Sarah Coffey

Check out shoppers with fresh credit loosening their purse strings a bit - at least for now.

"There's no question there's some pent-up demand," as over the past three months consumers saved and paid off their credit cards bills instead of spending, said Stifel Nicolaus retail analyst Richard Jaffe. 

Now, "the credit cards are reloaded and the consumer has the ability to spend" on both holiday gifts and personal items such as clothes they had been holding off from buying, amid rising food and gas prices, falling housing values and shrinking credit availability.

Still, many leading U.S. retailers reported steep drops in November sales at stores open more than a year, as bargain seekers at the beginning of the holiday shopping season were unable to save a very tough month.

When those holiday promotions taper off, consumers with lingering credit card debt from holiday gift-giving and less discounted items will likely put the brakes on spending yet again, says Jaffe.

Also in the basket:

Safeway to cut costs, prices in 2009; shares rise (Reuters)

Rite Aid posts flat November same-store sales (Reuters)

Mattel wins court ban of MGA's Bratz dolls (Reuters)

(Photo/Reuters)

With foreclosures of homes on the rise, so are stories of pet abandonment, but pet food maker Del Monte says sales of dog and cat food and treats hasn't been affected.

The New Haven Register in Connecticut reported on Nov. 23 of a dramatic rise in pet abandonment at shelters across the city, as adjustable mortgage rate resets make mortgages on many homes unaffordable, and rising food costs make paying for pet food and upkeep unrealistic.

And on Nov. 16, The Boston Globe said a record number of cats are being dropped off at local animal shelters. A Humane Society official attributed the record numbers to the faltering economy and people losing their homes. 

Higher animal abandonments have hit Canada as well, according to a Nov. 7 article in the Albuquerque Journal (subscription required).

Still, pet food company Del Monte, maker of Meow Mix cat food and dog treats like Meaty Bone and Pupperoni,  says they haven't seen a meaningful drop in pet food sales in recent months.

"We have not seen any hard data that would indicate household pet ownership to be declining, and so anecdotally we've heard about pets being left in foreclosed homes and that sort of thing, but we have not seen any data or seen any evidence with our customers that that really is a problem," Del Monte Chief Executive Richard Wolford said on a call with analysts."

Whether they're in a family home or living in an animal shelter, dogs and cats still have to eat.

(Photo/Reuters)

Luxury lives! At least when it's on sale.

Today's Manolo Blahnik sample sale brought out New York fashionistas looking for fabulous shoes on the cheap, and given the woeful state of the economy this year, they need it more than ever. The sale is typically held twice a year and is not widely publicized. 

Shoes that typically priced from $545 to over $1150 for tall suede boots were on sale from $100 for a simple pair of pumps to $400 for over-the-knee boots. Manolo Blahnik sends out an e-mail to their best customers and press friends, such as Vogue editors, who then tell their friends, and thus the word gets out.

Most shoppers at the sale told us they will still buy luxury items like expensive shoes. But they are being more cautious and buying less these days.

Cynthia Tabet of New York City said she buys new Manolos "every year," but this year bought fewer pairs. "You're tempted, but not as much" since the stock market tanked, she said.  Tabet's still on the fence about holiday purchases and is waiting to see if the economy picks up before buying.

Picking through the piles of Manolos, Maria Jaqez of NYC also said she was "more cautious than usual," but expected her holiday shopping to be "the same as last year."

Throwing caution to the wind was Tina Rich, also of NYC. The Cartier employee said she didn't care about the ups and down of the stock market. "I'm just a little person, it doesn't effect me!" she said cheerily, as she scooped up several pairs of pumps. "I wear Manolo's and Dolce, that's it."

(Photo/Reuters)

Circuit City employees say they're not surprised the struggling retailer is closing 155 stores in an attempt to remain solvent amid deteriorating liquidity and tighter credit conditions from vendors.

Employees interviewed by Reuters correspondent Chelsea Emery at Circuit City's Paramus Towne Square, New Jersey store seemed resigned to difficut times ahead. The store is not among the 155 slated to close and employees who work there declined to give their last names.

"People thought (this news) was coming with the economy. It's not a big surprise. They've (corporate headquarters) got to do what they've got to do. They're not going to get bailed out like Lehman Brothers," said television salesman Marko. "People aren't going to buy plasma TVs when they can't buy milk ... We (employees) are trying to stay positive as we can."

David, a supervisor for Firedog, said the store had a meeting this morning about the closures. "We're all nervous," he said, adding that employees had been told earlier in the year that any store closures would happen much later, even into January. "This (news today about 155 stores) is unexpected."

Employees "are all nervous. We're trying to fight to stay open," computer salesman Anthony said.

(Photo/Reuters)

Check Out Burger King missing Wall Street views but saying sales grew 12 percent worldwide, with sales at restaurants open at least a year up 3 percent in the United States and Canada.

Lower-cost fast-food chains have benefited in the economic downturn, while higher-priced sit-down restaurant chains like Applebee's and Chili's Grill & Bar have been hit particularly hard, as consumers slash discretionary spending to adjust to falling home prices, a credit crunch and higher food and fuel costs.

The home of the Whopper hamburger has been sprucing up aging restaurants, extending hours and adding value menu items to better compete with rivals like McDonald's, Taco Bell, Pizza Hut and KFC.

Burger King maintained its forecast of opening 350 to 400 new restaurants next year, a sign it is hopeful hungry people in a hurry will continue to order items like the 11,500-store chain's flame-broiled burgers, Big Fish sandwich and newer offerings like its Angus beef burger.

Also in the basket:

L'Oreal shares fall on sales warning (Reuters)

Puma lifts '08 sales outlook, mum on profit (Reuters)

Who shrank the economy? Food prices dent U.S. growth (Reuters)

(Photo/Reuters)

(Added details on restaurant chains)

Check Out Staples saying its third-quarter profit will top Wall Street estimates and backing its long-term forecast, all in the midst of a global economic crisis.

Staples is holding a conference today with investors. They will no doubt be wondering how the world's largest office supply retailer plans to convince small business owners and consumers to buy more office supplies in a troubled economy that has made them cut back buying computers, printers and copiers in favor of smaller-ticket items like ink, toner and paper.

Staples said yesterday it plans to open only 75 stores in North America next year, down from a planned 110, but expected to report third-quarter adjusted earnings of 41 cents to 42 cents per share. That's ahead of analysts' average expectation of 40 cents per share.

Staples also raised its long-term operating margin goal for the total company to 9 percent, up from the 6.5 percent margin it had in 2007, including the results from its newly acquired Corporate Express business.

On Wednesday, Office Depot posted a quarterly loss and said it would delay new store openings in the face of poor sales, as customers pared back purchases in the face of a looming global recession. OfficeMax is set to report its third-quarter results Friday.

Also in the basket:

FEATURE-U.S. families brace for holidays without a home (Reuters)

Avon quarterly profit misses Wall Street view (Reuters)

CVS Caremark quarterly profit rises (Reuters)

(Photo: Reuters)

Macy's is still finding ways to celebrate in what could be a dark winter for retail this year. Customers entering Macy's flagship store in New York City's Herald Square it opened today were met by the pounding beats of the Soul Tigers Marching Band, lots of red balloons and a barrel full of exploding ribbons.  

CEO Terry Lundgren was there cutting a ribbon promising another 150 years for the department store, to tack onto its current 150th birthday. A gaggle of employees sang "Happy Birthday Macy's!", threw confetti and danced.

Macy's birthday celebration comes at the same time most retailers are struggling with flagging sales as consumers pressured by a global financial crisis, a housing market crash, rising food prices and a credit crunch cut back spending on non-essential items.   

Macy's recently cut its own forecasts, but is also reaching out to a bit more investors. Last week, it announced it will temporarily reinstate monthly reports of its sales to keep the market updated during uncertain times.

Rowland Hussey Macy opened his first store in 1858 at 6th Avenue and 14th Street in New York and made $11.06 in sales its first day, or around $345 in today's dollars. The company reported 2007 sales of $26.32 billion and operates more than 850 stores including both Macy's and Bloomingdale's.   

(Photo/Reuters)

Check Out Alaska Gov. and hockey mom Sarah Palin, who's not only John McCain's vice presidential pick, but a luxury fashion maverick.

The Republican National Committee has spent more than $150,000 since late August to outfit Palin and her family in the fanciest of duds from department stores like Saks and Neiman Marcus, says politico.com.

The financial disclosure records, included under the line item "itemized coordinated expenditures," show RNC expenditures at Saks Fifth Avenue in St. Louis and New York of $49,425.74 in September. Based on Saks'  September comparable-store sales of $273.2 million,  Palin accounted for .018 percent of sales.

The RNC also spent $75,062.63 during one September trip to Neiman Marcus, says politico.com, which would represent .012 percent of Neiman's September comparable-store sales of $406 million.

The RNC spent only $789.72 at Neiman-owned Barneys New York but dropped $5,102.71 at Bloomingdale's, which is operated by Macy's, said politico.com, a website that tracks political news.

Hefty primping expenditures on the campaign trail are nothing new. U.S. Senator Hillary Rodham Clinton, D-NY, received guff for her expensive custom-made pantsuits, which cost upward of $6,350 each.

The RNC also spent $4,716.49 on Palin's hair and makeup, and made $295  in purchases at high-end children's stores Pacifier and Steiniauf & Stroller Inc., according to politico.com.

Tracey Schmitt, a spokeswoman for the McCain-Palin campaign, said there are plans to donate the expensive clothing to charity after the campaign.

"With all of the important issues facing the country right now, it's remarkable that we're spending time talking about pantsuits and blouses," Schmitt said in a statement.

Sales at luxury department stores have suffered in recent weeks as the slowing economy and global financial crisis took a toll on even affluent shoppers, and the strengthening of the dollar deterred foreign tourists who had given high-end stores a boost in previous quarters.

Also in the basket:

McDonald's profit tops view; shares rise (Reuters)

PepsiAmericas Q3 profit tops Wall Street view (Reuters)

Philip Morris, Reynolds profits beat Wall St view (Reuters)

Layaway plans make a comeback in credit crunch (WSJ)

(Photo/Reuters)

Alaska Gov. and hockey mom Sarah Palin, who's not only John McCain's vice presidential pick, but a luxury fashion maverick.

The Republican National Committee has spent more than $150,000 since late August to outfit Palin and her family in the fanciest of duds from department stores like Saks and Neiman Marcus, says politico.com.

The financial disclosure records, included under the line item "itemized coordinated expenditures," show RNC expenditures at Saks Fifth Avenue in St. Louis and New York of $49,425.74 in September. Based on Saks'  September comparable-store sales of $273.2 million,  Palin accounted for .018 percent of sales.

The RNC also spent $75,062.63 during one September trip to Neiman Marcus, says politico.com, which would represent .012 percent of Neiman's September comparable-store sales of $406 million.

The RNC spent only $789.72 at Neiman-owned Barneys New York but dropped $5,102.71 at Bloomingdale's, which is operated by Macy's, said politico.com, a website that tracks political news.

Hefty primping expenditures on the campaign trail are nothing new. U.S. Senator Hillary Rodham Clinton, D-NY, received guff for her expensive custom-made pantsuits, which cost upward of $6,350 each.

The RNC also spent $4,716.49 on Palin's hair and makeup, and made $295  in purchases at high-end children's stores Pacifier and Steiniauf & Stroller Inc., according to politico.com.

Tracey Schmitt, a spokeswoman for the McCain-Palin campaign, said there are plans to donate the expensive clothing to charity after the campaign.

"With all of the important issues facing the country right now, it's remarkable that we're spending time talking about pantsuits and blouses," Schmitt said in a statement.

Sales at luxury department stores have suffered in recent weeks as the slowing economy and global financial crisis took a toll on even affluent shoppers, and the strengthening of the dollar deterred foreign tourists who had given high-end stores a boost in previous quarters.

Palin's new wardrobe raised tax questions. If the clothes are donated right after the election, Palin could make the case that she never actually owned them and they were more like costumes or uniforms used for work, a tax expert said. But anything she keeps could be considered a payment and its value could be taxed.

Generally clothing required for work that cannot also be used outside the workplace, a nurse's uniform for example, is a deductible expense. Any clothing that can be used off the job as well as on the job cannot be deducted.

(Additional reporting by Donna Smith) 

Click here for more Reuters 2008 campaign coverage. 

Giving out your Social Security number on national television is bound to attract trouble. But that hasn't stopped Lifelock Chief Executive Todd Davis from flashing his social - 457-55-5462 - on television, the Internet, and print ads.

Davis says he's so certain Lifelock will protect your identity and preserve your credit he gives out his social security number to prove it. He's gotten around 100 dings on his credit, including people trying to get loans under aliases like Jabba T. Hutt.

Someone ordered $400 worth of meat, and a Texas man named Daniel managed to get a $500 loan in Davis' name.  Notified of the fraudulent loan by creditors, Davis sent the same TV crew that tapes "Cops" and "Cheaters" to Daniel's house, where after some discussion Daniel apologized for copying Davis' social off the Lifelock website and then taking out a loan in his name.

But none of this deters Davis, who knows a gimmick, and free publicity, when he sees it.

"In Texas our sales went through the roof" following media reports of the Texas encounter, Davis told Reuters on Tuesday.

Davis says Lifelock will make $90-$100 million in sales this year and expects the company to do $200 million in sales next year. He says Lifelock will remain private for the foreseeable future, especially in light of the global financial crisis.

(Photo/Courtesy of Lifelock)