The holiday season was brutal for many retailers, but Target also was hit hard from the massive data breach during the height of the holiday shopping season, a situation still unfolding.

Target said losses related to the data breech were $61 million in the fourth quarter, partially offset by $44 million in insurance receivables.These expenses include costs related to investigating the data breach, offering credit-monitoring and identity-theft protection services to our guests, increased staffing in our call centers, procurement of legal and other professional services, REDcard fraud losses and card replacement costs, and an accrual for a probable loss on payment card networks anticipated claims for operating expenses incurred as a result of the data breach.

The costs do not include any amounts for the potential claims by the payment card networks for counterfeit fraud losses. Target said at this time it is unable to reasonably
estimate a range of possible losses on the payment card networks potential claims in excess of the amount accrued.

Target executives said future earnings will likely be impacted from these ongoing costs for some time.

Avivah Litan, a security analyst at Gartner Inc., a technology firm, puts the costs of the breach from the $400 million to $450 million. That would include the bills associated with fines from credit card companies and services for its customers like free credit card report monitoring.

Target reported net income of $520 million or 81 cents per share, falling 46% from the fourth quarter period in 2012, but inline with the lower guidance given following the data breech. Revenues fell 3.8% year-over-year to $21.52 billion, reflecting the impact of an additional accounting week in the prior year and a 2.5% decrease in comparable sales. Like Wal-Mart, Target gave a lower guidance for this year, which was below the consensus estimate.

So far Wall Street’s action has been favorable to the lackluster report with Target shares rallying nearly 4% in early trading on Wednesday (Feb. 26). Target shares (NYSE: TGT) were trading up more than $2 at $58.59 on heavy volume.

John Brown University hosted a dedication ceremony of the Don G. Soderquist College of Business on Wednesday (Feb. 26) at the Siloam Springs campus. Soderquist and his family attended the dedication and unveiling of the plaque that will hang in the college entrance.

The Donald G. Soderquist College of Business is home to three business programs: undergraduate, graduate and degree completion. These programs provide Christ-centered business education that prepares people to honor God and serve others by developing their intellectual, spiritual and professional lives.

Soderquist spent more than 20 years as a leader at Wal-Mart Stores Inc. and became known as “the keeper of the culture” after the passing of Wal-Mart founder Sam Walton. Soderquist served as chief operating officer and senior vice chairman during a period of exponential growth for Wal-Mart, as the company became the largest in the world with sales of more than $200 billion.

He served on the JBU board of trustees from 1982 until 2009, and served as chairman from 1991 until 2002. He is a trustee emeriti and was inducted into the Arkansas Business Hall of Fame in 2010. Soderquist also is the founding executive of the Soderquist Center for Leadership and Ethics at university.

Condoleezza Rice, former U.S. secretary of state under President George W. Bush, will speak at 7 p.m. Wednesday, March 5, in Barnhill Arena at the University of Arkansas.

The lecture is free, open to the public, and no tickets are needed to attend, according to the UA release. The event is part of the student-funded Distinguished Lecture Series at the university.

Barnhill Arena will be open at 5:30 p.m. for people who are able to arrive early. Free parking will be available after 5 p.m. for those attending the lecture in lot 44, the Stadium Avenue parking garage, and the Baum Stadium East parking lot, on south Razorback Road.

University Transit and the lecture series committee will provide bus shuttle service from Baum East for people attending the Rice event only. Return shuttle service will also be available.

Cameras and personal items will be checked. Pocket knives, large bags, backpacks, strollers, baggage, signs, banners, posters and noise-makers will not be permitted inside the arena.

• General Mills takes stance on Non-G.M.O.
Ken Powell, CEO of General Mills, announced this week that the food giant is not focused on reformulating more products as GMO-free. (GMA refers to genetically modified products.)

He said the company did remove bioengineered ingredients from Cheerios, one of its iconic brands. But, while there was plenty of talk about the issue within the industry, he said sales were not materially impacted from this move.

Powell made those statements during the Consumer Analyst Group of New York conference held this week in Boca Raton, Fla. He noted that non-GMO is “something out there,” but has not “affected competitive performance.”

Post Foods also recently announced its Grape-Nuts brand was certified GMO-free.

Post and General Mills are suppliers to Wal-Mart Stores Inc. and operate a large sales offices in Rogers.

• Kellogg reinvests in shares
Kellogg announced a share repurchase authorization of up to $1.5 billion, which expires on Jan. 2, 2016, the end of the company's 2015 fiscal year. This authorization represents the company's commitment to returning cash to share owners. 

The company also announced a dividend of 46 cents per share payable on March 17, to shareholders of record at the close of business on March 4, and marks the 357th dividend Kellogg has paid to shareholders since 1925.

Home Bancshares, parent company of Centennial Bank, is among the top community banks to comprise the 2013 Raymond James Community Bankers Cup Winners, announced Thursday (Feb. 27).

There were 302 publicly traded community banks with assets between $500 million and $10 billion evaluated for this award given to 30 banks. The award recognizes the top 10% of community banks based on various profitability, operational efficiency and balance sheet metrics. 


Home Bancshares stock posted a stellar 126.2% return last year, good enough to snag the No. 3 spot in that metric. The bank stock placed second in three-year return at 239.1%. In the five-year return metric the bank placed fifth at 204.9%, out performing the major market indexes.

"It is an honor for Home Bancshares to be included with the best of the best of community banks," said Randy Sims, CEO.  "Achieving an honor like this is a tribute to the dedication, determination and success of our very talented team of bankers and board of directors."

Shares of Home Bancshares (NASDAQ:HOMB) closed Thursday at $33.87, down 8 cents. For the past 52 weeks the share price has ranged from $16.68 to $38.98.  Analysts with Wunderlich Securities recently upgraded the shares from neutral to buy.

Western Rogers is poised to get more retail development, this time it’s just south of the Pinnacle Promenade in the Pleasant Crossings district.. Whisinvest Realty plans to build a 22,000 square foot retail center.

Pleasant Crossing Shops will be located at 2600 W. Pleasant Crossing Dr. off of exit 81 on Interstate 540. Businesses moving into the development include SNAP Fitness, two restaurants and a nail salon/spa. 

At this time, there is just over 3,000 S.F. of space still available, the company notes in the release.

Burke Larkin, senior vice president with Whisinvest Realty said, “The city of Rogers is a great location for business and we are very excited to be moving this project forward.“This is the first of several upcoming projects for the Pleasant Crossing area and we are thrilled to get this ball rolling on the next stage of development for this area.”

Rogers Mayor Greg Hines said it’s always exciting to see dirt being turned and new buildings going up around town.

“This new shopping center will give the citizens of Rogers more retail options and is the latest in a long line of business growth and job creation happening throughout Northwest Arkansas,” Hines said.

Dr. Susan Averitt of Best Start Pediatrics will host the third annual Read Across America celebration at her clinic from noon to 1 p.m on Monday, March 3. During this time volunteers will read Dr. Seuss books to her pediatric patients and guests. 

Best Start Pediatrics is located on the campus of Willow Creek Women’s Hospital at 5501 Willow Creek Dr., Suite 104 in Springdale.
 
The Delta Kappa Gamma teachers' sorority from Rogers are providing the books during that hour as part of the “Reach Out and Read” program, which also allows the clinic to distribute a book to each patient at well-child exams.

For more information, or to volunteer as a reader, call Averitt’s office at (479) 575-9359.
 

Grocery is more than 55% of Wal-Mart Stores Inc. sales, most of that in their stores, but the retailer continues to focus on its expansion of online grocery and delivery business options.

Wal-Mart confirmed it acquired recipe technology company Yumprint for an undisclosed amount. Yumprint, founded in Seattle in 2011, operates a website and mobile app that allow consumers to search food blogs, plan meals and calculate nutritional information.

“Yumprint founders Chris Crittenden and Wes Dyer had a vision for how technology can improve the way all of us discover and prepare our meals ... Chris and Wes’s ideas and ambitions for transforming the grocery shopping experience match the global opportunity Walmart enjoys in this space, and their accomplishments with Yumprint just scratch the surface of what we’re going to do next together,” notes Ben Galbraith a Walmart.com blogger.

The retail giant recently launched Walmart to Go grocery delivery pilots in the San Francisco/San Jose area and Denver. Bill Simon, CEO of Walmart U.S., recently said the retailer is pleased with those results, even though it’s just a small pilot. Simon said the service in Denver has garnered a 90% customer approval rating.

Walmart To Go is the part of a home delivery craze, as each retailer tries to trump the other. Analysts believe Wal-Mart could expand home grocery delivery anytime it wants, but the retailer doesn’t yet see ample consumer demand to justify the costs in the U.S. The retailer has also said it has learned the nuances of home delivery in part from its British banner ASDA.

Wal-Mart intends to roll Yumprint into its e-commerce operation in San Bruno. Crittenden and Dyer have joined the WalmartLabs team.

Wal-Mart grew its global e-commerce sales to $10 billion last year, a gain of 30%.

Charles Holley, chief financial officer for Wal-Mart Stores Inc., gave the following forecast for the retailer’s e-commerce business during a recent earnings call:

"We expect to grow Global eCommerce sales to over $13 billion this fiscal year, with continued focus on the U.S., U.K., China and Brazil. Our websites in Canada and Mexico are starting to gain even more customer traffic. We continue to step up investments in Pangaea, our global technology platform, which helped drive sales across our retail websites in the U.S., the U.K. and Brazil. This growth is enabled by investments we’re also making in fulfillment and replenishment. Our online websites had their most successful year in fiscal 2014, and we continue to offer a great omni-channel experience for our customers."

Tyson Foods’ oldest processing plant, now dedicated to Cornish hens, recently received an award from the Arkansas Department of Labor for its safety record.

The plant achieved 13 million work hours without a lost day due to a work-related injury or illness. The timeframe for this achievement covered nearly 15 years — Feb. 26, 1999 to Jan. 11, 2014.

The Tyson Foods plant located on Randall Road in Springdale was built in 1958 and employs 358 workers.


The award is presented to companies that excel in-on-the-job-safety records, as noted by the state labor department, the Arkansas Insurance Department and the Arkansas Workers’ Compensation Commission.

Cobb-Vantress, a subsidiary of Tyson Foods Inc., said it’s investing nearly $1 million in a three-year research collaboration with the Roslin Institute at the University of Edinburgh.

Researchers hope to identify innovative ways to improve avian health, while also develop new technologies to understand and preserve poultry genomes, the release said.

“

These are exciting new areas which we hope will lead to major breakthroughs in avian health and preservation.” said Dr Christine Daugherty, chief technology officer of Cobb.
“

She said Cobb has an extensive gene pool and to be able to better understand the poultry genome will be critical to meeting future demands for poultry products.

"We’re always striving to breed more robust chickens that will withstand disease and environmental challenges. We’re looking for birds with greater immunity to diseases or with the ability to tolerate disease without affecting their performance," Daugherty said.

The collaboration will support research by graduate students and is for an initial three years, with potential for renewal, according to the release. This agreement is one of more than 30 research projects that Cobb has been supporting in 18 different universities across the globe over the past five years, the company said.

Wal-Mart is honoring more than a dozen trucking and transportation partners as its “Carriers of the Year.” This recognition from the retailer is the best of the best from its 400 third party carriers that provide transportation for the Wal-Mart Stores Inc. The retailer also recognizes an individual as Transportation Carrier Representative of the year.

“When Wal-Mart chooses a carrier partnership, we look for companies who provide outstanding service, effective communication, and for a company that will exemplify Wal-Mart’s mission to ‘Save people money so they can live better,’” said Kevin X. Jones, Vice President of Walmart Inbound Transportation. “Wal-Mart is fortunate to have worked with many companies that have accomplished this task.”

Wal-Mart awards this designation each year to companies who provide support to Walmart stores, Sam’s Club’s and distribution facilities located throughout the continental United States.

The Wal-Mart Carriers of the Year, for services provided during 2013:
• FedEx Corporation - Small Parcel
• Averitt Express - LTL Regional
• Saia LTL Freight - LTL National
• Swift Transportation - Grocery Dedicated
• Hub Group - Intermodal
• Go To Transport - Diversity
• Decker Truck Line - Temperature Control Gold*
• Prime Inc. - Temperature Control Platinum*
• Legacy Supply Chain Services - Sam’s Club Carrier of the Year
• Tango Transport - General Merchandise Gold*
• Celedon - General Merchandise Platinum*
• Heartland Express - General Merchandise Diamond*
• U.S. Postal Service - Innovation
• Charlie Crawford, UPS - Carrier Representative of the Year

* Gold, platinum and diamond designations are relative to fleet size, smallest to largest, respectively.

FedEx Corp. said its subsidiary less-than-truckload unit FedEx Freight will increase its rates by an average of 3.9%. The new rate will take effect March 31 and apply to all shipments in the U.S., Mexico and Canada.

This rate increase follows a 3.9% hike in the carrier’s Express and Ground parcel units that took effect in January. Freight rates rose 4.5% last year as carriers phase in new equipment and driver requirements.

Electronics retailer RadioShack continues to fight for its existence despite same-store sales sinking 19% in the recent quarter. The Texas-based retailer said it will close up to 1,100 stores across the U.S. as it shrinks its footprint amid escalating losses.

CEO Joseph Magnacca said the closures would leave RadioShack with more than 4,000 U.S. stores, including more than 900 dealer franchise locations. The company didn't immediately identify which stores will be closed or how many jobs would be affected.

In Northwest Arkansas there are no corporate-owned stores, but there are three franchise locations operated by Vaughn Electronics. These are not expected to be impacted by the other closures. There are two corporate stores in Fort Smith, representatives at both locations said the list of closures has not been released.

The company said that the stores targeted for closures are being selected based on location, area demographics, lease duration and financial performance.

In the quarter ending Dec. 31, RadioShack lost $191.4 million, or $1.90 per share. Losses widened from deficits of $63.3 million or 63 cents a share, a year earlier. Revenue declined to $935.4 million from $1.17 billion. Wall Street was looking for higher revenue of $1.12 billion.

In the past two years RadioShack has recorded losses of $539.6 million. Shares of RadioShack fell 46 cents, or 17% to $2.26.

Analysts said the electronics space is challenging for all the players, and with Best Buy and Amazon firmly stationed, it’s unclear how much room there is for niche players and other big box retailers.

Old man winter continues to show his ugly hand across much of the U.S. with the start of spring still more than two weeks away. 

Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, said this latest blast of winter weather caused problems for cattlemen, impacting beef distribution and consumption. He said cattle and beef markets are exhibiting volatility with disruptions in supply and demand.

Boxed beef prices increased sharply last week with Choice values up $10 per hundredweight to finish the week at $225. Fed cattle prices increased to end the week at about $150 per hundredweight.
 
The U.S. Department of Agriculture reports beef production for the year is down 6.9% compared to last year with total cattle slaughter down 7.5% year over year. Peel said average cattle carcasses have been 4 pounds heavier which has helped to mask some of the underlying cattle production. 

For the year to date, steer slaughter is down 6.5% heifer slaughter is down 10.7% and cow slaughter is down 11%, all compared to the same period last year, according to USDA reports.
 
Peel said winter storms impact cattle performance in feedlots and those impacts will be evident in the market for several weeks. Additionally, later storms that occur during spring calving season have more potential for long term impacts on cattle production for many months. Winter weather takes cattle performance and production out of the system that is never recovered and further reduces beef supplies in an already declining beef production situation, he said.

Arkansas cattlemen have seen more rain this year and with decreasing feed costs, experts at the University of Arkansas expect them to rebuilt their herds at a faster rate than the nation at large. (See an Arkansas Farm Bureau video below on efforts to rebuild cattle herds in Arkansas.)

This winter has been tough for packers as they continue to run negative margins averaging losses of $81 per head last week. Profits turned into losses in February amid rising live cattle prices and tepid demand, according to Sterling Profit Tracker.

Target said Beth Jacob, the retailer’s chief information officer resigned today (March 5) amid a restructuring of its information and compliance division following the pre-holiday data breach. Jacob has overseen information security since 2008 for the retailer.

Target CEO Gregg Steinhafel said the company will search for an interim chief information officer who can help guide the company through the transformation.

The retailer said it is working with an outside adviser, Promontory Financial Group, to help it evaluate its technology, structure, processes and talent as part of the divisional restructuring.

Bentonville-based Collective Bias continues to expand its services in shopper media, posting a 100% annual growth rate in its business last year, according to CEO Bill Sussman.

"Our company was founded on the idea that brands and retailers can work together with social influencers to produce engaging content that delights shoppers and transforms the buying experience," Sussman said. "We are thrilled to be able to offer programs that increase our community reach and empower our members to create the unique and engaging stories that brands and retailers need to impact sales."

High on the list for retailers and suppliers alike are connecting with the growing Latina shopping base. Collective Bias is launching ColectivaLatina, a new community of bloggers within the Collective Bias Social Fabric, that are focused on producing content with the Hispanic shopper in mind.

The company said this niche network will allow advertisers to reach the general market influencers in addition to the key Hispanic target. The ColectivaLatina online community is comprised of several hundred Hispanic shopper experts with a combined reach of more than 12 million viewers, according to the release. Through the creation of content with cultural relevance, Sussman said ColectivaLatina brings new opportunities for brands to connect directly with a community that seeks social content for inspiration and to drive their purchase decisions.

Also on tap for Collective Bias’ bloggers is a new web-based university — SoFabU — that provides curriculum and online resources such as plug-in installation, monetization and working with brands. These classes are free and available to of the company’s bloggers, which are collectively referred to the Social Fabric.

Lastly, Collective Bias announced it will host a dozen Twitter parties in the next two months which are detailed on its SoFabChats page. These social media conversations can help brands seek key insights into consumer attitudes and sentiment.


Arvest Bank has promoted Stephen Boyd to consumer lender for the bank’s Springdale market. Boyd, previously a personal banker for Arvest in Springfield, Mo., is excited to relocate to Northwest Arkansas, according to the bank's release.

He first joined Arvest Bank as a teller in 2011. Since then he worked as a financial service representative and was promoted to personal banker in 2012.

 “Stephen is a native of Springdale, so he has a great understanding of our community,” said Christy Queary, vice president and consumer loan manager for Arvest Springdale. “Stephen’s experience will add strength to our team and our ability to help people with their loan needs.”

Boyd graduated from Springdale High School in 2006 and earned his bachelor’s degree in business administration from Missouri Southern University in Joplin, Mo., in 2011. He and his wife, Hillary were married in 2011. The couple attends Fellowship Church in Lowell.

The U.S. Department of Defense has awarded Tyson Foods a three-year contract worth a maximum of $444 million to supply chicken to the federal government, according to March 4 release.

The contract, for commercial chicken items, is described as fixed-price, with an economic price adjustment component. Overseas vendors supporting overseas military customers also will order from the contract, the department said.

Tyson was chosen from a group of nine offers received through a competitive bid process.

Shares of Tyson Foods reacted favorably to the news, the stock price closed Wednesday (March 5) at $40.42, up 2% or 82 cents higher on the day. For the past 52 weeks the share price has ranged from $22.47 to $40.80.

Fayetteville attorney Timothy Brooks has been confirmed by the U.S. Senate to serve as a U.S. District Court Judge for the Western District of Arkansas.

“The federal bench needs judges that are fair and impartial, and Timothy Brooks is a perfect fit,” U.S. Sen. Mark Pryor, D-Ark., said in a statement. “While I’m disappointed partisan gridlock delayed his confirmation, I’m pleased Senator Boozman and I were able to work with our colleagues and get him confirmed. I have no doubt that Brooks will be an asset to the federal bench and the Western District of Arkansas.”

U.S. Sen. John Boozman, R-Ark., also praised Brooks’ confirmation.

“Timothy Brooks has the experience, background and temperament to unanimously qualify him for the job. I am confident that he will do an excellent job in this role and make Arkansas proud of his service,” Boozman said in the statement.

Brooks is a partner with Taylor Law Partners, LLP in Fayetteville, Arkansas. Brooks has spent his entire 24-year legal career with the firm, becoming a partner in 1993. During his legal practice, he represented individual plaintiffs and corporate clients in complex civil litigation in both federal and state courts, with an emphasis on commercial and medical malpractice cases.

Brooks earned a bachelor’s degree in business administration from the University of Arkansas and a juris doctorate with honors from the University of Arkansas School of Law.

Office supply retailer Staples will close 225 stores in North America by the middle of next year seeking to trim costs amid a weaker sales climate.

Staples said it is aiming to save $500 million annually through the closings and other cost cutting measures. The closings represent about 12% of Staples store fleet.

This announcement follows the purging trend moving across the retail channel since the the start of this year from Macy’s and Sam’s Club to the recent 20% store reduction from RadioShack.

"Our customers are using less office supplies, they're shopping less often in our stores and more online, and their focus on value has made the marketplace even more competitive," CEO Ronald Sargent said during an earnings call Thursday, March 6.

Office Depot said last week that it expected sales to continue falling in 2014, after reporting a surprise quarterly loss.

Staples' sales dropped 10.6% to $5.87 billion in the quarter ended Feb. 1. Analysts consensus was an expected $5.97 billion. Same-store sales in North America, excluding sales through Staples.com, fell 7% as Staples sold fewer business machines, technology accessories, office supplies and computers.

Net income from continuing operations rose to $212 million, or 33 cents per share, from $90 million, or 14 cents per share, a year earlier.

Staples said is putting more emphasis on e-commerce opportunities as nearly 50% of its sales now are online.

"A year ago, we announced a plan to fundamentally reinvent our company," Sargent said. "We're meeting the changing needs of business customers and taking aggressive action to reduce costs and improve efficiency."

Shares of Staples (NASDAQ: SPLS) tumbled more than 15% in early trading on Thursday at $11.31, down $2.08