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Archive for October, 2006

October 16th, 2006

Not easy being green?

Posted by: Emily Kaiser

walmart.bmpWhen Wal-Mart told Reuters that it was doubling its offerings of organic food, it set off a debate over how the world’s biggest retailer would impact farming. Traditional grocery stores have also jumped in with wider selections of oganics. Now comes word from Advertising Age that the strategy may not be paying off because consumers are balking at high prices.

You tell us — are you buying organic food? Is it worth the price? And do you trust organic foods from major manufacturers and mass retailers?

 

 

October 12th, 2006

Giving an earful for Christmas

Posted by: Nicole Maestri

Headset_small.jpg    Wondering what to get that woman in your life– who doesn’t want to sacrifice style or ear comfort — for Christmas this year?
    How about an interchangeable headband that can double as a headset for your cell phone or a headphone for your MP3 music player?
    At the DigitalLife conference in New York on Thursday, which was crowded with tech heavyweights like Microsoft and HP, Stephanie Card had set up a small booth to show off the headbands she designed after finding that none of the headsets or headphones on the market, with their large sized earbuds, comfortably fit in her ears.
    “I could not keep those earbuds in my ear,” she said.
    So she went about looking for a way to design the perfect hands-free headset for woman — and came up with the Steffi Thomas headband.
    The headbands come in a variety of styles, ranging from solid silk colors like black and brown, to white cotton eyelet and teal pastel paisley.
    A coordinating headset or headphone can be purchased to click in to the headband - quickly transforming the band from a simple fashion accessory to a technology accessory.
    The earphone on the headsets and headphones are attached with a bendable arm — so women aren’t forced to shove the buds in their ears, but can rest them next to their ear if they want.
    “I was quite shocked that no one had come up with an idea like this before,” Card said.
    Card said the bands currently sell online at swapsets.com and in roughly 200 boutiques in the United States and Europe. While she has been getting the word out about the bands at fashion shows, the DigitalLife conference was the first “techie” show she was attending.
    Card said she was curious to see how the show’s attendees would react to the headbands. 
    The initial reaction seemed to be positive–with women walking up to the booth and immediately exclaiming what a good idea the headbands were, since earbuds never fit in their ears either.
    

October 11th, 2006

Those pesky holiday numbers

Posted by: Nicole Maestri

Santa.jpgForty-three percent of shoppers expect to give consumer electronics as gifts this holiday season — down from 55 percent last year, according to NPD Group’s 2006 holiday survey.

Does that mean a gloomy holiday for U.S. consumer electronics retailers? Not necessarily, according to NPD’s Marshal Cohen.

One reason for the decline is that many of today’s teens and adults already own hot tech gadgets like MP3 players and digital cameras — so they are not asking for them like they did last year.

But prices have fallen enough on these gadgets that those teens and adults may turn around and give one of those tech gifts to a parent, Cohen said.

The other reason the decline isn’t as worrisome is that one very large electronics purchase that consumers will make this holiday season – buying that sleek new flat panel television — doesn’t get captured in the survey’s results.

“When I’m sitting there buying a gift and then I buy a flat-panel for myself, I don’t count that as holiday spending if I’m a consumer,” Cohen said.

The survey found that “tried-and-true” items like clothing, toys, books, music and fragrances will be big sellers again this holiday season — especially in the absence of a new wave of electronics making it on to wish-lists.

And how much to shoppers thing they will spend?

They plan to spend $728 this year on holiday gifts, up from $681 in 2005 and $655 in 2004.

The survey was conducted between Sept. 12-19, and was based on information from 1,823 completed interviews from NPD’s online consumer panel.

October 6th, 2006

Audrey Fans Dancing into Gap Stores

Posted by: Alexandria Sage

    Audrey Hepburn may have window shopped at Tiffany’s, but the Gap says that her fans have been lured inside its own stores, as the style icon’s new ad campaign fills Audrey Photoshop windows and television screens this fall.
    On Thursday, Gap Inc. cited its Audrey Hepburn skinny black jeans television and print campaign as “supporting improved store traffic in September” that contributed to a less–than-expected overall same-store sales decline of 3 percent. Wall Street had been anticipating a fall of 4.2 percent on average, according to Reuters research.
    The television ads feature the waifish Hepburn wearing a beatnik uniform of black turtleneck and cigarette pants in the film “Funny Face” but dancing to AC/DC ’s rock anthem “Back in Black.”
    The exuberant ads, evocative of Apple Computer ’s iPod TV campaign, have everyone talking in the blogosphere, and retail analysts on Wall Street wondering whether the campaign can drum up sales for the struggling brand.
    In cyberspace, some bloggers gush about the ads while others are offended to see Audrey hawking pants.
    “At least she’s not dancing with a vacuum cleaner like was done with Fred Astaire,” wrote “Caff” in a recent response to the ThirdWay advertising blog, a reference to Dirt Devil ads in the 1990s.
    Financial analysts weighing in on the campaign give mixed predictions over the ultimate success of the campaign.
    While some express skepticism that the target Gap audience of young men and women will even recognize the star, others say the ads bring a jolt of much-needed excitement to the retailer, which has struggled this year with slumping sales and merchandise missteps.
    “From a marketing point of view it’s back-to-Gap genius,” said Roth Capital Partners analyst Liz Pierce recently.
    A recent Merrill Lynch September sales preview of various specialty retailers noted that the ads “were successful in raising the brand’s profile and cutting through the ad clutter that pervaded this month.”     
    But on Thursday, C.L. King analyst Mark Montagna noted in a research note that the key issue for Gap merchandise, despite its improvements, was whether it has improved relative to the rest of the market. Montagna noted a “wide gulf between Gap and the more relevant brands of today.”

October 6th, 2006

Holiday splurging for the budget-conscious

Posted by: Emily Kaiser

    neiman.jpgCouldn’t find the perfect million-dollar holiday gift in the legendary Neiman Marcus Christmas Book? Try Wal-Mart.
    The world’s biggest retailer, best known for selling everything cheap, said on Friday that its Sam’s Club warehouse stores would offer “once-in-a-lifetime” gifts including a $2.7 million Cessna Citation Mustang jet.
    Cessna calls the plane a “breakthrough combination of power, speed and true jet affordability”, capable of speeds up to 391 miles per hour and altitudes of 41,000 feet.
    Other special Sam’s Club offers include four Super Bowl tickets, complete with an invite to football legend Dan Marino’s VIP reception, and a trip to London for an evening with singer Tony Bennett.
    This is the third year that Sam’s Club has offered such lavish holiday gifts. In previous years, items have included a $198,000 custom-designed 1969 HP Camaro, and a trip to the National Football League’s Pro Bowl all-star game in Hawaii.
    There is a catch, however. Not only do you have to be rich, you also have to be a Sam’s Club member.

October 5th, 2006

Same store sales

Posted by: Reuters Staff

The following table lists select U.S. retail companies that have reported September sales at stores open at least a year, a key retail measure also known as same-store sales.The table includes the range of mean estimates given by analysts polled by Reuters, and the average of those means, and the actual change in same-store sales reported by the companies.
All figures expressed in percentage change over the same period last year except number of estimates.

Read our full story here.

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sss_table.png

October 5th, 2006

Can you download a latte?

Posted by: Brad Dorfman

starbucks.jpgFor those unconvinced that Starbucks coffee shops are ubiquitous, the company has opened a new location — on Apple Computer ’s  iTunes Web site.Starbucks and Apple agreed to set up a separate Starbucks Entertainment area within the iTunes online store. The store will allow users to download music from Starbucks’ Hear Music catalog, which includes songs from Ray Charles, Willie Nelson and others.

Starbucks, the world’s largest coffee chain, began selling music in its shops more than 10 years ago and acquired Hear Music in 1999.

The iTunes site will include playlists compiled by Hear Music and digital versions of many of the company’s CDs, Starbucks said.

The move goes beyond Starbucks previous attempt to put CD-burning stations in a handful of stores.

Starbucks did not pay a fee to become a part of iTunes and will share in the profits of the sales from the Starbucks Entertainment section, Michael Casey, Starbucks Chief Financial Officer, said. He did not give any additional financial details.

ITunes isnt the only place Starbucks is expanding. The company also said it now expects to grow to 40,000 stores from its current 12,241 locations, with Cairo and Sao Paolo among the newest locales.

But that global expansion shouldnt extinguish the sense of community at each Starbucks. Though the pub.jpgcommunity founder and Chairman Howard Schultz has in mind might be a little far from the companys Seattle roots.

“Not since the English pub has a company created this much community for people in their local neighborhood,” Schultz said in a meeting with analysts Thursday.

However, there could be a limit to the amount of community the average Starbucks customer wants. At the same meeting, another executive said 58 percent of the Starbucks opened this year have a drive-thru.

October 4th, 2006

Get ready to scream!

Posted by: Karen Jacobs

4-foot airblown spiderWant to give Halloween thrill seekers a real scare this year? Transform your home into a haunted house.

For the first time, retailer Home Depot, ever on the prowl for new revenue streams, is selling illuminated ghosts, inflated spiders and other Halloween decorations, joining a crowded list of chains looking to profit from the annual fright night.

The National Retail Federation expects consumers to shell out $4.96 billion for Halloween this year, up from $3.29 billion in 2005. While the vast majority of those dollars will purchase candy and costumes, about 17 percent, or $840 million, will be spent on decorations.

Think a six-foot-long coffin with a pop-up skeleton will chill the bones of trick-or-treaters? Maybe they’ll never come back — and all that candy will be yours!

October 4th, 2006

And then there were the dancing elves….

Posted by: Emily Kaiser

First they demoted poor Smiley. Now the marketing gurus at Wal-Mart have found some new friends: Wally and Marty, a pair of “renegade elves” who have apparently ditched their duties at the North Pole to form their own toy business.

“Wally & Marty are Wal-Mart’s ‘guardians of amazing toys’,” the retailer says. They have their own Web site, where they exchange such witticisms as, “What do you call a four-wheeled bike? Awesome!”

The two elves — Marty sounds like he’s from the U.S., while probably Wally calls somewhere in England home — spend much of their time encouraging kids to create a toy wish list on the Web site. They also find time for some toy-inspired poems (Emily Dickinson it ain’t!) and one of them seems quite smitten with this year’s Barbie offering.

Kids can choose which toys to add to their wish list that they can then e-mail to grandma.

Still to come — television and movie ads, and their own comic book. Yes, really.

October 4th, 2006

Admit it, you’ve regifted

Posted by: Jessica Wohl

You know you’re out there. More than 50 percent of American adults have regifted and would do it again, according to a new survey conducted by Tassimo Hot BeverageSystem (those single-serve coffee makers) and Harris Interactive.
    
fruitcake.jpgWe all know those relatives who pass along old fruitcake or other unwanted items, but the survey said that 77 percent of those polled regifted “because they felt the item was perfect for the new recipient.” Sure they did. Nine percent admitted to laziness and four percent were said they regifted because they just didn’t like the recipient.

Etiquette expert Peggy Post weighed in on the issue, and said regifting should only be done “under specific criteria, such as if you’re certain the gift is something the recipient would enjoy.”

If you head to New York’s Bryant Park in November, you’ll have a chance to trade in a regift you didn’t like for a free Tassimo machine. Then, go ahead and give that freebie as a gift, and keep the chain going.