Three Wall Street analysts liked what Tyson Foods execs had to say last week, and approved of the solid first quarter performance — the best in company history. J.P. Morgan analyst Ken Goldman raised the 2014 earnings estimates for Tyson thanks in part to healthy near-term fundamentals.

Goldman lifted his 2014 earnings estimate to $2.84 from $2.76 a share in light of Tyson management “forging a first-class protein company.”

Kenneth Zaslow at BMO Capital Markets was equally optimistic on Tyson’s earnings prospects in the coming years, but was not as specific on what the earnings figures will be in 2014 and 2015.

Given Tyson management’s projected 2014 earnings to reach at least $2.78 a share, Zaslow said that he expects the company to top expectations by between 10% and 15% in both 2014 and 2015.

Farha Aslam, analyst with Stephens Inc. raised her estimates for fiscal 2014 to $2.90 a share from $2.82.

Aslam applauded Tyson’s ability to manage its four business units to generate consistent growth along with its strong cash flow and the ability to make future acquisitions.

She expects strong profitability in poultry and higher expectations for beef this year and predicts higher pork earnings and prepared foods contributions will lift 2015 earnings.

Shares of Tyson Foods traded at $36.19, up 17 cents on Tuesday morning (Feb. 4). The  shares retreated Monday, after setting a new 52-week high of $38.25 following Friday’s earnings.

The annual cattle inventory report confirmed that the U.S. cattle herd shrunk 2% from a year ago, according to a U.S. Department of Agriculture annual report. What's more, the 87.7 million head of cattle and calves is the smallest U.S. herd since 1951, according to Derrell Peel, livestock marketing specialist with Oklahoma State University.

The beef cow inventory was 29 million head, down 0.9% from last year and the smallest beef cow herd since 1962. The numbers indicate that the industry is poised to begin rebuilding in 2014, weather permitting, Peel said.

Among the 10 largest beef cow states, the cow herd was up in five states and down in five. The largest decrease in cow numbers occurred in Texas, followed by South Dakota, Montana and Kentucky and Nebraska. Beef cow numbers increased in Arkansas, Kansas, Missouri, Oklahoma, and North Dakota, Peel notes. On net, he said there was a slight increase in beef cow numbers in the top ten beef cow states. 
 
The inventory of beef replacement heifers was up 1.7%, a bit smaller than pre-report expectations. But Peel notes that the number of beef replacement heifers as a percent of the beef cow herd, at 18.8% was the largest in more than 20 years, including the last cyclical expansion in the early 1990s. Beef replacement heifers increased in seven of the top 10 beef cow states, resulting in a 4.1% net gain.

Peel said only Montana, North Dakota and Kentucky had fewer replacement heifers compared to last year while Texas, Missouri, Oklahoma, Nebraska, South Dakota, Kansas and Arkansas had an increase from 2013. Oklahoma led the increase among states with 45,000 more beef replacement heifers, an increase of 16.1% year over year. Arkansas’ beef replacement heifers increased 6.2% year-over-year to 137,000 head, according to the USDA report.

The 2013 U.S. calf crop was 33.93 million head, down 1% from 2012. A smaller calf crop, combined with increased heifer retention and fewer feeder cattle imports, resulted in a 2.7% decrease in estimated feeder cattle supplies. As of Jan. 1, there were 24.8 million head of feeder cattle, down from 25.5 million head one year ago. Inventories of steers over 500 pounds were down 2.5%, calves under 500 pounds were down 3.7% and other (not for replacement) heifers were down 5%, Peel notes.

The fact that cattle on feed was also down 5% limited the decrease in estimated feeder supplies outside of feedlots to 2.7%. Estimated feeder supplies as a percent of the 2013 calf crop was 72.9%, down from 74.2% past year and below the ten year average of 74.4%. This indicates that a smaller than average percent of feeder cattle supplies were carried over from 2013 into 2014. 

The number of cattle grazing small grains pasture on Jan. 1 in Kansas, Oklahoma and Texas was 1.61 million head, up 20% from last year and the highest total for the region since 2010. The share of estimated feeder supplies in these three states on January 1 increased to 25.7% up from the 2013 low of 25.1 percent but still below the ten year average of 28.3 percent.
 
The Jan. 1 cattle inventories for all cattle as well as beef cows can be the lows from which the industry rebuilds over the next several years, Peel said. However, the industry is vulnerable to drought conditions that could re-intensify this spring and postpone herd expansion once again. Market signals for expansion are strong and growing and the industry is poised to respond. 

“We know what we want to do; we just don’t know what Mother Nature is going to let us do,” Peel said.

The percentage increase in year-to-date Arkansas gross tax collections fell to 2.1% in January compared to a 3.4% level in the December report. Also, sales and use tax collections continue to come in below the budget forecast, a potential sign of uncertainty among Arkansas consumers.

Year-to-date gross revenue (July 2013-Jan. 2013) totaled $3.482 billion, 2.1% above the same period last year and above forecast by 0.7%, according to the report issued Tuesday (Feb. 4) by the Arkansas Department of Finance and Administration.

Individual income taxes for the fiscal year totaled $1.68 billion, up 0.5% from last year and 1% above the budget forecast. Year-to-date sales and use tax collections were $1.279 billion, up 3.4% above last year and below forecast by 0.7%. Income taxes and the sales and use tax collections are the two primary sources of state revenue.

“Sales and Use tax represented the major drag on collections in January. Collection growth was only 0.2 percent compared to year ago and 4.0 percent below forecast. Weaker than expected retail sales to consumers accounted for this result,” John Shelnutt, head of the Department of Finance and Administration’s Economic (DFA) Analysis & Tax Research division, noted in his report.

Corporate income tax collections for the first seven reporting months of the fiscal year totaled $234.5 million, up 6.9% compared to last year and 5.5% above forecast.

In a Tuesday morning interview with Roby Brock for a Talk Business Internet broadcast, Gov. Mike Beebe said consumer spending could be weather related but he does watch for trends in the tax collection reports.

“You try to follow trends, and the trend currently is that we’re on forecast,” Beebe explained. “It tells me whether or not i have to cut the forecast. ... You don’t want to get behind the curve and wait too late to have to make adjustments in the forecast, because if you do that, then it compresses in a time period decisions that can be much harder to make, or much harder to live with.”

The revenue forecast for fiscal year 2015 is $6.333 billion, up just 2.1% above the 2014 estimate. The 2015 estimate includes an anticipated reduction of $85.2 million from tax cuts approved in the 2013 Legislative Session.

JANUARY NUMBERS
January gross revenue was $560.5 million, down 3.9% above last year and 0.7% below forecast.

Individual income tax collections during January totaled $320 million, down 6.3% compared to January 2012 and above forecast by 0.2%.

Sales and use tax collections during the month totaled $178.6 million, up just 0.2% from last year and 4% below the forecast.

Corporate income tax collections January totaled $30.9 million, up $3 million from January 2013 and 11.2% above forecast.

OTHER TAX COLLECTIONS
Alcoholic beverage
July 2013 - Jan. 2013: $30.2 million
July 2012 - Jan. 2012: $29.1 million

Games of skill
July 2013 - Jan. 2013: $21.7 million
July 2012 - Jan. 2012: $19.1 million

Tobacco
July 2013 - Jan. 2013: $130.8 million
July 2012 - Jan. 2012: $131.9 million

Insurance
July 2013 - Jan. 2013: $45.3 million
July 2012 - Jan. 2012: $42.8 million

COLLECTIONS HISTORY
Tax collections during fiscal year 2013 (July 2012-June 2013) totaled $6.214 billion, up 4.9% above the previous fiscal year and up 2.5% compared to budget estimates. A result of the gain was a budget surplus of $299.5 million.

Fiscal year 2013 marked the third consecutive year of year-over-year gains. Arkansas tax collections reversed a negative two-year slide in the 2011 fiscal year, with collections up 4.5% in the July 2010-June 2011 period.

State tax collections for fiscal year 2011 totaled $5.673 billion, up 4.5% above the $5.43 billion in the 2010 period.

The biggest declines in the 2009 and 2010 fiscal years were with individual income tax collections and sales and use tax collections.

Mike Duke stepped away from the day-to-day leadership of Wal-Mart Stores Inc. on Saturday, (Feb. 1) after five years and some of the most profitable times for the retailer in decades.

Though Duke did not grant any outside media interviews, the company’s internal communications department did release a question and answer format they conducted with Duke in mid-January. Wal-Mart World made that interview public this week.

Duke said in that interview he will continue as a consultant to Doug McMillon over the next year and he will retain his board seat indefinitely to help with the smooth transition, according to company protocol. When asked about the retailer’s biggest opportunity in the next five years, Duke spoke of urgency.

“We have to move even faster, with real speed and urgency, to exceed the expectations that our customers have in how they want to shop. Technology is driving so much change. It’s at the intersection of e-commerce and physical stores where Walmart can serve customers better than any other global retailer,” Duke said in the interview.

He was asked about any advice he might give Doug McMillon. Duke answered, “You may not have enough ink for my answer. But if I could boil it down to one thing, and this is the best advice I got when I became CEO, it is to be yourself. A different role doesn’t mean you should be a different person. You got the job because of who you are, and you will succeed because of who you are. Doug is a fantastic leader. And he has succeeded because he is real, authentic, and trusted. He just needs to be himself.”

Just four other people on the planet have had the opportunity to follow Sam’s Walton’s lead as CEO of the company he founded a half century ago. Duke was asked what he most admired about Sam Walton?

“I’ll mention two things. First, he led with integrity, which is the foundation for everything. If you have integrity, you can be trusted. Without it, you won’t be able to lead. Second, I admire how Sam was able to put the emphasis on customers and on associates serving customers. He was clearly so good at communicating in an informal, approachable, and meaningful way.,” Duke responded.

Duke was also asked to share his proudest accomplishment in his 19 years at the company.

“I’ve seen so many associates – men and women at all levels across our company – learn, grow, and take on bigger roles. If I made even a tiny contribution to encourage that development, to help someone truly excel in his or her job and better serve our customers then that makes me very proud,” Duke answered.

Lastly, Duke said he plans to be out and about in stores and clubs more, which is has been one his favorite aspects of the job.

“I have great memories of visiting associates in the stores, talking with customers in their homes, and representing the company in front of global leaders. It’s been hard work but a great honor and joy,” he said.

The Iceberg, co-working center in downtown Fayetteville, the brainchild of a few local entrepreneurs opened its door two years ago, occupying the basement space of the Metro District, just off of Dickson Street.

But the two-year lease signed with Reindl Properties expired last month and the board overseeing this venture, Northwest Arkansas Entrepreneurial Alliance (NWAEA). confirmed with The City Wire that the furnishings have been packed up and moved into storage while they look for a new home.

Jeannette Balleza Collins, board member and spokeswoman for NWAEA, said the group has worked with The ARK Challenge leadership, Fayetteville Chamber of Commerce and Innovate Arkansas each looking at potential spaces in downtown Fayetteville. She said Downtown Properties Real Estate Group's Sheree Alt is also helping them search out potential spaces.

“The move-in date is likely to occur within the next two to three months,” Collins said.

Collins said the group is not giving up on the co-working space concept and the need it meets in the local entrepreneurial community.

In the meantime, the group is working with facilitator and business mentor Amy Reeves Robinson to organize an organizational Town Hall meeting on Feb. 12, at the Walmart 5 & Dime Museum Meeting Room from 6 p.m. to 8 p.m. In this meeting the group plans to brainstorm with the community about what events around entrepreneurship to pursue this year in addition to the monthly meet-ups and quarterly startup crawls.

Since March 2012, when the Icceberg opened, more than 150 individuals have used the collaborative office/workspace, according to Collins. The Iceberg has partnered with nearly 30 community, national and international organizations to host networking events, talks, panels or some other collaborative effort to create more value for the entrepreneurial community.

“Individuals based elsewhere, whether Benton County or Bangalore, India, have used the space and mailing address to conduct business in Northwest Arkansas. The configurable space has served as an office for 1 all the way to an event space for hundreds,” Collins said.

She said the most urgent needs from the community have been: a meeting space for visiting businesspeople, organizations or alliances, a place to teach classes or hold talks, as well as event spaces for sustained events like conferences, mentoring office hours and hackathons.

The Iceberg has 37 co-working members and has served as the communication hub for the 2012 and 2013 ARK Challenge team competitors, the main offices for 25 startups companies, 62 entrepreneurs and 60 mentors.

Hannah Bush and Jacob Embry have been hired at Beall Barclay & Co.

Hannah, originally from Paron, Ark., has bachelor’s degree in business administration with a major in accounting. She graduated Summa Cum Laude from Arkansas Tech University in December 2013.

Bush was in the Beta Gamma Sigma Honor Society and a 2013 Who’s Who Among Students in American Colleges and Universities. She assisted the universities accounting department for three semesters during her senior fellowship and was the president of the Accounting Club. Bush also spent much of her time being an accounting tutor for the College of Business.

Embry, a Huntsville, Ark., native, received a golf scholarship from the University of Arkansas at Fort Smith and received his bachelor’s degree in business administration and accounting in December 2012. He gained additional education during is accounting internship at First National Bank in their accounting department. After graduating from the university and completing his internship, Jacob worked for Frost, PLLC as a tax staff accountant.

WIth many global markets in turmoil, retailers are scrambling to invest in regions where they can score market share as well as profits. For now that’s Canada.

Wal-Mart said Tuesday (Feb. 4) that it plans to invest $500 million this year adding 35 new supercenters, improving its supply chain distribution system and expanding its e-commerce operation in Canada.

In the process the retailer said it will create 7,500 new jobs with this expansion effort. Walmart Canada operates a chain of 389 stores, including 247 supercenters, serving more than 1.2 million customers each day. In addition, Walmart Canada’s flagship online store, walmart.ca, is visited by 300,000 customers daily.

“Customers in every region of Canada are looking to save money on their entire list of shopping needs,” said Shelley Broader, Walmart Canada’s president and CEO. “Delivering on our commitment to help lower the cost of living is our top priority, and our growing network of supercenters and our expanding e-commerce offering enable us to do just that.”


Wal-Mart's expansion plans comes a week after Target Corp said it would open nine new stores across Canada, adding to the 124 it opened last year. Over the past year U.S. retailers such as Wal-Mart and Target have expanded in Canada, posing a threat to local retailers such as Loblaw Cos Ltd, the country's largest grocer, and Empire Co Ltd's Sobeys grocery chain.

Much of Walmart Canada’s investment will focus on growing its share of the food and grocery market, converting stores to its supercenter format and building out its supply chain to support it growing number of stores, according to Stewart Samuel, program director and analyst with IGD Services (Canada) Inc.

“While Walmart is targeting primary shopping missions, Target’s food and grocery offer is more focused on top-up and convenience driven missions,” Samuel said. “Walmart offers a much broader range of products particularly in terms of fresh foods and produce.”

He said the other big difference for Walmart is the e-commerce piece.
 
“This is a priority development area for Walmart, as it continues to expand the number of products offered online. Target has not yet brought its e-commerce proposition to the Canadian market,” Samuel said.
 
Walmart Canada detailed that it plans to spend $378 million this year, adding one million square feet of physical retail space. Another $91 million is earmarked for distribution network improvements to grow the company’s fresh food capacity. The remaining $31 million is tagged for e-commerce projects.

The retailer said each supercenter carries more than 100,000 items in addition to offering specialty services like pharmacies, garden centers and vision care. Walmart Canada’s online products total 150,000, with everything from toothpaste to fitness equipment. The site also offers free shipping throughout most of the Canada as well as Canada Post pick up.

In October, then Walmart International CEO Doug McMillon told investors, “We are growing quite a bit faster than the market in Canada that's driven not only by our comp store, new store performance, but also the 39 Zeller stores that we took over and converted earlier in the year. so happy to see us growing a lot faster than the market in Canada.”

He said the retailer would continue to invest in Canada, particularly in e-commerce to ensure it is standing tall there.

Overall, Samuel said the new investment plans highlight how Walmart Canada is focused on expanding the reach of its grocery offerings to new catchments and shoppers, and in the context of the broader Canadian food and grocery market, it will continue to account for the majority of new space growth.

Tuesday's (Feb. 4) meeting of the Fort Smith Board of Directors dealt almost entirely with issues most other city governments would probably find to be ordinary and mundane.

But for Fort Smith, a city that has been dealt its share of economic blows, the spate of ordinance zone requests before the Board Tuesday and the recent planning commission meeting in January show that activity may be returning to the city, though one official said it is too early to form any opinions.

Wally Bailey, director of planning services for the city of Fort Smith, spoke to the Board about five of the seven items on its Tuesday agenda. In the planning commission meeting in January, he said there were 28 projects up for consideration, the highest he had seen in about a year.

"You know, I don't know (why there has been a surge)," he said. "It was interesting. We don't really know what caused it, so many applications. That particular agenda, we had 28, 29 items on the agenda. That was probably the biggest agenda we've had in quite some time. And certainly the most we had in 2013. And it was the most significant development items we had had at one time."

The first item to come before the Board was the development of two six-unit apartment buildings at 4615 Old Greenwood Road. At the present time, the property houses a mini-storage facility.

The property, which had been zoned commercial (General Commercial and Commercial Heavy Special, C-5-SPL), backs up to the Pavilion Shopping Center and was re-zoned to residential (Residential Attached and Residential Multi-Family High Density, RM-4).

Bailey said he had no estimate of what the development would cost to construct, though renderings of the planned apartments show what appear to be high-end apartments not commonly seen within the Fort Smith region.

Another amendment to the Master Land Use Plan included a request at 1412 South 34th Street, where City Administrator Ray Gosack said a planned gated community would be erected on property owned by the Cancer Support House, though Bailey clarified that Rick Griffin would be the developer of the property, which will include five duplex structures he described after the meeting as being "very nice."

"The duplexes, I don't know what amenities they're putting into those, what it will cost."

The remaining three amendments to the zoning map all dealt with private businesses:
• Re-zoning 3900 and 3920 Rogers Avenue from Transitional (T) to Commercial Light (C-2), which would allow a salon and spa business to locate at the existing property;
• Re-zoning 5400, 5401 and 5451 Phoenix Ave from Industrial Light (I-1) to Commercial Heavy (C-5), allowing a liquor store to build at the site as well as plan for future development of the properties; and
• Re-zoning 8201 and 8205 Veterans Avenue from Not Zoned to Industrial Light (I-1) for the development of a contractor's office.

The only contentious issue of the meeting was a resolution concerning the placement of a cell phone tower in Carol Ann Cross Park, an issue that also came before the planning commission but was primarily a parks issue since the tower would sit on park land.

City Director Philip Merry urged his fellow Board members to table the issue or vote no, in order to explore other sites for the 170 feet tall communications tower.

Following a discussion among the Board, Merry ended up being the only dissenting vote on the resolution.

Bailey said even though he was not sure whether the small projects that came before the Board Tuesday were a sign that a shift was happening in Fort Smith's economy, he said projects in the works — such as the redevelopment of the Fianna Hills Country Club— were the true sign that developers are ready to open their wallets again and move dirt, thereby creating jobs.

"I think there for some time, we were seeing after the economic downtown from 2008 and forward, that there was a lot of hesitancy to jump in and spend money. (People) really didn't know what was going to happen with the economy, so I think investors were a little bit hesitant to invest. Developers were a little bit hesitant to put their own money into it. So I think it's a good sign that on that scale, that there is interest from those that are in the development business wanting to do things. Thinking out there, getting property ready. Moving forward. Testing the waters. …I think that is a good sign."

In other business, the Board spent over an hour in executive session conducting a performance review of Gosack. Following the conclusion of the performance review, Mayor Sandy Sanders said Gosack's next scheduled performance review would be conducted in July.

This was Gosack's sixth performance review since 2011, though City Director Pam Weber has declined to say why she requested the review at the last City Board meeting in January.

Merry also declined to discuss the contents of the meeting, saying that it would violate protocol. Asked specifically what items were discussed, Merry again declined to provide specifics.

"We had our discussion. Things were dealt with."

Tyson Foods Inc. unveiled a new line of breakfast items under its offerings Tyson Day Starts products.

The line of frozen breakfast sandwiches includes ingredients such as cheeses, vegetables, eggs and sausage, ham and chicken and are part the meat giant’s plan to grow its value-added sales through more convenience products.

“We value the feedback and input of our consumers and turned to breakfast eaters to understand what they are looking for at breakfast time. These insights revealed they want a breakfast they can heat quickly and take on-the-go,” said Carolyn Rehbock, vice-president for insights and innovation at Tyson Foods.

The breakfast varieties include biscuit sandwiches, breakfast flatbreads and wrapped omelets – ready to eat in less than two minutes. In conjunction with the launch of Day Starts, Tyson Foods is also partnering with Florida Orange Juice, according to the release.

The hostile takeover effort against Van Buren-based USA Truck by Knight Transportation is over. At least for now.

The two trucking companies announced Tuesday (Feb. 4) the settlement of litigation filed Oct. 10, 2013, by USA Truck against Knight. The lawsuit, filed in Crawford County Circuit Court, accused Knight officials of “improperly using USA Truck's confidential information to begin a creeping hostile acquisition of USA Truck at a price that the Board has unanimously concluded does not reflect the Company's full intrinsic value.”

Prior to the lawsuit, Phoenix-based Knight went public on Sept. 26 with a $9 per share bid for USA Truck – which at the time was a 39% premium from USA Truck’s share price on Sept. 25. The share purchase and assumption of liabilities creates a $242 million deal. At risk in a deal with Knight would be some or all of the 500 jobs at USA Truck’s corporate headquarters in Van Buren.

The USA Truck management and Board of Directors rejected the offer, saying it “substantially undervalues” the company and does not reflect the value of potential gains from ongoing turnaround initiatives.

On Oct. 17, USA Truck filed a quarterly earnings report that was better than what market watchers expected. The company reported a third-quarter loss of $602,000, a big improvement over the $6.072 million loss posted in the third quarter of 2012. For the first three quarters of the year, the income loss for USA Truck is $3.975 million, better than the almost $19.5 million loss during the same period of 2012.

Officials with Knight were not impressed.

“Knight continues to believe that its $9 per share, all-cash proposal fully and fairly values USA Truck, especially in light of USA Truck’s consistent underperformance, including nine consecutive quarters of losses totaling approximately $30 million,” Knight noted in a statement issued Nov. 4.

But Knight’s push to convince USA Truck shareholders to sell the company has been brought to a legal “standstill.” The deal announced Tuesday notes that “Knight Transportation will not acquire any securities or assets of USA Truck, propose any tender or exchange offer to acquire USA Truck securities or any consent solicitation, or seek representation on the Board of Directors of USA Truck,” until Sept. 30, 2014. Also, Knight will not vote with the USA Truck share it owns at the USA Truck shareholders meeting.

“We are pleased that the parties have reached a settlement. USA Truck's management team and employees have been focused on executing plans to restore the Company's profitability and unlock its earnings leverage potential through improved operational excellence, profitable revenue growth and cost effectiveness,” explained the statement from USA Truck. “Nevertheless, by eliminating any of the distractions that have been created by this litigation, the settlement is a positive outcome for USA Truck's employees, customers and shareholders.”

Officials with Knight issued this statement: “Our agreement with USA Truck represents a positive outcome for our company, as it resolves all related litigation while preserving our flexibility with respect to our investment. Knight Transportation may continue to own shares in USA Truck and, subject to the terms of the agreement, may consider its options in the future regarding that investment. At this time, our focus is on leveraging our industry-leading operating efficiency to continue gaining market share and meeting the needs of our customers while considering other potentially value-enhancing external growth opportunities.”

Halting the Knight attempt is the second successful pushback by USA Truck officials against a takeover attempt within the past three years. Indianapolis-based Celadon announced in October 2011 its intent to acquire USA Truck. USA Truck officials rejected the request, and Celadon moved to an easier target. Celadon officials sold the shares of USA Truck on Feb. 28, 2012, and on Feb. 29 announced it had “purchased a significant portion of the operating equipment of Teton Transportation, Inc.”

Shares of USA Truck (NASDAQ: USAK) closed Wednesday at $13.81, up 23 cents. During the past 52 weeks, the share price has ranged from a $16.38 high to a $4.37 low. The company is scheduled to release its fourth quarter and full year earnings report on Feb. 11 before the markets open.

Drive Medical, a Boston-based durable medical equipment manufacturer, said it continues to see robust demand for its growing catalog of products from retailers like Walmart.com, CVS, Target and Walgreen.

Wal-Mart’s Dr. John Agwunobi recently shared that the durable medical equipment category is one area of the more fertile opportunities for the retailer’s over-the-counter, pharmacy sales.

Keeping up with retailer demand can be challenging and cumbersome, according to Seth Diamond, vice president of e-commerce at Drive Medical. He said each online retailer has its unique set of requirements for uploading products to the portals available on their sites.

“Take Walmart.com for instance. They have specific image size and description requirements for each individual product that must be formatted according to protocol before it can be uploaded to the server site,” Diamond said.

SALSIFY SUPPORT
He said Drive Medical recently began using the Salsify software to streamline and manage its growing product catalog database. In the throes of the hurried holiday season, Diamond said his company added 900 products to Walmart.com’s online product catalog in a single day.

“This would have normally have taken one or two people days to weeks to complete,” he said. “We have been pleased with how well the Salsify system is helping us manage the day-to-day business with each of our retail partners.”

Rob Gonzales, co-founder of Salsify, said with such a large product offering and aggressive new product introduction schedule, the item set up process proved to be a significant challenge for Drive Medical. Even though the company has a product information management system (PIM) in place, it didn’t have the ability to organize and prepare product content that was appropriate to each retail partner.

To solve this problem, the marketing team created numerous spreadsheets for each online retail partner containing product information tailored to their individual requirements, copying and pasting product information from the PIM system by hand. Gonzales said this cumbersome system also led to numerous errors including sending incorrect UPC codes to Walmart, a mistake that is difficult to correct. The old system also created problems finding all the latest product information on any given item. It was also troublesome to update and correct errors across multiple channels since the information was decentralized.

Salsify worked to centralize all unique product information into a database repository. Gonzales said the software also structures the workflow so the marketing team can quickly review product content and create new product content in a fraction of the time it took using the old system. Drive Medical also specified the required image dimensions for each retail partner so Salsify could automatically resize product images as needed.

“This was a real time saver,” Diamond said. “We have several images for each of the thousands of products and we continually update and add new items all the time.”

Lastly, Gonzales said the Salsify software allows for automated template generation. Drive Medical uploaded Walmart.com’s template spreadsheet and mapped the Salsify fields to the specific columns in the spreadsheets. 

“This was all that was needed to automatically distribute item setup spreadsheets,” Gonzales said. “At this point, Drive Medical had Salsify publish all the product content to Walmart.com’s FTP drop location, and set up automatic publication to these destinations every week.”

Diamond said this one-day upload of 900 items to Walmart.com, quadrupled the total number of products it sells on the retailer site.

ONLINE ADVANTAGE
While Drive Medical actively sells its products to physical and online retailers, Diamond said it’s easier today to get online retailers to give suppliers an entry point.

“Our niche market is supplier manufacturers who sell to multiple online retailers, because that’s where our experience has been – the e-commerce channel,” Gonzales said.

He sees ripe opportunities for the Salsify applications that increase uploading efficiencies, such as suppliers with one- or two-person marketing teams responsible for the day-to-day management of retail product uploads and sales monitoring. Even large manufacturers like Drive Medical (1,000 employees) that sell direct online can use the help software automation systems like Salsify, he said.

Boston-based Salsify, a start-up just now two years old, said it continues to add new clients, domestic and abroad. Gonzales said the firm has grown to 12 employees and has just had a product to sell since launching the software platform about six months ago.

Salsify’s three founders: Jason Purcell, Jeremy Redburn and Gonzales are software engineers. Prior to the formation of Salsify, Purcell ran Endeca’s e-commerce business, while Redburn headed up Endeca’s product management marketing areas. Gonzales worked for IBM in research and ran inbound marketing for Cambridge Semantics, another Boston-area startup.

America’s Car-Mart has made a name for itself and its “drive easy” motto providing credit for used-car sales to generations of higher-risk borrowers since 1981. But, the changing dynamics in the subprime lending sector have thrown up a road block for the buy here, pay here used car dealer and finance company, according to analysts.

The Bentonville-based company has fallen short of Wall Street expectations in the past three of four operating quarters, each time citing heightened competitive issues that weighed down sales and allowed credit losses to tick upward.

Car-Mart will report its third quarter earnings on Feb. 18, and management will hold a brief earnings call the following day (Feb. 19) at 10 a.m. local time.

Wall Street expects the company to report 70 cents per share on revenue of $126.7 million. This compares to 84 cents a share on revenue of $118.9 million in the year-ago period.

COMPETITIVE HEADWINDS
Analysts polled by The City Wire this week noted that the heighten competition Car-Mart faces with each sale is not likely to soon subside as more subprime lenders continue to make credit available at perhaps lower interest rates than the 15% Car-Mart charges.

“Private equity firms and other initial public offering activity with companies like Springleaf Leasing are creating a lot of liquidity in the subprime auto and consumer credit space,” said Martin Kemnec, analyst with Jeffries, who rates America’s Car-Mart as a “hold” with a one-year target price of $38.

“While we believe in the strength of Car-Mart’s management team, they have some delicate balancing to do fending off the competition, growing sales and not incurring more risks in the process,” he said during a phone interview.

Jeff Williams, chief financial officer at Car-Mart, told The City Wire that the company believes the 15% interest rate charged to all of its customers is fair.

“We try to set everyone up to succeed and feel like the 15% is a good rate even for our very best customers,” Williams said.

That said, the company knows it stands to lose some of its better customers to other dealers willing to offer new cars at similar or even lower interest rates.

More independent lenders are making new auto loans to credit challenged borrowers and the packaging the credit pools into portfolios and selling that debt instrument on Wall Street to investors seeking higher yields.

SUBPRIME LOAN INCREASE
Total sales linked to subprime car loans surged 24.4% through August of 2013, according to Deutsche Bank. For the full year these subprime auto loans totaled $17.2 billion, just shy of the $20 billion record set in 2007.

Equifax reports that nearly one in three new car loans last year were to consumers with credit scores below 500. Analysts don’t see any pullback in this subprime growth market in 2014, which could present continued problems for Car-Mart.

The healthier funding environment reflects investors' interest in increasing exposure to subprime lending. Fitch Ratings believes there are a number of factors likely driving increased investor interest, including the favorable trends in operating fundamentals and potential for higher returns. However, Fitch warns the market is cyclical, and credit issues can emerge quickly larger problems emerge in the U.S. economy.

Wall Street investors have recently taken notice of the potential problem for Car-Mart. Shares (NASDAQ: CRMT) have tumbled 12.15% year-to-date, based on Wednesday’s closing price at $36.86 per share. It’s fair to note that the Russell 2000, a small cap index that Car-Mart is part of, is down 6% so far this year. The Dow Jones Industrials are also down 6%, while the S&P 500 has lost 4.19% since Jan. 1.

LOWER GUIDANCE
Despite Car-Mart’s aggressive plans to grow the number of dealership 10% annually, analysts with Jefferies and C.L. King recently reduced their earnings guidance for fiscal 2014 and 2015.

Jeffries expects Car-Mart to earn 72 cents a share in the recent quarter and $2.94 for fiscal 2014 which ends April 30. Annual 2014 profit expectation compares negatively to the $3.36 per share earned in fiscal 2013. Jeffries expect fiscal 2015 earnings per share of $3.42.

C.L. King analyst Bill Armstrong recently lowered his fiscal 2014 earnings estimate by 54 cents to $3.01 for the full year. His 2015 estimate is $3.41, down from $4.08, based on the competitive pressures already noted. King said the bulk of the earnings reduction in the back half of fiscal 2014 relates to a more conservative stance on the company’s sales growth and gross margins.

“Most of the competitive financing pressure Car-Mart is feeling is at the higher end of its vehicle price range and in its more mature stores. The company is also seeing more demand for entry level vehicles and is adjusting its inventory mix accordingly. We note entry level vehicles are frequently purchased by unseasoned customers and tend to generate higher charge-offs,” King said.

Drugstore giant, CVS Caremark, said Wednesday (Feb. 5) that it will stop selling tobacco products by Oct. 1. The play was highly scrutinized by Wall Street analysts that predict it’s a $2 billion ding to retailer’s annual topline sales. Overall, the company brought in more than $123 billion in total revenue in 2012.


The move, which drew praise from President Barack Obama, doctors and anti-smoking groups puts pressure on other retailers to stop selling tobacco as well. But in the highly competitive marketplace for retail foot traffic it could be a hard sale for other convenience chains.


CVS CEO Larry Merlo said the company concluded it could no longer sell cigarettes in a setting where health care also is being delivered. CVS and other drugstore chains have been adding in-store clinics and expanding their health care offerings. They've also been expanding the focus of some clinics to include helping people manage chronic illnesses like high blood pressure and diabetes, which has made for some awkward conversations, the company noted in the release.


"CVS Caremark is continually looking for ways to promote health and reduce the burden of disease," said CVS Caremark Chief Medical Officer Troyen A. Brennan, M.D., M.P.H. "Stopping the sale of cigarettes and tobacco will make a significant difference in reducing the chronic illnesses associated with tobacco use."


But CVS is in a unique position from some of its peers. While it trails only Walgreen in number of drugstores, it draws most of its revenue from its pharmacy benefits management business that runs prescription drug plans for employers, insurers and other customers.
 Analysts believe other drugstore chains may follow suit, especially those the see themselves as part of the health care solution.

Northwest Arkansas will get its first CVS Pharmacy by early summer as construction in already underway in Bella Vista at the intersection of Dartmoor and Bella Vista Way, (U.S. 71.)

Tyson Foods CEO Donnie Smith and his wife, Terry, have pledged $3.2 million to establish the Donald and Terry Smith Endowed Chair for International Sustainable Agriculture at the University of Tennessee Institute of Agriculture.


“The new faculty position will help bring science-based agricultural solutions to areas of the world with struggling agricultural practices and economies, as well as provide unique opportunities for the state of Tennessee,” said Larry Arrington, chancellor of the University of Tennessee Institute of Agriculture, in a news release about the gift.

Smith earned his undergraduate degree in animal science from the College of Agricultural Sciences and Natural Resources. Terry Smith is a graduate of the College of Education, Health, and Human Sciences. Smith was appointed CEO of Tyson in 2009, but worked with the company in various capacities since 1980.

The search for the Smith Endowed Chair and director for international programs is underway. The chair will help faculty develop an international dimension to their current work, with the goal is to find solutions to encourage less-equipped societies to maximize available resources in an effort to provide better nutrition for all of Earth’s inhabitants.

The college’s agriculture institute has ongoing international farming projects in Africa, Europe, South America and Southeast Asia.

The Food Price Index fell in January for the first time in three months, according to the Food and Agriculture Organization of the United Nations report. The index averaged 203.4 points for the month, down 1.3% from December and 4.4% compared to a year ago. The decline was attributed to lower prices for meats, cereals, sugars and oils.

The meat price index declined by 1.7 points, or 1% to an average of 185.2 points in January. Prices for pork and sheep meat declined, while beef and poultry prices increased marginally on demand from China and Japan, according to report.

Prices for sugar and vegetable oils declined 5.6%  and 3.8% respectively. At the same time increased supplies of cereal crops helped to lower cereal prices, down 1.6% from December and as much as 23% lower than in January 2013.

Northwest Arkansas’ job market continues to on a positive track with an almost 2% gain in the number of employed and a dip in the number of unemployed seeing the December jobless rate hold at 4.9%, unchanged from a revised November rate and below the 5.1% in December 2012.

Metro employment of 227,109 was down from the 229,699 in November 2013, but was up 1.98% compared to December 2012, according to figures released Thursday (Feb. 6) by the U.S. Bureau of Labor Statistics.

Only one metro area (Memphis-West Memphis) in or connected to Arkansas had a jobless rate decline in December compared to November. Three areas had jobless rate increases compared to December 2012, three had declines and two areas were unchanged. For perspective, 91.1% of the 372 U.S. metro areas had year-over-year jobless rate declines in December compared to 37.5% of Arkansas’ eight metro areas posting year-over-year declines.

During December, the lowest metro jobless rate in the state was in Northwest Arkansas and the highest rate was 9% in the Pine Bluff area.

The December report marked the 17th consecutive month that the region’s jobless rate has been at or below 6%.

NWA METRO NUMBERS
The size of the Northwest Arkansas regional workforce during December was estimated at 238,877, down from the 241,422 during November, and ahead of the 234,657 during December 2012. June 2013 was the first month the region’s workforce topped 240,000. The average annual monthly labor size was 231,461 during 2012, 227,938 during 2010 and 225,177 during 2009.

Following are other key figures from the BLS metro report.
• Unemployed persons in the region totaled 11,768 during December, up slightly from the 11,723 during November and less than the 11,961 during December 2012.

• The Northwest Arkansas manufacturing sector employed an estimated 27,000 in December, down from a revised 27,100 in November, and above the 26,800 during December 2012. Sector employment is down more than 21% from more than a decade ago when December 2003 manufacturing employment in the metro area stood at 34,300.

• Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 52,200 in December, up from a revised 52,100 during November, and up from the 49,700 during December 2012. The December employment level is a new record in Northwest Arkansas for the sector, although it is subject to revision in future reports. The November report had the job level at 52,200, but what was revised down to 52,100.

• Employment in the region’s tourism industry was 21,400 during December, down from 21,900 in November and up from 20,400 during December 2012. September employment of 22,300 was a new record for the sector.

• In Education & Health Services, employment was 26,000 during December, down from 26,200 during November and up from 24,600 during December 2012.

• In the Government sector, employment was 30,900 during December, down from 31,500 in November and up compared to 30,400 during December 2012.

NATIONAL NUMBERS
Unemployment rates were lower in December than a year earlier in 339 of the 372 metropolitan areas, higher in 25 areas, and unchanged in 8 areas, noted the broad BLS report.

The U.S. unemployment rate in December was 6.7%, down from 7.9% from a year earlier. Arkansas’ jobless rate was 7.4% in December, down from 7.5% in November and up from 7.1% in December 2012.

Oklahoma’s jobless rate during December was 5.4%, unchanged compared to November, and up compared to 5.1% in December 2012. The Missouri jobless rate during December was 5.9%, compared to 6.1% in November and better than the 6.6% in December 2012.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
December 2013: 4.9%
November 2013: 4.9%
December 2012: 5.1%

Fort Smith
December 2013: 7.6%
November 2013: 7%
December 2012: 7.7%

Hot Springs
December 2013: 7.5%
November 2013: 7.5%
December 2012: 7.4%

Jonesboro
December 2013: 6.6%
November 2013: 6.3%
December 2012: 6.9%

Little Rock-North Little Rock-Conway
December 2013: 6.2%
November 2013: 6.2%
December 2012: 6.2%

Memphis-West Memphis
December 2013: 8.8%
November 2013: 8.7%
December 2012: 8.7%

Pine Bluff
December 2013: 9.8%
November 2013: 9.5%
December 2012: 9%

Texarkana
December 2013: 6.8%
November 2013: 6.8%
December 2012: 6.2%

NORTHWEST ARKANSAS METRO AREA HISTORY
Past annual average unemployment rates
2012: 5.6%
2012: 6.2%
2010: 6.5%
2009: 6.1%
2008: 4.1%
2007: 3.8%
2006: 3.6%
2005: 3.3%
2004: 3.8%
2003: 3.7%
2002: 3.3%
2001: 3%
2000: 2.9%

Not only did the Fort Smith metro jobless rate jump to 7.6% in December but the November rate of 6.9% was revised to 7%, meaning that the region’s jobless rate has been at or above 7% for 57 consecutive months. However, the December report showed an increase in workforce size and the number of employed.

Metro employment of 122,466 was down slightly from the 123,011 in November 2013, but was up from the 121,200 in December 2012. The December jobless rate of 7.6% was up from a revised 7% in November and down from 7.7% in December 2012, according to figures released Wednesday (Feb. 6) by the U.S. Bureau of Labor Statistics.

Only one metro area (Memphis-West Memphis) in or connected to Arkansas had a jobless rate decline in December compared to November. Three areas had jobless rate increases compared to December 2012, three had declines and two areas were unchanged. For perspective, 91.1% of the 372 U.S. metro areas had year-over-year jobless rate declines in December compared to 37.5% of Arkansas’ eight metro areas posting year-over-year declines.

During December, the lowest metro jobless rate in the state was 4.9% in Northwest Arkansas and the highest rate was 9% in the Pine Bluff area.

FORT SMITH METRO NUMBERS
The size of the Fort Smith regional workforce during December was 132,560, up from 132,200 during November, and up compared to the 131,316 during December 2012. The labor force reached a revised high of 140,253 in November 2007.

Unemployed persons in the region totaled an estimated 10,094 during December, down from the 9,189 during November, and below the 10,116 during December 2012.

The Fort Smith area manufacturing sector employed an estimated 18,400 in December, up from 18,300 in November, and below the 18,900 during December 2012. Sector employment is down more than 35% from a decade ago when December 2003 manufacturing employment in the metro area stood at 28,600. Also, the annual average monthly employment in manufacturing has fallen from 28,900 in 2005 to 19,200 in 2012 – the first year the average has dropped below 20,000 since surpassing that level.

Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 26,300 in December, up from the 25,900 in November, and above the 25,100 during December 2012. The December employment marked a new employment high in the sector.

Employment in the region’s tourism industry was 9,000 during December, down from 9,100 in November and above the 8,700 in December 2012. The sector reached an employment high of 9,800 in August 2008.

In Education & Health Services, employment was 18,100 during December, down from 18,000 in November and above the 17,300 during December 2012. December employment tied a record for sector employment – first set in October – in the Fort Smith area. Annual average monthly employment in the sector has steadily grown since 2005 when it reached 14,000. In 2012 the average was 17,100.

In the Government sector, employment was 19,700 during December, down from 19,800 in November and up compared to 19,600 in December 2012.

NATIONAL NUMBERS
Unemployment rates were lower in December than a year earlier in 339 of the 372 metropolitan areas, higher in 25 areas, and unchanged in 8 areas, noted the broad BLS report.

The U.S. unemployment rate in December was 6.7%, down from 7.9% from a year earlier. Arkansas’ jobless rate was 7.4% in December, down from 7.5% in November and up from 7.1% in December 2012.

Oklahoma’s jobless rate during December was 5.4%, unchanged compared to November, and up compared to 5.1% in December 2012. The Missouri jobless rate during December was 5.9%, compared to 6.1% in November and better than the 6.6% in December 2012.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
December 2013: 4.9%
November 2013: 4.9%
December 2012: 5.1%

Fort Smith
December 2013: 7.6%
November 2013: 7%
December 2012: 7.7%

Hot Springs
December 2013: 7.5%
November 2013: 7.5%
December 2012: 7.4%

Jonesboro
December 2013: 6.6%
November 2013: 6.3%
December 2012: 6.9%

Little Rock-North Little Rock-Conway
December 2013: 6.2%
November 2013: 6.2%
December 2012: 6.2%

Memphis-West Memphis
December 2013: 8.8%
November 2013: 8.7%
December 2012: 8.7%

Pine Bluff
December 2013: 9.8%
November 2013: 9.5%
December 2012: 9%

Texarkana
December 2013: 6.8%
November 2013: 6.8%
December 2012: 6.2%

FORT SMITH METRO AREA HISTORY
Past annual average unemployment rates
2012: 7.7%
2011: 8.6%
2010: 8.2%
2009: 7.9%
2008: 4.8%
2007: 5.3%
2006: 4.9%
2005: 4.5%
2004: 5.2%
2003: 5.5%
2002: 5%
2001: 4.2%
2000: 3.7%

Retailers may not be feeling the love this Valentine’s Day, with total spending projections are down 6.9% from 2013 as fewer consumers plan to give gifts this year.

Consumers are expected to dole out $17.3 billion in Valentine’s Day’ spending on average $133.91 this year, with that average up 2.2% from last year’s holiday, according to the National Retail Federation.

Following a holiday shopping season that did not set records for consumer spending, cautious consumers aren’t quite ready to splurge on Valentine’s Day this year, continuing to keep their budgets in check. The retail trade group reports 54% of American’s will celebrate with their loved one this year, compared to 60% in 2013.

“Valentine’s Day will continue to be a popular gift-giving event, even when consumers are frugal with their budgets. This is the one day of the year when millions find a way to show their loved ones they care,” said NRF President and CEO Matthew Shay. “Consumers can expect Cupid’s holiday to resemble the promotional holiday season we saw just a few months ago, as retailers recognize that their customers are still looking for the biggest bang for their buck.” 

He said consumers will definitely stay within budgets whether shopping for candy, flower, jewelry or an evening out. Nearly half (48.7%) will buy candy, a third will give flowers (37.3%) and over half (51.2%) will send greeting cards. Another 19% plan to buy something sparkly, with projected jewelry sales of $3.9 billion this Cupid’s Day. The survey results indicate 37% plan to spend the evening out for an estimated cash outlay of $3.5 billion.

Men will spend $108.38 on gifts for their significant others – twice as much as women who will spend $49.41 on their special someone. And like every holiday, Americans won’t forget about their pets, 19% will buy gifts for their furry friends, spending an average of $5.51, according to the survey.

“While fewer are planning to celebrate Valentine’s Day this year, millions of shoppers will still make room in their discretionary budgets to send cards and gifts to loved ones or enjoy a special evening out,” says Prosper Insights and Analytics Director Pam Goodfellow. “Consumers can expect promotions on everything from flowers to date night dinner packages in the coming days, leaving plenty of ideas for those looking to spoil their Valentines.” 

She said consumers do their research and many will purchase gifts online. The survey found 26.3% of shoppers plan to shop online for Valentine’s Day gifts.

Following are some Valentine’s Day stats from the 2013 season according to the Retail Advertising and Marketing Association.
• 196 million roses were produced for the holiday, with 73% of the flowers purchased by men.

• The percent of women who sent themselves flowers on Valentine’s Day: 14%.

• 180 million Valentine’s Day cards were exchanged.

• 85% of cards are purchased by women.

• 61.8% of consumers celebrated Valentine’s Day.

According to the U.S. Census Bureau, history is unclear on who was the original Valentine, but the most popular theory is that he was a clergyman who was executed for secretly marrying couples in ancient Rome.

“In A.D. 496, Pope Gelasius I declared Feb. 14 as Valentine Day. Esther Howland, a native of Massachusetts, is given credit for selling the first mass-produced valentine cards in the 1840s,” notes a Valentine’s Day profile from the bureau.

The value of building permits in Fort Smith, Greenwood and Van Buren were a combined $9.469 million in January, down 26.52% compared to January 2013.

The month's building permit totals are rare in the fact that Van Buren's valuations were higher than Fort Smith's, with the city logging $4.655 million on 30 building permits to Fort Smith's $4.631 million based on 129 permits. It is the start of what could be a good year for Van Buren as several projects are planned for the city.

And while Fort Smith's northern neighbor has started the year with the bang, the first month of the 2014 started off slower for the three combined cities than the brisk year that concluded Dec. 31, 2013, where the three cities saw a combined increase of 29.06% in building permit valuations over the 12 month period.

FORT SMITH
The city of Fort Smith issued 129 permits during January with a total value of $4.631 million, a decrease in value of 49.17% from 2013's valuation of $9.11 million.

The city's valuations were largely driven by residential construction, with $1.821 million in permits issued for seven new homes.

Commercial construction, including additions, demolitions, new construction and remodels, only accounted for a cumulative total of $1.259 million during January.

GREENWOOD
Fort Smith's southern neighbor reported considerably lower valuations, as well, with only three building permits issued totaling $182,960. Greenwood's valuation for last month is a drop of 87.3% in January 2013, when the city issued $1.441 million in permits, including more than $600,000 for residential construction.

VAN BUREN
The city directly north of Van Buren posted a rare month of higher valuations than Fort Smith, largely driven by the issuance of a $4 million building permit for the new alzheimer's unit at Legacy Heights Retirement Center.

In total, the city issued $4.655 million in permits last month, a 99.55% increase from January 2013 when the city issued $2.333 million in building permits.

Had Legacy Heights not applied for the permit, the city would have posted the worst decline of the three cities, having only issued $655,400 in building permits. It would have represented a 71.91% decline in permit values.

The expansion of Legacy Heights is just one of the large projects either currently underway or planned for the city in 2014. CVS Pharmacy was issued a permit in December 2013 for a new $1.283 million store, currently under construction at the intersection of Rena Road and Fayetteville Road. Plans are also underway to permit the construction of the city's new police station at the site of the former Sherman's Grocery store, further down Fayetteville Road.

Additionally, the site of a former truck stop and used car dealership at the intersection of Fayetteville Road and Interstate 40 has been purchased, with Mayor Bob Freeman having said the site will be used for a semi-truck dealership, though no firm date for opening has been set.

2013 RECAP
Combined values in the three cities during 2013 were $203.037 million, compared to $157.32 million during 2012. The 2013 value is above the $201.079 million in 2011.

Fort Smith closed 2013 with the largest share of valuations, logging $177.687 million (a one-year increase of about 30.24% from $136.428 million in 2012), while Van Buren was the next largest with $17.067 million (a one-year increase of 38.96% from $12.282 million in 2012). Greenwood posted an additional $8.283 million, the only city to show a decrease from the previous year's total of $8.609 million (a decrease of 3.79%).

The gains in the Fort Smith market were largely from industrial construction projects at Chaffee Crossing, the construction of Mercy's new orthopedic hospital along Phoenix Avenue and various municipal construction projects across the city.

Several hundred business professionals bundled up and braved single-digit temperatures to spend the evening with David Glass, chairman and CEO of Kansas City Royals Baseball, who headlined the 87th Annual Bentonville-Bella Vista Chamber of Commerce Banquet at the John Q. Hammons Convention Center Thursday evening (Feb. 6) in Rogers.

Glass, often referred to as the most underrated Wal-Mart CEO of all time, was hired by Sam Walton in 1976 as chief financial officer for the young retail company. It took Walton several tries to convince David to join the young retail venture, but it proved to be a pivotal hire as Glass would spend the next 25 years helping to grow Wal-Mart exponentially.

“It was Glass that helped to pioneer the supercenter concept, and where would be without them,” said Dana Davis, CEO and president of the Bentonville Chamber.

Under Glass’ tenure at Wal-Mart Stores, the share price rose from $3.42 to $55, when adjusted for splits. Sales increased ten-fold and earnings soared from $628 million to more than $5.4 billion. Stores more than tripled to 4,000 and the number of employees increased from 183,000 to 1.1 million.

Davis told attendees that Glass was instrumental in integrating and automating the supply chain with suppliers, spending millions on technology advances that allowed Wal-Mart to business around the world.

These remarks were made of Glass just before he received the Sam M. Walton award, last given in 2011 by the chamber. The award was first won by Sam Walton in 1979 for his contributions to grow Bentonville and the surrounding regions. It has been awarded just four other times between Walton and Glass.

Davis confessed that Glass was lured to the banquet as the keynote speaker, so that he could be given the honor.

“Much of the growth this region and Wal-Mart have seen are credited to the leadership of David Glass,” Davis said.

Glass said they snuck the award in when he wasn’t looking, but he was deeply honored by the gesture.

Earlier in the evening, Glass took the stage as the keynote speaker. He said the last time he spoke at the same function, he joined then Gov. Bill Clinton and Sam Walton who each shared the podium that evening. 

“It went on and on and by the time we finished, the place was nearly empty,” Glass recalled. “That won’t be the case tonight.”

Promising to be brief, Glass said he wouldn’t talk baseball, though he was very excited about the Royals and upcoming spring training — especially the 70-degree weather he was anticipating in Surprise, Ariz., in the next couple of weeks. Instead, Glass talked about the rise of Wal-Mart and subsequently Bentonville and the rest of Northwest Arkansas.

“When the family first moved down here from Missouri in the mid-1970s we rented a town home in Bella Vista and my commute time to the home office was about 12 minutes and it was just a two-lane road. We finally moved to town and I cut that commute time in half,” Glass said.

He said it took the company 16 years to hit $1 billion in annual sales and another 16 years to roll over $100 billion — that’s how fast the company was growing, surpassing Sears and then K-Mart to become the nation’s largest retailer.

Glass said Sam believed in centralized management and wanted all of his sales managers who were building other regions to live in Bentonville. 

“We invested in aircraft to ensure we could get these managers out to their regions each week and then back here on Thursday so we could put our heads together on Friday and Saturday. Bentonville was good for us (Wal-Mart). It wasn’t always easy to recruit the best buyers out of New York, but it was easy to keep them once they got here,” Glass said.

He talked about the adversarial relationship Wal-Mart and all retailers had with their suppliers in those early days.

“P&G was the worst, they had all the best brands, but their sales managers wanted to do it their way,” Glass said.

“It was Sam who began to see past that adversarial tone and find some common ground — the end customer — that was were we began to focus. Sam and I made a trip to Cincinnati to see the CEO John Pepper to discuss the common ground. P&G sent a team to Bentonville and we worked together to cut costs out of the supply chain and that became the model that some 400 other suppliers have since followed,” Glass said.

He thanked the local supplier community, saying they (suppliers) became involved and have been a tremendous part of this region’s overall growth in recent years.

Glass said the Walton Family was also instrumental in the region’s continued growth. Rob Walton, Glass said, has kept his father’s vision alive at Wal-Mart and provides consistent leadership to the board of directors. He credits Jim Walton with much of the growth of downtown Bentonville, and said Alice Walton’s contribution with Crystal Bridges Museum of American Art is “as good as it gets.”

He summed up his speech saying that Bentonville is a small town to most outsiders, “Mayberry perhaps, and a long way from Manhattan, but it’s a blessed place to live.”