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October 26, 2016

Publishing News

Meredith Goes Back to Press With 'Magnolia' Launch to Meet Newsstand Demand
Meredith Corp. announced that, in response to sales and retailer demand in the title's first two weeks of distribution, it has gone back to press to print 200,000 more copies of the premiere issue of The Magnolia Journal. That brings total newsstand distribution to 600,000 for the issue, which has a $7.99 cover price. Within a week after its initial distribution during the week of Oct. 10, major retailers around the country began requesting additional copies, "citing sold-out pockets," according to the company. The quarterly lifestyle magazine is a print extension of Joanna and Chip Gaines' Magnolia brand. "We are thrilled about the immediate success The Magnolia Journal has enjoyed on its release and the excitement it continues to create in the marketplace," says Christine Guilfoyle, Meredith SVP/publisher. "Given Joanna's close connection to all aspects of the project, from editorial conception to artistic direction, we expect future issues to be just as hotly anticipated and deliver equally impactful results. Joanna and Chip's connection to consumers through social channels has been extraordinary."

Might Playboy Return to Nudes, With Hef's Son Now in Charge?
NY Post reports that an ailing Hugh Hefner, 90, has officially stepped down as Playboy magazine's chief creative officer and has been succeeded by his 25-year-old son Cooper. Interim CEO Ben Kohn, managing director of Rizvi Traverse, the magazine’s majority owner, "confirmed the son had risen in the ranks and had taken on the expanded role," writes Media Ink's Keith Kelly. "The appointment startled many insiders who worked on the sweeping redesign that placed scantily clad women in sexy poses inside the magazine instead of showing full nudity. Cooper, while not on the payroll at the time, blasted the change. Rumors are swirling that Cooper would love to pull back the sheets and return to fully nude women next year--but sources say Kohn wants no part of it. The magazine is pursuing branding and merchandising deals that were out of reach when it featured nude models. Cooper, through a spokesman, said he’s still not a fan of no-nudity. 'There has been no change of heart, and I continue to be well aware of what has made Playboy so remarkably special,' he said...'Some aspects of the brand won’t alter, as there have been a number of successful creative and business pivots over the last few years that are worthy of celebration...However...I can assure you certain aspects of our formula will change. We are currently implementing a creative strategy for the brand moving forward...' Editorial director Jason Buhrmester was so upset by Cooper’s appointment that he stopped coming to the office while he worked to put the finishing touches on the January issue, insiders said. He’s already turned in his resignation and is expected to be out around mid-November. Cory Jones, the chief content officer who unveiled the 'safe for work' Web redesign in 2014--which was credited with boosting traffic 230%--was forced out two months ago. Insider Hugh Garvey was named head of content, replacing Buhrmester and Jones. Chief digital officer Phillip More­lock was also banished about two weeks ago, as were about 20 others across the company. Kohn appears unwilling to return to nudes. 'There are currently no plans to change the nudity levels in the magazine,' a spokesman for Kohn said..."

Hearst Buys Aviation Software Company, Camp Systems
WWD: "Hearst has acquired Camp Systems International Inc., an aviation software company, from private equity firm GTCR. The terms were not disclosed. Aside from its media properties, Hearst has a diverse investment portfolio, which includes information-based companies. In recent months, GTR had been exploring the sale of Camp, which according to reports, was valued “as much as” $2B. In 2012, GTR acquired Camp from Warburg Pincus for $675M. Camp is a global provider of "software-as-a-service” solutions for managing and tracking the maintenance of jets, turbo prop aircraft and helicopters used in business aviation, in addition to enterprise information systems used to manage service centers. Headquartered in Merrimack, N.H., Camp has 12 offices around the world, and it serves more than 19,000 aircraft, 30,000 engines and 1,300 maintenance facilities globally...Hearst Business Media president Richard Malloch said: “We look forward to partnering with the CAMP team to capitalize on new opportunities to create more growth, expand its global reach and develop new offerings. Hearst Business Media is committed to growing our information solutions businesses, developing new capabilities and entering new markets.”

Bay Area’s Book Passage to Open Third Store
PW: " Thanks to a persuasive community leader, Elaine and Bill Petrocelli, founders of 40-year-old Book Passage in Corte Madera and San Francisco, Calif., are about to add a third location on the bay, an 1,800-sq.-ft. store in Sausalito. Not only did former Sausalito Chamber of Commerce president Cheryl Popp successfully make the case that the town needed an independent bookstore, but the bookstore hired her to ensure it fits the community’s needs... The 'problem,' Petrocelli explained, is that the holidays are almost here and the store that is currently located in the space they are leasing won’t be vacating until next week. Petrocelli would like to have his store open in time for the holidays. The “opportunity” is a chance to build Book Passage’s customer base and take advantage of a community that draws 2.5M visitors a year... Petrocelli isn’t worried about poaching customers from its flagship location. 'I think we’re opening up another market,' said Petrocelli. 'And we’ve got 40 years of experience.' In addition, he plans to take advantage of the efficiency in numbers that a third store will bring, in terms of buying and back-end functions. Given the new store’s location, practically on the water near the Sausalito Yacht Harbor and a block and a half from the ferry terminal, the Sausalito Book Passage will put an emphasis on boating books, along with travel and Bay Area titles. It will also stock about 30% non-book items, a ratio that has worked to enhance sales at Book Passage's other locations. A grand opening is planned for the Sausalito store in January. Although a date hasn’t been set yet for the soft opening, it could well dovetail with the 40th anniversary celebration that Book Passage has planned for Dec. 3."

National Geographic Partners Hires CMO, Digital Products Exec
National Geographic Partners has named Jill Cress CMO and Rachel Webber EVP of digital product, a new role at NGP. Cress, who had served as EVP of global consumer marketing at MasterCard since 1994; will be responsible for marketing, branding and consumer insights at NGP. Webber, who was SVP of Fox Television Group, is charged with creating growth, engagement and monetization for NGP's digital produccts.

At Hearst, Oprah Talks Magazines, Path to Success
WWD: In a live Q&A with Lucy Kaylin, chief editor of O, The Oprah Magazine, in front of Hearst employees, Oprah Winfrey talked about her dream of success as a young TV anchor, adding: "I realized that I would be more powerful if I stepped into the dream that creation had for me. I stopped dreaming and I allowed myself to be in the dream. If you surrender your will to a greater will, then there’s a flow. There’s an energy field that comes right out of you…that is connected to the energy field out of life. If you can find the current of that and live the dream that’s already dreamt for you, then you don’t have to dream anymore…everything that is happening to you is also happening for you.” Regarding her magazine (now in its 16th year, having published 200 issues and covers featuring Winfrey), she again said that although she'd been approached to launch a magazine by a Condé Nast's Anna Wintour and Time Inc.'s Essence, only Ellen Levine, at that time Hearst's editorial director, was able to convince her. Winfrey acknowledged the challenges of the magazine industry, but underscored the enduring importance and “necessity” of magazine storytelling. She also said that she's voting for Hillary Clinton, because it feels "illogical" to her "to vote any other way."  

Why More Agencies May Launch Their Own Magazines
Adweek: "In late September, J. Walter Thompson's innovation think tank, JWT Intelligence, took some of its proprietary data on the habits of millennial and Gen Z women and decided that rather than publishing another study bogged down by numbers and graphs, it would present the information in a way that more brands and consumers could actually understand—in a women's print magazine. "So often when you're presenting trends, it can seem somewhat intangible and quite often brands will come to us and say, 'What should I do with this data?'" said Lucie Greene, worldwide director of the Innovation Group at JWT. Greene's team created the magazine, titled Glass, mainly to present current and potential clients with digestible stories—from the benefits of co-working spaces to the evolving luxury landscape—that theoretically will help brands and the agency create more effective marketing campaigns. JWT isn't alone in its foray into magazine publishing. Huge launched its own digital magazine, Magenta, in early October while R/GA continues to invest resources into its own title, FutureVision, which will be getting a print and digital redesign with the release of its Nov. 4 issue... The publications not only keep current staff up-to-date on important trends that will help inform their creative, but reach outside the agency as well. "[Glass] is giving brands tangible pointers … and inspiration for things they could learn from, but it also communicates our own insights," explained Greene. For R/GA, which originally created FutureVision as a way to inform employees and clients about the latest trends and technology, the print publication doubles as a tool the agency can use in pitches and strategy meetings with clients. "It became something clients began to ask for more and more. Eventually we started getting requests to do custom research, publications and briefings for our clients," said R/GA global CMO and FutureVision editor in chief Daniel Diez..."

Beatty Is First U.S. Author to Win Man Booker Prize, for "The Sellout"
NYT: " Paul Beatty’s novel “The Sellout,” a blistering satire about race in America, won the Man Booker Prize on Tuesday, marking the first time an American writer has won the award [in its 48-year history]. ...Until 2014, the prize was restricted to novels written by authors from Britain, Ireland and the Commonwealth nations. Previous winners include Margaret Atwood, Kazuo Ishiguro, Peter Carey and Michael Ondaatje." GalleyCat: This is the second time indie publisher Oneworld took the prize. The publishing house won last year with Marlon James’ A Brief History of Seven Killings.


Retail News

Consumers May Spend as Much Online as in Stores For Holidays
CNBC: "According to Deloitte's holiday survey, released Wednesday, shoppers plan to spend 47% of their budgets online, and 47% in stores. The remaining 6% will be put toward other channels, such as catalogs. This is the first time consumers told Deloitte that their budgets would be split equally between the two largest channels. When the firm first asked the question two years ago, 52% of consumer spending was allocated toward stores, while just 40% went toward online. Deloitte's 2016 results were based on a survey of more than 5,000 shoppers. "Every retail location, every physical address, was down," said Rod Sides, who leads Deloitte's retail and distribution unit. "The consumer seems to have turned a corner and is as happy shopping online as they are in a store"...

A&P Sites Still Being Reopened a Year Later
SN: "Nearly a year after A&P shut down and sold its stores in a bankruptcy auction, acquirers are still reopening sites with an eye on reintroducing competition in weary Northeast markets. Queens, N.Y.-based Food Bazaar this week has reopened a former Pathmark in Fairview, N.J. as well as a former Food Basics site in North Bergen, N.J. Next week, the Long Island, N.Y.-based Uncle Giuseppe's Marketplace will hold grand opening ceremonies in a former Pathmark in Ramsey, N.J. Asian specialty store 99 Ranch Market is now hiring for a store at a former Pathmark site expected to open shortly in Edison, N.J. And late last month, a Key Food Stores Cooperative owner reopened at the site of a former Pathmark in Irvington, N.J., using a banner also acquired from A&P during its unraveling last year, SuperFresh. These stores join the dozens of former A&P-owned sites already reopened since the Montvale, N.J.-based retailer imploded in bankruptcy a year ago..."
Supermarket News (paid sub req.)

300+ Krogers Now Offering ClickList
MNB: "Kroger said yesterday that the number of its stores offering its ClickList click-and-collect e-grocery service now stands at more than 300, with even greater expansion planned in 2017, according to an article in Investopedia.Tim McGurk, a Kroger spokesperson, is quoted as saying, “A wide demographic of customers use the service but it seems especially popular for young families, busy professionals, and individuals with mobility issues. There are several options for online grocery shopping, but Kroger customers can choose from up to 40,000 items, including fresh produce, meat, seafood, and deli items. We believe this variety of fresh products sets ClickList apart from other services.”

AmazonFresh Launches in Chicago and Dallas; Expands Restaurant Delivery to Brooklyn
Venture Beat: "Amazon has announced that it’s launching its grocery delivery service in Chicago and Dallas, the latest in a line of expansions for the service in recent times. First launched in beta way back in 2007 in Mercer Island, Washington, AmazonFresh slowly expanded over the next eight years into Seattle, Los Angeles, San Francisco, San Diego, New York, Philadelphia, and Sacramento, among other areas of the U.S. In 2016, Amazon has ramped up its market launches, bringing the service to Boston, Northern Virginia, Baltimore, and to London--its first international launch. The service has also expanded within other markets where it was already available..." MNB, in addition to noting the Chicago/Dallas grocery-delivery news, reports that Amazon is expanding its restaurant-delivery service for Prime members to Brooklyn, NY; and that Amazon is partnering with luxury food group Fauchon, organic food chain Bio c'Bon and wine retailer Lavinia to extend the product range of its Prime Now express delivery service in Paris and its suburbs>'

25% of U.S. Shoppers Use In-Store Mobile for Comparisons, Just 2% for Payment
SN: "U.S. shoppers rank relatively high on a global scale when it comes to mobile device use during trips to brick-and-mortar stores across retail industries, with 37% participating, yet just 2% of U.S. shoppers use a mobile device to make a payment in-store, the findings of GfK shopper research show...Americans are using their phones in-store to compare prices (25%), search for product information (19%), read online reviews (17%) and check availability (14%), but a small group uses it to pay for purchases..."
Supermarket News (paid sub req.)

Dash Button Orders Up 5X in Past Year
MNB: "Amazon said yesterday that orders using its Dash Buttons--a technology that allows customers to place buttons in convenient in-home locations and simply press them to place orders that will replenish supplies--are up more than five times during the past year.The increase likely reflects both increased usage of the buttons as well as an expanded selection of products available via the buttons. Amazon also said this week that it has added 60 brands--including Cheez-Its, Folgers, Milk Bone, Pop-Tarts and PowerAde--to the program, bring the number of brands available via Dash Buttons to more than 200.The buttons cost $4.99 apiece, a fee that is refunded with the first order made using them."

FreshDirect's 1-Day Service, FoodKick, Expands to Manhattan
SN: "FoodKick, the offshoot of e-commerce grocer FreshDirect offering same-day delivery of a curated selection of prepared meals and essentials, expanded service to Manhattan on Tuesday, saying the launch would be supported through a content-driven partnership with Coca-Cola..."

PayPal Partners With Credit Cards to Get Foothold in Physical Stores
WSJ: "PayPal partnered with MasterCard Inc. and Visa Inc.--rather than compete with them--to gain a foothold in the 90% of retail transactions that still take place in physical stores, CEO Dan Schulman said Tuesday. “We think we can be great allies…to advance the cause of digital payments,” Schulman said at the WSJDLive conference...The company recently struck deals with the credit-card companies as part of its strategy to make PayPal a universally accepted method of payment, a year after it split off from eBay Inc."


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