The Fort Smith Children’s Emergency Shelter is receiving a portion of all Smith Chevrolet‐Cadillac vehicle sales through July 31, 2014.

Smith Chevrolet‐Cadillac announced July 17 that through the month of July, $100 will be donated to the Children’s Emergency Shelter for every new and used vehicle sold.

“Smith is proud to partner with such a fine organization that is making a very strong impact in our local community,” said General Manager Bryan Penniman.

Advancement Coordinator for the Children’s Emergency Shelter, Ashley Ahlert said the promotion is an opportunity for citizens of Fort Smith and surrounding communities to shop local.

“With a goal of selling 225 cars, this has huge potential for impact on the Children’s Emergency Shelter and the children we serve. It’s a good feeling to know that we live in a place where we are all investing in our community,” Ahlert said in a statement.

Smith Auto Group was formed when John decided to purchase a Nissan franchise in 2007 and then expand once again in 2012 with the acquisition of three additional dealerships in Pineville, Missouri; a second Chevrolet dealership, a Ford franchise and a Chrysler Dodge Jeep Ram which all sit on the same property.

The Children’s Emergency Shelter of Fort Smith provides shelter and care to area children ages 6‐17 who have been removed from the custody of their guardian by child welfare authorities. CES provides a home‐like environment to these abused and neglected children until an alternate placement can be procured. The Shelter is licensed to house up to 24 children at a time, and as many as 300 children will walk through its doors each year.

Retail giant Wal-Mart might claim to be a constant low cost leader and match other retailers’ sale prices, but it does not match its online prices and makes no apologies for that policy.

The retailer outlines its policy on its website: “The merchandise and prices on our website do not reflect the merchandise and prices available in our stores. Our stores will not match prices with our online store (or other online prices) because we do not consider them to be in competition with our retail stores. Currently, we do not have access to store inventory lists or price lists at this website.”

Clark Howard, a nationally syndicated consumer advice writer, finds it hard to understand that a retailer claiming to “bridge the intersection of physical and digital” refused to give him the lower online price for a Lego set he recently tried to purchase for his son. The Atlanta Journal Constitution published his report about the experience.

Retail experts from across country have weighed in on this policy at RetailWire, most finding Wal-Mart ‘s actions toward Howard to be a step-back and a poor lesson in customer service.

“Retailers may have their reasons for not matching their own online prices, but to consumers those reasons don't make any sense. Whether it's Walmart, Gap, Target or other stores, all these policies serve to do is make consumers mad. Retailers should do a better job of explaining the practice or drop it,” according to Max Goldberg, president of Max Goldberg Associates.

Other experts like Frank Riso note that Wal-Mart will have to learn that it cannot manage its inventory with two different price models using their stores as pick-up and return centers.

“The consumer knows only Wal-Mart and not Wal-Mart Stores versus Walmart.com. It has taken at least 10 years for retailers to realize that the consumer only knows the brand and not the channel. Wal-Mart will learn, just give them time to reflect on it,” Riso added. He is the principal of Riso & Associates.

Jason Goldberg, vice president of at Razorfish, said the dual pricing policy is “horrible” because with a customer “it's all Wal-Mart.” The differences in overhead costs in the distinct channels are irrelevant to the consumer, Goldberg added. He said it’s out-of-character for the “Always Low Prices” retailer.

“In this world of perfect information and complete pricing transparency, consumers will know they aren't getting the best price from Wal-Mart and will always have to fear that they should be getting a better price — exactly what Walmart doesn't want,” Goldberg said.

Ironically, Wal-Mart has invested millions in advertising campaigns that promote its low in-store prices and recently vowed to roll out its “Savings Catcher” program and expand it to include general merchandise and produce. Wal-Mart has said its Savings Catcher program is about reassuring consumers that they are getting the lowest price when they shop at Wal-Mart’s physical stores. Goldberg notes that consumers may not buy the story given that store prices aren’t even Walmart’s best prices.

Other experts believe Wal-Mart has no choice but to try and match Amazon pricing online, which are apt to change throughout the day. The constant price changes in-store would be problematic. That said, when a consumer asks for the lower online price while in-store and that item will be filled from that supercenter, most believe the correct policy for Wal-Mart is to give that customer the lower price immediately.

“We're definitely seeing some growing pains as new models emerge for retailers to figure out how to do omnichannel. The problem here is that positioning the stores as being in competition with the website seems entirely bizarre, and that message will likely change,” said Matt Schmitt, president of Reflect.

Wal-Mart Stores is offering teachers across the country 10% savings on classroom supplies. The retail giant kicked off the campaign in its hometown of Bentonville on Monday (July 21) by presenting the local school district with a $1,000 gift card and surprised each Bentonville teacher with a $25 gift card and a basket of school supplies.

Wal-Mart’s research indicates that 53% of teachers received less in funding last year, which was the catalyst for this year’s event. The retail giant has donated more than $20 million to U.S. educators in the last five years.

Teachers who shop at Walmart stores during its Teacher Appreciation Week (July 25 to 31) are eligible to receive a Walmart eGift Card for 10% back on nearly 15,000 products.

“On average, teachers around the country spend about $1,000 readying their classrooms, and half of that comes from reaching into their own wallets to make sure students have what they need,” said Steve Bratspies, executive vice president, general merchandise for Walmart U.S. “We’ve had a commitment to supporting teachers in the communities we serve for many years. This program is one more way we’re helping lessen the cost, increase support and set teachers up for success.”

The program allows teachers who shop for supplies between July 25 and July 31 to register their receipts online by Aug. 15. By entering the teacher’s school information and receipt transaction code, the retailer can calculate the savings on eligible items and deliver an e-gift card within 14 days of submitting the receipt online.

BIG BUCKS
What’s in it for Walmart? A lot. The National Retail Federation reports that consumers will spend $26.5 billion on back-to-school items this summer. The average family with children in grades K-12 will spend $669.28 on apparel, shoes, supplies and electronics, up 5% from $634.78 last year, according to the NRF release.

“Slow improvements in the economy may have contributed to the growth in confidence among back-to-school shoppers, and while we are encouraged by the overall tone of the results and expect to see continued improvement in consumer spending through the year, we know Americans are still grappling with their purchase decisions every day,” NRF President and CEO Matthew Shay said in a statement.

He said spending has fluctuated based on family needs each year, and this summer, parents are expected to spend cautiously, as they make decisions for their family budget that is a balance between what their children want and what they need.  

Retailers look forward to this event as it’s one of the biggest spending occasions of the year. The survey found parents ready to spend more on what’s needed. Overall, every category will see an increase in spending. According to the survey, back-to-school shoppers will spend an average of $212.35 on electronic items, up 7% from $199.05 last year. 

SPENDING PATTERNS
High school students and their families specifically will spend an average of $229.88 on electronic items. As school districts’ requests for classroom supply contribution rise, spending on school supplies will increase 12% to an average of $101.18, compared to $90.49 last year. 

Households will also spend an average of $231.30 on clothes, up from $230.85, and $124.46 on shoes, up from $114.39 in 2013.

Department stores, discount stores, drug stores and electronics stores are all expecting more sales this year. According to the NRF survey, 64.4% of consumers will visit discount stores, 59.1% will shop at their favorite department store, 38.2% will shop online, 27.5% will shop at electronics stores, and 20.5% will shop at drug stores.

For the first time, NRF asked school shoppers about their plans to shop at local, small businesses for their needs, and 17.4% said they plan to support local, small retailer to buy school items.

Don Keesee has been named Western Arkansas Division President at Bank of the Ozarks. Keesee joined Bank of the Ozarks from Summit Bank in Fort Smith, as part of Bank of the Ozarks’ recent acquisition of Summit Bank.

He has more than 30 years of financial experience in Fort Smith, central Arkansas and Northwest Arkansas.
 
Keesee serves on the City of Fort Smith Planning Commission and is vice chairman and on the executive Committee of the Arkansas Community Foundation of Sebastian County. He also serves as a trustee of the Bost Foundation in Fort Smith. Formerly he was active in the Fort Smith Regional Chamber of Commerce, Fort Smith Symphony, Western Arkansas Counseling and Guidance Center, Girls Inc. of Fort Smith and Fort Smith Public Schools. He is an alumnus of the Leadership Fort Smith Program, Class of 1998.

In his new role, Keesee will be responsible for business operations in the Western Division, which includes three offices in Fort Smith, two offices in Van Buren and offices in Mulberry and Alma.

“I look forward to continuing to build on the Bank’s presence in Sebastian and Crawford counties as we continue to advance our position as the market’s leading financial services company,” Keesee said in a statement.

Some reports of the closely watched U.S. freight industry suggest the economy performed well in the first half of 2014, with the only hiccup being a 0.8% decline in the June truck tonnage index reported by the American Trucking Associations’.

The ATA Truck Tonnage Index was down in June after a revised 0.9% gain in May. For the first half of 2014, tonnage is up 2.8% compared to the same period in 2013, according to the ATA index.

The not-seasonally adjusted index, which represents the real change in tonnage hauled by the fleets, fell 0.5% below the previous month.

“June was one of those months where the data doesn’t quite match up with the anecdotal reports from fleets,” ATA Chief Economist Bob Costello said in the report. “We had heard the freight volumes were good.”

‘THINGS ARE NOT BAD’
Brad Delco, a transportation industry analyst with Little Rock-based Stephens Inc., agrees that the ATA report for June does not match what he sees and hears from the trucking companies he follows. Delco said April and May numbers were strong, with the strength partially a function of demand returning after weather delays earlier in the year.

“June was a very strong month in terms of the carriers I’m talking to. ... I’m not hearing of any material weakening in the freight market,” Delco told The City Wire, adding that “things are not bad in the trucking world right now.”

Delco did say the industry is seeing a “governor” on activity related to capacity issues and driver shortages. He also said the capacity shortage in the truckload industry is pushing some business to less-than-truckload (LTL) carriers like Fort Smith-based ABF Freight System. According to the Stephens LTL Yield Index for the first quarter of 2014, LTL tonnage was 12.692 million, ahead of the 11.831 million in the first quarter of 2013.

In his report, Costello said tonnage had increased for four consecutive months prior to June totaling 4.4%.

“Despite the small reprieve in June, the second quarter was much better than the first quarter. Tonnage increased 2.3% from the first quarter, which was the largest quarter to quarter gain since the first quarter in 2013. Compared with the second quarter in 2013, tonnage increased 3.2%, a percentage point better than the first quarter year-over-year increase,” Costello explained.

Trucking serves as a barometer of the U.S. economy, representing 68.5% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, according to the ATA. Trucks hauled 9.4 billion tons of freight in 2012. Motor carriers collected $642.1 billion, or 80.7% of total revenue earned by all transport modes.

The equity markets are betting on positive trends in the back half of 2014. For example, shares of Lowell-based J.B. Hunt Transport Services (NASDAQ: JBHT) were recently upgraded by Credit Suisse and Sanford Bernstein. The shares have traded recently at or near the 52-week high, with late Tuesday afternoon trades at $78.95 reflecting a more than 1.1% increase. During the past 52 weeks, the share price has ranged from a $79.89 high to a $69.33 low.

Also on Tuesday, the company announced a quarterly dividend of 20 cents per share payable Aug. 15 to shareholders of record as of Aug. 1.

The Dow Jones Transportation Index was up more than 1% in Tuesday afternoon trading, and at 8,445.10, was trading near the 52-week high of 8,468.89. The 52 week low is 6,212.54.

THE CASS REPORT
The Cass Freight Index for June showed shipments up 2.4% and freight spending up 4.2% – a difference that shows the rise in prices related to the combination of increased demand and tightening capacity.

“June shipment volumes increased 2.4 percent to the highest level since November 2007, just before the recession. Volumes were 6.0 percent higher than a year ago and are up 15.8 percent since the beginning of 2014. Construction and manufacturing activities – both drivers of demand for transportation services – have been rising for several months,” Rosalyn Wilson, a supply chain expert and senior business analyst with Vienna, Va.-based Delcan Corp., noted in the Cass report.

Cass uses data from $22 billion in annual freight transactions processed by its information processing division to create the index. The data comes from a Cass client base of 350 large shippers.

Wilson, who authors the Cass report, said the outlook is good for the trucking and shipping sectors because “current growth sectors in the economy depend on transportation services.”

Wilson also said recent GDP reports do not necessarily bode ill for the transportation sector. The federal Bureau of Economic analysis reported June 25 that the first quarter GDP fell at an annual rate of 2.9%, following a GDP rise of 2.6% in the fourth quarter of 2013. The contraction was the most severe in five years.

“Despite some talk that the slowing and then contracting economy could signal another recession, the foundation and building blocks for a growing economy are stabilizing and growing,” Wilson noted. “Sales of both new and existing homes are increasing, industrial and government construction have been up for the last several months, and manufacturing has been largely growing for close to a year. Retail sales have yet to show signs of significant growth, but they are not shrinking either, and consumer confidence levels have surpassed pre‐recession levels.”

Travel, office moves and adding product lines have kept the days busy for the management at Picasolar, DataRank and Ecovet – three of the five startups followed by The City Wire in 2014.

Travel has been the name of the game for Picasolar executive Douglas Hutchings since The City Wire’s last update on the Fayetteville-based solar startup. Picasolar’s focus is on technology for N-type solar cells.

“We visited our equipment partners (Roth & Rau which is part of the Meyer Burger group), presented our work at the SunShot Grand Challenge (as a SunShot awardee), and attended Intersolar (a major industry event). We are participating in the state-wide Energy, Jobs and the Economy workshop for candidates and elected officials of the Arkansas legislature which is taking place in Bentonville, Arkadelphia, West Memphis and Little Rock in the coming weeks. To top it off we will be making a road trip to visit our partners at Georgia Tech at the end of the month with a stop in Tennessee to meet with a potential investor,” Hutchings said as he caught his breath.

He sees the company’s participation in the workshops as a way to engage decision makers at the state and local level to raise awareness of the jobs in the advanced energy sector.

Hutchings shared that the technical part of the business has also been fast and frantic but has resulted in some new opportunities and a few challenges. He said the National Renewable Energy Laboratory and a third party have validated the company’s ability to use less silver with its N-type solar cells.

“Will get final reliability testing in the coming days and have developed a full cost model for equipment that we would like manufacture locally,” Hutchings said.

He said closing the funding round is taking longer than he had hoped.

“We are working through the details with top-notch folks inside and outside Arkansas and anticipate it being finalized before the next update,” Hutchings said.

Picasolar recently recruited Rick Schwerdtfeger as its new chief operating officer “who has successfully executed our business model in an adjacent industry,” according to Hutchings. He said the startup continues to look for talent to add to its small team.

“We are starting to run into resource restraints to take advantage of all the opportunities that have arisen due to the progress above. We have had to focus on the highest priority partnerships and avoid spreading ourselves too thin,” Hutchings said. 

DATARANK
The past two months have been busy for DataRank CEO Ryan Frazier and team who recently moved their big data firm to uptown Fayetteville, from a smaller location on the downtown square.

Frazier said the company continues to add new supplier customers to its growing client base each month.

“We are finishing up a new dashboard application and plan to launch that product subscription in August,” Frazier said

The dashboard feature will integrate online consumer data from social media feeds, to chat and blog forums that helps suppliers and retailers hone in consumer attitudes and sentiment about certain products, stores and shopping experiences.

ECOVET
Ecovet management said the company continues to add new sustainable furniture products which are handcrafted by veterans while they continue working toward college degrees.

“Our sales are increasing since getting our furniture on SamsClub.com and we continue to add a few new products to the mix. We are working to get the product in other retailers, but it’s too early to report on that at this time,” said Andrew Bogner, manager of the Springdale manufacturing center for EcoVet.

He said the company continues to do road shows with Sam’s Clubs and is looking at growth potential outside of Northwest Arkansas.

Because the business model uses reclaimed wood from discarded semi-trailers, finding enough trailers locally has been challenging, Bogner said.

“We are looking other facilities expanding to Las Vegas and along the Mid-Atlantic region from the Carolinas into the Northeast, where there is an abundance of veterans and discarded trailers,” Bogner said.

He said the company is looking for a second location in Northwest Arkansas. Ecovet has custom furniture pieces on display at Mixed Manner in Springdale, located at 103 West Emma Ave., and several products are also sold online at Sam’s Club.

Link here for the recent update on Fayetteville-based Oh Baby Foods and Overwatch, a company managed by a recent high school graduate.

Tyson Foods has agreed to pay workers in its Goodletteville, Tenn., beef and pork processing plant a $7.75 million settlement. A federal judge has given preliminary approval of the donning-and-doffing settlement reached this week.


As part of the settlement, the meat giant will pay $7.75 million into a fund to cover awards to employees “under the Fair Labor Standards Act and state law breach of contract claims,” as well as attorneys’ fees and costs and the settlement administrator fees. Tyson also will cover the employer’s portion of payroll taxes for the payout, according to documents filed in federal court.

This deal ends seven months of negotiations, and avoids a trial that was slated to begin in August.

Northwest Breast Imaging Center is now offering the 3D mammography for breast cancer screening. The 3D mammography produces a three-dimensional view of the breast tissue that helps radiologists identify and characterize individual breast structures without the confusion of overlapping tissue.

Research has shown the Hologic 3D mammography screening has increased cancer detection and reduced the numbers of false positives.
 
Researchers found that 3D mammography finds significantly more invasive or lethal cancers than a traditional mammogram.

Mercy is rolling out a new way for patients of all ages to access convenient, local health care. Mercy Mobile Health, a $650,000 motor coach, is part of a $1 million investment to reach underserved and rural communities and provide easy access for diagnostics testing.

The 40-foot long, eight-foot wide unit will offer services including mammography, cardiovascular screenings and point-of-care testing that will provide patients with immediate results.

Mercy Mobile Health will also offer convenient access for corporate wellness with screenings and education, as well as charity care services. The unit will be set up at General Mills offices at 3605 Southern Hills Blvd,, Suite 300, in Rogers on Tuesday, July 29.
 

Regional business and civic leaders who responded to an informal survey by The City Wire do not share the pessimism exhibited in a recent Rasmussen Poll in which only 29% said America’s best days like ahead.

A closely watched Rasmussen poll recently reported that just 29% of likely voters surveyed believe the country’s best days lie ahead, down four percentage points from April and the lowest point during the eight-year history of the survey.

The question asked in the poll was: “When you think about our nation in the context of history, are America’s Best Days in the future or in the past?” The national telephone survey of 1,000 Likely Voters was conducted by Rasmussen Reports on July 7-8, 2014. The margin of sampling error for the survey is +/- 3 percentage points with a 95% level of confidence.

Results showed that 52% said the country’s best days are behind us, up from 48% in April. This ties October’s recent high and is one of the few times this figure has passed the 50% mark. Also, 18% said they are not sure.

Ed Clifford, president and CEO of the Jones Trust and the head of the Bentonville/Bella Vista Chamber of Commerce for more than 11 years, said it’s not about better days being ahead, but that simpler days are in the past.

“I think that much simpler days are behind us, and that our national leaders haven’t figured out how to operate effectively in this new, very complex environment, either nationally or internationally. Until they do, we’re at the very least going to tread water, and this leads to trouble as time goes on,” Clifford said.

“Fundamentally optimistic” is Kathy Deck, director of the Center for Business & Economic Research at the Walton College of Business at the University of Arkansas. She added a caveat that her optimism is continually evaluated by keeping an eye on “day-to-day realities.”
 
“My optimism is based on a long view. While it is clear that over the short term, we face what seem like intractable political problems, what is true is that we have the fundamental capability to make good decisions,” Deck explained in an e-mail note. “I think that the proliferation of information is both the reason behind our pessimism (negative messaging hits us at every turn) and the key to our future success (good information is the key to making the best of what we’ve got.)”

Rod Coleman, chairman and CEO of Fort Smith-based Benefit Bank, which also is active in Northwest Arkansas, is “very optimistic.”

“We are seeing great growth already in our business and see potential that we have not seen in the past 6 years. Particularly in NWA,” Coleman wrote, adding that Federal Reserve actions to increase interest rates would hurt the economy.

Also in the optimistic camp is Kelly Johnson, director of the Northwest Arkansas Regional Airport Authority,

“I am a bit optimistic. I believe we are going to continue for a while to see a downturn but I think our nation will rally; so no, I don’t believe our best has come and gone,” Johnson said.

Her optimism is in part based on the brains of the next generation.

“There is a lot of innovation that has yet to occur and there are a bunch of really smart young people out there who are committed to innovate or die!” Johnson noted.

On that theme, Greg Kaza, director of the Little Rock-based Arkansas Policy Foundation, had a simple response when asked if he was optimistic: “America will always be a beacon for entrepreneurs.”

The poll also found that 58% of the likely voters polled believe American society is “fair and decent,” and that those who immigrate to the country should adopt U.S. language, culture and heritage.

Tonnage shipped along the Arkansas River is down for the first half of 2014, but it is not necessarily bad news according to a Fort Smith-area river operator.

According to the U.S. Army Corps of Engineers, January through June tonnage on the McClellan-Kerr Arkansas River Navigation System totaled 5.782 million tons, down 3% from the same period in 2013.

Tonnage shipped into the Arkansas River system totaled 2.449 million tons and tonnage shipped out totaled 2.152 million tons during the first six months of 2014. The inbound figure represents a 6% increase in traffic while outbound saw a decline of 14%. Internal shipping stood out, with a 12% increase representing 1.181 million tons over the same six-month period in 2013.

Marty Shell, president of Van Buren-based Five Rivers Distribution, said the overall 3% decline (which includes inbound, outbound and internal combined) did not necessarily mean the economy was slipping. In fact, he said just the opposite.

He said some food-based items are being held longer by farmers before selling and shipping, which is keeping figures for that shipping sector either flat or slightly down.

"The outbound is probably going to be comparable for grain movements," he said. "All the corn that's grown in this region all goes to the chicken farmers. The only stuff that really moves out is wheat and soybeans. What's happening is these farmers are holding onto it. You'll see the increase in a couple of months when the soybeans are ready to cut. They'll dump the wheat (at that time)."

Overall, wheat tonnage along the river is down 9% at 602,100 tons while food/farm products are unchanged at 334,150 for the first six months of the year. Soybeans are up 69% to 415,100 and could increase further as more is harvested, Shell said. He added that it would take a few months for the wheat tonnage to rebound, depending on how much longer farmers hold their wheat for sell and shipment.

"The farmers are holding onto it to get the very best price on it. You'll see the outbound number increase."

Bryan Day, executive director of the Little Rock Port Authority, said while the grains and other food-based tonnage may be flat or down, one bright spot is building materials. The minerals and building materials category increased its tonnage by 23% to 254,980 tons while increasing its sand, gravel and rock tonnage by 18%, to 1.461 million tons. Iron and steel also increased by 5% to 832,325 tons.

"I think what you could say is the manufacturing sector is on the increase," Day said of the totals.

Shell said the increases, especially in sand and gravel, show construction could be on the increase, as well. But he said the one area dragging down the tonnage reports is coal, which is down 51% over the same six-month period last year, only totaling 221,400 tons shipped along the river.

"It costs more to get it out of the ground than what you can sell it for," Shell said. "The export market for it is weak and until it corrects itself, it will drag everything down."

And even though a big drop like what coal experienced is driving down the overall numbers, Shell said being down only 3% is not a bad place to be. He said a move up or down 3% from last year's total is fairly normal and to be expected.

As for what the rest of the year holds, he said it looks to be steady but still a long way off from the boom years before the Great Recession of 2008.

"I would say the economy is better off than where we were a year ago right now. I still just don't have that warm fuzzy feeling just yet. But we are in a better position than a year ago. Now, we're not making leaps and bounds like we were back in 2006, '07 and '08. We're just inching forward. But we're better off than we were."

As long as the weather holds and the Corps is able to handle potential weather hazards that could impact river flow downstream, Shell expects the final tonnage report for the year to turn out solid numbers.

"We're not knocking home runs, but getting singles and doubles," he said.

Electronic games of skill (EGS) wagers at the state’s two racinos continued to climb with Oaklawn topping more than $100 million in wagers monthly every month during the first half of 2014.

EGS wagers include gambling spent on video blackjack, poker, slot machines and other casino-style games.

The latest statistics released by the Arkansas Racing Commission showed gamblers at Hot Springs-based Oaklawn wagered $690,820,196 on electronic games of skill from January through June 2014 — a 21.4% increase versus the previous year.

Oaklawn has undergone a large expansion of its casino-style gaming area and is in the process of further expansion.

At West Memphis-based Southland, EGS wagers cooled off compared to the previous year. From January through June 2014, Southland EGS wagers totaled $1,111,086,390 — a 3.3% increase over the previous year.

Southland is also in the process of a major expansion.

In 2013, combined EGS wagers between the two racetracks was $3.228 billion for the full year.

In the current year, the two tracks have seen $1.802 billion spent on EGS wagers.

Southland posted $2.074 billion in EGS wagers in 2013, a 16% uptick from the previous year. The figure is the highest EGS total since casino-style gambling was introduced at Southland in 2006.

Oaklawn posted 2013 EGS wagers of $1.154 billion, a 10% increase from 2012. That figure was also the highest EGS revenue total since Oaklawn opened its casino in 2006.

A recent study by the website Wallet Hub lists Arkansas as among the nation's most inexpensive states when it comes to energy consumption, but an official with a local electric cooperative said that could change if proposed federal environmental policies are fully enacted.

The study ranked Arkansas as the eighth-least expensive state when it comes to energy costs, being beat by only Colorado, Washington State, Montana, Rhode Island, Nebraska, the District of Columbia and Pennsylvania.

The study said a typical Arkansan spends on average $319 per month on energy, with breaks down to $101 for home electricity, $36 for natural gas and $182 for automobile fuel. While the rating might appear good for Arkansas, the different components that made up the rating have both extreme highs and lows when ranked against other states.

One example is in the electricity consumption per consumer, where Arkansas ranks 44 out of 51, while the state's rank on price of electricity ranks 3rd least expensive in the nation and on price of fuel, the state ranks 5th least expensive in the nation.

THE WALLET HUB METRICS
Wallet Hub's John Kiernan explained in more detail how the rankings were compiled.

"We used six key metrics to examine the various factors — from the price and consumption of residential electricity to the price of fuel at the pump and number of miles driven — that affect energy costs in the 50 U.S. states and the District of Columbia," he wrote on the site.

He added that the following equation used to calculate the average monthly energy bill in each state using data from the U.S. Energy Information Administration, the Federal Highway Administration, the U.S. Environmental Protection Agency (EPA) and the AAA’s Daily Fuel Gauge Report.

"(Average Monthly Consumption of Electricity x Average Retail Price of Electricity) + (Average Monthly Consumption of Natural Gas x Average Natural Gas Residential Prices) + [Average Fuel Price * (Average Monthly Vehicle Miles Traveled / Average Car Consumption / Number of Drivers)] = Average Monthly Energy Bill Consumers Pay in Each State"

COAL SUPPORT
Greg Davis of Arkansas Valley Electric Cooperative said there is a simple reason why Arkansas' energy costs are low.

"There's a one word answer for that — coal," he said.

According to Davis, about half of the state's energy consumed during non-peak hours is generated by coal power plants.

"Coal is cheap because one, it's a domestic fuel source. We have (about a 250-year supply) of coal. We could be generating at current levels with coal and we have enough for another 250 years to do that,” he explained.

Part of the cost savings seen with coal deal with transportation, he said.

"It's domestic. Our coal (Arkansas Valley Electric Cooperatives) comes from Wyoming. The only transport costs are the rail charge to get it to the facility," he said.

A recent report by the U.S. Army Corps of Engineers could back up Davis' assertion about coal's inexpensiveness, as it showed coal shipments down along the Arkansas River, with one local port operator noting that it costs more to get coal out of the ground than it would sell for on the open market.


NUCLEAR POWER
Davis said another 25% of the state's energy is provided by Arkansas Nuclear One near Russellville, which he said also contributes to the low costs for energy in the state.

"It is safe to assume the facility construction was paid for a long time ago and provides very low cost electricity. It certainly plays a role in the states’ lower than average electric rates," he said of nuclear power delivered by the Pope County facility.

Even though Arkansas Nuclear One has been a big driver in Arkansas' energy needs for decades (construction began in 1969 and the plant went online in 1974) and is likely to for decades to come, Davis said the same cannot be said of coal because of proposed new regulations by the Environmental Protection Agency. He said new EPA regulations aimed at reducing CO2 levels nationwide are going to have an adverse affect on Arkansas, increasing energy costs as coal is eventually phased out. The move, he said, is likely to impact everything from home energy prices to jobs.

"With the new EPA regulations, Arkansas will be tasked with a 44% reduction in CO2 emissions. So Arkansas won't have coal plants by 2030. We'll probably have some of the highest energy rates and that's an absolute fact," he said. "Manufacturing is attracted to where you have low energy rates. … So our rates will go up and it will certainly have a serious adverse affect on all economic activity."

He pointed to steel production as being a manufacturing sector that specifically came to Arkansas for its low energy costs, saying that could impact future manufacturer's decisions to relocate to the Natural State.

"Businesses look at a lot when look to build or relocate and energy costs are huge. The two biggest (energy) loads in Arkansas are steel mills. They use a ton of energy. Their decision to locate in Arkansas was based in large part on our overall energy costs."

MORE EFFICIENCY NEEDED
But Michele Halsell, director of the Applied Sustainability Center at the Walton College of Business at the University of Arkansas in Fayetteville, said costs do not necessarily have to go up for consumers just because the price of electricity is likely to increase. She pointed to an American Council for an Energy Efficient Economy study that showed Arkansas at 37th in the nation for energy efficiency.

"They say the typical Arkansas household could save 37% on average on residential energy bills. We're using way more energy than we should be. We use 25% more than the national average in terms of kilowatt hours," she said.

Halsell said by taking measures now to make your home more energy efficient through their energy providers, as well as state and local governments, Arkansans can prepare for the inevitable rise in energy costs.

"People who have been participating in those programs have seen their energy bills cut dramatically," she said. "The price of electricity, the price of a kilowatt hour is important, especially when you live in a leaky house. But when you live in an energy efficient home, that doesn't matter as much. So we need to get our homes, our multi-family apartment buildings, everyplace as energy efficient as we can because there's a difference in the price of a kilowatt and the bill."

MOVE TO NATURAL GAS
As for how energy companies like Arkansas Valley are preparing for the eventual switch in just more than 15 years to no coal, Davis said his company was making use of all sorts of different energy generation methods. Of hydro-electric, he said it helps but there are downsides.

"The hydro-electric power helps a little bit, but that's not base load. If we don't have enough rain fall, then hydro is not helping us whatsoever. But when we have a lot of rain, it helps out."

He said the Electric Cooperative of Arkansas has also invested in a gas facility in anticipation of the switch from coal power to other alternatives, but he said the switch over is going to impact just about every sector of the economy, again possibly bringing Arkansas off the top of the least expensive list.

"Of course, we're buying more wind and we've made some other preparations. But gas is more expensive and when everyone's generating with gas, supply and demand says that gas will get even more expensive."

Walmart U.S. CEO Bill Simon is stepping down after more than four years in the job and eight years with Wal-Mart. Greg Foran, 53, was named the new Walmart U.S. CEO and the transition is effective Aug. 9.

A company statement issued early Thursday (July 24) credited Simon with leading a turnaround that “reinvigorated the company’s focus on everyday low costs, everyday low prices and an increased product assortment.” Simon was also a leader in the effort by Wal-Mart to hire more veterans and to buy more goods made in America.

“During Bill’s eight years of service to Walmart, his passion for our mission, dedication to our associates and our customers, and innovative thinking pushed us forward,” Wal-Mart Stores CEO Doug McMillon said in the statement. “From the very beginning, his vision led us to lower the cost of health care through our $4 prescription offering. And, most recently, he put us on a path to future growth with small formats and efforts that integrate digital and physical retail.”

Simon and McMillon, 47, were the top choices for succession prior to Mike Duke stepping down as Wal-Mart CEO on Feb. 1. McMillon was eventually selected to lead the global retail operation based in Bentonville. Simon will remain as a consultant for six months to "ensure a seamless transition," according to Wal-Mart.

Wal-Mart spokesman David Tovar told the media on Thursday (July 24) that it was a mutual decision, and said Simon "is leaving on good terms."

“When someone else gets (the job) out of two candidates, it's not unexpected when the other person leaves to go do something else," said Tovar.

He said McMillon had "a number of conversations" with Simon about “the right time to leave," as he wanted to stay on through a transition period, which will give him time to "figure out his next challenge.”

“It’s been an honor to work for Walmart over the past eight years, and this felt like the right time to move on and focus on my next opportunity,” Simon said in the statement. “I look forward to helping the company as much as I can over the next six months.”

Simon leaves with a retirement package worth roughly $9 million in compensation and stock awards, including a $4.5 million payment to be paid in installments through July 2016. He will earn about $300,000 as a consultant through the holiday season. Wal-Mart has a strict noncompete agreement that should keep Simon from seeking work with a competitor for two years.

NOTES ON FORAN
Foran joined the company in October 2011 and became President and CEO of Walmart China in March 2012. Prior to Walmart, Foran held a number of roles with Woolworths, the leading retailer in Australia and New Zealand. He served as the managing director of supermarkets, liquor and petrol with responsibility for more than $40 billion in sales at that time. Foran also served as general manager of Big W, Woolworth’s industry leading discount store business and as general manager of Dick Smith Electronics. He has 35 years of retail experience.

“I’ve worked closely with Greg for the past few years and I’ve seen firsthand his passion for retail. I’m confident that Greg’s strong leadership skills and alignment with our culture will serve our customers and associates well,” McMillon said.

Foran said he is eager to address the changing nature of the retail business.

“Being asked to lead the Walmart U.S. business is a privilege that I don’t take lightly,” said Foran. “I am excited to get started. The needs of our customers are changing dramatically and we have an enormous opportunity to serve them in new and different ways. We must be fierce advocates for our customers, work meticulously to exceed their expectations and earn their trust every day.”

Foran will receive a salary of $950,000, along with a bonus incentive plan earning him as much as 300% of that pay, or about $2.9 million. He also is eligible for an annual equity award with a target value of about $4.9 million, plus $1.63 million in restricted shares, and a $500,000 one-time cash payment, according a contract filed with the Securities and Exchange Commission.

MARKET REACTION
While it may not be a surprise Simon is leaving, the timing and the naming of Greg Foran as his replacement have some analysts scratching their heads. Belus Capital Advisors’ Brian Sozzi calls the timing of Wal-Mart’s move “odd.” 

“The move to replace Bill Simon as Walmart U.S. President and CEO comes at a very, very odd time. However, if one is good at putting puzzles together, then the reasons why the change is happening two weeks before earnings are obvious,” Sozzi noted.

Sozzi said the recent earnings warning that Simon disclosed on July 9 in a Reuters interview may not have been a popular action within the company and with institutional investors.

“That is a no-no, perhaps a final straw in light of poor management of the business during his tenure,” he noted, adding that same-store sales have fallen for five consecutive quarters and inventories are building.

He said the decision to replace a high-ranking leader of a major retailer before back-to-school and ahead of the holidays is no laughing matter. Sozzi also said the timing “speaks volumes as to the current trends in the U.S. business.”

Simon is credited with the company’s small-store expansion which began late last year in an attempt to grow U.S. sales that had been lost Dollar General and other convenience formats. Analysts applauded the retailer’s focus on small formats but often questioned Wal-Mart about over-saturation possibilities, to which Wal-Mart said it is not concerned.

Gene Hoffman, president of of Corporate Strategies International, said Foran must now transform a stale operation.

“Walmart's U.S. operation's appeal has aged. Its pricing is no longer overwhelming. New ideas and breakthrough concepts are needed,” Hoffman wrote. “Greg Foran has been handed staleness, which I believe is the greatest challenge facing him as the new leader. And his greatest opportunities lie creating new beginnings just as Sam Walton did in 1962.”

Jason Long, CEO of Shift Marketing Group, said his initial thought on the transition was that Simon’s recent signal regarding next quarter’s earnings being soft may have sealed his fate. 

“Doug McMillon’s on the clock to turn comp sales around and he can’t do it without a growing U.S. market. He needs to act with a sense of urgency and this could have been a step in that direction,” Long said.

David Stasser, a retail analyst with Janney Capital Markets, said Foran is “a strong leader with retail expertise to take control of this U.S. business,” but expressed concern about his lack of U.S. experience while at Walmart.

POSITIVE MOVE
Other experts see no problem with the timing or change in leadership at Walmart U.S.

“It’s no shock Bill Simon is leaving after not getting the lead role when Mike Duke stepped down as Walmart CEO last year,” noted Sandy Skrovan, U.S. research director at Planet Retail. “This move demonstrates that Walmart will not rest on its laurels and is definitely open to bringing in fresh blood and new thinking.”

Carol Spieckerman, CEO of NewMarketBuilders, said the timing of the transition makes sense on a number of levels.

“Walmart’s lagging U.S. sales would seem to present an obvious justification for a changing of the guard, but I see it more as a positive, future-seeking move. Walmart is aggressively rolling out small formats and fine-tuning its next-stage, digitally-integrated supply chain efficiencies. Thanks to its aggressive approach to acquisitions, it is also in an exciting and continuous test-and-learn cycle on the digital side of the business,” Spieckerman told The City Wire.

She said the move also combines the global retail experiences of Foran and McMillon. McMillon was head of international operations at Wal-Mart prior to being named corporate CEO.

“Mr. Foran is a terrific choice at this point since so many of these new initiatives either borrow from international markets or are critical to the success of Walmart’s global omnichannel ecosystem. His understanding of global retail dynamics is right for the times and his ascension, along with Doug McMillon’s, speaks to the importance of having a global perspective in today’s retail world,” Spieckerman added.
 
Spieckerman also said Simon’s six-month consulting role at Walmart, paired with the non-compete agreement, ensures he won’t land at a competing retailer in the near future – an important factor consider the number of executive level openings in retail.
 
Spieckerman said given the pace of retail change, it will be fascinating to see where and if Simon resurfaces, or if he will parlay his experience into a non-retail opportunity in the meantime. 

Long, with Shift Marketing, also said Walmart may not be the end of Simon’s retail career.

“He’s only 54 years old and leaves with his reputation largely intact. He’ll get a nice severance package, and after his reported two-year non-compete is up, can resurface for the next chapter in his retail career,” Long said.

Alma-based InvoTek recently received a $175,000 Phase 1 Small Business Innovation Research grant from the National Institutes of Health. The grant will fund the development of technology to enable people with high-level spinal cord injury the opportunity to enjoy the health benefits of handcycling.

The Lakeshore Foundation and University of Alabama at Birmingham are collaborating with InvoTek on this project.

“Lack of access to fitness and recreation equipment is one of the primary barriers to participating in health-enhancing fitness activities for people with spinal cord injuries," James Rimmer, Lakeshore Foundation director of research, said in a statement. "The Quad Rider can open up the possibility of promoting a wonderfully engaging form of physical activity for people with high level tetraplegia and help lower their risk of heart disease and diabetes and improve their mental health status."

The Quad Rider makes it easy to shift gears and brake, enabling people with poor grip-control to safely cycle. According to InvoTek President Tom Jakobs, the mechanism does not require strength to brake quickly, which is important for someone with limited hand control.

“Plus, the rider can change gears by puffing air into a device (through a straw) attached to their helmet, allowing them to keep their hands in position to steer and brake,” Jakobs added.

The Quad Rider will attach onto a standard handcycle. Phase II will focus on enhanced automation for people with even more severe injuries so that they too can exercise.

Founded in 1988, InvoTek specializes in creating and applying technology to the needs of people with severe disabilities. InvoTek is a founding sponsor of Be Extraordinary, a non-profit organization that helps people with severe disabilities who want to accomplish a life goal.

Kelly Hughes has been promoted to vice president, mortgage operations manager at Signature Bank.

Hughes, a 20-year veteran banker, is responsible for the daily management of work flow in Signature’s mortgage operations, in addition to managing the bankers in that department.

“Kelly has been vital in the building of our mortgage department,” Chris Morrison, president of Signature Mortgage Lending, said in a statement.

Previous to joining Signature Bank in 2007, she was a loan coordinator, mortgage loan closer and mortgage originator for another local bank.

Kelly, her husband Mike and son Dylan live in Springdale.
 
Signature Bank operates several banking offices in the area: Signature Plaza in Fayetteville, Har-Ber Meadows in Springdale, Fountain Plaza in Bentonville as well as two locations in Brinkley.  The bank has more than $500 million in assets and has more than 100 employees.

Downtown Bentonville retailer Klōthe Boutique and local clothing designer Nancy Martin are coming together to raise funds and provide in-kind donations to benefit Dress for Success® Northwest Arkansas. Klōthe will give 10% of proceeds raised from the sale while NA MARTIN will donate one signature pencil skirt for every four (4) skirts sold during the sale.

"We think it's important for women to give other women a hand-up," said Martin, local attorney and NA MARTIN designer. "We think our customers feel the same way and will come out to support this wonderful organization."


Dress for Success supports women internationally, helping them enter the workforce with professional attire, a network of support and career development tools. The local affiliate impacts the women of NWA directly having served 94 women and suited 126 women year to date. The work of local volunteers makes a direct impact for the women of NWA’s chances of improving their economic independence which ultimately impacts their families and the Northwest Arkansas community.

"This is an opportunity for customers to get a great deal on the latest trends while giving back to the community,” said Mallory Hauskey owner of Klōthe Boutique.

The sale will be held Saturday, July 26, at Klōthe Boutique, 203 NE A. in Bentonville (across from the 21C Museum Hotel. Boutique hours are from 9 a.m. to 5 p.m.

The Board of Directors of Fort Smith-based ArcBest Corp. (formerly Arkansas Best) announced Thursday (July 24) of 3 cents per share payable Aug. 21 to shareholders of record Aug. 7.

ArcBest shares (Nasdaq: ARCB) closed Thursday (July 24) at $43.21, up 47 cents. During the past 52 weeks the share price has ranged from a $45.68 high to a $19.40 low.

ArcBest Corp., the parent company of less-than-truckload carrier ABF Freight System, closed the second quarter at $43.51, up 28.65% compared to the Jan. 2 closing price of $33.82.

The company is set to issue second quarter earnings on July 31. The consensus estimate among the 14 analysts who follow ArcBest estimate $642.6 million in revenue for the quarter, more than 11% above the $576.9 million in the second quarter of 2013.

ArcBest officials have said growth in the non-asset businesses are necessary to diversify the company’s revenue stream and to help reach a goal of $3 billion in revenue in 2014.

This year the four major cities in Northwest Arkansas have reported yo-yo tax revenue month-to-month, but in July revenue bounced higher topping $4.936 million reported by Bentonville, Rogers, Springdale and Fayetteville. The cumulative gain is up over the $4.406 million in July 2013.

City leaders have said they are not sure where the particularly strong July numbers came from but it’s been that kind of year — unpredictable. The July reports for the four cities were:
• Bentonville, $1.010 million, up 23.9%;
• Fayetteville, $1.572 million, up 4.45%;
• Rogers, $1.328 million, up 12.82%; and
• Springdale, $1.024 million, up 12.94%.

All of the cities collect a 2% tax on sales and services. Those collections are split evenly with 1% going toward debt repayment and 1% going into the cities’ general budget fund. This report reflects the latter. The July tax revenue reflects sales and services rendered in May creating a two-month lag in the reporting.

Bentonville officials report that through July the city has collected about 60% of the budget for this year. Finance Director Denise Land said the financial budget is in great shape even though collections are trailing revenue in 2013. In June, Bentonville’s revenue dipped 26%, only to rebound 23% in July. Land said the roller coaster ride is nothing new, and as long as collections top budget estimates she is content with the rocky ride.

Springdale posted its best month since 2006, bursting through the $1 million monthly threshold on the heels of a strong revenue gain of 12% in June. Mayor Doug Sprouse expects the tax revenue to continue growing though the balance of this year as the new Walmart Supercenter is slated to open this summer. He said the convenient location on the west side of town and I-49 should keep some Springdale shoppers in town that had driven the store in southwest Rogers at Pleasant Grove Road.

Fayetteville city leaders are happy about the 4.5% gain in their July revenue in a year where collections have been flat. Through July Fayetteville reports county and city collections are down more than $90,000 below last year.

Rogers reported a strong month of collections, up 12.8% from a year ago, and considerably better than the flat collections tallied in June. City leaders recently told The City Wire collections are well within the $14 million budget for 2014. Finance Director Casey Wilhelm said the city expects collections to remain strong the balance of this year, on the strength of activity surrounding the Walmart AMP, now in full swing. 

Sales tax revenue collections are directly linked to consumer confidence readings and when looking back at the May reading, consumers took a gloomy view on income growth with a conservative and tepid outlook.

The University of Michigan's final May reading on the overall index on consumer sentiment came in at 81.9, down from 84.1 the month before. Survey director Richard Curtin said the main concern expressed by consumers involved dismal prospects for wage growth, which for nearly half of all households meant anticipated declines in inflation-adjusted incomes and living standards during the year ahead. Some 56% of consumers reported that the economy had improved somewhat, though wages lagged behind.

Arvest Bank recently released its first regional consumer sentiment report from surveys completed in May and June. That localized report found Arkansas consumers to be less optimistic than their neighbors in Missouri and Oklahoma. The consumer sentiment index for Arkansas was 67.4, trailing that of Missouri (68.6) and Oklahoma (76.4). 

“These new consumer sentiment data indicate that Arkansas can expect continued on-again, off-again growth. Until consumers indicate that they feel confident about their economic futures, personal income growth will be the key to additional spending and a breakout recovery. We will look forward to our next data point to begin telling us about trends in optimism,” Kathy Deck, director for the Center for Business and Economic Research at the University of Arkansas, said in the report.

She said the initial readings indicate that consumers in the region, and especially in Arkansas, are “leery” about overall economic conditions in the near future, although they reported being relatively upbeat about their current financial status.

When Tom arrives at work, he enjoys spending time with co-workers and simply getting time out of the house. He says the paycheck “is just icing on the cake.” 

Tom is a client at Open Avenues, a non-profit organization in Rogers that offers people with physical and developmental disabilities programs that foster independent living and socialization. Open Avenues is an example that not all Wal-Mart suppliers are consumer goods companies, grocery vendors or other high-volume players.

One of those programs is through The Work Center, which contracts with local companies, including several departments of Wal-Mart Stores, to have Open Avenues clients perform a variety of tasks in the organization’s facility.

“We do much needed work for the vendors, and it is fulfilling work,” Tom said.

He was the Open Avenues Spirit Award recipient at Open Avenues’ 17th annual Spring Fling Luau in May.

“This award is presented each year to a program participant who best demonstrates the qualities and characteristics that make Open Avenues a great place,” said Allison McElroy, Open Avenues Foundation director.

McElroy shared a list of more than 15 area companies that contract with Open Avenues to have simple manufacturing, sorting, collating and many other functions performed by the clients at the facility. This in turn creates a workforce program for the Open Avenues clients where they learn job skills that can either be used to get a job outside of Open Avenues or provide a simple income and sense of accomplishment for work the clients do at the center. The companies pay Open Avenues and in turn the organization pays its clients for their work. An estimated 25% to 30% of the Open Avenues budget comes from The Work Center, McElroy said. 

According to information from McElroy, at least three of the contracts are with Wal-Mart entities including Wal-Mart, Walmart Print Solutions and Walmart Reverse Logistics. An ongoing project is to have the clients repack shipping boxes for Wal-Mart. 

Sam Dunn, senior vice president of Strategy & Business Planning Walmart Leverage, works at Wal-Mart but is also on the Open Avenues board. He said the box repacking program is a part of Wal-Mart’s sustainability initiative. The clients inspect each box as it comes through and decides if it can be reused or if it needs to be recycled. The boxes that can be reused are bundled and returned to Wal-Mart.

Open Avenues clients also disassemble scanners from old Walmart stores for possible recyclable materials.

By contracting with organizations such as Open Avenues, Wal-Mart is able to leverage a resource that doesn’t require the company to hire its own employees or find additional space to perform the projects. It also contributes to Wal-Mart’s initiative to “keep jobs local” and to help provide jobs for local residents who might not otherwise be able to find work. 

One residual benefit, Dunn said, is that some of the clients who are able to gain enough skills and independence to work outside of Open Avenues sometimes come work in the Walmart store locations. 

McElroy said each client has an individual plan and set of goals to achieve. Sometimes the goal Is full independence outside the center, other times it is simply to increase productivity and help the client achieve the greatest level of independence possible.