The Whispers Blog
Arkansas' breaking business news blog, with news and commentary from the Arkansas Business staff.
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Just days before Black Friday, the world's largest retailer has lost its chief merchandising officer for U.S. stores.
Here's what The Wall Street Journal reports:
The chief merchant plays a key role at any store chain, deciding on retailing strategy and choosing which products to promote to drive sales. Along with the rest of Wal-Mart's U.S. division, Mr. Mac Naughton has struggled to boost sales during two straight years of declining shopper traffic.
Wal-Mart did break a seven-quarter streak in the third quarter of 2014 to post a 0.5 percent increase in revenue at stores open at least a year.
In a memo to company associates Tuesday, CEO of Wal-Mart U.S. Greg Foran did not name a successor, citing an "opportunity to get closer to the merchandising organization."
Mac Naughton was named chief merchandising officer for U.S. stores in 2011. He joined Wal-Mart in 2009, as chief merchandising officer for Wal-Mart Canada. He was named executive vice president for merchandising for Wal-Mart U.S. in 2010.
They've made their list and checked it twice. Consumer Reports has released its annual Naughty & Nice List, and it features a couple Arkansas-based companies, one on each list.
On the naughty side was Dillard's Inc. of Little Rock. Here's what Consumer Reports had to say:
The department store won't give price adjustments as a matter of policy, for either online or in-store purchases.
Wal-Mart's warehouse club has a novel guarantee on its perishables — fresh meat, produce, and baked goods. If members don't love the food, the chain will refund double their money or exchange the product and still refund the purchase price.
This was the fifth year Consumer Reports has released its Naughty & Nice list ahead of the holiday shopping season, and this wasn't the first time an Arkansas-based company has been included.
Wal-Mart made the list last year on the nice side for bringing back its layaway program.
For more on the 2014 list, click here.
One of the investors of Dillard's Inc. of Little Rock is advising the company to split into a publicly traded real-estate investment trust and an operating company.
The Wall Street Journal reports that Marcato Capital Management LP made the push after Caesars Entertainment Corp. proposed a similar split:
Marcato, which has a 4.9 percent stake in the Little Rock-based company, said it thinks Dillard's could "unlock tremendous value" were it to pursue such a strategy, noting that in recent months several major companies with significant real-estate holdings have disclosed plans to consider a REIT structure in their strategies.
Dillard's shares climbed 8.5 percent in recent trading.
And as of this writing (around noon), Dillard's shares (NYSE: DDS) are up about 11 percent.
You can see Marcato's presentation on a Dillard's REIT right here (PDF).
There was no comment from the company in the Wall Street Journal article, which stated a spokesman was not "immediately available." Dillard's declined comment when contacted by Arkansas Business.
You'll remember that in 2011, Dillard's announced plans to create a REIT as a subsidiary of the company. In an Oct. 6, 2011 filing, Dillard's said it created the REIT "in order to enhance its financial flexibility by providing additional sources of liquidity." The company transferred about $135 million of assets into the REIT.
Right now, Dillard's — a $6.5 billion company — operates 278 Dillard's department store and 20 clearance centers in 29 states.
We've been hearing a lot about REIT's in Arkansas this year.
Windstream Holdings Corp. of Little Rock announced over the summer it would spin off certain assets, mainly its fiber and copper network, into a publicly traded REIT in an attempt to lower its debt by $3.2 billion.
Meanwhile, the Wall Street Journal reports that Sears Holding Corp. is also looking into spinning off as many as 300 of its 712 company-owned stores. The Sears case is among several Marcato cites in its presentation urging Dillard's to spin off its own REIT.
The ARK Challenge startup accelerator last week concluded its fourth installment, and first in Little Rock, with Demo Day presentations of company pitches held inside the Clinton Center's Great Hall.
Spencer Jones and his Little Rock venture Jones Innovative Medical Solutions was the winner of $150,000 in additional investment. The seven teams selected for the Little Rock cohort of the ARK received $20,000 in seed funding to develop their products.
The ARK amounts to a three-month startup boot camp that aims to attract out-of-state ventures to Arkansas, plus retain and develop promising Arkansas ventures.
The ARK's first two installments in Fayetteville were federally funded, while another Fayetteville edition earlier this year and the Little Rock run were funded by the state and private investment.
Check out Arkansas Business coverage of Demo Day here.
Above, videographer Barry Deere takes us look the ARK's fourth installment.
Little Rock Soirée, our sister publication, has news that The Hop Diner is closing its doors after seven years of business.
The last day of business will be Nov. 26. The Hop, known for its burgers and shakes, moved downtown to the corner of Markham and Scott in 2008, after its lease ran out on Cantrell Road. When it made the move, it left two tables and four chairs for a sit-down restaurant in the River Market.
In its place will be At the Corner, run by new ownership. The new restaurant, owned by Kamiya Merrick, is expected to open around New Year's.
At the Corner will serve the Americana favorites like burgers, salads, fries and onion rings. The modern diner will be open for breakfast and lunch, and will also feature daily chalkboard specials.
But here's one thing on the menu we're particularly excited about: poutine. What is this dish, you ask? It's only fries, cheese curds and gravy; nothing but a pure, heaven-sent delight.
For more, check out Soirée's story here.
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