Spots N Dots
The Daily News Of TV Sales
April 27, 2016
STUDY: MORE DEPT. STORES SHOULD CLOSE
BASED ON SQUARE FOOT PRODUCTIVITY
We’ve been hearing from retail experts for many years that there are simply too many stores in the United States, but now a new study from real estate research firm Green Street Advisors quantifies that oversupply for traditional department stores. And Greet Street finds there are about 800 too many department store currently open.
The analysis is based on the productivity the department store segment had a decade ago. In 2015, department stores on average produced $165 in sales per square foot of space, which is 24% below the same measure in 2006. And during that decade, despite all the closings we’ve announced in the past few years, the physical footprint of department stores has shrunk by just 7%.
A senior analyst at Green Street told The Wall Street Journal “Department stores used to be a great catchall for different brands, but today many of the brands have stores of their own, and shoppers can also find them online.” On a percentage basis of stores needed to close to regain the productivity of a decade ago, Sears—despite so many closing in recent years—is still the one with the biggest need to close more. Green Street’s analysis suggest Sears needs to close another 300 stores, about 43% of its current roster. But J.C. Penney is seen to need to close about 320 stores, 31% of its current locations. The chain that’s closest to achieving 2006 productivity is Macy’s, which Green Street suggests should close 70 stores, just 9% of its current count. In between are Dillard’s, 60 stores, 20%; Bon-Ton, 40 stores, 15%; and Nordstrom, 30 stores, 25%.
Of course, the retailers are unlikely to agree with the analysis. Penney’s CFO had told analysts a while ago, “There’s a misperception out there that when we close a store that business transfers online…When we close a store, particularly in a small market, we see out dot-com business go down.” And a spokesman for Nordstrom told the Journal that all its stores are profitable and closing a store “is not our normal practice.”
The paper also suggests that it may be unrealistic to think that the stores could ever return to historical levels of sales or profits given all the changes in retailing in recent years. And while much of the lost business at physical stores has gone online, some retailers find they make less money selling online than they do at bricks-and-mortar stores. That’s because with the internet making comparison shopping so easy for consumers, online retailing has become very price-oriented with discounts, and in many cases free shipping, being necessary to close a sale.
ADVERTISER NEWS
Home delivery of pizza is actually declining (down 3% between 2012 and 2015 according to research firm The NPD Group) and that’s being attributed to the explosive growth of home delivery for food from other types of restaurants, which NPD says is up 33% in those same three years. Sandwich format restaurants have been showing the best growth, now up to a 10 share of delivery traffic……In another move to help to re-build its traffic, Chipotle will have a buy-one-get-one offer for anyone who works at a school on May 3, Teacher Appreciation Day…… Automotive News says local Volkswagen dealers are still looking for answers to what their roles will be when VW starts the fixing or buybacks of vehicles caught up in the emissions scandal. The problem is there’s a court-Imposed gag order until June 21, when VW and the government will make public the details of their settlement plan……Tractor Supply Company had a strong fiscal first quarter with total sales up 10% and same-store sales up 4.9%. Most of that gain came from an increase of 4.2% in transactions, with the average ticket up less than a percentage point……Total sales for Ethan Allen were up 10%, and the company’s retail stores reported an 18.6% increase in comp store sales……Quarterly numbers were down across-the-board at Office Depot, which blames the protracted uncertainty of a proposed takeover by Staples for a “substantial disruptive impact on our business.” The company closed nine more stores in the latest quarter and expects to close at least another 50 this year……With strong sales of Jeeps and Ram trucks in the U.S., Fiat Chrysler total corporate profit rose more than fifteen fold versus last year……Procter & Gamble “organic” sales, which eliminates acquisitions, divestments, and currency fluctuations, were up 1% last quarter on a percentage point increase in pricing but a 2% drop in volume……Whirlpool is another multi-national company hurt by weakness abroad. North American sales were up 2.9% in the latest quarter but factoring in other regions total sales were off by 4.7%......Hershey is buying the barkTHINS chocolate brand and The Wall Street Journal says the company is trying to move towards providing products perceived as healthier. Hershey will also start to market Krave protein bars this summer, made from dried meats and other ingredients such as mangos and cranberries. Hershey reported decreases in sales and profits in its latest quarter, with sales of candy, mints, and gum all below expectations.
NETWORK NEWS
The finale of the real presidential race is months away, but ABC is getting ready to wrap of the season of Scandal with each fictional presidential candidate preparing to announce their running mate. The season finale of Scandal airs Thursday, May 12, at 9:00 pm (ET). ABC also has the season finale of Quantico coming soon—on Sunday, May 15, at 10:00 pm (ET)……Sunday’s season finale of Bounce TV’s first ever original drama, Saints & Sinners, reached 1.4 million non-duplicated viewers as the most watched show in the network’s five-year history……Sundays' Golden State Warriors-Houston Rockets Game 4 on ABC was the most-watched first round NBA Playoffs game on any network in 14 years (since 2002), according to Nielsen. The broadcast averaged 7,238,000 viewers…Presenters for the 2016 American Country Countdown Awards Sunday, May 1, at 8:00 pm (ET) on FOX will include
Paula Abdul, Terry Crews, Cat Deeley, Maddie & Tae, Scotty McCreery, Jennifer Nettles and Dwight Yoakam. In addition, rising country star Chris Janson will perform.
MONDAY RATINGS
Once again The Voice on NBC dominated the young demo on Monday night, while ABC had the most viewers, led by Dancing with the Stars. The Nielsen overnights put NBC at an average 1.9 rating in Adults 18-49 and 5.2 in Households, with an average audience of 8.287 million. ABC was at 1.5 18-49, 6.4 HH and 9.892 million; CBS, with the season finale of Scorpion, 1.3 18-49, 4.9 HH and 7.713 million; FOX 0.9 18-49, 1.9 HH and 2.935 million; Univision 0.8 18-49, 1.1 HH and 2.073 million; Telemundo 0.6 18-49, 0.8 HH and 1.385 million; and The CW 0.4 18-49, 0.6 HH and 0.891 million.
WEEKLY RATINGS
For Week #31, April 18.24, CBS was at 1.2 18-49 and 5.0 HH; NBC 1.1 18-49 and 3.3 HH; ABC 1.1 18-49 and 3.1 HH; FOX 1.0 18-49 and 1.9 HH; Univision 0.7 18-49 and 1.2 HH; The CW 0.5 18-49 and 0.9 HH; and Telemundo 0.5 18-49 and 0.7 HH.
SYNDIE SNIPPET
Returning to Live with Kelly and Michael for the first time since being blindsided with the news that Disney-ABC was moving her co-host to Good Morning America, Kelly Ripa told viewers that the past few days have brought better communication and respect in the workplace. “Apologies have been made, and the best thing to come out of all of this, you guys, is that our parent company has assured me that ‘Live’ is a priority,” she said on air. Ripa also said she was thrilled for Michael Strahan. “This is a tremendous opportunity and I couldn't be, and we couldn't be, prouder of you.”
NEXT APPLIANCE SALES LEADER
With Sears Holdings announcing yet another round of closings of Sears and Kmart stores, what will happen if Sears falters in its strongest category—leading all retailers in sales of home appliances? Having slipped from a one-third market share a decade ago, Sears is down to about a quarter share and slipping. Second place Lowe’s is gaining share, as is Home Depot—and, smelling blood in the water, J.C. Penney recently started selling appliances in some of its stores.
Writing her regular column for Forbes, Pam Goodfellow of Prosper Insights & Analytics sees Lowe’s as the likely successor to Sears. Prosper’s survey of shopper preferences for appliances had Sears still on top at 20.9%, with Lowe’s at 14.3%, Best Buy 10.9%, Home Depot 9.1% and Walmart a distant 5th at 6.7%. She notes that Lowe’s has been steadily closing the gap with Sears in recent years.
“Our insights indicate that Gen X and Boomers have an affinity for Lowe’s in particular,” she wrote, while noting that Millennials are slower to warm to the big box home improvement chain. Nonetheless, Lowe’s is gaining ground with Millennials as a “shop first” store for appliances—but so are Best Buy and Home Depot.
Another reason why Lowe’s is poised to become #1 in appliance sales is that Prosper’s research already ranks it #1 in loyalty and affinity among appliance shoppers. Sears ranks second.
ACCOUNT ACTIONS
McDonald’s has put its U.S. creative ad account into review, inviting all three big holding companies—Omnicom, WPP and Publicis—to have their shops pitch for the business. The $800 million-plus account has been handled for decades by Omnicom’s DDB and Publicis’ Leo Burnett. The media account, handled by Omnicom’s OMD, is not part of the review……Ad Age says Delta Air Lines has selected Omnicom’s PHD as its new media agency, succeeding Publicis Groupe’s Digitas. Delta spent $53 million on U.S. media last year, per Kantar……MediaPost reports that Toth + Co, Boston, has been named the first ever Agency of Record for the Maurices department store chain, owned by Ascena Retail Group. The work had previously been handled on a project basis……Gildan appointed O’Keefe Reinhard & Paul, Chicago, as AOR for the company’s branded apparel unit, with plans to roll out a new campaign featuring The Voice coach Blake Shelton.
AUTOMOTIVE UPDATE
Bloomberg reports that Volkswagen AG moved ahead of Toyota Motor Corp. in Q1 worldwide sales—not because of VW’s diesel scandal abating, but because Toyota had to close some of its Japanese factories temporarily due to earthquakes. Toyota’s global sales fell 2.3% to 2.46 million vehicles, while VW’s rose 0.8% to 2.5 million……Mercedes-Benz USA is paying dealers as much as $1,775 per month for recalled vehicles with Takata airbags that are currently under a stop-sale order……Ford Motor Company announced investments of $1.6 billion to upgrade two of its manufacturing facilities in Michigan and Ohio, and creating or retaining 650 hourly jobs in the United States. The $1.4 billion investment in Livonia Transmission Plant and $200 million investment in Ohio Assembly Plant are part of the $9 billion commitment the company made in the 2015 UAW-Ford collective bargaining agreement to continue investing in its U.S. plants.
APPLE TAKES A TUMBLE
iPhone sales fell for the first time ever as Apple reported its fiscal Q2 results. Wall Street was disappointed as revenues declined for the first time since 2003—down 13% to $50.6 billion—and profits dropped 22.5% to $10.5 billion.
AVAILS
WAVY-TV (NBC) and WVBT-TV (FOX) in Norfolk, VA seeks a results-driven Account Executive. This experienced sales professional needs a winning attitude and desire to succeed! Managing agency business, new business generation, client relationship-building, proposal preparation and presentation to a diverse customer base. Excellent communication, customer service, and time management skills; a people-person responsible for developing large-scale new business clients and growing digital revenue! Minimum 2 years media sales experience. No calls. CLICK HERE EOE/M/F/V/D.
SALES COORDINATOR, Tampa, FL-FOX O&O WTVT. This person assists the sales dept. with the processing of client orders, servicing of accounts, creation of client presentations with additional duties as assigned. The ideal candidate is highly motivated; extremely detail oriented, possesses excellent time management skills, and is capable to maintaining a positive attitude in a fast paced environment. A perfect opportunity for a recent college graduate looking to enter the exciting world of media sales. We offer great medical benefits package and growth opportunities. CLICK HERE to apply now. EOE/M/F/Veteran/Disabled.
Entravision’s Univision/Unimas affiliate (WFDC/WMDO) in Washington D.C. is seeking experienced account executives for its fast-growing Spanish- language television station. The AEs will be responsible for representing Entravision Communications DC media properties, and calling on local advertisers and advertising agencies in a professional manner. Prefer one year experience in sales but not required. Background in television, radio and/or Digital sales strongly preferred. Qualified applicants send resume to Erin Voden, VP of Sales at e-mail: . WFDC/WMDO is an equal opportunity employer.
Great opportunity to be the General Sales Manager for Cox Media Inc., in Rhode Island. The GSM is responsible for managing the advertising sales function for Cox Media to drive revenue and increase market share. The GSM develops and implements strategic plans to guide the sales departments to successfully attain revenue goals, and leads, develops and manages the local, national, and new media sales staffs, and potentially inventory. 10 years’ experience in related field required. CLICK HERE for more info or to apply. EOE.
WRCB TV in Chattanooga, TN is searching for an Account Executive to sell and service accounts on WRCB TV, Antenna TV and wrcbtv.com. At least one year of television, radio or equivalent sales experience required. Must be a focused self-starter and possess excellent communication, presentation and organizational skills. Resumes only to . WRCB is an Equal Opportunity Employer.