Water Works and the Electric Company are SO 1930s.
 
If you are looking to be a 21st-century mogul, renewable energy is the choice.
 
At least that’s the case for the board game Monopoly. Hasbro is coming out with its first-ever worldwide version of the board game , and Water Works has been flushed and the Electric Company has been disconnected.
 
In their place, the game board will feature “Wind Energy” and “Solar Energy.”
 
“In a nod to the efforts of countries worldwide to increase the effectiveness and availability of renewable energy sources, we decided to feature Solar Energy and Wind Energy on the game board,” Hasbro games executive Phil Jackson said in news release.
Which begs the question: will Boardwalk be made out of renewable bamboo?

Retailer Circuit City Stores is expecting digital imaging products to drive sales this Mother’s Day, and is planning to offer consumer training in the use of such items.

The retailer said a U.S. survey it commissioned of more than 4,000 mothers showed that nearly 38 percent would opt for a digital camera, camcorder or photo frame as a gift.

Flat-panel TVs, navigation systems and video games also scored high as wanted items. Only 16 percent of respondents indicated they would not want an electronics product as a gift.

“Mother’s Day is like our second Christmas,” said Steve Deason, head of the retailer’s digital imaging merchandising team.

People are looking for new ways to store pictures for the longer term, sparking rising popularity of portable hard drives and digital photo frames, Deason said. But he added that many people buy these newer imaging products without knowing how to use them.

To help, the retailer is planning to hold demonstrations on the use of digital frames in its stores on May 4, and will begin offering a free training session with the purchase of a digital single lens reflex camera.

(Logo: Circuit City)

Check out earnings in toyland… for one company at least.
 
Hasbro posted a better-than- expected first-quarter profit on Monday, with sales rising 13 percent. Meanwhile, Mattel had a loss in the first quarter , hurt by legal expenses, higher costs and lower sales of its Fisher-Price products.
 
Oh, and Barbie is sagging too, with that Mattel doll line posting  12 percent drop in sales in the United States.
 
Now, it’s hard to draw a lot from the first quarter in the toy business. After the holiday season, many people often take a break from buying toys.
 
But Hasbro had success with its Transformers and Littlest Pet Shop lines.
 
Mattel is hoping price increases in June will help offset rising costs.
 
Meanwhile, the competition really heats up again in coming months as the summer movie season hits. Will “Speed Racer” and “Batman: The Dark Knight” win the day for Mattel over Hasbro-linked “Iron Man” and “Indiana Jones and the Kingdom of the Crystal Skull?”
 
At Mattel, they have to be singing “Go Speed Racer, go!”
 
Also in the basket:
 
Reversing Field, Macy’s Goes Local (WSJ)
 
Weak dollar takes toll on European beauty exports (WWD)

Check out Talbots trying to communicate.
 
Three days after first saying that two major banks would no longer issue it letters of credit, Talbots is holding a conference call with investors to try to further explain the issue and how it is solving the problem.
 
Perhaps seeing the stock lose almost 40 percent of its value in two days made executives think more explanation was needed.
 
Even some analysts who think the decision by HSBC and Bank of Americas to stop giving the companies letters of credit is not a big problem — and is  in fact more a symptom of problems with the banking industry than with Talbots — think communication on the issue could have been better.
 
“We would note the volatility in the stock, based on this announcement, suggests to us that the communication could have been better by the company,” analyst Jennifer Black said in a research note Wednesday.
 
Talbots on Friday stood by its financial forecast for the year and also stressed that it had worked out different financing agreements with is vendors that would actually improve its cash flow.
 
Talbots first disclosed the decision by the banks to stop letters of credit in a regulatory filing after the market closed on Tuesday. 
 
After shares plunged on Wednesday, the company issued a press release late in that trading day to try to clarify the issue, including the fact that its cash flow actually improves under the open account agreements it had switched to with most vendors.
 
Still, the stock continued to fall on Thursday and the company decided to hold a conference call on Friday.
    
On that call, the company also said that there would be no increase in cost of units purchased under the new agreements — rebutting an assumption made by some analysts.
 
 
Chief Executive Trudy Sullivan admitted during the call that the company did not communicate the matter effectively.
 
“We clearly misjudged the impact that the information disclosed in our 8-K filing would have on the investment community and the media. We should have done a better job of highlighting the difference between lines of credit on the one hand, which were not impacted, and our letter of credit, and we should have executed a much stronger and comprehensive communication program for you all, particularly given the sensitivity in the marketplace.”
 
Investors seemed more receptive once the message was communicated on Friday as shares rose 9 percent.
 
Also in the basket:
 
Sticker shock in organic aisles (N.Y. Times)
 
Trian says Wendy’s rejected two takeover offers 
 

Check out a different weak market for retailers.
 
Not only are retailers having trouble selling merchandise, they are also having trouble selling themselves.
 
The days of the buyout boom, when the underlying value of real estate attracted buyers to retail assets is gone, analysts and bankers told Reuters.
 
But there could be value for some investors.
 
“These markets will also create opportunistic deals for people willing to dig deep, do some research and wait for a longer payout. The days of sprucing up an asset for a quick flip are over for now,” said one retail investment banker, who declined to be named.
 
“There’s a lot of folks looking, but not necessarily pulling the trigger,” the banker said.
 
 
Also in the basket:
 
Blockbuster’s Circuit City bid deemed Netflix boon
 
Retailers get stingy with data (N.Y. Times)
 
LVHM Bullish on U.S. (WWD)
 
Supervalu 4th-quarter profit rises, sales edge up

(Photo: Reuters)

JC Penney held its two-day analyst meeting in New York City this year, kicking off with a dinner and presentation by Chief Executive Myron “Mike” Ullman on Tuesday night.

The big news out of the meeting was that Penney’s time frame for its long-range growth plan has been stretched out due to the rough retail environment, and the retailer may further cut back on new store openings.

But there were some off-beat sites, sounds and observations from the meeting to make you feel like you were there (well … almost).

** After Ullman gave his speech on Tuesday night, he began to inform the crowd of the detailed logistics for how the analyst day would unfold on Wednesday, including telling them there would be boxed lunches on the bus that would take them to a store tour in Paramus, NJ. He then interrupted himself, joking that somebody else should be providing all the details. But upon further reflection he said: “I don’t know who it is who is going to tell you that– we probably eliminated that position.” The quip generated laughter from the crowd.
 
** Penney handed out a binder Wednesday morning filled with copies of the slide presentations that its management would be giving that morning. But to force impatient analysts (and reporters) to listen to all of those presentations, it omitted copies of the final key presentation — that of Chief Financial Officer Bob Cavanaugh. Penney knew that if it put copies of his slides in the binder, Wall Street analysts (and, well, us) would have dashed out of the room and rushed off to update their research notes (or file stories) – missing presentations on marketing, merchandising and customer satisfaction.

The tactic worked — the room remained packed all morning and fell silent when Cavanaugh finally came to the stage to give his presentation at the end of the meeting.  

** It was a reversal of fortune at the packed meeting on Wednesday – for once, the line to use the men’s room was longer than the line to use the women’s room during bathroom breaks.

(Photo: Reuters) 

Check out the bridge, the elongation and the unpredictability at the J.C. Penney analyst meeting.
 
CEO Mike Ullman told analysts that he will not be providing annual financial guidance at this time because the department store operator does not have enough visibility.
 
On Tuesday he highlighted how uncertain the retail environment was.
 
 ”I’ve been in the business 39 years. I don’t think I’ve ever seen an environment that was as unpredictable as the current environment,” Ullman said.
 
The department store chain has been hit as its middle-income customers contend with higher food and energy costs, a deteriorating housing market and a credit crunch.
 
Ullman said the time frame for the company’s five-year growth plan has probably been “elongated” and that the company  now has a “bridge” plan that includes moderating store openings and curbing the amount of inventory it keeps in stores.
 
Weakness in the retail industry has had one beneficial effect for consumers, though. Inflation at the consumer level rose less than expect due to falling apparel prices. Clothing retailers have been cutting prices to try to attract customers.
 
Also in the basket:
 
Coca-Cola profits  beat estimates

(Photo: Reuters)

Last year, a tax refund might have been a perfect excuse to finally splurge on that luxurious Coach handbag, or dinner at that hot new restaurant downtown.

This year, that tax refund check likely means another sobering trip to the grocery store or gas station.

With shoppers feeling the burden of rising food costs, high gasoline prices, a slumping housing market, a weakening jobs picture, and the possiblity of a recession, many intend to use their tax refund this year to cover everyday expenses.

According to the Discover U.S. Spending Monitor – a monthly index of consumer spending intentions and capacity based on 15,000 interviews – of the 61 percent of adults surveyed who said they expect a tax refund this year, nearly 64 percent said they will use that cash to help pay for basic household expenses like gas, groceries or mortgages, or pay down credit card debt. 

Only 16 percent of consumers intend to put their refunds into savings, while 8.1 percent said they would use it to take a personal or family vacation.

So…how do you intend to spend your tax refund?

(Photo: Reuters)  

Check out Linens ‘n Things talking with its creditors.
 
The company has deferred a $16.1 million debt payment that was due today and is in discussions with lenders to redo its capital structure.
 
The company, owned by Leon Black’s buyout firm Apollo Global Management,  already has been under pressure from other home goods sellers, including discounters Target and Wal-Mart, as well as Wiliams-Sonoma and Bed Bath & Beyond.
 
But amid the housing slump and with consumers tightening their wallets in what may already be a recession, the company now operates in a market when people are seldom buying linens or things.
 
Add to that the credit crisis, which has pressured the company’s vendors, leading to tighter credit terms for the company, it said.
 
The Wall Street Journal reported last week that Linens ‘n Things could file for bankruptcy as early as today. A source told Reuters last week that bankruptcy was one possibility, but that it was not the top option.
 
Whether it files for bankruptcy or not, the world around Linens ‘n Things isn’t getting any better. Costs for food and energy drove the producer price index up 1.1 percent in March, retailers in general posted weak sales for the month and U.S. foreclosure filings jumped 57 percent in the 12 months ended in March.
 
On the plus side for consumers, there could be a big bedding sale in the near future.
 
Also in the basket:

Retailing chains caught in wave of bankruptcies (N.Y. Times)
 
Pershing Square offers to buy Borders’ businesses
 
Carrefour says plans unchanged by Blue Capital move

(Reuters photo)

Check out the familiar story line for investor Mark Wattles.
 
It’s not really a sequel and not quite a remake, but the story of Blockbuster’s takeover bid for Circuit City does contain some familiar plot elements and characters.
 
In 2004, Hollywood Entertainment, the video chain operator founded by Wattles, was the No. 2 player in a video industry struggling against rising competition from low-priced videos being sold by Wal-Mart and from online video rental company Netflix.
 
Today, Wattles is a major, vocal, shareholder in Circuit City, a struggling No. 2 in an industry being hit by increased lower-priced competition from the likes of Wal-Mart and Costco and by a weak economy that is causing consumers to avoid discretionary purchases like big-ticket electronics.
 
In 2004, Wattles pushed for Hollywood to be sold — to Wattles and private equity firm Leonard Green and Partners. In 2008, Wattles suggests that Circuit City consider being sold or take other steps as he wages a proxy battle for seats on the retailer’s board.
 
In 2005, Blockbuster made a hostile takeover bid for Hollywood, which had agreed to be purchased by rival Movie Gallery. Today, Blockbuster made public an offer of up to $1.3 billion for Circuit City after Circuit City would not provide access to its books.
 
So far, Reuters has not heard Wattles’ review of the Blockbuster offer for Circuit City. But will the plot similarities continue? In 2005, anti-trust concerns led to Blockbuster dropping its bid for Hollywood, leaving Movie Gallery to win the deal. Today, there are already questions about Blockbuster’s bid for Circuit City — centering around how the company will finance the bid.
 
Blockbuster says it can complete the deal on a cash basis and that it has the support of Carl Icahn, a Blockbuster shareholder.
 
Oh, by the way, Icahn was also around as a supporting character during the Blockbuster bid for Hollywood, first as a Hollywood shareholder and then the largest investor in both Hollywood and Blockbuster. He tried to “facilitate a combination” of the two companies then, according to the Portland Oregonian newspaper, which cited regulatory filings.
 
Also in the basket:
 
March retail sales unexpectedly rise 0.2 percent 

Pilgrim’s Pride to cut chicken processing by 5 pct
 
Wal-Mart hires exec to eye Russian opportunities