As its rivals plan aggressive discounts on flat-panel TVs and round the clock hours to lure in recession-weary shoppers, Kmart is sticking with what worked, even if it is what worked 40 years ago.
 
Chief Marketing Officer Mark Snyder, who joined the company last year just before the holiday season, said the chain had no major new initiatives this year but plans to "build on the successes" of 2008. 
 
In other words, a fresh spin on layaway plans and Blue Light Specials, and of course the deep discount days that are a retailing standard this time of year.
 
One new offering includes a Christmas club, a staple of 1950s household budgeting that only deepens the impression that Kmart is rushing into its past to find the future.
 
The goal is to help households crushed by mounting debt to "leverage their cash," or in other words, pay when credit is no longer available, he told us.
 
The chain may be onto something.  Kmart's same-store sales for the quarter ended Oct. 31 rose 0.5 percent, only the second quarterly increase it has posted since 2001.
 
A recent visit to a Pennsylvania Kmart did not turn up any blaring lights or calls of "attention Kmart shoppers."  It did show that some elements of Kmart's past are more easily forgotten.
 
Asked by this reporter, the outgoing and helpful staff tried to locate Martha Stewart-branded housewares, possibly the last as their long-standing partnership ends this year. 
 
Another member of staff joined the hunt until a manager reminded everyone that Martha Stewart's final inventory was sold out the week before, not with blue lights but helped by clearance prices. Like those found at Wal-Mart.

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It looks like food investors may have plenty to be thankful for when they sit down to their Thanksgiving tables later this week.

Campbell's first quarter profit came in well ahead of analysts' expectations.  The soup maker also said its full-year profit and sales should be stronger than it had expected.  In September, Campbell forecast adjusted earnings per share growth of 5 percent to 7 percent.  Now, just one quarter into the year, it expects adjusted earnings per share to jump 9 percent to 11 percent.

Tyson Foods, the world's largest meat producer, posted a net loss.  But excluding an impairment charge it earned 28 cents per share, topping analysts' expectations by 2 cents.  Revenue came in a little bit higher than last year, and well ahead of analysts' projections.

We'll hear more about food tomorrow, when Heinz and Hormel issue their quarterly reports.

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"Black Friday" deals may not signal retail comeback

Michael Jackson's glove sells for $350,000 at auction

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Some of Taubman's malls will also dole out free breakfast for early morning shoppers, spokeswoman Karen Mac Donald said.  Other goodies, such as free early morning parking at centers where shoppers usually have to pay (like the Beverly Center in Los Angeles), are also planned.

The tokens of appreciation for retail workers are part of Taubman's "The Year of the Merchant" program, which kicked off at the beginning of 2009, Mac Donald said.
 
(Photo: Reuters)

Check out

American Express found that 10 percent of consumers actually expect to spend more on holiday gifts versus last year, while 43 percent plan to spend about the same as they did in 2008.
 
The third monthly online American Express Spending & Saving Tracker asked 2,011 adults about the economy, what they plan to spend on and what motivates them to spend or save.
 
When given the choice, only 13 percent said they have a "gloomy" attitude going into the holiday season, while 41 percent said they were "joyful."

Most were feeling a bit generous, with 63 percent planning on some type of charitable giving over the holidays, even though 54 percent said that they would be cutting back on how many gifts they buy due to the economy.

So, who shouldn't expect a gift this year?  If consumers have to shut someone out of their gift giving to save, co-workers are the first to go, then service workers such as postal carriers, hair and nail stylists, followed by extended family and friends.

Most consumers, 79 percent, said they plan to use the Internet to help out with holiday shopping, whether that's actually buying or just researching what to shop for.  Only 45 percent said they would buy online.
 
The hot items? Gift cards, clothing and accessories, and then toys and games.
 
Shoppers said they expect to spend the most on techie gifts, followed by gift cards.
 
Seventy percent said discounts would be the main driver to get them to buy within the next 30 days. 
 
Also in the basket:

Lowe's profit falls 30 percent

U.S. retail sales rose faster than expected in October

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At Checkout, More Ways to Avoid Cash or Plastic (New York TImes)

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"I personally don't use long last lipstick," Executive Chairman William Lauder joked.
 
To get to the heart of the matter, he called upon Clinique President Lynne Greene, who said she loves wearing the lipstick in question.  The dryness of the lipstick actually helps give the benefit of lasting long, she said.

Apparently, that wasn't enough advice.  A few minutes later, Evelyn Lauder -- William's mother and a senior corporate vice president at the company -- addressed the shareholder and the crowd with a little more of a lipstick lesson.

Remember, Evelyn Lauder has a bit of experience in the business, working for the company her mother-in-law started.  She even helped to create and name the Clinique brand, which debuted in 1968.

"All long-lasting lipsticks," she said, "have dry formulas in order to keep them that way.  However, if you do experience it, you should use a lip gloss over it.  And if you're over 40 years old, only use it in the center of your mouth, otherwise it may go up into the tiny little lines.  Now you know I started behind the counter."

"Who says you need to go onto the Clinique web site to get makeup lessons from an expert?" William Lauder joked.
 
No word on whether Clinique Long Last lipstick was among the goodies distributed in gift bags after the short morning meeting adjourned.

(Reuters photo)

Check Out

More people may be preparing meals at home, but notice the word is preparing, not cooking.

Americans have been eating at home more often since the beginning of the decade, but in 2008 their microwaves did much of the work, according to NPD Group's 24th annual report on eating patterns in America.
 
"Microwaving has been flat for two decades, but it increased last year as Americans found a way to eat at home and not cook," said Harry Balzer, chief industry analyst at NPD Group.
 
About 20 percent of all meals prepared in U.S. homes from 1990 to 2007 involved using a microwave. Last year, such usage rose ten percent, the market research company found.
 
Stoves are still the most popular cooking appliance, but they've lost some ground.  The percent of what NPD calls main meals prepared on a stove top dropped to 33 percent in 2009 from 52 percent back in 1985.
 
"I've observed America's eating patterns in good and bad economies, and the constant is that there is no recession in eating -- and Americans don't want to cook what they eat," Balzer said.
 
Also in the basket:
 
Wal-Mart profit rises, but holiday view light
 
Kohl's beats Street but outlook falls short

Activision says "Call of Duty" sets launch record

Picking Apart Bamboo Couture (WSJ)

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Slightly more women (58 percent) than men (53 percent) rated the economy as poor. Overall, 56 percent called the economy poor, up from 52 percent in September.
 
"The Monitor has always shown that women tend to be less optimistic than men about the economy and their finances," said Julie Loeger, senior vice president of brand and product management for Discover.  "But the record jump in the number of women rating the economy as poor and the pessimism over the current state of their finances may indicate a weak holiday shopping season ahead."

The Discover U.S. Spending Monitor is based on interviews with 8,200 U.S. adults conducted thoughout October.

Nearly 63 percent of 5,000 consumers surveyed toward the end October plan to spend less on holiday gifts this year. That's in line with last year's projections, and we all know how the winter of 2008 turned out.

For the seventh month in a row less than half of consumers said they expected to have money left over after paying their monthly bills. Just 44 percent said they expected to have money left over, down 3 points from September.

Meanwhile, the U.S. Agriculture Department said more Americans than ever are receiving food stamp assistance, while personal spending fell 0.5 percent in September.
 
"Consumers simply don't seem to have the economic or financial confidence right now to reverse course, which is not good news for retailers," said Loeger.

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There may be fewer passengers traveling these days, but those that are seem to be willing to buy.  Still, the market is a volatile one, Estee Lauder CEO Fabrizio Freda told Reuters.

Sales at duty free shops boost the bottom line since they are more profitable than typical sales.  That's partly because companies spend little, if anything, to advertise.  Shoppers already know the brands from traditional outlets and marketing.

And now, for a little duty free comedy ...

Sure, we should have expected that.  After all, the cosmetics maker said two weeks ago that its fiscal first-quarter profit would be "significantly higher than previous guidance" due to a variety of factors.

Apparently Estee Lauder management, including CEO Fabrizio Freda, has a different understanding of "significantly" than Wall Street.

The company's old forecast was 23 to 30 cents per share.  So, after the brighter tone came on Oct. 16, analysts' average forecast ticked up from 25 cents to 34 cents, based on Thomson Reuters I/B/E/S data.

How did Estee Lauder do?  Try 85 cents.  That's what the company posted on Friday.

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Walmart.com glitch keeps shoppers from checking out

Drop the Halloween Mask! You Might Scare Somebody (NY Times)

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Falk's company sells everything from Kleenex tissues --- which aren't seeing such hot sales as people have fewer sniffles --- to N95 respirator masks, which are a top seller right now.

Falk, who spoke with Reuters following his company's better-than-expected results, said he got his seasonal flu shot at a store while he was in Wisconsin.  Though, he said he does not plan to get an H1N1 shot because the vaccine is being targeted at pregnant women (he's not in that category) and people 24 and under (that's right, he's not on that list, either).

"We don't consider an H1N1 shot to be an executive perk," Falk joked.

Kimberly-Clark is seeing growth in its health care business spurred by flu-related demand for masks, gloves and items such as hospital gowns.  Falk said he's even heard of people keeping a mask at home, "just in case."

"We've got a pretty good backorder," Falk said of masks.

Rival mask maker 3M, meanwhile, said it was investing $20 million to add additional respirator production capability in Singapore.

"Our factories have been running flat out since May of this year to keep up with demand," 3M's Chief Finance Officer Pat Campbell said during a call to discuss the company's latest results.  "And we see back orders well beyond the end of the year."

(Additional reporting by James Kelleher)

(Reuters photo)