance our resources.”

Sam’s Club, operating as division of Wal-Mart Stores Inc. has about 116,000 employees, Durling said, and the job cuts will affect about four employees a store. 
Employees will have 60 paid days to find another job at the company. If they are not successful, they will be eligible for severance.


Sam’s Club will open at least 15 new stores over the course of the next fiscal year, which begins in February.


Last year Wal-Mart Stores recorded sales of $466 billion, and $56.423 billion of that came from Sam’s Club. While Sam’s Club generates 12% of the sales revenue for the corporation, it only represents 7% of the retailer’s bottom line.

Under the direction of CEO Rosalind Brewer, Sam’s Club raised its annual membership fee last year to $45. The rate increase was softened with a coupon book offering $3,500 in savings. The rate increase had the potential to raise revenue by $82 million this year. 

Nearly half of $56 billion in revenue came from membership fees, according to Michael Dastugue, chief financial officer for Sam’s Club. He said in June there had been very little push back from the fee increase.

Analysts said this streamlining effort by Sam's Club is another tale-tell sign of troubles brewing in the retail sector. This announcement is third of its kind since the new year began.

Earlier this week Target announced said it would cut approximately 475 jobs from its corporate headquarters as part of a cost-cutting effort. Target also reduced its earnings guidance for the recent holiday period and through the first half of 2014 as it continues to deal with fallout from the massive security breach that impacted 110 million Target customers.

Last week, J.C. Penney announced 2,000 job cuts and the closure of 33 underperforming stores. This was widely seen as a symptom of that company’s continued struggles after several tumultuous years of flux in its management and its strategy.

Macy’s, often seen as a shining star in the retail sector, also announced it would lay off about 2,500 workers in the coming weeks, despite decent holiday sales results.

Analyst said retailers on the whole saw lackluster holiday sales and continue to battle declining store traffic as they lose share to Amazon and other online retailers.

Wal-Mart and Sam’s Club will report their holiday sales Feb. 20, but the retailer already gave lower guidance at the end of third quarter, before ramping up inventory and advertising for the holiday season. Sam’s Club and Walmart U.S. each suffered from underwhelming same-stores in the past two quarters, and gave guidance from 0% to 2% growth for the balance of the year.

Sam's largest competitor – Costco – continues to set the bar high for the industry in terms of same-store sales growth and customer loyalty. For December Costco reported same-store sales growth of 3%, nearly twice the 1.8% expected by analysts.