No Turn On Red

ComScore reports that Cyber Monday spending increased 15% over last year. While the November to December period is down 2% from last year, this weekend saw tremendous gains in online sales. Breaking down the data a bit more, ComScore today reports that there was a 22% increase in online shoppers, though a decrease in the average value per transaction. Online shopping sites saw a 33% jump in traffic, with Best Buy seeing a 131% increase in traffic. I hope they were able to reap the benefits of that. More detailed breakdowns available in today’s release from ComScore.

Best Buy recently turned to their retail stores to look for talent to build their new intranet. There seems to be a good focus on breaking down divisions between rank and accelerating communication from the bottom up. Employee feedback is being used by merchants to help make better, and most likely, more timelier decisions. I also really like the fact that they went to the store level to find the skill to build the intranet, essentially allowing the target audience to have a major say in how the site will be built.

Walmart and Coke have released a new commercial called “Joy! Enough to go around“. The commercial pushes the low prices that Walmart has on Coke products; prices so low that it allows the star of the video to throw a holiday party for everyone he knows. It’s a really well crafted video. I love the continuous, one-camera shot of this video. Now, I can’t get the jingle out of my head. Well done, I think.

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Just two quick links for today:

In regards to today’s earlier entry about the perils of catching a shoplifter, I came across another recent story on the same topic. Last week, a shoplifter tried to stab a Home Depot security guard with a screwdriver he just stole.

Then there’s an article from the Billings Gazette about how retailers and others are recruiting teenagers to fill Summer jobs. Good look at a local American Eagle Outfitters location and how the manager there goes about recruiting new employees, as well as some of the methods used by others to fill other, non-retail, jobs.

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From the Asbury Park Press, a reminder of one of the dangers the retail employees do face and need to be cognizant of:

Police arrested a 21-year-old township man on shoplifting charges, and also charged him with pulling a knife on the store employee who confronted him.

Police charged Arthur A. Montague, 21, who has been living at the Holmdel Motor Inn on Route 35, with robbery, shoplifting, possession of a weapon, and possession of a weapon for an unlawful purpose.

On Saturday, at about 4:58 p.m., township police received a report of a male suspect who had just shoplifted a lap top computer from the Best Buy in the Holmdel Commons on Route 35. The suspect was seen leaving through the rear service bay of the store by a Best Buy employee, police said.

When approached by the employee, the subject took out a chrome knife and started waving it toward the employee, advising him to stay away, police said. The incident was also witnessed by a store manager.

I am happy to hear that everyone is safe and the suspect was caught. More on this story from the Asbury Park Press.

Sometimes retail workers can forget that they are surrounded by hundreds of thousands of dollars of merchandise and large sums of cash. Unfortunately, there are people who will want their hands on this stuff and will do anything to get it. Even a shoplifter with a $15 shirt may turn out to have a weapon on them and will want to use it.

I’ve seen a shoplifter attempt to run over associates with his car after he was stopped with less than $200 worth of merchandise because he had outstanding warrants and didn’t want to get arrested. I know people who have been on the receiving end of armed robberies and smash and grabs.

While the vast majority of people who walk through the doors of a retailer are normal shoppers, there is always going to be that small small small percentage looking for something else. This is why employees need to be aware and remember that it is not worth getting injured, or worse, when trying to apprehend a shoplifter. This is also why most retailers have such strict policies as far as who can make an apprehensive and how it has to be performed.

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Circuit City has announced that they are cutting an additional 850 jobs, on top of the previously announced 3,400 jobs that they cut earlier this year. Now they are targetting store executives, cutting some stores down to 3 managers from the 5 that all stores had. They are also cutting 200 jobs at Circuit City corporate.

It is a shame to see any company cut jobs like this. I wonder if Circuit City has taken a look at the root of the problem – what caused the company to get to the point where they need to make this decision? Have they thought about their customer service policies? Their training? Their merchandise assortment?

When I talk to my tech-inclined friends about Circuit City, they all say the same thing: they don’t enjoy shopping there. Prices aren’t good and sales people are undertrained and unknowledgable. This isn’t a problem at one location; this is a problem across the chain. People don’t enjoy shopping there.

The retailer has also announced plans to open 165 new stores, after closing 60 earlier this year. The new stores will be a smaller, redesigned layout that is more customer-focused. Good, but is that too little too late?

No doubt that Circuit City can prove the layoffs as being a financial necessity right now. However, with some better forethough, some revamping, and some twaking of policies over the past few years, Circuit City could have remained competitive in the marketplace. Their underperfomance is nothing new. By constantly evaluating what is working and what isn’t over time, 4,000 people wouldn’t be out of a job today.

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Consumerist has a detailed report about a worker, who was fired from his job at Wal-Mart, based on a comment he left on MySpace:

The exact quote said “Drop a bomb on all the Walmarts, trailer parks, ghettos, monster truck shows, and retarded fake “pro wrestling” events, and the average I.Q. score would probably double.” This was a silly statement, but in no way was a threat as Walmart said and used as reason for my termination and denying my unemployment benefits. On my “Exit Interview” they checked Gross Misconduct – Integrity Issue (which they describe as: Theft, Violent Act, Dishonesty, or Misappropriation of Company Assets) as the reason I was fired. They wrote on the exit interview that it was a threat posted on website; which it clearly is not.

Consumerist provides a more more detailed account from the fired employee. The comments on the story provide an interesting debate and look at employee vs. employer rights, and how far the line extends outside of the workplace.

We live in a digital age and we have to be careful what trace of our lives we leave online.

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Wal-Mart faces more legal problems ahead. Today, the New Jersey supreme court has certified a class action lawsuit against the retailer for claims that the retailer denied workers’ meal breaks, forced them to work off the clock, and forced them to work on the breaks.

More from Forbes (NJ Court Certifies Wal-Mart Class-Action) and the Asbury Park Press (Wal-Mart to face New Jersey class-action pay suit).

This is probably not a good thing for Wal-Mart, as they have previously lost similar class action lawsuits in Pennsylvania and California (I talked about the PA verdict last year). These kinds of cases are a reminder to all other retailers that they have to stay on top of labor practices, and more importantly, they are responsible for what their store-level management is doing. I’m sure Wal-Mart is not the retailer that is at fault, but these high profile cases send ripples through the industry.

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