Is Bricks-And-Mortar the Future?

Spots N Dots The Daily News Of TV Sales April 10, 2017 AMAZON - WHAT’S NEXT? IS BRICKS-AND-MORTAR THE FUTURE? Last week’s announcement that Amazon had outbid Google, Facebook, and Twitter to get the streaming rights to Thursday Night Football games should have come as no surprise—with momentum in its favor as so many traditional competitors struggle, it appears there’s nothing that Jeff Bezos’ brainchild isn’t willing to look at. The company that didn’t even exist twenty-five years ago is now the largest internet-based retailer in the world and became the most valuable retailer by market capitalization two years ago when it surpassed Walmart. In electronics, it produces products such as Kindle e-readers, Fire tablets, and Echo, and is one of the world’s largest providers of cloud infrastructure services. Among its current initiatives, building a network of bricks-and-mortar stores could have the most far-reaching implications. Amazon is already experimenting with a food store in hometown Seattle with innovative features including not needing to pay before leaving (although it’s still working on getting some bugs out of the system). It also currently has five physical book stores operating with five more under construction. Beyond the food store effort, The New York Times is reporting that Amazon is exploring the idea to create stores to sell furniture and large appliances like refrigerators-- products, it says, shoppers are reluctant to buy over the internet. As with traditional stores in those categories, customers would view the items in person and the items would be delivered, but Amazon would use virtual reality to allow shoppers to visualize how the item would look in their homes. The Times also reports Amazon is kicking around an electronics store concept similar to Apple’s stores, which would emphasize Amazon devices and services such as the Echo intelligent personal assistant and Prime Video streaming service. The company also wants physical stores as a way to get items delivered to customers within just a few hours. There are skeptics. Supermarket News reports Walmart officials say they’d prefer to build an e- commerce business on top of a 4,000-store retail platform rather than do it the other way around. And the publication also remarks that including its not-yet-open convenience store and two pickup stores, Amazon still has 3,997 sites to go and right now is fighting for a tiny 2% piece of the online grocery business. Amazon’s next major step will be a three-day meeting for vendors next month, in which it will encourage manufacturers to bypass bricks-and-mortar stores and ship products directly to consumers. At a time when it’s been reported that Walmart has had meetings with vendors demanding lower prices, Progressive Grocer says the intent of the upcoming Amazon meeting is to get consumer package goods manufacturers to think less about creating products that stand out on shelves and more about designing products that can be shipped quickly and easily to customers.

ADVERTISER NEWS One retail chain was saved over the weekend, but another is gone. Stage Stores closed on its purchase of a minimum of 50 Gordmans stores, with rights to assume leases of an additional seven locations. But with no buyer for hhgregg, liquidators started sales on Saturday that will put that chain out of business in an estimated eight weeks. Gregg’s CEO told employees it had held discussions with more than 50 private equity firms, but could not secure a deal with a viable buyer……Fred’s March comparable store sales were down 0.5%, completing a fiscal quarter at down 3.6%. As for its attempt to take over Rite Aid stores to be spun off if the Federal Trade Commission eventually approves Walgreens’ takeover of Rite Aid, Fred’s says it remains committed to buying up to 1200 stores, which would make it the third largest drug chain in the nation. For its current stores, initiatives to roll out beer and wine sales and upgrade its cosmetics assortments are this year’s priorities……The delayed Chrysler Pacifica hybrid minivan, which had been promised for a first quarter delivery to dealers, will finally start shipping next week. The Pacifica is the first plug-in minivan on the market and is rated at 84 miles per gallon using both electric power and gas with a total range of 566 miles on a single charge……The National Automobile Dealers Association reiterated its 2017 forecast after seeing the numbers for the first quarter, saying it expects a sales total of 17.1 million vehicles, which would be a 2.5% decline compared to the record set last year. “What we’re looking at is still a very strong year,” NADA Chief Economist Steven Szakaly said. “As far as the new-car part of the business, we are still very optimistic”……While GameStop is closing stores of its flagship business, the ThinkGeek business it acquired in 2015 is headed in the opposite direction with expansion plans. The chain that specializes in sci-fi, anime, and comic book collectibles reported a total sales gain of 28% in the latest quarter, with strength from Pokemon toys and apparel……Costco had a very strong March with comp store sales up 7% in total and 6% excluding gas……L Brands is still living through a decision to drop swimwear at Victoria’s Secret, where comps for March were down 13%. Sales at Bath & Body Works were flat…… Taco Bell is rolling out a loaded taco burrito as a national limited time offer and testing two new items—a Mexican Crispy Chicken Pizza and a breakfast taco with a fried egg for a shell.... Eastern Outfitters, which filed for bankruptcy in February, is asking for court approval to close 48 of 86 Bob’s Stores (apparel and footwear) and Eastern Mountain Sports (outdoor gear) locations.

NETWORK NEWS A rep for ABC has confirmed that Jimmy Kimmel Live has hired Conan O’Brien’s music booker. Jim Pitt will hold the title of music producer and work alongside current music producer Mac Burrus.……NBC’s competition show series Spartan: Ultimate Team Challenge has signed on Olympian Apolo Ohno, ESPN’s Kelvin Washington, and former MLB all-star Nick Swisher to join M.J. Acosta as the announcers for season two. Inspired by the real-life Spartan Race phenomenon, Spartan: Ultimate Team Challenge features teams of friends, families and coworkers competing to finish a grueling half-mile long obstacle course and win a $250,000 prize. Ohno and Washington will deliver play-by-play announcing for the upcoming season, with Acosta and Swisher serving as sideline reporters. The program delivered an average 1.3 18-49 rating and 4.2 million total viewers, according to Nielsen live-plus-seven numbers. Season two of Spartan: Ultimate Team Challenge will premiere on Monday, June 12th at 10 PM (ET) following American Ninja Warrior……Viewers who stick around during the ads on Saturday Night Live will get a look at a Verizon spot written by Weekend Update anchor Colin Jost, and featuring long-time cast member Keenan Thompson. It’s all part of an ongoing effort by NBC and producer Lorne Michaels to make the show more compelling to watch live, rather than catching up via clips the next morning. Michael’s said, “Everyone is struggling now in a world where there is so much media. We are all competing for sponsors, and everything is being reinvented. SNL has been reinventing itself since season two.” The price of a 30-second spot in Saturday Night Live is $110,000 according to Standard Media Index, a tracker of ad expenditures, compared to $76,900 just a year ago. The bump is due to the 43.5% increase in ratings in February. SNL is enjoying its highest-rated season in more than two decades……CBS has renewed Criminal Minds for a 13th season. The renewal is the 19th returning series picked up for the 2017-2018 season by the network. Renewed shows include The Big Bang Theory, Life in Pieces, Blue Bloods, Mom, Madam Secretary, 48 Hours and 60 Minutes. Bull, MacGyver, Kevin Can Wait, Man with a Plan and Superior Donuts all got second season renewals. Noticeably absent was the Joel McHale series The Great Indoors. …NBC has tapped Chris Hardwick (The Wall, Talking Dead) to host The Red Nose Day Special, airing at on May 25th.

21st CENTURY INVESTIGATES O’REILLY Variety reports that 21st Century Fox, the parent company of Fox News, will investigate the sexual harassment claims leveled at host Bill O’Reilly, according to the lawyer of one of his accusers. Civil rights attorney Lisa Bloom, who is representing former “The O’Reilly Factor” contributor Wendy Walsh, said she was told by the company’s lawyers that they would launch an investigation based on Walsh’s accusations. Walsh told the New York Times that O’Reilly backed out on a promise to get her a job at Fox News after she rejected his sexual advances.

A CHANGING APPROACH TO LATE NIGHT NEWS Broadcasting & Cable reports that Fox O&O WOFL (Fox 35) Orlando is dumping the traditional half hour late newscast in favor of two non-traditional – and short – shows. Starting next Monday, NewsEdge 11@11 and The Fox 35 SportsZone will air from 11-11:30 p.m. weeknights. NewsEdge will air uninterrupted for 11 minutes starting at the top of the hour, with daily recaps as well as late- breaking stories – and a full weather forecast. SportsZone will air from 11:15-11:30 p.m., with regional sports coverage. Station VP and news director Jeff Zeller says, “it’s our responsibility to our viewers to weed through the clutter and provide a concise and thorough summary of the news.”

POLITICS: WAIT ‘TIL NEXT YEAR The dust has barely settled on political advertising for 2016, but some in the industry are already gearing up for what should be a huge year of politicals in 2018. Steve Lanzano, President and CEO of the Television Bureau of Advertising, points out the 2018 election will have contests for 34 Senate seats and 36 gubernatorial elections, as well as all seats in the House of Representatives, and he quotes a few studies of 2016 that prove the value of local television advertising. Of great importance of course is the reach of local TV--the Nielsen Total Audience Report shows adults continue to watch more than twice as much TV each week compared to the second and third most- watched media platforms. And he notes TV is also the most influential medium—a recent Morning Consult poll in 10 swing states said almost 60% of respondents named TV as their top influencer of voting decisions. Additionally, a study done by the Video Advertising Bureau added that 79% of undecided viewers said TV was most likely to attract their attention, with more than half saying TV was the biggest influencer of their ultimate decision on who to vote for. Lanzano sums up saying no other medium can compete with TV in reach, influence and effectiveness and campaign professionals should keep that in mind when planning advertising strategies.

BUSINESS BYTES With apparently more to come, CNBC is reporting the number of retailers filing for Chapter 11 bankruptcy protection is heading towards the biggest number since the Great Recession of a decade ago. Consulting firm AlixPartners noted nine such bankruptcies in the first quarter this year, equaling the number for all of 2016, and Alix notes that more than half the filings have come from retailers owned by private equity firms. When private equity buys out a firm in a leveraged buyout, it uses a combination of equity and debt—leaving the retail chain deeply in debt in some cases as it starts out with new ownership. Some private equity firms look for undervalued retailers and find ways to cut costs, sometimes not investing money in areas like the stores or digital operations. Put that together with the continued growth of online shopping, declining mall traffic, and many customers tending to prefer experiences over physical goods, and Deb Rieger-Paganis, managing director of turnaround and restructuring at AlixPartners, says “It’s just kind of this perfect storm where things are coming together and it’s going to continue for a while…This is going to be a cycle.”

AGENCY NEWS The Martin Agency will close its New York office at 71 Fifth Avenue, part of what it calls a strategic decision to focus on its Richmond home office plus one in London. The primary client in New York has been Priceline’s Kayak travel aggregator; Martin’s biggest client GEICO is handled entirely at headquarters in Richmond. The agency lost WalMart business last year, resulting in about 6% of its employees being laid off. Other clients include Discover Card, Hanes, Oreo, Ritz, and Purina.

RISING INTEREST RATES IMPACT BIZ Despite a generally optimistic economic outlook, businesses reported that the recent increase in the federal interest rate is affecting profitability and restricting hiring. Those findings come from the Q1 2017 Private Capital Access Index report from Dun & Bradstreet and Pepperdine Graziadio School of Business and Management. Mid-sized businesses (between $5-100 million revenue) reported both a decline in profitability and an inability to hire new employees due to the higher interest rage environment. Profitability was down six points for the first quarter at 68% compared to 74% from the previous quarter. 27% of these businesses, up from 20% in the previous quarter, said the current financing environment has restricted their ability to hire new employees. Fewer mid-sized businesses reported that “they were able to qualify” for credit in Q1 2017 (55%) than in Q4 of 2016 (62%). In December 2016, the Federal Reserve raised interest rates by 0.25 percent—the second increase of the decade. On March 15, 2017 the Fed initiated another short-term rate hike of 0.25 percent, and signaled two more increases this year amid strong job growth and rising inflation. The Private Capital Access Index report authors note that such interest rate hikes can impact the ability of businesses to borrow capital to maintain facilities, hire employees, and expand operations. The impact of the March interest rate hike will be measured in the Q2 report. “The Federal Reserve’s assessment of improving economic conditions is consistent with many of the Private Capital Access Index’s findings from the past year, but we are also seeing nervousness on the part of business owners due in part to rising interest rates,” said Craig R. Everett, PhD, director, Pepperdine Private Capital Markets Project. While low interest rates in recent years have helped businesses stabilize, he says this quarter’s results suggest that the current rate hikes may negatively impact cash flow and soften hiring throughout 2017.

AVAILS

KOHD ABC / KBNZ CBS in Central Oregon are searching for a Local Sales Manager. The LSM is responsible for developing, leading, and managing a team of account executives (AEs) with the objective of meeting and exceeding the team’s local and regional commercial revenue targets for Zolo Media. Bachelor’s degree OR 4+ years professional work experience, and 5+ years’ experience selling media advertising 2 + years’ team lead and/or leadership experience required. CLICK HERE for more info or to apply now. EOE.

Account Executive: KSTS – Telemundo 48 (Bay area) has a great new opportunity to join the sales team. We’re looking for an experienced sales person who can negotiate and sell commercial airtime for KSTS and other station multi-platforms. We are looking for someone to develop sales revenue from new advertisers as well as maximize revenue from assigned list. Finding and developing new and non-traditional advertisers is expected, as well as developing revenue opportunities for digital platforms. CLICK HERE for more info or to apply now.

Cox Media, Chesapeake/Norfolk/Virginia Beach, VA is searching for a Media Consultant- Generalist. This person sells local advertising and products on cable and/ or broadcast networks to new and existing clients from a range of industries and business sizes, and leverages the position of Cox to influence clients’ marketing strategies. The Media Consultant sells a robust and growing portfolio of products (58 networks, new media, etc.) to create packages to support clients’ marketing plans. CLICK HERE for more details, qualifications and requirements, or to apply now. EOE.

Account Executive: FOX O&O, WTVT, Tampa, FL. This opening at the top rated station in Tampa requires the servicing of existing transactional accounts along with the development of new broadcast and digital business. Candidate must be highly motivated and possess strong presentation and prospecting skills. Position requires prior broadcast sales experience, preferably in an LPM market. College degree is preferred. Please CLICK HERE to apply, or visit us at 3213 W. Kennedy Blvd., Tampa, FL 33609 EOE/M/F/V/D.

A new study found that plastic surgeons make an average of $354,000 per year. “I am shocked,” said one woman’s face... but not her mouth. – Seth Meyers

Quarterback Colin Kaepernick has done a complete 180. He now says he WILL stand for the national anthem. He’s now sitting for the games, but he’s standing for the anthem. – Jimmy Fallon

------SPOTS N DOTS The Daily News Of TV Sales April 10, 2017 Phone: 888-884-2630