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MARKETING NEWS Nielsen: Newspaper ads touted for engagement and influence .................................................. 2

Print-to-Mobile sees emergence of image recognition and augmented reality in 2012 ............. 3

CPG mobile advertisers aim to lure consumers through video, social interactions .................... 4

Bring your email campaigns into 2013 with these 5 cross-channel tips ..................................... 5

PUBLISHING NEWS Web sparks print comeback for magazines ................................................................................ 7

Walmart Canada launches Walmart Live Better magazine. ....................................................... 9

Aging Well magazine rebrands as Today’s Geriatric Medicine ................................................. 9

POSTAL NEWS Congress branded a “roadblock” to a US Postal Service recovery ........................................... 10

U.S. card industry, mail carriers flex muscle in Postal Service debate .................................... 12

RETAIL NEWS JC Penney to bring back coupon advertising in newspapers .................................................... 14

Macy's appeals latest ruling Martha Stewart-J.C. Penney dispute ........................................... 14

Target accepts $760.7 million of debt for purchase .................................................................. 15

True Value CEO Heidemann to retire ...................................................................................... 15

ECONOMIC UPDATE

GDP: 4th

quarter 2012: 0.4 percent. 3rd

quarter 2012: 3.1 percent.

Unemployment Rate: the unemployment rate was little changed at 7.6 percent in March.

Consumer Confidence: improved in February, declined in March. The Index now stands at 59.7

(1985=100), down from 68.0 in February.

April 22nd

, 2013

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MARKETING NEWS

Nielsen: Newspaper Ads Touted for Engagement and Influence

Staff , Print In The Mix . 4/18/2013

An online survey of 5,000 U.S. adults conducted by Nielsen and underwritten by the

Newspaper Association of America compares audience engagement with different major

media on several key metrics, including consumers' engagement with advertising.

Key advertising-related findings from The 2013 Nielsen National Cross-Media Engagement

Study:

AD ENGAGEMENT

For consumers, newspaper engagement scores exceeded those of other media (TV, radio,

social media). On indices where 100 equals the norm, print newspapers rated highest on

how engaged audiences with advertising than the media overall; local newspapers ranked

19% higher and national newspapers, 17% higher.

NOTICING ADS

When respondents were asked about media use and whether they usually notice

advertisements, local newspapers scored highest of all media at 48%, followed by national

newspapers (46%). Local talk radio scored 42%, cable TV, 39% and social media, 37%.

INFLUENCING PURCHASES

A critical question is whether advertising influences consumers’ likelihood of making a

purchase. On this metric, 35% of consumers surveyed said ads viewed in local and national

newspapers were most likely to influence their decision to purchase. Social media ads rated

last (25%).

AD ANNOYANCE

Another factor in the crowded media landscape is whether consumers find advertising

irritating. Nielsen asked participants if they found the advertising in a given media very

annoying. Here the goal for a media is to score low. Local newspapers scored lowest (31%).

Social media and blogs scored highest (45%).

About: The 2013 Nielsen National Cross-Media Engagement Study is based on an online

survey of 5,000 adults conducted by Nielsen and underwritten by the Newspaper

Association of America was fielded from December 9, 2012 through January 8, 2013 and the

margin of error is 1.4%.

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Print-to-Mobile Sees Emergence of Image Recognition and Augmented Reality in 2012

Press Release , Whattheythink.com . 4/15/2013

Nellymoser study reveals rapid adoption of image-based technology, representing 19% of

all mobile activated print experiences.

Mobile activation in the Top 100 U.S. magazines has dramatically changed from 2011 to

2012. Several compelling patterns have emerged, notably the increasing popularity of

issue-wide mobile programs and magazine branded scanning apps, particularly those

leveraging augmented reality, image recognition, and invisible watermarking technology.

Over the last two years that Nellymoser has tracked the use of print to digital content in

magazines, there has been overwhelming growth in mobile activations used in both editorial

and advertising content.

This initiative was designed to amass the most comprehensive picture of how mobile is

being deployed in the U.S. magazine market. Every page was examined, every mobile

enhancement was launched, and the data was collected on both advertising and editorial

pages. Nellymoser uses this data for both industry-wide benchmarking and to inform the

design and implementation of print to digital experiences.

Some of the striking results include:

Number of mobile experiences has risen to 8,448 mobile activations in 2012 with Q1 at

1,472 and Q4 rising to 2,252, over 150% growth In September of 2012, typically a special issue month, total activations peaked at 1,312

for the year Image-based activation, driven by either invisible watermarks or image recognition,

represented just under 20% of all activations Augmented reality for the first time has become a strong presence, comprising almost

10% of all mobile activation points Magazine-specific scanning apps, such as those published by Lucky, Seventeen, GQ,

Teen Vogue, Brides, Popular Science, and Maxim, were released by 12% of the Top 100 Although advertisers are actively driving the use of interactive experiences across print

and cross channel to tablets, the exciting development tracked in the study is the

growth of editorial engagement, creating more interactive experiences for the reader

“2012 was a watershed year for mobile activated print. Close to 20% of all activations were

image-based. This represents a significant shift from code-based activation (e.g. QR codes)

to image-based activation,” stated John Puterbaugh, Executive Vice President & Chief Digital

Officer Nellymoser. “We expect this year over year growth to continue, fueled by the unique

opportunity for editors to connect their print and digital content and engage readers via

mobile.”

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CPG Mobile Advertisers Aim to Lure Consumers Through Video, Social Interactions

Staff , Marketing Charts . 4/18/2013

Millennial Media and comScore have released a new report examining CPG mobile ad

campaigns and characteristics of the mobile consumer goods audience. The study reveals

that compared to the average advertiser on the Millennial Media network, CPG brands were

more focused on encouraging consumers to watch video, with 44% of the campaigns

incorporating a video aspect (compared to 16% on average). CPG advertisers also aimed to

engage consumers through social media calls to action, with 34% of campaigns

incorporating social as a post-click action, versus 18% of advertisers on average.

CPG advertisers’ campaign goals also differed significantly from the average advertiser last

year. Brand awareness was the top goal among CPG brands, at 46% of campaigns,

compared to just 14% for the average advertiser. CPG advertisers were also above-average

in having site traffic as a goal (29% vs. 14%), while less concerned with other goals such as

sustained in-market presence (11% vs. 38%), product launch/release (3% vs. 12%) and

increased foot traffic (5% vs. 10%).

Overall, 40% of CPG campaign spend on the Millennial Media platform was attributed to a

form of real-time location-based targeting, as brands vied to get their message to mobile

users in places such as within the radius of a grocery store.

Who might be within that radius? According to comScore data contained within the report,

among the total mobile audience, men are responsible for 54% of mobile grocery shopping,

with 54% of those men being in the 18-34 demographic. Overall, though, mobile consumer

goods audiences skew female, at 53% share.

Turning to consumers’ in-store mobile behavior, which the researchers suggests is indicative

of “mobile Consumer Goods behavior,” the study demonstrates that finding store location

(52%), comparing product prices (51%) and purchasing goods or services online (50%) are

the most popular activities for men, while researching product features, purchasing online

(each at 41%) and finding coupons or deals (40%) are most common among women.

Other Findings:

Beverage brands were most heavily represented among CPG sub-verticals advertising on

Millennial Media in 2012 (at 43% share), followed by cosmetics and hygiene (28%), food

(14%) and household products (10%) brands. 82% of connected device impressions for CPG brands in 2012 came from a smartphone,

and 18% from a tablet. Android topped the OS mix (48%), followed by iOS (32%) and

BlackBerry (16%). Foodies (10%) were the most actively targeted audience type by CPG advertisers,

followed by pet owners (7%), parents, avid shoppers, and household shoppers (each at

6%).

About the Data: The data are based upon a study Millennial Media commissioned with

mobile measurement firm, comScore, and Millennial Media’s global platform observations

across thousands of mobile ad campaigns.

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Bring Your Email Campaigns Into 2013 With These 5 Cross-Channel Tips

Shawn Myers , DM News . 4/15/2013

Marketing ROI depends on delivering more effective campaigns that properly reflect the

relationships brands have with customers, and how they spend their time online. So, in

today's multichannel world, email needs to break out of its silo and become integrated with

other relevant channels. From mobile and social media to the rise of Big Data, it's important

to learn how to take advantage of trends.

Here are five cross-channel tips to help marketers generate better results from their

programs and get a leg up on their competition.

1. Mobile-friendly email extends past the click

According to Nielsen, nearly half of all Americans own smartphones and mobile open rates

are exploding. These days, subscribers have the opportunity to open an email on one of

almost 100 different screen sizes, which is why it's more important than ever to optimize

your templates. While marketers can't design independently for every device, new

approaches like responsive design can help create templates that work with the dominant

mobile platforms used by consumers.

One way to customize the experience for on-the-go consumers is to bring the most relevant

information to their fingertips, making it easy to provoke action. Mobile optimization can do

this by hiding the secondary information and displaying what's most relevant, as well as by

making the content finger friendly. For the best user experience, it's important to mobile

optimize landing pages, too. Consumers value consistent experiences and optimizing both

the email and the subsequent landing page drives better results from your campaigns.

2. Data is king, content is queen

Data is all too easy for marketers to come by these days, but that hasn't always been the

case. The challenge now is that marketers have so much information at their fingertips that

it's easy to be completely consumed by analyzing it. Data is the key to relevance, but

leveraging data alone doesn't automatically guarantee relevant communications. If data is

king, content is queen, and that means marketers need to pair data with context and

content that is really going to resonate with their audience.

Be sure not to exclusively focus on data analysis. Don't short change your content, as it's

critical for building relevant communications. To truly achieve the relevance that marketers

strive for, The Data King and the Content Queen must get along harmoniously.

3. Leverage mobile to acquire permission to engage

Integrating mobile into your permission acquisition programs doesn't have to be a daunting

task. A simple campaign where subscribers can text a short code with “Subscribe” and their

email address is a great means to connect with your customers in the world at large and

gain permission to open up a dialogue. Through SMS-based opt-in, mobile customers have

an easy way to opt in for further engagement with your business both in email and via SMS.

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Consumers don't think of SMS, email, and social as different silos; for them, it's all just

communication with your brand. Each channel has its pros and cons as a means of creating

a deep customer connection, and it's our jobs as marketers to reach out with the channel

that is most appropriate for the content, and the unique needs of the each particular

customer.

4. Serve up an experience relevant at the open

Reaching the inbox gets harder each day. Because of the growth of tools such as auto-

foldering, identifying opportunities to optimize email communications for relevancy at the

moment of the “open” are increasingly important. There are numerous options to create

timely relevancy. Device detection, countdown clocks, weather-driven offers, and offer

optimization all help present the most relevant content to recipients at the time of open.

Having the right tools to allow messaging to be tailored specifically to actions that are

initiated by the recipient not only shows awareness of what they're doing, it also confirms

that your brand is paying attention to how they're doing it.

5. Think program, not individual message

Consumers love a good story and great experiences. Thinking about the overall consumer

communication experience as a whole and building campaigns that tie together across

individual messages, brings more depth to each individual message, and a more engaging

customer experience overall. The introduction is the marketer's opportunity to set the stage,

give a glimpse into what the brand has to offer, and set expectations on what's to come.

Follow that with the early engagement communications that are more nurturing in nature.

The goal is to continuously nurture your customer relationships, helping them to deepen,

persist, and build towards the eventual goals: conversions and lifetime brand loyalty.

Rewarding engaged customers with incentives and offers is just as important as winning

back customers who are lapsing. Each type of engagement should be thought of within the

greater context of the lifecycle stage for that consumer.

Marketing is not a static discipline

The rapid consumer adoption of emerging channels like mobile and social, as well as the

explosion of available data on consumer behavior, has led to a revolution in digital

marketing. Marketers must continually evolve and advance their strategies to stay on top of

these trends and improve their marketing results.

Taking some simple steps as outlined above can help evolve your marketing campaigns, but

it's also important to consider the technology, resources, and ongoing strategies required to

keep pace with the continual changes in digital marketing. Marketers must work with the

right technologies and partners to drive cutting-edge marketing programs and the most

relevant communications for your customers.

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PUBLISHING NEWS

Web sparks print comeback for magazines

Matthew Flamm , Crain's New York Business . 4/19/2013

Only newspapers have been given up for dead more often than magazines. But though their

print cousins continue to lose advertising at a brisk clip, some magazine publishers are

trumpeting a turnaround few could have foreseen in the dark days of 2008 and 2009, when

nearly 1,000 titles shut down.

Both Hearst Magazines and Condé Nast, boosted partly by a revival in fashion and beauty

advertising, just marked their best first quarter in five years. Cosmopolitan, which has a

new editor, a revamped Harper's Bazaar, and newcomer Food Network Magazine registered

solid double-digit gains in advertising pages, putting Hearst up by 6.6% in ad pages overall.

Bon Appetit, Details and GQ did the same for Condé Nast, which rose 3.3% versus a year

ago.

The improved fortunes come amid uncertainty for the industry's biggest publisher, Time

Inc., which will soon be spun out of Time Warner to become a stand-alone public company.

Its ad pages grew by 0.6% in the quarter, with fashion title InStyle up 5.5%, and Time—the

last major U.S. newsweekly—down 13.4%, according to Publishers Information Bureau.

Media observers credit Hearst and Condé Nast with keeping their print editions fresh while

turning magazines into "brands" with audiences that extend across mobile devices,

websites, social media and events. But the bump in ad pages remains the key marker of

industry success and a sign that marketers see a future in glossy paper and ink.

"The fashion consumer, the beauty consumer continue to tell us that magazines are her

primary source of information about those categories," said Hearst Magazines Publishing

Director Michael Clinton, explaining the surge over the past year in fashion and beauty

advertising. He added that this was one area where digital media were outmatched: "The

fashion consumer wants to hold, feel, touch, turn the page."

The strong flourish

The economy has also played a role. An improvement in the housing market has been good

for Hearst's shelter titles, including Elle Décor and House Beautiful, while the euro crisis has

led global luxury brands to redirect some European marketing dollars to the U.S. That's

been a boon to Harper's Bazaar and sister titles Elle and Marie Claire, as well as to GQ,

Vogue and others at Condé Nast.

Timing was also a factor. There are more car launches this year, which helped automotive

advertising spike 30% in the first quarter for Condé Nast. Some carmakers were also saving

money last year for the Summer Olympics, according to Chief Revenue Officer Lou Cona.

A more important fact, magazine executives say, is that they have reshaped their

businesses. Condé Nast, for instance, now has a print and digital "footprint" of more than

160 million, up from 50 million five years ago, according to Mr. Cona. The number reflects

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how many times content is delivered to consumers across the company's many channels,

regardless of duplication. The number of integrated print and digital campaigns was up 50%

in the quarter.

The increase in ad pages, he insisted, was almost a trivial part of the story.

"We find that as money gets fragmented, our clients are looking for narrower and deeper

relationships," Mr. Cona said. "It's a much more strategic relationship, as opposed to selling

a page in a magazine or a banner on a website."

But despite the audience growth on digital properties, advertising revenue from tablets and

websites remains a small piece of the total ad-revenue pie—about 10% to 12% for Hearst

and 12% for Condé Nast.

Those numbers are par for the course for most lifestyle magazines, and may stay that way

for a while. "They're having a hard time gaining scale on the digital side," said Scott Kruse,

director of print for media-buying giant Group M. "Until you really have scale, you're not

going to be able to garner much in the way of [ad revenue]."

Mr. Kruse also points out that the erosion in print advertising has only slowed, not stopped.

Industrywide, ad pages slid 4.8% in the first quarter. A year ago, they fell 8.2%.

Mass-audience titles like Ladies' Home Journal and Better Homes and Gardens at Meredith

and Woman's Day and Redbook at Hearst suffered double-digit declines in the quarter due

to weakness in pharmaceutical advertising. Other ad categories, like automotive and

financial, have increasingly moved to the Web. "Some of those dollars are never coming

back," Mr. Kruse said.

The magazine industry has not only shed titles but—with Hearst's 2011 acquisition of

Hachette Filipacchi Media—has consolidated into four major players from five. Some insiders

wonder if it is now moving toward an ecosystem in which only the strongest titles flourish.

"You're seeing more dollars going to a shorter list," said one longtime media buyer.

But though digital advertising is still in its early stages, industry executives say that

audience growth on digital platforms is both critical to the future and one reason for print

advertising's comeback.

"There are more opportunities to partner," said Brenda White, publishing activation director

at media-buying agency Starcom USA. "We're buying in all assets."

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Walmart Canada launches Walmart Live Better magazine

Staff , The Write News . 4/18/2013

Walmart Canada has partnered with Rogers Media to launch Walmart Live Better magazine.

The publication is free at Walmart Canada Supercenters. It is also available online and for

mobile devices. It has a one million print circulation.

The first issue of Walmart Live Better has a food section with more than 30 recipes. It also

includes articles cover affordable backyard decor, gardening ideas, allergy relief tips,

supplements, fashion tips for kids and overhauling a make-up bag. There is also an

interview with Katie Schulz, Walmart's Mom of the Year.

Walmart Live Better editor-in-chief Sandra Martin said in a release, "Canadians want to be

inspired by new ideas and stay on budget. With Walmart Live Better they don't have to

make a choice. Our team of experts provide great ideas on how to make dollars go farther

with style."

Aging Well Magazine Rebrands As Today’s Geriatric Medicine

TJ Raphael , Folio . 4/16/2013

There are about 300 million people who live in the United States, almost a third, or 78

million, of whom are baby boomers. Now that America’s largest population segment is

aging, the Pennsylvania-based Great Valley Publishing Company is rebranding its aging-

focused magazine to better reflect the nation’s new demographics.

The publisher’s bimonthly title Aging Well will become Today’s Geriatric Medicine. The first

issue will hit with the May/June edition, and the brand’s digital presence has been remade

as well with the introduction of TodaysGeriatricMedicine.com

“Now, with older adults representing the largest segment of America’s population, [we] are

expanding the scope of coverage to include other health care professionals whose

participation figures prominently in the care of older adults, including dietitians, nurses,

social workers, physical therapists, and occupational therapists,” a statement from Great

Valley Publishing Company says.

Today’s Geriatric Medicine is part of a Great Valley Publishing roster of publications, which

includes Today’s Dietitian and Social Work Today. Great Valley also publishes the health

information management trade magazine, For The Record, as well as the monthly,

Radiology Today.

“Helping geriatric patients maintain their health and quality of life requires a team of

professionals whose expertise and involvement are varied,” explains publisher Mara

Honicker in a statement. “The physician certainly leads the team, but we wanted to expand

the magazine’s focus to include the other professionals who apply their knowledge and input

to the care of older adults. We’re confident that the magazine’s new title clearly reflects this

expanded editorial coverage and will appeal to all professionals who make up the geriatric

medicine team.”

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POSTAL NEWS

Congress branded a “roadblock” to a US Postal Service recovery

Staff , Post & Parcel . 4/18/2013

The US Postal Service, represented by Postmaster General Patrick Donahoe and the

chairman of the Board of Governors Mickey Barnett, placed the blame squarely on the

shoulders of Congress itself for acting as a “roadblock” to desperately needed postal

reforms.

Yet members of Congress shot back with the suggestion that USPS has not been doing

everything it can to cut costs and right its own financial ship.

Darrell Issa (pictured right), the fiscally-conservative chairman of the House Oversight

Committee, which held yesterday’s hearing, suggested that USPS had bowed to political

pressure in scrapping its plan to stop delivering the mail on Saturdays from this summer.

He also claimed that USPS had been delaying the closure of “wasteful” mail processing

plants to please certain US Congressmen – something USPS denied.

“The Postal Service has developed this pattern of saying the right thing, but then delaying

reforms, scaling them back or just scrapping them entirely,” Issa claimed. “Clearly, special

interest lobbying and intense political pressure are dictating events rather than acting in the

best interests of the American people.”

“Roadblock”

Barnett, whose fellow governors decided to scrap plans to stop Saturday mail deliveries

because of a mandate passed by Congress in March forbidding such a move, said that it was

the fault of Congress that loss-making USPS was unable to move forward and save billions

of dollars in operating costs.

“Congress is the roadblock that stands in the way of a fiscally responsible plan”

“Congress is the roadblock that stands in the way of a fiscally responsible plan to save $2bn

a year in operating costs – we need to remove that roadblock,” he said.

During the heading, Issa asked Barnett why USPS had chosen to obey one law – delivering

mail six days a week – while breaking another law, its obligation to pre-fund future retiree

healthcare benefits, which it has refused to do since last year.

Barnett revealed that USPS had decided not to push ahead with its new delivery frequency

schedule in order to avoid a court case that would have added huge uncertainty for

customers in their mailing plans, as well as for 23,000 USPS delivery staff who would like be

reassigned.

But he suggested to Congress that at some point in the future, moving to five-day-a-week

mail delivery was inevitable.

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“It will happen. I can’t tell you when, but it will happen,” he declared.

Postmaster General Donahoe was also pinning blame on Congress for USPS woes. He

insisted that the Postal Service has a “robust” five-year business plan to turn its situation

around, and stated that among all postal stakeholders, only Congress had taken no action

whatsoever to address the situation, having failed to pass postal reform last year.

Donahoe said: “Current law prohibits the Postal Service from moving to five-day mail

delivery. Current law forces the Postal Service to overpay into the Federal Employees’

Retirement System (FERS). And, current law limits the Postal Service in its ability to offer

new products and services. These are just a few examples among many.”

The Postmaster General said that if Congress delayed legislative reforms any further,”the

day may come when we have insufficient cash to pay our employees or suppliers”.

He suggested that talk of USPS being insolvent was already pushing customers to seek

alternatives.

Barnett said that by 16th October, the Postal Service would have two days’ worth of

operating cash available according to current calculations. Only the subsequent Christmas

rush would allow operations to continue.

USPS will not be making its $5.5bn payment for its retiree health benefits fund due this

September, he said.

“If we are not making the payments that are due, then we are not solvent,” he suggested.

“And we are not making the payments that are due.”

Prices

Mickey Barnett, the chairman of the USPS Board of Governors, called on Congress to reform

the pricing powers of the Postal Regulatory Commission

During yesterday’s hearing, the US Comptroller General Gene Dodaro said that he believed

one key area where USPS already has the power to improve its finances, but has refused to

do so, is in increasing its prices for products that are currently loss-making.

In particular, Periodicals and Standard Mail Flats services lost USPS $1.5bn last year. USPS

is now considering making an “exigent” rate increase request to tend to loss-making

products.

Barnett suggested that some leeway was being given to catalogue publishers because

catalogues are seen as “feeders” for package volumes, encouraging consumers to make

purchases that turn into parcel shipments. He also said that with the inflation-based price

cap, USPS could not raise prices quickly enough to recover losses from some of its services.

The USPS governor did say that the Postal Service needed more flexibility on pricing, but his

suggestion was to remove some of the powers of the regulator, the Postal Regulatory

Commission.

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“At the moment we have to file with the Postal Regulatory Commission in an unduly

cumbersome and slow process,” he said. “We should not be required to put in an upfront

filing, it’s too slow, there’s no flexibility at all.”

He suggested that USPS should either have only its governors regulating its prices, or have

the Commission’s powers limited to a rapid assessment made just as the Postal Service

announces its new pricing.

U.S. Card Industry, Mail Carriers Flex Muscle in Postal Service Debate

Elvina Nawaguna , Reuters . 4/19/2013

The U.S. lobbying forces that defeated a Postal Service plan to end Saturday delivery to

reduce its annual deficit are now using their Capitol Hill clout to pass a law to make six-day

delivery mandatory.

The Postal Service, which is losing millions of dollars everyday as more Americans

communicate by email and the Internet, has said it could require a $47 billion taxpayer

bailout by 2017 if Congress doesn't permit cuts.

At a hearing on Wednesday before the House Committee on Oversight and Government

Reform, the president of the National Association of Letter Carriers urged lawmakers to

write six-day delivery into law.

"Members of the committee should not blindly follow uninformed public opinion when it

comes to Saturday delivery," said Frederic Rolando.

A bill mandating six-day delivery begun in the Oversight Committee in January has gained

momentum and now boasts 175 cosponsors. It is yet another sign of the growing influence

of interest groups and postal employee unions who constitute a powerful lobbying force on

Capitol Hill.

The group, which includes lobbyists for greeting card companies, the newspaper industry

and letter carriers unions, spent more than $1 million last year to thwart the Postal

Service's plan.

A legal opinion from the Government Accountability Office in March that said cutting

Saturday service would be illegal further dent the plan.

Supporters on both sides of the issue realize the debate is far from over.

Tonya Rush, president and chief executive of the Newspaper Association, said some interest

groups realize the Postal Service is trying to find solutions to financial losses that totaled

$16 billion last year.

"Even though we're in agreement with the Postal Service in many of the things that they're

trying to do. This is one in which we disagree," he said.

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Backers of the Postal Service plan blamed lobbyists for defeating the five-day-a-week

proposal.

SERIOUS POLITICAL PRESSURE

"Despite some assertions, it's quite clear that special interest lobbying and intense political

pressure played a much greater role in the Postal Service's change of heart than any real or

perceived barrier to implementing what had been announced," Republican Representative

Darrell Issa of California said in a statement.

Rush said her association's fight kicked into higher gear last month when more than 100

members visited lawmakers to support six-day delivery. "This is how laws are made," said

Rush.

Rafe Morrissey, the Greeting Card Association's vice president for postal affairs and a

Hallmark lobbyist, said the coalition mobilized urgently after the Postal Service announced

its plans.

Lobbyists emphasized that the Postal Service could not prove that it could achieve $2 billion

in savings.

The mailing coalition's power in the fight underscores how difficult it will be for the Postal

Service to win congressional approval for other cost-cutting moves, such as layoffs, rural

post office closures or stepping up competition with private-sector companies.

A budget proposal from President Barack Obama offers significant concessions to the Postal

Service, including a provision to eliminate Saturday delivery.

Lobbying records show that last year, the National Association of Letter Carriers, National

Rural Letter Carriers' Association, Greeting Card Association and Envelope Manufacturers

Association spent nearly $1 million combined pushing for six-day delivery.

The three major postal unions also poured a total of more than $7 million last year into the

re-election campaigns of key congressional supporters, according to data on

OpenSecrets.org.

14

RETAIL NEWS

JC Penney to Bring Back Coupon Advertising in Newpapers

Staff , Ad Age . 4/15/2013

JC Penney will reverse Ron Johnson's strategy of reducing discounts and put coupon

advertising in newspapers again, said William Ackman, the activist investor who recruited

the ousted chief executive.

Mr. Johnson, who was replaced by Myron Ullman on Monday, implemented a pricing

strategy that eliminated almost all of the company's discounts and promotions in favor of

everyday low prices. Shoppers shunned the department store chain, and sales sank 25%

last year.

Mr. Ackman, speaking at a real estate conference in New York, also said Mr. Johnson's

physical absence from the company's headquarters in Plano, Tex., undermined his overhaul

of the department-store chain. Mr. Johnson, along with other former Apple executives he

hired, commuted to JC Penney from California and New York. Mr. Johnson's plan, which Mr.

Ackman today continued to call the "right vision" for the company, led to a net loss of $985

million last year.

Management also needs to "calm the vendors," said Mr. Ackman, whose Pershing Square

Capital Management is JC Penney's largest investor. The company has delayed payments to

suppliers, UBS AG analyst Michael Binetti said in a research note earlier this week.

Earlier this week, Mr. Ullman, who also preceded Mr. Johnson, said he would work quickly to

build upon and leverage JC Penney's legacy as a retail leader, in the wake of Mr. Johnson's

departure. "To that end, my plan is to immediately engage with the company's customers,

team members, vendors and shareholders, to understand their needs, views and insights,"

he said in a statement. "With that knowledge, I will work with the leadership team and the

board to develop and clearly articulate a game plan to establish a foundation for future

success."

Macy's appeals latest ruling Martha Stewart-J.C. Penney dispute

Katherine Boccaccio , Chain Store Age . 4/16/2013

Macy’s Inc. filed an appeal on Monday, challenging Manhattan state court judge Jeffrey

Oing’s Friday ruling that J.C. Penney can sell unbranded Martha Stewart goods in its stores,

at least temporarily.

Penney was celebrating the decision that would allow it to sell Martha Stewart items as long

as they didn’t carry her name, especially since the products – valued by one analyst at $100

million -- were already manufactured and being stored in warehouses.

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In the Monday appeal, Macy’s claimed that Oing "erred in several significant respects."

Previously, Oing had barred Penney from selling the disputed goods under a Martha Stewart

label. His ruling on Friday denied a request by Macy's to expand that ban to include

products that would be branded "JCP Everyday.”

Target accepts $760.7 million of debt for purchase

Alaric Dearment , Retailing Today . 4/15/2013

Target has accepted for purchase $760.7 million worth of debt as part of a $1.1 billion debt-

refinancing plan announced last month, the mass merchandiser said.

The company announced plans in mid-March to purchase up to more than $1.1 billion worth

of debt securities and will pay close to the full amount for those accepted for purchase.

The offer to purchase the debt from the people holding it expired Wednesday night at

11:59, the company said.

True Value CEO Heidemann to retire

Staff , Retailing Today . 4/16/2013

True Value president and CEO Lyle Heidemann plans to retire May 31.

John Hartmann has been appointed as the company’s new president and CEO, following the

retirement of Heidemann. Heidemann will continue to serve True Value through the end of

2013 as an adviser.

"As I reflect on the past eight years with True Value, I would like to thank two significant

groups of people that have made these years personally rewarding for me: our True Value

associates and our True Value retailers," said Heidemann. "I leave feeling confident in the

future of True Value. John is an exceptional leader with strong strategic thinking skills,

tremendous financial acumen and a true passion for the entrepreneurial spirit. He and our

True Value associates and retailers will have continued success."

Hartmann has more than 15 years of corporate experience, including 11 years in the home

improvement/hardware retail sector. He served as CEO of Mitre 10, a New Zealand-based

hardware cooperative, and spent eight years at Home Depot and HD Supply in a variety of

roles, including long-range planning, strategic business development, operations and

sourcing. He finished his tenure as chief operating officer of the electrical and

plumbing/HVAC divisions.

Hartmann holds a Bachelor of Science degree from Rochester Institute of Technology and a

JD from Syracuse University College of Law.

"The True Value board conducted an extensive search process to choose the ideal person to

succeed Lyle," said Brent Burger, chairman of the board for True Value. "John was our

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unanimous choice. He has a deep understanding of consumer expectations, product

distribution and the competitive landscape, and equally important, he has a clear

understanding — with first-hand experience — of the hardware co-op environment."