ETD: 738 Wireless Networking; S.C.O.R.E.; Holiday Season; New Taxes On Your Internet Usage?; Wal-Mart clarifies RFID plans

E-Tailer's Digest etd_post@gapent.com
Thu, 13 Nov 2003 08:03:22 -0500


  E-Tailer's Digest --- Everything for the  Retailer
  Issue #0738                     November 13, 2003
  George Matyjewicz, Moderator         mailto:georgem@gapent.com
  Published by:  GAP Enterprises, Ltd.  http://www.etailersdigest.com
==================================================================
   CONTENTS

  [1]  Greetings
  [2]  Wireless Networking
  [3]  S.C.O.R.E.
  [4]  Holiday Season
  [5]  New Taxes On Your Internet Usage?
  [6]  Wal-Mart clarifies RFID plans

==================================================================
  [1]  Greetings.
==================================================================
Hi All:

16 days to Black Friday - are you ready?

We have some interesting member posts today.  I've mentioned S.C.O.R.E. 
before, and one of our members is a member.  I hope to get more information 
from him, as it is an excellent organization.

The Holiday season seems to be heading up.  Most major retailers have been 
reporting excellent sales thus far.  How are you doing?

I had some great experiences with wireless networking, and found some 
interesting material as wireless relates to retailing.  Have you tried it 
yet?  Along the same line, Wal-Mart has clarified it's RFID plans.  Looks 
like that will be coming to a store near you soon.

Let's hear about your business,  which will remain  for posterity at 
our  "Members: Who Are You?" site. 
http://etailersdigest.com/resources/members/index.htm And we have a form 
there for you to tell us about you.  As I said when I first proposed this 
idea, we have "known" each other for a long time, yet we often don't know 
anything about each other.   So, tell us who you are and what you do.

Now, let's get to everything for the retailer.

Sincerely


George Matyjewicz, PhD
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem@gapent.com
http://www.etailersdigest.com

==================================================================
  [2]  Wireless Networking
==================================================================
I recently installed a wireless network on our office.  I must say, it is 
quite good.  And, as an added benefit, I can now connect at many airports 
and other hot spots (Starbucks, McDonald's, etc).  Tuesday morning, at 
LaGuardia Airport in NYC, while waiting for the plane, I was able to 
connect online and take care of business.  The fee isn't too bad - $6.95 
for 24 hours.

It works quite easy.  You set up the base station, attach the broadband 
connection and the server, attach a wireless card to laptop and 
viola!  There are three standards, usually referenced as 802.1x.  802.1A is 
higher speed; 802.1B is the most common; 802.1G is the newest and combines 
both of the others.  So, if you use 802.1G you can link to A or B.

I see wireless in use at retail stores with a couple of lanes.  In the old 
days, you had to have cabling specialists come in to the store and wire for 
a network.  It was expensive and very limited.  For example, we had a large 
retail client who had 12 lanes in each store.  And three times a year that 
had gigantic off-premises sales at Giant Stadium, Yonkers Racetrack and 
other such places.  This meant they had to have a separate network setup to 
connect the POS units at the sales.  With wireless, all that's needed is a 
card in each PC, with a small base station (about the size of an eight port 
router).

RIS News reports that wireless security software developer Columbitech 
announced the availability of Columbitech Embedded Client API, which 
enables device manufacturers and retailers to create secure VPN clients for 
wireless devices in the retail industry that have a non-standard operating 
system. The API is designed for all wireless devices that previously had no 
security solution such as wireless cash registers, wireless printers and 
wireless anti-theft devices. By using Columbitech Embedded Client API, 
retailers save costs by extending the lifecycle of their wireless devices 
by eliminating the need to buy new wireless equipment.

On the down side, a research paper posted online warns of holes in the 
latest WiFi (or 802.11) wireless cryptography protocol and outlines how 
WiFi Protected Access (WPA) can be compromised using a traditional cyber 
assault known as a dictionary attack. The paper, written by Bob Moskowitz 
of TruSecure's ICSA Labs, cautions against use of weak passwords that could 
allow attackers to gain unauthorized 
access.  http://www.ecommercetimes.com/perl/story/32070.html

So, when you setup a passphrase (note I did not say password), use 
something meaningful.  My old security officer used to use something like 
G#1SOSSB!$%# which translated to Greatest #1 Security Officer Since Sliced 
Bread (expletives!).  So, give your passphrase some logic - both for 
wireless and in general.  Forget about your birthday, or spouse's 
name.  Give it some logic.

George

==================================================================
  [3]  S.C.O.R.E.
==================================================================
George, Thanks for the latest e-mail newsletter . . . specially the link to 
the article on how small business can afford e-commerce.  I will make this 
into a handout for my volunteer work with SCORE -- Service Corp of Retired 
Execs (although one does not, as I am not, have to be retired) which is a 
free consulting program under the auspices of the US Small Bus Adm.

I would also like to take this opportunity to advise you, if I have not 
already, of the articles on business and, in particular, business topics 
that affect sales on my web site -- www.sellingselling.com. We have just 
updated and added many articles.  Please fee free to use them if you find 
some the theme or your newsletter.

Alan J. Zell, Ambassador Of Selling
Member of SCORE CyberChapter and SCORE Chapter 11, Portland, OR
azell@aol.com
Winner of the Murray Award  for Outstanding Achievement in Sales & Marketing
Chairman, PNW Sales & Marketing Group

+++ [Moderator's Comments] +++
Thanks Alan.  I shall consider some if them in upcoming issues.

Tell us more about SCORE.  I've used them in the past. Wonderful 
opportunity.  Our list members would love to know.

George

==================================================================
  [4]  Holiday Season
==================================================================
  JC Penney and May Department Stores (Lord & Taylor, Famous Barr, etc) 
reported better-than-expected profits for the third quarter and analysts 
predicted strong holiday sales.

Wal-Mart Stores' October same-store sales climb 4.5 percent, surpassing 
Wall Street's estimate of 4.2 percent. U.S. same-store sales rose 4 percent 
at its namesake division and 7 percent at its Sam's Club warehouse chain. 
Overall sales for the four weeks ended Oct. 31 rose 12 percent to $19.07 
billion up from $17.05 billion a year earlier. October sales at the 
Wal-Mart division increased 11 percent to $12.72 billion compared with 
$11.49 billion a year earlier. Sam's Club experiences October sales of 
$2.64 billion, an improvement of 9.7 percent over sales of $2.4 billion in 
the period last year.

Target Corp. reports that net retail sales for the four weeks ended 
November 1, 2003, rose 7.9 percent to $3.37 billion from $3.13 billion for 
the similar period 2002. Comparable-store sales increased 1.6 percent from 
fiscal October 2002. Sales at Target Corp. were below plan in October, 
reflecting exceptionally weak sales at both Mervyn's and Marshall Field's, 
chain's that operate under Target's control.

Pier 1 Imports reports that sales for the four-week period ended November 
1, 2003, rose to $1.43 million an increase of 9.3 percent from $1.31 
million last year. Comparable store sales increased 1.6 percent. 
Year-to-date sales for the eight-month period amounted to $1.14 billion up 
5.9 percent from $1,08 billion last year.

The trend seems to be carrying over to other retailers and analysts 
also.  Maybe we'll all have a good season.

On a somewhat sour note, according to Quinn Halford in Gifts & Dec Online 
(www.giftanddec.com),   FAO Inc. announced that anticipated sales 
improvement from initial holiday marketing efforts have not materialized. 
The company will not have adequate liquidity to operate normally in 
November, and liquidity in December will depend on sales trends through the 
holidays. FAO is asking vendors to reduce shipments and to extend payment 
dates to the first of the year. FAO has also requested an "overadvance" 
from its lenders, a move that could lead to lenders issuing a notice of 
default. The company directed its investment banker to "review strategic 
alternatives, including a sale of the company." FAO, which operates 
retailers FAO Schwarz, Zany Brainy, and The Right Start, emerged from three 
months of Chapter 11 bankruptcy protection in April of this year.

I do hope that FAO can hang in there.  They are my favorite toy store.  And 
at Christmas, I'm a little kid.

George

==================================================================
  [5]  New Taxes On Your Internet Usage?
==================================================================
A previous E-Tailer's post ended this way:

What do you think about the new spam laws and the prospect of paying new 
taxes on Internet usage? Let us know at feedback@winxpnews.com - and if 
you're a U.S. citizen, let your representatives know, too. For information 
on how to write to your elected officials, see:
http://www.winxpnews.com/rd/rd.cfm?id=031104ED-Congress

To which I say:

If this info came out of WinXP News, I give it zero credibility. Reason: 
I've had the misfortune of finding myself on this particular outfit's list 
since I dunno when, and I sure didn't opt in to receive anything from them. 
Which, in my book, means that they're sending me spam.

Furthermore, I don't even use XP, so why would they even bother putting me 
on their list?

Martha Retallick, "The Passionate Postcarder"
http://www.PostcardMarketingSecrets.com/

+++ [Moderator's Comments] +++
I take it you don't like them <grin>

In a related article, the Senate is expected to renew a ban on Internet 
access taxes despite an outcry from cash-strapped state and local 
governments that fear the loss of up to billions of dollars in potential 
revenue. The controversy is not related to taxing online sales, which is 
banned.

See the Full Story:
http://www.ecommercetimes.com/perl/story/32078.html

==================================================================
  [6]  Wal-Mart clarifies RFID plans
==================================================================
Wal-Mart Stores Inc. will take a phased approach to rolling out radio 
frequency identification (RFID) technology in its supply chain. At meetings 
with suppliers and technology vendors in Bentonville, Ark., last week, the 
retailer said it planned to start using RFID in its Texas facilities first.

In June, Wal-Mart CIO Linda Dillman announced the company wanted its top 
100 suppliers to start using RFID on pallets and cases by 2005, and all 
suppliers to use the technology by 2006. Wal-Mart will use RFID tags based 
on the Electronic Product Code (EPC) protocol developed by the Auto-ID 
Center at MIT and now managed by EPCglobal, a joint venture of EAN 
International and the Uniform Code Council.

The first implementations will be at three Wal-Mart distribution centers 
and 150 stores in Texas. The company plans to add another 100 distribution 
centers and 3,000 stores by the end of 2005.

Initially, Wal-Mart will accept any RFID tags based on the EPC using the 
UHF frequency, but wants to standardize on the EPC Class 1, Version 2 
standard. Companies that currently communicate with Wal-Mart using 
electronic data interchange (EDI) will be expected to add the EPC code to 
their advance ship notices.

One part of the EPC network that apparently will not be part of the initial 
Wal-Mart project is the Object Naming Service (ONS), which would provide 
EPC look-ups via the Internet. Analysts think other early adopters will 
follow suit, and install EPC systems using point-to-point EDI connections.

"EPCglobal must reassess the validity of the highly academic EPC Network 
and offer a viable road map from current industry requirements to the 
vision," said Noha Tohamy, analyst at Forrester Research Inc.

The Department of Defense, which issued its own RFID mandate last month, 
will also likely standardize on Class 1, Version 2 EPC tags. The DoD held 
its own meetings recently to further refine its plans for RFID in the 
supply chain. Wal-Mart is actively involved in developing the DoD's 
implementation strategy.

Wal-Mart's top 100 suppliers must present implementation plans by February 
2004.

Details at...
http://www.frontlinetoday.com/frontline/article/articleDetail.jsp?id=75604

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