About three weeks after a six-alarm fire devastated a plumbing-supply warehouse in Gilbert, Farnsworth Wholesale Co. has announced it will relocate its headquarters to an existing building near Falcon Field in Mesa.
Farnsworth Wholesale eventually wants to rebuild the Gilbert warehouse off Baseline Road between Arizona Avenue and McQueen Road, where the June 18 fire caused an estimated $8 million in damage, but that could take six months to a year, Vice President Jack Stapley said.
Once rebuilt, the Gilbert facility likely will function as a branch for the business' plumbing arm and might become home to one of the company's other two divisions, either waterworks or heating and cooling. The company's plumbing "will call" center also will be moved back to Gilbert, Stapley said.
The company will use its insurance money to pay for the reconstruction, Stapley said.
Meanwhile, Farnsworth Wholesale will begin moving into a 30,000-square-foot building next to Bush Elementary School near Higley and McKellips roads in Mesa beginning Monday, company executives wrote in a letter to customers.
While the fire did not wipe out the company's office building in Gilbert, the facility was too small for the volume of business it was doing, the letter says. "Our new Falcon Field location will give us much more space to be better organized and much more efficient than we were in the past," the letter adds.
For now, the company has a 12-month lease for the building but wants to buy it outright, Stapley said. If the company secures permanent ownership, headquarters will remain at the Falcon Field site, he said.
"The good news is that we are well on our way to a recovery that will make us better and stronger than before the fire," company officials told customers.
Farnsworth Wholesale employed about 80 workers in Gilbert before the fire and also operates locations in Peoria and Mesa. The business is a sister company to several other ventures by Southeast Valley businessman Ross Farnsworth Sr.
Last month, Farnsworth told The Republic he feels blessed that the fire wasn't worse and vowed to rebuild the business.
In the letter to customers, company officials say the cause of the fire, the largest in Gilbert's history, is still "inconclusive," although the "current professional thinking" has identified a discarded cigarette as the source.
Fire officials believe someone threw a cigarette into an area where there were cardboard boxes containing fiberglass bathtubs. Employees tried to put out the flames with extinguishers, but the fire spread so quickly that everyone was evacuated within five minutes, one employee said.
No charges are planned because there is no evidence the fire was intentional, a fire official said last month, adding that the fire occurred in a public area and it is unclear if it was started by an employee or a visitor.
Republic reporter Jim Walsh contributed to this article.
Euro Optics are one of the leading sunglasses suppliers - News Broadcast
The requirement for sunglasses, reading glasses and optical frames continues to increase dramatically for various reasons. The plethora of styles and designs now available offers the consumer an almost limitless range of options to choose from. Technology and consumer fashion needs combine to ensure that consumer desire is fulfilled in every way. When it comes to the trade purchasing at wholesale prices of eyewear, one particular company has become a leading provider and importer of a huge range of reading glasses and sunglasses. That company is Euro Optics whose website can be found at www.euro-optics.co.uk.
For traders of all types, purchasing their products at trade prices ensures a healthy profit. When it comes to sunglasses and reading glasses, Euro Optics are one of the most popular sunglasses suppliers, and have gained an enviable reputation by virtue of their impressive range of options offered and their outstanding levels of customer service which are always received irrespective of the amount spent.
With really low minimum order values for reading glasses and optical frames and for all other products, Euro Optics, the eyewear wholesale specialists offers an impressive and viable option for trade buyers looking for access to impressive prices without having to outlay large amounts due to high minimum order values. Euro Optics currently supplies a wide and diverse array of companies and individuals from multi chain stores through to independent shops, market traders as well as eBay traders. In addition, for those who are looking for unbranded products as well as their own specialised line of eyewear, this leading wholesale sunglasses supplier offers all of this and more. In fact, all their sunglasses are manufactured to the relevant European CE standards with full UV 400 protection on the sunglasses lenses.
For those who are looking for wholesale sunglasses, reading glasses as well as optical frames, all at trade prices, then a visit to www.euro-optics.co.uk, the home of one of the UK’s leading importers and distributers, will provide a glittering array of options at astounding prices.
For further information on wholesale polarized sunglasses visit http://www.euro-optics.co.uk
Google Compared To Drug Dealer For Google Shopping Strategy - WebProNews
Google Shopping has been at the center of a lot of controversy since the company announced it in May. The paid inclusion approach has brought up Google’s old “do no evil” mantra, the FTC has been called upon to scrutinize the entire search industry on disclosure of paid results (which Google says it would support), and a lot of people are up in arms about Google removing listings for weapons.
Do you think Google Shopping is good or bad for e-commerce? Let us know in the comments.
The simple fact that Google has moved to a paid model (away from the free listing model of Google Product Search), however, is what really has a lot of merchants angry.
David Scarpitta, CEO of online retailer DasCheap, has gone so far as to issue a press lease comparing Google to a drug dealer, and indicating that he’s been forced to raise prices on his site.
“I hate to put it like this, but Google is acting kind of like a drug dealer,” Scarpitta said. “They let you try it free, then get people hooked and dependent upon it, and then you are forced to pay in order to survive as normal.”
“It’s a very sad thing,” he added. “Even here at DasCheap! we had to raise some prices in order to compensate for these costs. As so many web users use Google for accurate and instant shopping information, it has become a second nature to search there so we had no choice but to pay if we want to show our discounted items to the masses, otherwise we wouldn’t be able to show our discounted products to online users if we don’t pay. Essentially this forces us to raise prices across the board. So in essence, the finger points back to Google for the raise in retail prices. And even more unfortunate for other online retailers that can’t afford the extra expense will now lose an important revenue stream, that may put some companies in a bad state.”
While it’s certainly a good idea for a merchant to be easily found in Google, I’m not sure about the part about not having a choice. As sites who have relied on Google for the bulk of their traffic in the past have learned upon being hit by algorithm updates, it’s best not to put all of your eggs in one basket, and there are other ways to generate traffic to your site.
Apart from competing search engines, social media comes to mind, and can be effective with the right strategy. It’s also entirely possible to rank in the organic search results with the right strategy, without having to pay for a Shopping listing. People do shop from the regular results too.
One CEO told us that he sees Google Shopping as a very good thing for e-commerce. “We think this is the right direction for merchants and Google,” Amit Kumar, CEO Of marketing app provider Lexity, told WebProNews in a recent interview. “While the free Google Product Search program was great for some SMB retailers, in general the results were hit or miss – there was very little predictability on whether products would show up in search results, how often, and detailed statistics were not available.”
“On the other hand, our customers that participated in paid advertising through the Product Listing Ads program have much more visibility into how their products are faring, and have much more control (for instance, the ability to control which products get promoted more aggressively, which products should not be shown in Google’s search results, etc),” he added.
“In addition, having multiple potential display units showing essentially the same kind of products was very confusing to the users, and also to merchants who were trying to manage their presence on search results,” said Kumar. “Having all of these consolidated into one helps brands manage their presence better, and users get a better shopping experience.”
We’ve heard from plenty of frustrated merchants who express views more along the lines of Scarpitta’s. A WebProNews reader recently commented, “Many small companies have used Google ( Froogle, Base, Shopping ) as their resource for free advertising of their products. This is just an attack on those small companies and only allow companies who can afford to pay to do so.”
“I’ve always respected Google as a company for the great new technologies that they have implemented over the years, however I feel that there is a certain amount of greed here that will not only affect the grass roots retailer themselves but overall the consumer as well,” said Scarpitta. “Despite this grim scenario, we are going to do the best we can for our customers to continue to offer them the lowest prices and the best service in accordance with this new regulation in place. I hope others can do the same.”
Google says ranking in Google Shopping will be based on “a combination of relevance and bid price,” the same as Product Listing Ads today, and those who want to stand out can participate in Google’s Trusted Stores program and/or use special offers.
Google Shopping might be able to help out local businesses. Google certainly thinks it can. At its annual developer conference a couple weeks ago, the company hosted a session on empowering local shopping through Google shopping.
“More and more of consumers research online first before going to a local store to purchase a product and we can expect this trend to continue to rise,” the company said. “Local shopping enables merchants to declare product price and availability per local store.”
In the session, Google discusses how to set up and manage local shopping accounts in the Google Merchant Center, and how to ue the Content API to upload local products and do live inventory updates.
The transition from Google Product Search to Google Shopping is supposed to be complete in the fall. Merchants who create product listing ads by August 15% can get a 10% monthly credit of their total Product Listring ad spend through the end of the year, and current Product Search merchants can get a hundred dollar AdWords credit toward the ads if they fill out a form before that date.
Marks & Spencer hits trouble as women shoppers turn noses up at summer collection - Daily Mail
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Casual range: Sales of women's tops struggle amid heavy discounting and wet weather
Venerable retailer Marks & Spencer is feeling the chill on the High Street as grim shopping trends are compounded by stock buying blunders.
The firm blamed stock problems for its worst clothing and general merchandise sales performance for more than three years.
Head of general merchandise, Kate Bostock, is stepping down and former Debenhams chief Belinda Earl is being parachuted in as style director, as sales of clothing basics like women's casual tops were hit by heavy discounting and wet weather.
The retailer, which has more than 700 stores in the UK, suffered a 6.8 per cent slump in non-food business in the 13 weeks to June 30, revealing weakness unmatched since the quarter to December 2008.
Despite high-profile adverts featuring celebrities such as Gary Barlow, overall UK like-for-like sales fell 2.8 per cent - also the worst performance for M&S for more than three years - even though food sales rose 0.6 per cent.
The dire sales will ramp up pressure on chief executive Marc Bolland at M&S's annual meeting today amid expectations that many shareholders will vote against a pay package that could earn him as much as 6million.
The retailer is now worth less than rival Next on the London stock market, while online fashion store Asos added to the strain on M&S by reporting a better-than-expected 8 per cent rise in UK sales today.
Unsold stock: Shoppers have shunned M&S seasonal ranges, meaning its summer sale could be brought forward
The latest figures will also add to fears that Marks, the UK's biggest fashion retailer, is losing its grip on the key womenswear market, with some analysts reporting that its ranges are off-trend.
Independent retail analyst Nick Bubb said: 'M&S's problems in womenswear go far beyond the weather as they are clearly losing market share.'
CHANGE AT THE TOP
Belinda Earl, the retail guru charged with revitalising Marks & Spencer's clothing offer is best known for her role at the helm of Debenhams a decade ago.
In a retail career spanning more than 25 years, Belinda Earl worked her way up to become chief executive of the department store chain, leaving in 2003 when the company was taken over in a 1.7 billion offer from a private consortium.
More recently, Earl teamed up with fashion entrepreneur Harold Tillman at Aquascutum and Jaeger, although their bid to revive the luxury brands was hit by tough trading conditions in the wake of the financial crisis.
Aquascutum collapsed into administration earlier this year and Jaeger was sold to a private equity firm owned by British venture capitalist Jon Moulton for 19.5million.
Earl, who left Jaeger earlier this year after taking sick leave, is set to take up the newly-created role as style director at M&S from September but will only work two or three days a week.
M&S wares are advertised by celebrities such as Gary Barlow and Myleene Klass but there is a feeling that recent lines have been 'off-trend'.
However, Marks is confident in Earl's 'unique insight into British style'.
He added that Kate Bostock had been made a scapegoat as Mr Bolland fought for his job.
John Ibbotson of consultant Retail Vision warned that unsold sun hats and summer dresses could become a millstone and force M&S to bring forward their seasonal sales to mid-summer.
Bostock's role will be taken by John Dixon, who has been with the company for 26 years and is seen as a potential successor to Mr Bolland.
Ms Earl, who will work for the chain for two to three days a week, left Jaeger earlier this year after a period of sick leave.
She was chief executive of Debenhams between 2000 and 2003.
The stock issues were a continuation of the problem M&S reported in April when it did not buy enough of some of its best selling lines, and said it could have sold more than double the number of pump shoes.
However, Marks is confident that it is taking the necessary steps to address the poor performance of its non-food business.
As well as the shake-up in the management team, it has improved buying and merchandising and believes its stock will be back on target in time for the autumn-winter season, which will be launched in stores later this month.
Sales of coats, jackets and hosiery did well in the bad weather but the fall in casual wear business hurt the firm because it traditionally makes up a large proportion of sales at this time of year.
Food sales have been boosted by the celebrations surrounding the Diamond Jubilee, helped by launching its Simply M&S budget range and new products including 200 British lines.
The group also said the roll-out its new design of stores was on-track, after it admitted its outlets were difficult to shop in.
Shares in M&S were 4.1p higher at 325.1p in early trading.
View from the City
Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said: 'As largely expected, the weather has resulted in an update from M&S which is something of a damp squib.
'In particular, the decline in general merchandise has continued, albeit for different reasons. This in part has caused yet another management change, which is unsettling given the perception that M&S has yet to find its new niche.
'Whilst sales remain under pressure in a fiercely competitive environment, the more successful retailers have themselves reported numbers which could imply a deeper problem at M&S.
Happier times: Departing boss Kate Bostock poses with an M&S model
'On the upside, Chinese and Indian sales and the online channel continued their promising progress, Food is still holding its own and the dividend yield of 5.3 per cent is attractive in the current interest rate environment.'
John Ibbotson, director of retail consultant Retail Vision, said: 'Their umbrella and raincoat sales might have soared, but Marks and Spencer have clearly been hit hard by the exceptionally wet weather in May and June.
'While all retailers with seasonal lines are at risk from dramatically unseasonal weather, Marks have suffered more than most. Only their food department stayed afloat amid a deluge of bad numbers.'
And he added: 'The pain could be just beginning. The unsold sun hats, summer dresses and so on now threaten to become a millstone around their necks.
'Marks may be forced to bring their end of summer sales forward to mid-summer, or risk being caught with lots of difficult-to-sell stock come autumn.'
Stock trend: Marks shares have had a bumpy ride over the past year
Europe faces tight diesel market for summer - Reuters UK
* Europe is the biggest diesel market
* Diesel inventories low in Europe and U.S.
* Spot wholesale premium highest since November 2011
LONDON, July 10 (Reuters) - Oil traders in Europe are striving to prevent a shortage of diesel this summer after refineries across the globe have closed or cut runs, pushing spot premiums to seven-month highs that may pass through to retail prices soon.
Traders say owners of diesel-fuelled cars are likely to encounter rising prices within a few weeks, although the impact will vary widely from country to country depending on retail competition, regulation and differences in economic performance.
European oil refiners face a mismatch between supply and demand for diesel.
Overall demand for refined products in Europe has shrunk, forcing refineries to close surplus capacity since 2009, due to a drop in dirty heavy fuel oil consumption and lower U.S. imports of European gasoline.
But the region lacks sufficient capacity to make diesel, in particular.
Instead of investing in new units, many oil companies have chosen to import diesel from the United States, Russia, the Middle East and India, where refineries' operating costs are lower than in Europe.
That leaves Europe vulnerable to a potential shortage of the auto fuel in case of a global supply crunch.
And a crunch is precisely what traders in the intermediary market have been struggling to avoid since late June, hoping to keep consumers oblivious of the problem.
"I am struggling to find cargoes. Diesel is scary tight, not just tight," a trading source said. The source, who has been handling physical diesel in Northwest Europe for about 20 years, asked for anonymity due to compliance.
"The market is the tightest I have ever seen," the source added.
Traders cited the impending closure of Britain's Coryton refinery, which used to be run by insolvent Petroplus , and the failed start-up of a new unit at the Motiva refinery in Texas as the main reasons leading to the tight supply of diesel.
"We have shut down too many refineries at the same time, and the new start-up in Motiva failed. So we have pushed the refining system tight for the short term," a trader said.
Some issues about diesel quality at Royal Dutch Shell's Pernis refinery in the Netherlands, Europe's largest, added to the tightness in late June, traders said. Shell then declined to comment.
"The product is just not available, partly because quality is not right. Refinery shutdowns are one reason too," independent analyst Pieter Kulsen said.
Spot premiums on 10 ppm diesel ULSD10-BD-ARA jumped to an eight-month high of $34 to $35 a tonne fob to ICE gasoil futures late on Monday from about $22 a tonne a week ago, according to Reuters data.
PASSING THROUGH
The rise in wholesale spot premiums is likely to pass through to pump prices in many European countries within a few weeks, traders said.
"High spot prices have to be passed on unless the market is very competitive and retailers squeeze their margins. But this is less likely, really," one UK-based trader said.
Spot premiums to buy diesel in the European wholesale and import markets are likely to remain high until wholesale demand starts to ease in August, typically ahead of retail demand, traders said.
Swaps show the premiums are likely to remain above $30 a tonne for July and ease to around $22 a tonne in August.
International Energy Agency (IEA) data shows Europe's major economies consumed 6.05 million barrels per day of middle distillates in 2011 such as gasoil for heating and diesel for cars, making the region the biggest distillate market in the world.
Imports had accounted for 6 to 7 percent of European demand before the Coryton closure, according to industry estimates, and the figure may well be higher now.
Competition for those imports is high, because the United States, a major supplier, has a bigger deficit in middle distillate inventories than Europe does.
Euroilstock data showed that European middle distillate stocks at end-May were running 13.4 million barrels below a year earlier. U.S. distillate stocks were down 24.3 million barrels from a year earlier, according to weekly official data at end-June.
A rise in wholesale prices usually is felt at the retail level after a lag time of about two weeks.
But the market in Italy will be at least one major exception.
Italian oil major Eni has committed to keeping pump prices low in a promotion that runs until Sept. 2. Eni has cut the prices of petrol and diesel by 20 percent on weekends for customers who use a self-service option.
Eni says it will sell fuel even below cost during the offer at its roughly 3,000 stations across Italy.
Traders said Eni has been scrambling to secure fuel on the wholesale market after a jump in its sales pulled down stocks at its tanks to levels that nearly fell below the minimums mandated by the IEA.
"They need to buy some cargoes for the system. Everything goes very quickly," said one trader, who is familiar with Eni's discount marketing. "And they need to keep the stock above certain level to meet regulation." (Editing by Jane Baird)
CME cattle, hogs ease on lower wholesale prices; feeders rebound - Reuters
July 10 (Reuters) - Live cattle and lean hog futures eased at the Chicago Mercantile Exchange early on Tuesday, pressured by lower wholesale prices for beef and pork, while feeder cattle rebounded after hitting an eight-month low on Monday. LIVE CATTLE - At 8:20 a.m. CDT (1320 GMT), August was down 0.300 cent at 118.750 cents per lb, with October off 0.450 cent at 123.150 cents. * Downturn in choice beef cutout pressuring futures, but losses limited by firm select cutout and expectations for steady to higher trade this week in the southern U.S. Plains cash cattle market. * Meat packers are said to be short-bought and are also making money on each head of cattle they slaughter. * USDA late Monday put the choice boxed beef cutout at $190.51 per cwt, down $2.14. Select cutout was $175.07, up 36 cents. FEEDER CATTLE - August was 0.125 cents higher at 144.400 cents per lb, with September up 0.325 cents to 147.600 cents. * Feeders rising as corn prices fall, with feedlots possibly willing to pay more for replacement cattle if prices for their main feedstock decline. * Corn futures on Monday jumped to the highest price in more than a year, pushing feeder cattle to the lowest level since December, but traders sold off corn overnight on expectations for cooler temperatures and the possibility of rain in the parched U.S. Midwest. LEAN HOGS - July was down 0.700 cents at 96.100 cents per lb, with August 0.725 cent lower at 93.225 cents. * Lower cutout, poor profit margins and a better supply weighing on lean hog futures. Movement expected to pick up this week in the Midwest cash market as temperatures cool slightly. * USDA late Monday put wholesale pork cutout at $90.13 per cwt, down 51 cents. * Cash hogs traded steady to $1 per cwt lower across the Midwest on Monday. (Reporting by Michael Hirtzer in Chicago; editing by John Wallace)
© Thomson Reuters 2012 All rights reserved
Shopping Mall Management in the US Industry Market Research Report Now Available from IBISWorld - YAHOO!
As retailers went out of business or closed underperforming stores during the recession, vacancy rates at shopping malls increased and caused revenue to decline. As the economy improves, retailers will increase their store locations. As a result, industry operators will raise rental prices, allowing them to boost their revenue. For these reasons, industry research firm IBISWorld has added a report on the Shopping Mall Management industry to its growing industry report collection.
Los Angeles, CA (PRWEB) July 10, 2012
In the five years to 2012, IBISWorld estimates that revenue for the Shopping Mall Management industry has declined at an annualized rate of 2.0% to $21.7 billion. Industry operators were threatened by the recession, which caused many retailers to go out of business and increased vacancy rates. This factor ultimately pushed rental prices down, further contributing to revenue reductions from 2008 to 2010. However, the industry has started to benefit from slow improvement in the general economy. According to IBISWorld industry analyst Kevin Culbert, an increase in disposable income has caused foot traffic to increase in shopping malls — a factor that has contributed to a decline in vacancy rates. The National Association of Realtors estimates that the retail vacancy rate will fall to 11.2% in 2012, down from 12.5% in 2011. This factor will is expected to cause industry revenue to increase 3.0% in 2012. The Shopping Mall Management industry has experienced consistent consolidation. In the five years to 2012, IBISWorld estimates that the number of firms operating in the industry has declined at an annualized rate of 2.8% to 8,109. Industry consolidation, which has contributed to a general increase in industry profit margins, has largely occurred due to the dominance of real estate investment trusts (REITs).The Shopping Mall Management industry has a moderate level of concentration. In 2012, the top firms include Simon Property Group, General Growth Properties Inc., Westfield CBL & Associates Properties. Concentration has increased as companies continue to acquire and merge with other firms in the industry. For example, major industry operators have performed a number of acquisitions over the past five years. These entities have diversified their businesses by expanding operations through corporate acquisitions and property purchases. Additionally, larger businesses generally raise capital more efficiently than smaller, independently owned businesses. Likewise, industry participants have consolidated operations in an attempt to improve their ability to raise capital, says Culbert.
IBISWorld estimates that industry revenue will increase in the five years to 2017. During that time, the industry will benefit from growth in disposable income, which will bring more foot traffic into malls. Retailers that delayed potential new store openings and shut down underperforming centers during the recession will once again pursue expansion. As vacancy rates continue to fall, rental prices will increase and contribute to further revenue growth. In spite of a return to growth, industry operators will continue to deal with a changing retail landscape. Traditional malls have increasingly had to deal with more consumers shopping online. In order to attract more foot traffic, more malls are expected to be converted into lifestyle centers, which typically incorporate living centers, restaurants and outdoor space. Nevertheless, the high cost of lifestyle centers will limit their development to affluent areas, ensuring the relevance of traditional malls over the next five years. For more information, visit IBISWorld’s Shopping Mall Management in the US industry report page.
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IBISWorld industry Report Key Topics
This industry develops and manages shopping malls and other retail properties. Property management responsibilities involve the overall operation of the real estate asset, including leasing, maintenance, rent collection and security.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith
IBISWorld
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