Irvin, Texas-based Michaels art and craft stores announced Saturday (Jan. 25) that it too, had recently been targeted by a data security attack, joining a handful of other retailers such as Target and Neiman Marcus.

“We recently learned of possible fraudulent activity on some U.S. payment cards that had been used at Michaels, suggesting we may have experienced a data security attack. We are working closely with federal law enforcement and are conducting an investigation with the help of third-party data security experts to establish the facts. Although the investigation is ongoing, based on the information we have received and in light of the widely-reported criminal efforts to penetrate the data systems of U.S. retailers, we believe it is appropriate to notify our customers that a potential issue may have occurred,” CEO Chuck Rubin noted in a letter to customers on Saturday.

Michaels did not give any timeline for the suspected data breach but recommends customers remain vigilant by reviewing their account statements for unauthorized charges.

“If you believe your payment card may have been affected, you should immediately contact your bank or card issuer. If we find as part of our investigation that any of our customers were affected, we will offer identity protection and credit monitoring services to them at no cost,” Rubin said.

Results were mixed in 2013 for Arkansas’ regional airports. Enplanements at the Northwest Arkansas Regional Airport (XNA) were up for the second consecutive year, while Fort Smith Regional Airport enplanements were down, ending three consecutive years of gains.

Full year enplanement numbers for the Bill & Hillary Clinton Airport (Little Rock National Airport) were not available as of Jan. 27.

The Fort Smith Regional Airport, which is served by flights from Atlanta and Dallas-Fort Worth, posted December enplanements of 6,766, up 3.3% compared to December 2012.

However, for all of 2013, enplanements at the airport total 84,520, down 2.46% compared to the same period in 2012. And while the decline is an improvement compared to the 7.4% year-over-year decline at the end of the first quarter, it ends three consecutive years of enplanement gains at the airport.

Enplanements at the Fort Smith Regional Airport totaled 86,653 during 2012, just ahead of the 86,234 in 2011, and marked three consecutive years of enplanement gains.

American Airlines continues to be the largest carrier at Fort Smith with 58% of all enplanements during 2013. Enplanements for American totaled 49,041, down 2.99% compared to 2012. Delta enplanements totaled 35,479, down 1.72% compared to 2012.

XNA ACTIVITY
Travelers flying out of XNA during December totaled 44,521, up 5.9% compared to the 42,034 during December 2012. The airport has more than 10 service connections with five carriers. The December traffic increases at XNA and Fort Smith came against thousands of U.S. flight cancellations in early December because of major winter storms.

For all of 2013, XNA enplanements totaled 579,679, up 2.58% compared to the same period in 2012. The enplanement growth has remained stable through the year, with enplanements up 2.42% at the end of the first quarter of 2013.

Enplanements at XNA totaled 565,045 during 2012, up just 0.4% compared to 2011. Although slight, the gain prevented XNA from posting two-consecutive years of enplanement declines.

American Airlines remains the dominant carrier at XNA with around 43% of all enplanements during 2013. Delta is second with around 27% of enplanements followed by United Airline at around 15%.

XNA’s first full year of traffic was 1999, and the airport posted eight consecutive years of enplanement gains before seeing a decline in 2008. It reached a peak of 598,886 in 2007.

LITTLE ROCK, U.S. NUMBERS
Enplanements at the Bill & Hillary Clinton Airport (Little Rock National Airport) were 84,442 in November, down 10.46% compared to November 2012.

Enplanements for the first 11 months of 2013 were 1.002 million, down 5.43% compared to the same period of 2012.

Enplanements in 2012 totaled 1.147 million, up 4.07% compared to 2011. The 2012 numbers ended five consecutive years of enplanement declines at Arkansas’ largest commercial field.

Enplanements in the U.S. for the first 10 months of 2013 – the most recent figures from the federal Bureau of Transportation Statistics – totaled 62.007 million, up 1.76% compared to the same period in 2012.

American Airlines reported systemwide December enplanements of 9.151 million, up 2.2% compared to December 2012. For the year, the airline reported 108.735 million enplanements, up 0.7% compared to 2012.

Delta Air Lines reported system enplanements during December of 13.36 million, up 7.1% compared to December 2012. For the year, enplanements totaled 164.656 million systemwide, just slightly ahead of the 164.591 million during 2012.

In the highly competitive retail climate suppliers and retailers that reach out to Latina shoppers stand to reap huge rewards among this growing demographic, according to Enedina Vega, publisher of Meredith Hispanic Media

Vega shared internal research about the Latina demographic to a room full of suppliers at the Bentonville Chamber of Commerce WalStreet Partnership Series held Monday (Jan. 27).

With retailers facing stagnant sales growth, one of the more immediate opportunities on the horizon involves capturing market share from the burgeoning Hispanic population. The U.S. Census estimates by 2050, Hispanics will number 133 million — 30% of the U.S. population. By 2015, Hispanics will control $1.5 trillion in annual spending.

Vega said Latino shoppers already number 52 million and their annual incomes are growing at a healthy clip. She outlined three target areas where suppliers and retailers could wield influence with this savvy demographic: beauty; baby registry; and food.

“The Latinos are a younger demographic, two of three are under the age of 35. One in six Americans is a child, but one in four Hispanics is a child,” Vega said, an indication that the Latino families are growing a faster rate than the overall U.S. population.

BEAUTY SALES
Vega said Latina shoppers spend more on beauty products — cosmetics, perfumes and  haircare — than the general population. She said they are typically brand loyal, but also outlined a couple of opportunities for suppliers who want get marketshare in this category.

“It’s important that suppliers understand the way Latinas view seasonal changes with their make-up, color pallets as well as fragrances,” Vega said.

They also have distinctly different needs for day and night, two other opportunities that suppliers have to market specific products.

While celebrity endorsements do go over well with the Latina demographic, Vega said they also appreciate simplification which is why the Clinique brand — and it’s three step process — resonates so well with Latinas.

The appeal of in-store displays matter to the Latina demographic, which is another opportunity for suppliers to work with big box retailers to present cosmetics in more of a department store setting.

But perhaps the most important aspect of marketing beauty products to Latina shoppers is a combination of coupons and free samples.

“They love buy-and-try propositions, and suppliers who furnish those opportunities along with educational tips will likely be rewarded,” Vega said.

BABY REGISTRY
One in four children born today are Hispanic, and that will become one in three by 2030, so marketing to Latina moms offers huge upside potential, according to Meredith’s research.

Vega said 37% of the Latina shoppers surveyed by Meredith with kids under 2 years old, used a baby registry, and 54% said they plan to use one. One interesting dynamic to the Latino’s use of baby registries is that they tend to register much later — third trimester or even post natal. This is uncharacteristic of the general population who tends to register in the first trimester.

Vega said this delayed reaction is cultural in nature as many Latino households don’t wish to bring baby items into the home before the baby arrives because it can be considered bad luck.

“Knowing this, and marketing to the Latina mom with a congratulations note early in the pregnancy but then continuing to speak to her through the third trimester is key,” she added.

Sears, Wal-Mart, Target and Baby’s R Us ranked as top tier physical store retailers where Latina moms said they typically register. However, Walmart.com fell to the bottom tier against diapers.com, Amazon and other purely online players. Vega said this is an opportunity for Walmart.com and its suppliers to reach out to the Latina moms with products, coupons and free samples late in the third trimester and even post natal.

FOOD CATEGORIES
Meredith research found that 45% of Hispanics are shopping for food at supercenters like Wal-Mart. Also, 70% said they shopped at Wal-Mart, with a higher average basket purchase given the larger families.

Vega said Latina shoppers appreciate value and read the food labels just like the general population. She said 50% are purchasing organic products. Pasta, whole-wheat versions, brown rice and whole grain options are very much in demand by Latina shoppers, according to Vega.

“The Latina consumer is still cooking dinner and she appreciates and uses recipes. This is a departure from previous generations who didn’t write specific instructions, rather using a little of this and a pinch of that,” Vega said.

She said Latina shoppers are very much “foodies” and 58% of their food purchases center around pleasing children and husband. They shop for all types of products, seeking to diversify away from traditional ethnic foods more often, favoring items like Greek yogurt, energy drinks, bottled water, ice cream, fruit  and soy milk.

One other important marketing element for the Latina shopper is reaching her in Spanish, while she is likely bilingual, Vega said there is are retrospective movement in place among Latino families.

“They will speak English almost exclusively until they have children of their own, then we see them reverting to speaking Spanish at home, trying to ensure that future generations don’t lose the language. Latina moms see that as something they can give their children, an advantage for them. More so than perhaps any other large ethnic group in the U.S., the Hispanics are holding on to their culture longer,” Vega said.

Full-scale chemical oxidation treatments of a chemical plume in south Fort Smith will not happen until Spring 2016 while a soil monitoring station will be installed in an occupied residence. The two items were revealed in the latest report filed by Whirlpool Corporation.

Late Friday (Jan. 24), the company submitted a revised work plan to the Arkansas Department of Environmental Quality that it said would meet the requirements of ADEQ's Remedial Action Decision Document (RADD) issued in late December 2013.

Whirlpool has spent much of the last year going back and forth with ADEQ on which measures would properly address a spill of trichloroethylene (TCE) at the facility, with Fort Smith residents watching from the sidelines. The company has admitted that the degreasing agent it used until the 1980s, which the Environmental Protection Agency has said is a carcinogen, leaked into the groundwater and is now in a plume that covers a large area at the facility and in the neighborhood to the north.

The company said the revised work plan submitted Friday was a revision of a July 2013 work plan it had submitted prior to the final RADD issuance last month.

The plan, outlined by Corporate Vice President of Communications and Public Affairs Jeff Noel, includes what he calls five key steps — pre-design, bench scale testing, pilot scale chemical oxidation injection treatments, design refinement, and expanded chemical oxidation injection treatments.

The pre-design phase was already initiated by Whirlpool in December and has been ongoing through January, according to the revised work plan document. The pre-design leads directly into the bench scale testing, Noel said.

"Based on results from the pre-design activities,a  thorough bench scale screening of oxidants is completed," he wrote. "The bench scale testing will screen oxidants using actual soil and groundwater from the Whirlpool site generating data needed for the more rigorous onsite pilot scale testing."

The pilot scale testing will take place in a location known as "Area 1." According to an accompanying map included with the revised work plan, Area 1 is located directly on the north side of the now-shuttered Whirlpool facility between the parking lot and Ingersol Avenue. A location known as "Area 2" lies next to Ingersol's westbound lane. "Area 3" lies less than a half-block north of Area 2.

"The (pilot scale chemical oxidation injection) process allows for verification and potential improvement of oxidant performance and delivery methods specific to site conditions before moving to expanded design and implementation," Noel wrote.

The chemical oxidation injection will include injecting chemicals directly into the ground in order to neutralize the TCE chemicals already found in groundwater below the surface.

The design refinement phase will make final design recommendations for eventual chemical oxidation in all three locations, known as the expanded chemical oxidation injection treatments.

"Phase I of the expanded implementation is currently planned to include oxidant injections at the three locations using methods determined to be most effective and least disruptive to the community," Noel wrote. "Phase II implementation is expected to build on Phase I by further reducing any remaining COC (constituent of concern) concentrations in the three target areas thereby enhancing the effectiveness of the ongoing MNA (monitored natural attenuation)."

While the pre-design and bench scale testing have already begun, full implementation of phase I is not scheduled to take place until Spring 2016, with phase II beginning a year later, according to Noel's submitted report to ADEQ. When a previous six month monitoring period has ended, an evaluation will determine if additional chemical injections are needed.

Previous documents have indicated 2018 as a likely date for completion, though no mention of that date was made in the latest work plan, with Noel simply stating, "The soil cover will be installed after completion of all ISCO injections."

In addition to revising the company's work plan with ADEQ, Whirlpool indicated that it would install additional soil gas monitoring that "will provide additional lateral coverage over the off-site groundwater plume area." One of the planned locations is "an occupied residential building."

"The idea is to install additional soil gas monitoring points at locations that have higher potential for vapor intrusion to occur compared with other locations in the area," Noel wrote.

The company did again stress "that there is no unacceptable vapor intrusion risk from the Site," adding that the "objective of this soil gas monitoring component is to provide additional assurance that the off-site groundwater plume north of the Site does not present a concern for vapor intrusion into the indoor air of the buildings overlying the plume."

At both the residential location, as well as another off-site location, the monitoring points will be installed at two depths, he said.

"The first will be installed just above the groundwater surface to characterize the soil gas due to volatilization of the TCE from the groundwater. The second monitoring point will be installed at a depth approximately midway between the groundwater surface and the ground surface, or at least five feet bgs (below ground surface), to characterize the degree to which TCE in vapor from the groundwater is or is not migrating to the shallower depth."

ADEQ must still approve Whirlpool's latest work plan.

Dr. Wendi J.W. Williams, a NorthWest Arkansas Community College faculty member, was named to the board of directors for the national Triangle Coalition for STEM Education.

The Coalition is a Washington, D.C.-based nonprofit organization focused on communication, advocacy and programming efforts to advance science, technology, engineering and mathematics education for all students.

Williams, a faculty member in the college’s division of science  and mathematics, was one of six new members elected to the national board. Williams will serve through the end of 2016 and represents the National Association of Geoscience Teachers.

In addition to serving on the faculty at NWACC, she is a faculty member in the University of Arkansas at Little Rock Department of Earth Sciences. Williams commits her time to assisting first generation, STEM underrepresented students with learning about opportunities afforded by higher education. She works with the intent to recruit talent into geoscience vocations by teaching in pre-college programs targeting middle/high school students (through the University of Texas-El Paso, the UA at Little Rock, the UA, and the Women’s Foundation of Arkansas’ “Girls of Promise”).

She has also been a long-time advocate for better inclusion of persons with disabilities.

Williams is a member of the National Science Teachers Association, National Earth Science Teachers Association, and the International Association for Geoscience Diversity. She is also a member of the Arkansas Governor’s Earthquake Advisory and Pre-Disaster Mitigations Councils.

Retail insiders and consultants to Wal-Mart Stores have told The City Wire the annual job elimination drill at corporate headquarters has been ongoing for the past two months with several hundred jobs between Wal-Mart and Sam’s Club home office operations being shaved from the payrolls as fiscal 2014 winds to a close.

The underlying reason cited for what some sources say are deeper than normal home office job cuts is tight budgetary constraints as the retailer’s fiscal year ends Jan. 31. Numbers from numerous sources contacted by The City Wire indicate a job cut and/or hiring freeze range between several hundred and up to 1,000.

There has no been release of this information from the company, and there seldom is where Wal-Mart is concerned as this is generally chalked up to routine annual job re-evaluation. As an employer of some 2 million, the retailer sees an active turnover rate, even at the upper income levels in the corporate office.

The last time Wal-Mart made a home office layoff announcement was 2010, when the retailer trimmed 300 jobs from the corporate payrolls. In January 2009, between 700 and 800 jobs were cut in the corporate office.

“As you probably know we haven’t announced any home office organizational changes since 2010 and we aren’t planning any broad announcements this year. It’s correct to say that individual departments look at their teams on an ongoing basis to ensure the structure is consistent with the strategy but the numbers you are suggesting is not anything I’m aware of,” Wal-Mart spokesman David Tovar noted Monday (Jan. 27) in an email.

Wal-Mart was asked to substantiate the number of open positions recently pulled from job listings and to quantify their recent home office layoffs, but the retailer said they have nothing planned like the “rumored cuts and speculation.”

The retailer is within its 30-day quiet period mandated by the federal Securities and Exchange Commission for speaking to the media on sensitive issues ahead of earnings. Wal-Mart Stores Inc. will report its fiscal 2014 earnings on Feb. 20.

Three independent consultants interviewed by The City WIre on Monday said they knew of internal streamlining underway at Sam’s Club and Wal-Mart corporate offices. Sam's Club CEO Rosalind Brewer recently revealed that the Wal-Mart division 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.

At Sam’s Club, the membership and the marketing units have been consolidated into one department eliminating several positions with that synergy. At Wal-Mart corporate some downsizing is also underway through attrition, pulled open positions (aka, hiring freeze) and position terminations.

“Those impacted are typically given 60 days notice, and told that they can apply for open jobs within the company,” one of the consultants explained.

Bill Simon, CEO of Walmart U.S., has said at any given time the retailer has between 15,000 and 50,000 jobs open. There are roughly 10,000 corporate jobs in Bentonville between Sam’s Club and Wal-Mart and their ancillary operational units.

Two former retail executives, who spoke on condition of anonymity, said they knew several individuals with more than 25 years of service who were recently informed that their home office positions were being eliminated.

Ron Loveless, a former Sam’s Club and Wal-Mart executive, told The City Wire that all brick and mortar retailers are under pressure as they are losing share to more online players. He said this is the time of year when retailers scale back their payrolls, and home office positions are not immune from that purge. Although Loveless said he has not personally heard of any major home office cutbacks at Wal-Mart and Sam’s Clubs at this time, those recently announced in club operations were likely needed.

“Wal-Mart and Sam’s Club are making substantial investments in their online operations and continue to hire people as they should. I wouldn’t be surprised if there is some downsizing of other departments as a result,” Loveless said.

He also praised the management teams of Wal-Mart and Sam’s Club, saying if cuts are being made, they likely are justified during the challenging times for the retail sector.

Analysts with Kantar Retail have said Wal-Mart is struggling with its mature brick-and-mortar formats, and they expect the retail giant to face flat to 2% same-store sales for the foreseeable future.

Wal-Mart U.S. has reported negative same-store sales for the past two quarters and Sam’s Club continues to underperform its major competitor Costco.

Wal-Mart Stores East Inc. doing business as Walmart stores in Albuquerque, N.M. will pay $87,500 and furnish other relief to settle a lawsuit for retaliation filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today, Jan. 28.

The EEOC's lawsuit charged that Walmart Store No. 835 in Northeast Albuquerque refused to hire Ramona Bradford's adult son and daughter for entry-level positions because Bradford had filed a sex discrimination charge against Wal-Mart with the EEOC. Retaliation against an employee because of her opposition to discrimination and/or participation in protected activity, such as filing a discrimination charge, violates Title VII of the Civil Rights Act of 1964.

(UPDATE) Wal-Mart spokesman Randy Hargrove provided The City Wire with the following statement:
"Walmart does not condone retaliation of any kind. We terminated Ms. (Ramona) Bradford for legitimate business reasons. We have continually maintained that we did not retaliate against her or her family and we stand by that. We’re pleased to have resolved this with the EEOC."

The EEOC also alleged that Bradford was a victim of retaliation because her two adult children were being denied employment because of her complaints about discrimination and her charge filing.
 The suit was filed in March 2007, after first attempting to reach a pre-litigation voluntary settlement through its conciliation process.

In addition to monetary relief for the Bradfords, the consent decree provides for other relief, including an injunction prohibiting retaliatory practices; training for managerial employees on retaliation; and the posting of a notice advising employees of their rights under Title VII.

Hargrove also clarified that the training Wal-Mart agreed to involves two hours in one store only.

"This case involved an interesting and instructive fact pattern — retaliation against family members because their mother had filed a discrimination charge," said Regional Attorney Mary Jo O'Neill of the EEOC's Phoenix District Office.

Arkansas’ jobs numbers were anything but positive in December, with the jobless rate of 7.4% up from 7.1% in December 2012. The labor force in December was down 1.47%, the number of employed fell 1.81%, and the number of jobless rose by 2.9% compared to December 2012.

Arkansas was one of just six states to post a year-over-year jobless rate increase, according to the report issued Tuesday (Jan. 28) by the U.S. Bureau of Labor Statistics.

Arkansas’ labor force was an estimated 1.327 million in December, up slightly compared to November, but down compared to 1.347 million in December 20102. The year-over-year comparison shows almost 20,000 fewer in the Arkansas labor force.

The number of employed in Arkansas during December was 1.229 million, above November employment of 1.226 million, but down compared to the 1.252 million in December 2012. The number of employed in Arkansas has dropped by 22,684 between December 2012 and December 2013.

The number of unemployed was an estimated 98,510 during December, down from the 99,080 in November, but up 2.77% compared to the 95,732 in December 2012.

Arkansas’ annual average jobless rate fell from 7.9% during 2011 to 7.3% during 2012. Also, December marked the 59th consecutive month that Arkansas’ jobless rate has been at or above 7%.

ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during December was an estimated 253,100, up from 252,400 in November and ahead of the 248,400 during December 2012.

Manufacturing jobs in Arkansas during December totaled 154,700, unchanged compared to November and below the 155,000 in December 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 December was 215,100, down from 215,200 in November and below the 216,200 during December 2012.

The state’s Education and Health Services sector during December had 176,500 jobs, down from the 176,600 during November and up from 173,000 during December 2012. Employment in the sector is up more than 25% compared to December 2003.

Arkansas’ tourism sector (leisure & hospitality) employed 103,400 during December, down from a revised 103,700 during November, and above the 102,900 during December 2012. At a revised 103,700, the November employment tied a record for the sector that was first reached in January 2013.

NATIONAL DATA
The BLS report also noted that 42 states had unemployment rate decreases from a year earlier, six states had increases, and two states had no change. The national jobless rate during December was at 6.7%, and was down from the 7.9% in December 2012.

Island had the highest unemployment rate among the states in December at 9.1%. The next highest rate was in Nevada at 8.8% and Illinois at 8.6%. North Dakota again had the lowest jobless rate at 2.6%.

The December jobless rate in Oklahoma was 5.4%, unchanged compared to November and up from 5.1% in December 2012.

Missouri’s jobless rate during December was 5.9%, down from 6.1% in November and down compared to 6.6% in December 2012.

The Van Buren Chamber of Commerce of today looks drastically different than the chamber of 2007. When Jackie Krutsch came to the organization more than six years ago, she brought with her a vision that she hoped would transform the direction of the chamber and expand its presence in the community.

During a time when many chambers took hard hits from the national recession, Krutsch has managed to help the organization prosper. Her commitment to see Van Buren live up to its fullest potential has had a positive impact on not just the city, but the region, as a whole.

Krutsch assumed the role of executive director in 2007, after spending eight years at Leadership Fort Smith. She approached the job with a philosophy of "if you do business in a community, you should be a member of that community and support business organizations that support you."

BUILDING RELATIONSHIPS
Krutsch moved full-steam ahead with a goal to strengthen long-standing and forge new relationships with area businesses, leaders, citizens, schools, and organizations. She immediately began collaborating with local leaders to help map out plans for the region's economic future.

"One of the areas that we were lacking very sorely was in the realm of economic development and the 'go to' person or office," said Van Buren Mayor Bob Freeman. “When Jackie became the director of the Chamber, I had someone that stepped up to help in the area of economic development.  We have had a great relationship and have also developed a great working relationship with the Fort Smith Regional Chamber and other regional partners. We both will tell you we are not where we need to be but we have come a very long way."

Krutsch has played an important role in several major projects, including the chamber's involvement with the Western Arkansas Regional Intermodal Transportation Authority. Otherwise known as RITA, the authority formed in 2009 with the "broad goal to maximize the use of all forms of transportation — rail, barge, air, interstate — so as to reduce shipping costs and increase service options for regional business and industries."

"We have supported RITA since its conception," said Krutsch. "We work in cooperation with the city and county to assist in RITA's efforts and progress."

In addition to her contributions to the RITA project, Krutsch also serves on the board of the Western Arkansas Planning and Development District, which "assists western Arkansas communities with the planning for and development of local and regional programs and projects," through a wide-range of services.

EDUCATION FOCUS
Krutsch knows that any successful long-term growth plan also includes preparations for upcoming generations. For this reason, she has worked with the Van Buren School District to help connect community leaders with today's students.

"Under Jackie’s leadership, the chamber has become involved with public schools in a very proactive fashion," said VBSD Superintendent Dr. Merle Dickerson. "The Chamber sponsors a Friday Lunch with groups of senior level students to connect them with community leaders. The lunches are a popular event with the seniors. They get to have lunch with a successful local business person and interact with him or her as they talk about what it takes to be successful after high school and college. The Chamber also sponsors a banquet at the end of the year for students who have demonstrated responsibility in a number of ways."

Krutsch is pleased by the chamber's renewed focus on education.

"We have a very strong education committee who helps with our Arkansas Scholars Program and the senior business lunches," said Krutsch. "These unique experiences give students the opportunity to interact with today's leaders. They can share about what employers are looking for,  how  to prepare for the workforce, and even discuss what is proper attire for an interview.”

In an effort to further strengthen chamber relations with the community, Krutsch also opted to bring the existing Leadership Crawford County program under her organization's umbrella in 2011. The group, which was previously ran by a group of committed volunteers, educates and challenges potential leaders to the needs and opportunities in Crawford County, with the goal of increasing their involvement in the community.

"It was a win-win for all," said Krutsch. "Not only did it provide a permanent and secure home for Leadership Crawford County, but it also gave us the opportunity to educate members on the goals of the Chamber and expand our friend-base."

MEMBERSHIP GROWTH
Despite the Chamber's steady progress in the areas of economic development and collaborative partnerships, growing the membership base proved to be a very difficult task.

"We had less than 300 when I started and hovered around the 350 mark for several years," noted Krutsch.

She and her board decided it was a time for a change and began planning a large-scale recruitment. In November 2013, the Chamber hosted a major membership drive, which involved more than 180 volunteers. Participants divided up into teams and combed the community rounding up new members. The project took nearly a year to prepare, but the work was well worth it. The result was a 90% increase in membership, with 290 members signing on during the event.
"We are in a great position now," said Krutsch. "The drive helped us build up human capital, which is key in remaining a proactive chamber."

FUTURE PLANNING
Though modest about her accomplishments, Krutsch is very proud of the goals the Chamber has been able to achieve in recent years.

"I am most pleased with how the chamber has been able to influence the culture of business leadership in Van Buren," said Krutsch. "In helping them to realize they can be proactive and not reactionary."

Mayor Freeman agrees.

"She and the Board have redefined the direction and the focus of the chamber in a very effective and positive way," noted Freeman.

As part of the its plan to see the organization and city grow, the Van Buren Chamber of Commerce has partnered with The Center for Economic Development from the University of Arkansas, Little Rock Institute for Economic Advancement (IEA) to conduct a comprehensive community assessment. The study will provide the chamber with demographic information, including projected population, income and household values, sales tax capture and leakage data, and other key economic and social information, to help provide the city an accurate snapshot of itself.

"This will direct us in doing some real strategic planning," said Krutsch. "It will assist in determining priorities for the next five plus years."

KRUTSCH FEEDBACK
Despite the obvious impact that Krutsch has had on the community, those close to her will quickly note that she remains humble about her role in all of the progress.

"She is the first to  send the success of anything we do to someone other than herself," remarked Janie Simmons, executive assistant at the Van Buren Chamber of Commerce. "She will tell you that any Chamber success is due to the volunteers and staff we have, but I will tell you that without her committed leadership it would not be the strong and vibrant organization that it is today."

Community leaders echo Simmons' thoughts.

"Jackie does not let the grass grow under her feet. She is always planning for the future and at the same time executing the plan for today," said Mayor Freeman. "Although she is not from nor lives in Van Buren, her passion for the community is obvious and very contagious. She is very good at developing and strengthening relationships with our corporate citizens, as well as small business owners and non-profit organizations.  Jackie also has the ability to reach out to people and get them involved in activities with passion and enthusiasm.”

Dickerson said he appreciates her focus on building relationships.

“She sees the 'big picture' and she establishes relationships with people in Crawford County, the River Valley, the State Chamber, and local and state government. She knows that it will take all of us to move our community and state forward,” Dickerson said.

Krutsch's dream for the Van Buren Chamber of Commerce is now a reality, with the organization experiencing record growth, and reaping the benefits of new partnerships with surrounding cities and associations. While many of Krutsch's goals for the chamber have come to fruition, she knows her work is far from over.

Northwest Arkansas’ nonfarm job growth percentage ranked No. 11 in the nation last year out of 372 metro areas, according to figures posted Tuesday (Jan. 28) by the U.S. Bureau of Labor Statistics. The Jonesboro region wasn’t far behind with a rank of 14.

The Northwest Arkansas area is up compared to a rank of 33 in 2012, and Jonesboro improved from a rank of 152 in 2012.

Fort Smith ranked 34 in 2013 with a 2.91% gain in nonfarm jobs between December 2012 and December 2013; Hot Springs ranked 342 with a decline of 0.53%; Jonesboro ranked 14 with a 3.82% gain; Little Rock-North Little Rock ranked 191 with a 1.01% gain; and Pine Bluff ranked 343 with a 0.55% decline.

Following is how each metro area ranked in 2012 and 2013 in terms of percentage growth in non-farm jobs.
Fort Smith
2013: 34
2012: 327

Hot Springs
2013: 236
2012: 342

Jonesboro
2013: 14
2012: 152

Little Rock-North Little Rock
2013: 191
2012: 243

Northwest Arkansas
2013: 11
2012: 33

Pine Bluff
2013: 343
2012: 371

The top five metro areas in terms of percentage job growth between December 2012 and December 2013 were:
1. Naples-Marco Island, Fla. (7.72%)
2. Sebastian-Vero Beach, Fla. (6.54%)
3. Columbus, Ind. (6%)
4. Midland, Texas (5.73%)
5. Flagstaff, Ariz. (5.62%)

NORTHWEST ARKANSAS ANGLE
The Northwest Arkansas Council uses a 12-month moving average model– crafted by the W.P. Carey School of Business at Arizona State University – with the BLS jobs numbers that boosts Northwest Arkansas’ ranking to the 4th spot. The statement from the Northwest Arkansas Council said the Fayetteville-Springdale-Rogers MSA equaled its best job growth ranking in the past 25 years based on the moving average data. It also ranked fourth nationally in 2001.

“Northwest Arkansas is one of the nation’s premiere job growth regions, and the statistics verify it,” Mike Malone, president and CEO of the Northwest Arkansas Council, said in a council statement issued Tuesday. “What’s exciting about this news is that it comes at a time when we know more jobs are on the way. We know Redman and Associates, South Coast Baking and American Tubing will add larger numbers of jobs this year on the heels of the more than 1,500 jobs added by Serco in 2013. We also know there are many Northwest Arkansas companies that will be adding jobs in 2014.”

Kathy Deck, the director of the Center for Business and Economic Research in the Sam M. Walton College of Business at the University of Arkansas, said the employment growth in Northwest Arkansas is broad-based.

“All of our employment sectors are showing year-over-year growth,” Deck said in the statement from the Northwest Arkansas Council. “That kind of positive environment means that new and existing companies have enormous opportunities to thrive because of a strong regional customer base and increasing incomes.”

NON-FARM FIGURES
Following are the Arkansas metro non-farm jobs data issued Tuesday (Jan. 28) by the BLS. The numbers are preliminary and do not include topline information on labor force, total employment, the number of unemployed and the unemployment rate. The complete metro data for December will be released Feb. 5.

Fort Smith
December 2013: 120,300
December 2012: 116,900

Hot Springs
December 2013: 37,400
December 2012: 37,600

Jonesboro
December 2013: 54,400
December 2012: 52,400

Little Rock-North Little Rock
December 2013: 349,000
December 2012: 345,500

Northwest Arkansas
December 2013: 224,400
December 2012: 215,500

Pine Bluff
December 2013: 36,200
December 2012: 36,400

Also on Tuesday, the BLS reported state jobless data. Arkansas’ December rate was 7.4%, up from 7.1% in December 2012. Arkansas was one of just six states to post a year-over-year jobless rate increase. December marked the 59th consecutive month that Arkansas’ jobless rate has been at or above 7%. Link here for more on the December jobs report.

The Fort Smith Convention Center saw a drop in the number of events it hosted in 2013, but that did not stop the event center from having one of its best revenue years since opening.

According to figures presented to the Fort Smith Board of Directors on Tuesday (Jan. 28), the number of events hosted in 2013 was 237, while 2012 marked 256 events. The difference from 2012 to 2013 resulted in a 7% drop.

Even though the number of events declined, figures presented Executive Director Claude Legris of the Fort Smith Advertising and Promotion Commission showed $651,157 in revenues for the year 2013, up 4.3% from 2012's total of $624,428. Much of the difference, Legris said, can be tied to the convention center beverage service, which includes alcohol sales.

Highlighting the revenue directly tied to concession and catering, Legris said the convention center had $69,408 in sales during 2013, a 70% jump from 2012 when concession and catering only brought in $40,930.

"A lot of this is in our alcohol sales. It took us a while to come up with the right procedures, the right equipment. We did have to make purchase of cash registers, a portable safe ... things of that nature. So we also had to get our procedures down. But you can see that we're picking up steam here," Legris said, highlighting the nearly 100% jump in revenues from the fourth quarter 2012 to fourth quarter 2013, when sales went from $9,685 to $18,258.

The 2013 numbers for the convention center mark its fourth best year since the convention center has been in operation, losing to 2010's figures by just more than $30,000 in revenue, Legris noted:
• 2010: $681,007
• 2008: $672,136
• 2007: $657,863
• 2013: $651,162.

During questioning from the Board, City Director Keith Lau inquired as to whether the closing of the Phoenix Expo Center (a result of Health Management Associates locating its new service center at the site of the expo center) impacted the convention center. He specially pointed to fourth quarter revenues, which showed a 46.37% increase from $139,032 in 2012 to $203,504 in 2013.

"Partly, yes," said Tim Seeberg, manager of the Fort Smith Convention Center. "We probably picked up a lot of that fourth quarter business in the last six months of the year. While my staff was worried we wouldn't meet our numbers, I was pretty confident because the phone lines were ringing. ... And a lot of that was due to the expo going away. (It) certainly helped."

Even with the convention center posting one of its strongest years, the revenues will not be enough to make the facility a standalone outfit running at a profit.

The approved budget for the convention center last year was $1.535 million, though the approved budget for 2014 is only $1.507 million. While a sign that the convention center expects to continue posting strong numbers in the year to come, the city will still subsidize the operation at the tune of $855,553.

Questioned about the convention center's profitability, Legris said directly that the city would have to continue fronting the cost of the convention center.

"The convention center does not post a profit by itself. It is a cost to this city, so it is subsidized by the city each year."

But he pointed to the total amount of sales tax collected (hospitality taxes on hotel rooms, meals, etc.) as a result of events held at the convention center — $1.327 million — and the total economic impact of events held at the convention center — a $34.19 million impact — as proof that the investment from the city is a worthwhile expense.

"From what we can see, there's going to be operating deficit for last year. But there's the return — $34 million."

It’s a long way from Burlington, Vt., to Springdale, but the communities do have something in common, according to Ben & Jerry’s chairman Jeff Furman. Both areas are rich with businesses that invest in building community spirit.

“I want to know how I get a Jones Center in my community,” Furman said as he took the stage Tuesday (Jan. 28) as part of the Serve2perform.com speaker series, hosted at the Jones Center by the local start-up Grandslam Performance Associates (GPA).

Furman was one of the three founders of Ben & Jerry’s and quite comfortable to the represent the “&” in the company brand name. He served as legal counsel for his friends Ben Cohen and Jerry Greenfield who took a $5 correspondence course on ice cream making from Penn State University in 1978, tweaked a business plan from a pizza operation, pulled together $8,000 in savings and a $4,000 bank loan to open the first Ben & Jerry’s ice cream shop.

He said by the mid 1980s the company was struggling as none of the three had any real business expertise but they decided it was time for a change and they decided to run the business differently – in a socially responsible way. 

In a interesting move the company raised needed capital by selling shares to citizens of Vermont, because they wanted to bring the community inside where together they could lobby for change as well as operate in a sustainable fashion.

“Businesses have a responsibility to give back to the world. What we do matters, it does make a difference. If you believe in it, speak up about it, or what’s the use in believing,” Furman said.

MAKING MONEY
Ben & Jerry’s CEO Jostein Solheim said people always want to know if being socially responsible really makes money. Solheim joined Ben & Jerry’s in 2010 and shared his insights on the unique business plan during the Serve2perform.com event Tuesday.

“Today we are a really big business operating under Unilever and an unusual board arrangement allows us to continue much the way we always have, with our focus on social change,” Solheim said.

He said while some may see a value-based businesses as a houseboat, not really a good business, nor a good boat, that is not the philosophy at Ben & Jerry’s.

“We’re a sail boat. We can sail around the world without refueling as we are 100% sustainable in our operations. Ben & Jerry’s is one of the best performing ice cream companies in the world — top line and bottom line,” Solheim said.

He said Ben & Jerry’s exists to bring the power of business to the social and environmental justice struggle. Without that focus, the business would have closed long ago. Solheim said one important key to the company’s success has been the passion and shared vision of the founders. 

He said people often ask him why the serious purpose and the wacky, silly names for the ice cream flavors, as the two seem at odds. He answers that fun is a main ingredient in the company's day-to-day recipe for success.

“We make sure the people who make the ice cream, supply the raw materials and distribute the product also share our vision,” he said.

One of the proudest accomplishments Furman has is the company’s stance on worker pay. He said the average pay for an ice cream maker in Vermont is roughly $16 per hour, nearly twice the minimum wage.

“I have always advocated for paying a livable wage because it makes a difference,” Furman said. “We work with suppliers and franchisees that also share our same values.”

Solheim said often when people get upset by a position or stance the company makes on a social issue, the more ice cream they sell.

SERVE2PERFORM
“We were delighted to get Jostein Solheim and Jeff Furman to launch our speaker series. Unilever, which acquired Ben & Jerry’s in 2001, was the sponsoring company that made it happen,” said GPA founder and CEO Adam Arroyos.

He said the speaker series, which will run every other month, is an opportunity for the growing membership at GPA to gain insight from world class business professionals.

GPA is a start-up launched in 2012 by Arroyos that provides a wide range of mentoring and professional development programs for soft skills. Such skills include being able to leverage professional aptitude to the fullest, grow professional networks, acquire new learning experiences and engagement opportunities. GPA has four employees and many affiliate partners such as the Jones Center, which hosted Tuesday’s event.

He said businesses lose between $450 million and $550 million annually from lost productivity, because 70% of workers are disengaged, according to the Gallup Poll Employee Engagement study published in 2013.

The largest employers in Northwest, Wal-Mart, J.B. Hunt and Tyson Foods have all joined various levels of GPA’s service programs. Arroyos said the response has been amazing as business membership continues to expand with companies like Corning, Unilever and SoftTek, as well as local organizations like the Boys and Girls Clubs of Benton County and the Northwest Arkansas Council.

Sales tax revenue rose 5.6% across Northwest Arkansas’ four largest cities in January. Bentonville, Rogers, Springdale and Fayetteville cumulatively received more than $4.293 million in sales tax revenue, compared to $4.065 million a year ago.

Individually, Rogers posted the largest increase up 14%, while Bentonville and Springdale posted year-over deficits and Fayetteville’s revenue was flat compared to the year-ago period.

January’s revenue reflects sales tax collected in November, creating a two-month lag in the reporting. Each of these cites collect a 2% sales tax. One percent is devoted to bond repayment and the remaining 1% goes into the cities’ general fund. This report reflects the latter 1%.

January 2014 Revenue
Rogers: $1.245 million, up 14%
Fayetteville: $1.463 million, up 0.8%
Springdale: $808,255, down 4%
Bentonville: $776,256, down 12%

The dip in Bentonville collections came of the heels of a record increase in December. Denise Land, finance director for the city said 2013 was a very good year, with collections 16% over budget projections. 

Duncan Donuts and Taziki’s Cafe recently opened in Bentonville, while Cracker Barrel and Chipotle Grill are under construction with openings expected in the first quarter. Several liquor stores have also opened in recent months helping to keep tax money local as well.

Rogers continues to post record revenue month after month and new construction sites along Interstate 540 near Pinnacle Hills remain active bringing more restaurants to the city. Chuy’s opened this month to big crowds reporting up to 1.5-hour waits most nights. Twin Peaks and the Longhorn Steakhouse are also underway with openings in the coming months. Baby Gap is also coming to Pinnacle Promenade, according to health department permits.

Activity in Washington County has been less robust, but the new Walmart Supercenter in west Springdale is slated to open later this year.

Springdale city officials said they were cautious with the budget last year, collecting some 3% more than budgeted. Mayor Doug Sprouse recently told The City Wire the city would stay close to those same projections in 2014.

Fayetteville reported near flat revenue for the month, but for the entire year tax revenue rose 2.84% to $18.043 million, from a year ago. Fayetteville is a major holiday shopping destination but inclement weather in December likely dented sales tax collections, according to some city officials. Those numbers won’t be out until next month.

With $10.825 million in revenue through November, the city sales tax collections were running within 1% of the budget, according to city records.

Sales tax revenue is closely tied to consumer sentiment, because consumers don’t typically spend as much money when they are concerned about their jobs or the overall economy. U.S. consumer confidence fell in November to a seven-month low as Americans grew more pessimistic about the labor market.

“Consumer confidence declined moderately in November after sharply declining in October. Sentiment regarding current conditions was mixed, with consumers saying the job market had strengthened, while economic conditions had slowed. However, these sentiments did not carry over into the short-term outlook,” Lynn Franco, director of Economic Indicators at The Conference Board, noted in a Nov. 26 report.

When looking ahead six months, Franco said consumers expressed greater concern about future job and earning prospects, but remain neutral about economic conditions. 
All in all, with such uncertainty prevailing, Franco warned that 2013 could be a challenging holiday season for retailers.

SALES TAX REVENUE (12-months)
Fayetteville
2013: $18.043 million
2012: $17.544 million
2.84%

Rogers
2013: $14.286 million
2012: $13.179 million
8.4%

Bentonville
2013: $10.103 million
2012: $9.436 million
7.07%

Springdale
2013: $10.469 million
2012: $10.266 million
1.97%

NorthWest Arkansas Community College enrolled more than 7,500 credit students for the spring 2014 semester, college officials announced Tuesday (Jan. 28). The college had a preliminary count of 7,546 enrolled on Tuesday, the 11th day of classes for the spring semester. That figure is down 6.1% or 490 students from the spring semester 11th day count in 2013.

The number of high school students enrolled concurrently in classes at the college increased. There were 572 high school students enrolled in NWACC classes this spring compared with 549 students enrolled last spring.

“We are pleased that even more high school students are taking advantage of this significant opportunity,” said NWACC’s President Dr. Evelyn Jorgenson. “Our early college experience-high school based program offers an excellent way for high school students to begin their college careers and gain some confidence that they can meet the rigorous demands of pursuing a college degree. NWACC is delighted to be able to partner with our area high schools in this project, and we are excited about opportunities for additional collaboration.”

Student semester credit hours at NWACC also decreased this spring. The total credit hours being taken this spring is 68,371, a 6.9% decrease from 73,434 credit hours in the year-ago period.
Jorgenson said the dip in enrollment is not an unexpected development.

“Community colleges across the country are seeing decreases in enrollment this academic year,” she said. “Traditionally, when there is an economic recession, more people enroll in two-year colleges to sharpen their job skills or to study for new careers. As the economy improves, they are able to return to the workforce or to move into that higher-paying job they wanted, and college enrollments go down,” she said.

Data from the National Student Clearinghouse Research Center would seem to support that assessment. In the fall 2013 semester, overall postsecondary enrollments decreased 1.5% from the previous fall, according to the center’s most recent term enrollment report.

Enrollments decreased at two-year public institutions by 3.1%. Enrollment in two-year colleges by students older than 24 years of age dipped by 6% in the fall semester, according to the center’s data.

An academic progress policy that was implemented in the fall also is affecting spring enrollment, but college leaders said the policy is critical to enabling students to achieve success in the college classroom. The policy requires students who took at least 9 hours and had a 0.0 grade point average during the previous semester to sit out for the following semester.

Dr. Todd Kitchen, vice president for learner support services, said the policy gives students and the college the opportunity to determine what happened and what needs to occur so that the student can be successful when he or she returns to the classroom.

“We’ll look at what’s going on with the individual student and what tools or services we can provide to help that student succeed,” he said. “Ultimately, this is about providing our students the best chance possible for success.”

The enrollment figure of 7,546 is still a preliminary number. Data also are reviewed for accuracy before the official report is submitted to the Department of Higher Education prior to a late February deadline.

In the 2012-13 academic year, NWACC served almost 20,000 students. These included 12,140 unduplicated credit students (all students served throughout the academic year, not just one semester’s enrollment), 4,299 students served through workforce development, 247 students served through personal education and enrichment programs, and 3,134 students in adult education programs such as GED.

Steven Hinds, executive director of public relations and marketing, said credit enrollment only represents a part of the college’s service to the greater community.

The college’s non-credit certified retail analyst program continues to serve a significant number of Northwest Arkansas residents pursuing this high-demand skill set, Hinds said. There are 88 students enrolled in the program and another 44 taking prerequisite courses so that they may enter the program.

Analysts and retail experts anticipate strong, charismatic leadership from Doug McMillon when he takes the reins from Wal-Mart Stores Inc. CEO Mike Duke on Saturday (Feb. 1).

Not to take anything away from the success of Duke’s tenure, but McMillon is faced with the task of moving the retail juggernaut through what some believe is one of the most transformational periods in retail history.

Just 47-years old, McMillon is among the 71% of incoming CEOs to be promoted from within, according to a study by Booz & Company. The study also found that one in four CEOs promoted since 2012 worked exclusively for that company.

Michael Exstein, and analyst with Credit Suisse, gave McMillon a favorable nod on Wednesday (Jan. 29) when he upgraded Wal-Mart shares to “outperform” from a “neutral” position. (Credit Suisse conducts investment banking business with Wal-Mart and is compensated accordingly.) He said over the past several years, Wal-Mart has responded to its changed place in the competitive environment, rather than its historic place of setting the retail agenda for much of the industry to follow. 

Exstein and other retail experts outlined key areas where they think McMillon might focus his energy to produce the greatest results for shareholders, public perception and the retailer’s 2.2 million employees.

“The ‘fill-in’ trip, exposure to gasoline, and one-on-one customer marketing are among the recent issues that Wal-Mart has lacked a head start in,” Exstein said. “We expect McMillon to delineate plans for a small store format and the acceleration of its roll out,  to rationalize the international operations and to recommit to general merchandise, where business is increasingly up for grabs as some big box retailers continue to close stores.”

Analysts see McMillon as a “cool character” and one who pays attention to details.

“I do not think Doug see’s himself as a caretaker,” said Faye Landes, retail analyst with Cowen & Co.

She said companies chose CEOs “on their ability to move the needle forward and effectively handle anything that might come out of the blue. Doug is a very appealing leader.” (Landes in an independent analyst, with no holdings or compensation received from Wal-Mart Stores.)

MOVING THE NEEDLE
“While comparable store sales have been challenged, there are a lot of close-in opportunities that can move the needle,” said Jason Long, CEO of Shift Marketing Group.

He said as Wal-Mart finally seems to be making a serious commitment to their small store format, he wonders if Walmart stores may be as common as Starbucks in the not too distant future. Long said as other big-box retailers are shuttering stores, there is an opportunity for Wal-Mart to benefit.

Carol Spieckerman, CEO of New Market Builders, agreed. She said Target, once viewed as a major competitor to Wal-Mart, is faltering and this could be the time for Wal-Mart to reach out to Target customers.

“There is a short window of opportunity for Wal-Mart here, but they would have to move quickly,” Spieckerman said.

Exstein said Wal-Mart has been distracted by the immediate need to address several company-specific issues related to the merchandising, technological, and operational aspects of its business. As Mike Duke successfully tackled these issues during his tenure, McMillon is now in a position to make more strategic changes.

JUGGLING PERFECTION
The retail CEO of the future is one that must be able multitask like no other, according to Spieckerman. She said as the digital, mobile, physical and social aspects of retail collide, an effective leader for a company as complex as Wal-Mart will expend a lot energy “keeping the pins the air.”

To Wal-Mart’s credit, she said, they have been agile, testing multiple initiatives at once and then rolling them out with little fear of failure – especially after they made the investments in @WalmartLabs.

At the same time, Wal-Mart is often singled out for low wages, something Spieckerman said is somewhat unfair as hourly retail worker jobs industrywide have lagged other sectors. 

“Wal-Mart is very good at redefining the argument, and I expect this will continue,” she added.

Cameron Smith, CEO of Cameron Smith & Associates, said it’s not that employee sentiment is at a concerning low, but it could be better.

“That being said, this is Doug’s forte,” Smith added.

Another area in which McMillon is deemed proficient is having the knack of empowering the leaders beneath him. Spieckerman said this will be a huge advantage if McMillon can mobilize effective leadership below on many different simultaneous tasks and have them report up to him.

“The company has become quite diverse in recent years, a radical change from the traditional buyers and merchants, adding software developers, marketers, IT engineers and content creators. Getting this diverse group on the same page will be a big job,” she  said.

E-COMMERCE GAINS
The experts in this report agree that Wal-Mart’s commitment to e-commerce has the most potential to grow company sales long term. Exstein said McMillon is poised to benefit by the commitments to information technology and e-commerce under Duke’s tenure.

Smith said with the ease of price shopping today, Wal-Mart’s Everyday Low Price strategy can’t compete alone in the growing omichannel world. He said the headline could read, “Doug’s biggest challenge will be to bring Wal-Mart into a leadership role on omnichannel" as they are estimated by some to be two years behind Amazon.

“Wal-Mart has earned the right to be compared against Amazon, and there is huge opportunity here if Wal-Mart continues to leverage its physical scale,” Spieckerman said.

In the November 2013 call with investors, Wal-Mart said investments in e-commerce would impact earnings about 10 cents a share. As Wal-Mart has 3.24 billion shares outstanding, that figure suggests Wal-Mart’s global investment in e-commerce this year is in the range of $324 million.

The retail giant expects to grow e-commerce sales to $10 billion through end of fiscal 2014, which is Jan. 31. Online sales were $7.7 billion during fiscal 2013.

INTERNATIONAL EFFICIENCIES
McMillon, in his international boss role, has focused during the past five years on improving efficiencies within the diverse international operations.

Conversion to Everyday Low Price strategies in Brazil and China has not been without its challenges. Factor in regulation changes in India and the dissolution of its partnership with Bharti and expansion in Canada, and there is no rest for the weary.

Exstein said Wal-Mart has yet to rationalize its lower-return international division, but the opportunity is likely approaching as the Foreign Corrupt Practices Act (FCPA) investigation nears conclusion.

“McMillon is uniquely qualified to initiate this rationalization having previously overseen the international division, and he appears realistic in holding this segment to higher levels of performance standards. Rightsizing the segment would enable Wal-Mart to reallocate incremental capital toward higher-return initiatives domestically, including refocusing on general merchandise and coming up with an integrated gasoline strategy,” Exstein said.

DATA SHARING
In this time of massive data gathering, Spieckerman said Wal-Mart faces key decisions about how they share this new Big Data with suppliers going forward. She said McMillon helped to pioneer vendor-managed systems at Wal-Mart years ahead of other retailers. The Retail Link system gives suppliers up-to-date transparency access which can be used to better manage shipments and sales data.

But the data now collected on shopper preferences, brand awareness and price sensitivity goes several layers deeper.

“How much of the data will Wal-Mart hand over to suppliers? Will they charge for it or will they expect suppliers to share all the data they are collecting as well?,” Spieckerman asked. “Many of the larger consumer packaged goods suppliers are already involved in direct-to-consumer operations, further blurring the lines between supplier and retailer.”

RISKS TO SUCCESS
Exstein listed several risks that pose a threat to his firm’s upgrade of Wal-Mart shares. He said failing to act decisively when addressing issues such as the Foreign Corrupt Practices Act, efficient small store expansion and shoring up productivity in the international arena could keep Wal-Mart from re-establishing its industry leadership.

Exstein said other retailer FCPA issues have typically settled within two years, which is where Wal-Mart finds itself.

Lack of food inflation also threatens Wal-Mart’s net margins, which is why the retailer is prepared to focus on general merchandise. 

Lastly, negative headlines regarding general business practices, labor issues and healthcare costs could create some headwind for Wal-Mart shares. That said Exstein does not think media headwinds – bad publicity – will ultimately inhibit Wal-Mart’s forward progress.

Shares of Wal-Mart Stores (NYSE: WMT) closed Wednesday (Jan. 29) at $74.10, down 57 cents in heavy volume. During the past 52 weeks the share price has ranged from a $81.37 high to a $68.13 low.

Wall Street’s one year target price of Wal-Mart shares is $83.77. Exstein is more optimistic and has raised his Wal-Mart target price from $80 to $87.

Casey Wilson, a poultry grower near Huntsville, Ark., said three of his seven houses are heated with propane gas and with two-week old birds and frigid temperatures he is quickly burning through the fuel supply.

“I don’t even want to think about what it’s going to cost when I have to call the fuel man. I won’t have enough to last this flock,” Wilson said, Wednesday evening (Jan. 29).

The average tank holds about 1,000 gallons per poultry house. Wilson said if he has to buy more fuel, it won’t be a full tank at the higher prices.

He’s not alone.

National Chicken Council President Mike Brown said his trade group is working with federal agencies, organizations and stakeholders to help alleviate the spot shortages being experienced with very tight supply reported in 31 states, including Arkansas.

Poultry is big business across the south, and areas from Arkansas to Georgia have been hit with frigid temperatures during the past two months.

“NCC fully understands that adequate residential heating must be the first priority, but, at the same time, it will be important to work to minimize the potential disruption to the food supply, especially animal agriculture. Chicken companies are not placing baby chicks in growout housing unless there is an assured supply of propane. NCC’s animal care/welfare guidelines call for the chicken during growout to be comfortable and free of stress from a harsh environment, such as a growout house being too cold,” Brown said.

Arkansas Attorney General Dustin McDaniel issued a consumer alert Wednesday to inform Arkansans about the cause of the spike in prices and to offer advice to those who are affected.

Spot wholesale propane prices have rallied $3.987 per gallon across the Midwest states this week, according to the U.S. Energy Information Administration. The price jumped 138% during January. The spot residential prices across the Midwest rose to $4.202 per gallon this week. 

The AG’s office said it has received dozens of calls about the price surge.

“I share the concerns about the high cost of propane, and I hope that these prices are only an anomaly because of the extremely cold temperatures and supply shortages. The retail price of propane is based largely on supply and demand, just like any free-market commodity,” McDaniel said. “However, we will continue to monitor propane prices for possible price gouging and look for other ways to assist consumers.”

Last week, Gov. Mike Beebe declared a state of emergency in Arkansas because of the propane shortage. During the state of emergency, the state’s price gouging law is in effect. That law prohibits businesses from increasing prices more than 10% unless the increased price is directly related to costs imposed by a supplier or because of higher labor and materials costs.
 
If propane retailers or distributors reach agreements with competitors on prices, that is price fixing. Federal and state antitrust laws prohibit fixing of prices. Any consumers with direct knowledge of price fixing of any commodity, including propane, should contact the Attorney General’s Consumer Protection Division.

Wilson said local poultry growers are already operating on razor thin margins and there is no room from doubling propane and fuel prices. Poultry houses will likely sit empty before farmers go into more debt, he said.

Net income during 2013 for Fort Smith-based Arkansas Best Corp. was $15.8 million, much better than the $7.7 million loss in 2012 and the most the company has earned in a year since 2008. The per share earnings of 59 cents also blew past the consensus estimate of 47 cents per share.

Full year revenue for the transportation holding company was $2.299 billion, up more than 11% compared to the $2.065 billion in 2012. The largest subsidiary of Arkansas Best is ABF Freight System, one of the largest less-than-truckload carriers in the U.S.

Fourth quarter net income was $10.3 million, a big shift from the $7.9 million loss during the same quarter in 2012. The per share earnings of 38 cents also beat the 31 cents per share that was the consensus estimate among the analysts who follow the company.

However, the company had to deduct $1.435 million from fourth quarter earnings for expenses related to the new collective bargaining agreement with the International Brotherhood of Teamsters. That charge and other smaller accounting changes pushed recording fourth quarter net income to $8.4 million, or 31 cents per share.

"After a very challenging year in which we negotiated and implemented a new five-year labor agreement with the International Brotherhood of Teamsters, I am very pleased to report that ABF Freight ended the year with solid profitability, substantially reversing the unacceptable trend of losses in 2012," Judy McReynolds, Arkansas Best President and CEO, said in the report issued early Thursday (Jan. 30). "While that lengthy process was ongoing, we continued to make important strategic investments in our emerging businesses, all of which reported increased revenues and are well positioned for additional growth in 2014."

The company is also reducing the number of terminals it operates. In the conference call with analysts, McReynolds said ABF reached agreement with the Teamsters to consolidate 21 small terminals into nearby larger facilities.

Combined with the 8 terminal consolidations that occurred in the second half of 2013, this change of operations will result in reducing the total number of ABF Freight facilities to 248,” McReynolds noted in a transcript provided by Seeking Alpha.

Work to consolidate the terminals is set to begin in the first quarter of 2014.

Brad Delco, a transportation industry analyst with Little Rock-based Stephens Inc., has said a complete “rationalizing” of the ABF terminal network could ultimately generate up to $32.5 million in annual savings for Arkansas Best, with each terminal closed saving the company just short of $1 million.

‘MORE STABLE ECONOMY’
Arkansas Best Corp. officials announced Oct. 30 that the ABF National Master Freight Agreement was ratified by the Teamsters’ ABF National Negotiating Committee. The new contract covers about 7,500 employees of ABF Freight System who are members of the union. Most of those workers are drivers.

The company has said the agreement will result in savings of between $55 million and $65 million a year. The savings come from an immediate 7% wage reduction that is recovered by the fifth year of the contract. The wage and benefit reductions were set to begin Nov. 3. The company was also able to negotiate for flexibility in work schedules and work across job classifications. Most of those workers are drivers.

The company said an increase in business resulting from “a more stable economy,” and higher shipping rates boosted fourth quarter earnings. The federal Bureau of Economic Analysis on Thursday reported its “advance” estimate that the U.S. GDP grew 3.2% in the fourth quarter compared to the third quarter. GDP was up 4.1% in the third quarter.

Tonnage shipped during the quarter was up 2.7%, and full year tonnage was up 3.4%. Shipments per day increased 5.6% in the quarter and were up 3.3% for the year. Billed revenue per hundredweight was up 2.3% in the quarter, but up just 0.1% for the year.

McReynolds said in the morning call with analysts that the company was able to renew contracts in the fourth quarter with a 4% increase. However, the company is estimating $4 million in lost business from the January winter storms that hit much of the country.

BUSINESS DIVERSIFICATION
Company officials are also making progress on their goal to diversify their revenue stream by boosting business through their non-asset (businesses other than ABF Freight) divisions. For the year, ABF Freight generated $1.761 billion in operating revenue, or 76.6% of total operating revenue. The percentage is down from 82.5% during 2012. Growing overall revenue while reducing the percentage of revenue from ABF better insulates the company from negative events in the less-than-truckload sector.

“For full year 2013 together, Arkansas Best's emerging non-asset-based businesses demonstrated strong, positive increases in revenue and operating margins and produced positive cash flow,” the company noted in the earnings report. “Because of continued growth throughout the year, these businesses now represent 25% of total consolidated revenue and contributed significantly to Arkansas Best's operating results.”

The value of diversifying revenue is evident when comparing operating income of the segments. For example, ABF Freight generated 76.6% of the revenue during the year, and 52.5% of the operating income. Panther Logistics, the second largest subsidiary of Arkansas Best, generated 10.7% of operating revenue, but cranked out 36.4% of the total operating income among the five subsidiaries.

SEGMENT NUMBERS
• ABF Freight
Operating income
2013 (January-December): $10.033 million
2012 (January-December): -$19.8 million

• Panther (premium logistics freight services)
Operating income
2013 (January-December): $6.956 million
2012 (January-December): $2.402 million (Panther was acquired in June 2012)

• Domestic/Global transportation management
Operating income
2013 (January-December): $2.973 million
2012 (January-December): $3.013 million

• Emergency/preventative maintenance
Operating income
2013 (January-December): $3.274 million
2012 (January-December): $1.935 million

• Household goods moving
Operating income
2013 (January-December): $1.85 million
2012 (January-December): $692,000

Arkansas Best shares (NASDAQ: ABFS) closed Thursday at $33.40, up $1.18. During the past 52 weeks the share price has ranged from a $35.96 high to a $9.62 low.

Acxiom Corp. saw its third quarter net income rise to $15 million, up from $14.5 million one year ago. Revenues also climbed higher to $277.87 million during the quarter, an improvement from $273.1 million in the previous year.

The Little Rock-based data marketer – which has been downsizing its workforce, realigning its internal operations, and expanding its client offerings – saw higher revenue in two of its three key segments.

• Marketing and Data Services revenue for the third quarter increased 6 percent to $207 million compared to $195 million for the third quarter of last year.

• IT Infrastructure Management revenue was $62 million in the recent quarter, down 11 percent as expected from $70 million in the same period last year.

• Revenue from other services for the third quarter was $9 million, up from $8 million in the comparable prior-year period.

“We are thrilled with the progress made since our release of the Acxiom Audience Operating System,” said Acxiom CEO Scott Howe. “After just four months since launch, we now have more than 30 customers that are implementing or testing one or more aspects of AOS.”

AOS, Audience Operating System, is a new technology for data marketing and insights that Acxiom has developed.

Acxiom’s stock (NASDAQ: ACXM) closed trading on Wednesday at $32.15 per share. The firm’s shares have traded between $16.43 and $38.71 during the past 52 weeks.

Murphy Oil Corp. saw a diminished fourth quarter due to its spin-off of its refinery and retail operations, but its full-year earnings topped $1 billion.

For the fiscal year, Murphy Oil’s 2013 net income cleared $1.12 billion, up from $970.9 million one year ago. In the fourth quarter, the El Dorado-based firm saw profits fall to $75.4 million, down from $158.7 million in 2012′s fourth quarter.

A variety of one-time charges swung earnings lower in the fourth quarter, including lower oil sales prices and higher expenses for the abandonment of operations in the Republic of Congo.

In August 2013, Murphy Oil spun off its refinery and retail operations into a new public company, Murphy USA.

Murphy Oil CEO Roger Jenkins noted that 2013 was a “pivotal year” for the company.

“We distributed to our shareholders all the stock of our former U.S. downstream subsidiary, Murphy USA Inc., which created a significant value enhancement for our shareholders. We also repurchased $500 million of company stock, removing almost eight million shares from the market,” he said.

“Additionally, we continue to progress the disposition of the U.K. downstream business, which is expected in 2014; this will complete the transition of Murphy Oil to an independent exploration and production company.”

Murphy Oil shares closed trading on Wednesday at $60.47. The company’s stock has traded between $50.92 and $66.20 per share during the past year.

Wal-Mart’s board of directors has outlined the pay structure for the two highest ranking CEOs recently promoted from within the company ranks. The contract details were spelled out in filings with the Securities and Exchange Commission on Wednesday (Jan. 29).

CEO Doug McMillon will take the retailer’s reins on Feb. 1 earning a base salary of $1.2 million per year, subject to an annual adjustment. McMillon will also continue to be eligible for an annual cash incentive under the company's management incentive plan, based on performance criteria.

For fiscal 2015, McMillon’s target cash incentive payment under the plan will be 320% of his base salary, with a maximum possible payout of 400% of his base salary.

Equity based compensation of 48,710 shares of restricted stock will be awarded annually, vesting in three years. This perk is valued at roughly $3.6 million at the present share price of $74. Also on Jan. 24, McMillon received two additional stock awards in connection with the promotion. The first valued at $4.5 million will vest on Jan. 31, 2015. The second award vesting on Jan. 31, 2016 has an approximately value of $5.2 million around the $74 share price. Each of these stock compensation awards are contingent on performance goals being achieved.

Last year CEO Mike Duke, set to retire Feb. 1,  earned a total compensation of $20.69 million, including $13.6 million in stock awards, $4.37 million in bonus incentives and a base salary of $1.315 million.

As CEO of Walmart’s International division, McMillon earned total compensation of $9.56 million last year, including a base salary of $929,748, bonus pay of $1.55 million and stock awards of $6.5 million.

David Cheesewright will take over the control of Walmart’s International division on Feb. 1 earning a base salary of $1.150 million, subject to annual adjustments, to be paid in Canadian dollars.

Cheesewright will continue to reside in Canada, but also maintain a home in Bentonville, according to company sources. He received a one-time $2 million payment related to his transition back to the United States and the elimination of certain allowances and tax equalization associated with his prior expatriate positions. He is also eligible to receive an annual cash incentive based on performance goals achievement. His target cash incentive payment under the plan will be 240% of his base salary, with a maximum possible payout of 300% of his base salary.

Equity-based compensation of approximately $1.5 million in restricted shares will also be earned. These shares vest in three years.

Cheesewright is set to receive an annual equity award valued at $4.5 million ($74) per share over the next three year period, pending certain criteria are met.

Addition stock awards given in connection this promotion involved 38,634 shares that will vest on Jan. 31, 2015 and 43,808 shares that vest on Jan. 31, 2016. These two stock awards have present-day values of $2.85 million and $3.24 million, respectively.