While the first five months of 2014 have shown generally sluggish sales tax receipts, June's figures released by the city of Fort Smith on Aug. 1 show a marked improvement. But the city's finance director told city directors in an e-mail that the reason behind the increase is not yet known.

The city's sales taxes (1% for streets and 1% combined for water and sewer projects and fire and parks and recreation) collected $3.691 million in the June report, 12% higher than budgeted.

Overall for the first six months of the year, revenue from the city's sales tax collections are 1.49% above last year's totals for the same period and 0.92% below this year's projected budget.

The total in the June report represents a overall drop in all sales tax receipts of 0.44% below budget. (Because the state of Arkansas has a two-month delay in reporting collections back to the cities, the city of Fort Smith — for budgeting purposes — has historically reflected the collections on a one-month delay. Which is to say, the tax collections remitted to cities in June are from taxes collected in April and transferred by merchants to the state in May.)

Collections so far in the 2014 reporting period of the city's sales taxes were $20.054 million, up from collections of $19.759 million in the same period of 2013. The same period in 2012 saw $20.026 million with $19.273 million in 2011. The city sales tax for fire and parks did not begin collecting revenues until November 2012.

Total collections of the Fort Smith city sales taxes in 2013 was $38.938. Collections in 2012 totaled $39.21 million, just ahead of the $38.684 million collected in 2011. The 2011 collections were 3.9% above the 2010 revenues of $37.23 million.

Fort Smith's share of the countywide 1% sales tax in the June report was $1.428 million, up 13.94% from June 2013 when the city's share of the county sales tax revenues was $1.253 million. The figure was also 13.41% above revenue estimates of $1.259 million.

The countywide tax generated $15.353 million for Fort Smith during 2013, up 0.49% compared to 2012 and down 1.99% compared to budget forecasts. The countywide tax generated $15.279 million in 2012, just ahead of the $15.15 million in 2011, but lower than the peak collection of $16.61 million in 2008.

The countywide tax collection is critical because the revenue is a little more than 40% of the city’s general budget of roughly $42 million. A majority of the general fund budget supports fire, police and other critical city functions. The dip in collections compared to budget estimates has resulted in city officials seeking 4% budget cuts from all departments.

In her email to the Board of Directors, Finance Director Kara Bushkuhl that she believed the spike in sales tax revenues for the month to not necessarily be because more shoppers were hitting the mall or big box stores.

"It appears that this is some kind of adjustment but I have no information over what period it would cover or for what reason.  Other cities are experiencing varied fluctuations like Fort Smith is seeing," she wrote.

Bushkuhl added that her office had reviewed information in an attempt to narrow which sector may have been responsible for the spike, but again said it could not be determined.

"When reviewing the NAICS (North American Industry Classification System) code information for the first 6 months, there does not appear to be any large fluctuations in the four largest categories that comprise 39% of the total city sales tax paid.  The four largest categories are: general merchandise, full service restaurants, building materials, and grocery."

In addition to county and city sales taxes being above target, Bushkuhl said franchise fees were up, as well. But she noted that could change depending on the weather.

"The franchise fees for the 1st two quarters are above last year and above budget expectations.  Electric is up 10% and natural gas is up about 12% over last year.  This may not hold for the 3rd quarter if we continue to see cooler temperatures in August and September as we have in July."

PREVIOUS ANNUAL COLLECTION INFO
Fort Smith 2% sales tax collection (1% for streets; 1% for water/sewer bonds)
2013: $38.937 million
2012: $39.210 million
2011: $38.683 million
2010: $37.229 million
2009: $37.554 million
2008: $41.226 million
2007: $37.858 million
2006: $36.840 million

Fort Smith portion of 1% countywide sales tax
2013: $15.353 million
2012: $15.279 million
2011: $15.15 million
2010: $14.89 million
2009: $15.04 million
2008: $16.61 million
2007: $15.15 million
2006: $14.71 million

Arkansas’ home sales market shows no signs of slowing down, with the number of homes sold during the first half of the year up more than 5% and the combined value of the homes sold up more than 2%. Home sales in June were up almost 9% in Arkansas four largest markets.

Also, the year-to-date 2014 numbers are up compared against what was a healthy Arkansas real estate market in 2013.

Home sales in Arkansas’ four largest metro areas during the first half of 2014 totaled 10,268, up 5.16% compared to the same period in 2013. According to The City Wire’s Arkansas Home Sales Report. The average price per home sold in the four markets was $162,291, down 2.79% compared to the same period in 2013, and the total value of $1.666 billion in the four markets was up 2.23%.

The City Wire’s Arkansas Home Sales Report captures home sales data in the state’s 14 most populated counties within its four largest metro areas — Central Arkansas, the 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.

For the first six months of the year, only the Northwest Arkansas area had a decline (down 2.39%) in the number of homes sold compared to 2013.

JUNE NUMBERS
June home sales totaled 2,087, up 8.75% in the four markets compared to June 2013, and up 15.24% compared to June 2012. The average price per home in the four markets during June was $174,172, down 1.39% compared to June 2013, but up 3.59% compared to June 2012.

There were 959 homes sold in central Arkansas, up 6.67% compared to June 2013, and up 11.9% compared to June 2012.

June home sales totaled 728 in Northwest Arkansas, up 4.9% compared to June 2013, and up 17.42% compared to June 2012.

Jonesboro area home sales totaled 205, up 19.88% compared to June 2013 and up 20.75% compared to June 2012.

In the Fort Smith area, home sales totaled 195, up 25.81% compared to June 2013, and up 10.8% compared to June 2012.

The value of the sales during June were down 1.76% in central Arkansas, up 11% in Northwest Arkansas, up 22.2% in the Jonesboro area, and up 38.29% in the Fort Smith region.

THE REGIONAL PICTURE: 2014
Central Arkansas — Home sales
Jan.-June 2014: 4,856
Jan.-June 2013: 4,599
Jan.-June 2012: 4,240

Fort Smith area — Home sales
Jan.-June 2014: 945
Jan.-June 2013: 790
Jan.-June 2012: 803

Jonesboro area — Home sales
Jan.-June 2014: 1,072
Jan.-June 2013: 897
Jan.-June 2012: 810

Northwest Arkansas — Home sales
Jan.-June 2014: 3,395
Jan.-June 2013: 3,478
Jan.-June 2012: 2,973

The top five counties in terms of Jan.-June 2014 home sales:
Pulaski — 2,261, up compared to 2,144 in 2013
Benton — 2,166, down compared to 2,176 in 2013
Washington — 1,229, down compared to 1,302 in 2013
Craighead — 844, up compared to 709 in 2013
Saline — 794, up compared to 711 in 2013

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

MARKET THOUGHTS
Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas, said the June report is typical for this year.

“It looks very much like what we’ve been seeing,” she said. “Overall, the economy is recovering. We’re seeing employment go up in the state. That, of course, brings with it some housing demand.”

In most markets, there has been an increase in the number of units sold and a decline in prices. Deck said three factors have come together to help boost sales – low interest rates, low unemployment and attractive pricing have all brought buyers to the closing table.

Another factor, she said, is that people do wonder when interest rates might rise and that is causing people to buy while they still have the increased purchasing power through low rates. While lower sales prices are attracting buyers, Deck said those are also a sign of some hesitance on the part of buyers. The economy may be recovering, but consumers are still cautious.

George Faucette, CEO of the Coldwell Banker franchise in Northwest Arkansas, believes the regional economy there can maintain the pace.

"I believe sales will strengthen only slightly, if any, for the second half of this year; but I do believe the pace of the first half is sustainable. Our agents are continuing to be very busy, and the general economy of Northwest Arkansas is doing very well,” Faucette said.

The numbers for the remainder of 2014 may not be rosy for Crawford County in the Fort Smith metro area. Van Buren was recently notified that its residents will not be eligible for Rural Development loan assistance through the U.S. Department of Agriculture after Oct. 1. According to Karen Phillips, housing and development director at the Crawford-Sebastian Community Development Council, the local administrators of the USDA Rural Development Loan program began looking at eligibility requirements after passage of the Farm Bill and noted that Van Buren was no longer eligible in part based upon its proximity to Fort Smith.

Vickie Davis, an agent Sagely & Edwards Realtors in Fort Smith, said the recent positive numbers in Crawford County may be the result of people anticipating the loss of the loan assistance program.

"A lot of people are trying to get things cleared out before that (Rural Development) stuff happens," Davis said.

MarketPlace Grill has closed its Fort Smith location, leaving more than 50 people without a job as the company works to actively expand its presence in central Arkansas.

According to Managing Partner Dave Godwin of Restaurant Management Group, the company has worked on an expansion in the central Arkansas market and said the closure of the Fort Smith location was a business decision as a part of the expansion efforts.

"The Fort Smith market has been good to us, but we had an opportunity in Little Rock," he said. "Everything lined up for us that it was in the best interest of the company for us to make the move. I can't really point to one specific thing necessarily. I'm not sure what to tell you there but that as a company, we're trying to grow and we had the opportunity to open in Little Rock to open the store. Things lined up in such a way that as a business, it was in our best interest to make the move."

Godwin noted that the closure of the Fort Smith location, open since 1995 at 8302 Phoenix Ave., had nothing to do with declining sales or patronage, declining to cite sales figures for the Fort Smith restaurant.

He said total employees at the Fort Smith location was "probably in the neighborhood of 50 or 60." Asked whether severance packages or employment at other MarketPlace locations were offered to Fort Smith employees, he said, "It's really kind of a mixed bag. Kind of all of the above." Godwin did not go into specifics regarding offers made to employees.

MarketPlace's new Little Rock location is 11600 Pleasant Ridge Road, with an opening planned for the early fall, Godwin said. He said the company was looking to add another two locations in addition to the new Little Rock locale.

The company still owns and operates MarketPlace Grills in Conway and Springdale, as well as a MarketPlace express at the Northwest Arkansas Mall in Fayetteville. Godwin said the company was also looking to re-open Burger Life, a concept restaurant that had originally replaced MarketPlace at its former location on Joyce Boulevard in Fayetteville. He said lease negotiations were ongoing on a new location in Fayetteville.

The now-vacant building that had housed MarketPlace's Fort Smith location has been put up for sale by its owner Benefit Bank. In a statement, Benefit Bank President Joe Edwards said the company had decided against pursuing further leasing of the 8,216 square foot building.

"The property will not be leased again but is listed with Mr. Bob Cooper of R.H. Gahn & Cooper Commercial Properties for sale as a development property," he said, adding that the bank "appreciates the relationship with MarketPlace over the years and wishes them the best as they move to the Little Rock market."

Cooper said the property is listed for a purchase price of $1.475 million, which includes the building and 1.4 acres. Traffic counts along Phoenix Avenue in front of the restaurant total 18,000 vehicles per day, while Massard Road sees a 26,000 vehicles per day pass the restaurant.

Wal-Mart store manager Sherry Curtis-Swenson is putting the finishing touches on worker schedules, overseeing the store stocking and making sure the region’s newest Walmart Supercenter in Springdale runs without a hitch when the doors swing open Aug. 13.

This is not Curtis-Swenson’s first time around the block when it comes to overseeing a new store opening. In 2005 she opened the Walmart Supercenter in Jane, Mo., which was her first time as a store manager. She was recently transferred to the new Springdale store after applying for the position several months ago.

“I love opening a store from the ground floor. You get to handpick your store personnel, build your own team of managers and literally have your hands in every aspect of store operations. It’s a wild rush of excitement but a very rewarding experience,” Curtis-Swenson told The City Wire in a recent interview.

STORE STAFFING
At roughly 189,000 square feet, the big box supercenter will employ more 300 workers, including 70 people who transferred from other area stores – like her personnel manager who first hired Curtis-Swenson 21 years ago as an hourly cashier.

She said the 70 transferring workers opened up positions in other area stores, some supervisory.

“We have about 40 supervisor positions, mostly hourly with around 15 salary. ... We skewed a little higher on managers because I wanted to make sure there was adequate operational experience which makes for smooth openings and efficient day-to-day business,” she said.

The employees with limited experience trained in area stores over the past two months to get them ready for opening day.

“I like to see the new hires train in a store because that is real hands-on experience,” Curtis-Swenson said.

STOCKING THE STORE
To date, Curtis-Swenson said the store received between 40 and 50 truckloads of merchandise which is still being set up in the supercenter.

“It takes about 5.5 weeks to set up a store before opening. Aside from Coca Cola and Pepsi, who bring in and set up their own displays, my associates will stock the vast majority of the store. Wal-Mart builds all the modular displays as we stock them from unloading the trucks to stacking up the shelves,” Curtis-Swenson said.

She said her young apparel team has limited merchandising experience and relied heavily on Jeannette Harris from the home office to help set up that department. But typically, store workers roll-in the merchandise from the back room and set up the displays on their own.

WHAT’S NEW?
The new supercenter is Springdale is the retail giant’s latest model and at 189,000 square feet, there is a smaller back room and not as much floor space in the rear section of the store or vendor space at the front of the store.

The Springdale store does have a Razorback Souvenir Shop configured in the center of the large supercenter format. It’s a shop within store concept that Curtis-Swenson is proud to have as part of the store.

There is vendor space for a Regal Nails and a hair salon and some restaurant – yet-to-be named – in the front of the store. The fuel center located on the east side of the store parking lot will include a 1,450 square-foot walk-in mini-convenience store. 

“I am excited about the mini-convenience store. It will stock drinks, milk, bread and those convenience items people often need to pick up without a full grocery purchase. It’s not a big as the Walmart to Go in Bentonville, but it will have adequate convenience items,” Curtis-Swenson said.

Arvest Bank and McDonald’s, which usually lease space in Wal-Mart supercenters in the area, have opted to build stand alone facilities adjacent to the Walmart fueling station.

STORE PROFITS
While the retail giant continues to push smaller and alternative pick-up formats for its growing online business, the supercenter remains the cash cow and the vast majority of its 4,200 U.S. stores.

Insiders estimate the average supercenter rings up annual sales of $125 million. From that store managers can earn between $125,000 and $250,000 per year in salary. Each store also receives annual bonus pay based on performance goals, which is shared among eligible workers.

Wal-Mart said in the last year alone it promoted more than 190,000 people at Walmart U.S. and Sam’s Club and paid more than $500 million in bonuses to hourly workers.

Curtis-Swenson is excited about the profit prospects of the new store in Springdale, but she knows firsthand what it takes to run this large business day-in and day-out. 

“Serving the people’s needs and promoting my team are best part of this challenging job,” she said.

The Northwest Arkansas Big Brothers Big Sisters nonprofit is on a mission to raise $92,000 over the next week Bowling for Kids’ Sake — a fundraising campaign for 2014.

Big Brothers Big Sisters works to help broaden children's perspectives and help them learn how to make good choices as they strive to fulfill their potential fostering success in school and in life.

This year’s Bowling for Kids Sake event is well underway, with a few days left for teams and individuals to register, according to Sarah Heimer, executive director of the local Big Brothers Big Sisters chapter.

Heimer said Thursday (Aug. 7) Saturday (Aug. 9) and Sunday (Aug. 10) are still available for teams and individuals wanting to participate in the fundraising effort. Details for registration can be found on the nonprofit’s website.

Big Brothers Big Sisters notes that $50,975 has been raised toward the group’s 2014 event goal of $92,000.

Consumers across Arkansas see favorable spending conditions in the short-term but when asked about future economic conditions the survey respondents expect leaner times for business conditions and personal finances beyond a year from now. 

Arkansas consumers are also more cautious than those surveyed in Oklahoma and Missouri. These results are part of the Consumer Sentiment Index first released in July by Arvest Bank. The second installment of the survey data was released Tuesday (Aug. 5). 

The survey of 1,200 consumer households conducted by the Universities of Arkansas, Missouri and Oklahoma found that a majority in the three-state region expect their personal financial situations to improve or remain the same within the next year. They are less optimistic about future business conditions.

Arkansas respondents ranked the lowest among the three states with regard to buying conditions, but 42% said now is a better time for spending than later. That compared to 46% of respondents in Missouri and 49% of those surveyed in Oklahoma.

About one in three respondents in the total survey said now is a bad time for spending, Arkansas had the highest percentage in this category at 37%.

When asked to assess the buying conditions in the next six months the respondents were somewhat optimistic, though Arkansas ranked slightly less so than the other two states. The Current Conditions Index based on that question found the regional rating at 78.7. Arkansas has a reading of 74.7, below Missouri (77.6) and Oklahoma (82.2).

In the three-state region, 51% of consumers expect their personal financial situation to remain the same over the next 12 months, while 27% expect it to be better over the same period. Only 22% expect their personal financial situation to be worse than it is currently. 

By comparison, 28% of consumers in Arkansas expect their personal financial situation to improve and 52% expect it to be the same. 

In Missouri, only 19% of consumers expect their situation to improve and 53% expect it to remain the same. 

In Oklahoma, 34% of consumers expect their situation to improve and 48% expect it to remain the same.

When looking at expectations of business conditions, only 29% of consumers in the region expect business conditions to be favorable in the next year. That includes 30% of consumers in Missouri, 32% in Oklahoma and 22% in Arkansas. 

This trend continued when looking at expectations over the next five years, with 37% percent of the regions’ consumers expecting positive business conditions. That includes 36% in Missouri, 41% in Oklahoma and 33% in Arkansas. 

This is also reflected in the regions’ expectations of widespread unemployment over the next five years, with 56% expecting widespread unemployment. That includes 57% in Missouri, 53% in Oklahoma and 61% in Arkansas.

John Brown University announced the formation of the College of Education and Human Services today at a ceremony on the Siloam Springs campus.

The new college brings together JBU’s College of Education with the Graduate Counseling program, and undergraduate programs in psychology, kinesiology and family studies. 

The College of Education and Human Services will also be home to JBU’s new nursing program, which launches with its first pre-nursing class this fall.

“The professions represented in this new college embrace JBU’s mission of training students to serve others,” said Dr. Chip Pollard, JBU president. “To bring these service-centric disciplines into one college is a natural step in the forward momentum of our university.”

The university also announced that Dr. Jeff Terrell has joined JBU as dean of the new college. Dr. Terrell comes to JBU from Richmont Graduate University, where he served as president from  2003 until 2013. He is also past president of the Christian Association of Psychological Studies and section editor of the Journal of Psychology and Christianity.

“We are blessed to have someone with Jeff’s academic and professional experience leading the new College of Education and Human Services,” said Dr. Ed Ericson, vice president for academic affairs. “He is a broadly published expert in the field of psychology, a college administrator with a record of success and, most importantly, committed to the cause of Christ over all.”

Dr. Terrell is a licensed psychologist, and holds a Ph.D. in Counseling Psychology from the University of Southern Mississippi and a Master of Divinity in Biblical Studies from New Orleans Baptist Theological Seminary.

The college is expected to have more than 600 students enrolled in its various programs this fall semester.

Fort Smith real estate agents Nick and Ellie Glidewell have joined Fort Smith-based Sagely & Edwards Realtors.

Sagely & Edwards, established in 1955, is owned by Mont Sagely and totaled more than $52 million in sales in 2013.

“Of course we’d always known about Sagely & Edwards,” Ellie Glidewell, 30, said in a statement. “It finally came time where we felt we needed a change, and they’re a very well-respected company, so it wasn’t a hard choice. We expect great things to happen here.”

Ellie and husband, Nick, 35, entered the real estate business in 2009. Ellie entered full-time, with Nick working at it part-time while holding down the position of director of sales/IT for his family’s business, Glidewell Distributing of Fort Smith. Together, the couple has generated more than $14 million in property sales in Fort Smith and outlying areas.

Her sales totals during her first full year in the business earned her the Rookie of the Year award from the Fort Smith Board of Realtors. In 2011, Ellie was the seller’s agent on a $2.5 million home, the most expensive home ever sold in Fort Smith.

The values of building permits in Fort Smith, Greenwood and Van Buren were a combined $20.975 million in July, up nearly $6.46 million from July 2013 when the combined cities issued $14.515 million in permits.

The increase in values represents a 44.51% increase compared to July 2013.

Building permit values for the first seven months of the year are up 10.23% over the same period last year, with $117.96 million in permits issued this year versus $107.017 million issued from January to July of last year. When compared to the first seven months of 2012, this year's year to date total is an increase of 55.98% over that year's $75.627 million total.

FORT SMITH
Last month, the city of Fort Smith issued a total of 185 permits with a total value of $19.539 million. Compared to July 2013, the city's permit values increased 41.38% from a total of $13.82 million last year.

When compared with permit values from July 2012 of $6.996 million, Fort Smith's building permits are up 179.23%.

Pushing Fort Smith's total values higher for the month was a $9.764 million building permit issued for the Ben Geren Aquatics Center at 7300 South Zero Street. The project, jointly funded by the city of Fort Smith and Sebastian County, is expected to be complete and open to the public by Memorial Day 2015.

The aquatics center project accounted for 65.69% of the city's $14.862 million in commercial building projects permitted during the month of July.

The city also issued 123 residential building permits valued at $4.216 million, with 12 new construction projects accounting for $3.098 million of the total, or 73.47%.

GREENWOOD
Seven building permits were issued in the city of Greenwood last month with a total value of $876,725. The figure for July represents a 249.29% increase from July 2013's total of $251,000 on five permits.

Of the permits issued, four were residential permits valued at $837,385, or 95.51% of the total permits issued.

VAN BUREN
Van Buren saw 40 permits issued with a total valuation of $559,100, an increase of 25.95% over July 2013's total of $443,920 on 28 permits.

A commercial addition valued at $330,000 at 1300 Scott Street accounted for 59.02% of Van Buren's July building permits.

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

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

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

Retailer Target said Tuesday (Aug. 5) that it expects to incur gross expenses of $148 million from its data breach. As a result, Target decreased its estimates for the second quarter earnings per share. The retailer said those expenses could be partially offset by $38 million in insurance receivable.

Comparable store sales are projected to be flat while Canadian sales should be lower than initially expected because of higher expenses related to inventory management.
Target shares dropped 4.4% on the lower guidance to close Tuesday at $58.03, down $2.67.

Target will report earnings on Aug. 20. Wall Street consensus is 91 cents a share, down from 97 cents a year ago. Revenue is expected to grow 2% to $17.47 billion.

Whirlpool has proposed additionally monitoring and testing of water and soil samples at sites near its now-shuttered manufacturing facility in south Fort Smith following detection of trichloroethylene (TCE) in the area.

According to a supplemental work plan submitted to the Arkansas Department of Environmental Quality on Monday (Aug. 4), the company's environmental consultants told ADEQ that the additional test and samples were necessary near the northeast corner of its closed factory after "three of the five new groundwater monitoring wells installed at the northeast corner in late June" detected the TCE.

The new sites were installed on July 8 and Principal Michael Ellis of ENVIRON, Whirlpool's consultants, told ADEQ that no TCE was detected in soil samples at the time of installation.

"Significantly lower” levels of TCE were measured in groundwater at the northeast corner than at other locations, including the facility's northwest corner and Whirlpool's property boundaries, Ellis said.

"In order to determine if remediation activities are warranted, further investigation is required to verify whether TCE detected in the groundwater has migrated under Jenny Lind Road and if so, whether this groundwater has also migrated under the undeveloped property owned by the Boys & Girls Club that will soon be separated from the club by the upcoming Ingersoll Avenue Road expansion," he wrote.

Ellis proposed soil probes to collect soil and groundwater samples in the areas beyond Whirlpool's property lines.

"Based on the results of this first phase of testing, permanent groundwater monitoring wells would be installed, if appropriate," he added. "If remediation activities are warranted, plans will be prepared for ADEQ review and approval to aggressively and swiftly address this contamination as appropriate based on the data from this investigation. … Based on existing data and the easterly groundwater flow direction in this area, there is currently no indication of impacts to other properties adjacent to the northeast corner of the Whirlpool property - other than those where we are proposing to conduct this additional investigation."

Additionally testing will also be conducted at the Whirlpool site, Ellis said, "out (of) an abundance of caution" in order to determine whether there could be any additional TCE migrating from the company's property.

"Once these plans are finalized, we will submit additional work plans to ADEQ for any necessary approvals before commencing these activities," he wrote.

The additional testing will start this week "following the completion of access agreements with the two property owners (City of Ft. Smith and Boys & Girls Club) where the proposed sampling will take place," Ellis said, with initial probes taking one week to complete.

In a statement, Whirlpool Vice President Jeff Noel said the company was committed to being a "responsible corporate citizen of Fort Smith and to managing this issue in an open and responsible matter."

"Sampling data from the new wells near the northeast corner of the Whirlpool manufacturing facility detected no soil contamination, and there remains no health risk to residents. Because of the interest in the ongoing remediation work from Fort Smith residents and City Directors, we are accelerating the supplemental investigation to define the impact of the TCE detected in the groundwater in some of the new wells in the northeast corner of our property, and we plan to complete the sampling, validation and analysis by early September.

"If additional remediation activities are necessary, plans will be prepared for ADEQ’s review and approval to aggressively and swiftly address this contamination as appropriate based on the data from this investigation. While we are still in the process of gathering the facts, Whirlpool is sharing this information now because of our commitment to transparency."

Retail giant Wal-Mart Stores has plenty of publicity-generating irons in the fire from onshoring manufacturing jobs, hiring veterans and sustainability pushes. But one initiative that often goes underreported is the retailer’s economic empowerment of women program — an effort announced in 2011 by then-CEO Mike Duke.

In 2011, Wal-Mart pledged to source $20 billion from women-owned businesses for its U.S. segment by the end of 2016.

MiKaela Wardlaw Lemmon, senior director for women economic empowerment at Wal-Mart, told The City Wire that the retailer remains focused on leveraging its size and scale to empower women across its global supply chain. Lemmon said over the past two years the retailer has developed a comprehensive women-owned business sourcing strategy and sets annual goals with respect to the $20 billion in purchasing power.

“We met the annual goals in the first two years and our spending since then is $400 million ahead of our goal. We are actively working toward growing our women-owned supplier base,” Lemmon said.

Wal-Mart has roughly 1,000 suppliers who made their way on to the retailer’s shelves through the women-owned business initiative.

Women-owned businesses contribute over $1.3 trillion dollars to the U.S. economy and women are responsible for over 80% of the consumer decisions globally.

MEET MAGGIE
Maggie Cook, founder of Maggie’s Salsa, said working with Wal-Mart through the empowering women’s initiative is a great opportunity for her to grow the small business she founded after immigrating to the U.S.

“Women-owned businesses have so much to offer and research shows that women shoppers often gravitate toward the products from woman-owned businesses,” Cook told The City Wire.

Cook, whose full name is Maria Magdalena De La Cruz Cook-Garcia, was born in a Mexican orphanage. Her parents cared for 200 children through the years, legally adopted 60 children and had eight biological children of their own.

By chance she caught the eye of college basketball scouts when her family visited the U.S. on a fundraising mission for their charity organization. Cook dreamed of playing basketball for the Mexican National Team, but that did not happen. Her luck changed when she joined a pick-up game while her family was visiting in West Virginia. The University of Charleston’s (West Virginia) basketball coach saw her play and offered a scholarship.

Cook graduated with a degree in interior design and in 2004 she started Maggie’s Salsa after winning a local salsa contest by unanimous vote. She got the company off the ground with $800 in seed money from a friend and made her first store sale using 6 tomatoes. In 2007, Whole Foods placed an order that required 60,000 tomatoes and she has never looked back.

Dan Irwin, a category director for product at Walmart U.S., said when he tasted Maggie’s Salsa he knew quality and freshness was important and that it would be a great product for Wal-Mart. 

Cook employs 18 people in her small company and outsources the production and distribution to another salsa manufacturer who follows her ingredient requirements.

“Our sales are growing with Wal-Mart and Sam’s as we are in the mid-Atlantic region there. In addition we are in Whole Foods and Kroger,” Cook said.

WOMAN-OWNED 
In July, Wal-Mart was the first retailer to announce its commitment to the Women's Business Enterprise National Council (WBENC) efforts to bring forth a new logo label identifying goods as produced by women-owned businesses.

“At Wal-Mart we are committed to empowering women and impacting women-owned businesses from around the world — and so are our customers. We recently conducted a survey that found 90% of female customers in the U.S. would go out of their way to purchase products from women, believing they would offer higher quality,” Lemmon said.

Wal-Mart’s role in the process was to collaborate on the logo design and conduct the supporting research. The retailer said consumers will begin seeing the new logo on its shelves in September. 

Cook said she plans to use the new woman-owned business labels that will help more consumers know the Maggie’s Salsa is a woman-owned enterprise.

GIRL POWER
Wal-Mart said the majority of its 245 million customers per week are women, and women control more than $20 trillion of annual consumer spending globally. With nearly 1 billion women estimated to enter the global economy during the coming decade, 

Wal-Mart said it’s taking the lead in sourcing from and providing access to markets for those women because it promotes economic growth and better lives for their families.

In 2012, Wal-Mart estimated 224 million women were starting or running businesses in 67 countries around the world. Many of these women are planning for significant business growth; however, substantial barriers challenge female entrepreneurs who hope to grow their businesses. For example, although 29% of U.S. businesses are women-owned, enterprises owned by men are more than three times as likely to reach $1 million in annual revenue. 

“We work to address barriers and help women-owned businesses and our merchants work more effectively together,” Wal-Mart said.

PROGRAM TOOLS
Lemmon also notes that a key to the program success has been the Women-Owned Business Advisory Council (WOBAC) made up of internal advisors, industry leaders, merchants and suppliers. Through conversations with industry leaders, our merchants and suppliers, the retailer identified challenges facing woman-owned businesses and, along with supplier diversity and supplier administration, they implemented a variety of tools and resources to address them.

Wal-Mart developed scorecards to ensure their merchants and other leaders have more visibility into the woman-owned suppliers they work with and how each area of the business is tracking against its target. 

In 2013, Wal-Mart conducted two types of supplier summits. The first allowed teams to discuss strategic business growth opportunities with women suppliers. The second focused on finding new suppliers. Wal-Mart and Sam’s Club held 10 summits last year to help grow existing or identify new suppliers, Lemmon said.

Wal-Mart launched the Supplier Academy in November 2013, which is a set of online educational modules designed to prepare “merchant-ready” suppliers and buyers to work with them. 

Modules such as “Keys to a Successful Buyer Presentation” and “Working with Small and Diverse Suppliers” are aimed at developing strong working relationships and set both sides up for success, the retailer notes.

Tyson Foods Inc. agreed to sell $3.25 billion in senior loans to help cover the $8.55 billion acquisition of Hillshire Brands.

The bond offerings include:
$1 billion at 2.65%
$1.25 billion at 3.95%
$500 million at 4.875%
$500 million at 5.15%

The offerings are expected to close on Aug. 8 subject to customary closing conditions.

Tyson intends to use the proceeds from the offerings, along with cash on hand, Class A common stock and tangible equity units offerings and loans to finance the Hillshire Brands acquisition and to pay related fees and expenses.

General Mills is pushing its sustainability goals by insisting that the companies it uses in its products and packaging take steps to shrink their carbon footprint and reduce water usage.

The company is one of Wal-Mart’s largest suppliers, and pushing sustainability goals down the chain is a page from Wal-Mart’s own sustainability initiative.

The packaged-food giant recently spelled out changes in its corporate policy geared at being better for environment and better for the bottom line profits. 

In a blog post dated July 28, the company noted that weather conditions such as drought, floods and excessive heat can decrease output of the crops that make up its core cereal brands and other food products. It also says changing weather patterns can affect delivery of products to customers.

John Church, supply chain executive at General Mills, pledged to buy its 10 most frequently used ingredients from sustainable sources by 2020. Those ingredients comprise 50% of the company’s total purchases.

Church said the new policy continues with companywide efforts to reduce greenhouse gas emissions (GHG) in its operations and in agriculture. General Mills has had specific GHG in place since 2005, but is barely scratching the surface given that the majority of GHG and water use linked to its carbon footprint comes from its supply chain and agriculture production of raw materials.

Environmental groups like Oxfam and the Environmental Defense Fund applauded the move as they have called for big brands to use their clout in creating more awareness around sustainable agriculture. In April, General Mills CEO Ken Powell joined Wal-Mart CEO Doug McMillon in announcing a commitment to accelerate innovation in sustainable agriculture through an initiative with industry trade group Field-to-Market. 

Jerry Lynch, chief sustainability officer at General Mills, said Field-to-Market, Wal-Mart and General Mills recently convened in Idaho with farmers to kick off the new challenge aimed at reducing greenhouse gas emissions through nitrogen fertilizer optimization. The technologies selected through this program will help farmers make sure that every pound of nitrogen they apply is used by their crop in the most effective manner in order to garner the greatest yield at the lowest cost and with the minimal impact on the environment.

Lynch outlined three examples being used by farmer in the program.
• Fieldprint Calculator
This device provided by FTM allows farmers to track information related to their specific farm. They are able to compare how they are doing compared to average results in their area. The farmers may then identify opportunities to improve their results and increase productivity in future years while having a positive impact on land use, conservation, soil carbon, irrigation water use, water quality, energy use and greenhouse gas emissions.

• Fertigation
This technology allows the application of nitrogen at the same time irrigation water is applied. This approach helps prevent the loss of nitrogen into the air that occurs when fertilizer is applied to the top of the soil by placing the nitrogen right at the roots of the plants, where it is needed.

• Aerial imagery analysis
This technology is helping farmers target specific parts of their fields that require herbicide or fertilization treatment, avoiding the cost and potential environmental damage of spraying an entire field.

Lynch said General Mills will release the results of the new practices this winter and it will continue to build upon the toolkit of technologies in the coming months.

“Accelerating innovation in sustainable agriculture will continue to be a priority for Wal-Mart and General Mills given the promise it holds for farm communities and the long-term value it provides to society, the environment and business,” Lynch said.

Digital coupons are becoming somewhat of a necessary evil for retailers, according to Carol Spieckerman, CEO of NewMarketBuilders. But not all retailers are on the same page .

Dollar General, one of the weakest in digital prowess among value retailers, recently announced a partnership with Coupons.com that will make digital coupons available in its 11,300 stores.

“The DG Digital Coupon program provides our customers with an easy-to-use and convenient platform to use digital coupons toward our everyday low prices, helping them get the products they need at prices they want,” said Todd Vasos, Dollar General’s chief operating officer.

He said the service is aimed at shoppers who are using digital and online technology to save money which is part of Dollar General’s everyday commitment. To use the DG Digital Coupon Program, customers sign up online or in stores using a numeric identification number, which is typically their telephone number. After signing up, customers select the most relevant coupons to be added to their profile and the discounts are applied at checkout to customers’ eligible purchases, including leading national brands and Dollar General’s store brand products.

“As more retailers offer the option, shoppers have come to expect them. I like what Dollar General is doing with its DG digital coupons. The program is truly shopper centric because it allows customers to choose which coupons they want to use online then have the savings automatically applied at checkout. Beyond the convenience factor, it is a paperless transaction which gives Dollar General sustainability points,” Spieckerman said.

While Wal-Mart is miles ahead of Dollar General with numerous digital innovations including e-receipts, their digital coupon policy is somewhat old school.

“Walmart’s insistence on paper-based coupons is inconsistent with its sustainability push but it does encourage shoppers to opt for its Savings Catcher program instead,” Spieckerman explained. “Savings Catcher is great for Wal-Mart because it keeps shoppers spending in the Walmart ecosystem as they redeem gift cards. It may sound convenient for shoppers to load coupons onto their smart phones but not every shopper will be comfortable handing their phone over to a store associate. Paperless and automatic is the way to go.”

Wal-Mart has made manufacturers coupons available on its website for several years, according Ravi Jariwala, spokesman for Wamart.com. He said the site allows consumers to surf for the coupons they want, click the box to clip, and the savings are tallied onsite. The consumer must print out the coupons, which can then be redeemed at their local stores.

Jariwala said during 2013 Scan & Go tests there was a digital coupon function that automatically deducted the coupon from the purchase. Scan & Go is no longer being tested, but Jariwala said Savings Catcher and e-receipts came out of the learnings from the Scan & Go tests. 

He said when a shopper signs up for e-receipts they automatically get the benefits of Savings Catcher, which was rolled out nationally this week and expanded to include produce and select general merchandise.

GROWING MOBILE
Just how pervasive is mobile shopping? Shop.com reports 156 million Americans own smartphones. Goldman Sachs projects that U.S. retail sales directly on smartphones will more than double from $70 billion this year to $173 billion by 2018. Similarly, tablet sales will more than triple from $130 billion this year to $453 billion in 2018.

Among U.S. smartphone users, approximately half have consulted their phones to find store information such as location and hours. Half as many again tap their smartphone when they’re browsing or looking for a product or service. And while 37% of 18-to-34-year-olds have purchased a product on their smartphone, so have 29% of smartphone users 35-54 and 14% of those over 55, according to Shop.org.

This summer, 54% of back-to-school shoppers cited coupons as the leading factor that influenced them to shop at a particular store. 

About half of U.S. Internet users will have redeemed a digital coupon by the end of this year. Roughly half (48%) of those are mobile coupon users, up from 39% last year, and more growth is ahead, according to Prosper Insights and Analytics.

WHAT’S NEXT?
Retailers are strategically using digital coupons to achieve a variety of goals beyond the immediate sale. For example, Ace Hardware recently concluded a test in Northern California that encouraged in-store shoppers to text them for a coupon. 

Ace reported that the test increased average basket size in the store and grew the company’s opt-in text-messaging list. Prosper Insights notes that coupons can be a key element in campaigns to re-engage customers, avoid abandonment on the checkout page and rescue abandoned online carts.

“The budgeting aspect of Wal-Mart’s Scan & Go was one of the most popular traits singled out by our mobile users. When they scanned an item into their phone and e-cart it kept a tally of their total purchase. Consumers liked that aspect,” Jariwala said.

Gibu Thomas, senior vice president of mobile at Walmart.com, said during the June shareholders week that e-receipts hold much promise as a platform upon which applications may be built. In the future, he predicts through e-receipts, shopping lists will be generated based on previous shopping trips and then emailed or texted to the consumer as they enter the store. Those lists could also attach manufacturer coupons for more savings potential.

Clifton Beckham is stepping down as chief financial officer of Van Buren-based USA Truck effective Sept. 30. The company is in the midst of a search for his replacement.

Beckham was replaced by John Simone as the trucking company’s CEO in early 2013 following four consecutive years of financial losses. In the shift, Beckham returned to the CFO post, a position he held between 2002 and 2007.

“On behalf of the board of directors and the entire Company, I want to thank Cliff for his invaluable contributions over 20 years of service to USA Truck,” USA Truck Chairman Robert Peiser said in a statement. “Since returning to his previous role as chief financial officer in February 2013 after serving as chief executive officer for nearly six years, Cliff continued to demonstrate singular dedication and tireless efforts to implementing the Company’s turnaround plan. All of us admire him for his integrity and selfless commitment to USA Truck, and wish him the best as he begins a new phase of his career.”

In the statement, Beckham said he is leaving the company to pursue new opportunities, but is grateful for his time at USA Truck.

“I feel privileged to have spent so many years at USA Truck and look forward to watching John and his management team continue to strengthen the organization, create a winning environment for employees and deliver value for USA Truck’s shareholders.”

 A Tyson Foods subsidiary, New York-based Zemco Industries, said Thursday (Aug. 7) it was recalling 106,800 pounds of smoked sausage due to misbranding and an undeclared allergen.

The product branded Cavanaugh Smoked Sausage contained soy, a known allergen that was not declared on the product label, a federal requirement.

The problem was discovered during a reformulation of the product and packaging update. Tyson has received no reports of adverse reactions due to consumption of the product.

The recall involved 2.5 pound packages of Cavanaugh Smoked Sausage produced on June 11, June 13, June 19, July 10, July 19 and Aug. 1, 2014.

The affected product has “Use By” dates of Sept. 9, Sept. 11, Sept. 17, Oct. 8, Oct. 17 and Oct. 30, 2014.

The product also bears the establishment number “Est. 5222” on the package and was sent to distribution centers for resale as well as retail establishments throughout the U.S.

Arvest Bank has promoted Stephanie McFarlin to consumer lender at its Springdale Emma Avenue location.

McFarlin started with Arvest Bank in 2010 on the treasury management support team. In 2012 she transferred to mortgage loan assistant at the Arvest Bank in Village on the Creeks branch.

“Stephanie has proven herself as a capable, strong member of the Arvest Bank team,” said Christy Queary, consumer loan manager for Arvest Bank in Springdale. “She has a passion for working with her customers and has developed an ability to advocate their financial needs and goals. We are so happy to have her in Springdale and look forward to watching her grow with us.”

McFarlin is a Springdale native. She earned a bachelor’s degree from John Brown University this year.

The loss of the Russian export market for U.S. chicken companies is not expected to have measurable economic impact here in the U.S., according to Jim Sumner, president of the USA Poultry & Egg Export Council.

He said Russia is not the market it once was for U.S. chicken partially because of the cat and mouse game played between the two governments over the past decade. Sumner said for many years chicken has been used a political ploy between diplomatic tensions with Russia and other countries around the world.

The recent sanctions (fruit, vegetable, meat and dairy) imposed by Vladimir Putin in retaliation of the ongoing U.S. economic sanctions come as no surprise to local poultry companies who expect minimal impact during this latest chess game.

“We are disappointed about the loss of the Russian market but don’t expect the impact to be significant since the volume we ship there can be absorbed by our other global customers,” noted Worth Sparkman, spokesman for Tyson Foods.

Sumner said last year U.S. chicken exports to Russia were valued at $303 million. It represents about 7% of U.S. poultry exports today. The U.S. exports about 20% of its total production.

While Russia is the second leading export country for U.S. chicken, Sumner said that loss should have hardly be measurable given the tighter chicken supplies and uptick in demand here in the U.S. because of high red meat prices.

Discount grocer ALDI – a small box, no frills, private label grocery format – was recognized as the nation’s low-price grocery leader for the fourth year by consumer research firm Market Force.

The Market Force survey for 2014 asked shoppers to rank the top grocery offering low prices. The participants ranked ALDI ahead of Costco, Wal-Mart and Trader Joe’s. They also named ALDI one of the top three favored grocery store chains in America.

"It's no surprise that ALDI continues to be recognized as the low-price grocery leader," said Jason Hart, ALDI president. "However, these latest survey findings prove that a growing number of consumers are choosing to shop at ALDI for more than just low prices."

ALDI also maintained a top five ranking in the categories of good private label brands, accurate pricing and sustainable policies. ALDI also ranked in the top five for courteous staff, fast checkout. But the small box grocer didn’t make the top for five for the one-stop shopping category, which went to Wal-Mart, Costco, H-E-B, ShopRite and Meijer.

Hart said ALDI continues to increase its branded product also adding more better-for-you options like gluten-free and organic choices. ALDI announced in December plans to grow its U.S. footprint by 650 stores over the next five years.

While price matters, consumers also expect well-stocked stores that can anticipate their needs in an inviting atmosphere. Publix takes the top spot in this category, followed by Trader Joe’s. Wal-Mart and ALDI did not make the top five ranking in this survey. (See detailed ranking info at the end of this story.)

When it comes to product quality, Costco took the top spot in beef, trumping Publix and H-E-B. Publix took top grade in produce quality, with H-E-B coming in a close second. Wal-Mart nor ALDI ranked in the top five for the two quality categories, despite a major marketing push by Wal-Mart on beef and fresh produce.

“Competition is fierce and growing in the grocery sector with regional players going national and national players moving toward neighborhood market concepts. It’s only getting more difficult to attract and keep customers, and being adequate is no longer good enough,” said Janet Eden-Harris, chief marketing officer for Market Force. “We’ve found that delighted customers are three times more likely to recommend a grocery store than those who had just an OK experience. This tells us that chains that truly wow their customers on their first visit can establish brand advocates who go on to recommend the grocer to friends and family.”

Wal-Mart’s sustainability score was not among the top five according to the survey. Trader Joe’s, Publix, ALDI, Costco and H-E-B were the top choices by the survey respondents.
When all the category scores were tallied by Market Force, Trader Joe’s took the No. 1 spot as the favorite grocery store chain with a score of 85%. Wal-Mart ranked No. 11 with a score 32%, despite being the most shopped grocer in the nation.