Whether it’s underestimating supply chain costs, falling off trend or being kicked off the shelf by a knock-off product from larger suppliers, selling to the masses is not without its challenges. That was one of the major themes covered by industry veterans who spoke at the Selling to the Masses CPG (consumer packaged goods) School held in Bentonville on Wednesday (April 8).

Bill May, retired Wal-Mart buyer and merchandising manager, said selling to brick and mortar stores is more difficult as the largest suppliers which are growing through mergers and acquisitions are often allotted the majority of shelf space. He said prospective suppliers need to realize that if they get into a retail store than it likely means someone else has been kicked off the shelf. Also, innovative products may disrupt the status quo.

“Buyers are not interested in ‘Me too’ products,” May said.

Getting on the shelf was the easy part, said Rick West, CEO of Field Agent, who took a product to market only to lose his shelf spot from competitive trends to which he wasn’t paying appropriate attention.

“If you think getting on the shelf was the hard part, it might have been. Staying on the shelf is harder,” West said. 

He shared a personal story of how he took an idea to market for disposable man wipes after he found his friends using baby wipes on a canoe trip on the Buffalo River a few years ago when there was not a like product in the marketplace.

“We made it through the entire process of concept to prototype in three months and got on the shelf in six months time,” West said. 

West adds that while he was riding the wave for his one product, other larger suppliers expanded into this new category squeezing his product out. 

“The good news is that our product ranked No. 5 for the year, but bad news was that the buyer only kept the top three,” West said. 

He said not staying on top of expansions into the new category and not working toward expanding the scope of his product development were crucial mistakes that resulted to shelf displacement.

West also said small suppliers today have opportunities today that didn’t exist just five years ago. He said with the advent of 3-D printing, startups no longer have to rely on manufacturers to do everything. 

On the bright side, he said there are going to be items that can be sold at better margins that can be prototyped yourself. But he warns potential suppliers to be experts in the categories because “there will always be tons of folks trying to knock you off.”

“Once you put your idea out, and it starts to spread like crazy others will copy it. You need to look no further than Uber and Lift and other crowdsourcing taxi services that have cropped up around the country in the past two years,” West said.

May said suppliers who manage to get placement into retail stores often underestimate the priority they must give the supply chain, which is the metric that keeps the shelves replenished.

Colby Beland, vice president of sales and marketing at CaseStack, seconded that assessment. Beland spoke on the mistakes commonly made by small-to medium-size suppliers who underestimate their supply chain costs that can vary greatly between different retailers.

He said with Wal-Mart’s 42 distribution centers (DC) network there can be added costs to the supply chain as each DC supplies about 90 stores. If a supplier is in 10 stores in the West and the rest of the stores are east of the Mississppi River, Beland said that can mean some of the DCs are only getting one case per week, which is far most costly than a full truck load at other retailers who have fewer DCs. 

For suppliers with multiple products it can be more complicated as the pick, pack and fill pallet charges add to the costs. He said unless a supplier is willing to invest in overseeing the supply chain themselves with added personnel they likely need to partner with third-party service providers. May said there are a plethora of third-party service providers that can facilitate small suppliers with everything from product prototyping to shipping and replenishment to in-store merchandising. 

Beland said supply chain costs are rising from 4% to 10% each year, and when there are capacity restraints like the West Coast Port issues or a weather event, costs to move product will spike given that there are only so many trucks on the road.

He said suppliers must also be aware of penalties that can result when product gets clogged up in the supply chain. Whether it’s fines and fees from additional labeling requirements, missing the Must-Arrive-By-Date or not following pallet requirements, the fines demanded by retailers can be hefty and may be an unpleasant surprise for small suppliers operating on tight budgets.

Gov. Asa Hutchinson told a group of startup executives and entrepreneurs visiting Little Rock that one of his educational visions is for 20% of Arkansas students to eventually take computer coding classes while in high school.

“When that happens, we will be producing and putting 6,000 computer coders into the Arkansas economy every year. Does that not have the opportunity to provide a lot of ‘sauce’ to the entrepreneurial spirit of Arkansas? That is what I am excited about,” the governor told a touring delegation of tech and startup entrepreneurs at the downtown Little Rock Venture Center.

The group was in Central Arkansas at the invitation of the Venture Center, the Little Rock Chamber-created nonprofit startup accelerator that is one of the new tenants housed in the downtown Technology Center. The guest entrepreneurs were in town to talk with local officials about ways to further develop the region’s so-called “startup ecosystem,” organizers said.

In his 15-minute conversation and Q&A session with about 15 startup executives and tech innovators from across the U.S., Hutchinson told the story he now often tells in economic development and business settings of his recent interview with Wired Magazine about the state’s national leadership role in teaching computer coding at the high school level.

During the recent legislative session, state lawmakers passed a law that was part of Hutchinson’s legislative agenda mandating that computer coding be taught in high schools and charter schools across the state. The Arkansas House voted unanimously in early February to pass House Bill 1183 by Rep. Bill Gossage, R-Ozark, which Hutchinson has touted as his signature education proposal. The bill, now Act 187, also will create a temporary task force to explore avenues for the computer science course to be offered.

In addition, local school districts will be able to create their own classes or take advantage of the Arkansas Department of Education’s Virtual Arkansas course. The usual fee of $2,500 charged to districts to offer a Virtual Academy course will now be waived. On Wednesday at the Venture Center, Hutchinson also mentioned he has allocated $5 million to support his key initiative.

“I want to tell you how important this is to the state of Arkansas. We can’t grow our economy without entrepreneurs,” Hutchinson said. “We can’t grow our economy without new ideas, new investment strategies, startup businesses, new ventures and entrepreneurs taking risks.”

The governor added: “Our job is to make sure we continue to lead the nation.”

Before the governor talked with the group, Little Rock Mayor Mark Stodola welcomed the visiting delegation to the city and spoke about his administration’s efforts to bring the $22 million Little Rock Technology Park to the downtown area. He said he was proud of the fact that the city was able to approve a $22 million tax for the project in the middle of a recession.

Wal-Mart Stores said Wednesday (April 1) that 16,257 of its employees in Arkansas will receive a pay raise beginning with the April 4 pay period. The increase, part of the $1 billion pay and benefit raise the company announced Feb. 19, ensures that all employee pay is at least $9 per hour.

CEO Doug McMillon said in the February announcement that pay would rise to $9 an hour in April and $10 an hour by February 2016. Wal-Mart spokesman Scott Markley said approximately 500,000 U.S. employees will receive raises beginning with the April pay period.

Wal-Mart is also raising the average pay of department managers to $13 per hour and up to $15 by the following year. The plan includes providing workers more opportunities for training flexibility over their own schedules.

The information shared Wednesday by Wal-Mart noted that Arkansas employees will earn at least $1.75 above the federal minimum wage and $1.50 above Arkansas’ minimum wage. Federal minimum wage is $7.25 an hour. Arkansas’ minimum is $7.50, but will be $8 in Jan. 1, 2016, and rise to $8.50 on Jan. 1, 2017.

And according to Wal-Mart, the average hourly wage for a full-time company employee in Arkansas is $12.28, or a little more than $25,500 annualized. Arkansas’ mean annual wage as of 2013 was $37,340. Arkansas’ median household income in 2013 was $40,768.

“Starting wages are just one part of Walmart’s commitment to providing associates with clearer career opportunities,” the company noted in the statement. “Through its Opportunity initiative, Walmart is opening doors for existing and new associates by providing increased scheduling flexibility and control, and new training opportunities for continued growth and advancement beyond entry-level jobs.”

Critics have said Wal-Mart is moving ahead of a national trend toward a higher minimum wage. OUR Walmart, a labor funded group that pushes for better pay and benefits, has said Wal-Mart should move to a $15 an hour minimum wage.

Claire McKenna, of the National Employment Law Project, said Wal-Mart and other retailers raising wages to $10 per hour is antiquated given that many states and cities are already mandating higher minimum wages. McKenna said Costco’s base pay of $12 per hour and Ikea’s starting $11 wage are already setting higher standards than Wal-Mart, the nation’s largest private employer.

Economic conditions in Arkansas’ three largest metro areas were relatively healthy in the fourth quarter of 2014. Small improvements were seen in the central Arkansas and Fort Smith areas, and overall solid numbers continuing for the Northwest Arkansas economy, according to The Compass Report.

The quarterly Compass Report is managed by The City Wire, and is sponsored in the Fort Smith area by Arvest Bank. The report is the only independent analysis of economic conditions in Arkansas’ three largest metro areas.

Compared to the fourth quarter of 2013, economic conditions were improved in Central Arkansas and the Fort Smith metro area, and down slightly in Northwest Arkansas. However, Northwest Arkansas remains by far the state’s most vibrant metro economy.

To underscore the impact of the three largest metro areas, for December of this year the unemployment rate for the rest of the state was 6.5%, down from 8.4% in December 2013. The statewide unemployment rate with the three largest metros added back in was 5.6% December-on-December.

Slow and steady improvements in the national economy should continue to help Arkansas’ economy in 2015, said Jeff Collins, the economist for The City Wire who gathers the extensive data used in The Compass Report. He is also a former director of the Center for Business and Economic Research at the University of Arkansas.

“Output growth has been solid over the last 3 quarters. This coupled with relatively strong employment growth has reduced the economic concerns of U.S. households and businesses,” Collins noted in his analysis of fourth quarter 2014 economic conditions. “Indeed, many economists expect output to grow between 2.5% to 3% for the foreseeable future barring unexpected shocks such as the extreme winter weather which significantly reduced output in the first quarter of the year.”

FORT SMITH REGION
The Compass Report for the Fort Smith area posted a C+ grade for the fourth quarter, unchanged compared to the C+ in the third quarter of 2014 and unchanged compared to the fourth quarter of 2013.

Gains in building permit values, sales tax collections and continued improvements in the region’s hospitality (tourism and travel) sector resulted in the slightly better than average grade. Decline in regional employment is the primary reason the region struggles to consistently trend toward the positive.

Non-farm employment in the metro area hit 116,700 in December, down from 117,300 in December 2013. The report also shows how many jobs have been lost since the Great Recession. In December the total number of employed in the MSA was an estimated 118,635. By contrast, total employment in December 2006, prior to the recession, was 130,702.

Sales and use tax revenue reported by the Arkansas Department of Finance & Administration were up quarter-on-quarter 5.5% after adjusting for the increased rate in Crawford County. Collections were particularly strong in October.

Although regional economic conditions have stabilized, Collins said the trends show that the overall labor market has “weakened.” He said the data make it hard to predict future patterns.

“Data for the Fort Smith regional economy had been mixed for some time. The most recent numbers do nothing to shed light on the long-term prospects for the region. Finally, the data for the Fort Smith area economy suggest the region has not performed as well as other key metros but has performed similarly to the state as a whole,” Collins wrote.

Rodney Shepard, president and CEO of Arvest Bank in Fort Smith and the River Valley Region, said the Fort Smith regional economy was hit hard but has stabilized.

“I still remain encouraged. ... As a community, yes, we would like to see better numbers, but in this environment and in this economy, I see this as a positive,” Shepard said.

NORTHWEST ARKANSAS
Continued gains in employment, sales tax revenue and construction resulted in a solid grade of B for the Northwest Arkansas economy during the fourth quarter. However, the grade was down from a B+ in the third quarter and a B+ in the fourth quarter of 2013.

The Northwest Arkansas regional economy continues to grow but at a more moderate pace than in previous quarters. For example, nonfarm employment grew at the same rate as Central Arkansas where it had previously been adding employment at two to four times the rate of the state’s largest MSA.

Employment growth may be slowing but sales and use tax collections in Northwest Arkansas have definitely not stopped growing. Tax collection numbers show that Bentonville, Fayetteville, Springdale and Rogers have experienced growth quarter-on-quarter. In percentage terms, Bentonville experienced the strongest growth in collections (20.7%) while Fayetteville collected the most tax dollars of any of the four major municipalities ($9.6 million in the fourth quarter).

Collins expects the Northwest Arkansas economy to do well in early 2015.

“There is no reason to predict that growth will slow and will likely accelerate in the first half of 2015,” he noted in his analysis.

CENTRAL ARKANSAS
Economic conditions in central Arkansas, the state’s largest metro area, received a grade of C+ in the fourth quarter, better than the C in the third quarter and better than the C- in the fourth quarter of 2013.

Improvements in employment and impressive gains in the construction sector helped boost the grade higher. Non-farm employment stood at 350,900 in December, better than the 345,900 in December 2013. There were an estimated 18,700 jobs in the region’s construction sector in December, well ahead of the 15,900 in September 2013.

Collins said the area also benefitted from a 1.3% gain in retail activity in the region during the fourth quarter compared to the same period in 2013.

“Most recent economic data for Central Arkansas is encouraging. The local economy had struggled to gain momentum so the declining unemployment rate and growth in non-farm employment positive signs the region may be returning to trend. Whether this is an anomoly or a harbinger of things to come remains to be seen,” he said.

NATIONAL ECONOMY
“Grudgingly slow” gains in the U.S. labor market, gains in business investment and increases in consumer spending during the fourth quarter of 2014 point to modest national economic growth in 2015. Collins said the more stable economic outlook is allowing the Federal Reserve to end its monetary stimulus policies and begin setting the stage for short-term interest rate increases.

The continued low prices for energy is nothing short of a “tax holiday for the consumer,” Collins said. Real personal consumption expenditures grew by 4.4% in the fourth quarter compared to an increase of 3.2% in the third quarter. He expects the demand will continue, with slowing growth in China and economic weakness in the European Union likely to result in low energy prices for the foreseeable future.

He also noted that retail sales continue to grow at an annualized rate of 2.5%. (Link here for a more detailed report on national economic conditions and risks to the U.S. economy.)

DATA AND REPORT DOCUMENTS
Link here for the raw data used to prepare The Compass Report for the three metro areas.

Link here for more narrative about regional and national economic conditions.

UNDERSTANDING THE COMPASS REPORT GRADES
A key factor in understanding The Compass is in understanding the “grading” approach used to measure the current and leading economic indicators.

The strategy is to place the most recent data in historical context. Average values for the percent change over the referenced time period were calculated, as were standard deviations for each measure.

The more similar current values are to historic averages the more likely the indicator grade is to be a “C.”

The farther away the observed value, as measured by the standard deviation of the data, the more divergent the grade from “C.” In other words, “C” reflects no change in economic activity. The grades “B” or “A” indicate improvement above the historical average, and “D” and “F” indicate a decline in economic activity compared to the historical average.

REGIONAL GRADE HISTORY
FORT SMITH REGION– Fort Smith regional economy
4Q 2014: C+
3Q 2014: C+
2Q 2014: C
1Q 2014: C
4Q 2013: C+
3Q 2013: C+
2Q 2013: C
1Q 2013: C-
4Q 2012: C
3Q 2012: C-
2Q 2012: C-
1Q 2012: C-
4Q 2011: C-
3Q 2011: C
2Q 2011: C
1Q 2011: C-
4Q 2010: C-/D+
3Q 2010: C-
2Q 2010: C-
1Q 2010: C-
4Q 2009: D
3Q 2009: D
2Q 2009: D-
1Q 2009: D+

NORTHWEST ARKANSAS– Northwest Arkansas regional economy
4Q 2014: B
3Q 2014: B+
2Q 2014: B
1Q 2014: B-
4Q 2013: B+
3Q 2013: B+
2Q 2013: B
1Q 2013: B
4Q 2012: C
3Q 2012: B+
2Q 2012: B-
1Q 2012: B-

CENTRAL ARKANSAS– Central Arkansas regional economy
4Q 2014: C+
3Q 2014: C
2Q 2014: C
1Q 2014: C-
4Q 2013: C-
3Q 2013: C-
2Q 2013: C-
1Q 2013: C-
4Q 2012: B-
3Q 2012: C-
2Q 2012: C+
1Q 2012: C-

As mobile phones have become an extension of the body more consumers are gaining confidence in how they use these smart devices, especially when it comes to banking.

A new report from The Federal Reserve says 39% of phone owners with bank accounts use mobile banking, a 6% increase from last year. Of those surveyed, 94% use banking apps to check account balances and recent transactions, and 51% said they deposit checks on their smartphones, an increase of 13% from the previous year.

It’s not just the Millennial generation delving into mobile banking. East Texas resident David Reese, older than 50, said he doesn’t remember the last time he wrote a check. 

“I use mobile banking to pay all bills (including from my business) and have done so for over 10 years. I have never have had a single issue with any type of problem,” Reese told The City Wire.

The main reason cited by survey respondents for not using their mobile phones to conduct banking services and making mobile payments was fear of a security breach.  But that’s not the case for Reese or Richard Lobb of Philadelphia – also in his 50s – who uses a Bank of America app on his iPhone. 

Lobb said Bank of America would have to make up any losses from a security breach, and he’s confident the bank is aggressive about security. That said, the majority of consumers aren’t so sure, according to the report.

“Despite the increased prevalence of mobile banking and mobile payments, a significant share of consumers believe the technology to be unsafe or do not know how safe it is,” the report states.

Among all mobile phone users, 25% believed people’s personal information is “somewhat unsafe” when using mobile banking and 19% believed it is “very unsafe.” Another 15% of mobile phone users did not know how safe it is to use mobile banking, and only 7% said it is “very safe” to use mobile banking.

The survey indicates that despite the wide use of mobile phones for surfing the Internet and browsing e-commerce sites, the majority of consumers (70%) still question how safe it is to pay for a purchase using their phone. The report found 22% of respondents said they had made one mobile payment in the previous 12 months. This was up from 17% in the prior year.

The survey shows that while the underbanked make up 14% of consumers, 90% of that group has access to a mobile phone. The underbanked represent a higher incidence of mobile banking (48%) than the fully banked (37%).

The report cites “interest and adoption of the mobile payment services are poised for growth as a number of developments in technology and security take hold in the mobile financial marketplace.”

Recent efforts to enhance the security of mobile payment transactions and to apply emerging technologies to a payments context could shape consumers’ attitudes about and use of mobile payments in the coming years, according to the report. 

The payments industry is taking steps to enhance transaction security at various points in the process, including by working toward conversion to a “chip and pin” or “chip and signature,” system. To encourage merchants and card issuers to adopt this technology, the card networks have set a deadline of October 2015, after which they intend to shift liability for fraudulent transactions to the party that is not-compliant. 

Retailers like Wal-Mart are not buying the safety guarantee of the chip-based credit cards. Mike Cook, Wal-Mart's assistant treasurer and a senior vice president, said at a recent Electronic Transaction Association's Transact conference in San Francisco that Wal-Mart would have preferred a "chip and PIN" system that Europe and Africa have in place. He said PINS would protect cards from being stolen. Cook predicted the switch to chip-based credit cards in the U.S. will be a disappointment.

“The new ‘chip & signature’ program is barely an improvement on security and fraud. The fact that we didn't go to PIN is such a joke," Cook recently told CNNMoney.

Cook said PINs on debit cards were a major improvement to stop thieves decades ago. They'd do the same for credit cards which is why banks should use them for all cards. To make his case, Cook said not a single PIN debit card needed to be reissued in Target and Home Depot breaches. The card number was worthless to the individual thief and fraudsters, because they didn't know the PIN.

The latest security breach to make the news was at AT&T which is believed to have impacted 280,000 customers. AT&T agreed to pay a $25 million civil penalty, after the names or full or partial social security numbers of its customers were compromised. The breaches occurred at call centers used by AT&T in Mexico, Colombia, and the Philippines when employees accessed sensitive customer data without adequate authorization. Those employees took payment from third parties who were apparently interested in customer names and social security numbers so they could unlock stolen cell phones for sale on secondary markets, the FCC said.

The Video Wire anchor Dawson Meadows opens with an interesting way to address upcoming sewer rate increases in Fort Smith. His method uses a crude drawing of a fan.

This week’s report also features a positive report on area building permits, and a quick summary of the new Peacemaker Music and Arts Festival. The Fort Smith Little Theatre, blonds vs. brunettes, and cats on leashes are also part of the report.

The Video Wire is a collaboration between The City Wire and Things to Do in Fort Smith.

Gov. Asa Hutchinson said Thursday that the consensus reached on extending the private option for two years while a task force studies its replacement was the “miracle of the session,” and he does not regret his role in initially advancing the Religious Freedom Restoration Act.

Speaking in his office with reporters, Hutchinson said the private option extension gives beneficiaries and providers a level of certainty about the program’s immediate future. He said he was encouraged by the flexibility offered so far by the federal government. Asked if the program could undergo minor changes and just have a new name, he said, “That’s off the table.”

“I think this is going to be a total refiguring of it in an Arkansas way with compassion but with fiscal prudence, and then also one that’s innovative,” he said.

Hutchinson initially supported the Religious Freedom Restoration Act passed by the House and the Senate, but, after it and a similar law in Indiana attracted national attention, he urged the Legislature to instead adopt a law mirroring the federal version, which is what happened. He said he did not regret his role in helping move it out of committee.

“No, it’s an important issue that deserved a vote on the floor,” he said. “So that’s not the kind of issue you want bottled up in committee. And so I’m glad that it ultimately got to the floor for a vote, and I was glad to encourage. Now, in hindsight, sure, I wish we all knew 45 days ago what we know today. You know, we could have been more precise in the language. I would have made my call for a bill that precisely mirrors the federal bill earlier. But that’s hindsight.”

He said he does not “see any urgent need” to issue an executive order protecting LGBT state employees from discrimination.

Hutchinson said he doesn’t have a timeframe but “we want to move quickly” on appointing three Supreme Court special justices to preside over a case that will decide which justices will be involved in the case challenging the state’s gay marriage ban. Three justices have recused from that deciding case. The court has not rendered a verdict in the original case, and there are questions over what should happen because the makeup of the court has changed since the initial arguments.

Hutchinson said he was pleased with how the session unfolded. The Legislature passed all of his “big ticket items” – the middle class tax cut, the high school computer science course requirement, a review of the Common Core, the task force to study the private option, and a workforce education overhaul. Meanwhile, the Legislature passed a waiver to allow schools with less than 350 students to remain open, increased pre-K funding by $3 million, and increased reimbursements for county jails.

“All my big scorecard items were done, so you get a 100% on that, and then I think you get a little extra credit for a few other things that were passed that I wanted to see done but was not on the big ticket items,” he said.

In addition to the policy items that were completed, Hutchinson praised the session’s bipartisan spirit. He said this was a unique session where he was able to pass most of what he requested.

“The strength of the governor is from the respect of the office and the recognition that we need to have a leader, and also the desire to have the governor succeed, and so that’s impressed me, and that’s not a Republican thing,” he said. “That’s a Republican and a Democrat thing. Democrats who opposed me, they not only said it, but they showed it in actions that it is important for Arkansas that the governor succeed.”

Hutchinson has signed a bill that will require the secretary of state to post a monument to the Ten Commandments that will be funded privately. He said he was swayed by arguments by Rep. Kim Hammer, R-Benton, that the Commandments are an important part of the country’s foundation.

“I think it is important that it’s done in a way that is reflective of that history and that it’s not simply used as making a political point,” he said.

After passing his signature middle class income tax cut, Hutchinson said his next tax cut priority is reducing marginal rates across the board. He said he will meet with legislative leaders regarding how to do that.

“We’re going to have another round of tax cuts in the future. I think it depends on how fast our economy grows, but I want to have a consensus develop for it,” he said.

Hutchinson is confident that the state’s new law spelling out protocols for lethal injections is constitutional. If so, it would pave the way for the state to resume executions, which haven’t been performed since 2005. As governor, he would preside over those executions and would be the last person capable of stopping them – a responsibility he said he is ready to fulfill.

“Sure you think about that, and it’s the law of the land,” he said. “It’s the law of Arkansas, and so my responsibility is to faithfully execute the laws. It’s important that you do it with serious gravity, and we’re a long ways away from any such night, but that’s important. And then secondly, you just want to make sure that the case is one in which there’s not a reasonable doubt and that due process has been met, and there’s been sufficient court reviews, and that all of those protections are in place.”

Downtown development and raising expectations were at the core of discussions at the 2015 Compass Conference on Thursday (April 9) evening. Held at the historic Masonic Lodge in downtown Fort Smith, the unique venue provided a most-appropriate setting for the sixth annual event which focused on revitalization of Garrison Avenue.

Discussion during the event also included recruitment of new business, community engagement through unique festivals and events, and raising the bar for how Fort Smith is viewed throughout the state and by its own citizens.

Presented by The City Wire and title sponsor Arvest, the "Banking on Downtown Development" event brought together more than 125 business, civic and community leaders to hear from three of Fort Smith's biggest investors in downtown properties. These included Lance Beaty, Steve Clark and Rodney Ghan.

Owner of Beaty Capital Group, Beaty served as host of the conference, having recently acquired the Masonic Temple with plans to renovate it and open it up as an event venue. Prior to purchasing the Masonic Temple, Beaty successfully redeveloped the former Phoenix Village Mall property.

Clark is the owner of Propak Logistics. He is behind the renovation of the historic Friedman-Mincer building in downtown Fort Smith and is a member of the Central Business Improvement District (CBID). He also is a driving force in the recently announced “Festival of Murals” event planned for Sept. 6-13 in downtown Fort Smith.

Ghan, downtown property owner and developer, is renovating 822 Garrison Avenue, which is set to include a Jimmy John's on the first floor and rental properties above. He also serves on the CBID board.

THE PANEL DISCUSSION
The conference was structured to include a series of questions for the panel, posed by moderator Tim Allen, president and CEO of the Fort Smith Regional Chamber of Commerce. The discussion got underway with a few words from each of the panelists about their involvement in downtown projects and reasons why they opted to spend their money in that area.

"We talk a lot about our history and it seemed a bit hypocritical if we don't choose to invest in our history," said Clark. "You are not going to find a successful, thriving city that doesn't have a successful downtown."

He added later when asked why he invested in downtown: " I just felt like we had lost enough of our old buildings."

Referring to the Masonic Temple, Beaty expressed his desire to renovate a space that had played a part of his childhood.

"I remember visiting here as a kid. Based on our experience at Phoenix Expo, I knew we could take it, renovate it and really invigorate this building."

Ghan's words echoed the same enthusiasm.

"I am not from here, but coming over the bridge and seeing that sight is what sold Fort Smith to me and my wife. I just love it, which is why I am choosing to invest in the building and am making the move to downtown."

Allen then posed a series of questions related to downtown's potential for growth, as well as obstacles locals will need to overcome to see such progress come to fruition. Numerous comparisons were made between cultural business development in Northwest Arkansas versus the somewhat more stagnant economy that has plagued Fort Smith the last decade. Clark commented on how resistance to change and being unwilling to do the work to reverse the trend can contribute to the problem.

"Downtown plays a major role in livability and we can't just invest in it for history's sake. If we aren't prepped to do the things necessary to  really revitalize downtown ... fine. But, we can't get our feelings hurt when businesses and people choose to go elsewhere."

Providing quality housing and structuring the area for optimal "walkability" were also repeated topics in the discussion of ways the city can help overhaul downtown's image and attract potential business owners and residents. Beaty also cited the need for more support from city officials and leaders as a necessity for downtown development. Using examples of projects he has completed in NWA, he noted that leaders, including U.S. Rep. Steve Womack (then the Mayor of Rogers), were quick to ask what they could do to help.

"I haven't encountered that (offers of help from city officials) in Fort Smith. The endeavor of redeveloping downtown is the duty of much more than us three guys. We all need to come together as a business community if we hope to see real progress."

Talk also turned to the raising the level of expectation for Fort Smith and what its downtown and riverfront have to offer. Clark said when asked the difference between Northwest Arkansas and Fort Smith, he always enters into a discussion of expectations.

"Part of the role investors play is raising expectations," said Clark.

He further noted that Fort Smith residents need to shake off their negative perceptions of downtown in order for the expectations to rise.

Allen then asked if panelists were optimistic, pessimistic or neutral about the future of downtown Fort Smith. All were in agreement that their investments into the region signified their faith in the area and overall positive outlook about Garrison Avenue.

"I am reasonably optimistic that we should be able to do as well as everyone else and believe that we need just need to look at investing into what got us here in the first place," said Clark. "Foundational elements of a city start here downtown and we need to build out from there.”

Allen then shifted the discussion toward factors hurting the downtown region, including a large number of vacant lots. Acknowledging progress that has been made in recent years, Allen asked members for their thoughts on what the next step or "leap" was. Ghan was the first to respond.

"We three have taken the leap, as we have chosen to renovate and invest in downtown," said Ghan. "As we do this, people will start to see the value in developing or doing business in downtown."

Ghan also pointed out the need to seek dollars to help who want to take the leap, but need help doing so.

"There are opportunities for grants to help give individuals, entrepreneurs the chance to make something downtown. We need to pursue these more and give young entrepreneurs the chance to do something great with these places."

AUDIENCE QUESTIONS
The panel presentation was proceeded by the opening of the floor to audience members for questions. Audience members did not hesitate at the microphone, with several asking panelists about topics such as significance of the Marshals Museum, development of marinas along the river, and opportunities for engaging local youth and young adults.

"The youth are going to respond to the decisions today's leaders make," said Clark. "I wonder now why we don't have an event at the amphitheater every weekend. We need more than the few great ones we have every year. My hope is that when they see the new festivals and after they experience a few seasons of successful events, then they will be bought in, and 'wounds' will heal."

Beaty added that new events and venues, such as the Masonic Temple, would open Fort Smith up to other tourists and visitors.

"It is not just Fort Smith, it is Tulsa, Northwest Arkansas, and beyond," said Beaty. "We will draw the market to Fort Smith."

Following the audience questions, Beaty shared a little about the history of the Masonic Temple, as well as his plans for renovation and use of the venue. The 52,000 square foot property includes 900 fixed theater seats, with the space to bring in an additional 300 movable chairs. It will also have three separate banquet spaces. The Masonic Temple originally opened in 1929, just weeks before the devastating stock market crash. Over the years, the building, which includes more than 80 hand painted scenes and art motifs, has served in many capacities, most notably as a movie theater. Beaty plans to utilize the colorful theater to host comedy shows, concerts, and other performances following renovation.

"We expect to host between 36-48 shows annually," said Beaty.

COMPASS CONFERENCE AND REPORT
The annual conference is part of The Compass Report, which is the only independent economic analysis of Arkansas’ top three metro areas (Central Arkansas, Northwest Arkansas, Fort Smith region).

The report, produced and managed by The City Wire, measures four leading and four current economic indicators to provide a grade for a regional economy. Arvest Bank is the primary sponsor of the report, with Cox Communications and the Fort Smith Regional Chamber of Commerce signed on secondary sponsors.

The Walton Family plans to divest roughly 6% of its majority stake in Wal-Mart Stores over the next few years into a new trust entity as the family's interest has risen to more than 50% in recent years from corporate funded share repurchases.

The family's interest stood at roughly 50.32% on Feb. 6, according to recent federal filings with the Securities and Exchange Commission. But with some $10.3 billion in additionally planned buybacks by the company the family's interest will continue to rise. If Wal-Mart were to repurchase shares of other holders without also acquiring shares from Walton Enterprises, the percentage of Walton ownership would grow beyond 50%.

Shares owned by Walton Family Enterprises will be methodically divested overtime into a new entity — Walton Family Holdings Trust — which intends to fund charitable initiatives and also keeping the family's direct ownership of Wal-Mart Stores at no more than 50%. The planned 6% transfer is valued at roughly $15.6 billion and amounts to some 193.5 million shares as of Friday.

The family notes that this move " is consistent with an appropriate balance of family and non-family ownership that supports the goals of all Wal-Mart shareholders and long term business success," according to a statement made to shareholders on Friday (April 10).

Wal-Mart Stores is one of eight family owned Fortune 500 companies and is deemed a controlled company given the founder’s family owns at least 50% of the outstanding shares. Friday’s news does not change that fact. Rob Walton, son of the founders Sam and Helen, remains board chairman and his son-in-law, Greg Penner was named vice chairman and Walton’s chosen successor at last’s years shareholder meeting (June 6.)

That announcement answered the question many had about who might take over board leadership when the 70-year-old Rob Walton steps down. Rob Walton’s departure and a more independent board is something minority shareholders have advocated for in recent years following the alleged bribery scandal in the retailer’s international segment, which is still under investigation.

Wal-Mart is often in the center of a battle between Wal-Mart insiders and any number of outside groups seeking change from and within the family control through various shareholder proposals each year. Corporate governance expert Alan Ellstrand at the University of Arkansas said closely held corporations maintain control over the governance process by helping to ensure that minority shareholder proposals have little chance of being adopted. 

In addition, Ellstrand said this provides insurance to maintain near complete control of directors to serve on the board. Even with dispersed ownership in companies like Wal-Mart renegade directors are never elected, but it can be embarrassing to firms when such candidates receive even a significant minority vote. He said having control of the stock also ensures that the family can influence some control over the firm’s strategic agenda like choosing a CEO who will carry out their plan, Ellstrand said.

“I believe that the Walton family is concerned about their shareholding becoming too dominant – they are likely sensitive to ensuring that Wal-Mart continues as a publicly traded firm in every sense, and that the stock continues to be a dynamic, widely traded investment,” Ellstrand said.

Analysts said investors know on the front end, that the Walton Family controls the company from the board room by handpicking a CEO who will most align with Sam Walton’s mission. While there have been ups and downs for the retailer over the years Wal-Mart Stores remains one of the best performing companies among its peers in the Fortune 100.

Wal-Mart shares (NYSE: WMT) closed Friday at $80.65, down 19 cents. During the past 52 weeks the share price has ranged from a $90.97 high to a $72.61 low.

Former Arkansas First Lady, U.S. First Lady, U.S. Senator and Secretary of State Hillary Clinton is jumping in the 2016 Presidential race seeking the Democratic nomination for the first time since her failed 2008 bid.

Clinton, who has near universal name ID, announced on Sunday afternoon with a social media message that will be followed by trips to early primary states, Iowa and New Hampshire later in the week. (See the video at the end of this story.)

In the video, Clinton said: “Everyday Americans need a champion. And I want to be that champion. So I’m hitting the road to earn your vote — because it’s your time. And I hope you’ll join me on this journey.”

In a campaign memo obtained by CNN, Clinton’s expected campaign manager, Robby Mook, outlined a “values statement” for the Clinton staff.

“This campaign is not about Hillary Clinton and not about us,” reads the document that was obtained by CNN. In the section about the campaign’s guiding principles, the document reads, “We are humble: We take nothing for granted, we are never afraid to lose, we always outcompete and fight for every vote we can win. We know this campaign will be won on the ground, in states.”

“Everyday Americans need a champion. And I want to be that champion,” Mrs. Clinton said. “So I’m hitting the road to earn your vote — because it’s your time. And I hope you’ll join me on this journey.”

It also calls on campaign staffers to remain “disciplined” and “open to a diverse range of views.”

No doubt, Democrats view Hillary Clinton as the strong frontrunner for their nomination and she is widely expected to be the favorite against a large field of Republican contenders in the general election.

But as much as Democrats are ready for Hillary, so is the GOP.

Republicans have been preparing for a second Clinton campaign since she left President Obama’s administration. They are expected to tie her campaign to a “third” Obama term, during which they will argue she would continue his most unpopular policies.

The Republican National Committee issued this statement: “Americans need a president they can trust and voters do not trust Hillary Clinton. Over decades as a Washington insider, Clinton has left a trail of secrecy, scandal, and failed policies that can’t be erased from voters’ minds. The Clintons believe they can play by a different set of rules and think they’re above transparency, accountability, and ethics. Our next president must represent a higher standard, and that is not Hillary Clinton.”

Hillary Clinton, wife of former Arkansas Governor and President Bill Clinton, is no stranger to the public eye with a career in politics spanning more than four decades.

The Arkansas Democratic Party issued a statement praising Hillary’s move.

“Americans need a president they can trust and voters do not trust Hillary Clinton. Over decades as a Washington insider, Clinton has left a trail of secrecy, scandal, and failed policies that can’t be erased from voters’ minds. The Clintons believe they can play by a different set of rules and think they’re above transparency, accountability, and ethics. Our next president must represent a higher standard, and that is not Hillary Clinton. While we expect there will be a Democratic primary, we are excited about Hillary's announcement, as we remember the positive impact Hillary had as Arkansas's first lady."

Arkansas ranks among the least financially literate states in the U.S. according to a 2015 study from WalletHub. The 49th ranking for Arkansas prompted Mark Foster, educational director at Credit Counseling of Arkansas, to quip, “I’m surprised we’re that high.”

Arkansas is in the basement in the ranking of knowledge and education and 47th in planning and daily habits. Arkansas also ranks 48th in the number of unbanked households. WalletHub, a leading personal finance website, analyzed financial education and consumer habits in all 50 states and the District of Columbia.

The knowledge and education component included factors such as the high school dropout rate, population with bachelor’s degree or higher and the number of library branches per 100,000 population. In the planning and daily habits segment, the study looked at factors such as percentage of people who spend more than they make; percentage of people with a rainy day fund; and paying only minimum amounts on credit cards.

The most financially literate state, according to the rankings, is New Hampshire. The only states ranked below Arkansas are Nevada and Mississippi. Arkansas is joined by the other least financially literate states of Texas, Alabama, Kansas, Oklahoma, Kentucky, New Mexico and Louisiana.

Arkansas’ ranking doesn’t surprise Foster or others, such as bankers, educators and librarians, all of who provide programming to help Arkansans get a better handle on their money and credit management. The lack of understanding may be a generational issue, especially for Boomers who were raised in households where discussion of family finances was taboo. The level of poverty may be a root cause as well.

Foster pointed to a story about year ago from the Associated Press, stating that 35% of Americans have unpaid bills or bills referred for collection. In Arkansas that number was 40%.

“Money is something we have to deal with but not many people have had any kind of education on how to deal with it,” Foster said.

Children, especially, may be learning money habits by observing parents.

“You are teaching children about money because they are watching you, even if you don’t say anything,” Foster said. “They observe positive or negative behavior.”

CCOA is one agency that offers a series of classes in Bentonville, Fayetteville and Fort Smith to help people with money management, budgeting, basics of credit, home buying, identify theft and couples and money management, Foster said. Since its’ inception nearly 20 years ago, CCOA has taught financial classes to some 200,000 people in its service area, Foster said. The classes may be offered in schools, colleges, churches, libraries or businesses.

“We try to find locations out in the community,” he said.

One of those locations is the Springdale Public Library which was one of 17 libraries in the U.S. to receive a $30,000 grant from the American Library Association in 2014 to support a series of financial workshops, said Laura Speer, reference librarian.

Through partnerships with CCOA, the Arkansas State Securities Department and Economics Arkansas, the workshops have been offered to students and adults, including special programming for the city’s Marshallese population.

“We are providing resources people need to make the best informed decisions,” Speer said. “We want you to realize you are not in this alone. We’re giving you the resources.”

EARLY EDUCATION
A young adult series of workshops help high school students to prepare for college and the financial issues they may face, like receiving unsolicited credit cards, Speer said. For younger children, there is a program to encourage saving money while learning to be the master of their financial future.

“This is not a new problem,” said Karen Gray, marketing director for Arvest Bank.

And, it’s not a problem limited to Northwest Arkansas or the Fort Smith area, but is prevalent in other parts of the state because of a lower poverty level.

“Our thought is that if a child is old enough to learn, he is old enough to start learning financial lessons,” Gray said.

The bank first started teaching financial lessons at Root Elementary School in Fayetteville about 20 years ago. The program reached into other elementary schools in Northwest Arkansas over the years. The bank now offers an eight-week program, called Dollars and Cents, to fifth-graders in local schools. In other areas, the bank offers one-day savings presentations for elementary students in Prairie Grove and Farmington and banking classes for high school students in Siloam Springs and Benton County.

“We need to teach at all levels,” Gray said.

The bank offers money management skills through its “Money Skills” website, and also offers other programs help people better manage money and other issues through its Education Center.

OTHER OUTREACH
The bank has offered course at 7 Hills Homeless Center and Ozark Literacy Council and has partnered with CCOA and other businesses to reach potential students in their financial management programs.

Many schools are teaching a financial management curriculum to students of all ages. One of the most far-reaching programs is in the Springdale School District where economics classes for all students are under the direction of Jo Vanderspikken, the gifted and talented director and economics education coordinator. Economics education started in Springdale schools over 30 years ago.

Springdale schools has fostered partnerships with Economics Arkansas, National Council on Economic Education, Winthrop University, and the Federal Reserve Bank of St. Louis Little Rock Branch, according to the district website.  

Economics Arkansas encourages teachers to develop programs to increase K-12 economic literacy and wise decision-making of Arkansas students in kindergarten through 12th grade. The Springdale district joins Economic Arkansas to provide economic teacher training.

Teaching in Springdale schools starts in kindergarten and first grade with economics vocabulary. The curriculum climaxes with the annual Stickhorse Rodeo at the Parsons Stadium rodeo grounds.

By ninth grade, school districts are required by state education mandates to offer an economics course, Vanderspikken said. The district also works with Speer at the Springdale library to provide economic education to sixth and seventh grade students and their parents.

Third-graders are now preparing for the annual economics fair at the Jones Center on May 8 where the students put together presentations focused on a durable product they have designed and marketed, Vanderspikken said.

The district also partners with John Brown University and NorthWest Arkansas Community College to provide entrepreneurial programs that reach many of the district’s 22,000 students, she said,

Economic education is an important component in public education because the economic way of thinking and financial management is not taught in the home, she said.

“Children truly don’t learn at home,” she said. “We want to prepare them so that when they go to college, they don’t get sucked in. I hear from so many young people, especially women who ask, ‘How do I get out of credit card debt?’”

“Often we learn from the school of hard knocks,” Foster added. “Education is really key. It takes people to be proactive.”

BETTER OUTCOMES
A recent Wharton study conducted by Olivia Mitchell and Annamaria Lusardi over a 10-year period found that financial knowledge correlates with better outcomes.

The research indicates the financially savvy tend to take on less credit card debt and pay balances off each month. They’re more likely to refinance a mortgage when it is profitable to do so, are less likely to fall prey to high-cost debt like payday loans and are more likely to plan for retirement.

Mitchell and Lusardi write: “Our analysis of financial knowledge and investor performance showed that more knowledgeable individuals invest in more sophisticated assets, suggesting that they can expect to earn higher returns on their retirement savings accounts.”

“It’s our belief that you really have to start financial education at a young age,” Mitchell noted in the report.

The researchers said much remains to be done in this young field of financial literacy.

“Curing and preventing financial illiteracy is not costless, but investing in financial literacy is likely to bring high payoffs,” Mitchell said.

Little Rock attorney Matt Campbell is alleging in a lawsuit that an officer with the Fort Smith Police Department attempted to place “malicious software” on his law office computer. Campbell is the attorney representing former Fort Smith police officer Don Paul Bales in his lawsuit against the police department.

Bales was fired in October 2014 by the Fort Smith Police Department. He was accused of providing inside information about a police matter to Campbell, and lying in correspondence to a supervisor and to City Administrator Ray Gosack. His firing was upheld by the Fort Smith Civil Service Commission.

Bales is also the leader of Take Back the Fort, a group attempting to raise enough signatures to call for an election changing the form of government in Fort Smith. The group launched the effort in late January, but has since Feb. 13 been unwilling to provide an update on the signature-gathering process.

In a “Motion for Sanctions” action filed April 10, Campbell alleges that certain members of the FSPD “engaged in intentional spoliation of evidence,” provided emails with “improper redactions” and, in responding to a documents request, supplied Campbell with an external hard drive that “contained malicious software designed to hack into Plaintiffs’ counsel’s computer, rendering the hard drive unsafe for Plaintiffs’ use.”

In the filing with the Circuit Court of Sebastian County, Campbell is asking for sanctions against the defendants, to include criminal contempt of court and entering a default judgment in favor of Bales.

The filing by Campbell includes an affidavit from Geoff Mueller, manager of information security at the Lower Colorado River Authority. Mueller said he found four “Trojans” designed to open Campbell’s computer up to outside control. The Trojans included a password stealer, malicious software installer and “control and command of infected computer,” according to Mueller’s report. Mueller said is review of the hard drive and its contents indicated that the bad software “were not already on the external hard drive that was sent to Mr. Campbell, and were more likely placed in that folder intentionally with the goal of taking command of Mr. Campbell’s computer while also stealing passwords to his accounts.”

Fort Smith Police Chief Kevin Lindsey told The City Wire he had no comment on the allegation and would “let the courts speak on the matter.”

Campbell provided this statement to The City Wire: “This whole thing is alarming, not only because they tried to hack my computer, but also because of what it means big picture. The Fort Smith Police Department – or at least certain people within the FSPD – have demonstrated that they will act criminally if they think it will allow them to get even with someone they don't like. Rather than let the underlying litigation play out properly in court, they opted to commit a federal crime, apparently in the hopes that their criminal acts would give them information that they couldn't get legally.

“I strongly believe that the overwhelming majority of officers at the FSPD are good. Yet, if the person or persons responsible for this aren't investigated, arrested, and prosecuted, the leadership of the department is basically telling all of the good cops that they don't care if the citizens of Fort Smith trust the department as a whole. Sadly, based on past practices, that's exactly what I expect will happen.”

Campbell notified Sebastian County Prosecuting Attorney Dan Shue of the alleged hacking attempt, and Shue sent a letter to the Arkansas State Police asking them to investigate. The ASP declined, saying the matter appears “limited to misdemeanor violations which do not rise to a threshold” for a special investigation. In his Oct. 1, 2014 letter to Campbell, Shue said the matter could also be sent to the office of Conner Eldridge, U.S. Attorney for the Western District of Arkansas.

Tanya Lewis, a work-from-home mom in Palm Harbor, Fla., put her ingenuity to work around eight years ago when she became obsessed with a more sustainable way to clean the floors upon which her toddler constantly crawled.

“I had a Swiffer wet jet mop and loved it, but when I went through an entire box of cleaning pads that first week I knew there had to be a better, more sustainable solution. That’s when I began to look for a greener cleaning pad online, one that could be washed and reused instead of clogging landfills with disposable alternatives. In 2007, there was no such thing, so I set out to create one,” Lewis told The City Wire.

She has patented her design which marries the cleaning traits of microfiber with the absorbency of shammy cloth layered beneath the pad’s surface. Lewis saw no need to recreate the wheel and fashioned her pad so that it easily straps to Swiffer and most other brands including the basic sponge mop. Because it was a sustainable, more eco-friendly solution she named it the Green Glider and has since trademarked that brand.

BEFORE SELLING TO WAL-MART
Lewis, a graphic design freelancer by trade, said when her friends and family started asking her to make them a mop pad she decided to roll the dice and test the market for a greener floor cleaning solution. 

Working with CEO Space International, an entrepreneurial alliance, Lewis said she was able to locate two manufacturers in China and ultimately chose one of them for the product she’s now marketing.

“It’s been three years of double-time work to get this product in front of brick and mortar retailers like Wal-Mart, Kroger, Lowe’s and Target as well as others. We sold on QVC and did very well selling out in eight minutes on our first airing. We aired 11 other times and sold well in the channel, but when I had an opportunity to pitch to Wal-Mart I couldn’t turn that down,” Lewis said.

Given her woman-owned status, Lewis said she completed the rigorous Women’s Business Enterprise National Council (WBENC) certification and got a meeting with a Wal-Mart buyer through the retailer’s supplier diversification program in January 2014. 

By the time Lewis had her first buyer meeting at Wal-Mart she had already sold more than $250,000 in mop pads on QVC in the preceding year. Lewis admits during this time she was still figuring out the business and changed manufactures to get the quality standard she wanted.

BUYER MEETING
Lewis brought her invention to Bentonville and met with her buyer on the premise that there is no other sustainable alternative in the market today that can help consumers who want cleaner floors save money and worry less about contributing to landfills.

“I showed Wal-Mart all the homemade inventions out-there on websites that consumers had concocted like strapping diapers, tube stocks and other items to the mop head, instead of buying expensive, disposable mop pads. I told Wal-Mart this is a market craving a solution that they didn’t offer, but could, if they sold Green Glider,” Lewis said.

She spent the next nine months getting ready to do business with Wal-Mart, securing her WBENC certification and unleashing inventory warehoused by QVC so that when Wal-Mart called she would have the inventory to ship.

Lewis said her second Wal-Mart meeting took place in September. After repackaging the inventory released by QVC, Lewis made her first shipment to Wal-Mart Stores in February.  

“We got into nearly 300 stores in 49 states and I am in all 42 distribution centers, which sets me up for a bigger rollout if the product does well. Now we just have to let folks know Green Glider is available at Wal-Mart for $9.98, which is about $3 less than if they buy from our direct website or on Amazon.com,” Lewis said.

For Lewis getting into Wal-Mart has been a surreal experience, and she has found her buyer and his team to be nothing but helpful.

“I told my buyer there is not a ‘Plan B’ on my agenda so I am doing everything I can to make Green Glider a success. It looks to me like Wal-Mart also works hard to help small startups like Green Glider succeed where they can,” Lewis said.

SERIAL ENTREPRENEUR
Lewis said she brought on early angel investors to help her initial startup who continue to be supportive in all endeavors. Lewis said the company is making money but it’s all going back into more product and what will be marketing costs as Green Glider reaches more retail shelves in the coming months.

While she’s focused on building out the Green Glider brand, Lewis said she has 10 other inventions sitting on the back burner – some within the same category as well as children’s products and other solutions for women.

“We will soon have a 17 inch mop pad with the same patented technology that works atop the larger Swiffer, Libman, and Rubbermaid mops. There are other Green Glider products in the planning stages as well,” she said.

Lewis said she is working with mentors who continue to provide guidance in everything from marketing to day-to-day consulting on various operational metrics.

“Lionshark Marketing and Management has been hugely instrumental in helping me build my company. Consultants Ben Rizzo, and Mike Nole provide business management to entrepreneurs like myself and Bryan McGuire of Lionshark is also my chief financial officer,” she said.

Lewis also said Dwight Sinclair of the Sinclair Group has been her right arm in helping get the Green Glider in front of more retail buyers. One area Lewis is passionate about is getting to a place where she too can mentor others.

“It’s so important to learn, earn and return, which is the motto of CEO Space and one I too, have adopted,” Lewis said.

NOTABLE CHALLENGES
Lewis admits there have been challenges along the journey to the shelf, but she’s optimistic the years she’s devoted will pay dividends. She said the days can be long for a single mom but Lewis reiterates “there is no Plan B.”

One notable challenge for Lewis is figuring out the best way to market Green Glider that is just one item sitting obscurely on an aisle covered with big brand names controlled by corporate giant Proctor & Gamble.

“Right now when you are only in 300 stores it can be hard to market, especially when those stores are spread out coast to coast. We are using social media at this point to target consumers looking for sustainable mopping solutions. We feel good that there are some 50 million users of Swiffer and other spray jet mop systems and the fact that our product easily attaches to them is a huge potential market for Green Glider,” Lewis said.

Lewis said while her product is sustainable, it is manufactured in China and there is the additional transport time where shipments are concerned.

“I just want consumers to know there is a $9.98 alternative to costly disposable mop pads and it’s finally on the shelf at some 300 Wal-Mart stores and hopefully coming to more soon,” Lewis said.

Net profits at Lowell-based J.B. Hunt Transport Services rose 34% to $91.932 million for the first quarter of 2015 that ended March 31. The first quarter net income compared to $68.664 million earned in the year-ago period. 

On a per-share basis, J.B. Hunt posted net earnings of 78 cents, which exceeded Wall Street analysts expectation of 72 cents for the period and fueled shares higher in active trading Tuesday (April 14) at the opening bell. Shares (NASDAQ: JBHT) rose more than 4.6% higher pushing through the $90 threshold to close at $91.82, up $4.09% in an active day of trading. Over the past 12 months shares are up 27%.

In its release on Tuesday, the Lowell-based logistics giant cited strong gains in the number of loads hauled across its diversified transport system, but said lower revenue per load and a 5% jump in interest costs amid higher debt levels curbed revenue gains. The lower revenue narrowly missed Wall Street’s consensus estimate. Consolidated revenue increased 2.4% to $1.44 billion in the quarter, but fell short of the $1.54 billion analysts predicted.

Operating revenue and net profits were pushed higher by a 6% load growth in the Intermodal segment, and revenue hikes of 7% in the Dedicated Contract Services segment from rate increases. The Integrated Capacity Solutions segment posted a 17% load growth over a year ago, while Truckload segment revenue slid 1% on lower revenue per tractor rates.

J.B. Hunt reports operating income of $155 million for the quarter was up from $117 million in the same period last year. The company cites financial gains on the ability to raise customer rates in some divisions, savings realized from lower fuel costs and a more effective use of third-party carriers. However, the company said profits and revenue were hurt by driver wage hikes, higher levels of equipment depreciation as well as added toll expenses and increased storage costs across all of its segments.

Looking ahead, logistics analysts expect 2015 to be a good year for the transports amid tighter capacity restraints, decent demand from retail and manufacturing gains on the backs of lower fuel costs propelling consumer confidence. Analysts with Little Rock-based Stephens Inc. rate J.B. Hunt shares a “buy” citing that the diversified logistics platform gives Hunt ample opportunity to grew sales, particularly in the back half of this year. 

“As a result of a strong intermodal pricing data points that we expect to see play out in fiscal 2015, we are overweight on JBHT shares,” noted Brad Delco, analyst with Stephens Inc. (Stephens conducts investment banking services with J.B. Hunt and is compensated accordingly.) 

Delco said his team was "impressed by intermodal rates which we believe are running mid-single digits given mix impact and volumes given the West Coast ports lockout and toughening weather conditions in the quarter. Additionally, we were encouraged by results in the Truckload segment."

Stephens raised its target price to $100, as Hunt's shares rolled past the $90 target price set ahead of the solid earnings.

SEGMENT PERFORMANCE
• Intermodal (JBI) — 59% of total revenue
1Q Revenue: $844 million, up 1%
1Q Operating income: $104.3 million, up 12%

J.B. Hunt officials said overall load volumes rose 6% from the year-ago period with the Eastern network seeing a 12% gain in loads from the same time last year. Transcontinental loads rose just 2% as the carrier cited West Coast port issues limiting its eastbound intermodal traffic in the period. The carrier said revenue per load in this segment declined 5% which is the combination of lower fuel surcharges and freight mix. 

At the end of the quarter J.B. Hunt had approximately 74,200 units of trailing capacity and 4,900 power units available to the dray fleet.

• Dedicated Contract Services (DCS) — 24% of total revenue
1Q Revenue: $345 million; up 7%
1Q Operating Income: $35.8 million; up 130%

This segment was able to raise its customer rates and added 336 revenue producing trucks from the prior year to accommodate the new business.

• Integrated Capacity Solutions (ICS) — 11% of total revenue
1Q Revenue: $163 million; flat
1Q Operating Income: $6.6 million; up 8%

This brokerage segment saw a 17% rise in load volume, but revenue per load fell 14.5% from lower fuel surcharges and less transactional (spot) demand in the quarter. The segment’s contract business loads rose 49% from the year-ago period and accounted for about 74% of the total load volume for the segment in the quarter.

This segment has grown to 30 branches with its employee count rising 21% from a year ago.

• Truck (JBT) — 6% of total revenue
1Q Revenue: $91 million; down 1% 
1Q Operating Income: $8.5 million; up 248%

Increased truck count, improved freight lane networks and core customer rate increases of approximately 9% contributed to the improved revenue, excluding fuel surcharge. JBT operated 2,020 tractors at the end the first quarter compared to 1,917 in 2014.

Under the leadership of Shelley Simpson, this laggard segment increased its operating income by 248%, helped by increased rates per loaded mile, lower fuel expenses, less maintenance costs, lower insurance rates and claims expenses relative to a year ago.

A new form of city transportation, building on the notions of sustainability and car sharing, is coming to Fayetteville and owners are banking on local residents using low speed electric vehicles for short trips around downtown or to the University of Arkansas.

Sustained Urban Mobility (SUMO), with its “Benign Disruption," plans to open May 1 at the northeast corner of Lafayette and West streets, one block north of Dickson Street, said co-owner MIkel Lolley. A white brick building stands at the corner, once the site of filling station. Lolley said he and his partner, Bob Monger, entered a land lease with the building’s owner, Eric Close. They plan to bring in a 40-foot shipping container to put under the awning, which will serve as the office.

Lolley said the two met about six years at a green building conference where the idea was originally hatched, and since has grown into a full-scale business model. 

The low speed electric vehicles — described by Lolley as “souped up, street legal golf carts” — are governed to move at a top speed of 25 miles per hour. The company also has 14 of the low speed electric vehicles; an electric Toyota; and a four-door sedan. The vehicles are small and agile and “can turn on a dime,” he said. The vehicle averages about 40 miles per charge; the four-door sedan has a range of about 70 miles. 

He said the initial investment has been about $250,000, mostly for equipment.

The concept is similar to the international Car2Go (www.car2go.com), which started in 2008 in Ulm, Germany and is now in 29 European, Canadian and U.S. cities, such as Washington, D.C., Columbus, Denver, Miami and San Diego, to mention a few, with more than one million memberships worldwide. It’s simple process: A user buys a cost efficient membership and uses the membership card to access the vehicle, drive from point A to B, then park the car. The cost is based on the minutes the car is in motion. No reservation is required and you don’t have to return the car where you picked it up. The preferred model of car is the Smart Car.

Lolley said his business model is similar to Car2Go. 

“Car sharing has been around for 20 years. The difference is ours is a low speed electric car share for members only and offering free parking,” he said.

The company is negotiating with the University of Arkansas and businesses around Fayetteville to establish parking pods for the vehicles that will allow the user to park for free. The pods will be striped with signage and charging stations. Lolley estimated a typical parking space could accommodate three of the vehicles. 

In Fayetteville, the plan has been in testing since last December. The partners conducted five focus groups, reaching about 50 participants. For their participation, they will be the first members and have earned credits to use the service. Driving record checks have been conducted on about 30 people.

Each low speed electric vehicle has been equipped with a GPS antenna to keep track of the vehicles. Payment for rental will be made through PayPal once the membership is set up. Lolley said charges will be based on the number of minutes a vehicle is in use, estimating the cost will be about $1.50 for a five-minute trip. 

Lolley and Monger also are authorized dealers for The Star EV, a low-speed electric vehicle manufactured in China and the Cushman EZ Go, a similar model. They range in price from $9,500 to $10,500. To special order either model takes six to eight weeks for delivery.

“We have seen a lot of interest elsewhere, such as in Colorado, Georgia and Hawaii,” Lolley said, noting he has owned a low-speed electric vehicle for about a year.

He estimated he is saving about $3 or more in fuel costs every time he drives it over his pickup truck. He drives the vehicle from his home in downtown Fayetteville to Fayetteville Athletic Club at Zion and Crossover roads a 20-mile round trip, and has been doing so for nearly a year.

“Only one person has honked,” he said. “We’re not trying to replace the family car. I have a passion for sustainability. We see a future in this, particularly with millennials.”

A majority of Arkansans believe K-12 education in the state is on the wrong track, but they like their local schools. That’s according to the findings of a new poll commissioned by Talk Business & Politics, Hendrix College and Impact Management Group.

In the poll, “The State of Education in Arkansas,” 51% of registered voters said that K-12 education in Arkansas is on the wrong track, versus 35% who said it is headed in the right direction. The other 14% were unsure or didn’t know.

But asked to give their local pubic school district a grade, only 8% gave it a “D” while 6% gave it an “F.” Another 23% gave it an “A,” 33% gave it a “B,” and 29% gave it a “C.”

“We see a ‘Congress Effect’ in these results,” said Talk Business & Politics Editor-in-Chief Roby Brock. “Just like people love their Congressman but hate Congress, they love their local schools but distrust education at the state level.”

Four hundred registered voters were surveyed April 2-5, with a plus or minus margin of error of 4.9%. Three-fourths were surveyed by landline and one-fourth by cell phone.
The results indicate that Arkansans have greater trust in their public schools than in public education in general – an attitude reflected in their answers to a question about who should have primary control over curricula.

In the survey, 56% said it should be the local school district, 29% said it should be the state government, and 9% said it should be the federal government. Asked what one thing would improve Arkansas’ schools, the word “teachers” was a part of more responses than any other.

COMMON CORE CONTROVERSY
The Common Core, a set of educational standards in math and English language arts adopted by 43 states and the District of Columbia, has become a political hot potato.

Some believe it is an example of federal overreach and a usurpation of local control. Arkansas is part of the Partnership for Assessment of Readiness for College and Careers (PARCC), a testing consortium that will compare students’ scores. The number of states involved has dwindled from 24 to nine, Arkansas being one of them.

Arkansans offered a wide range of answers when asked to name the first thing that came to their mind when presented with the phrase “Common Core.” The most often used word was “common.” However, 74% support (39% strongly, 35% somewhat) “the concept of states working together to create, adopt, and implement clear and concise educational standards that detail what K-12 students should know at the end of each grade.”

In other findings, 66% of respondents support (36% strongly, 30% somewhat), the continued expansion of open enrollment charter schools, meaning public schools not run by the local school district where enrollment is open to anyone. Of the rest, 10% somewhat oppose expansion, while 11% strongly oppose it.

Another 79% of Arkansans (54% percent strongly, 25% somewhat) support “using tax dollars to make sure high quality pre-school programs are available for every child in Arkansas.”

Sixty-eight percent of respondents agreed (44% strongly, 24% somewhat) with a recently passed law allowing the State Board of Education to allow school districts with fewer than 350 students to avoid consolidating with another district as long as the small district is not in academic, fiscal or facilities distress. Another 23% disagreed with the new law (12% somewhat, 11% strongly).

In the survey, 28% of respondents said they have children under the age of 18 living at home. Sixty-six percent said their children attend a traditional public school, 13% said they attend a public charter school, 7% said they attend a private school, and 6% said their children are home schooled. Another 7% said “other.”

Asked about the importance of the quality of public schools in determining where they choose to live, 36% said “extremely important,” while 32% said “very important” and 12% said “somewhat important.” Another 19% said “not at all important.

The respondents were almost evenly split by gender and evenly split by the state’s four congressional districts. Eighty-four percent said they are white, 12% said they are African-American, and 2% said they are Hispanic American or Latino.

Forty-five percent said their total annual household income is below $51,000, while 15% said it is above $100,000. Forty-one percent said they are a college graduate. Half said they live in a rural area, while 29% said they live in a suburban area and 19% said they live in an urban area. Sixty-four percent said they are at least 45 years old.

Gov. Asa Hutchinson appointed three special justices to the state’s Supreme Court to hear a case involving same-sex marriage in Arkansas. Hutchinson also appointed several people from the Fort Smith and Northwest Arkansas areas to prominent state boards and special judicial service.

An appeal has been pending at the Arkansas Supreme Court since last year when a furor erupted after a lower court ruling declared same-sex marriages constitutional. Higher court rulings stayed that decision.

Since then, a debate has ensued as to which justices can hear the lawsuit, either specially appointed justices from last year’s high court or newly elected members to the state Supreme Court.

The Supreme Court recusals center on the case that will determine which justices can participate in the gay marriage appeal.

Hutchinson named Brett Watson of Searcy, as Special Associate Justice to the Arkansas Supreme Court to replace Chief Justice Jim Hannah, who has disqualified himself from the case.

Judge Betty Dickey of Heber Springs will replace Justice Rhonda Wood and Judge Shawn Womack of Mountain Home will replace Justice Paul Danielson. Wood and Danielson also recused from the case.

FORT SMITH, NORTHWEST ARKANSAS APPOINTMENTS
Sheriff Boyd Hicks, Magazine, to the Arkansas Commission on Law Enforcement Standards and Training. Appointment expires Jan. 14, 2022. Replaces Randall Morris.

Dr. Douglas Parker, Gravette, to the Veterinary Medical Examining Board. Appointment expires March 1, 2020. Reappointment.

Sarah Martin, Fayetteville, to Keep Arkansas Beautiful Commission. Appointment expires Jan. 14, 2018. Replaces Rebecca Rains.

Robert Downum, Springdale, to the Arkansas Home Inspector Registration Board. Appointment expires Jan. 26, 2017.

Dr. Wesley Stites, Fayetteville, to the Arkansas Pollution Control and Ecology Commission. Appointment expires March 29, 2019. Replaces John Simpson.

Ed Winant, Rogers, to the Board of Directors of the Arkansas Science and Technology Authority. Appointment expires Jan. 14, 2019. Replaces Robert Sproles.

Cheryl Edwards, Fort Smith, to the Arkansas Board of Examiners in Counseling.  Appointment expires Dec. 1, 2017. Replaces Mark Coffman.

Sarah Faitak, Fayetteville, to the Breast Cancer Control Advisory Board. Appointment expires Jan. 1, 2019. Reappointment.

Duane Neal, Bentonville, to the Arkansas Motor Vehicle Commission. Appointment expires Jan. 14, 2022. Replaces Bobby Ferguson.

Joseph Self, Fort Smith, to the State Crime Laboratory Board. Appointment expires Jan. 14, 2022. Replaces J. Carter Fairley.

Jimmy Didier, Fort Smith, to the Arkansas Racing Commission. Appointment expires Jan. 14, 2020. Replaces Thomas Akin.

Michael Post, Altus, to the Arkansas Racing Commission. Appointment expires Jan. 14, 2019.

Joseph Self, Fort Smith. Special Associate Justice to the Arkansas Supreme Court. CV-14-1059. Replaces Justice Robin Wynne.   

Rex Terry, Fort Smith. Special Chief Justice to the Arkansas Supreme Court. CV-14-978. Replaces Chief Justice Jim Hannah.

OTHER APPOINTMENTS
Following are other appointments and reappointments made Tuesday (April 14) by Gov. Hutchinson.

Lieutenant Stacie Rhoads, Bigelow, to the Arkansas Commission on Law Enforcement Standards and Training. Appointment expires Jan. 14, 2016. Replaces Jami Cook.
 
Shelia Magness, Star City, to the Arkansas Fire Protection Services Board. Appointment expires March 31, 2018. Replaces David Kirkpatrick.
 
Vanessa Crossfield, North Little Rock, to the Advisory Committee on Petroleum Storage Tanks. Appointment expires Dec. 31, 2018. Reappointment.
 
Beverly Lambert, North Little Rock, to the Arkansas Local Police and Fire Retirement System. Appointment expires Jan. 1, 2019. Reappointment.
 
Jane Phillips, Hot Springs, to the Keep Arkansas Beautiful Commission. Appointment expires Jan. 14, 2021. Replaces Dianne Hammond.
 
Chief Allen “AJ” Gary, Conway, to the Criminal Justice Institute Advisory Board. Appointment expires Jan. 14, 2019. Reappointment.
 
Officer John Murphy, Tumbling Shoals, to the Criminal Justice Institute Advisory Board. Appointment expires Jan. 14, 2019. Reappointment.
 
Sheriff William “Andy” Shock, Conway, to the Criminal Justice Institute Advisory Board. Appointment expires Jan. 14, 2019. Replaces Sheriff Charles Lucas.
 
Steven Shults, Pocahontas, to the Criminal Justice Institute Advisory Board. Appointment expires Jan. 14, 2019. Replaces Steven Thomason.
 
William Wright, Little Rock, to the Contractors Licensing Board. Appointment expires Dec. 31, 2019. Reappointment.
 
Sara Lenehan, Little Rock, to the Arkansas Fire and Police Pension Review Board. Appointment expires Jan. 1, 2016. Replaces Jackie McPherson.
 
Steven Miller, Pine Bluff, to the Arkansas Fire and Police Pension Review Board. Appointment expires Jan. 1, 2016. Replaces Chris Claybaker.
 
William Willis, Hot Springs, to the Arkansas Geological Survey. Appointment expires Jan. 14, 2022. Reappointment.

David Chris Gardner, Paragould, to the Arkansas Pollution Control and Ecology Commission. Appointment expires March 29, 2019. Replaces William Thompson.
 
John Nabholz, Conway, to the Board of Directors of the Arkansas Science and Technology Authority. Appointment expires Jan. 14, 2019. Replaces Heartsill Ragon.
 
Daniel Williams, Little Rock, to the Board of Directors of the Arkansas Science and Technology Authority. Appointment expires Jan. 14, 2019. Replaces John Miller.
 
Dr. Scott McKay, Magnolia, to the Board of Directors of the Arkansas Science and Technology Authority.  Appointment expires Jan. 14, 2019. Replaces Cesar Compadre.
 
David Rosegrant, Pine Bluff, to the Board of Developmental Disabilities Services.  Appointment expires Jan. 15, 2022. Reappointment.
 
Lenora Erickson, Hot Springs, to the Arkansas Board of Examiners in Counseling.  Appointment expires Dec. 1, 2017. Replaces Philip Hestand.
 
Dr. Art Gillaspy, Conway, to the Arkansas Psychology Board. Appointment expires Dec. 31, 2019. Replaces Lisa McNeir.
 
Dr. Betty Everett, Little Rock, to the Arkansas Psychology Board.  Appointment expires Dec. 31, 2019. Replaces Gary Souheaver.
 
Randy Fore, Mountain Home, to the Arkansas Board of Hearing Instrument Dispensers.  Appointment expires July 31, 2017. Replaces Linda Lowry.
 
Harold “Hal” Gunter, Jacksonville, to the Arkansas State Board of Chiropractic Examiners. Appointment expires June 9, 2018. Replaces Weldon Roberts.
 
Ann Xu, Hot Springs, to the Board of Visitors for the Arkansas School for Mathematics, Sciences, and the Arts. Appointment expires Jan. 14, 2021. Replaces Karen Garcia.
 
Steve Faris, Hot Springs, to the Board of Visitors for the Arkansas School for Mathematics, Sciences, and the Arts. Appointment expires Jan. 14, 2021. Replaces Luther Lowe.
 
Tasha Sinclair, El Dorado, to the South Arkansas Community College Board of Trustees. Appointment expires Dec. 31, 2020. Replaces Marc Parnell.
 
Robert Fagan, Little Rock, to the Arkansas State Independent Living Council. Appointment expires Feb. 1, 2018. Reappointment.
 
Dr. Jerri Fant, Little Rock, to the Breast Cancer Control Advisory Board. Appointment expires Jan. 1, 2019. Reappointment.
 
William Varner, Fulton, to the Arkansas Waterways Commission. Appointment expires Jan. 14, 2022. Reappointment.
 
Bill Poynter, Texarkana, to the Arkansas Natural Resources Commission. Appointment expires Jan. 14, 2022.  Replaces Corbet Lamkin.
 
Rickey “Buck” Joyner, Morrilton, to the Professional Bail Bondsman Licensing Board. Appointment expires September 30, 2016. Replaces Jeremy Rowland.
 
Chuck Graham, Cabot, to the State Crime Laboratory Board.  Appointment expires Jan. 14, 2020.  Replaces Carlton Jones
 
Michael “Denny” East, Marion, to the Arkansas Racing Commission. Appointment expires Jan. 14, 2020.
 
Hani Hashem, Monticello, Special Associate Justice to the Arkansas Supreme Court. CV-14-594. Replaces Justice Paul Danielson.
 
Vincent Guest, Wynne, Special Associate Justice to the Arkansas Supreme Court. CV-14-594. Replaces Justice Robin Wynne.
 
Noyl Houston, Jonesboro. Special Associate Justice to the Arkansas Supreme Court. CV-13-721. Replaces Justice Rhonda Wood.
 
Henry Kinslow, El Dorado. Special Associate Justice to the Arkansas Supreme Court. CV-14-1060. Replaces Justice Courtney Goodson.
 
Paul Byrd, Little Rock. Special Associate Justice to the Arkansas Supreme Court. CV-14-618. Replaces Rhonda Wood.
 
Chalk Mitchell, West Helena. Special Associate Justice to the Arkansas Supreme Court. CV-14-1072. Replaces Paul Danielson.

Revisiting the hire-fire authority of the Fort Smith City Administrator and a review of finances and operations at the Fort Smith Convention Center were part of Tuesday’s (April 14) study session held by the Fort Smith Board of Directors.

The Board voted Feb. 3 to table an ordinance redefining personnel authority of the City Administrator moving forward. In November 2013, the Board voted to empower City Administrator Ray Gosack to make hiring and firing decisions regarding department heads. The new ordinance would take that power away from Gosack and redistribute it to the Board of Directors.

During the Feb. 3 meeting, City Director Kevin Settle said hiring and firing power should be given back to the Board, noting that “it’s the responsibility of us elected to be the voice of the people,” and that “we seven are elected every four years, and ultimately I think the department heads need to be responsible to the people, which is us.”

At Tuesday’s study session, Mayor Sandy Sanders said he has heard from “citizens of high standing” who want to keep the hire-fire authority with the city administrator. However, Directors George Catsavis, Tracy Pennartz and Settle asked for the issue to be placed on the April 21 regular meeting agenda. The vote of only two Board members is required to place an item on a voting agenda.

CONVENTION CENTER
Tim Seeberg, general manager of the Fort Smith Convention Center, said the facility is not likely to ever generate enough revenue to cover the about $1.4 million in annual expenses. However, he told the Board he hopes to “lower the subsidy” the city pays to keep the convention center open.

Total revenue for the center in 2014 was $709,163, Seeburg said, a record for the center and up 8.9% compared to 2013. The city’s general fund covered the cost difference between revenue and the $1.4 million in 2014 expenses. Seeberg said the subsidy was reduced by $37,359 in 2014 compared to 2013.

Seeberg credited alcohol sales for the increased revenue. Such sales were $111,434 in 2014, well ahead of the $69,408 in 2013.

The center hosted 230 events in 2014, down from 237 in 2013. Seeberg said the gain in revenue despite fewer events shows that convention center use is more about quality of event than the number of events.

In responding to a question from Director Pennartz about the possibility of more revenue, Seeberg said the center could make more money if it had a kitchen to handle food sales, but even that would not close the gap. Seeberg also said

more than 90% of convention centers do not cover their costs, but are instead set up to generate money for the local economy.

To that point, Seeberg said the economic impact on the local economy of events at the convention center in 2014 was $17.049 million, which generated local tax revenue of $545,594.

“You can credit a lot of that (increased revenue and economic impact) to the local events that come in,” Seeberg said.

The center had 117 local events in 2014, just ahead of 116 in 2013.

Pennartz asked Seeberg for a list of ideas on generating more revenue for the center. Mayor Sanders quickly noted that such requests must go through the Fort Smith Advertising & Promotion Commission, the group contracted by the city to manage the center. Pennartz said whatever the process, she’d like a list of ideas. Seeberg agreed to provide those.

Analysts and retail experts say Wal-Mart, while focused on fresh grocery, customer service and employee relations, could also do better with its stagnant apparel division that represents about 7% of the U.S. annual sales, or $20.16 billion last year. 

Apparel sales rose by 3% from the prior year while still averaging just 7% of the company’s overall U.S. sales. Moving the needle just 1% percentage point would have meant an additional $3 billion in annual revenue last year, according to the company’s financial reports.
 
Two retail analysts recently asked Walmart U.S. CEO Greg Foran about the “status quo” apparel agenda, noting that there has been little mention of plans to better merchandise this high margin category under his leadership. Walter Loeb, analyst with Loeb Associates, said fashion retailing has become important internationally. 

“Particularly companies like Uniqlo and H&M have been very important competitors to Walmart and to everybody. We're soon going to see another entry with London-based Primark coming into the Northeast. I was wondering how Wal-Mart is going to address that competitor and all of fashion competitors because I think that it has lost share of market in fashion and lost it to other retailers,” Loeb asked Foran at the U.S. Stores Update meeting held in New York City on April 1. 

Foran acknowledged that Primark is a “very, very good competitor.” He told the analysts that Wal-Mart is well aware that Primark is coming to the U.S.

“We have had teams over there looking at their business. ... We know where they are coming and when they are coming. We have been leveraging off the (Esther) team and George brand and you can assume that we're going to compete very, very aggressively,” Foran said.

Foran also said the merchant team, who now reports directly to him, “is not frightened to lean in and have a go,” looking at jeans that might be on sale at Primark or a fashionable T-shirt. Foran said the merchants are “pulling in all the pieces.” He said they understand sourcing requirements and differences in tariffs and Wal-Mart will compete aggressively with Primark and anyone else in apparel.

“We won’t back away from having great prices,” he added.

Ernie Salsner, analyst with Gilford Securities, appreciated Foran’s focus on more attention to detail in the massive retail operation, but he told Foran that there’s another important element that has not been adequately discussed — the excitement of merchandising. 

“I really don't hear much of that (from this management team),” Salsner said.

Foran wasted no time in firing back by saying he’s plenty excited about merchandising sharing one of the items he’s most proud of this year which is a tank top that retails for $1.68.

“Assortment is absolutely the key to running our business. You've got to have the store operating discipline, but actually that is secondary to getting the assortment right. You can run the cleanest, tidiest nicest store that you've ever seen, but if the product in there isn't right, it actually doesn't matter. If you get the product right and the store isn't clean and nice and tidy, you'll still have a business. So merchandise is absolutely critical,” Foran answered.

OTHER INSIGHT
Carol Spieckerman, CEO of newmarketbuilders.com, applauds Wal-Mart for “battening down the hatches in grocery as threats” continue from all side.

“Family Dollar and Dollar Tree are already plotting their combined efficiencies and Aldi, and soon, Lidl, are pushing pedal to the metal on U.S. expansion,” she told The City Wire.

She said even apparel-savvy Target is taking a hard right turn toward grocery so Wal-Mart is right to gird its grocery business. That said, Wal-Mart is a multi-category retailer and apparel remains a high-margin opportunity area.

“Wal-Mart’s approach to apparel has been lopsided as of late. Active wear may be the new casual wear but not to the degree that focusing on it should come at the expense of better basics and true fashion, both from a brand partnership and space allocation perspective,” Spieckerman said.

Under the merchandising management of Duncan Mac Naughton, who left the company in November, the retail giant had been content with offering basic underwear, T-shirts, socks and licensed logo apparel. In the past two years the retailer signed new deals with Avia, Russell and Starter and expanded the lines of Danskin and OP which offer active wear, one of the fast growing categories within apparel.

Foran has given little insight into the apparel category since he took charge of Wal-Mart U.S. in October outside of his prized $1.69 tank top which he has mentioned on at least three prior occasions.

“Well-priced basics are Wal-Mart’s bread and butter, but it isn’t making a compelling statement in ‘better’ and ‘best’ apparel outside of active wear,” Spieckerman said. “Apparel does staggering numbers at Wal-Mart, of course, simply by virtue of its scale, yet asking how much better it could be should be keeping someone awake at night.” 

She said there are opportunities in the apparel category and as Foran plans to introduce an element of surprise in the grocery business it could also be parlayed into apparel.

“Suppliers can’t drive this strategic shift, but no doubt many will be more than happy to gear up once it happens,” Spieckerman said.

Jason Long, CEO of Shift Marketing Group, said Wal-Mart could and should do better with its apparel offerings. He noted that the “Win, Show, Place” agenda used in recent years has not played out well in apparel. He said there are niche opportunities that other retailers are taking in apparel, something Wal-Mart could definitely tweak to fit their low price model.

“Dick’s Sporting Goods recently unveiled a line of trendy, active wear inspired by Carrie Underwood under the ‘Calia’ brand. It’s doing quite well at a price point much higher that would likely work at Wal-Mart. But Carrie Underwood would have also appealed to the Wal-Mart demographic,” Long said. 

He said Target’s recent launch of Liv and Ava for curvy women was a great move for that retailer. He said there is “plenty of demand” for trendy clothes for women of all sizes.

Laura Heller, executive editor of Fierce Retail, told The City Wire that Target’s new line of plus-sized clothing made absolute sense for a retailer that is known for trendy fashion.

“Wal-Mart has never been known for its fashion,” Heller said.

Gov. Asa Hutchinson has a 63% favorable rating among registered voters in Arkansas, while President Barack Obama ranks much lower at 38%, according to a poll commissioned by Talk Business & Politics, Hendrix College and Impact Management Group.

In the survey, 25% of respondents said their impression of Hutchinson is “strongly favorable,” 38% said it is “somewhat favorable,” 9% said it is “somewhat unfavorable,” and 13% said it is “strongly unfavorable.” Another 12% did not recognize Hutchinson’s name, while 3% had no opinion.

Four hundred registered voters were surveyed April 2-5, with a plus or minus margin of error of 4.9%. Three-fourths were surveyed by landline and one-fourth by cell phone. The poll largely focused on education issues in Arkansas.

The survey began the day after Hutchinson held a press conference asking legislators to recall House Bill 1228, the controversial first version of the Religious Freedom Restoration Act, and the poll was in the field for the height of the legislative drama. Talk Business & Politics surveyed a similar question in February which found at the time that Hutchinson’s job approval stood at 52% to 12% who disapproved of his performance.

Almost half of the April survey respondents (47%) said they had a strongly unfavorable view of Obama, while 11% said they view him somewhat unfavorably for a combined 58% unfavorable rating. Another 23% have a strongly favorable view, while 15% view him somewhat favorably for a combined 38% favorable rating. Another 3% of registered voters said they had not heard of him, while 1% had no opinion.

Arkansans view their two U.S. senators more positively than negatively. Fifty percent of respondents view Sen. Tom Cotton favorably (32% strongly, 18% somewhat). Of the rest, 39% view him unfavorably (28% strongly, 11% somewhat), 8% have not heard of him, and 3% have no opinion. In the earlier February poll, a different but similar question – gauging Cotton’s job approval rating – had him at 50% approve to 30% disapprove.

The state’s senior senator, John Boozman, is viewed favorably by 46% of respondents (16% strongly, 30% somewhat) while 14% view him somewhat unfavorably and 6% have a strongly unfavorable opinion. Another 26% have not heard of him, while 8% have no opinion.

When asked about political affiliation, the most common answer was “independent” (34%). Another 33% said they are Republican (22% “strong,” 11% “not so strong”). Twenty-eight percent (19% strong, 9% not so strong) said they are Democrats.

Asked about their political beliefs, 26% said they are “very conservative,” 32% said they are “somewhat conservative,” 7% said “moderate,” 21% said “somewhat liberal,” and 9% said “very liberal.”

Respondents were asked what they thought is the “most important problem facing Arkansas today” and were not given a list from which to choose. The economy was the most oft-cited answer (18%), followed by education (10%) and health care (7%). No other issue polled above 4%.

The respondents were almost evenly split by gender and evenly split by the state’s four congressional districts. Eighty-four percent said they are white, 12% said they are African-American, and 2% said they are Hispanic American or Latino.

Forty-five percent said their total annual household income is below $51,000, while 15% said it is above $100,000. Forty-one percent said they are a college graduate. Half said they live in a rural area, while 29% said they live in a suburban area and 19% said they live in an urban area. Sixty-four percent said they are at least 45 years old.