Home prices gleaned by sellers in Benton and Washington counties continued to rise in January. Median sale prices increased 13.7% and 6.7%, respectively among the two counties when compared to the same month in 2014, according to Paul Bynum, analyst with MountData.com

There were 436 homes sold in the two counties last month, with an accumulated volume of $81.298 million. The market was up 8.18% in Benton County and 19.4% in Washington County, Bynum reported. He said it took just 66 days on average for homes to obtain a contact and buyers paid 97.8% of the list price, one of the healthiest months recorded in recent months.

BENTON COUNTY
Benton County is off to a good start in 2015 as agents sold 257 homes with a total value of $45.932 million last month. Unit sales were flat, but higher home prices pushed the volume up 9.3% from $41.986 million posted in the same month last year. 

The median home price of $178,727, or $87.3 per square foot, in Benton County is being fueled by a stable demand for new homes and more homeowners moving up and down now that they are regaining positive equity positions, according to local agents. A recent report by Irvine, Calif.,-based RealtyTrac.com found that 23% of the homeowners in Northwest Arkansas are seeing their equity resurface, and that was on top 13% who were already in strong equity position.

Average prices in Benton County have recovered about 24% of the 30% lost during the 2006 peak to the 2011 trough period and since. In Washington County, 27% of the market loss has been recovered, according to Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas.

“I’m off to a great start this year closing a $550,000 cash sale last month in western Bentonville. A buyer from California relocated here for a job and purchased in the Versailles subdivision, near the new Bentonville West High School,” said Vicki Briolat, agent with Crye-Leike Real Estate.

She said buyer confidence is positive and there are far fewer low ball offers coming in as the foreclosure market continues to weaken. 

“Some people were buried so long under flat to negative equity in their homes, but that is changing as property values continue to rise. We are looking for a strong spring season and with Walmart bonuses coming in March, now is the time for resellers to list if they want to move up or down,” Briolat said.

WASHINGTON COUNTY
Bynum said agents in Washington County also had a good month. There were 179 homes sold with a value of $35.365 million, up compared to 145 homes worth $28.059 million in the same month last year. 

The median price per square foot rose to $90.7 in Washington County last month, up 6.7% from the year-ago period and 15.2% higher than in January 2013. Across the nation, median home sale prices are up 6% from a year ago.

At $159,125, the median price in Washington County is 4% more expensive than in neighboring Benton County, and is 52% more expensive than in Crawford County, it’s neighbor to the South.

Agents said east Fayetteville remains an area with more rapidly rising prices given there is limited new building because there have been few new developments in recent years.  Jeremy Pate, development director with the City of Fayetteville, recently told The City Wire that one, perhaps two, new east side residential developments are being reviewed by city planners. 

Austin Bivens, agent with Keller Williams in Fayetteville, said much of the growth in the Fayetteville in recent years has been west of Interstate 49 in recent years, but there are many families who prefer the east side of town.

Fayetteville also appeals to young adults who want to live near the music and entertainment district. Real estate website Zillow predicts Millennials will overcome Gen X as the largest group of home buyers this year. More than half of 18- to 34-year-olds said they plan to buy a house in the next one to five years, according to a survey by Zillow last summer. 

That said, some of the best values on home prices are found in east Springdale, which was an area hit hard by the foreclosure market. The median home prices in the east Springdale zip code were roughly 30% cheaper than homes in the west Springdale zip code, according to MountData.com.

Median Home Prices (January)
Benton County
2015: $152,750
2014: $128,900
2013: $140,500 
2012: $137,950

Washington County
2015: $159,125
2014: $150,000
2013: $137,950
2012: $130,500

There are numerous ways retail giant Wal-Mart assesses customer service feedback from its 5,000 U.S. stores. But there is evidence that a kiosk positioned directly in the front of the store could be a new way Wal-Mart solicits direct customer service feedback from its 140 million weekly shoppers.

The HappyOrNot kiosk is being tested at Walmart Store No. 100 which is located directly across the from the retailer’s corporate headquarter offices in Bentonville. This store is often a test lab given its proximity to top management teams. During a 20-minute period on Saturday afternoon (Feb. 14) there were no shoppers who used the kiosk to rate their experience. Traffic in the store was heavy ahead of inclement weather and last minute Valentine's Day shoppers.

Wal-Mart did not say if this kiosk would be added to other stores, only noting it is a test. Walmart U.S. CEO Greg Foran has made no secret of his efforts to improve store operations across the U.S. fleet. With some 5,000 stores, the retailer has said making changes at the bottom performing 10% is a big job.

Foran has spent much of the last five months on the job as chief of U.S. stores out in the field. He said during the recent Year Beginning Meetings that he’s visited about 70 stores and talked with hundreds of employees. That’s a mere drop in the bucket given the shear size of the U.S. fleet. 

“Retail is detail ... we’ve got a lot of work to do, one store at a time,” Foran told analysts during the Investor Meeting in October.

Kiosks could certainly help speed up the process helping busy store managers assess their own store feedback given that Foran is set on “fixing the shopping experience.” He said the store experience is everything from better customer service, cleaner stores, improved fresh departments, better in-stock numbers; while also bringing down overall inventory levels that have been rising at twice the rate of sales in recent quarters.

Seeking Alpha analyst Brian Gilmartin writes that one of the bigger issues over the last two years has been traffic erosion. The last time Wal-Mart U.S. posted positive quarterly traffic was in the fourth quarter of 2012. Following are traffic stats from Wal-Mart U.S. stores

WALMART STORE TRAFFIC
Oct. 2014: down 0.7%
July 2014: down 1.1%
April 2014: down 1.4%
Jan. 2014: down 1.7%
Oct. 2013: down 0.4%
July 2013: down 0.5%
April 2013: down 1.8%
Jan. 2013: down 0.1%

All eyes will be on Wal-Mart’s customer traffic report later this week (Feb. 19) as the retailer reports its fiscal fourth quarter results for 2015. Gilmartin said Wal-Mart is having to use price to offset low traffic, which is challenging the retailer’s “Every Day Low Price” mantra.

Wal-Mart CEO Doug McMillon recently said the company will return to the Every Day Low Price” (EDLP) model and reduce promotional pricing efforts. He has challenged suppliers to help the retailer return to EDLP.

Foran has won the favor of analysts as he’s made no excuses for the lackluster operations often reported in mainstream media. One of the first moves by Foran was boosting the importance of operational meetings. He said it goes back to the days of Sam Walton, with operational management meetings on Friday to make sure they are ready to maximize sales on Saturday and Sunday which will be reviewed on Monday.

“It reminds us each week about the urgency of every weekend. Sales have got to come up and traffic must also improve,” Foran said.

The food court at Pinnacle Promenade recently closed after several years of failing to keep food service tenants in place as dozens of eateries cropped up around the mall’s perimeter.

The 27,000 square-foot building has had more use hosting special events, Santa in front of the fireplace and headquarters for numerous 5k charity race events which as mall management mulling the future possibilities of this prime retail space.

“We are in negotiations with a retailer for about 20,000 square feet of the space. I would like to keep the other 7,000 square feet for a small event room and we want to retain the fireplace for Santa visits,” said David Faulkner, general manager for the Pinnacle Hills Promenade Mall.

The open-air shopping venue features several restaurants within its other buildings as well as snack options from cookies, ice cream, candy and pretzel shops.

Faulkner said the earliest a new retailer could open within the space is likely the fall given the needed renovation time. He said large charity events could possibly be moved outside in event tents, heated and cooled as necessary.

Pratt Place Inn and Barn in Fayetteville has been awarded the Four-Star Hotel designation by Forbes Travel Guide.

The Forbes accolade is just the most recent recognition. Pratt Place Inn has received the Four-Diamond ranking from AAA every year since it opened its doors in 2008. In addition, Martha Stewart Weddings named Pratt Place Barn as one of its 50 top spots in the US for a destination wedding.

“Being awarded a distinction like the prestigious Forbes Four-Star ranking is a wonderful thing indeed. It shows that an outside, independent, world-wide evaluator has recognized what a special place we have created here in Northwest Arkansas,” Pratt Place Owner Julian Archer said in a statement.

Pratt Place Inn is an independent, locally owned and operated, 7-room, boutique hotel situated on 140 private, wooded acres. It is situated just a mile from the University of Arkansas campus and the dynamic heart of Fayetteville on Dickson Street. The Inn has been furnished with curated antiques, artwork, and furnishings from travels around the world.

Additionally, the hotel affords easy access to the Walton Art Center, Crystal Bridges Museum of American Art, and other architectural and natural attractions of Northwest Arkansas.

Whether it’s buying value-size packages, shopping multiple retailers for lowest prices or avoiding major stock-up trips in general, consumers are holding fast to shopping habits they honed during the sluggish economic recovery in recent years.

Sue Viamari, a consumer analyst with IRI, said recent shopper research indicates that while the economy is improving, “consumers are not reverting to their free-spending ways.” She said whatever devices consumers began using to save money a few years ago, they are likely to keep because saving money feels good anytime. For consumer packaged goods companies and retailers alike, Viamari told The City Wire that this mindset is the new normal and she sees no big changes in shopper habits going forward.

VALUE DRIVEN
The research holds some interesting insights for consumer packaged goods (CPG) companies and the retailers they serve. For instance, 43% of shoppers surveyed said they will buy large packages to get the lowest price per serving. This suggests that CPG companies who can provide value size pricing are poised to benefit. 

Wal-Mart is already playing the value size game. The retailer recently began selling a 65-ounce bottle of ALL Stainlifters laundry detergent for $4.97 which replaced the 50-ounce bottle which sold for $4.87. Having this “new” size also renders this item not eligible for “Savings Catcher” matches with other retailers who don’t carry the new size.

Viamari said value-size packaging is a good way for CPG companies to differentiate their products against competitors. She expects to see more of this trend in the future across multiple retailers and product categories.

“There are opportunities here if retailers and CPGs understand the way their consumers are approaching price,” she said.

For instance some retailers might offer a lowest entry point price with some type of enlightened small package deal because value should not be restricted to bulk quantities. Those shoppers with strict, limited weekly budgets could be endeared to a brand that gave them a value in smaller packaging that fits within their budgets.

SIMPLE SOLUTIONS
One particular category under stress is cleaning supplies, Viamari said. IRI found that 41% of consumers look for multiple purpose cleaners to keep down the total number of cleaning items purchased.

“We know shoppers still look to save money in this category, more are using home-made remedies and all-purposed cleaners, others want more environmental friendly options,” Viamari said.

There are opportunities in this category to simplify things to ensure they have the one or two cleaning products that make it into shopper baskets. The days of Top Job, Spic and Span or Mr. Clean-type liquid cleaners have given way to specific scent formulas of kitchen degreasers and antibacterial options to a plethora of bathroom cleansers. And then there are windows and furniture to consider. Viamari said consumers want simple solutions and product suppliers who can best figure out how to deliver will reap the rewards.

NO STOCK-UP
Another interesting aspect noted in the IRI research was that 41% of shoppers avoid stocking up and instead shop weekly with a controlled list to stay on budget. This behavior shift could mean continued traffic problems for Walmart supercenters and wholesale clubs if the trend continues.

While IRI doesn’t not comment on specific retailers, Viamari said this behavior is vitally important to store channel performance. Viamari said fill-in trips have become the normal because fewer folks can afford to have their budgets disrupted.

“The bottom line here is that consumers are using well-controlled lists when they shop. This cuts down on impulse buying that most retailers try and induce,” Viamari said. “The opportunity here is for retailers and CPG companies to reach out earlier to the shopper when they are making that list. We know shoppers do make occasional changes to the list while they are in-store after seeing better deals,” she said.

Coupons, circulars and social media interaction are some of the ways retailers and CPG companies might ensure the consumers think of them when making their lists of items they will buy each week.

E-receipts like those given by Wal-Mart shoppers who use the “Savings Catcher” tool give that retailer an advantage in helping shoppers create future shopping lists. The e-receipts are available on the mobile devices of the users, but there is no indication the retailer is using that data to prompt future sales at this time. This is a lost opportunity to provide useful help on the front-end of a shopping trip.

However, for shoppers who visit Walmart.com or just about any other online retailer, there is no end to the stalking on social media or email suggestions on deals for the items searched whether it’s Benjamin Moore paint at Walmart.com or new bedroom linens from Overstock.com. 

MULTIPLE STOPS
The IRI research found 41% of consumers still shop at more than one retailer for grocery and household consumables. 

“Shoppers are confining their multiple shopping trips to those stores that consistently offer the values they expect. Out of necessary they began this during the recessionary years and now they operate on auto-pilot,” Viamari said.

She said the days of one-size-fits-all is long gone in retail as consumers made sacrifices that have turned into smart savings strategies they have no intention of abandoning no matter how hard some retailers work to win back lost business.

Consumers may not mind the multiple retailer approach despite the lure of “Savings Catcher” from Wal-Mart, which was recently restricted just six months after the wide rollout of the shopping tool.

Dollar General’s efforts to email $5 coupons off $15 or $20 spent is one way the small box retailer is wooing shoppers who might purchase dog food or diapers that is not restricted to branded coupons. DrugStore chains like CVS and Walgreens offer significant savings with their loyalty programs that can be used in conjunction with manufacturer coupons on everything from allergy meds to mascara.

Aldi continues to pack shoppers into their small no-frill stores who are searching the lowest prices on select and featured produce from 29-cent avocados to $1.99 asparagus. Aldi deals also include organic produce such as bananas for 44-cents a pound or grape tomatoes for $1.69 per carton.

These consistently low prices on limited selections of fresh produce are hurting Wal-Mart’s produce sales. Walmart U.S. CEO Greg Foran said recently he’s bothered by the fact that too many shoppers rush past the “fresh” produce at Wal-Mart and head straight for the packaged foods. That is one area of focus for Foran and his team this year.

Wal-Mart also said it will no longer match produce prices with competitors in its “Savings Catcher” program. 

Niche online shopping services from Dollar Savers Club to Diaper.com that offer subscriptions at a value and the convenience of home delivery are also eating away the dollars spent for these goods during traditional shopping trips.

Viamari said if this trend continues retailers and suppliers will have to rethink how much shelf space they devote to those products in traditional retail stores. She said retailers have an opportunity to work with suppliers to strategically offer the right value sizes and flavors their specific customer base expects, keeping in mind that price matters.

Fayetteville-based BlueInGreen has a new president as John Kucharik joined the company to assume that role, according to CEO Clete Brewer.

Kucharik has domestic and international business experience within the water industry.  He has been President/CEO of private and public companies, and is driven by the challenge of building high performance organizations, according to the release.

He joins BlueInGreen in "growth mode," as the company has tripled 2014 revenues over 2013, has a backlog of purchase orders and four market-ready products, Brewer said.

Mercy Fort Smith has announced it is the only certified cancer Survivorship Training and Rehab (STAR) program in Arkansas.

Through the Mercy Oncology Rehabilitation certified Survivorship Training and Rehab (STAR) Program, patients are cared for by rehabilitation specialists who provide methods to help them achieve the highest level of healing and function.

Mercy’s specialists include: medical oncologists, a patient navigator, massage therapists, pastoral services, psychiatrists, physical, occupational and speech therapists, personal trainers, dietitians, and general surgeons.

The specialists work to address balance, walking, strength, fatigue, pain, cognitive and emotional function, sleep changes, headaches, and the inability to perform daily living activities.

Dr. Julie Silver, associate professor at Harvard Medical School and a cancer survivor, and her team of clinicians developed the STAR Program. Following her treatment of cancer, she realized there was a gap in helping survivors of numerous diseases to heal after treatment.

An employee of a contract cleaning company died while sanitizing equipment at a Tyson Foods poultry plant in Shelbyville, Tenn., on Tuesday (Feb. 17). James Currier, 38, of Shelbyville fell into the machinery he was cleaning for contract service provider QSI.

Tyson Foods spokesman Gary Michelson said the accident happened early Tuesday morning when the plant was not in operation, but rather being sanitized. The plant reopened Wednesday (Feb.. 18).

The Occupational Safety and Health Administration has been notified of the accident. Tyson Foods and QSI expressed their deepest sympathy for the family and co-workers of the deceased.

The new management team at Walmart U.S. has no where to go but up, according to a recent survey by the American Customer Satisfaction Index released Wednesday (Feb. 18). While consumers’ overall satisfaction with retail stores fell 1.4% in 2014, Wal-Mart’s score of 68 was down 4.2% from the prior year, tying the retail giant’s lowest score which was first hit in 2007. The 68 was also the lowest ranking in the discount and department store categories.

Walmart U.S. CEO Greg Foran has vowed to “fix the shopper experience” and he’s restructured his entire management team noting that it will take some time given there are more than 5,000 stores and he’s focused on every one of them doing a better a job.

Nordstrom held on the top spot with a score of 86 out of 100, rising 3.6% from the prior year’s survey. Little-Rock-based Dillard’s took second place with a score of 81 which was the same ranking consumers gave it in 2013.

Target also made a nice comeback in 2014 with a score of 80, up 3.9% from the prior year following the security breach that impacted millions of shoppers.

Other retailers losing favor with consumers were Kohl’s, whose score of 80, slid 1.2% from the prior year. Sears also shed points scoring a 73, down from 77 last year.

Customer Satisfaction Rating
Nordstrom 86
Dillard’s 81
Kohl’s 80
Target 80
Dollar Tree 79
Macy’s 79
J.C. Penney 77
Dollar General 75
Family Dollar 75
Sears 73
Wal-Mart 68

The next U.S. presidential election may come and go before consumers no longer have to choose between buying a few steaks or making a car payment.

Multiple metrics are at play most of the time help to determine how much consumers will pay for their favorite steak or their next hamburger. It could be investors on Wall Street, corn prices paid by farmers and feeders, demand for exports to Korea and China or higher prices for the limited supply of cattle.

The main catalyst pushing beef prices to record highs last year were low cattle numbers as the national herd hit a 63-year low. However, the shrinking herd trend appeared to reverse. Overall cattle numbers made positive gains rising 1% last year, according to the U.S. Department of Agriculture’s Jan. 1 cattle inventory report.

The report shows the U.S. herd rose to 89.9 million head. Almost all categories of cattle, including heifers, steers, bulls and calves weighing less than 500 pounds, increased. While the overall number is an increase from the prior year cattle census of 88.5 million head, it is still significantly lower than the 25-year peak of more than 103 million head in 1996.

Total cattle and calves in Arkansas decreased by 1% to about 1.64 million head, with several other benchmark numbers remaining roughly the same. While the number of bulls remained unchanged at 55,000 head and the number of calves weighing less than 500 pounds increased from 360,000 to 380,000, the number of adult steers decreased by 15,000 head to 130,000, according to Tom Troxel, head of Animal Science at the University of Arkansas System Division of Agriculture.

While cattle numbers are making a slow improvement, high live cattle prices make it harder for farmers to retain heifers which is necessary in the herd rebuilding process. Troxel said calving rates across the country last year were strong. He expects that will also be the case this year.

EXPORT KINK
Another kink that has recently hit the beef supply chain are delays at West Coast ports related to difficult labor talks between longshoremen and port operators. The American Meat Institute estimates that the port issue costs beef and pork industries $170 million per month.

Higher valued beef cuts that might normally be shipped to South Korea are now being ground up and used domestically, which is helping to bring down beef prices somewhat. This price dip is believed to be temporary for as long as the port issues lag.

Richard Kinder, a butcher and meat manager at Allen’s Foods in Bella Vista, has spent nearly 40 years in the meat business and grocery business. He said wholesale beef prices have dipped a few penny’s per pound from the West Coast port disruption. He said all of last year retailer’s passed along the higher wholesale prices to consumers to the point where less beef was consumed. 

CHICKEN SALES UP
Tyson Foods CEO Donnie Smith said recently that consumers are trading down from hamburger and fresh beef to fresh chicken. He predicted it would happen two years ago when beef prices started rising, but Smith said it just began occurring last fall. This prompted Tyson to add fresh chicken lines in three facilities to meet added demand. 

Kinder said he also has witnessed the chicken push.

“I know my fresh chicken sales are up. I can’t say beef sales are down because we sell a lot of beef. My beef sales are flat to a year ago, but chicken is up,” Kinder said.

He said because Allen’s allow customers to purchase single items of their own choosing like bacon wrapped filets, they still sell a lot of steaks between the $4.50 and $6 range.

“Pork has stayed reasonably priced but it seems shoppers will only buy pork when it’s on sale. At least at Allen’s they are more likely to reach for the steaks or roasts than pork chops and loins,” Kinder said.

Kinder does not expect major changes in retail beef prices this year but he said that could change quickly if there’s a drought this summer or if exports began to flow more freely.

Troxel said the slight increase in cattle supply across the country may take a while to reduce beef prices.

“I don’t anticipate any decline in retail price of meat until 2016,” he said.

Harry Robinson Buick GMC has received a 2015 DealerRater Dealer of the Year award, a 2015 DealerRater Consumer Satisfaction Award and a Women’s Choice Award from WomenCertified.

The Dealer of the Year awards are based on reviews by new- and used-car shoppers and those who took their vehicles into dealerships for service. Reviewers evaluated Harry Robinson Buick GMC on its customer service, quality of work, friendliness, pricing and overall experience.

“It’s an honor to be among the top rated dealers in the country & to again be named Dealer of Year for Arkansas for Buick & GMC,” Renee Durham, general manager, Harry Robinson Buick GMC, said in a statement.

DealerRater attracts more than 12 million consumers every year who read more than 1.7 million dealer reviews.

The Consumer Satisfaction Award recognizes auto dealerships that deliver outstanding customer service as rated by online consumer reviews. Consumer Satisfaction Awards are given annually to the top 10% of U.S. new-car dealers based on their PowerScore, as well as all U.S. used-car and Canadian (new and used) car dealerships that meet DealerRater’s Dealer of the Year criteria.

The Women’s Choice Award was based on excellent recommendations from female customers in a customer satisfaction survey conducted by WomenCertified using the dealership’s customer database. Harry Robinson Buick GMC received excellent survey scores in several areas including the overall sales experience, with 9 out of 10 women surveyed saying they would recommend Harry Robinson Buick GMC to their family and friends.

According to WomenCertified, women buy more than half of the new vehicles in the U.S. and influence up to 80% of all car purchases. Also, 65% of service customers at dealerships are women, and women spend more than $200 billion per year on new vehicles and mechanical servicing of vehicles.

“On behalf of everyone here at Harry Robinson Buick GMC, it is such an honor again to be a Women’s Choice Award recipient, and to be the most trusted dealership for women in Arkansas. We are so thankful to our customers for their highest recommendation. Thank you to WomenCertified, our staff & our amazing customers who made this award possible,” Durham said in a statement.

Community Health Systems plans to invest $10 million in an emergency room expansion at Summit Medical Center in Van Buren, and is also changing the name of Summit to Sparks Medical Center – Van Buren.

The expanded emergency room will have 12 beds and will be located near the front of the existing hospital in Van Buren. A groundbreaking is expected later this year.

“It will be an exciting year for our hospital,” Anthony Brooks, interim administrator and chief financial officer for Sparks Medical Center – Van Buren, said in a statement announcing the name change. “We are looking forward to growing and expanding with Sparks Regional Medical Center and continuing a tradition of being there for Crawford County residents when they need us most.”

New signage will complete the hospital’s rebranding in the second quarter of this year. This name change, according to Sparks, is a strategic decision to spotlight Sparks Medical Center – Van Buren as an integral part of Sparks Health System.

“Our plans for 2015 include improving physician recruitment and patient confidence, as well as utilizing the hospital’s geographic location for patient convenience,” Brooks said.

Sparks Medical Center – Van Buren is a fully accredited, 103-bed acute care hospital providing emergency services, outpatient testing, inpatient surgical services, same day surgery, rehabilitation services, and respiratory therapy.

Sparks and Summit were part of the early 2014 sale of Health Management Associates to Franklin, Tenn.-based Community Health Systems, a company whose portfolio of hospitals was nearly double the size of HMA's portfolio. Locally, CHS owns four Northwest Arkansas facilities — Northwest Medical Center-Bentonville, Northwest Medical Center-Springdale, Siloam Springs Regional Hospital and Willow Creek Women's Hospital in Johnson.

“I think the community response has been very positive,” said Jackie Krutsch, executive director of the Van Buren Chamber of Commerce.

Krutsch said discussions about rebranding Summit began when then Naples, Fla.-based Health Management Associates bought Sparks Health System in late 2009. At the time, HMA had a lease agreement with Crawford County to manage Summit Medical Center.

“The conversation (with HMA) was, what a great opportunity for Summit because of the opportunity for shared resources ... and expanded services to Summit,” Krutsch explained.

However, the process and the cost of rebranding, along with the unplanned acquisition of HMA by Community Health Systems served to delay the decision.

“I am really thrilled that they have now pulled the trigger. It gives us a brand as well as a location,” Krutsch said of changing the name from Summit to Sparks Medical Center – Van Buren.

Strong car and truck sales along with more on-time payments at America’s Car-Mart helped to push third quarter net profits to $7.461 million, up 407.5% from the lackluster $1.47 million reported a year ago. The third quarter gross revenue rose to $131.5 million, up 7.3% from the $122.58 million reported in the same period last year.

Wall Street has been bullish on earnings and revenue expectations with consensus at 77 cents per share net earnings. Car-Mart blew past that prediction posting 82 cents per diluted share, and also beating on revenue expectations. 

The Bentonville-based buy here, pay here used car dealer reported after the markets closed on Wednesday (Feb. 18) for the three months ending Jan. 31. However, investors sensed the favorable report because the stock price (NASDAQ: CRMT) rallied 2.94% prior to closing to reach $52.82. In aftermarket trades the shares gained another 2% to finish at $53.88.

"Our plan of focusing on solid top line growth is working out very well and we are excited about our prospects as we look forward. Retail units sold was up 7.1% and same store revenue was up 2.8% when compared to the third quarter of fiscal 2014. Productivity as reflected in the average retail units sold per month per store increased from 27.7 to 28.0 for the quarter. We feel very comfortable with our new store opening plans and with our ability to grow profitably into the future," CEO Hank Henderson, said in the earnings report.

The company has 138 dealership in 10 states, which is eight more than this time last year. 

“We are looking to pick up the pace of new lot openings a little in 2016," Henderson said. "We are pleased with the top line growth, and we remain convinced that we are moving the company in the right direction."

Closing the sale is just half of the battle for Car-Mart who finances 100% of the deals made. In recent quarters the company has struggled from hyper competition in the subprime auto financing sector.

"While the competitive environment remains challenging, our sense is that financing offerings in our markets may be a little more rational now when compared to say 12 months ago. We are hopeful that we can get back to a point where customers in the markets we serve are presented competitive financing options that are in their best long-term interest, structured for their ultimate success,” said Jeff Williams, chief financial officer. 

In the recent quarter Car-Mart saw positive trends with collections, average down payments and accounts past due 30 days.

“While net charge-offs are higher than historical levels and much higher than we would like to see, we are encouraged by the decrease for the quarter,” Williams said.

The company reported net charge-offs at 6.5% of sales, which was down slightly from 6.7% of sales a year ago. The 30-days past due accounts were 5.2%, down fro 5.8% and downpayment amounts rose to 5% up from 4%. 

Car-Mart sold 11,495 cars in the quarter, 7.1% more than a year ago. The average sales price rose fractionally to $9,764. The company has finance receivables of $425.07 million at the end of the quarter, a gain of 6.1% year-over-year.

Bill Armstrong, analyst with C.L. King, pegs Car-Mart shares a “buy” position noting that management appears to be more effectively adapting to the still-difficult competitive environment as evidenced by the company’s improved recent performance. In addition, improving employment trends and the likelihood of lower used car prices should stoke demand and unit volume growth going forward.

“We think credit availability for subprime auto buyers may begin tightening up in the months ahead as industry-wide loss rates continue to increase. ... This would be a clear positive for Car-Mart as it would represent a reduction in competitive pressure and would drive more traffic to its stores where it can provide it’s own financing. We remind investors that Car-Mart posted strong earnings increases during the credit crisis,” Armstrong noted.

Through three quarters of business in fiscal 2015 Car-Mart posted total revenue growth of 7.1% to $392.7 million. Revenue is comprised of gross sales and interest income for the finance receivables. Interest income was $43.41 million in the three quarters compared to $41.249 million in the same period of the previous fiscal year.

Net Income is up 50% through three quarters of this year to $22.21 million, well ahead of the $14.786 million a year ago. Net earning per share year-to-date are $2.45, versus $1.56 a year ago.

New restaurants in downtown Bentonville, a new murals festival in downtown Fort Smith and other tourism products that “creates a buzz” are what will help Arkansas’ tourism industry in 2015 build upon an impressive 2014, said Richard Davies, executive director of the Arkansas Department of Parks and Tourism.

2014 was a solid year for the travel and tourism sector in most Arkansas cities and for the state. Collections of Arkansas’ 2% tourism tax needed only 11 of the 12 months of 2014 to set a new annual record. Collections of Arkansas’ 2% tourism tax during the first 11 months of 2014 totaled $12.866 million, up 7.51% compared to the $11.967 million during the same period of 2013. The 2% tourism tax set a record in 2013 with $12.716 million, and the 2014 numbers are on track to reach more than $13.5 million in 2014.

Tourism tax collections in Northwest Arkansas’ four largest cities was up a combined 8.2% for the first 10 months of 2014. Hospitality tax collections in Fort Smith and Van Buren were up 4.2% and 1.4%, respectively. Conway saw similar collections increase 4.35% in 2014. Hospitality tax revenue was up 2.3% and 2.1% in the tourism towns of Eureka Springs and Hot Springs, respectively. Collections were up 5.26% in Little Rock during 2014.

Industry jobs are also increasing. Arkansas’ tourism sector (leisure & hospitality) employed 113,900 during December, up from 110,400 during November, and above the 106,900 during December 2013. The December number, if it stands, marks a new record for employment in the sector. Employment in the sector is up 23% in the past 10 years.

‘A NEW RIDE’
“I think we will continue to grow at the same pace, which in my view is pretty good,” Davies told The City Wire. “It’s actually harder to keep that growth up than to accomplish it just once every few years. ... I will be totally surprised if 2015 falls below 2014 unless we have some freak of nature with the weather or some national emergency. I can see no other reason for decline.”

Davies said a mild 2014 summer helped the state’s tourism facilities and events. Keeping the growth on an upward pace will require more things to do and proper marketing of what there is to do in Arkansas.

“I think the factors in our growth included more ‘product’ either on the ground or in serious discussion (Marshal’s museum in Fort Smith, or instance) that creates a buzz, along with some targeted marketing by cities, regions and states at user groups like motorcyclists, bicyclists, adventure sports, and arts/culture/history,” Davies said. “We’re going to have to keep on top of trends, especially in technology, user preferences, and needed tourism offerings. Research, as always, is terribly important, as is continuing to add ‘a new ride’ as Joe David (Joe David Rice, tourism director for the Department of Parks and Tourism) is fond of saying. We can’t become stale.”

CONTINUING TO EVOLVE
Kalene Griffith, president and CEO of the Bentonville Convention & Visitors Bureau, agrees that new “product” is the key to growth. In an e-mail interview, Griffith provided a long list of new developments to help Northwest Arkansas tourism in 2015. The list included: opening of the Amazeum museum; the “Van Gogh to Rothko” exhibit at Crystal Bridges Museum of American Art in Bentonville; opening of at least eight new restaurants in downtown Bentonville; opening of Sheraton Four Points (103 rooms) hotel in the Spring; and continued growth of the Market and Arts Districts in downtown Bentonville.

“We need to continue to evolve as a leisure destination. People are looking for value, unique and authentic experiences. We see Bentonville and Northwest Arkansas as all three,” Griffith said. “Most importantly, is for us to sustain the excitement for our area as a destination for all ages. Our job is to put our cities at the top of mind with travelers. We have many unique and authentic experiences, currently and coming in the future.”

Officials in the Fort Smith area are also counting on new events to maintain the pace in 2015. The inaugural Steel Horse Rally is expected to bring thousands of motorcyclists and enthusiasts to downtown Fort Smith on May 1-2.

A “Festival of Murals” project for downtown Fort Smith was unveiled Feb. 17. The festival is set for Sept. 6-13, with several events – to include artist reception at the Fort Smith Regional Art Museum, emerging artists show, spoken word event, wine tasting, skateboard park, and sidewalk art collaborations between artists and area school students – to coincide with large murals painted or applied to between five and 10 downtown buildings.

For long-term industry growth, Davies said workforce training is essential.

“Another needed change is the number of hospitality training programs and degrees being offered in Arkansas that we didn’t use to have. We need good, smart young folks to replace us old worn out ones,” Davies said.

It may have not been a stellar financial year for Wal-Mart Stores, but the global retailer ended its fiscal year with income and revenue numbers heading in the right direction for CEO Doug McMillon’s first annual report.

Total revenue for the fiscal year ended Jan. 31 was $485.651 billion, up 2% compared to the previous year, the company reported Thursday (Feb. 19) morning. The total was just below analysts’ consensus estimate of $486.62 billion. Fiscal year net income was $16.363 billion, up 2.1% compared to the previous year.

The topline earnings per share for the year was $5.07, which beat the consensus estimate of $4.99 per share. However, the per share earnings was shaved by 8 cents for wage and hour litigation expenses and the cost of closing 30 stores in Japan during the fourth quarter.

Comparable store sales, a closely watched metric with Wal-Mart, also improved. Comp sales in all U.S. stores – including Sam’s Club – were up 0.5% in the fiscal year, better than the 0.4% decline in the previous fiscal year.

"Like many other global companies, we faced significant headwinds from currency exchange rate fluctuations, so I'm pleased that we delivered fiscal year revenue of $486 billion. But, we're not satisfied,” McMillon said in the earnings report.

Currency exchange rates reduced annual revenue by $5.3 billion.

FOURTH QUARTER GAINS
For the fourth fiscal quarter, which includes the holiday shopping season, Wal-Mart posted total revenue of $131.565 billion, up 1.4% over the same quarter in the previous fiscal year. The revenue missed the consensus estimate of $132.36 billion, but the topline earnings per share of $1.61 was better than the estimate of $1.54. However, the fourth quarter per share earnings were reduced by 8 cents for the reasons noted above.

The fourth quarter also saw improvements in comp sales. Walmart U.S. reported comp sales up 1.5% in the quarter, better than the 0.4% decline in the year-ago period. Sam’s Club comp sales were up 2% compared to a decline of 0.1% in the year-ago period.

"Our fourth quarter was the first positive traffic comp we've had since the third quarter of fiscal year 2013," said Greg Foran, Walmart U.S. president and CEO, said in the statement. "Walmart U.S. had increased traffic during the six-week holiday season, with strong sales in seasonal, toys, home and apparel. We completed almost 1 billion total transactions during the holiday season, including our largest online day ever on Cyber Monday. We are also pleased to deliver positive comp sales for the full year."

E-commerce sales were $12.2 billion, up 22% in the fiscal year.

Operating income by segment shows continuing problems with Walmart U.S. – Wal-Mart’s largest division. Operating income at Walmart U.S. for the fiscal year was $21.336 billion, down 2.1% compared to the previous fiscal year. Operating income in the International segment was $6.171 billion, up 19.8% for the year. Sam’s Club operating income was $1.976 billion, up 7.2% for the year.

"We have work to do to grow the business. We know what customers want from a shopping experience, and we're investing strategically to exceed their expectations and better position Walmart for the future," said McMillon. "Our first priority is to run great stores and clubs. We will continue to integrate our physical locations with a great e-commerce and mobile commerce business.”

PAY AND BENEFIT BOOST
The company also announced a pay and training plan that will raise pay for about 500,000 full- and part-time employees in the first half of the fiscal year. The goal is to have all employees make at least $1.75 per hour above the federal minimum wage by April. By Feb. 1, 2016, the goal will be for all employees to make at least $10 per hour. The pay adjustment in this fiscal year will cost the company an estimated $1 billion.

Wal-Mart and the Walmart Foundation will also spend $100 million during the next five years to “increase the mobility for entry level workers” in the retail and service industries through training programs.

“We're strengthening investments in our people to engage and inspire them to deliver superior customer experiences. We will earn the trust of all Walmart stakeholders by operating great retail businesses, ensuring world-class compliance, and doing good in the world through social and environmental programs in our communities,” McMillon said in the statement.

But the company used the earnings report to lower financial expectations for the new fiscal year. First, currency exchange issues could shave $10 billion from the topline in the fiscal year. The company also lowered its fiscal year earnings forecast to between $4.70 and $5.05 per share.

“Given the potential impact of currency headwinds, we expect that our fiscal year 2016 sales growth will be between 1 and 2 percent, versus the 2 to 4 percent we provided at our October investor conference," Charles Holley, Wal-Mart Stores chief financial officer said in the report.

Wal-Mart shares (NYSE: WMT) were trading lower in pre-market action. The share price closed at $86.29 on Wednesday. During the past 52 weeks the share price has ranged from a $90.97 high to a $72.61 low.

OTHER EARNINGS REPORT DETAILS
Following are other details from the earnings report and related conference call.
• Wal-Mart said Federal Corruption Practices Act compliance-related costs totaled $173 million for the year. These costs were comprised of $121 million for the ongoing inquiries and investigations, and $52 million for our global compliance program and organizational enhancements. Last year, total FCPA and compliance-related costs were $282 million. This investigation into alleged FCPA violations is now its third year. 

• Wal-Mart increased its dividend for 2016 from $1.92 to 1.96 which is paid quarterly. This marks the 42nd year the company has increased its shareholder dividend. For the full year, the company returned $7.2 billion to shareholders through dividends and share repurchases. Wal-Mart ended the year with free cash flow of $16.4 billion, compared to $10.1 billion last year.

• Fuel sales had no impact on Walmart U.S. same-store sales in the quarter. However, executives said overall lower fuel prices were responsible for more trips and a slight average uptick per ticket.

• Foran said the retailer had a good holiday season.

“Walmart U.S. had increased traffic during the six-week holiday season, with strong sales in seasonal, toys, home and apparel. We completed almost 1 billion total transactions during the holiday season, including our largest online day ever on Cyber Monday,” Foran said.

• Foran said Neighborhood Market stores delivered a 7.7% same-store comp during the quarter. This smaller format is resonating with customers prompting Walmart to open 233 of them last year, with many of those in the recent quarter.

• Wal-Mart ranked at the bottom of list for customer satisfaction according to recent survey by the American Customer Service Satisfaction Index. McMillon said Thursday that such news “breaks my heart” as he doesn’t want anyone to have a bad customer experience at Wal-Mart. He acknowledged there are lots of stores and more work required to improve customer service. To that point, Foran said adding staff back to stores in the Checkout Promise program during the holidays did increase costs, but it was the right decision for the customer.

• Inventory management is another area Foran wants to improve. He said inventory grew by 3.9% in the quarter. He attributed much of that to the 178 new store openings in the recent quarter. Foran said comp store inventory improved in the quarter because of the strong holiday sell-through and better aligned seasonal markdown in apparel.

“Inventory management is a key element to customer experience, and while we have room for improvement, we’re also making progress to better manage working capital,” Foran said.

• Wal-Mart’s fiscal 2016 year began on Feb. 1 and the retailer said it plans to add between 15 million and 16 million more retail square feet across the U.S. this year.

• Foran said there is some concern over the imported merchandise flows related to the
upcoming spring and Easter seasons, due to ongoing port congestion. 

“We’ll continue to take the appropriate steps, using our diversified supply chain network, to reduce the impact for our customers,” he said.

Less than a year after promising to address worker pay, Wal-Mart Stores CEO Doug McMillon has made what he calls a bold move to invest $1 billion in corporate revenue to raise the pay of 500,000 of the lowest paid Wal-Mart employees.

McMillon, who began with Wal-Mart as a hourly employee, promised to address the issue of worker pay and job advancement last year when adding staff to stores during the holiday shopping rush hours. In an email to workers on Feb. 19, McMillon reiterated that “people make the difference at Wal-Mart,” which is why he plans to raise the starting pay to $9 an hour or higher by April and up to $10 an hour in February 2016. (See the McMillon video at the end of this report.)

It’s just one piece of the puzzle being addressed, according to Walmart U.S. CEO Greg Foran, as the retailer seeks to improve customer service among its 4,500 U.S. stores. Foran also began his retail career as a hourly employee, but not with Wal-Mart.

Aside from raising the pay for entry level jobs, 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. As the nation’s largest private employer Wall Street analysts applaud the retailer for this action.

WORKER RETENTION
”It’s long overdue at Wal-Mart,” according to CNBC contributor Jim Kramer. “It’s good to see the company trying and address some of the problems that have drug on for too long with their workforce, knowing that the investment in the short term will nip at earnings.”

He said retraining employees who stay on the job an average of six to nine months is a budget buster and Wal-Mart’s effort to pay a higher wage might in fact help them attract a workforce that will stay on the job long enough to improve customer service.

“We know we can’t raise customer service levels unless we ensure we are first taking care of our associates,” Foran said during a media call following Thursday’s (Feb. 19) announcement. 

For a company that proclaims the “Customer is alway No. 1”, an investment in customer service is a no-brainer. But Foran put it in perspective saying, “We also have to treat our associates as good as we treat our customers. We have to give associates a clear understanding of what it takes to get promoted in our business.” 

Allen Ellstrand, an expert in corporate management teams at the University of Arkansas, said better pay at the bottom and expanded opportunities for department managers will mean the company can attract and retain better talent in the future – talent that is key to improving store operations and ultimately the company’s earnings over time.

“On a couple of levels this wage announcement is a good move. From a public relations perspective it’s a positive step forward. From a practical level, the employer turnover has been a big problem when workers are tempted to leave for better wages elsewhere,” said Allen Ellstrand, an expert in corporate management teams at the University of Arkansas. 

Paul Trussell, an analyst Deutsche Bank, said the investment in wages is good news. 

“Part of Wal-Mart’s problems have been out-of-stock inventory, long check-out lines and disgruntled workers. The new CEOs are taking steps to correct some of these past evils,” Trussell said.

‘POWER OF THE MARKETPLACE'
The National Retail Federal applauded Wal-Mart’s decision to increase bottom wages.

“Today’s announcement by Walmart regarding associate wages is just another example of the power of the marketplace. Like many other retailers, Walmart made its decision based upon what is best for their employees, their customers, their shareholders and the communities in which they operate,” 

McMillon said Wal-Mart’s decision to raise wages has been in the works for the past year as he and Foran have been out in stores and witnessing areas that needed improvement relative to understaffing concerns.

Critics said perhaps Wal-Mart IS moving ahead of what is a national trend toward a higher minimum wage as four states, including Arkansas voted to raise their minimum wages in November.

The move to boost worker pay also received political attention.

“I applaud Wal-Mart for its plan to increase wages for the company’s U.S. based full and part-time employees,” U.S. Sen. John Boozman, R-Ark., said in a statement. “This sets the example for other American companies that investing in their workforces is important to their bottom line. Business-based initiatives like this are best set by companies and states, not forced on by federal government policies.”

Arkansas Gov. Asa Hutchinson issued this statement: “The Walmart story has always been about the American Dream. Sam Walton embodied that dream, building the world’s largest retailer through hard work, vision and exceeding the expectations of his customers. He would be proud of the forward-thinking plan announced by Walmart today to raise the pay of all current associates, provide those who want it the training and clear path to career success and work with associates on schedules that best fit their busy lives. This is especially good news for Arkansas and its 51,000 Walmart associates.

“Walmart understands that a company is only as strong as its employees. And its visionary new plan makes the company an even stronger, better place to work and advance in a career. I often talk about individuals having the opportunity to climb the economic ladder. Most of us hunger for that chance to earn our success. Walmart provides it.”

CRITICS SAY PLAN ‘FALLS SHORT’
Emily Wells, an OUR Walmart leader from Merritt Island, Fla., said the move to raise wages would not have happened without the work by thousands of supporters to change the country's largest employer. While she’s glad to see the move, it falls short of  the $15 minimum wage and consistent hours OUR Walmart continues to seek. 

Wells is a soon-to-be mom who earns $9.50 and hour after three years at Wal-Mart. She was most excited about the promise of flexible scheduling as she only gets about 26 hours a week.

"But, without a guarantee of getting regular hours, this announcement still falls short of what American workers need to support our families. With $16 billion in profits and $150 billion in wealth for the owners, Walmart can afford to provide the good jobs that Americans need – and that means $15 an hour, full-time, consistent hours and respect for our hard work,” Wells said.

McMillon said the starting wage is just a piece of the puzzle being worked. He said this investment will mean the average full-time hourly wage at Walmart will be $13, up from $12.85. The average part-time hourly wage will be $10, increasing from $9.48. The retailer said the part-time to full-time worker ratio is about 50:50. Full-time workers log a minimum of 34 hours a week.

He also said there is the benefits package to consider, which includes a “my share” performance bonus, 401(k) benefits and a variety of health care options valued at $22 per day. He also said the one-day wait period for sick pay is being lifted for full-time employees.

A side note to the employment news was an update on Wal-Mart’s efforts to employ 100,000 veterans by 2018. 

“We set this goal just under two years ago, and we’re proud to say that we’ve already hired almost 80,000 veterans through this program. Furthermore, over 6,000 have been promoted to roles of greater responsibility since joining the Walmart team,” Foran said.

Primary rules of thumb for any partnership is to know your partner and avoid unequally yoked arrangements. That was case for Rogers-based Redman & Associates founder Mel Redman who has amended his suit against Chinese manufacturing partner Sales Chief Enterprises claiming at least $40 million lost in his efforts to onshore the production of ride-on toys as part of Wal-Mart’s onshoring jobs initiative first announced in 2012.

Redman amended his lawsuit and damage claims in a federal court filing Feb. 15, on the heels of a motion to dismiss request filed recently by Sales Chief. Redman noted in the amended complaint that Wal-Mart Stores pulled its purchase commitment on Sept. 15, a deal that would have been worth approximately $70 million over a three year period.

Wal-Mart officials announced on Jan. 15, 2013, a pledge to purchase in the next 10 years an additional $50 billion in U.S.-made goods. Company officials have said they hope to boost U.S. manufacturing – often referred to as “onshoring” – by purchasing more sporting goods, apparel basics, storage products, paper products, textiles, furniture and higher-end appliances.

On Nov. 22, 2013, Wal-Mart committed to purchase a minimum of 520,000 ride-on toy units on an annualized basis in 2014, 2015 and 2016. This was the assurance Redman said he needed to invest $6 million in a new manufacturing and distribution facility in Rogers with plans to onshore the production from China over the three-year period.

The deal never came to fruition. Redman claims in the filing that Sales Chief changed terms of the financial arrangements that previously allowed for a 60-day grace period for payment once product was received by Redman and delivered to the retailer. The filing claims that Sales Chief changed the shipping terms in May 2014 with no prior warning as the product coming from China had been assigned to someone other than Redman. The suit claims Ellen Liu, principal for Sales Chief, knew this could jeopardize delivery to Wal-Mart. At the same time Sales Chief revoked its 60-day trade credit terms and required immediate full payment of all inventory on the water and in port.

Product began to stack up for weeks on the West Coast at Redman’s expense. Liu traveled to Bentonville in July 2014 and toured the Redman facility asking if there was a way to create “loopholes in the Made in the USA program, for example proposing manufacturing the 6-volt toys as substantially assembled kits for nominal assembly in the U.S.,” the filing states.

Redman’s suit states that the Wal-Mart commitment required actual and bona fide manufacturing of the products in the United States, which Liu did not like. 

Sales Chief notes in email documents included in its motion to dismiss that it warned Mel Redman in May 2014 that it was going to change the payment terms unless Redman cleared up the unpaid balance of inventory shipped.

Redman said it paid Sales Chief $60 million for product it ordered between March 2012 and April 2014. The Redman suit claims it was not uncommon for it to have large unpaid balances  with Sales Chief given the 60-day credit terms allowed. When Liu visited in July, Redman’s suit said the company asked that the 60-day credit terms be restored, noting that Wal-Mart also asked Sales Chief to restore the typical 60-day credit terms customary for trade with China.
 
FALLOUT
By last fall products were stacking up on the West Coast and Wal-Mart agreed to pay the two parties separately to get the product to its shelves. The retailer than cancelled the purchase agreement with Redman.

Redman is no longer doing business with Sales Chief and the Redman ride-on toys are no longer manufactured for sale at Wal-Mart. Redman is seeking $20 million in compensatory damages and $20 million in punitive damages along with attorney’s fees and court costs. Redman said he working to repay the debt he owes from this situation and is looking forward to his day in court.

Wal-Mart provided the following response to The City Wire about the issue between Redman and Sales Chief: “The circumstance in this situation appear to be specific to this manufacturer and its 3rd party supplier and it’s best for any comments to come from them. I will tell you that we are excited about the progress being made on our $250 billion commitment to support U.S. manufacturing and U.S. jobs. We continue to see growth in the number and type of suppliers who are bringing us products that support our commitment.”

Wal-Mart said it was not aware of any other similar problems with other onshoring 
efforts.

TRUE PARTNERS
Redman Industries and Kent Bicycles were two of the early faces of the Wal-Mart’s onshoring jobs program. 

Arnold Kamler, president and CEO of Kent Bicycles, told The City Wire that onshoring production has been a focus of his company for about four years because operating conditions in China shifted. He said having a good partner can make all the difference.

Kamler said unlike pure importers, Kent’s manufacturing plant in China is also a 49% owner in the company since 2010 when his sister sold her interest.

“I negotiated a good deal with a major bike supplier in China who is not only a manufacturing partner but also a financial partner. We will import three million bicycles this year, so the U.S. manufacturing is still a small percentage of the total business,” Kamler said.

Balfour Beatty Communities and Block Multifamily Group have acquired the Ranch at Pinnacle Point, a 392-unit multifamily community built in 2007 in northwest Rogers. In this joint venture, Balfour Beatty will deliver asset management services and Block will perform all property management services.

“The Rogers, Ark,, rental market is proving to be quite strong as a result of regional job and population growth, making this acquisition a perfect fit with our multifamily strategy," said Chris Williams, president of Balfour Beatty Communities. "We are quite pleased to enter this new geographic market for our business and partner with Block Multifamily to deliver a quality, high-performing residential community."

Ranch at Pinnacle Point consists of one, two and three bedroom units that range from 650 to 1350 square feet. The apartment homes offer walk-in closets, washer/dryer connections, fireplaces, a balcony, deck or patio, and garage parking. Community amenities include a pool, fitness center, billiards room, movie theatre, business center, clubhouse, dog park, and a sand volleyball court.

“The joint relationship between Block Multifamily Group and Balfour Beatty Communities provides our investors with a powerhouse management team,” said Bill Larson, president of BMG.

The Fort Chaffee Redevelopment Authority (FCRA) on Thursday (Feb. 19) approved the sale of more than 50 acres that could within the next few years be the location of a subdivision featuring expensive homes just north of where ArcBest plans to build its new corporate headquarters.

The deal, valued at $778,400, or about $14,000 an acre, is between the FCRA and Provenance Properties. Rod Coleman, former president of ERC Properties, is the agent for Provenance, which would be an ERC Companies property. The deal is also contingent upon the FCRA providing water and sewer access and the completion of a road connecting the property to Wells Lake Road.

A deadline for closing the transaction was set for Nov. 1, 2015, which provides time for the road to be completed.

Also, the deal gives Provenance the right of first refusal for one year from the date of closing on around 50 acres adjacent to the property. Provenance would have to match the price of competing offer, said FCRA Trustee Galen Hunter.

Hunter said homes along the ridge line of the property that looks north and west toward Fort Smith could be priced around $500,000 or more, with the home prices declining through the eastern section of the property.

“This is probably some of the best residential property we have,” Hunter said of the location and the views.

Fort Smith-based ArcBest Corp. – formerly known as Arkansas Best Corp. – announced May 30 a $30 million plan that will see the construction of a new office building and data center at Chaffee Crossing and the addition of an estimated 975 corporate jobs by 2021.

The FCRA also agreed to sell 10 acres to Steve Beam (Beam Properties) for development of duplexes. The property is located on the Barling side of Fort Chaffee along Arkansas 59 and H Street. The 10 acres, if the deal goes through, would sell for $90,000.

A deal to proceed on the sale of 2.04 acres at the corner of Massard Road and Chad Colley Boulevard was also approved by the FCRA. Southland Management Group is interested in buying the property to build a convenience store.

Ivy Owen, FCRA executive director, said around 2,500 acres are still available for sale or donation on the property that was once part of Fort Chaffee. He said about 20% of the remaining property is slated for residential development, with about 25% for commercial and retail use. The remaining is industrial or mixed use.

Land donations are typically reserved for large projects. For example, the FCRA in early 2014 donated 200 acres – valued at $4 million – for development of the Arkansas College of Osteopathic Medicine. The college, estimated to cost around $31 million for the first phase of construction, anticipates accepting its first class of 150 students in the fall of 2016.

NorthWest Arkansas Community College will offer the first of several monthly culinary personal enrichment classes to the public. In a partnership with NWACC Workforce Development, the college is offering the Born2Cook Inspired classes.

The first class, focused on Italian cuisine, will be from 6 to 8:30 p.m., March 5, in the demonstration kitchen inside the Shewmaker Center for Global Business Development on the college’s Bentonville Campus.

The fee for the class is $75. Students will learn to cook an Italian dinner and then enjoy the meal afterward. Students interested in the personal enrichment class may phone Corporate Learning at 479-936-5175. Space is limited.

Participants in the March 5 class will prepare fresh ricotta cheese to fill homemade cannelloni crepes that will be baked in marinara. Sumptuous Pork Milanese will be accompanied by a crisp green salad tossed with creamy garlic Parmesan dressing, and the instructors also will teach participants how to make a quick homemade Focaccia to round out this Italian feast.