Wal-Mart Stores Inc. planted more seeds in Silicon Valley recently by opening a technology center in Sunnyvale, Calif., that is dedicated to growing the retailer’s digital sales.

Located about 30 miles from its San Bruno base for @WalmartLabs, the new technology branch employs about 500 with plans to double that workforce in the next few years, according to Walmart e-commerce spokesman Bao Nguyen.

Nguyen said Walmart.com chose Sunnyvale to take advantage of the talent density of engineers and software developers in the area. This is the sixth technology center rolled out by the retailer who already operates tech development hubs in Bangalore, India; Sao Paulo, Brazil; San Diego, Portland, Ore., and its e-commerce home base in San Bruno.

These centers are tasked with app development and digital coupon projects that can drive e-commerce sales. Last year Wal-Mart’s e-commerce sales totaled more than $10 billion, up 30% from the prior year.

Charles Holley, chief financial officer for Wal-Mart Stores, said the retailer is targeting a $13 billion mark for e-commerce revenue in fiscal 2014.

“We expect to grow global e-commerce sales to over $13 billion this fiscal year, with continued focus on the U.S., U.K., China and Brazil,” Holley said during the Feb. 20 earnings release.

Holley said Wal-Mart will continue to boost investments in Pangaea, its global technology platform, which helped drive sales across the retail websites in the U.S., the U.K. and Brazil last year.

“Our online websites had their most successful year in fiscal 2014, and we continue to offer a great omni-channel experience for our customers,” he said.

Carol Spiekerman, CEO of NewMartketBuilders, said the innovation labs that retailers are opening in record numbers are a big driver for the active experimentation now happening in retail. She said Wal-Mart has enjoyed a big first-mover advantage after launching @WalmartLabs in 2011. That move pressured many other retailers to do the same. Target to Home Depot, Staples, Tesco and Amazon are just some of the retailers to have opened up labs that operate largely independently from their headquarters.

Unlike the others, Spieckerman said Wal-Mart’s lab was seeded through an acquisition (Kosmix) and Wal-Mart has been more aggressive than other retailers on the acquisition front as well.

“The upshot is that retailers are once again becoming decentralized, only this time their satellite offices aren’t focused on regional buying as they have been in the past, but on developing digital and social shopping specialization,” Spieckerman said.

In effect, these tech labs are figuring out the best ways to give shoppers what they want and more. The lean, agile and entrepreneurial spirit inherent with the labs has a positive impact on a retailers’s decision-making processes and overall agility, she added.

“In the past, any proposed initiatives were vetted through retailers’ legacy systems and processes – it was very much a dare-to-succeed environment. Now, retailers are challenging their legacy organizations to rise to these new digital occasions. That’s going to raise the retail bar quickly and speed up innovation. Wal-Mart deserves a lot of credit for driving this shift,” Spieckerman said.

John Brown University Construction Management students brought home several awards from the Associated Schools of Construction Student Competition. The team placed first against ten other teams in the commercial building category and second against seven other teams in the heavy civil category. Senior Logan Willard won the best presenter award in the heavy civil category.

Each team was divided into separate construction categories. They were assigned construction project packages and spent the next 16-hours developing into proposals or bids for their projects. The final proposal included a set of project plans and specifications, bids from subcontractors and parameters about the project and project site, according to the release.

The teams were judges on their proposals and presentations based on how well they understood the project, estimated and planned the project's specifications and completed the contractual requirements.

The competition was hosted the TEXO Construction Association in Dallas.

Wal-Mart Stores filed suit against Visa this week in U.S. District Court (Fayetteville) claiming the defendant conspired with large banks to fix interchange fees charged to merchants between Jan 1, 2004 and Nov. 27, 2012. 

Much of the retail industry, including Wal-Mart, rejected a $7.25 billion settlement last fall between Visa and Mastercard over the interchange fees saying it did nothing to disclose the hidden fees or otherwise create transparency to encourage competition that would lead to lower fees for merchants and their customers. (Interchange fees are charged to merchants by the card providers each time a consumer pays with a debit or credit card.)

“Wal-Mart and all other merchants were subjected to rules and practices that harmed competition, suppressed fraud preventing technology in the U.S., and inflated interchange fees charged to merchants when customers used their credit and debit cards. As a result, many merchants were forced to pass on some of these artificially high fees to consumers,” said Wal-Mart corporate spokesman Randy Hargrove.

The suit claims that Visa raised interchange fees by 234% between 1998 to 2006. The complaint also alleges Visa’s anticompetitive conduct generated more than $350 billion in interchange fees for the colluding issuers during the damages period — fees that Wal-Mart and other retailers paid and continue to pay.

Wal-Mart’s suit comes on the heels of Visa’s complaint against the retail giant filed in June 2013 after the retailer opted out of the $7.25 settlement. The Visa suit sought to block Wal-Mart from pursuing more damages with an injunction.

“We’ve asked the U.S. District Court for the Eastern District of New York to dismiss the unwarranted suit VISA filed against Wal-Mart in retaliation for opting out and objecting to an unfair interchange settlement agreement,” Hargrove said.

Wal-Mart estimates its injuries are in excess of $5 billion.

“We continue to oppose the proposed credit card interchange fee settlement, which would give the defendants a sweeping release that poses considerable risk of abuse and does nothing to change the broken market,” Hargrove said.

Wal-Mart and much of the retail industry continue to support innovation around payment technologies that better guard against fraud. The retailer said those new payment technologies could be stifled if the settlement with Visa and Mastercard stands.

The University of Arkansas had no detailed comment on a Wednesday (March 26) ruling that football players at Northwestern University could unionize, but some of those watching the issue or have been involved in the system say the ruling could change the relationship between universities and college football players – especially at the Division I level.

Big dollars are at stake. A recent Forbes series on college football estimated that the top 20 most valuable college teams have a value of $85 million a year and generated a combined $1.3 billion of revenue in the most recent year. A September 2013 BusinessWeek article noted that 10 top college football programs saw their combined annual revenue rise from around $300 million in 2000-2001 to more than $759 million by 2010-2011.

Kain Colter, a former quarterback for Northwestern, has been the signal caller for an effort to allow players at the Chicago-based university to unionize and potentially share in the growing revenue pie. His argument is relatively simple: College football is nothing more than a commercial enterprise that garners millions of dollars – if not billions – for many university programs around the country, and the players are essentially the labor for the programs.

Peter Sung Ohr, a regional director with the National Labor Relations Board based in Chicago, agreed with Colter and his attorneys in a 24-page document released Wednesday.

“In sum, based on the entire record in this case, I find that the Employer’s football players who receive scholarships fall squarely within the Act’s broad definition of ‘employee’ when one considers the common law definition of ‘employee,’” Ohr noted.

Also in the ruling, Ohr wrote: “The Employer’s scholarship players stand in stark contrast to those student janitors due to the fact that they: (1) work in excess of well over 40 hours per week during training camp and the football season; (2) work virtually year round and have a much longer employment tenure; and (3) do not have a ‘very tenuous secondary interest’ in their employment. This is clearly established by the undeniable fact that the scholarship players’ interest and skill in playing football are far greater than a ‘very tenuous secondary interest’ but in fact a primary interest. Moreover, but for their football prowess the players would not have been offered a scholarship by the Employer.”

While Colter praised the ruling, his alma mater promised an appeal.

"While we respect the NLRB process and the regional director's opinion, we disagree with it. Northwestern believes strongly that our student-athletes are not employees, but students. Unionization and collective bargaining are not the appropriate methods to address the concerns raised by student-athletes,” noted part of a Northwestern statement.

The ruling applies directly to Northwestern, but has obvious reach for all college athletic programs. Also, the ruling will be subject to a review by the full NLRB in Washington, D.C., and could also face action in the federal court system. Wednesday’s ruling in no way immediately changes the relationship between college athlete and the university.

Because of the lack of immediacy, Kevin Trainor, associate athletic director at the University of Arkansas, declined to elaborate on the ruling.

“As today’s ruling is likely the first of many steps for this issue within the legal system, it would be premature to make any comments on the matter at this time,” he said in a statement to The City Wire.

Matt Ketcham, who played Division III college football and at one time was a certified agent for the National Football League Players Association, is doubtful that Ohr’s ruling will survive intact.

“This may be 10 years in the making. And even if it came out intact at the other end of the wash, it will be decades away before we would see anything close to that (unionization),” said Ketcham, who is an attorney at the Fort Smith-based law firm of Nolan Caddell Reynolds.

Ketcham is not totally sympathetic with the players, but he said the ruling could force the National Collegiate Athletic Association (NCAA) to review the player-university relationship.

“I’m all for the players, but to say it’s reasonable to expect a cut of the profits is crazy. But I do think they need to revamp the system and somehow acknowledge that the college player is not your average student,” Ketcham explained. “This NLRB decision may be the impetus for some type of change that has been talked about for years. Perhaps this and the appeals that will come with it will force the NCAA to change how they treat college athletes.  ... That’s probably what you’ll see come out of this thing.”

Dennis Dodd, writing for CBS Sports in a Jan. 19, 2014, column, said the effort begun by Colter is not likely to fizzle into nothing.

“If players at Northwestern can get union cards, is it worth the NCAA even existing to negotiate with them? Point being, you know it isn't going to end with Northwestern. Labor laws make it easier for private institutions to unionize right now. Even if the current movement fails, there will be appeals and appeals of appeals,” Dodd wrote. “The movement isn't going to die. This seems like some larger Norma Rae moment. Northwestern quarterback Kain Colter may have been that figure on Tuesday as the movement's de facto leader. But this isn't some Southern textile mill. This is college athletics as we know it. Unionizing attacks the very underpinnings of the entire NCAA enterprise.”

Link here for a PDF of the Ohr ruling.

Northwest Arkansas, particularly Benton County, continues to be a hot attraction for chain restaurants looking to expand their reach. Some of the fastest growing chains in the country – Dickey’s Barbecue Pit, Longhorn Steakhouse and Twin Peaks – have new restaurants planned or recently opened in Rogers near the Pinnacle Promenade.

A new report from Technomic indicates the 500 largest U.S. restaurant chains saw average sales growth of 3.5% last year, a significant decline from the 4.9% recorded in 2012. The top 500 grew to an estimated $264 billion in 2013, up more than $8.8 billion versus 2012.

"Competition for share of stomach is getting more and more challenging," said Ron Paul, president of the foodservice consultancy. "But some brands that have found a way to differentiate themselves are gaining market share."

BARBECUE AND YOGURT
Among chains with annual sales over $200 million, the fastest-growing last year included Dickey’s Barbecue Pit which was up 32.9% to $331 million. In 2013, Dickey’s opened a second location in Rogers and has since planned a third regional restaurant in Fayetteville at 3316 W. Grove Road. 

As barbecue goes, an Oklahoma Sooner legend has plans for a new Billy Sims Barbecue restaurant in Bentonville, 3511 S.E. J. Street. Plans were submitted to the Arkansas Health Department earlier this month.

Among chains with annual sales under $200 million, the fastest-growing according to Technomic included Twin Peaks and CherryBerry. Twin Peaks, despite some opposition, is going ahead with plans to build a new restaurant at Pinnacle Hills Promenade across from Target. Plans were submitted to the health department on March 25. The Twin Peaks chain grew sales 68.4% to $165 million last year.

Yogurt bar CherryBerry has opened four locations in the two-county area in the past 18 months. The chain grew sales by 63.2% to $62 million last year, according to the Technomic report.

PANDA AND LONGHORN
Limited-service restaurants saw an average sales gain of 3.9% last year. Within this category, Asian, bakery cafe and coffee cafe categories saw the greatest growth with Panda Express up 10.7%.

Last year Panda Express expanded its footprint in Northwest Arkansas with a second location at Pinnacle Hills and a third location on Martin Luther King Boulevard in Fayetteville. This California-based chain opened near the Wal-Mart Home Office more than two years ago.

Full-service restaurants saw 2.4% average sales growth, slightly down from 2012's 2.9% gain. The full-service steak category continued to show healthy gains of 6.2%, led by LongHorn Steakhouse up 12.8%. This chain opened its first restaurant in Northwest Arkansas March 17 at 2206 Promenade Blvd. in Rogers. 

LOCAL FARE
In addition to national chain restaurants the region also is seeing some local venues apply for permits.

In Rogers, Brick Street Brews applied for a permit with the health department on March 6. The location for this pub-eatery is 208 W. Walnut in downtown Rogers.

In Fayetteville, Wood Stone Pizza applied for a permit on March 19 for an eatery at 5575 S. School Avenue. Mr. O’s Nutrition Smoothie Bar also plans to open at 3980 W. Wedington, Suite 11, in west Fayetteville, according to a permit filed March 18.

Payne Brewer has joined Arvest Bank, Benton County, as senior vice president and commercial banker. He will work from the Village On The Creeks in Rogers, according the release.

Brewer has worked for Arvest Bank in Fayetteville since 1997 as senior vice president then as executive vice president and loan manager. Prior to joining Arvest, he began his banking career in 1984 with Merchants National Bank in Fort Smith, moved to First National Bank of Fayetteville in 1988 and continued with successor banks – Worthen National Bank and Boatmen’s National Bank until joining Arvest.

“Payne is a benefit to the Arvest team wherever he works,” said Mark Ryan, commercial loan manager in Benton County. “His banking experience and knowledge is a treasure both to us and to Arvest Bank customers. He understands a businesses’ financial needs and knows how to provide sound solutions and advice to our customers.”

A native of Fayetteville, Brewer earned his bachelor’s degree graduating with high honors in 1984 from the University of Arkansas at Fayetteville. He has completed Arkansas Bankers Association Lending School at Arkansas State University in Jonesboro in 1985, American Bankers Association Commercial Lending School at the University of Oklahoma in Norman, Okla.,  in 1987 and the School of Banking of the South at Louisiana State University in Baton Rouge, La., in 1993.

Brewer has also been active in community service, involved in the Fayetteville Chamber of Commerce and the United Way of Washington County. He is a Paul Harris Fellow and served as a former president for the Fayetteville Northside Rotary Club; was formerly a board member and treasurer for the Fayetteville Public Education Foundation; was a former board member for Lifestyles Inc.; and formerly served on the fundraising committee for the Arkansas Council on Economic Education. He is a graduate of the Fayetteville Chamber of Commerce Leadership Fayetteville Class of 1993.

Retail giant Wal-Mart Stores has coughed up more than $439 million in legal fees over the past two years to investigate bribery allegations and other potential violations of the Foreign Corrupt Practices Act. 



Experts say so far this probe is one of the most expensive in U.S. history. Wal-Mart said during its February earnings call compliance costs for this year would range between $200 million and $240 million, a figure that also includes the company’s internal compliance overhaul. 

Last year Wal-Mart spent $282 million on FCPA legal dealings on top of the $157 million costs in 2012, the year the probe in Mexico began and was expanded to India, China and Brazil.



"While we believe that it is probable that we will incur a loss from these matters, given the ongoing nature and complexity of the review, inquiries and investigations, we cannot reasonably estimate any loss or range of loss that may arise from these matters,” Wal-Mart noted in its recent 10K filing with the Securities and Exchange Commission.

Consumers, banks and merchants fall prey to some $11.3 billion in card fraud annually creating chargebacks and losses of $3.4 billion in 2012 for credit card issuers, according to eConsumer Services, an online merchant mediator.

The U.S. is the only country where card fraud is consistently growing. The rise of chargeback fraud is negatively affecting credit card issuers and increasing the costs of services they provide.

“Consumers are failing to realize that chargebacks are no longer an ace-in-hole and come with steep consequences,” said Gary Cardone, co-founder of eConsumer Services.

He said nearly one-third of merchants contest all chargeback claims filed, and 40% of those cases are won by merchants, resulting in an increased number of unhappy customers contacting their banks for answers. In turn, the banks become cost centers for issuers and those costs are then passed down to consumers through increased prices and fees for products and services, Cardone added.

TIME & MONEY
The average time it takes to process a credit card dispute is about 15 minutes, in comparison to the fraction of time it takes to complete the majority of other cardholder services. 

Cardone said chargeback processing is a lengthy manual process because the claim must first be validated – and taking shortcuts on this process can lead to customer dissatisfaction, or may result in the cardholder losing the right to the temporary refund they initially receive.

Local banks recently told The City Wire, they have had to add fraud divisions in recent years because of the rise in debit card usage and scams associated with electronic payments.

When a consumer realizes their debit or credit card has been used to fraudulently purchase something online, they can dispute the charge with their banks in writing. This requires time to physically go into the bank and sign the forms.

The bank can generally reverse the fraudulent charge, but will also investigate any delivery of product with the help of the merchant involved. The merchant is charged-back for the cost of the item and then will often attempt to seek payment directly from the cardholder.

eConsumer notes that there is a growing number of fraud cases that involve products delivered but consumers who say they never received their order. In these cases the merchant is apt to win out, leaving the banks and consumers at odds over the charge. 

PAYPAL TARGET
PayPal is a popular payment option but it too has been subject to negative publicity on consumer blogs resulting from chargebacks and related fees, when a purchaser and seller are odds over a transaction. As more consumers use PayPal to conduct international business they are also a target for heightened chargebacks.

Sidney Simpson from ShortsnShirtShop notes in an Aug. 26, 2013 blog: “A customer filed a chargeback on Paypal against me after I gave her a partial refund that she agreed to. I submitted all the information to Paypal showing that she agreed to the refund and she decided to go to her credit card company to resolve the issue since Paypal didn't seem to be agreeing with her. She won the case and I was charged a $20 chargeback fee over a $4 dispute.”

Other bloggers said the PayPal resolution process favors buyers not sellers. PayPal said the two most common reasons for reversals or chargebacks occur when a buyer’s credit card number is stolen and used fraudulently or a buyer doesn’t think the seller fulfilled their end of the deal.

When PayPal is notified that a buyer has filed a chargeback against a seller, PayPal emails the seller as soon as possible. Then, the seller can log into their PayPal account and go to the Resolution Center to monitor the status of the case and provide information to help resolve the matter, according to the PayPal website.

When a chargeback occurs, the money that is subject to the chargeback is deducted from PayPal's bank account. In turn, PayPal places a temporary hold on the same amount in the seller's PayPal balance (the funds related to the transaction are frozen).

PayPal encourages sellers to protect themselves against chargebacks by tracking packages, keeping records of payment proof, photos of the items shipped and saving all correspondence with the buyers.

Two months is not a trend, but home sales in Arkansas’ four largest metro areas are up almost 7% for the first two months of 2014 and were up 7.3% during February. The number of homes sold in all of 2013 was up 12.93% compared to 2012.

However, the average sales price in the four markets was down 1.88% in February and is down 3.51% for the first two months of the year.

The City Wire’s Arkansas Home Sales Report captures home sales data in the state’s 14 most populated counties within the state’s four largest metro areas — Central Arkansas, Fort Smith area, Jonesboro/Northeast Arkansas and Northwest Arkansas. The report, which records closed sales, accounts for between 70% and 75% of total Arkansas home sales.

The report, which counts the number of sales closed in February, is sponsored by Fort Smith-based Weather Barr.

FEBRUARY NUMBERS
February home sales totaled 1,350, up 7.31% in the four markets. The average price per home in the four markets was $156,897, down 1.88% compared to February 2013, but up 3.43% compared to February 2012.

There were 633 homes sold in central Arkansas, up 10.47% compared to February 2013, and up 10.66% compared to February 2012.

February home sales totaled 446 in Northwest Arkansas, down just 0.45% compared to February 2013, and up 18.62% compared to February 2012.

Jonesboro area home sales totaled 158, up 28.46% compared to February 2013 and up 18.8% compared to February 2012.

In the Fort Smith area, home sales totaled 113, down a slight 0.55% compared to February 2013, and down 19.8% compared to February 2012.

The value of the sales during February were up 1.45% in central Arkansas, up 7.4% in Northwest Arkansas, down 26.83% in the Jonesboro area, and down 1.43% in the Fort Smith region.

THE REGIONAL PICTURE
Central Arkansas — Home sales
Jan.-Feb. 2014: 1,217
Jan.-Feb. 2013: 1,142
Jan.-Feb. 2012: 1,032

Fort Smith area — Home sales
Jan.-Feb. 2014: 225
Jan.-Feb. 2013: 193
Jan.-Feb. 2012: 203

Jonesboro area — Home sales
Jan.-Feb. 2014: 280
Jan.-Feb. 2013: 224
Jan.-Feb. 2012: 216

Northwest Arkansas — Home sales
Jan.-Feb. 2014: 844
Jan.-Feb. 2013: 840
Jan.-Feb. 2012: 717

The top five counties in terms of Jan.-Feb. 2014 home sales:
Benton — 545, up compared to 489 in 2013
Pulaski — 536, up compared to 523 in 2013
Washington — 299, down compared to 351 in 2013
Craighead — 224, up compared to 174 in 2013
Saline — 212, up compared to 172 in 2013

Link here for a PDF document of the February 2014 data.

RENTAL PROPERTY PUSH?
Bob Miller and Jessica Plouch of Crye-Leike Reatlors in Benton said they’ve experienced an increase in call volume from perspective buyers, which is a trend they said began last year and has held since. Average prices in the area did fall a bit in the first two months of the year, but Plouch said it’s hard to pinpoint what could have caused that drop.

“I don’t think that’s necessarily a trend,” she said. “That just happens from time to time.”

Miller speculated that falling average prices could have something to do with a noticeable increase in interest from investors who are looking to purchase mid- to low-range homes and turn them into rental properties. It is no secret that credit standards have become tighter over the past few years and that has led to an increase in the demand for rental homes.

Miller said one thing that is still driving sales in Saline County – and markets around the state – is the U.S. Department of Agriculture’s Rural Development program has been popular as it is one of the few vehicles available for people wanting “zero down” mortgages. That program isn’t available everywhere – in Saline County, for example, every area is eligible for the program except the city of Benton.

The popularity of Rural Development could have an impact on the average price of homes selling in area. While there are a number of variables involved, the rule of thumb in central Arkansas is that a family of four applying for a loan under the program must have an adjusted gross income of $74,950 a year or less. That being the case, Rural Development is a viable option for families that can carry a mortgage on a low to mid-priced home, but not higher priced ones.

POSSIBLE WINTER IMPACT
The City Wire Economist Jeff Collins said it is difficult to pick up on any trends from looking at numbers for the first two months of the year for a couple of reasons. First of all, he said sales numbers may vary significantly from month to month, but those variances often level out over the course of a year. Picking up on trends from a couple of months’ worth of data, then, is inadvisable but economists are in a better position to discuss those trends when they have are armed with data from the first one or two quarters of the year.

Collins also said the Arkansas winter was considerably more harsh than normal. That means prospective buyers aren’t likely to go out looking at homes when there is ice or snow on the ground or if winter precipitation is in the forecast.

Still, Collins said there are reasons to be optimistic about sales growth in 2014. For one thing, 2013 was an improvement over 2012 and there is no evidence to suggest that shouldn’t continue. Also, positive growth is still the norm in Arkansas and that is particularly true in Northwest Arkansas. The Northwest Arkansas Council, last month, projected the area will grow from the February population estimate of 496,000 to 500,000 by this summer.

Collins said jobs growth and population growth in northwest Arkansas are higher than other areas of the state – statistics that translate into improved home sales in the area.

Wal-Mart showcased its futuristic truck Wednesday (March 26) at the Mid-America Trucking Show (MATS) in Louisville, Ky., a month after the world got its first glimpse during a video aired at retailer’s sustainability milestone meeting in Bentonville.

The Wal-Mart truck prototype is a tractor-trailer combination that looks like a sports car married an aerodynamic train. The companies working on the project over the past two decades believe the concept truck is the future for sustainable logistics. The WAVE is the result of collaboration between the retailer and Peterbilt, ROUSH, Great Dane and Capstone Turbine. (See the video below of the new truck.)

Walmart Logistics said its trucks log millions of miles every year, so when it comes to sustainability and fleet efficiency, the goal is simple: deliver more merchandise while driving fewer miles on the most efficient equipment. As of last year, the company achieved an 84% improvement in fleet efficiency over its 2005 baseline.

“Wal-Mart is continually looking for innovative ways to increase our efficiencies and reduce our fleet’s emissions,” said Tracy Rosser, senior vice president of transportation at Wal-Mart. “The Walmart Advanced Vehicle Experience (WAVE) is a bold step in transportation technologies that, although not on the road in its current form, will serve as a learning platform for the future that will accelerate our progress toward our goals.”

Innovation is key to improvement, and the project aims to demonstrate a wide range of new technologies and designs Wal-Mart hopes will improve overall fleet fuel efficiency and lower the company’s carbon footprint. Although the prototype runs on diesel, its turbine is fuel neutral and can run on compressed or liquid natural gas, biofuels or other fuels, the company said.

Rosser said it’s important that Wal-Mart and its partners continue to work collectively on future innovations and challenge themselves to look boldly at fleet efficiency in new and different ways.

BUILDING A CONCEPT
Wal-Mart and Peterbilt had collaborated on aerodynamic, hybrid electrification and alternative fuel projects in the past, each with incremental gains in fuel efficiency and emission reductions. The new concept tractor combines many of these projects in a single vehicle, Wal-Mart said.

“Peterbilt’s goals of producing the most fuel-efficient, aerodynamic, and lightweight trucks in the industry mirror those of Wal-Mart,” said Landon Sproull, chief engineer at Peterbilt. “Our combined efforts help build a business case for these technologies in the future, as well as support one of our best customers.”

The truck’s shape represents a 20% reduction in aerodynamic drag over Wal-Mart’s current Peterbilt Model 386. The company said by placing the cab over the engine, the truck’s wheelbase is greatly shortened, resulting in reduced weight and better maneuverability. 

Wal-Mart worked with product development supplier ROUSH to carry out the vehicle’s construction with detailed design specifications for optimum fuel efficiency. Tom Topper, ROUSH’s executive director of prototype services said the design is “revolutionary and truly world class.”

Wal-Mart said the truck is a hybrid designed to reduce the energy storage capacity for trucks to run on batteries alone. The company said with its distribution centers now located closer to metropolitan areas, transport vehicles have shorter transit times to their delivery destinations. These shorter trips reduce the vehicles’ average trip speed and create more opportunities to recover energy through regenerative braking. The generator and energy storage on the truck are scalable based on the range desired.

The truck also features a microturbine generator developed by Capstone Turbine Corporation. The company engineered the truck’s integrated hybrid drivetrain that allows the turbine to remain at optimum operating revolutions per minute (RPM), while the electric motor/energy storage handles acceleration and deceleration.

“We developed this microturbine hybrid electric drive system by assembling the best team of technology leaders in the industry,” said Steve Gillette, director of business development for Capstone. “We look forward to the day when these energy-saving features are standard offers for the market.”

The vehicle’s trailer, manufactured by Great Dane, is built almost exclusively with carbon fiber, including one-piece carbon fiber panels for the roof and sidewalls, saving nearly 4,000 pounds when compared to traditional designs, the company said. The trailer’s convex nose also enhances aerodynamics while maintaining storage space inside the trailer.

“This road-ready prototype trailer is a bold step in transportation technologies,” said Adam Hill, vice president of product and sales engineering at Great Dane. “We look forward to further collaboration with Wal-Mart to create more fuel-efficient vehicles of this type in the future.”

WALL STREET APPROVAL
Investors seemed to approve of this more sustainable vehicle sending the share prices of some of the suppliers higher since the design was first revealed Feb. 17.

Shares of CapStone Turbine (NASDAQ: CPST) rose more than 4% to $2.15 on Thursday (March 27) after Wal-Mart showcased its futuristic truck. Capstone shares have risen 35% since the design was first revealed during the sustainability conference last month.

Peterbilt shares are up 5.8% over the past five weeks since the truck was first unveiled. The shares (NASDAQ: PCAR) closed Thursday at $65.92.

Shares of Wal-Mart (NYSE: WMT) closed at $76.14, down 9 cents on Thursday. In the past five weeks the share price has risen 1.77%. Great Dane and ROUSH are not publicly traded.

While the Fort Smith Planning Commission unanimously approved the proposed planned zoning district for a proposed $20 million renovation of Fianna Hills Country Club, its future before the Fort Smith Board of Directors is far from certain. What is more certain is that the owner of the club is ready to close the doors if the Board rejects or significantly amends the new zoning district.

When the PZD comes up for a vote at the Board's April 1 meeting, at least one group of residents will come armed with a petition to limit possible uses within the PZD, according to Lisa Clay, who is leading the petition efforts.

"We are asking that (the Board) approve it as amended," she said.

The amendment, Clay said, would remove several property uses from the PZD, including medical concierge, doctor office and clinic, residential detached, family group home and professional office.

"I think that the main issue is the professional offices, medical and doctor offices and clinic," she said, adding that there is concern of what could happen to the country club should the planned $20 million development by developer Lance Beaty with Fort Smith-based FSM Redevelopment Partners fail.

"Our main issue is if the country club doesn't have enough interest, if he doesn't have that, then what is he going to do with the country club? I asked him this and he said he would use it for one of the proposed uses."

Clay's petition, which has more than 200 signatures, has attracted a lot of attention, including from the Fianna Hills Property Owners Association. FHPOA President Pat Ross said his organization has been supportive of the proposed development of the country club ever since Beaty brought the idea to property owners.

"We support the building of the Fianna Hills Country Club and Suites as Mr. Beaty has proposed and indicated he was going to do," Ross said.

But Ross said his view of the project changed following a presentation to the association by Clay, in which she explained what could happen should the country club under Beaty's ownership not be successful. As a result of the petition and Clay's assertion that Beaty could convert the country club into offices or even possibly develop the golf course into homes and apartments under its current R-2 residential zoning, Ross said he spoke with Beaty.

"Mr. Beaty called me and we started talking. I told him the board supports him building the country club and the suites. We're fully supportive of it," Ross said. "He said the (original business model of obtaining) 500 members at $30,000 apiece will probably not work. That will probably never come close to working. Basically what I'm going to do is build an office complex there and build homes on the golf course. I said that's news to me and I was not aware of that. That's where the property owners association has come in and said we'll support a new country club or renovation, but we're not supporting anything other than that. The PZD needs to sustain itself exactly where it is. The country club, we're in favor of it remaining there. That's kind of where it is."

Reached for comment, Beaty denied telling Ross that offices and homes were part of the plan.

“That comment is simply not true or is completely out of context,” Beaty said.

Beaty said his plans are to construct the country club as presented to the FHPOA and the Planning Commission. Should it need to be scaled down, it will be — all depending on market conditions.

“The plan out there is what you might call an A10 plan. If we have to go down to an A7 or A5 plan, depending on what the market will support, I will. But I’m telling you the highest and best use of that property is a club and golf course,” Beaty said.

Clay has said she has concerns regarding any sort of so-called plan B from Beaty's group and has said residents are looking at their own options should the amended PZD fail to be approved. She said there is also interest in Fianna Hills from a Dallas-based developer, ClubCorp.

"They buy country clubs that are failing and keep them a country club. They don't have a plan B that has the option to turn it into a professional office complex. So those are two pretty good options. We (wouldn't) have to worry about Mr. Beaty's plan B. Let someone else buy it who will keep it a country club."

Reached for comment late Thursday (March 27), ClubCorp Communications Specialist Patty Jerde would neither confirm nor deny that the company is looking to purchase Fianna Hills Country Club. David Mille, the owner of Fianna Hills Country Club, and Beaty said they approached ClubCorp and Troon Management. ClubCorp was not interested, but Troon has said it is interested in managing the golf course and club if Beaty is able to gain city approval to proceed on the $20 million project.

As for whether the Board will approve the originally proposed PZD or an amended version as requested by Clay and her petitioners, it is anybody's guess. Polled in just the last few weeks, there was not consensus on how the Board would vote.

Even without a consensus in the Board's responses to The City Wire, Clay said she felt confident an amended PZD would pass.

"We've heard back from most Board members, but we're still meeting with Board members. The response has been positive. Most are completely on board with keeping it a country club and member suites. They are still investigating and trying to learn more about a plan B and what these other uses could do for the community."

Mille, who owns Mid-South Steam Boiler and Engineering, scoffed at Clay’s assertions that there are ulterior motives with the plan.

“That’s totally ridiculous,” Mille said when asked about Beaty wanting to close the club to build an office complex. “Think about that. ... He’s got hundreds of thousands of square foot of open space remaining there (former Phoenix Mall). He surely doesn’t want to turn the golf club into an office complex when he’s got all that other space at Phoenix that he’s trying to sell for office space.”

Mille also countered talk that others were willing to buy the club if Beaty’s plan were not approved, saying that he has not been approached with any offers. He also challenged assertions that his talk of closing the club if Beaty’s plan is not approved is just a hollow threat.

“It’s not an idle threat. I assure you. My problem is that I’ve been subsidizing the operating capital of that club for years, and it’s gotten to the point that it’s taking a toll on me financially. And if he (Beaty) doesn’t buy it, i’m going to close it immediately.  ... when it starts to hurt your other businesses, I mean, I’m just not going to do it anymore.”

Continuing, Mille noted: “These people opposing this and spreading rumors and bad information to try to stop this, they don’t see what they are doing to Fort Smith. I have a lot of friends who are members there and I enjoy having a place for them to buy a drink or whatever, but I can’t keep subsidizing all that just because they are friends. ... Nobody is lining up to do this (buy the club), and so if this (Beaty plan) doesn’t work, you’ll see a lot of weeds and grass on the course, because I’m not doing it anymore.”

Despite a tough inquisition from Congress and the national media, Acxiom CEO Scott Howe says his company supports stronger privacy laws to protect consumer data.

Howe spoke a week ago to the Delta Trust and Bank 2014 Investment Outlook in Little Rock. He told an audience of nearly 200 that while a majority of consumers convey a “Big Brother” feeling from some data marketers, they’re also okay with it if they receive something of value in return.

“[Consumers say] I will share my information with you if in fact I get money for it, if in fact I get better offers for it, if in fact I have better interactions with companies I love,” Howe said.

Acxiom has been one of several companies under scrutiny by U.S. Sen. Jay Rockefeller , D-W.V., through the Senate Commerce Committee. Rockefeller has been holding hearings for more than a year regarding the practices of the data broker community, targeting companies like Acxiom, Epsilon and Experian.

The Little Rock-based data firm was also mentioned in a recent “60 Minutes” news report that expressed concerns about the amount and detail of data that can be collected from the public through web sites and other outlets.

Howe said he has told anyone who will listen that Acxiom supports privacy regulation of its industry if it addresses specific concerns not vague concepts.

“In every interview I have done in the last year – when I talk to ’60 Minutes,’ when I talk to CNN, when I talk to the New York Times, when I talk to the Wall Street Journal, when I talk to Sen. Rockefeller – I always say the same thing, which is: you might be surprised to learn that Acxiom is in favor of much stronger privacy regulation. And we are,” Howe said.

He outlined five areas he said could result in meaningful reforms to weed out bad players in the data mining industry and ensure protections for consumers. Howe said consumers should have a “bill of rights” that includes:
• Disclosure of the data being collected about them;
• Limiting data use to marketing only;
• Restricting use of sensitive data;
• Enforcement of security and data breaches; and
• Transparency and choice for consumers.

In recent days, Howe has also given interviews to two different advertising industry forums reinforcing his positions communicated in Little Rock last week. You can read more here and here, including Howe’s contention that drafts of privacy regulation laws being considered would be worse than the complications of health care reform.

Howe also explained to the Delta Trust audience the purpose of data collection and Acxiom’s position in the data collection ecosystem. He said “big data” and what a marketer is trying to do with it involves improving customization for shoppers and other audiences.

“They want to capture a bunch of information so they can have a better conversation and deliver a better experience to you,” Howe said.

“The goal of a global marketer, metaphorically, is to create the world’s largest spreadsheet. One that had a single row for every person on the planet – seven billion rows. And it had hundreds of thousands of columns – one for every observable piece of data,” he noted.

Howe said as the picture of data is completed, a user of the information can customize pitches to individuals to more smartly reach the right audience in a highly personalized way.

He also disclosed that Acxiom’s offer for consumers to “opt-out” of its data collection efforts has resulted in less than 2% of nearly 500,000 users choosing to do so.

An almost 5% decline in the estimated number of out-of-work Arkansans and a 0.59% increase in the number of Arkansans with jobs helped push the state’s February jobless rate to 7.1% compared to 7.5% in February 2013.

The February rate was also lower than the 7.3% in January, according to the report issued Friday (March 28) by the U.S. Bureau of Labor Statistics. However, February marked 61 consecutive months – more than five years – that the state’s jobless rate has been at or above 7%.

Arkansas’ labor force was an estimated 1.33 million in February, up slightly compared to January, and up compared to 1.328 million in February 2013. The year-over-year comparison shows an estimated 2,372 more Arkansans in the labor force.

The number of employed in Arkansas during February was 1.236 million, above January employment of 1.231 million, and up an estimated 7,314 jobs compared to the 1.229 million in February 2013.

The number of unemployed was an estimated 94,059 during February, down from the 96,952 in January, and down 4.99% compared to the 99,001 in February 2013.

Arkansas’ annual average jobless rate fell from 7.9% during 2011 to a revised 7.5% during 2012. The initial annual average jobless rate for Arkansas during 2013 is 7.5%.

ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during February was an estimated 244,800, up from 243,600 in January and ahead of the 241,700 during February 2013. Employment in the sector hit a high of 251,800 in March 2007.

Manufacturing jobs in Arkansas during February totaled 154,300, up compared to 153,600 in January and above the 153,800 in February 2013. Employment in the manufacturing sector fell in 2013 to levels not seen since early 1968. Peak employment in the sector was 247,300 in February 1995.

Government job employment during February was 215,600, up from 215,200 in January and below the 216,000 during February 2012.

The state’s Education and Health Services sector during February had 173,800 jobs, up from the 173,300 during January and up from 171,600 during February 2013. Employment in the sector is up more than 23% compared to February 2004.

Arkansas’ tourism sector (leisure & hospitality) employed 109,000 during February, unchanged compared to 109,000 during January, and above the 104,400 during February 2013. The January and February employment levels set a new record for the sector. The number is subject to revision in future reports.

NATIONAL DATA
The BLS report also noted that 49 states had unemployment rate decreases from a year earlier, and one state had no change. The national jobless rate during February was at 6.7%, and was down from the 7.7% in February 2013.

Rhode Island had the highest unemployment rate among the states in February at 9%. The next highest rate was Illinois at 8.7% and Nevada at 8.5%. North Dakota again had the lowest jobless rate at 2.6%, followed by Nebraska at 3.6%.

The February jobless rate in Oklahoma was 5%, down compared to 5.2% to January and down from 5.3% in February 2013.

Missouri’s jobless rate during February was 6.4%, up from 6% in January and down compared to 6.7% in February 2013.

Superior Industries International has appointed Margaret S. Dano, the company’s lead director, as chairman, succeeding Steven J. Borick, who is retiring from the company’s day-to-day operations, including his role as chief executive officer, effective Mar. 31,  Borick will remain on the board of directors.

Superior also named its two executive vice presidents, Michael J. O’Rourke and Kerry A. Shiba, as interim co-CEOs, while the board completes its search for a CEO successor to Borick, 61.

Dano, 54, has served on Superior Industries’ board since January 2007 and as its lead director since 2010. She has chaired Superior’s nominating and corporate governance committee and served as a member of the audit committee. Dano previously held senior management positions at units of Honeywell International, Avery Dennison, Black and Decker and General Electric.

“Steve Borick has been an outstanding leader at Superior and for the automotive industry, serving as our CEO since 2005,” Dano said. “He has been instrumental in building a strong foundation for our company, one that will serve as a solid platform for the new leadership team. I am pleased that Superior will continue to benefit from his guidance as a continuing member of our board.”

O’Rourke, 53, joined Superior in 1987. He was named executive vice president in 2008 and holds responsibility for the company’s marketing, sales and operational functions.

Shiba, 59, Superior’s chief financial officer, joined the company in 2010. He was promoted to executive vice president in 2012.

Superior said it is in the process of conducting interviews with potential CEOs, as well as additional board candidates.

“Thanks to the dedication and hard work of our employees, I am retiring at a time when Superior is healthy and postured for long-term growth,” Borick said. “My decision was primarily based on a desire to have more time for personal interests, including philanthropic activities. I wish the company and everyone associated with it all the best.”

Texting while driving is a recipe for disaster as one text takes the eyes off the road for an average of five seconds. At 55 mph, that’s driving the length of a football field completely blind, according to AT&T’s “It Can Wait” campaign aimed at educating teens against the dangers of texting while driving.

AT&T is taking the virtual texting while driving chair simulator around the state from March 28 through April 5.

The Jones Center and NorthWest Arkansas Community College will each be hosting virtual driving and texting simulations on March 31 and April 2, at their respective campuses in Springdale and Bentonville.

The simulator is a video game driving setup that houses a chair, steering wheel, pedals, and monitor for the driver. Students will be able to the 3-D driving simulation that re-creates the eyes-off-the-road and hands-off-the-wheel experience of texting while driving.

AT&T has garnered more than 3.5 million pledges in its “It Can Wait” movement and continues to educate young drivers with this simulator.

• The Jones Center event is slated between 2:30 and 6:30 p.m. on Monday, Mar. 31.

• The NWACC event is scheduled between 10 a.m  and 2 p.m. on Wednesday, April 2 in the student center.

Simmons First National Corp. CEO George Makris said recent moves have put his bank in a stronger position to serve customers and he sees significant growth for the Pine Bluff-based financial institution in the near future.

Last week, Simmons announced it would acquire Little Rock-based Delta Trust and Bank, a move that added nine locations to Simmons’ bank footprint in southeast, central and northwest Arkansas. More importantly, the $66 million deal will bring new trust, investment, mortgage and insurance products to Simmons customers.

Coming off the retail expansion of last fall’s $53.6 million acquisition of Little Rock-based Metropolitan National Bank, Makris said Delta Trust is a huge complementary move.

“What Delta brings to the table are the other lines of business that maybe Metropolitan didn’t specialize in like trust, investments and insurance,” Makris said in a Talk Business & Politics interview this week.

When the Delta Trust buyout closes later this year, Simmons First will have roughly $3.5 billion in trust management under its roof. Makris said Delta Trust’s small bank location footprint may only result in the closure of one Little Rock branch.

MERGERS & ACQUISITIONS ACTIVITY
For Makris, who officially took over as Simmons CEO in January after the long tenure of Tommy May, he’s quickly putting his stamp on the banking outfit. He said market share has been a major part of Simmons First’s acquisition strategy in state.

“In central Arkansas, our share was obviously not where we wanted it to be. So as we take a look at acquisitions, it is to build our franchise in those growth markets.”

That includes out-of-state markets, such as Missouri and Kansas where Simmons previously conducted FDIC-assisted transactions. Makris said the bank is now positioned for organic growth or acquisition growth in the future with a host of new products.

“We really would like to fill in our footprint in Missouri and Kansas. We have a strategy now for de novo growth. We’ve got some really good bankers in those markets,” he said. “We need a little more scale in those markets to be able to do some of the things that we really want to do.”

Makris said due to Simmons’ legacy in southeast Arkansas, there is appeal to look at smaller banks in agricultural communities, perhaps more on a one-on-one basis.

“There are a lot of private banks that are just tired of what’s going on in the industry today,” Makris said. “In many cases, we see private banks that have aging management and not a real good succession plan.”

Those banks typically have boards of directors who must contribute money into a local bank’s capital in order to help in maintain sufficient margins. Of course, they’d prefer to be receiving dividend checks, Makris said.

He also said recent regulatory burdens stemming from the Dodd-Frank reform bill is also impacting community banks and forcing many of them to reconsider their long-term futures.

“Management that may not have a great succession plan, boards who have changed their focus for their wealth, and regulatory fatigue are the three main drivers of a lot of the M&A activity we see today.”

There were hundreds of soundbites at Wal-Mart’s recent Year Beginning Meetings held in Orlando. But one that resonated with potential suppliers came from Michelle Gloeckler, senior vice president of the home category for Walmart U.S.

“We are now actively seeking suppliers like never before who can provide products made on U.S. soil,” Gloeckler said.

She issued a Request for Proposal (RFP) seeking suppliers who make or assemble patio furniture in the U.S. She said bulky items like furniture is costly to ship and adds to the retailer’s carbon footprint overtime. 

“Making things closer to the point of purchase and shortening the shipping distance will lead to cost savings and environmental benefits, and it will help us solve the business problem,” Gloeckler said. 

“So, we’re taking a new approach to patio,” Gloeckler wrote in her March 13 corporate blog during the retailer’s meetings with suppliers in Orlando. “We’re focusing on making patio furniture closer to your backyard, which will lead to valuable manufacturing jobs in your community.”

Gloeckler said obvious benefits to recruiting U.S. suppliers are the support for American jobs, but she also identified other benefits to Wal-Mart’s business, “like sales increases, product flexibility, improved in-stock and increased response time.”

Wal-Mart officials have said they remain committed to the onshore manufacturing initiative. Gloeckler said the retailer is already in talks with suppliers in 40 departments to find ways to manufacture on U.S. soil.

U.S. JOBS
It’s been one year since Wal-Mart announced its commitment to invest $50 billion into American products by 2023. She recently noted that the 10-year timeline was necessary as the retailer works with more suppliers trying to onshore their manufacturing operations — a time-intensive endeavor. Gloeckler said the retailer is looking for categories like patio furniture that present certain business challenges when manufactured abroad. The plan is to guide such products toward the retailer’s U.S. manufacturing initiative.

Daniel Levin, CEO of Cain Millwork, recently told CNBC that it may make more sense to create new manufacturing jobs than try to bring old manufacturing processes back.

“If you need something in six weeks, you need to have it done here, not overseas and that is not changing anytime soon,” Levin said.

Phillip Koosed, CEO of BAMKO recently told CNBC that manufacturing is still a segment very much in decline and while the anecdotal stories of small manufacturing shops opening in the U.S. are nice to hear, they aren’t moving the needle forward. He too, would like see more corporate efforts going into innovation hubs than courting back old manufacturing jobs.

There were an estimated 12.065 million manufacturing jobs in the U.S. during February, 2014, slightly above the post-war February 1946 level of 11.922 million, but well the peak of 19.553 million in June 1979.

OPEN CALL
In an unexpected and unusual move, Wal-Mart announced a July 8 open call for suppliers manufacturing in the U.S. and for suppliers ready to pitch new products and new categories.

“We’re open to great products that will delight our customers, especially if they’re made right here at home. At the same time, we want our suppliers to reevaluate their business models with the U.S. in mind and look more closely at what’s possible,” Gloeckler noted in her blog.

Wat-Mart also is willing to play matchmaker in order to get more innovative contributions from its supplier base. 

Walmart U.S. CEO Bill Simon said during the recent Year Beginning Meetings event that suppliers should bring their ideas forward as Wal-Mart may be able to match them with an innovator or entrepreneur.

Jason Long, CEO of Shift Marketing Group, said Wal-Mart is not just paying lip service with its commitment to source more U.S. made product as they are giving priority and preference to “Made-in-the-USA items.

The University of Arkansas alumnus Robert H. Biggadike has made an estate gift commitment of $7.8 million to benefit the UA College of Engineering. The future gift will be used to establish the Robert H. Biggadike Endowment for Teaching in the college.


“This is a fantastic gift for the College of Engineering and the University of Arkansas,” said Chancellor G. David Gearhart. “Robert’s generosity is inspiring, and we are deeply touched by his support of his alma mater. His gift will allow the College of Engineering to make impressive advances and contribute greatly to its future success.”

Biggadike, a native of Newport, Ark., who now lives in West Covina, Calif., received his bachelor’s degree in mechanical engineering from the university in 1958 and began a career in the aerospace industry. He later returned to Arkansas and earned a master’s degree in mechanical engineering. His aerospace career took him to California, where he worked for companies including Northrop Grumman, General Dynamics and Boeing. He was a control systems engineer, developing rigid and elastic body simulations of missiles and designing autopilot systems.

Biggadike attributes his ability to provide this gift to consistent investing throughout his career saying “engineers tend to be productive citizens who make a contribution to society.”

Engineering Dean John English said a gift of this magnitude “is an excellent investment in our future. We are deeply appreciative to Mr. Biggadike for his philanthropy.”

In 1983, Biggadike established a scholarship endowment in the College of Engineering in memory of his father. That gift is used to support juniors and seniors majoring in mechanical engineering. Because of his philanthropy, Biggadike is recognized in the Towers of Old Main, a society that honors the university’s most generous benefactors.

Most Walmart suppliers probably measure their bottom line in regards to profit margins and the number of SKUs (products) available in the stores. For Humankind Water, the measurement of success is in terms of “people years” of water. In other words, the number of people served fresh drinking water times the number of years the well or filter used to provide that water is conservatively estimated to last.

Since winning the first “Get on the Shelf” contest at Walmart.com in 2012, Humankind Water has been able to exponentially increase its ability to provide fresh, clean water for people in countries including Haiti, Malawi, Uganda and India. To date, they’ve developed more than 40 wells and filters in those countries, said TJ Foltz, president and CEO. 

Philadelphia-based Humankind Water, which has a for-profit arm that sells water and a nonprofit foundation that accepts donations, "exists (solely) to raise money and awareness to help wipe out the world's drinking water crisis," according to the company’s website.

At first glance this company looks more like a venture Walmart’s Foundation would support than a product supplier. But this business model leverages Wal-Mart’s scale with the consumer’s desire to help others and it works, according to company execs.

Foltz, a youth minister and public speaker, left his job at the American branch of the Bible-education organization Scripture Union to work full-time on his water project in the fall of 2012.

GETTING ON THE SHELF
“It's everything,” Foltz said of how winning the contest affected their overall sales and ability to serve others. “You have to understand we had only gotten the first bottles two months before the contest was announced. We basically tabled our entire 5-year marketing plan knowing that winning the contest would get us the notoriety that would put us on the map.”

The actual profit margin varies on the retailer where the products are sold and the total effect of those dollars on the ability to provide fresh water also varies on the country’s sustainability structures already in place. 

“There are big variables in how much it costs to dig a well, install a filter, put up a rain catchment system. Our whole point in putting the promise on the bottle that we do —1 bottle=clean H2O for 1 person for 1 year — is predicated on knowing how ridiculously cheap it is to provide clean drinking water,” Foltz said. “If we find the right large population in the right country with the right sustainability structures in place, we can get clean drinking water to people for less than 25 cents per year. It's mind boggling.”

Continuing, he noted” “When you compare the enormity of the problem and the relative ease and low expense of providing the solution...you'd have to say, as I often do: ‘Water is the lowest hanging fruit on philanthropy's tree.’”

Ravi Jariwala, Walmart.com spokesman, said the Get on the Shelf program promises the winner the ability to have their products on Walmart.com and the opportunity to meet with buyers with the hope they might also become in-store suppliers. For Humankind Water, it was not feasible to sell the product online so the decision was made to place them in about 200 stores in the northeast United States near where Humankind Water is located. The water is from a protected spring in Honesdale, Pa., and bottled in the Pocono Mountains.

Calling Get on the Shelf a very “customer-centered program,” Jariwala said Walmart.com buyers cull the entries then customers could vote to create the top 20 finalists which were then placed in categories. Those finalists were flown to Bentonville to create webisodes about their products. Customers then had the ability to vote for the top contender in each category.

HELPFUL SUPPORT
Foltz said he is grateful to the mentoring and support the company received throughout the process, including Scott Poole and Greg Pickens at Premier Concepts.

“They do merchandising for companies like ours. Their folks go into the stores, locate the bottles, and line them up like perfect little tin soldiers, as well as put up, or if need be, replace our in-store signage,” Foltz said of Premier Concepts.

Some of the help came from unexpected places.

“We heard during the Walmart.com contest — and to this day we have no idea how —that Bentonville High School was voting like crazy for Humankind Water,” he said. “I have absolutely no idea how that many students would have gotten the word about Humankind Water to vote for us, but many did. And I'd like to thank those folks.”

PLANS TO EXPAND
Selling more water means providing more water through philanthropic means.

“We would love to expand to nationwide and are striving every day to do so. But you have to understand, when we won the contest we were tiny,” Foltz said. “We started Humankind Water on a shoestring, and won the contest on a shoestring as well. We've expanded as far as we have without ever spending a penny (to date) on traditional advertising, which as you know, is unheard of in the industry. ... So while we're not as far-ranging as we'd like to be (nationwide) we do feel great about the fact that we've gotten as far as we have spending next to nothing,” Foltz said.

He said there are plans for “some more mainstream advertising. People respond when they hear our story.”

While the bottled water is not available in Arkansas (“yet,” Foltz said), Northwest Arkansas residents can still order it for their own use, or for events and fundraisers. The process is to contact Foltz and order by the pallet. The water is purchased from Humankind Water for $1 a bottle and can be resold for more to generate needed funds for churches or other organizations.

America's Car-Mart has opened dealership No. 132, according to a release provided by the Bentonville-based company late Monday evening (March 31).

This newest used-car dealership is located in Warrensburg, Mo., and is the company’s eighteenth store in the Show Me State and its eighth new opening this fiscal year. The Warrensburg dealership will be managed by John Hall.  

Car-Mart shares closed Monday at $36.66, up 3.44%. For the past 52 weeks the share price has ranged from a high $49.21 to a low $34.56, according to Yahoo ! Finance.