Weekly Industry Update · circulation, and have decreased their newspaper-distributed circulars within the past year. ... The Autotron system achieves complete control regardless

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MARKETING NEWS Grocers realize most success with print, growth in digital and social anticipated .................................. 1 Direct Mail: "Still among the best media to drive response" .................................................................. 3 QuadTech Autotron System now a standard feature on Cerutti gravure presses .................................. 4 Coupon activity on upswing, as are sales ................................................................................................ 5 Taco Bell cooks up edible QR codes ......................................................................................................... 5

PUBLISHING NEWS Two Sides kicks off campaign to combat environmental marketing misinformation ............................. 6 Research reveals power of print magazine advertising ........................................................................... 7 Magazine closures drop significantly in first half 2012 ............................................................................ 8

POSTAL NEWS USPS must learn from mail plant consolidation woes, says OIG ............................................................. 8 Zumbox to ramp up US operations with $10m investment .................................................................. 10

RETAIL NEWS Target, Neiman Marcus design a new kind of partnership .................................................................... 11 Walgreens teams with app developers on photo printing .................................................................... 12 Myers Group installing QThru mobile platform for smartphone checkout ........................................... 13 What will they think of next? ................................................................................................................. 13 Retail’s role players ................................................................................................................................ 14

ECONOMIC UPDATE

GDP: 1.9% in Q1 2012

Unemployment Rate: Unemployment was essentially unchanged at 8.2 percent

Consumer Confidence: which had declined in May, fell further in June. The Index now stands at 62.0, down from 64.4 in May.

MARKETING NEWS Grocers Realize Most Success With Print, Growth in Digital and Social Anticipated

Staff Writer , Print In The Mix . 7/11/2012

Media and marketing services company Valassis recently announced results of a grocery retailer marketing study.

Today, 90% of grocery retailers consider weekly circulars their top promotion vehicle of choice. In fact, print takes the top three effectiveness spots, with retailers listing circulars (newspaper and mail-delivered) and direct mail as the leading drivers of sales.

July 16th , 2012

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This was among the findings of the Supermarket Media Usage Study of 60 leading U.S. grocery decision makers, representing approximately 50 national and independent grocers/chains. The survey was executed on behalf of Valassis by grocery and food retailer media firm, Stagnito Custom Media.

When it comes to effectiveness, the study revealed that 75% of grocery retailers realize increased results from print circulars, driving their preference. More specifically, 50% indicated increased sales and 25%, increased customer retention.

The study also found that grocers are adapting their media tactics in response to declining paid newspaper circulation, and have decreased their newspaper-distributed circulars within the past year. As a result, 26% of respondents reported increased usage of mail-delivered and online promotions.

Grocers are developing targeting and distribution strategies for their circulars through a combination of internal sales data and consumer insights with 90% saying customers plan differently by trip type – 82% believe consumers are making more decisions at home than three years ago.

Additional highlights:

• Two-thirds of respondents indicated they expect that social media/Internet will be a more significant component of their media plans within five years. Sixty-five percent of respondents expect that over the course of the next five years, social media/Internet will be the medium of choice for grocers to meet sales goals.

• Two-thirds (65%) have ethnic marketing initiatives;

• Six out of 10 (60%) have initiatives to address varying shopping trip types; and,

• More than a third (35%) have generationally based initiatives.

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Direct Mail: “Still Among the Best Media to Drive Response” (Digital Nirvana)

Heidi Tolliver-Walker , Digital Nirvana . 7/9/2012

In a world enamored with digital media, the Direct Marketing Association’s data goes against the grain.

“Even though direct mail is less effective in driving response than it was a decade ago, it still is among the best media for generating overall response.”

These are the words of Yory Wurmser, DMA’s director of marketing and media insights. He is referencing the DMA’s 2012 Response Rate Report, which continues to show direct mail for market powerhouse that it is.

According to the 2012 edition, which now includes email, display ads, and paid search, as well as history trends, direct mail response rates have dropped nearly 25% over the past nine years. Even so, mail campaigns draw a better overall response than digital channels.

While direct mail was remains a powerful tool in the marketing arsenal, email is cheap. Perhaps then it shouldn’t be surprising that the DMA report shows its ROI to be substantially higher (28.5 vs. 7.0).

What we don’t know, however, is whether there is really a direct comparison. For example, ROI on direct mail might be lower overall, but if you use them in entirely different markets (selling automobiles vs. Canadian pharmaceuticals), the comparison is completely irrelevant.

Other findings of the report:

•Transactional data show that only 6% of the actions following an online display advertisement occur immediately following a click, which indicates that click-through rate greatly underestimates the impact of online display.

•Transactional data show that financial services emails had open rates above 30%, which ranked the highest among industries. Retail (apparel) had open rates averaging 14.7%, which narrowly was lower than Publishing & Media (14.9%). In contrast, data showed Publishing & Media as having the highest action rates per impression (0.013%).

•For emails, the highest click rate to open rate is for CPG (46.5%).

•Cost per order or lead for acquisition campaigns were roughly equivalent for direct mail ($51.40), post card ($54.10), email ($55.24), and paid search ($52.58).

•Email performance went up slightly from the 2010 Edition of the Response Rate Report.

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•The highest response rates—nearly 13% to a house list—was produced by telephone marketing.

•Telephone marketing also had the highest costs: nearly $78 per order or lead for a house list, and $190 for a prospect list.

•Costs were generally higher for B-to-B campaigns than for B-to-C campaigns.

DMA’s Response Rate Report was conducted through a survey that was emailed in April 2012. When the survey was closed, DMA had received 481 usable responses.

QuadTech Autotron System Now a Standard Feature on Cerutti Gravure Presses Press Release , Whattheythink.com . 7/13/2012

Cerutti Packaging and Equipment (CPE), a subsidiary of the Cerutti Group (Vercelli, Italy), has approved QuadTech‘s Autotron 2600 Register Guidance System with ClearLogic as a standard feature on its gravure packaging presses. This approval follows joint development tightly integrating the QuadTech Autotron register system into Cerutti’s press controls. The system enhances the press’s ability to pre-set the cylinder positions, and enables the press to lock into register seconds after production has started. The press can then maintain tight tolerances throughout the print run. By minimizing start-up waste, QuadTech’s Autotron register system enables Cerutti presses to maintain profitability in short-run printing situations.

The Autotron system achieves complete control regardless of ink, speed or substrate, and can measure opaque, transparent, reflective substrates such as BOPP, metalized film and high-gloss cast. The system works seamlessly with the Cerutti Auto Presetting System (CAPS) as an integrated, flexible and cost-efficient tool for minimizing waste at the start of new and repeat jobs in the first phase of production.

Riccardo Montagnini, Innovation Manager CPE, says, “As leaders in the rotogravure printing sector for packaging and converting equipment, we need to ensure that our presses maintain the highest levels of efficiency. It is essential that we adapt to the marketplace by investing in automation to increase speeds of production and decrease job change-over times. QuadTech’s Autotron register control system delivers exactly what our customers need for fast, reliable manufacturing. As shorter runs become the standard in package printing, down-time and waste need to be minimized. This system will ensure that start-up times are optimized and defects eliminated.”

The Cerutti packaging gravure presses will use QuadTech’s Autotron 2600™ register scanning heads to assist in phasing and sequencing all of the cylinders into register. This process uses programmable scanning-heads and pre-set capabilities, which access stored job parameters for easy alignment, regardless of substrate. It easily switches between paper and film or foil modes without having to stop the press. The scanning heads then send corrections through the joint Ethernet Interface, recognizing register errors invisible to the human eye, giving the operator more control over make-ready and quality.

Randy Freeman, QuadTech general manager of packaging says, “We are very pleased with the results of our cooperation on this project. With the ability to pre-set, store and share information via the jointly-developed interface, the next job can be set up while the current job is running and corrected within in a run length to precise register. This eliminates time-consuming manual intervention and waste.”

Since QuadTech was recognized by Cerutti as an approved supplier of register control systems, the American manufacturer’s press controls are being installed on Cerutti presses at Containers Printing Pte Ltd, Singapore, a leading manufacturer of high-quality metal and plastic packaging products, and Shanxi Yongji Printing and Dyeing Co.,Ltd., China, which specializes in printing, dyeing, and final finishing of textiles.

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Coupon activity on upswing, as are sales Staff Writer , Retailing Today . 7/13/2012

No Wonder Walmart’s U.S. sales are on the upswing. Kantar’s Marx media solutions group this week in its mid-year report noted free standing insert pages for Walmart increased nearly 82% to 2.5 billion pages during the first half of the year.

That is a stunning increase, so it is worth noting that the Marx definition of an FSI page includes any type of promotion piece that appears in either the News America Smartsource or Valassis Red Plum coupon delivery vehicles inserted in Sunday newspapers. Also included in the tally would be any ad pages contained in the Valpak blue envelope for products, which indicate they are available at Walmart.

With 2.5 billion pages under its belt during the first half of the year, Walmart is ranked at the top of the list, compared to just a few years ago when it availed itself of FSIs to a lesser degree and was ranked 16th.

Second on the mid-year list was Walgreens, up 71.1% to 1.4 billion pages. Target was ranked third, but it actually declined 11% to 940 million pages, while Family Dollar increased to 932 million.

“Retailers may gain a competitive advantage by participating in retailer FSI promotions to capture a greater share of shopping trips among households that use coupons,” said David Hamric, Marx general manager. “For consumers, coupons are a proven way to save money on a specific item. For retailers, coupons can increase the overall retail value of each shopping trip by adding more items to the shopping basket and increasing the budget by the value of the coupons.”

Taco Bell cooks up edible QR codes Bill Siwicki , Internet Retailer . 7/11/2012

Baskets of avocados and lemons are bypassing the kitchens at Taco Bell and heading straight for the pages of some of the nation’s top magazines. To promote the restaurant chain’s new Cantina Bell Menu, the vegetables and fruit were painstakingly lined up into the shape of QR codes, two dimensional bar codes that, when scanned by a smartphone camera, connect a consumer to mobile web-based content.

The avocado and lemon Quick Response codes are part of a national advertising campaign in several print publications. The codes are enormous, taking up two-thirds of the page. When scanned by any QR code reader app (numerous are available for free in major app stores), the code connects a consumer to a mobile-optimized landing page where she finds descriptions and nutritional information on each of the

items on the new Cantina Bell Menu. The consumer also can read recipe ideas from celebrity chefs, share items via social media, find the nearest Taco Bell, and view videos on Lorena Garcia, the main chef for the Cantina Menu, and on the making of the QR codes.

Mobile commerce bar code technology and services provider ScanLife is helping Taco Bell run the campaign. ScanLife has experience with many clients in different industries and says Taco Bell has come up with one of the more creative uses of a QR code it has seen.

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“Taco Bell launched their new Cantina Bell menu, which features fresh and healthy ingredients like whole black beans, guacamole made with Hass avocados, fire-roasted corn salsa and more,” says Mike Wehrs, president and CEO of ScanLife. “They wanted customers to engage and learn more about this new menu, so creating the codes out of the ingredients was a creative way to make the connection tie more closely to the brand message.”

But ScanLife adds it’s always what’s on the other end of a QR code that counts.

“The content from a QR code is the most important piece of any campaign,” Wehrs says. “Customers are showing interest in your ad, and are making the proactive decision to engage, so it is paramount that the campaign deliver on those needs. Many times, video can make a static print ad more engaging or deliver information that helps the viewer make a more informed decision. Taco Bell did a great job in offering a variety of experiences after the scan including recipe ideas, Twitter voting and a location finder. All of these features are important to different types of people looking for unique experiences.”

PUBLISHING NEWS Two Sides Kicks Off Campaign to Combat Environmental Marketing Misinformation Staff Writer , Printing Impressions . 7/11/2012

Two Sides, a non-profit industry advocate, has launched a nationwide initiative to assist major U.S. companies in developing and implementing best practices related to environmental marketing claims for print and paper.

According to Two Sides research on 94 leading companies, 50 percent of them are using unsubstantiated environmental claims to encourage consumers to switch to lower-cost electronic billing and services. “The objective of our new program is to offer our expertise at no cost to U.S. corporations who currently make environmental claims about print and paper relative to online billing and communication,” says Two Sides President and COO Phil Riebel. “Our research has shown that many companies are using negative claims that are not verifiable or factual related to the environmental impacts of print and paper, and as a result do not meet best practice guidelines for environmental marketing. “Two Sides and our 60 member companies are committed to sharing our collective expertise on the life-cycle and environmental impacts of print and paper. Our discussions to date have been very productive and the end result has been more accurate claims that are not damaging to the paper, printing and mailing sectors that provide over 8 million U.S. jobs.” Two Sides, which represents companies across the graphic communications supply chain, will assist companies to develop and follow best practices for environmental marketing, including the use of science-based and verifiable information. The non-profit conducted a similar campaign in the United Kingdom with great success. More than 80 percent of the U.K. companies approached—including well-known names like British Telecom, Barclaycard, Vodafone and EON Energy—agreed to change their messaging to eliminate misleading or factually incorrect environmental claims about the use of print and paper. “The fact is, print and paper products made in the United States have a great environmental story to tell,” Riebel says. “Paper comes from a renewable resource—trees grown in responsibly managed forests—and it’s recycled more than any other commodity, including plastics, metals and glass. The continuing demand for sustainably

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sourced paper gives U.S. landowners and families a financial incentive to continue managing their lands responsibly and keep them forested rather than selling them for development or other non-forest uses. “Thanks in great part to the sustainable forestry practices advanced by the paper and forest products industry, the volume of growing trees in U.S. forests has increased nearly 50 percent over the last half century,” he notes.

“Many major U.S. companies have implemented credible sustainability initiatives that focus on true performance measurement and factual environmental claims” Riebel continues. “However, in some cases marketing seems to take the upper hand on science. Two Sides is committed to help change this, and our experience to date shows that we’ve been successful in finding mutually acceptable solutions.”

Research Reveals Power of Print Magazine Advertising

Staff Writer , Printing Impressions . 7/11/2012

New research, launched by IPC Media, has found that magazines drive consumers toward purchase, are highly engaging and trusted, and are the medium most likely to hold consumers’ sole attention.

The study—titled “AdSense”—sought to test the effectiveness of magazine advertising and understand its role in the overall media mix. Thirteen brands, including Persil, Clarks, Howdens, Veet, Boots, Corsodyl, Ribena, Vera Wang fragrance, E45 and Batiste, across six categories were included in this collaborative project. “AdSense” evaluated two different advertisements for each brand and analysed the impact the ads had on consumers.

The study found that magazines are highly engaging, with 49 percent of respondents turning to magazines for “me time” and 45 percent to treat themselves. It also discovered that regardless of the age of the consumer magazines are trusted. The study found that:

18 percent of all magazine readers said they trust magazine advertising and amongst heavy magazine readers this rises to 24 percent, and

overall, magazine adverts are 80 percent more likely to be trusted than newspaper adverts and 125 percent more trusted that radio adverts.

“AdSense” also looked at the action that consumers took after seeing a campaign in a magazine. It found that:

46 percent of women were more likely to purchase a product that they’ve seen advertised in a magazine,

14 percent actually purchased the brand advertised,

10 percent had recommended the brand, and

nearly 1 in 5 (18 percent) had talked about the brand.

The study also found that magazines are an ideal partner for cross-media campaigns, and when magazine advertising is used alongside online or TV, brand recall and understanding is increased. Of those surveyed:

56 percent remembered the brand more after seeing both online and magazine adverts, and

61 percent were more likely to remember the brand after seeing magazine and TV advertising

Amanda Wigginton, IPC Insight director, says,“‘AdSense’ is the largest study of this kind that IPC has undertaken in over 17 years and proves magazines generate results. As well as driving purchase, our study found that magazines prompt other actions, including encouraging footfall in-store, driving traffic to brand websites, in-store trial and

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online search. The results confirm that not only is magazine advertising incredibly effective on its own, but also that it is an important element in cross-media campaigns.”

The study was conducted over a four-month period amongst a nationally representative sample of over 6,500 U.K. women aged 16-65 years.

Magazine Closures Drop Significantly in First Half 2012 Bill Mickey , Folio . 7/13/2012

First-half 2012 numbers released from online periodicals database Mediafinder.com show that magazine closures have slowed way down when compared to the same period last year. According to the firm, there were 48 shutdowns so far this year and 133 magazines launched. That compares to 74 closures in the first half of 2011 and 138 launches.

The categories with the most launches include "regional interest"—a perennially popular category to launch into—and "food." New titles in these categories include Voice of San Diego Monthly and Louisiana Kitchen.

Luxury tiles also saw continued activity. "The luxury trend continues unabated and is resulting in the resuscitation of former titles such as M, Best Life and Elle Accessories later this year," says Trish Hagood, president of Mediafinder.com.

According to Mediafinder.com, there were 21 b-to-b launches in the first half this year, including Collaborative Care and Border & CBRNE Defense. However, eight titles shut down, says the firm.

Samir Husni, founder and director of the Magazine Innovation Center at the University of Mississippi's Meek School of Journalism and New Media, and a long-time magazine launch counter, notes a similar volume of launches in the first half of this year. According to Husni, there were 100 new magazines with a frequency and 294 new SIP, annual or book-a-zines.

POSTAL NEWS

USPS must learn from mail plant consolidation woes, says OIG

Press Release , Post & Parcel . 7/9/2012

The Office of the Inspector General (OIG) found that the consolidation of a single mail plant in Maryland, close to the US capital, led to “significant” delays in mail services and a $558,000 increase in transport costs.

The investigation into the transfer of mail processing from the Frederick, Maryland, plant to the Baltimore processing plant from October 2011 to January 2012 found that delayed mail volumes increased by nearly 200% during the consolidation, to 4.6% of total mail volumes.

Customer service scores also declined during consolidation, falling by 17.2% compared to the same period the previous year in the Frederick area, and 12.2% in the Baltimore area, the report said.

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The Postal Service is set to close 48 of its 461 area mail processing plants across the United States in the next two months, with plans to close a further 92 in January and February 2013.

The consolidation effort is seeking to right-size the network, which was designed to process as much as 300bn items a year, while volumes have fallen 25% in the last five years to around 168bn a year. USPS has been losing more than $25m a day because of its dwindling mail volumes and punishing pension and healthcare payment schedules set by Congress.

Frederick audit

The OIG audited the Frederick plant consolidation after Congresswoman Shelley Moore Capito requested an investigation into concerns about mail delays and safety violations.

The OIG said the situation at the plant has improved since February, and management has now addressed many of the problems seen.

But the report criticised the consolidation process, and particularly the decision by the Postal Service to consolidate the facility during peak mail season in the run-up to Christmas.

Prior to consolidation, the Frederick plant was handling an average of 860,841 mailpieces per day. The OIG said that after the mail processing activities were transferred to Baltimore it then took 20 days to transfer 80% of the staff to the Baltimore facility because of union restrictions on relocating workers.

To comply with the union agreement, USPS had to bus workers from the Frederick site to Baltimore every day during the interim.

The OIG also found that during the consolidation, the change in transportation needs was poorly planned, with transport capacity failing to respond to the changing mail volume levels as the mail flow was redirected to Baltimore.

Trailers were only 30-50% full during consolidation, the auditors said, while unnecessary trips and late payments saw costs increase by $558,000 during the period.

USPS

Commenting on the OIG’s findings, the Postal Service agreed in principle with the report.

However, while USPS said it agreed it was “advantageous” to avoid the Christmas season in consolidating plants, it said there “may be situations evaluated as low risk where savings potential and current financial situations may dictate moving forward” during the peak season.

This year, the Postal Service has decided on a self-imposed moratorium on plant closures from September to December, partly to ensure there are no impacts on voting by mail during this year’s US elections.

USPS also conceded in response to the OIG that the Capital Metro Area operations “slipped slightly” during the consolidation process, but said the Baltimore District has now improved and proved to be 11th best in the nation for overnight First Class Mail during the three months to June 2012.

“Operations have stabilised and are achieving service levels above national target,” said the vice president area operations David C Fields.

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The USPS VP added that the Postal Service was now in the process of recovering a $485,000 overpayment made to transport contractors during the consolidation period.

Consolidation

The Postal Service is expecting to reduce operating costs by $1.2bn a year by closing the 140 mail plants over the next eight months. A further 89 mail plants could be closed in 2014 in a second phase of consolidation if USPS finances are not significantly improved, saving a further $2.1bn a year.

The consolidation is being accompanied by a change in First Class Mail delivery standards to allow the downsizing of the network. Overnight delivery of First Class Mail will now only take place locally to individual mail processing plants.

The first phase of consolidation is expected to see about 13,000 jobs lost, while the second would reduce the workforce by 28,000. USPS is hoping to downsize the workforce mostly by attrition.

USPS spokesman Mark Saunders confirmed to Post&Parcel today that between 2,800 and 3,200 mail handlers have accepted $15,000 early retirement incentives (to be paid over two years).

Separately, under the Postal Service’s plan to reduce workhours in the retail network, between 3,800 and 4,200 postmasters have also accepted incentives to retire early, Saunders said.

The Postal Service spokesman was unable to give details on the timing of the mail plant closures expected in the next two months.

A regulatory challenge against the mail plant closures is currently underway, on the grounds that USPS should or should not receive a regulatory clearance before changing its mail service standards. However, an attempt by the union at securing an injunction halting the consolidation process until the regulatory challenge is decided was rejected last Friday.

Zumbox to ramp up US operations with $10m investment Press Release , Post & Parcel . 7/10/2012

The firm that offers every home in America an alternative digital mailbox tied to their physical address raised funds from existing shareholders and also its strategic partner Computershare, the Australian-based financial stakeholder communications giant.

Although numbers are not being disclosed, it is understood that roughly half the investment in the Series C round came from Computershare, which is highly active in the US as well as Australia, where it is also partnering Zumbox in the development of its Digital Post Australia project.

The Series C funding round brings the total fundraising at Zumbox to $28m.

John Payne, the chief executive of Los Angeles-based Zumbox said the funding round would go towards expanding the business in the “rapidly” growing US market, with the expectation of adding some large new customers between now and the end of the year.

“Part of this will be ramping up our US situation considerably over the next few months,” he told Post&Parcel in an interview yesterday.

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“It’s about being able to scale for the significant mail volumes that we have coming on board. With Computershare as just our partner, we need to expand because they will be bringing large volumes of mail to us.”

Zumbox does not disclose its volumes or numbers of account holders, but Payne would say that the mailers currently using the system would in theory reach 90m out of America’s 120m households if every American household signed up for their free Zumbox account. The company first launched its digital mail services in February 2009.

In the US market, Zumbox is up against Hearst Corporation’s Manilla service, which yesterday revealed that it has just signed up its one millionth consumer, supporting mail services from 2,000 mailers. Later this year it will also see competition growing when Pitney Bowes’ Volly digital mail service has its consumer launch in the US.

Expansion

Payne said in the coming months, he was expecting the size of his company to significantly expand, with the workforce set to double from the current 35.

“We have been building out relationships (with mailers) and now those relationships are starting to come online, so we need additional technical staff and capacity in the network to manage those relationships,” he said.

David Hynes, global chairman of communication services at Computershare, said his clients were looking to tackle the rising cost of postage for paper mail, and broaden digital communications with their customers “in a user-friendly, secure environment”.

He said: “They have to do something different if they are going to reach their goals in these areas and Zumbox has solved both those problems with its Digital Postal Mail service offering.”

Australia

Along with Computershare and another partner, marketing agency Salmat, Zumbox is developing a digital postal mail service in Australia.

Payne said yesterday the Digital Post Australia project was going well despite aggressive competition from digital mail rivals Australia Post, and that the service could be launched in September or October.

“We believe that it will be live in the third quarter with a system that will be available to all Australian citizens,” he said.

RETAIL NEWS Target, Neiman Marcus design a new kind of partnership Press Release , Retailing Today . 7/11/2012

Target and Neiman Marcus have joined forces for a unique partnership that will bring a limited-edition holiday collection to both stores beginning Dec. 1. The collection will also be available online at Target.com and NeimanMarcus.com.

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“Target and Neiman Marcus are known for charting new terrain, and by joining forces for the holiday season, we’ve set the stage for a redefining moment in retail,” said Gregg Steinhafel, chairman, president and chief executive officer, Target. “This collaboration is unlike anything Target has done before, and we are confident our guests will be thrilled with this extraordinary collection that features some of America's most preeminent designers.”

The Target + Neiman Marcus Holiday Collection includes an eclectic and diverse mix of more than 50 limited-edition gifting products. The collection ranges from $7.99 to $499.99, with most items less than $60. Designers who created pieces for the collection include Alice + Olivia, Altuzarra, Carolina Herrera, Derek Lam, Diane von Furstenberg, Jason Wu, Judith Leiber, Lela Rose, Marchesa, Oscar de la Renta, Proenza Schouler, Rag & Bone,Tory Burch and Tracy Reese.

“Neiman Marcus and Target share a passion for great design and delighting customers in new and unexpected ways,” said Karen Katz, president and chief executive officer, The Neiman Marcus Group. “We are thrilled to be collaborating to offer a spectacular and special collection of one-of-a-kind items for the holidays. These will be the 'must-have' gifts, whether you are a loyal Neiman Marcus customer, a devoted Target guest or a fan of American design.”

To celebrate the unprecedented partnership, Target and Neiman Marcus are donating a total of $1 million to the Council of Fashion Designers of America (CFDA). The donation underscores the retailers' long-standing commitment to fostering design talent and recognizes the 24 designers, all of whom are members of the CFDA.

“I can think of no better finale to CFDA’s 50th Anniversary celebration than through this extraordinary designer collaboration,” said CFDA President Diane von Furstenberg. “As designers, creativity is our best gift, and with the generous support of Neiman Marcus and Target, we are happy to have created specially designed products as a thank you to share with our consumers and friends.”

Walgreens teams with app developers on photo printing Michael Johnsen , Chain Store Age . 7/12/2012

Walgreens on Tuesday extended its innovation in mobile technology with the introduction of a developer portal that allows third-party software developers to integrate the Walgreens QuickPrints software development kit, enabling photo printing directly from iPhone and Android mobile devices.

“Our new QuickPrints SDK enables third-party software developers to tap Walgreens Web services, building a broad selection of apps that deliver our convenient store capabilities to more customers,” Walgreens e-commerce chief technical officer Abhi Dhar said.

The launch of the QuickPrints SDK marks the first time that Walgreens has provided an open interface for third-party application developers to integrate Walgreens in-store services. QuickPrints, currently available in the Walgreens iPhone and Android applications, allows mobile users to print photos directly from their phone in about an hour.

"With almost 30% of photos today taken on smartphones and the popularity of photo applications growing, the opportunity for consumers to benefit from the convenience of printing their memories to Walgreens through a variety of photo apps is tremendous,” said Jasbir Patel, senior director of Walgreens photo.

The QuickPrints SDK already has been adopted by GroupShot, Kicksend, Pic Stitch, Pinweel and StillShot, with more partners expected to join the program in the coming weeks. Walgreens also is partnering with Aviary, a digital

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photo-editing platform currently used by more than 1,200 app developers and 8 million consumers, to leverage its growing group of photo application partners.

To encourage mobile developers to include new features using the QuickPrints SDK within their application, Walgreens will host its first Mobile Photo Hack Day event Aug. 11, at its downtown Chicago e-commerce office at 36 S. Wabash Ave. The event will provide developers the opportunity to meet, collaborate and showcase their creative implementations of the QuickPrints SDK in their applications.

Developer demos will be reviewed by a panel of top industry professionals with a total of $5,000 in cash prizes available to the top developer integrations.

Myers Group installing QThru mobile platform for smartphone checkout Marianne Wilson , Chain Store Age . 7/9/2012

Myers Group plans to install the QThru mobile platform, which enables shoppers to scan items with a smartphone as they shop, in its supermarkets. The company has been testing the system for six months at its IGA Ridge Supermarket in Snoqualmie, Wash.

"We wanted to see how our customers embraced this alternative technology and it was enormously popular,” said Tyler Myers, president of the Myers Group, Clinton, Wash., which owns and operates grocery stores, hardware stores, and gas stations, as well as oversees shopping center development.

With the technology, a retailer's products and pricing are synchronized with the QThru cloud. Customers can then download the QThru smartphone app and start shopping.

To complete the checkout process shoppers enter a previously stored passcode and scan a QR code at a checkout kiosk, which completes the transaction from their phone. QThru uses a cloud-based, fully PCI-compliant, secure storage facility to protect payment and personal information. A receipt is generated from the kiosk, which is highlighted in a different color and is reviewed by a store employee at the door.

“QThru also allows us to offer added value to our customers through exclusive announcements, events and coupons, and we plan to install it now at all of our grocery and hardware,” Myers said.

QThru also allows us to offer added value to our customers through exclusive announcements, events and coupons and we plan to install it now at all of our grocery and hardware stores."

What will they think of next?

Press Release , Retailing Today . 7/12/2012

Target has come up with some clever buzz-building brand activities over the years and a new initiative underway in Seattle is no exception.

In anticipation of the opening of the retailer’s first CityTarget location in downtown Seattle, the birthplace of Starbucks, Target developed an oversize coffee kiosk from which it began dispensing free coffee on July 11. Initially, the kiosk was located across the street from the new store at 2nd Avenue and Pike, but it will move to

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other locations such as Westlake Plaza and the Convention Place Metro bus stop up until the store opens on July 29.

Also slated to open that day is the first CityTarget location in Chicago and Target employed a different awareness generating strategy in that market. Last month, in conjunction with the city’s Bike to Work Week Target sponsored free spinning classes in a downtown park. The Target brand was integrated into the scene as the circular shroud around the pedaling mechanism on the stationery bikes featured the Bullseye logo.

Retail’s role players

Kevin Woodward , Internet Retailer . 7/13/2012

While it’s true that catalogers ranked in Internet Retailer’s 2012 Second 500 Guide trail other merchant types in e-commerce sales growth, it’s also true that some of these smaller catalog retailers consider their e-commerce operations successful. Much of that success can be attributed to the natural interplay among catalogs, stores and the web, they say.

In 2011, companies that sell predominantly through catalogs and call centers averaged online sales growth of 10.8%, behind the Second 500 average of 17.7%. They trailed retail chains, which averaged 18.7% in growth, and web-only and consumer brand manufacturers, each averaging about 18.4% in growth last year.

But approximately one-third of the 39 catalogers in the Second 500 found ways to generate double-digit online sales growth in 2011. Sporting goods retailer Mack’s Prairie Wings Inc. (No. 525), for instance, is growing online because its three main sales channels play well together, says Cheryl Raney, chief financial officer at Mack’s Prairie Wings, a retailer of hunting gear and accessories. The merchant’s 27.1% web sales growth in 2011 ranks among the top five gainers among catalogers in the Second 500.

“We find that catalogs, bricks-and-mortar stores and our web site drive each other,” Raney says. “Our web site traffic jumps when we mail a catalog or send an e-mail. We also see increases in traffic on the web site as well as in-store when we advertise in-store events.”

Not to be overlooked, the bricks-and-mortar store also has advantages as a sales channel, she says. “Our situation is unique in that some of our items that we sell in the store, such as rifles and shotguns, we can’t sell online,” she says. “We can send e-mails advertising them, but the customer must come into the store to buy them. That means our bricks-and-mortar store will always be important to us. But we get a significant portion of our sales from e-commerce. Both channels really drive each other, so we will continue to grow both channels.”

Catalogers are finding new ways to drive sales as they compete for shoppers’ attention in multiple channels. Content plays an important role for retailers such as eco-friendly apparel merchant Soul Flower. “Now, with so many different ways people can find you, it’s more important than ever to provide relevant content and an engaging site for prospective customers,” says Mike Shoafstall, CEO and chief financial officer at Soul Flower (No. 916). Soul Flower’s e-commerce sales grew by 11.1% in 2011.

As Raney says, “Catalogs are still one of the best means for driving traffic to the web site. Every year, web sales increase and call center sales increase, but the e-commerce channel increases are always bigger than the call centers.”