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MARKETING NEWS QR code scans jumped 50pc on Black Friday ............................................................................ 2

Lift holiday spirit and sales with personalized direct mail ......................................................... 3

It’s about time for your print advertising to be more social ....................................................... 4

Mobile behavior influenced by age, time of day, other factors .................................................. 6

PUBLISHING NEWS Over 40 percent of magazines have concurrent print, digital growth ......................................... 8

McGraw-Hill Education to be acquired by private equity firm Apollo … ................................. 9

All You brings social commentary into print product .............................................................. 10

Amazon Publishing to open European division ........................................................................ 11

POSTAL NEWS USPS makes profit in October, predicts 50% cut in losses this year ........................................ 12

USPS begins “game changer” same-day delivery trial next month .......................................... 15

RETAIL NEWS Christopher & Banks posts Q3 profit; new CEO takes reins .................................................... 17

Coldwater Creek CEO to retire; to be succeeded by chief merchandising officer ................... 17

Costco gives shareholders a special gift ................................................................................... 18

Ann Inc. Q3 same-store sales up 5.5%; raises full-year outlook .............................................. 19

Staples rethinks, shrinks the box ............................................................................................... 20

ECONOMIC UPDATE

GDP: 3rd

quarter 2012: 2.7 percent

Unemployment Rate: the unemployment rate was essentially unchanged at 7.9 percent in

October.

Consumer Confidence: which had increased in October, posted a moderate increase in

November. The Index now stands at 73.7, up from 73.1 in October.

December 3rd

, 2012

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MARKETING NEWS

QR code scans jumped 50pc on Black Friday: report

Chantal Tode , Mobile Marketer . 11/28/2012

In a sign of the growing role that mobile plays in helping consumers make purchasing decisions, mobile bar code scans on Black Friday increased 50 percent, according to a report from ScanLife.

Black Friday is one of the busiest shopping days of the year and consumers are increasingly using their mobile devices to scan QR codes and UPC codes that appear on products, in-store displays and ads to help them make informed buying decisions. The numbers also point to continued adoption of QR codes by marketers and media publishers.

“We believe that this holiday season, QR codes are helping retailers close sales and amplify their message via social networks,” said Mike Wehrs, CEO and president of ScanLife, New York.

“Showrooming is here to stay, but QR codes can give shoppers the confidence they need to shorten the path to purchase,” he said. “Seventy five percent of the scans from Black Friday that we processed came from QR codes and they will undoubtedly play a large role in holiday shopping.”

Promotional offers a draw

Overall, ScanLife saw over a quarter of a million scans completed between 7 p.m. eastern time on Thanksgiving Day and 7 p.m. eastern time on Black Friday using the ScanLife app, making it the busiest day to date for mobile bar code traffic.

The numbers also suggest QR codes are shaping up to be a good way for marketers to deliver rebate offers, with the single best QR code marketing campaign powered by the ScanLife system on Black Friday delivering a promotional rebate offer for a popular DVD title.

By category, the consumer electronics and retail industries saw the most mobile bar code scans on Black Friday.

Other key findings include that during the third quarter, almost 4 million new people scanned mobile bar codes, representing a 45 percent increase over the same period last year.

The mobile, social link

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ScanLife recently launched new versions of its mobile bar code application for Android and iOS users to make it easier for users to discover the best QR codes and products via Facebook.

To promote the app and mobile bar code scans, ScanLife is running a "Like It to Win" holiday giveaway, giving mobile users who download the app, scan a mobile bar code and indicate their favorite scans a chance to win an Amazon gift card.

Over 15,000 “Likes” have been recorded so far. The most liked brands are Best Buy, Kohl’s, Heinz and Samsung.

“This data is showing that people of course like content that provides holiday shopping deals, but they are also giving their approval on a Heinz Corporate Giving effort” Mr. Wehrs said.

“This again proves the potential for QR codes to go far beyond just leading a consumer to a product’s Web site,” he said.

“Interestingly, all of the most liked items are from content that is made for mobile, and none that were PC formatted. This shows again that people appreciate getting content on their mobile device that is relevant and easy to use.”

Lift Holiday Spirit and Sales with Personalized Direct Mail Staff Writer , Printing Impressions . 11/27/2012

The holidays are a time to reach out to people in a way that forms a genuine connection. Personal contact is easily the first thing to go in our modern world, where e-mails are common place and a hand addressed letter is rare treasure. But some groups and businesses are bucking this trend and making the holidays a reason to renew personal connections.

Nothing is a better example of a commitment to connecting during the holidays than the “The Big Thank You” campaign of The Bert Show in Atlanta. For the second year, the show is asking listeners, and anyone else who is interested, to write a personal letter of gratitude to the military men and women serving the United States across the world. The goal of the campaign is that all of the brave and courageous service people will have a letter of thanks in their hands this holiday season—and maybe just a glimmer of the home they are far away from this holiday season.

Last year, the drive collected nearly 400,000 letters from individuals, children, businesses and community groups. These small tokens of personal connection lifted the morale and spirits of the troops and their families, and the campaign was a huge success. The Bert Show is looking to grow and continue this success during the 2012 holiday season.

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The Bert Show’s grand idea is a wonderful example of the effect a handwritten letter can have on just about anybody. Businesses can also achieve this similar sentiment through distributing personalized direct mailers to potential and current customers. Research conducted by Millward Brown, a leading research firm, revealed that people have a deeper connection to physical rather than virtual materials. The study suggests that real experiences, such as receiving a letter in the mail with their name handwritten on an envelope, will create a more memorable impact because the person is experiencing emotion elicited by the piece of mail.

Direct mail distributors can aid businesses even further by helping them target customers using certain demographic data. According to the Direct Marketing Association, targeted directed mail boasts a 4.4 percent response rate, compared to e-mail’s rate of 0.12 percent. In fact, Stuart Ogletree, a State Farm Insurance broker in metro Atlanta, estimates a five percent increase in customer response when targeting specific homeowners combined with handwritten fonts.

Also, the power of a ‘thank you’ should never be underestimated, especially in the direct mail world. AccurateLeads sends out personalized cards throughout the year to show customer appreciation. The small token of thanks shows a personal touch, again eliciting an emotional response from the recipient, and further building loyalty.

Handwritten letters are a lost art and the mailbox is getting increasingly sparse. This provides businesses an even greater opportunity to utilize direct mail products. The thrill of running to check the mailbox will not be going away anytime soon. With the holidays upon us, it is the perfect time for organizations to use direct mail to reach out to consumers and form a connection. The Big Thank You campaign provides the perfect example of how moving the gesture of personalized mail can be.

It’s About Time for Your Print Advertising to be More Social Matthew Peneycad , Printing Impressions . 11/27/2012

Reality today is such that social media should be considered when executing virtually any corporate communications program. Opportunities to drive traffic to your social properties, promote your content, integrate technology, and more, should not be overlooked.

Despite this, my experience has shown that there are some media channels, such as print, that seem so antiquated that marketers don’t think about how social media and technology can be influenced by the medium, or vice-versa.

Well, let’s aim to make this a mindset of the past and start encouraging our coworkers, clients, leadership and partners to think ‘social’, even when producing print ads and

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printed collateral. Following are a number of ways that your print advertising can be more social and be better integrated with technology:

PROMOTE YOUR SOCIAL MEDIA PROMOTIONS

Print advertising can drive a huge amount of traffic to your social media promotions. If you’re running a photo or video sharing contest, print advertising can be particularly effective because you’ll be communicating with your consumers while they are away from their computers living life in the real world, which is probably where you’ll want them taking photos or video for your contest.

GET CREATIVE AND INSPIRE SOCIAL AMPLIFICATION

Dazzle your consumers with print ads that are so incredibly creative that they feel compelled to share their experience with your ad with their social networks – Carlsberg created the print ad bottle opener, Volkswagen gave you a virtual test drive, and Lexus amazingly added audio and video to their print ad. Argue all you want about how many readers actually interacted with these ads, but without a doubt those that did, found them impactful, were left with a lasting impression, and shared their experience with their friends.

PROMOTE FOURSQUARE CHECK-IN SPECIALS

You can significantly increase redemption and participation with your Foursquare check-in specials by promoting them in print advertising and collateral. If your offer is compelling enough, you might even convince non-Foursquare users to register an account. Also, because of Foursquare’sincreased commitment to cross platform integration, consumer check-ins, reviews and tips are going to be seen by an increasing number of people on other social media networks.

GRANT ACCESS TO EXCLUSIVE CONTENT

There is an inherent perceived value in just about anything that is exclusive, or gives people the sense that they have insider knowledge; so tap into this. If you are creating compelling content for your print advertisements or advertorials, you might want to consider granting access to exclusive bonus content to your consumers on social media, only available to those who have seen your print-based advertising.

DRIVE TO A COMPLIMENTARY MOBILE WEBSITE

If you’re able to successfully create an emotional response to your print ad, or feature compelling enough communications, think about how you can extend that experience or further educate with a mobile website. Consumers are never far away from their mobile devices, and after engaging with your print ad could be a perfect opportunity to drive to your mobile site, that should feature social integration.

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INCLUDE A COMPELLING CTA

All too often I find that advertising features a social media call to action that really falls flat. Like us on Facebook. Follow us on Twitter. Find us on Pinterest. Come on, give consumers a reason to get involved with your brand on social media. Give them a sense of the value that you will provide them in exchange for taking time to hunt you down on their computer or mobile device. Tell them how you’ll educate them, entertain them, or provide utility in your CTA.

Mobile behavior influenced by age, time of day, other factors: study

Chantal Tode , Mobile Marketer . 11/29/2012

A new report on consumer online and mobile behavior finds that smartphones are most popular with singles while married folks favor tablets.

The 2012 Online User Behavior and Engagement Study from The Search Agency and Harris Interactive reveals distinct differences in online and mobile behavior between various age groups. Other factors impacting behavior include disposable income as well as the influence of children.

“It’s no doubt that a plethora of smartphones and tablets are increasingly being used by consumers, so mobile marketers and advertisers need to think beyond the device when they’re providing content to the consumer,” said Mike Solomon, vice president of marketing strategy at The Search Agency, Los Angeles.

“The time of day, the device, their location, their age, and whether they’re single or married, all must be taken into account when serving content,” he said. “Marketers can now also map consumer intent, which is driven by a combination of device type, time of day and day of week; for example, a home buyer's behavior is different on a smartphone during the weekday when they are researching than on the weekends when they are ‘in market.’

“The number of resources and devices on which consumers perform research, communicate and shop is rapidly growing and mobile marketers need to understand each of these factors when creating their campaigns.”

Tech-savvy baby boomers

For example, the report found that baby boomers are often more tech-savvy than their slightly younger counterparts because they have children who are pushing them to use new tools and devices.

The report also identifies situational factors such as time of day and proximity to a device impacts how and when users reach for their computer or mobile device to shop, search or

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be social. This suggests it is important that advertisers consider how to match content and experiences with the time of day and specific device in order to best engage users.

Key findings include that 49 percent of single respondents own a smartphone versus 43 percent for married respondents.

When it comes to tablets, 45 percent of married people own a tablet compared to 36 percent of single consumers.

Second screen experiences

The results also suggest that consumers want more information about the products they are interested in on TV and are looking to their computers and tablets for this information, with age a significant factor in determining which device they choose.

The results show that 78 percent of respondents overall look to their computer to get information about what they see on TV while 66 percent of tablet owners turn to their tablets for this information.

However, among tablets owners between the ages of 18 and 34 years old, as much as 71 percent pick up their tablets for more information. Among tablet owners 35 to 44 years old, the number jumps to 81 percent.

While more married people own tablets, more single people – 76 percent – are likely to use them to get more information about products seen on TV compared to married consumers – 63 percent.

The results also show that consumers are turning to their mobile devices even when their computer is within arm’s reach, with 59 percent of smartphone owners having searched from their smartphone when they are in close proximity to their computer. This number increase to 74 percent for smartphone owners between the ages of 18 and 34 years old.

Multi-taskers

Other key findings include that the insight that Millennials do not separate work and play as much as their older counterparts, with 53 percent of 18 to 34 year olds more likely to purchase something online during the day than at night. In comparison, only 42 percent of those 55 years and older are more likely to purchase during the workday.

Additionally, 52 percent of respondents 18 to 34 years old are more likely to browse social networks during the workday compared with 41 percent of respondents 35 to 44 years old, 30 percent of 45 to 54 year olds and 30 percent of those 55 and older.

The survey of more than 2,000 U.S. adults took place in August.

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“This study is helping us learn a bit more on how usage on desktops to mobile is evolving, and it all depends on who you are, if you’re married, how old you are, or where you’re located,” Mr. Solomon said.

PUBLISHING NEWS

GfK MRI: Over 40 Percent of Magazines Have Concurrent Print, Digital Growth

Michael Rondon , Folio . 11/30/2012

More than 40 percent of magazines surveyed saw concurrent print and digital audience growth in the fall of 2012, according to the most recent study by GfK MRI.

Of the 118 titles reported to have experienced print growth from the spring of this year, 78 of them, or 43 percent, also saw digital audience gains. On the digital-only side, 119 publications had their audiences rise, including 25 with previous digital audiences of less than 1,000.

Overall, average total print audience rose by 1.3 percent, while average total digital audience increased by 47.5 percent.

Six magazines-Handy, Street Rodder, Outside, Four Wheeler, Conde Nast Traveler and Diabetes Self-Management-reached benchmarks of double-digit print growth and triple-digit digital growth.

The correlation between print and digital growth is substantially stronger than the 43-percent figure suggests however.

While 40 of those publications with growth on the print side saw digital audiences stay flat or decline in the fall, only 11 were due to actual decreases in audience. The remaining three-quarters had no digital presence in the spring and continued that trend into the fall-essentially, a null set.

Discounting those without a digital presence, closer to 50 percent of all titles included in the survey saw concurrent print and digital growth.

ESPN The Magazine retained the largest digital audience (967,000), up 27 percent from the second quarter, while Official Xbox Magazine (277,000) vaulted into the top 10 on the strength of 739-percent growth. Other large movers in the top 10 were TV Guide (409,000, up 172 percent) and Discover (294,000, up 216 percent).

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Despite an acquisition by Buzzmedia and a promise to focus more on the digital product, the largest print audience increase was seen by Spin (35.91 percent). Mother Earth News (25.68), Diabetic Cooking (18.40), Country Sampler (18.34) and Yankee (18.12) were the other top gainers. Conversely, Teen Vogue (-17.73), PC World (-14.49), Elle (-10.38), American Hunter (-10.03) and Esquire (-9.98) suffered the biggest drop-offs.

Straight percentage growth on the digital side is less revealing, given the novelty and initial scale of several of the programs, but Black Enterprise (2,200 percent), Handy (1,350) and Salt Water Sportsman (1,014) led the way.

Of those publications with a digital following of at least 20,000 to begin with, Official Xbox Magazine (739.39 percent), Scholastic Parent & Child (400.00) and Guideposts (286.96) posted the largest growth. The leaders in percentage growth for publications already bringing in audiences of 100,000 or more in the first quarter were TV Guide (172.67), Men's Fitness (125.00) and Food Network Magazine (79.73).

McGraw-Hill Education to be Acquired by Private Equity Firm Apollo Jim Milliot , Publishers Weekly . 11/26/2012

After a year-long process, McGraw-Hill Cos. has agreed to sell McGraw-Hill Education to the private equity group Apollo Global Management for $2.5 billion. MHC hopes to complete the deal before the end of the year or in early 2013. Under pressure to improve its share price, MHC began exploring ways to divest itself of the education and publishing group in September 2011 to focus on its financial businesses. The original plan had involved spinning off MHE into its own company, but MHC also talked to a number of potential suitors before signing the deal with Apollo.

After the purchase is completed, the education group will be known as McGraw-Hill Education under the direction of Buzz Waterhouse who was named president and CEO in June. Its corporate offices will remain at 2 Penn Plaza in New York City.

In a statement, Larry Berg, senior partner of Apollo said, “With a longstanding track record of investing behind leaders in education, Apollo is pleased to be acquiring a marquee business that has been a pioneer in educational innovation and excellence for over a century. McGraw-Hill Education has a deep and impassioned management team, and we share their enthusiasm and strategic vision for the business. We look forward to leveraging the company’s leading portfolio of trusted brands and innovative digital learning solutions to drive growth through the ongoing convergence of education and technology on a global basis.”

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Hampered by a weak performance in its school group, sales at MHE were down 10% for the nine month period ended September 30, with operating profit off 13%, to $245 million. Ahead of the sale, MHC had initiated a cost reduction program across all of its companies to cut expenses, a move that MHC said said reduced costs by 9% in the third quarter alone.

All You Brings Social Commentary Into Print Product

Michael Rondon , Folio . 11/28/2012

All You has even more "you" now after incorporating reader comments and questions into nearly a third of the pages of its most recent edition.

The December issue of All You debuted "Real Talk," an editorial feature that opens each of the magazine's sections with a question from readers. The franchise is threaded throughout the book as well, with flagged reader comments appearing as sidebars within several stories.

An expansion of the testimonial advertising program "Reality Checkers" was also introduced, adding social sharing elements.

True to its name, the magazine has always incorporated user-generated content into its print and digital products, but has broadened its use recently with "Real Talk," "Reality Checkers" and a digital video curation initiative.

"From the day we launched in 2004, social has been a big component of the brand," says Nina Willdorf, executive editor of All You. "As editors, our job is not to push information out, but to open up the dialogue and a conversation to other readers, and to capture that dialogue in a way that's most compelling."

Market--frequent women shoppers looking for value--and distribution--more than a quarter of their 1.5-million circulation comes from an exclusive deal with WalMart newsstands--makes user-generated and social content especially relevant for the title, Willdorf says.

"Consumers like to take advice from other consumers," she says. "You see on Facebook, people share their favorite things with each other and take each other's advice. We're taking that thinking and applying it to our brand. All You is hitting something that's very resonant right now."

With the addition of social sharing features to the "Reality Checker" platform, All You is offering members of the 50,000-plus network the option to send out reviews of select marketer products within their own social spheres.

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Testimonial content from the program has already been used in magazine advertisements for several years now, and the sharing option is a natural extension, according to Willdorf.

"We're giving them a vehicle to do something that we know they do anyway," she says.

All You filters the user-generated content that is presented on its owned platforms, but the nature of social precludes that, Willdorf admits. The conversation will be monitored, but ultimately, it's out of their hands.

That essentially leaves the door open for All You-sponsored criticism of its own marketers' products. Willdorf is comfortable with that however.

"We do believe that authenticity is really key to have people believe what you're telling them," she says. "If you look at our Facebook page, people tell us a lot. They tell us the good, the bad and the ugly, and we value it all."

Amazon Publishing to Open European Division

Alex Mutter , Publishing Perspectives . 11/30/2012

Jeff Belle, Vice President of Amazon Publishing, has announced that Amazon will begin building a European publishing division in 2013.

The division will focus on publishing titles in the UK, France, Germany, Italy and Spain, with its homebase in Luxembourg; Vicky Griffith, currently the head of Amazon’s West Coast Group, will transfer there in January and begin hiring editors and other team members.

The news came today via a letter sent by Belle to literary agents, in which he also announced some minor restructuring of Amazon Publishing’s US operations that will take place in the wake of Griffith’s departure to Europe. Larry Kirshbaum, currently of the East Coast Group, will also oversee Amazon’s Seattle-based imprints and Amazon’s children’s publishing division, with Daphne Durham becoming editor-in-chief of all of Amazon’s adult imprints.

“We have much work to do,” wrote Belle in the letter he sent to agents, “and many challenges ahead of us, and we remain relentlessly focused on providing the best possible publishing experience for your authors.”

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POSTAL NEWS

USPS makes profit in October, predicts 50% cut in losses this year Staff Writer , Post & Parcel . 11/29/2012

And for the full year, the world’s largest postal service is now projecting that it will cut its losses in half, to $7.6bn for the fiscal year 2013.

The struggling Postal Service has been teetering on the edge of liquidity over the past year, defaulting on $11bn worth of payments to the federal government in August and September. Planning on a $14bn loss for fiscal year 2012, USPS actually recorded a $15.9bn loss for the 12 months up to the end of September, including the payments it refused to make.

Latest results show that the festive season peak is now beginning to feed in much-needed funds to help USPS through the winter, with hopes that the US Congress will make critical reforms to its out-of-kilter pension and healthcare payment arrangements.

Not including its federal retiree healthcare obligations and workers compensation adjustment, the “controllable” part of USPS finances in October saw a $286m income.

Total mail volumes in October grew by 9% compared to the same month last year, up to 16bn pieces during the month, while the month’s revenues grew by 5.6% to just over $6bn.

Although the Postal Service’s main money-maker, First Class Mail, saw its volumes shrink by 0.6% in October compared to the same month last year, the product brought in 0.9% more revenue. Standard Mail grew its volumes by 16.1% year-on-year in October, and revenues increased by 10.2%.

Parcels and competitive service figures were obscured by the transfer of products like First Class Parcels from the market-dominant to the competitive portfolio.

The Postal Service saw its operating expenses during October grow by 2% compared to the same month last year, to $5.9bn. Salary costs rose by 2.6%, non-personnel expenses grew by 2.1%, and within that transport costs rose by 8.5%.

FY 2013 Plan

Last week, the Postal Service submitted a financial plan to regulators for the 2013 year, in which it said would likely record a $7.6bn loss for the full year.

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However, the prediction includes a $5.6bn payment due to the federal government, which USPS will likely refuse to pay, assuming that the payment is not restructured by Congressional postal reforms.

Not including the payment, and despite expecting “major cost reductions” with a massive downsizing of its network, USPS said its “controllable” loss for the year would be $2bn, a 20% cut in last year’s $2.4bn controllable loss. The Postal Service believes its revenues in 2013 will be $64.9bn, with expenses at $66.7bn.

“Again in FY 2013, there will be insufficient liquidity to make the $5.6bn pre-funding payment for retiree health benefits,” said the USPS plan.

“Even after not making the $11.1bn of pre-funding payments for FY2012 and the $5.6bn pre-funding payment for FY 2013, we estimate that we will end FY 2013 with a cash balance of only $0.8bn.”

The projected cash balance would be less than enough to run the Postal Service for a week.

USPS notes that a 1% error in its sums would have an impact of $1.3bn on its revenue figure predictions, warning of considerable uncertainty in the economic outlook within the US and global situation.

The projections within the plan do not take account of possible legislative reforms.

“In the event of a projected liquidity shortfall, we will prioritise payments to our employees and suppliers to help ensure that the Postal System continues to operate in a quality manner,” said the Postal Service, which added that it will continue to seek a return of multi-billion dollar surplus pension funds.

The 2013 plan projects that USPS mail volumes will decline by 4.2% from 2012 levels, to 153.1bn pieces, with a 6.1% (or 4.2bn piece) decline in First Class Mail, as more customers move to electronic alternatives and because of the weak economy. First Class Mail will still account for more than 42% of USPS revenues, according to the plan.

Standard Mail is expected to see volumes decrease by 3.2% (or 2.5bn pieces) because of the slower economic recovery, competing forms of advertising and the improving technology allowing advertisers to better target their mail.

However, thanks to the continuing growth of commerce, package and shipping volumes are expected to grow by 7% in 2013 to 3.7bn pieces, along similar lines to growth seen in 2012.

Standard Mail Flats

Separately, the US Postal Service has bowed to pressure from regulators this week, to increase its prices for the loss-making Standard Mail Flats service above the level of its inflation-linked price cap.

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USPS has been ordered by the Postal Regulatory Commission to bring the service back towards full cost coverage since 2010.

However, the Postal Service has been reluctant to significantly increase rates for the service out of fear it will add financial burdens to the struggling catalogue industry.

Earlier this month, the Commission sent the Postal Service’s 2013 pricing proposals back to L’Enfant Plaza with the complaint that it had not increased Standard Mail Flats prices enough to move it closer towards covering its costs.

USPS had argued that it was making progress towards cost coverage by cutting its operating expenses and providing a more efficient service.

But the regulators – with one commissioner breaking ranks with his colleagues to disagree – said the 2.57% price increase was not enough.

This week, the Postal Service came back with the suggestion that it should instead raise prices by 2.62%.

However, USPS made the revision to its price proposals under protest, complaining that the Postal Regulatory Commission “overstepped its authority” by demanding a higher price for the Standard Mail Flats service than that proposed.

It cited the dissenting postal commissioner Robert Taub in stating: “The approach of the Commission is a step back in time towards its ratemaking role that was abolished with the former Postal Rate Commission.”

Taub, and the USPS, argued that the current remit of the Postal Regulatory Commission is to set out an idea of acceptable pricing based on the annual price cap for market-dominant services, with the Postal Service in the best place to decide on specific prices for services.

USPS said that the additional price increase for its Standard Mail Flats service will bring in more than $4m in additional revenue.

But, the Postal Service said that its hasty revision of the pricing proposals had left no time to determine whether the higher rate will help with cost coverage for the service.

“The Postal Service is uncertain whether increasing the prices for Standard Mail Flats will either improve the product’s cost coverage or make a positive contribution to the Postal Service’s finances,” it said.

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USPS begins “game changer” same-day delivery trial next month Staff Writer , Post & Parcel . 11/27/2012

The Postal Service confirmed to Post&Parcel yesterday that its Metro Post service will run for a one-year period starting on 12th December, delivering products that consumers have ordered online.

The service could be expanded to other metropolitan areas if the San Francisco trial proves successful, but USPS would need additional regulatory approval to do so.

Spokesman John Friess said the trial was part of USPS efforts to expand customer access and find new revenue sources.

“We believe Metro Post will be a game changer,” he said, “offering customers an improved shopping experience while allowing USPS to achieve a core goal of growing the package business.”

The Metro Post service is being run with up to 10 retail chains that have both an online presence and physical “brick and mortar” stores within the Northern Californian city and elsewhere in the US.

USPS said it was working only with online retailers that have a physical presence so that their stock is stored locally to the consumer, facilitating same-day.

Friess explained: “The brick and mortar presence is to have a location for goods to be sourced within that narrow range of zip codes for a same day delivery.”

The trial will initially involve about 200 packages per day, originating from purchases made online or from a participating retail store, delivered within the San Francisco area. Ordering cut-off times will be between 2pm and 3pm, with deliveries expected to be made between 4pm and 8pm the same day.

Competition

A number of companies are looking at same-day delivery demand in the United States at the moment, including ecommerce giants eBay and Amazon, the world’s largest retail chain Wal-Mart and parcel carrier UPS.

USPS told regulators that its pricing for Metro Post would be within the price range of same-day delivery competitors, although it is currently keeping its pricing details confidential.

The Postal Service told the Postal Regulatory Commission that it believed Metro Post would not dislodge existing same-day courier businesses in local markets, as those companies largely operate in the market for delivering time-sensitive documents, medical items and

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perishable goods. “These items fall outside the intended scope of the Metro Post market test,” said USPS.

Approving the Metro Post trial earlier this month, the Commission waived the normal $10m revenue limit on trial services, with the understanding that the San Francisco operation will not bring in more than $50m in its year-long duration.

The Commission said: “Metro Post is likely to contribute to the financial stability of the Postal Service by generating package deliveries that would not have otherwise been delivered by the Postal Service.”

The regulator noted that if USPS decides Metro Post should become a permanent product, the Postal Service would need to apply for a new approval.

USPS priority

Expanding its market share in the package business is one of the key priorities for the US Postal Service at the moment, along with a strengthening of the business-to-consumer delivery channel, as it seeks to haul itself out of its current financial crisis.

With USPS letter volumes dwindling, package shipping services have been one area of bright prospects for the Postal Service, which posted a $15.9bn loss for the 12 months up to the end of September.

In its latest fiscal year, USPS saw a 15.5% increase in its parcel services volumes compared to the 2011 year, with revenues up 27.2% year-on-year, although the numbers were affected by monopoly products transferring into the competitive shipping portfolio. First Class package services saw an 18.7% year-on-year increase in revenues, and a 10.5% volume growth, largely thanks to increased online shipping.

The start of the Metro Post trial comes just as parcel volumes peak ahead of Christmas, with delivery speed increasingly important closer to 25th December.

USPS is predicting that during this year’s festive season it will deliver 365m packages across the country.

Online shopping sales in the United States have grown from $72bn a year in 2002 to more than $250bn in 2011, and the National Retail Federation is predicting that holiday season sales will grow 12% this year, to nearly $100bn.

Along with innovative new products and services like Metro Post, the Postal Service is currently working to tap the ecommerce growth through efforts to achieve 100% visibility for its package services through its Intelligent Mail package barcode system.

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Gary Reblin, the USPS vice president Domestic Products, said: “USPS is committed to providing customers with timely, reliable and accurate delivery service at reasonable prices so they can enjoy this special time of year.”

RETAIL NEWS

Christopher & Banks posts Q3 profit; new CEO takes reins Marianne Wilson , Chain Store Age . 11/30/2012

Christopher & Banks said its net income totaled $3.6 million for the quarter ended Oct.27, compared with a loss $13.7 million in the year-age period.

Revenue rose 2%, to $117.3 million from $114.6 million. The chain has closed more than 100 stores during the last year, but strong sales at its existing locations boosted revenue. Same-store sales rose 13.7%.

Christopher & Banks noted that effective Nov.26, LuAnn Via joined the company as president and CEO.

Via stated: “I am both thrilled to join Christopher & Banks and excited about the opportunity to build upon the foundation that Joel and the team have established. The third quarter results are a testament to the effectiveness of the strategy that has been put in place and is confirmation that the company is on the right path. I look forward to further building on this progress.”

Coldwater Creek CEO to retire; to be succeeded by chief merchandising officer

Marianne Wilson , Chain Store Age . 11/29/2012

Coldwater Creek Inc. announced that co-founder Dennis Pence will retire as president and CEO, effective December 31, 2012. He will remain as a director and continue to serve as chairman of the board until January 1, 2014.

Pence will be succeeded as president and CEO by Coldwater president and chief merchandising officer Jill Brown Dean, effective January 1, 2013. Dean has also been appointed to serve on the board of directors, effective January 1, 2013.

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"It gives me great satisfaction to announce today the succession of Jill to the role of CEO,” Pence said. “Her outstanding leadership, combined with her intimate knowledge of our customer and our brand, gives me great confidence in her ability to continue to lead the turnaround of our company, positioning us for a vibrant and successful second chapter in our history.”

Dean joined Coldwater Creek in February 2011, as president and chief merchandising officer. Prior to that, she served as president of the Limited Too division of Tween Brands from October 2006 to April 2008.

In other news, Michele Donnan Martin will join Coldwater Creek as SVP, general merchandise manager, and will be responsible for leading all product merchandising functions. Previously, she was the brand president, Retail and Direct at Delia's.

Costco gives shareholders a special gift Mike Troy , Retailing Today . 11/28/2012

Costco will pay a $7 a share special dividend before year end as it looks to return cash to shareholders in advance of what is expected to be a 2013 tax increase on dividend payments.

The total payout will amount to about $3 billion and is extraordinarily generous. Especially considering Costco’s net cash provided by operating activities for its fiscal year ended September 2, was only slightly more than $3 billion and cash, cash equivalents and short term investments totaled $4.854 billion.

The payout also is somewhat ironic considering Costco founder and board member Jim Sinegal was an ardent supporter of President Barack Obama’s re-election and the view that millionaires and billionaires can afford to pay more in taxes to help the nation avoid going over the fiscal cliff. Now, Costco is helping shareholders who meet the administration’s definition of wealth avoid paying the increased taxes Sinegal indicated were fair during the election by rushing to pay a special dividend before a rates increase kicks in. Costco currently offers a relatively modest dividend yield with a $1.03 annual payout and a share price hovering around $100.

In explaining the rational for the $7 special dividend, Costco CFO Richard Galanti did not mention the imminent tax increase as a motivating factor but alluded to the possibility that credit markets would be accessed to provide funding.

"Today's announcement of a $7 special dividend, to be paid before the end of the calendar year, is our latest effort in returning capital to our shareholders while maintaining our

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conservative capital structure," Galanti said. "Our strong balance sheet and favorable access to the credit markets allow us to provide shareholders with this dividend, while also preserving financial and operational flexibility to grow our business globally; allowing for ongoing dividend and share repurchase activities; and enhancing the value of the Costco membership to the more than 67 million Costco cardholders throughout the world."

Disclosure of the dividend was made in conjunction with the release of monthly sales and interestingly follows a telephone conversation Costco CEO Craig Jelinek said he had with President Obama on Saturday, November 17. Jelinek said the conversation was part of the administration's outreach to the business community to discuss current economic conditions and fiscal policy issues.

"I expressed strong support for the President's efforts to reach a compromise with Congress before the end of the year that avoids any tax increase on middle class taxpayers," Jelinek said. "Costco employs over 115,000 workers in the U.S., most of whom are middle class family wage earners. Likewise, the small businesses that make up the bulk of our business members employ thousands of working people who have borne the brunt of the recession. Now, with signs pointing to a modest economic recovery, it would be a particular burden on those working families to face higher income taxes."

Jelinek said he encouraged the President to continue working with Congressional leadership to find a balanced solution to the deficit that will avoid middle class tax increases and that it was imperative both sides of the aisle compromise to eliminate uncertainty and allow for continued economic recovery.

Ann Inc. Q3 same-store sales up 5.5%; raises full-year outlook Marianne Wilson , Chain Store Age . 11/28/2012

Ann Inc. on Wednesday reported net income was $40.7 million in the third quarter of 2012, versus $32.3 million in third quarter 2011. The company also increased its outlook for the full year of fiscal 2012.

Total net sales for quarter were $612.5 million, compared $564.0 million in the year-ago period. By brand, net sales across all channels of the Ann Taylor brand totaled $244.6 million compared with net sales of $229.7 last year At the Loft brand, net sales across all channels were $368.0 million, compared with $334.3 million last year.

Total same-store sales for the quarter increased 5.5%.

“Among the highlights, in September we successfully launched the first phase of our multichannel initiative, which is off to a strong start and will provide meaningful opportunities to better leverage our inventory investment and maximize sales and gross

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margin,” said Kay Krill, president and CEO. “During the quarter, we also made our entry into Canada, opening our first store in Toronto in September, followed by two additional stores in November. The response has been outstanding, and we are very excited about the opportunities in this market. Overall, it was an excellent quarter for Ann Inc., and we have entered the fourth quarter in a strong position.”

Staples rethinks, shrinks the box Vivian Gomez , Retailing Today . 11/27/2012

Staples has launched a new packaging technology nationwide that allows them to customize delivery box sizes to each order. Staples “smart-size” packaging, developed by Packsize International, is convenient for customers and also improves supply chain sustainability and efficiency.

With delivery boxes custom fit to each order, customers don’t need to break down oversized boxes and excessive air “pillows.” Smart-size packaging reduces air pillow use by 60 percent and the average cardboard box size by 20 percent. This results in an estimated annual carbon footprint reduction of 30,200 tons, equivalent to about 120,000 trees. Customized box sizes also allow more shipments to fit on each line haul and more orders to fit in each delivery truck. In addition, just-in-time packaging with Smart-size reduces costs and warehouse space from storing delivery boxes.

“At Staples, our supply chain team works tirelessly to help ensure a great customer experience with each and every delivery order,” said Don Ralph, SVP of supply chain and logistics at Staples. “Smart-size packaging is an important example of our commitment to supply chain excellence and sustainability throughout our operations. We’re already hearing positive feedback from satisfied customers across our delivery business.”

“Packsize is thrilled that Staples has adopted our lean packaging system,” said Hanko Kiessner, CEO of Packsize. “This is an inflection point for mainstream adoption of Packsize packaging technology that reduces box inventory, eliminates inefficient use of warehouse space, and minimizes wasted space and dunnage material within the shipped product box.”

Founded in 2002 and headquartered in Salt Lake City, Packsize contends that it is spearheading the corrugate revolution, which reduces the cost and bulk of traditional packaging in a changing landscape where operational efficiency and going green suddenly find themselves hand-in-hand.

Staples has implemented smart-size packaging in several facilities in its nationwide network of delivery fulfillment centers, and will continue the roll-out through 2013.