MINNEAPOLIS (WCCO) – It’s become serious business when a dog does its business at a Roseville apartment complex.

Rosedale Estates North was having problems with dog owners not cleaning up after their dogs.

“It was bad,” said dog owner, Melody Pomerenke. “I would have to have a separate pair of shoes to go outside. It was not good.”

In fact, the poop problem got so bad that property managers hired a company called Bio Pets Vet Lab to start a dog DNA registry.

As part of the lease agreement, DNA swabs are taken from a pet’s mouth and sent to the Bio Pets lab, where they keep the DNA on file. Should a pet owner not pick up after their dog, the poop is sent into the lab to be tested for a match — and the guilty party is identified.

“It’s been positive after that initial laughter,” said property manager, Cheryl Gallo. “We just started last month.”

Pomerenke’s Chihuahua Dino was one of the first to submit DNA. He’s innocent…for now. Good thing, too, because the fine for the first offense $100.

“You can see someone letting their dog go to the bathroom, and they will still deny it,” Gallo said. “This way, there is no denying it. I thought it was a great idea from the beginning.”

Rosedale Estates just had their first offense. They have a suspect in mind, and the testing is taking place at Bio Pets Vet Lab.

The second offense is also a $100 fine, and the dog can no longer live in the apartment.

Many renters seem to be OK with the DNA testing, and they say the situation has already gotten better.

MINNEAPOLIS (WCCO) – Would you like a little extra energy? Most people would.

That’s why coffee shops and supplements are all so popular. But when I started having insomnia and feeling run down and irritable, I knew I needed more than a cup of coffee.

At first, I thought it was early menopause, or worse. It turns out, many women in their 30s and 40s have similar symptoms of weariness and irritability.

The solution I found not only has me feeling more energetic and stronger; it also opened my eyes to a growing controversy in women’s medicine.

At first, I turned to Bonnie Erickson, a friend, who suggested I see an anti-aging doctor who had worked wonders for her.

“Immediately I felt as though things were different,” she said. “I felt like I had my quality of life back.”

She’s been seeing Dr. Khalid Mahmud for eight years. And after disappointing results with traditional medicine, she swears by his combination of holistic treatments and natural hormones.

“I just think it’s a more natural approach,” Bonnie said. “It’s more of a preventative approach.”

Over the years, she’s convinced most of her family, including her husband and two of her daughters, to see Mahmud.

One of her daughters, Keri Fuqua, had symptoms similar to mine. She also said her treatment with Mahmud was successful – so successful that I couldn’t help thinking that I needed to see him myself.

Mahmud is a former chief of medicine and head of the cancer program at North Memorial Medical Center. His walls are covered with board certifications.

But after a career spent fighting diseases, he has spent the last 10 years trying to prevent them. Mahmud says anti-aging is about feeling younger, regaining lost energy and keeping the body in tune.

He takes a holistic approach, testing everything from your thyroid to diabetes and cholesterol. But with women, he says, the problem is often in their hormones.

“Nature wants to give us youth and has us perfectly balanced during youth, because nature wants us to reproduce,” he said. “But once we have reproduced and have gone to 40s or so, then nature loses interest in us.”

He uses natural versions of progesterone and estrogen – derived from plants and vegetables, like yams — called bioidenticals. He says they’re different than the pharmaceutical varieties used in hormone replacement therapy.

However, the use of bioidenticals has been under intense scrutiny ever since a major study was stopped in 2002, when it linked them to breast cancer, heart attack and stroke.

Mahmud says the natural hormones are different and safe, and he tests blood frequently to maintain the right balance.

My own blood tests showed that I’m not even pre-menopausal, but I was too low on progesterone and vitamin D. Mahmud said my lack of progesterone, which calms you, could explain why I wasn’t able to sleep.

He prescribed me bioidentical pills to crush and dissolve under my tongue — that way, they avoid going through the digestive system. He also prescribes, for other patients, bioidenticals in creams and ointments.

It’s an approach that differs from mainstream medicine, but not as much as you might think.

At the University of Minnesota, Dr. Carolyn Torkelson also prescribes bioidenticals, but in much lower levels.

“What we’re really trying to do is control symptoms,” Torkelson said. “And in order to control your symptoms, we don’t need a high level of estrogen or progesterone.

She uses just enough to get past the bumps in the road of menopause. Not to get back to the levels lost from youth.

“I’ll give them to you for symptomatic control, but following the blood work would probably put you on higher dose than I’d be comfortable giving you,” she said.

That’s where the doctors differ, because Torkelson feels a hormone is a hormone, regardless of where or how it’s produced. And she treats the bioidenticals with kid gloves, because of the 2002 studies.

“We have no studies to suggest they’re any different than taking the Premerin or the Provera [ a synthetic variant of progesterone] in regards to side effects,” Torkelson said.

Mahmud says he’s been working on his own study, and hopes to have it published soon. He says he’s treated almost 1,000 patients with biodenticals — without side effects.

“If you had put them on your hormone therapy…we would have had 30 cases of cardiovascular events and we had zero,” he said.

It’s a contentious issue in the medical community. Doctors are worried about long-term concerns while women want relief from often puzzling problems.

It’s the reason my friends and others went to Mahmud in the first place.

“Could it be just as easy as managing your hormones?” Erickson asked. “I don’t know. I guess I’m trying this route, because I tried the other.”

The anti-aging medicine is not often covered by insurance. But only a week after taking the bioidenticals for the first time, I’m sleeping much better and feeling as though I have more energy.

Like my friends said, it really is night and day. And there are also men who go through this, too. But the big questions is: Am I any easier to be around the house with?

But that’s a question for Frank and my kids to answer.

For more information about the doctors listed in this story:

Dr. Carolyn Torkelson, U of M Medical Center
612-273-7111 | U Of M Providers

Dr. Khalid Mahmoud, Innovative Directions In Health
(952) 922-2345 | Innovative Directions in Health ‎

EDINA, Minn. (WCCO) — It was the nation’s first shopping mall, and when Southdale in Edina opened in 1956 it was big national news. But Southdale has struggled under stiff competition from the Mall of America.

Things got so tough that earlier this year the Edina City Council voted to give Southdale a nine-year $5.1 million interest-free loan.

On Thursday, the mall announced plans for a major renovation and five new tenants that they say will lead to a rebirth of the historic mall.

Some have said the five new retailers announced, while popular, are not game changers. But the mall’s owners — Simon Properties of Indiana — insist it’s just the beginning.

Visitors to Southdale on Thursday wouldn’t argue against the notion that the mall has seen better days. The Kelly family of Stillwater, for instance, was stunned to find only two food options in the food court, neither of which worked for 4-year-old Isabella.

Patrick Kelly grew up nearby and was stunned by the empty storefronts.

“Coming up here expecting a lot more, it’s kind of depressing seeing it,” he said.

He and his wife usually shop elsewhere. Competition from the Mall of America in Bloomington and the upscale Galleria next door have left Southdale struggling, but Southdale has high hopes from an influx of new tenants.

The new tenants are specialty clothing stores Lucky Jeans, Madewell, Soma Intimates, White Huuse/Black Market and cosmetics specialist Sephora.

But that’s not all. Laurie Van Dalen, a manager at Southdale, said “we have we have a lot of leases that are in negotiation right now. Probably a dozen more we are excited to talk about … in the near future.”

The third-level food court will be replaced with all-new version at street level, and updated tile and wood will give the old mall a new look.

“The new Southdale will win customers back and help the area,” said Edina Mayor Jim Hovland. “As goes Southdale so goes the neighborhood. For us, that is a truism. We really believe that to be so and we have been told that repeatedly.”

But Southdale has not only struggled because of competition. Traditional malls across the country have been losing ground to open-air malls like the shops at Arbor Lakes in Maple Grove and strip malls. Southdale is betting the renovation can reverse the trend.

The vote came after hearing concerns from neighbors and golfers who are against the project.

Eden Prairie-based developer Hunter Emerson purchased the 43-year-old course and is looking to build more than 170 single-family homes on the 80-acre site.

Golfers may be excited for the time being, but co-owner of the course, Robert Zackheim, says the course continues to lose money.

“As much as we would like to make it work, continuing to run our golf course operation long term is simply not viable,” Zackeim said.

Zackheim says Parkview has been impacted by the over building of golf courses throughout the years, also the economy and the rising cost of maintenance.

He says even with a $1 million investment, the revenue they need to stay open is not coming in.

The owner told the commission at its peak, more than 50,000 rounds were played on the course. In 2011, that dropped to 37,000, a 25 percent decrease.

Emerson is not calling it quits, the Eagan Patch reports the developer plans to change the lay out to include senior housing.

The city council is expected to the review the request on June 19.

The city’s Port Authority signed a $1.85 million agreement on Tuesday for an empty warehouse in the Lowertown area. It’s been considered as a good site for a new stadium for the minor league team.

The Saints current ballpark, Midway Stadium off Energy Park Drive, is 30 years old and the team says it’s time for an update.

The Saints released an illustration of the proposed new ballpark. They say it would hold about 7,500 fans and total costs to build would be around $47 million.

MINNEAPOLIS (WCCO) – WCCO-TV’s investigation into an airline’s pricing problems got the attention of the U.S. Department of Transportation.

Last week, WCCO-TV exposed how some Delta frequent fliers were paying more for plane tickets. The company blamed it on a computer glitch that went on for 19 days and that stopped when we contacted them.

Now, the department is looking into what happened.

Returning from a Delta flight from Dallas, John Bucher displayed the frequent flier card he flashes a few times each week.

“I just thought I was going to be treated fairly,” Bucher said. “I didn’t know there were two standards out there.”

His status makes him one of the airline’s top customers.

“I do about 90 percent of my flying on Delta,” he said.

So when he heard our report last week, he wanted his own records reviewed.

Patrick Smith and his business partner happened to book trips side-by-side. They discovered that logging into their Sky Miles account sometimes meant paying hundreds of dollars more.

Bucher wanted to know if the same thing happened to him. He says he called Delta three times last week, and no one at customer service knew about the computer glitch.

“Being a partner, I would just expect a little higher service and standard,” Bucher said.

In a blog, Delta now says it did not sell the same flight itinerary to different people for different prices. That’s not technically possible. Delta says it was testing a new search function on its website that could only be seen by customers who weren’t logged in, so as not to disrupt the shopping experience for its best customers.

So while the different prices appeared to be for the same trip, frequent fliers who clicked to the next screen would find they were actually getting better return flights. The company says sometimes those trips cost more, sometimes less.

In all of our checks, the frequent flier never got the better deal.

Charlie Leocha contacted the Department of Transportation after our story. He’s the director of Consumer Travel Alliance in Washington, D.C., an advocacy group for travelers.

“Now, all of a sudden, to get the price of travel you have to get out a spreadsheet,” Leocha said. “It’s worse than a mortgage.”

Leocha wants the Transportation Department to review how all airlines display prices, including extra fees. He says that if you could compare trips across the board, the pricing glitch at Delta would have been noticeable right away.

“Then you could actually see what the true cost of travel is — and that’s the problem: we can’t do that today,” Leocha said.

That’s a call for change customers like Bucher will wait for. He is now questioning Delta’s image and the customer status he thought meant so much.

“I’m just hoping they can be more open and straight forward with us in the future,” Bucher said.

Delta told Bucher it will review his transactions. The Department of Transportation investigation into Delta will likely take months. Delta has added contact information to its blog, so you can ask to have your flight’s price reviewed.

To contact the Transportation Department, click here.

The Department of Homeland Security’s immigration enforcement unit is already probing the company for compliance with employee work authorization laws. The company said Friday that the Securities and Exchange Commission has also issued a subpoena regarding its compliance with work authorization requirements.

The company disclosed the latest probe, by the U.S. Attorney for the District of Columbia, in a SEC filing on Tuesday.

The restaurant chain, which is based in Denver, said it is cooperating with the investigations.

In 2010, following questions from federal immigration officials, Chipotle fired about 450 Minnesota employees who couldn’t prove they were eligible to work in the U.S. Federal officials then requested worker authorization documents for employees in Virginia and the nation’s capital. That investigation continues. The company has said that it is following the law.

Shares of Chipotle rose $2.23, less than 1 percent, to close at $395.56 on Tuesday. Shares have ranged from $267.43 to $442.40 in the past 12 months.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

MINNEAPOLIS (WCCO) – On Monday night, a WCCO-TV investigation showed a popular trampoline park selling highly caffeinated energy drinks and energy shots to kids. In the story’s aftermath, the two Skyzone parks in Minnesota pulled energy drinks from their shelves and are no longer selling them.

But the drinks are easy to find — from convenience stores to supermarkets — and their bright colors and marketing campaigns appeal to young people.

The initial story showed how two 12-year-old girls got sick after drinking energy shots at Skyzone. While they recovered, there is concern in the medical community that such drinks are dangerous for kids, especially if they’re on certain medications or have certain pre-existing conditions.

The FDA limits the amount of caffeine in pop to 71 milligrams per 12 fluid ounces. But when it comes to energy drinks, there are no FDA limits on caffeine, because they are considered to be nutritional supplements by the U.S. government.

While the FDA says they are nutritional supplements, the American Academy of Pediatrics says energy drinks have no therapeutic benefit and for some children have been linked to serious medical problems.

The report warns that the drinks are being marketed to kids and are easily available — just the way they were at Skyzone.

Ted Labuza, a professor of food science and nutrition at the U of M, said there should be a requirement in order to buy energy drinks.

“There probably should be some kind of requirement that you should be 18 or older to even have this stuff, but even at 18 there is a risk,” he said.

Most of the bottle drinks do have warning labels that are in fine print. The warning on the bottle at Skyzone says, “Caution: Powerful: not recommended for children, pregnant or nursing women or those sensitive to caffeine.”

Mackenzie Hodge and her friend Kelli Pehrson got sick at Skyzone after drinking one energy drink and two energy shots.

“I started to not feel good after I finished the slushie and I upchucked,” Hodge said.

Lab tests showed the girls drank the equivalent of three 12 ounce Mountain Dews in 90 minutes. The Academy of Pediatrics warns that energy drinks are especially risky for kids who are on ADHD medications and have a history of seizures, diabetes, heart problems and mood disorders.

Labuza said the drinks can cause sweating, heart palpitations and nausea in kids. Those symptoms, he said, can lead to heart attack.

The Minnesota Skyzone franchises are no longer selling caffeinated energy drinks or shots. However, there are 37 Skyzones franchises that are operating or are about to open in markets across the country. We reached out to Skyzone to see if other franchises have also sold caffeinated energy drinks or shots. But we were told Jeff Platt, the CEO of Slyzone, was unavailable for comment.

MINNEAPOLIS (WCCO/AP) — Hundreds of job cuts were announced today at General Mills. The food conglomerate, based in Golden Valley, is eliminating 850 jobs worldwide and about half of them in the Twin Cities.

General Mills’ current global workforce is about 35,000, including 5,600 in the Twin Cities.

A spokesperson said administrative and support positions will be the most affected. The cuts are being attributed to organizational changes in all areas of the company.

Medtronic, the Fridley-based medical device manufacturer, is also slashing 1,000 jobs, including including 220 at its facility in Mounds View.

The company has 45,000 employees worldwide.

John Budd is a professor of work and organizations in the University of Minnesota’s Carlson School of Management.

“Whenever anyone loses their job, we should be concerned,” Budd said. “People have families to raise, bills to pay.”

But he said in the grand scheme of things, the numbers are not that big.

“Maybe 400 jobs or so for General Mills locally, and we have a huge robust here, locally,” he said. “So in the grand scheme of things, it’s probably not that big of a deal.”

Budd said it is a reminder that companies are always looking for ways to be more efficient, and finding new ways of cutting costs. He said we can’t be complacent, and think that the recession is over.

He also said the announcements continue to illustrate the power of Wall Street.

“Both of these announcements really are not aimed at us, as consumers or the public, but they are really aimed at Wall Street,” he said. “And trying to convince Wall Street that these companies continue to be vigilant, about cutting costs and therefore dropping their stock price.”

Budd said most companies don’t typically make the same kind of announcements when they are hiring new employees.

General Mills, the maker of Cheerios cereal, Nature Valley granola bars and Hamburger Helper, said the moves will make it more effective and allow it to focus on key growth strategies.

General Mills said it expects the plan to result in total pretax charges of about $109 million, which will cover costs related to workers whose jobs are terminated and equipment.

The company said about $94 million of those charges will come in the fiscal fourth quarter, which ends Sunday. The rest will be recorded in fiscal 2013. It plans to use the savings from the cuts on future growth strategies and to speed up global development.

General Mills said it still hopes to post an adjusted fiscal 2012 profit of $2.53 to $2.55 per share. Analysts expect a profit of $2.54 per share.

The company employed about 35,000 people across the world in fiscal 2011, according to its annual report. In March, it said its fiscal third-quarter profit fell slightly as a result of higher costs.

General Mills’ brands remain some of the most popular. But like most of its peers, the company has struggled with higher costs for everything from ingredients to labor and been forced to raise prices to offset them.

General Mills shares rose 3 cents to close at $38.58 Tuesday.

(TM and © Copyright 2012 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2012 CBS Broadcasting Inc. Used under license. All Rights Reserved.This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

Its adjusted earnings and revenue both topped Wall Street’s expectations. That’s sorely needed good news for the electronics chain as it attempts to update its increasingly outmoded “big-box” store model. At the same time, the company is seeking a new CEO after the former top executive left amid scandal. Still, the results show the chain has a long way to go to improve results in a sustainable way.

Best Buy said U.S. sales growth in tablets, mobile phones, e-readers and appliances helped offset declines notebooks, gaming, digital imaging and TVs during the quarter. But revenue in stores open at least 14 months, which excludes the impact of stores that open and close during that period, fell 5.3 percent during the quarter. They were dragged down by weakness in Europe and China.

Best Buy has been shrinking store size and focusing on its more-profitable products such as mobile phones. It’s also trying to combat the so-called “showrooming” of its stores — when people browse at Best Buy but purchase electronics goods elsewhere. In April, it announced a major restructuring that includes closing 50 stores, cutting 400 corporate jobs and trimming $800 million in costs.

In a call with investors, interim CEO Mike Mikan said those are just the “first phase” of major changes the chain needs to make in order to survive in a changing retail landscape.

“Today’s marketplace is different,” he said. “From my perspective it is a marketplace we weren’t prepared for. Best Buy’s customer experience is no longer unique as it once was.”

Mikan, who is in the running to be named permanent CEO, said he hopes to give details on changes in the next few months.

“We know we have to better adapt to the new realities of the marketplace, and we are creating a long-term plan designed to make Best Buy more relevant with customers, and position the company for sustained, profitable returns in the years ahead,” Mikan said.

Meanwhile, Best Buy is facing turmoil in its executive ranks. In April, then CEO Brian Dunn left amid allegations that he violated company policy by having an inappropriate relationship with a female employee. An investigation related to the matter resulted in the ouster of founder and chairman Richard Schulze, who knew about the relationship and failed to alert the board or human resources. Chief Marketing Officer Barry Judge also recently left the company.

The Minneapolis-based company reported net income fell to $158 million, or 46 cents per share, in the three months ended May 5. That’s down from $212 million, or 53 cents per share, a year ago.

Excluding restructuring charges, earnings were 72 cents per share. Analysts expected 59 cents per share, according to FactSet.

Revenue rose 2 percent to $11.61 billion, aided by an extra week. Domestic revenue rose 5 percent to $8.82 billion, but international revenue fell 6 percent to $2.79 billion on weakness in China and Europe. Wall Street expected $11.5 billion.

Best Buy affirmed its adjusted 2013 net income guidance of $3.50 to $3.80, excluding restructuring charges. Analysts expect $3.60 per share.

Analysts were mixed on the results.

“We view the results as encouraging as they are occurring in the midst of some significant departures from the company,” said Citi Investment Research analyst Gary Balter. He said he believes the company’s problems are “fixable situation under the right leadership.”

During the conference call Balter said that Mikan’s call for major change was “music to many of our ears” as analysts have long said the company is moving too slow on making changes.

But NBG Productions analyst Brian Sozzi was skeptical of any turnaround Best Buy takes on, due to the strength of online retailers like Amazon.com, which continues to open fulfillment centers.

“View it this way: for every large fulfillment center Amazon is opening (and hearing it from its shareholder base as result) that is one twist of the knife in the Best Buy story,” he wrote.

Shares rose 29 cents, or 1.6 percent, to close at $18.46 Tuesday.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

St. Paul’s Director of the Office of Financial Services Todd Hurley reports that the year over year sales tax collection for St. Paul was $1.5 million for January 2011 and $1.6 million for January 2012. It takes $20 million to account for a $100,000 increase with the half cent sales tax.

“Red Bull has been a great partner for the City of Saint Paul and this analysis proves without a doubt the positive impact Crashed Ice had in our community,” Mayor Chris Coleman said. “Saint Paul is a world-class city that attracts world-class events, and events like Red Bull Crashed Ice provide great strength for our local economy.”

The Crashed Ice event was held January 12 through January 14 near the Cathedral of St. Paul.

Delta said it will start leasing the 717s next year as long as its pilots approve a new labor contract, which isn’t certain. Also, Southwest said some of the deal’s details still need to be worked out.

Delta said it will begin taking three planes a month starting in mid-2013.

With 117 seats, the 717 fills a hard-to-fit niche in Delta’s fleet. Delta will use the 717s to replace 50-seat regional jets, which are increasingly unprofitable at higher fuel prices. They’ll also replace the DC-9s that Delta got when it bought Northwest. Those planes were similar in size to the Boeing 717, but they are getting close to retirement age. Planes in that size are often used for domestic flying on routes that aren’t busy enough to fill a larger Boeing 737. Some of Southwest’s 737s seat as many as 175 people.

Delta said the deal accelerates the revamping of its fleet, which has also included the elimination of turboprops. Because the 717s are replacing other planes, Delta said its overall flying level won’t change.

The deal is part of a tentative agreement between the airline and its pilots. The agreement would also allow Delta to add 70 more 76-seat regional jets, for a total of 325, to be flown by feeder airlines. Pilots at big airlines like Delta fight to limit flying by so-called feeder carriers because they see those flights as threatening their jobs. Union leaders at Delta have approved the deal. Delta said the deadline for rank-and-file voting is the end of June.

For Southwest, the deal means it goes back to operating only Boeing 737s. Southwest has long favored running a single airplane type because it simplifies pilots training and aircraft maintenance. AirTran also flew mostly 737s, but it also liked the 717. AirTran bought the first one Boeing delivered, in 1999, and took one of the last ones in 2006.

When Southwest bought AirTran last year, it first said it would keep the 717s on some AirTran routes. But more recently it began looking for someone else to take the planes.

Southwest and AirTran have federal certification to operate as one airline, and Southwest has begun painting AirTran planes. But it has said it will be a long time before the AirTran name disappears.

Southwest has orders for more 737s, and it said its overall fleet count will stay about the same as the 717s leave. AirTran 717 pilots will train to fly the 737s. Flight attendants are already trained on both planes. Southwest said its plans to integrate AirTran workers into Southwest “over the next several years remain unchanged.”

Shares of Atlanta-based Delta Air Lines Inc. fell 6 cents to $10.52 in afternoon trading. Dallas-based Southwest Airlines Co. fell 11 cents to $8.23.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

MINNEAPOLIS (AP) — Best Buy Co. said Tuesday that its fiscal first-quarter profit dropped 26 percent on restructuring charges as the struggling electronics retailer began implementing its turnaround plan.

Its adjusted earnings and revenue both topped Wall Street’s expectations, briefly sending Best Buy shares up 7 percent in premarket trading before turning lower.

The results provided some sorely needed good news for the electronics chain, which is attempting to update its increasingly outmoded “big-box” store model, as competition from discounters and online retailers remains tough. It is also seeking a new CEO after Brian Dunn abruptly resigned in April.

Best Buy said U.S. sales growth in tablets, mobile phones, e-readers and appliances helped offset declines notebooks, gaming, digital imaging and TVs during the quarter.

Still, revenue in stores open at least one year, a key retail metric, fell 5.3 percent during the quarter, dragged down by weakness in Europe and China. The measure includes online sales and excludes stores that have opened or closed over the past two years.

Best Buy has been shrinking store size and focusing on its more profitable business in an effort to combat the so-called “showrooming” of its stores — when people browse at Best Buy but purchase electronics goods elsewhere. In April it announced a major restructuring that includes closing stores, cutting 400 jobs and trimming $800 million in costs.

“We know we have to better adapt to the new realities of the marketplace, and we are creating a long-term plan designed to make Best Buy more relevant with customers, and position the company for sustained, profitable returns in the years ahead,” said interim CEO Mike Mikan.

In addition, Best Buy is facing turmoil in its executive ranks. In April, an internal investigation found that Dunn violated company policy by having an inappropriate relationship with a female employee. That investigation also resulted in the ouster of founder and chairman Richard Schulze, who knew about the relationship and failed to alert the board or human resources. Chief Marketing Officer Barry Judge also recently left the company.

The Minneapolis-based company reported net income fell to $158 million, or 46 cents per share, in the three months ended May 5. That’s down from $212 million, or 53 cents per share, a year ago.

Excluding restructuring charges, earnings were 72 cents per share. Analysts expected 59 cents per share, according to FactSet.

Revenue rose 2 percent to $11.61 billion, aided by an extra week. Domestic revenue rose 5 percent to $8.82 billion, but international revenue fell 6 percent to $2.79 billion on weakness in China and Europe. Wall Street expected $11.5 billion.

Best Buy affirmed its adjusted 2013 net income guidance of $3.50 to $3.80, excluding restructuring charges. Analysts expect $3.60 per share.

Shares fell 17 cents to $18 per share 45 minutes ahead of the market opening after rising as high as $19.73 shortly after reporting its earnings.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

ST. PAUL, Minn. (WCCO) — Some small business owners say the recession is coming to an end. However for them, it’s not quite the same as it was before.

The businesses along St. Paul’s Grand Avenue have changed since hard times hit a few years ago. There are now more big chain stores along Grand Avenue, next to the small shops that survived. With competitor Pier 1 Imports just down the road, Traditions Home Furnishings is celebrating 25 years in business.

The upscale furniture store survived the recession.

“It was really scary,” said owner Suzanne Schumann. “It’s been really challenging. We have a few more wrinkles and grey hairs than we did four or five years ago.”

Suzanne and her husband Mike opened their first store in St. Paul in 1987, and since have expanded to St. Louis Park and opened a store in Naples Florida to target the snow birds who spend the winter down south.

The Schumann’s said the recession hit their Naples store first, and hard. They said it took about one year to feel the effects at their Twin Cities stores.

In a business that relies heavily on the housing market, the past few years have been a struggle all around.

“Getting people into a store like ours is the biggest challenge we have,” said owner Mike Schumann, who adds business was great before the housing bubble burst.

Mike and Suzanne said the worst of the recession is behind them, and they’re not alone.

“I do think we’re coming out of it,” says Peter Kenefick, a small business owner and spokesperson for the Grand Avenue Business Association.

As the local economy on Grand Avenue shifts, the Grand Avenue Business Association is working to gain members, including big chain stores.

“They’ve done a very good job fitting in with the feel of the neighborhood,” said Kenefick, who added the chain stores are hiring workers in the area.  Mike and Suzanne are simply happy to have survived to celebrate 25 years of business.

“It feels really good to have accomplished something like this in such challenging times together,” said Suzanne.

MINNEAPOLIS (WCCO) – Energy drinks are everywhere — and they are increasingly popular with kids.

At Skyzone, a popular trampoline park in Plymouth, Minn., which is part of a national chain, caffeinated energy drinks are sold in pre-packaged bottles, and they’re also sold as shots in slushies and other drinks.

A Twin Cities mom says her 12-year-old daughter, Mackenzie Hodge, and her friend Kelli Pehrson got sick after drinking energy shots at Skyzone.

Hodge said she was going to the trampoline park, because “it is a cool place.” Skyzone has multiple trampolines stitched together, a foam pit and a dodge ball court. But it wasn’t either of those things that left Hodge and Pehrson vomiting.

The teens said they saw posters around Skyzone advertising XS Blast Energy Drinks. The blue-bottled drinks sell for $2.50 at the concession stand.

After both teens drank one, they bought two energy shots, which were mixed into slushies. The shots sell for $1 each.

The teens said they were having fun, at first.

“I started to not feel good after I almost finished the slushie,” Hodge said.

Not long after, Hodge vomited. At about that time, Pehrson began to feel sick.

Hodge’s mother, Heather Hodge, was shocked when the girls arrived home.

“Both of their hearts were racing, their eyes were dilated; it was kind of scary,” she said.

Heather Hodge said she didn’t know the teens were able to add seemingly unlimited energy shots to their smoothies.

Hodge’s father is trained as an EMT, and he made sure the teens got lots of water.

“I felt sick after I threw up, too — probably for like another hour,” Hodge said.

Heather Hodge said she had no idea what her daughter and her friend were drinking at Skyzone.

“I have no idea what she put in her body that night,” she said. “I just know she got sick and so did her friend.”

WCCO-TV decided to see what Skyzone sells to kids. So we had kids go into Skyzone to see what drinks they could buy, and we had the drinks tested by a lab.

One of the kids shot video with a cell phone camera showing a 10-year-old girl buying the blue-bottled XS Energy drink that both Hodge and Pehrson bought and drank.

The kids found that Skyzone urges kids to add extra energy shots to their drinks. When an 11-year-old girl ordered a slushie, a staffer asked her: “Do you want an energy boost in that for an extra dollar?”

The girl accepted and was able to buy the shot.

One of the kids, a 12-year-old boy, was able to order a slushie with four shots.

We bottled up these slushies and sent them to a lab along with the XS Blast Energy drink.

The two-shot slushies had approximately 88 milligrams of caffeine. The four-shot slushie had 180 milligrams of caffeine, and the XS Blast bottle had 76 milligrams of caffeine.

A 12 ounce Mountain Dew has 55 milligrams of caffeine. Hodge and Pehrson had one bottle of XS Blast and two shots in their slushies, a total of 164 milligrams of caffeine — or almost exactly three 12 ounce Mountain Dews in about 90 minutes.

Heather Hodge is not happy about those numbers.

“Never would I have thought that my child would get hurt from drinking something in a slushie,” she said.

There are, at least, seven other countries that regulate or even ban the sale of energy drinks. The U.S. has no such restrictions. But concern has been growing in the scientific and medical communities. The American Academy of Pediatrics has called for more research in light of data from Germany and Ireland that links energy drinks to seizures and even death. The Academy of Pediatrics report notes that studies have shown adverse effects in children who have preexisting conditions or are on medication.

Ted Labuza is a professor of nutrition and food science; he reviewed the lab results.

“It’s dangerous,” Labuzza said. “There probably should be some kind of requirement that you have to be 18 or older to have this stuff.”

Labuzza said the effect of the caffeine is intensified at Skyzone because the kids are exercising, using up the glucose in their bodies.

What Hodge and Pehrson did not see in the fine print on the blue XS Blast Energy bottles was a warning that says, “Caution: Powerful: not recommended for children, pregnant or nursing women or those sensitive to caffeine.”

Heather Hodge wonders why a drink with that warning label is being sold to kids at all.

“These drinks are being marketed and promoted to our children,” she said. “I never would have thought that it would have been made available to our child at an event for children, so I would like other parents to know.”

For Hodge and Pehrson the lesson is even more basic.

“Just because the poster is big and bright, doesn’t mean it is good for you,” Hodge said.

The founder of XS Energy, David Vanderveen, gave the following statement.

“XS Energy Drinks does not sell directly to Skyzone and was not aware of their marketing or promotions practices to young children. We do not recommend that any children 12 or younger consume caffeinated products, including our energy drinks with caffeine, which is why we make caffeine free versions of our products that are clearly marked and labeled as such. We are requesting that the distributor who sells our caffeinated products to Skyzone discontinue sales immediately.”

On Tuesday afternoon, Sky Zone took action after WCCO’s investigation. In a statement, the owner of the parks in Minnesota told WCCO: “We have taken away all energy drinks and shots from our shelves. We no longer sell them.”

The decision comes almost a year after The United Food and Commercial Workers Union Local 1500 contested the 137-85 vote against unionization in June 2011. It argued that Target illegally intimidated workers for months leading up to the vote. Target denied the allegations.

A “yes” vote would have made the store Target’s first with a unionized workforce. Target has 1,700 stores, all in the U.S.

“Target completely poisoned the democratic process from day one,” said Patrick Purcell, assistant to the president of the UFCW Local 1500 in an interview with The Associated Press. “And now a judge agreed with everything we said.”

Target spokeswoman Molly Snyder said late Monday that the company “respectfully” disagrees with the decision.

“We firmly believe Target followed all the laws throughout the union’s campaign at its Valley Stream store and that the process leading up to the June 2011 election was fair and legal,” she said.

The company is evaluating the appropriate steps to take next, she said.

The Valley Stream, N.Y., store closed April 28 for “extensive renovations” and will reopen later this year, Snyder said. Target says that all eligible workers can transfer to other stores and transfer back to the Valley Stream store when it reopens.

The UFCW has contended the temporary closing came “in retaliation” for the unionization vote.

The UFCW charged that, before last year’s vote, Target barred employees from wearing pro-union buttons and said those who spoke about the union would be fired. The union also said Target circulated fliers threatening employees that the Valley Stream store would close if employees voted to unionize.

In a 40-page decision issued by Steven Davis, administrative law judge for the NRLB in New York, said Target “engaged in certain unfair labor practices.”

The ruling followed a 10-day trial earlier in the year.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

According to the USDA’s weekly crop-weather report Monday, soybean planting in Minnesota has jumped to 81 percent complete. That compares with 30 percent last year and a five-year average of 56 percent.

Canola and potato planting are nearly complete. Six days were rated suitable for fieldwork statewide for the week ending Sunday.

Despite scattered showers over the weekend, dry conditions persist in most parts of Minnesota. Topsoil moisture supplies declined from the previous week and are now rated 2 percent very short, 17 percent short, 76 adequate and 5 percent surplus.

In the first corn condition rating of the year, Minnesota’s corn crop is rated 2 percent poor, 14 percent fair, 71 percent good and 13 percent excellent.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

ST. PAUL, Minn. (WCCO) – On a quiet St. Paul street corner, the sweet sounds of guitar chords ring simple and true. Willy’s American Guitars is a music magnet, attracting players from across the spectrum. Rock to country, beginners to legends.

Nate Westgor, the store’s owner, says all kinds of music legends have visited Willy’s.

“Neil Young…the list is kind of surprising for a little place in St. Paul,” he said.

Westgor grew up listening to and playing Chicago blues. When he moved to Minnesota, he brought his love for vintage guitars along.

In 1989, he opened his store on Cleveland Avenue South and it quickly became a classic in its own rite.

The store is a popular spot whenever touring bands swing into town. But it’s also a gathering place for many local musicians and bands as they look for instruments that are hard to come by.

“Everybody who works here knows that if you pick up the phone it could be Billy Gibbons or whoever,” Westgor said.

From ZZ Top to the Boss (Bruce Springsteen) himself: for 25 years, Westgor’s been finding, trading or selling guitars to the finest players in the world.

While in his ship, Westgor could pick up an old Martin flattop that was once owned by Cheryl Crowe. Or, he could grab a six-string Kay unlike most others. The cheaply built guitar is the exact same model Springsteen first strummed as a child. Nate says the Boss bought one with S & H green stamps and asked Nate to find one for him for nostalgic reasons. Nate’s planning to surprise Bruce with it next time he’s in town.

“For $125, I’ll probably just give it to the guy,” Westgor said.

The Kay is a far cry from most other guitars on the walls at Willy’s.

Westgor has some real treasures.

“If you can see the serial number, it’s number 0018. It’s only the eighteenth solid body made,” Westgor said.

The store’s walls are lined with Fenders and Gibson’s that fetch thousands, even tens of thousands of dollars. He’s currently holding a hard to find Fender guitar for Mike Campbell, lead guitarist for Tom Petty.

“It’s $37,000 and that’s cheap, because it’s been refinished,” he said. “Otherwise it would be $100,000.”

Still, it’s largely the walk-in traffic at Willy’s American Guitars that keeps the doors open. Nate and his staff will find, fix, trade or sell guitars to anybody with an appreciation for the best.

“I’ve had people weep at guitars that they just fall in love with,” Westgor said.

And at Willy’s, you never know who’s dropping by or belting out tunes in the back room.

When WCCO stopped by, it was Phil Solem, whose band, the Rembrandts, wrote the theme for the hit TV series, “Friends” and guitarist Joey Molland, of the ’70s Liverpool group, Badfinger. They come to Willie’s a lot.

“That’s what musicians do when they’re on the road,” Molland said. “They go in places like Willy’s – it’s world famous.”

“I’ve had Lyle Lovett in here and he’s very genial,” Westgor said. “He just talks and mixes.”

But on that day, it was Joey and Phil doing the jamming, creating an irresistible moment for Westgor, with his rare Martin ukulele. They played a rocking rendition of “Sweet Little 16.”

“There’s some kind of thing about the old stuff,” Molland said. “It’s like old furniture, the way people like it. Well, musicians like instruments like that.”

And many listeners love when vintage American strings come alive in the hands of masters.

“I’m very lucky, it’s cool! It’s a great job,” Westgor said.

On a side note, Molland and Solem have formed a duo group called the Driftbenders.

They’ll be performing in concert on May 30 at the Dakota in downtown Minneapolis. And they will be playing on guitars they picked up at Willy’s.

The airline is taking heat from customers after reports that people who logged into its website with their frequent flier number were offered higher fares than those who searched anonymously.

Frequent fliers are an airline’s most-valued customers, and the idea that they were asked to pay more has rankled travelers.

Late Friday afternoon, the Transportation Department said it is “looking into the Delta pricing issue.”

Spokesman Bill Mosley refused to elaborate.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

MINNEAPOLIS (WCCO) — A Wisconsin woman is making a name for herself in the music industry with her one-of-a-kind guitar straps.

Singer Zac Brown sported Kim Gilbertson’s artwork at the Country Music Awards this year. Members of Lynyrd Skynyrd are fans too.

“This probably still has dust on it from Georgia, don’t want to wash it off,” said strap maker Kim Gilbertson.

She picked up a dusty banjo case sitting in her basement office. It’s a token of appreciation from some of her biggest fans in music.

“A gift from my friends in the Zac Brown Band,” Kim reads, “Your straps are amazing, Zac Brown.”

Each member of the band autographed it after wearing her hand-beaded buffalo guitar straps on the Country Music Awards in April.

“I want to get up and dance around the house every time I see it.  It never gets old,” Gilbertson said.

Her husband helped her start her business three years ago. Kim got her business jump started after getting on a cruise ship with 17 rock bands including the legendary rockers from Lynyrd Skynyrd.

(credit: CBS)

“The strap I did for Lynyrd Skynyrd is called Freedom Bird,” Gilbertson said.

Kim custom made straps for each of the guitarists in the band, and they were a hit.

Her guitar straps are hand-dyed and custom designed with beautiful colorful stones like amber, turquoise and sodalite and exotic leathers including buffalo, snake skin, ostrich and even stingray.

Each one takes hours and hours to make. After seeing Kim’s work, I was shocked to hear she doesn’t play guitar.

“Sombody has to make guitar straps. If I played guitar, I wouldn’t have time to make guitar straps,” Gilbertson said.

She made her first one at 17 for her now husband.

“I was given signals all through my life that this is what I should be doing,” Gilbertson said.

But she didn’t take those signals seriously until a few years ago, after her life took a dramatic turn.

Her 29-year-old brother Kent was murdered in his home by a friend’s ex-boyfriend.

“My mom called me, I fell to my knees,” she said. “It’s just horrifying.”

Kim was heartbroken. She travelled to Mexico and spent time with artists who designed jewelry and crafts.

After spending months soul searching, Kim came back to Minnesota and decided to do something she loved and something that inspired her.

“It changes your whole outlook on your life to do something you love instead of something that gets you by,” she said.

The idea to custom make and design buffalo straps started partly because of the musicians in her life. Her husband plays guitar and so did her brother Kent.

Kent was a bass guitarist in a band and his photo hangs above her work table in her studio.

“I’m pretty sure he would have loved this,” she said.

Kim named her business Ruliens Lost Muse after him. Rulien was his middle name and he is her inspiration.

“I’ll do this until I die or until I’m very old anyway,” Gilbertson said.

Kim and Jim Patterson, owners of Fantasy’s, claim the city’s zoning code is unconstitutionally vague.

The lawsuit alleges the ordinance gives city officials “unbridled discretion” to grant or deny permission to engage in constitutionally protected activity.

Kim Patterson tells KFGO-AM she hopes for an injunction allowing the store to reopen.

City Administrator Scott Huizenga says the city received the suit Thursday and he had no comment.

Fantasy’s was open for just one day in East Grand Forks before the city shut the business down. The owners previously tried to open in Grand Forks, N.D., but the store was blocked because it was located too close to a school.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

ST. PAUL (WCCO) — Scientists from around the world are in St. Paul this week for the annual Robotics and Automation Conference. The conference is not open to the public, but WCCO-TV got a peek.

You may have seen robots before, doing many jobs, from building cars to looking for bombs in buildings. But this conference is about advances in computer programming and electronic miniaturization — things that may lead to more and better robots in our daily lives.

For example, there’s a heavy-duty robot platform under development by a Colorado company called Road Narrows. This machine will be able to do many jobs where it may be too dangerous to send humans.

“Right now, we have it remotely controlled by an X-box controller,” said the robot’s operator. “It has big tires and direct drive to all the wheels. It steers with what’s called skid steering.”

This robot is designed to do mundane jobs, like packing batteries, very quickly. This one uses a simple game to demonstrate a wireless control system that senses the operator’s motions.

Robots are no longer a novelty.

“If you look at the medical industry, robots are becoming more and more commonplace, and I will say actually they are necessary tools these days, like the DaVinci robot that you can see here in this exhibit,” said University of Minnesota Computer Science and Engineering Professor Nikos Papanikolopoulos.

Also, you can expect micro-robots in the near future.

“A tiny, tiny camera that can inspect, for example, for any signs of cancer cells in your body,” said Papanikolopoulos.

Then there is Robonaut Two, a copy of the robot currently working on the international Space Station.

“You haven’t got as much manpower on the space station as you might like, adding an extra set of hands is definitely an advantage,” said Ron Diftler of the Johnson Space Center.

There is a reason Robonaut resembles the humans in space

“If your goal is to help astronauts, and work with the same tools and same interfaces, you end up needing hands that can work with those tools and interfaces, arms for you to position those hands, cameras in a head to be able to look around at the environment, eventually you evolve yourself into a humanoid-like robot,” added Diftler.

Other robots include a robotic golf greens mower, which is being developed in Indianapolis, and a hair-washing robot is being developed in Japan, complete with “scrubbing fingers.”

The state’s unemployment rate dropped .2 percent in April to 5.6 percent. That’s well below the nation’s unemployment rate of 8.1 percent.

However, state employers cut 3,100 jobs last month. Officials said that 14,700 jobs have been gained since this time last year, representing a .6 percent growth.

Manufacturing led all areas of employment with 2,200 jobs last month.

Like most retailers, Target has had the challenge of trying to find ways of luring cautious U.S. shoppers into stores amid a flood of mixed economic news that has them scrutinizing every purchase. The job and housing markets are still shaky, but falling gas prices have given consumers hope.

Target, which mixes stylish clothes and trendy decor under the same roof as toothpaste and cereal, recently has had success drawing customers into stores with two growth initiatives. It has been offering a larger selection of foods and a program it started in 2010 that gives shoppers a 5 percent discount when they pay with Target-branded credit and debit cards.

The retailer, based in Minneapolis, said profit rose 1.2 percent to $697 million, or $1.04 per share, in the quarter ended April 28. That compares with $689 million, or 99 cents per share, in the year-ago period. Excluding costs associated with its expansion into Canada next year, the per-share results would have been $1.11. Revenue rose 5.9 percent to $16.86 billion.

Results beat the profit of $1.02 per share on revenue of $16.83 billion analysts polled by FactSet were expecting.

Revenue at stores opened at least a year rose 5.3 percent, the strongest performance in six years for that period. The measure is considered a key indicator of a retailer’s health.

The strong showing came despite a weak finish to the quarter. Like most retailers, Target’s business in April was disappointing as warmer-than-usual weather earlier in the year pulled sales forward.

To boost sales, the company has teamed up with unique specialty shops to offer limited edition merchandise, from dog biscuits to platform shoes. The shops were launched earlier this month. The discounter also plans to create mini shops of Apple Inc. products in 25 of its stores this year.

Additionally, Target has teamed up with designer Todd Oldham and will be launching an exclusive collection of art supply and activity kits for children under the name Kid Made Modern for the fall.

The company also preparing to expand into Canada next year, its first expansion outside the U.S. It’s poised to begin opening the first of between 125 and 135 stores in Canada at former Zellers locations acquired from Hudson’s Bay Co.

Based on better-than-expected first-quarter results, Target raised its full-year profit guidance by 5 cents. Target now expects earnings per share to be in the range of $4.60 per share to $4.80 per share. Analysts had expected $4.28 per share.

Target’s CEO Gregg Steinhafel said during an address to investors that company officials remain “confident in our strategy” despite that they expect “the current economic recovery will continue to be slow and uneven.”

Target’s stock rose 24 cents to close at $55.32 Wednesday.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

The world’s largest medical device company was being investigated by the U.S. Department of Justice and the U.S. Attorney for the District of Massachusetts. The government first subpoenaed documents from Minneapolis-based Medtronic in October 2008.

InFuse contains a genetically engineered protein that can stimulate bone growth. In June, a medical journal alleged that Medtronic downplayed the risks of InFuse and did not disclose millions of dollars in payments to the authors who wrote the initial studies of the product. InFuse brought in most of the revenue from Medtronic’s spinal business, the company’s second-largest division, but the reports have hurt sales.

InFuse is approved for use in spinal, oral and dental graft procedures, but most of the time it was used in neck surgeries and other procedures. Physicians are allowed to use drugs and medical products off-label as they see fit, but companies cannot market their products for off-label uses. Use of InFuse in neck surgeries can lead to problems swallowing, breathing and speaking. Some patients had to have other surgeries because of those problems.

“After several years of investigation, we are pleased that the Department of Justice and the U.S. Attorney’s Office have come to the decision to close their investigation of the company related to InFuse Bone Graft,” said Chris O’Connell, executive vice president and group president of Restorative Therapies Group, which includes Medtronic’s spinal business.

A Justice Department spokeswoman declined comment.

On March 30 Medtronic agreed to pay $85 million to resolve a federal class-action lawsuit brought by a shareholder, the Minneapolis Firefighters Relief Association. The association manages pension funds for Minneapolis firefighters and their families, and it alleged Medtronic did not disclose how much of the company’s revenue from InFuse came from “off-label” uses, or uses that have not been approved by regulators, did not disclose the side effects that some of those patients were suffering, and did not disclose what the plaintiffs described as illegal marketing.

Medtronic said it did not make any misrepresentation and did nothing wrong.

Shares of Medtronic rose 7 cents to $38.22 Wednesday and were unchanged aftermarket.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

A local expert says the price may be too high. The price per share expected on Friday is now up to between $34 and $38.  Brad Allen of KC and Associates of Minneapolis has 25 years of investor relations experience, and thinks General Motors sent up some red flares this week.

“I think the actions of General Motors in deciding not to continue their paid advertising on Facebook raises some questions about the Facebook business model,” said Allen.

GM’s decision could signal to potential investors that social networking, while popular, won’t deliver the advertising revenue expected to keep the stock price attractive.  However, Allen said that doesn’t mean Friday won’t be exciting.

“I think it is going to be one of the more interesting, closely watched wild rides for an IPO in a long time. It’s got great entertainment value. I think it’s going to be instructive in terms of what the market overall is going to do with these social networking site IPOs,” said Allen.

Allen said he believes Facebook’s share values are expected to climb for a few days after the sale, before finding their base.

Target’s results illustrate that Americans are beginning to spend cautiously as economic uncertainty persists. The job and housing markets are still shaky, but falling gas prices have given shoppers hope.

Target, which became a discount darling by offering stylish clothes and trendy decor under the same roof as toothpaste and cereal, has had some success with drawing customers in with a larger selection of foods and a program it started in 2010 that offers a 5 percent discount for those who pay with Target-branded credit and debit cards.

“We’re very pleased with our first-quarter earnings, which benefited from better-than-expected sales,” Gregg Steinhafel, Target’s CEO, said in a statement.

The retailer, based in Minneapolis, earned $697 million, or $1.04 per share, in the quarter ended April 28. That compares with $689 million, or 99 cents per share, in the year-ago period. Revenue rose 5.9 percent to $16.86 billion. Results beat the earnings of $1.02 per share on revenue of $16.83 billion analysts polled by FactSet were expecting.

Revenue at stores opened at least a year rose 5.3 percent, the strongest performance in six years for that period. The measure is considered a key indicator of a retailer’s health.

Going forward, Target faces some challenges. Some shoppers have been looking online for lower prices. And rivals are copying its formula of partnering with designers.

Also, like most retailers, Target’s business in April was disappointing as warmer-than-usual weather earlier in the year pulled sales forward. But the company raised its full-year profit guidance by 5 cents. Target now expects earnings per share to be in the range of $4.60 per share to $4.80 per share. Analysts had expected $4.28 per share.

“While our outlook for the remainder of the 2012 reflects continued economic uncertainty, we are confident in our strategy,” Steinhafel said.

Target’s stock rose $1.20, or more than 2 percent, to $56.28 in pre-market trading..

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

MINNEAPOLIS (WCCO) — Minnesota’s largest airline is making changes after we uncovered frequent flyers were paying more for some plane tickets.

It was an online booking a few weeks ago that left Patrick Smith and his business partner asking why they were paying so much more.

Delta didn’t have any answers for them until we got involved.
WCCO investigates the surprising results we found when we compared prices and what Delta’s doing about it now.

Most of us will take anything that makes life a little easier in the labyrinth of air travel. Whether it’s a
a better position in the security line, priority seating or bonus miles, but paying more to fly?

Business executives Patrick Smith and Steve Lisle happened to be booking flights side-by-side from MSP to St. Louis a few weeks ago.

“We were a bit shocked and confused as to how this was happening because we were booking the exact same flight,” Smith said.

They were getting nearly a $300 difference for an economy fare. Lisle was getting the cheaper ticket and he wasn’t logged in to his Sky Miles account. They thought a call to Delta would clear things up.

“She said that’s the way their system works, that’s the way their system is set up and that was the end of the conversation,” Smith said.

“We’re like you’ve got to be kidding me, right?” Lisle added.

The men set out to see how often this happens, thinking they’ve overpaid for who knows how long.

We were there when they checked five trips with the same dates and the same flight numbers.

This time, Smith’s not logged into his frequent flyer plan.
They found from MSP to LAX a $124 difference for economy fare and more than $1,000 separated the first-class fare.

The same thing happened for two more trips. So in three-out-of-five tests, the frequent flyer would be paying more. The other times the prices were the same.

“We haven’t found one yet where the frequent flyer gets a better price,” Lisle said.

We tried three cards in tests of our own. Again, we found without the card in one trip of the three, it was cheaper. There was a $168 difference. When we called Delta they blamed the price differences on a computer problem they’ve now fixed.
In a statement, Paul Skrbec, a Delta spokesperson said, “The differences of how information was presented between logged in and non-logged in customers has been resolved. We apologize to our customers for any inconvenience this caused while we worked to resolve the issue.”

The company couldn’t tell us how long it went on and said they wouldn’t be notifying customers of the problem but if travelers call, they will look into it on a case-by-case basis.

Passengers who thought they were getting something for all they do spend, now are considering their options after something Delta calls a computer glitch — that may cost the airline in the end.

“I am considering taking my airline business elsewhere and working with a different airline,” Smith said.

The founder of a consumer website called airfarewatchdog.com said he wasn’t surprised by this story. He said he hears about computer problems with the airlines all the time.

George Hobica says in most cases, frequent-flyer programs are a great way to get rewarded for being a loyal customer, but he says passengers shouldn’t buy stuff without going to the online shopping mall of an airline first. He says there are often extra-mile rewards when you spend money on anything from vases to aspirin.

If you’re looking for more information, check out airfarewatchdog.com or evreward.com.

MINNEAPOLIS (WCCO) — A bar claiming to be Minnesota’s oldest might be closing for good, soon.

The Barrel House, which opened in Red Wing in the 1880s, reportedly owes the state money. However, it’s not the state that’s taking issue; the city of Red Wing is.

Red Wing’s City Clerk, Kathy Johnson, said the bar’s been operating without a food and beverage license since last summer. The state has now initiated civil action to get the bar shutdown, until it pays and gets that required license.

“It’s always unfortunate,” Johnson said. “Certainly, the city doesn’t want to do that. We hope the owner is able to get his affairs in order and get proper licensing from the state and continue doing business.”

Barrel House owner Matthew Parker owes the state $1,600 for this year’s food and beverage license. The amount includes several fines and fees.

Johnson said Parker told her he’d pay for the license. But so far, he hasn’t.

“Up till this point, he hasn’t made that payment,” Johnson said.

As a result of that, the city might also take action against the bar’s liquor license. Council members could impose a fine, suspend the license or even revoke it at a meeting in a month.

Parker says his sales are down. Business in Red Wing has been slow, and he’s gotten behind in paying his bills.

Moreover, Parker is also accused of buying liquor from another retailer, something that’s illegal and for which he’s been assessed for a $500 fine.

Local bar owner John Juenemann, of The Roxx, says he understands Parker’s dilemma.

“Totally understand where he’s coming from, cause I feel the same way,” he said.

Juenemann said a half-dozen bars have closed in the last couple years, and those bars are just down the street from Parker’s bar.

“He’s probably stealing from Peter to pay Paul,” he said. “One month you might have to skip a bill and pay something that’s more priority. The next month, catch up on that. It’s playing a game of catch up, that’s what it is.”

Parker says he plans to pay the bill in the next few days, which might keep closing time from becoming permanent.

In documents made public Tuesday, the nation’s highest court denied Petters’ request to review his 2009 conviction on charges he orchestrated a $3.65 billion Ponzi scheme.

This means the lower court decision upholding his conviction will stand.

Petters’ is currently serving a 50-year sentence at a federal prison in Leavenworth, Kan. He continues to proclaim his innocence.

His attorneys had argued on appeal that the trial judge barred them from presenting evidence about the criminal past of key prosecution witness Larry Reynolds — who they say was the real mastermind of the scheme.

They also said Petters’ sentence was disproportionate to those of his counterparts.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

MINNEAPOLIS (AP) — Arctic Cat Inc. said Tuesday its fiscal fourth-quarter loss narrowed on a steep jump in demand for all-terrain vehicles.

The Minneapolis-based company’s results beat Wall Street predictions, but it also issued lower-than-expected profit and sales predictions for the current fiscal year. Its shares tumbled more than 14 percent in morning trading.

For the quarter ended March 31, Arctic Cat posted a net loss of $6.2 million, or 49 cents per share, compared with a net loss of $9.6 million, or 52 cents per share, a year earlier.

The latest results are based on about 13.7 million outstanding shares, while those of the year-ago period are based on about 18.3 million shares.

Net sales jumped 34 percent to $98.5 million from $73.5 million, as ATV sales soared 58 percent to $75.8 million on strong dealer demand for a new off-road vehicle model.

Analysts, on average, expected a loss of 55 cents per share on $92.7 million in revenue, according to a FactSet poll.

The increase in ATV sales was partially offset by losses related to snowmobile sales, which grew to a negative $6.8 million from a negative $4.5 million in the year-ago quarter, mainly as a result of an increase in sales incentives.

Sales of parts, garments and accessories fell slightly to $29.5 million from $29.9 million.

Due to the seasonality of its businesses, Arctic Cat said it typically reports weaker results for its first and fourth fiscal quarters than it does for its second and third fiscal quarters.

For the full fiscal year 2012, Arctic Cat said its net income more than doubled to $29.9 million, or $1.72 per share, from $13 million, or 70 cents per share, in fiscal 2011. Revenue jumped to $585.3 million from $464.7 million.

For the current fiscal year, Arctic Cat said it expects industry wide North American sales of ATVs to be flat to down 5 percent and industry wide North American snowmobile sales to be flat to up 2 percent.

Based on those assumptions, Arctic Cat said it expects to post a fiscal 2013 profit of $2.40 to $2.50 per share on $631 million to $650 million in sales.

Analysts polled by FactSet expect a profit of $2.70 per share on $659.8 million in sales.

Arctic Cat shares dropped $6.03, or 14.3 percent, to $36.28 in morning trading. Its shares have fallen 24 percent since hitting a 52-week high of $47.46 in mid-April. Their low for the past year was $11.55 per share last June.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

MINNEAPOLIS (WCCO) – Most of us are lucky to get two weeks’ pay if we get fired.

But when a CEO gets the axe, or resigns to avoid being fired, he or she often walks away with millions in severance.

Why do failed CEOs get paid so much to leave?

Best Buy’s former CEO Brian Dunn resigned after the board started investigating him for having an inappropriate relationship with an employee.

He got $6.6 million in his severance package, according to the company, including a severance payment of $2.85 million.

Larry Morgan, owner of Orion HR Group, explains this head-scratching scenario.

“It’s a really complex issue and unfortunately there isn’t an answer that’s gonna make anyone happy,” said Morgan.

Morgan is a longtime compensation analyst for major corporations, including Lawson Software, National Car Rental, and Best Buy.

Morgan was commenting generally about compensation packages, and not specifically about the package offered to Brian Dunn, because of his prior relationship with the company.

According to Morgan, the most obvious reason that CEOs walk away with big settlements is because these exit deals are laid out in their initial employment contracts.

Why aren’t the companies driving a harder bargain, why are they allowing these things in there?

“Often they do drive a hard bargain, but in exchange for getting the top talent to drive the company forward, they need to pay large dollars,” said Morgan.

And severance packages are part of that deal.

Most CEOs have a severance deal if they’re dismissed without cause and no severance if they’re fired for cause, but often times the exit is negotiated so both sides can save face.

But companies also like having these severance agreements.

“They want to avoid public scrutiny, they want to avoid prolonged legal action, they want to get back to the business at hand,” said Morgan.

A lawsuit can air a company’s dirty laundry, and without a clear separation agreement a CEO could theoretically take all his or her personal knowledge of confidential company information to a competitor.

Finally, shareholders benefit from these severance payouts as well.

“If there’s a prolonged or protracted legal action, they’re gonna end up hurt in the long run,” said Morgan.

Take the Best Buy/Brian Dunn package. If a legal battle or a prolonged fight led to a drop of two cents in the company’s share price, that would cost Best Buy shareholders a total of $6.84 million dollars. Just a two cent drop!

“It’s really in everyone’s interest, but everyone has a lot of heartburn around it,” said Morgan.

From Best Buy
Dunn’s exit package included:

• Previously earned FY2012 bonus: $1,140,000

• Previously awarded and reported restricted stock grants of 131,876 shares, valued at close of business on Friday, May 11, 2012, ($19.28 per share), totaling $2,542,569

• Severance payment of $2,850,000

• Compensation for unused vacation: $106,742

Using the May 11, 2012, stock price for calculation, the estimated total value of the severance package is $6,639,311.

RICHFIELD, Minn. (WCCO/AP) – Disgraced Best Buy CEO Brian Dunn will receive a $6.6 million severance package.

Dunn will receive a compensation package also includes includes a 2012 bonus of $1.1 million, stock grants of $2.5 million, a severance payment of $2.9 million and more than $100,000 for unused vacation.

With 167,000 employees under his watch, Brian Dunn wasn’t only Best Buy’s CEO, he was their leader.

He was the man hailed with turning the struggling electronics retailer around.

But when employees and the company’s board of directors learned of his inappropriate relationship with a 29-year-old female subordinate, Dunn resigned and the board’s internal investigation began.

One month after stepping aside, Best Buy’s audit committee released a three-page report detailing the alleged misconduct.

It concludes that Dunn violated company policy by “engaging in an extremely close personal relationship with a female employee that negatively impacted the work environment.”

The audit also says Dunn use “extremely poor judgment and a lack of professionalism,” but did not misuse company resources.

Details of the internal audit also reveal Dunn’s apparent obsession with the woman, calling or texting her 224 times over a nine-day span in which he traveled overseas on business trips.

The report says that the calls had no identifiable business purpose.

Dunn is also alleged to have provided the woman with tickets to at least seven sporting events and concerts, $600 of his own cash, and engaged in numerous social meetings outside the office including lunches and drinking engagements both during the week and on weekends.

St. Thomas marketing professor, David Brennan, says that restoring the confidence of customers, stockholders and employees is crucial to Best Buy.

“What this situation shows is that it clears the air of this particular situation, so that some of that uncertainty is going to be removed,” said Brennan.

The committee’s report further shows that the relationship created friction and disruption within the workplace and damaged employee morale.

According to the woman’s supervisor, the relationship with CEO Dunn impeded efforts to supervise the female employee.

When Best Buy founder and board chairman Richard Schulze was told of the affair last December, he confronted Dunn, but apparently did nothing about it.

Not reporting the complaint of employees to the board’s audit committee was a violation of company policy.

For that miscalculation, Schulze decided to step down as chairman of the board.

Schulze’s resignation is effective June 21 at the company’s annual meeting. He will become chairman emeritus, an honorary position, and serve out his term as director through June 2013.

He will be replaced at Best Buy by Hatim Tyabji, who is currently chairman of Best Buy’s audit committee and CEO of Bytemobile Inc., a provider of video optimization and traffic management systems for mobile network operators..

“This had to be devastating for him,” said Brennan. “Even more so, not following rules, regulations and policies that he helped set in place a decade ago.”

Schulze created the company by opening his first store called the Sound of Music in St. Paul, Minn., in 1966. He was CEO for more than 30 years, overseeing it through decades of steady growth before relinquishing that title in 2002.

R.J. Hottovy, a Morningstar analyst that follows Best Buy, said Schulze’s departure might be good for the company as it seeks a “fresh start.” It also may open up the door for a takeover offer, he said, since getting Schulze to part with his shares has been a barrier for private equity companies. Schulze currently owns 20 percent of Best Buy’s shares.

“Schulze has been influential in building the business from the beginning,” Hottovy said. “That said, the company has struggled to keep its relevance in today’s consumer electronics retail environment.”

On the news of the departure, shares closed up 28 cents at $19.56 on Monday after earlier sinking to $19.02 — the lowest they’ve been in more than three years.

(TM and © Copyright 2012 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2012 CBS Broadcasting Inc. Used under license. All Rights Reserved.This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

MINNEAPOLIS (WCCO) – Best Buy founder Richard Schulze is stepping down as chairman after an investigation found that he knew that the CEO was having a relationship with a female employee and did not alert the audit committee.

The company’s board of directors announced they had elected Hatim Tyabji to serve as chairman of the company following their annual meeting this June. Tyabji has been on the board since 1998.

Dunn announced he was leaving the company last month, prior to the completion of an internal investigation. Dunn was a 28-year Best Buy veteran who had been CEO since 2009.

College of Saint Benedict and Saint John’s University professor Louis Johnston said it was both surprising to see the founder step down from the company he created and also not surprising “given that the investigation into Brian Dunn is getting deeper and wider.”

The board released the results of the investigation, which says Dunn violated company policy by carrying on a relationship with an employee. The report says, however, that there was no misuse of company resources.

The investigation determined that Schulze acted inappropriately by failing to bring the relationship to the board’s audit committee last year, when he was first made aware of the allegations.

Johnston commented on where the company is currently.

“They’ve been doing about as well as can be expected. They have a situation on their hands that’s very difficult. They’re fighting off Amazon, and the online retailers on one hand, and Wal Mart and Target on the other are eating into their situation, and so they really need some radical changes. And they’re doing the best they can to kinda keep the ship afloat,” said Johnston. “I think it will actually help in the sense that one of the things people out in the market are looking for is true reform. They’re looking to make sure that this investigation is thorough, that it is clean, and that there really are gonna be changes at the company. And with Schulze’s stepping down that’s a clear sign that this is gonna be the case.”

MINNEAPOLIS (WCCO) – Saturday was an ideal day to head over to the farmers market.

The Mill City Farmers Market, located on the Chicago Mall between the Guthrie Theater and Mill City Museum, opened up for the season.

“We are all local, sustainable or organic,” said Brenda Langton, the founder of the Mill City Farmers Market. “And [the foods] are more nutritious and they are fresher than you could get on most grocery shelves.”

Langton she said because of the early spring, the market has “tons” of produce — lettuce, mushrooms and, even, arugula.

“It is a premium product,” she said.

Besides fresh fruits and veggies, Mill City also honored mothers on Mother’s Day weekend. Children planted flowers to give to their moms.

Organizers said the whole idea behind the market is to promote Minnesota farmers and healthy eating.

A group of protestors gathered at the Wells Fargo Bank at 6th and Marquette in Mineapolis, threatening to close their accounts due to the bank’s alleged failure to restart money transfers to their families back home.

Ibrahim Nsur of Minneapolis said he was part of the delegation trying to solve the problem earlier this year, but he was treated with disrespect by bank executives.

“When they sat down with us, they told us they are not interested in doing this business,” said Nsur. “They did not tell us the real reason.”

However, Wells Fargo regional spokesperson Peggy Gunn says the decision to stop transfers to Somali is due to U.S. Federal Government regulations, and that this had been explained to their customers.

Gunn, who did not wish to be recorded, told WCCO Radio the bank remains active and supportive in the Somali community.

Ibrahim said he does not see any willingness by the bank to help them.

“We sat down with them,” said Nsur. “They were disrespectful to us, and kept ignoring us.”

He also said negotiations have begun with U.S. Bank, which he claims is more eager to find a solution for its Somali customers.

Shares of the department store chain fell more than 2 percent in premarket trading.

Kohl’s reported net income of $154 million, or 63 cents per share, for the three months ended April 28 compared with $201 million, or 69 cents per share, during the same period a year earlier.

The performance still beat the 60 cents per share that analysts polled by FactSet expected.

Revenue increased 2 percent to $4.24 billion from $4.16 billion. Wall Street expected $4.25 billion.

Revenue at stores open at least a year edged up 0.2 percent. This metric is a key indicator of a retailer’s health because it excludes results from stores recently opened or closed.

Kohl’s, which is based in Menomonee Falls, Wis., also said that it declared a quarterly dividend of 32 cents per share on Wednesday. The dividend will be paid on June 27 to shareholders of record on June 6.

The company anticipates second-quarter earnings of 96 cents to $1.02 per share. The outlook assumes a revenue increase of 2 percent to 3 percent, with revenue at stores open at least a year flat to up 1 percent. The revenue growth forecast implies revenue of $4.34 billion to $4.38 billion.

Analysts predict earnings of $1.13 per share on revenue of $4.38 billion.

Kohl’s reaffirmed its guidance for fiscal 2012 earnings of $4.75 per share. Analysts, on average, expect earnings of $4.74 per share.

Kohl’s shares fell $1.16, or 2.3 percent, to $49.70 in premarket trading.

The company had 1,134 stores in 49 states at quarter’s end.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Fargo-based Fantasy’s sells lingerie, costumes and adult toys. Owners Jim and Kim Patterson wanted to open in Grand Forks in a building a block away from an elementary school, but city leaders in response restricted where sexually-oriented businesses could operate. The move came after neighbors of the store complained, and a Facebook site surfaced opposing the location.

The Pattersons on Monday quietly opened their East Grand Forks location, which is within a few blocks of a school and a church. City officials shut down the store a day later, and after an inspection Wednesday told the Pattersons they would need to move from their commercial district site to an industrial district.

“On our observation, there were various devices and aides, if you will, that can only be used in our interpretation for one purpose and that was a sexually oriented manner,” East Grand Forks City Administrator Scott Huizenga told WDAZ-TV. Sexually-oriented businesses can operate only in industrial zones in East Grand Forks.

Jim Patterson told the Grand Forks Herald that city officials did not take issue with the clothing or costumes in Fantasy’s but with the other products, which Kim Patterson has said are sold by other retailers.

“That’s one of the biggest products we sell,” Jim Patterson said. “It’s necklaces, hairpieces, plates, silverware, stuff you see in the bars that the girls use for the bachelorette parties.”

The Pattersons are waiting for legal advice from their lawyers.

“We’re leaving all of our options open,” Jim Patterson said.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

MINNEAPOLIS (WCCO) – It may be the most overwhelming aisle of your local store: 352 distinct types or sizes of toothpaste are currently on the market, according to the Wall Street Journal.

Americans spent $1.6 billion on toothpaste last year, and many of those products had specialized claims about enhanced performance. But does whitening toothpaste really whiten your teeth?

“No, it removes stains,” said Lisa Ahmann, a clinical assistant professor of dental hygiene at University of Minnesota School of Dentistry.

She said whitening toothpastes have a peroxide that helps whiten teeth and a stronger abrasive than regular toothpaste.

According to the American Dental Association (ADA), all toothpastes help remove surface stain through the action of mild abrasives. But “’whitening’ toothpastes in the ADA Seal of Acceptance program have special chemical or polishing agents that provide additional stain removal effectiveness.”

These are not bleaches, however, and they do not change the color of teeth. Whitening toothpastes will have ingredients like calcium peroxide, which to help whiten your teeth by removing stains.

But there is a new product, from Colgate called Optic White. It promises whiter teeth in one week.

“That has hydrogen peroxide, that’s the same stuff in whitening trays,” Ahmann said.

But products like whitening strips and professional whitening gels stay in contact with teeth for hours. Independent dentists are still researching how effective hydrogen peroxide is in toothpaste.

So what about tartar control? — another huge category that is often misunderstood in toothpaste.

“It doesn’t remove existing tartar, but it can break up the pellicle the tartar attaches to,” Ahmann said.

Various ingredients get the job done, including chemical compounds like pyrophosphates and zinc citrate. Some tartar control toothpastes contain an antibiotic called triclosan, which kills some of the bacteria in the mouth.

“They work,” Ahmann says.

The ADA offers a seal of approval for more than 50 different toothpastes; Ahmann said the seal lets you know the claims meet a minimum standard.

“It’s a ton of testing and you have to retest to maintain the seal,” she said.

Not having the seal doesn’t mean the claims are untrue, it might mean the manufacturer decided to not try to get the seal.

When it comes to the biggest factor in toothpaste, as far as dental health is concerned, Ahmann didn’t hesitate to answer: brushing.

“You don’t even need to use a toothpaste if you brush your teeth,” she said, arguing that simply water alone will get the job done for most people.

EDINA, Minn. (WCCO) — With all the service members coming back from war without jobs, efforts are underway to help them.

A Minnesota company, ReCon Robotics of Edina, spoke at a senate meeting in Washington Wednesday.

More than a third of the company’s employees have military backgrounds. We talked with Sen. Amy Klobuchar and one of the heads of ReCon from Washington.

“First of all we have to give soldiers more credit for the skills that they learn when they’re overseas,” said Klobuchar.

“Members of the military bring to us a ready-made skill set that’s directly transferrable from what they’ve done in the military to our civilian business,” said Patrick McKinney, COO of ReCon.

The meeting was part of a larger educational effort, trying to get employers to think about how veterans can help their business.