The state of the U.S. economy has been much on the minds of all our guests at this year's Reuters Consumer and Retail Summit.

Most of them tried to put on a brave face about the current state of play, but Whirlpool's North America President, Michael Todman, gave what to us sounded like a pretty accurate assessment of how stretched the U. S. consumer seems and when he sees a turnaround.

Whirlpool, which is still integrating all the parts of its Maytag acquisition, is in an interesting spot, because they have felt the brunt of the crumbling U.S. housing sector and then got a double whammy from the cut in U.S. discretionary spending.

Todman comes across as an optimist though, and sees Whirlpool well positioned to get through these recent problems and feels his brands will augur well for long-term growth.

Todman was one of the featured guests at this year's retail jamboree -- which continues through Thursday in London and New York.

Jim Schaye comes across as a perfectly nice fellow, but if you happen to work for a retailer and you see him walking up and down your aisles, checking out your stuff ... well, think about dusting off that resume.

Schaye is chief executive of Hudson Capital Partners, and he works with struggling or restructuring retailers if they have to start selling off stores and/or getting rid of inventory.

So, if retailer "A" is declaring bankruptcy or some other similar event and they start selling off their stuff, Schaye and his team will bid to take over all the assets and sell them. They'll sell it all -- merchandise, real estate, even the shelves that the stuff is on will be sold.

Suffice to say, Schaye and his team have been busy these days -- and they expect more business very, very soon. In this clip, he talks about one potential issue that is starting to come up -- a glut of certain types of real estate which has fallen out of favor among those companies that might be buyers.

Schaye was speaking at this year's Reuters Consumer and Retail Summit, which runs through Thursday in New York and London.

The days of going through the Sunday papers and clipping all the double coupons you can find might be coming to an end.

While there are those few people out there (and we know some of them!), who actually enjoy a good session of clipping, Brent Dusing, co-founder and chief executive of Cellfire Inc, likes to see his coupons on his cell phone.

Cellfire, the first mobile application that allows people to use coupons and discounts from their favorite stores and restaurants, has been around for almost three years and has crafted a number of deals with national retailers like McDonald's, Hardee's, Hollywood Video, Enterprise Rent-a-Car, Arby's and Ben & Jerry's and a batch of local retailers, too (in Seattle alone there's Mama Lucia's, Dante's or the Seattle Art Museum).

How does it all work? Walking or driving down the street, you get a message from Cellfire that says the retailer in your zip code has a special deal -- so swing by and spend that cash.

Dusing -- who seems appallingly young to have come up with such a cool idea -- said at the annual Reuters Consumer and Retail Summit that business is doing well and they are adding retailers at a good clip.

Dusing was one of the featured guests at this year's summit, held in London and New York. Next week, Reuters Global Real Estate Summit will be held in North America, Europe and Asia.

Toys "R" Us Chief Executive Jerry Storch has expansion on his mind.

Storch, one of the featured guests at this year's annual Reuters Consumer and Retail Summit, said on Tuesday he was trying to improve the mix and locations of its stores.

Adding new locations is a tricky proposition for any company, especially one that is so dependant on consumers having spare cash to buy discretionary goods like toys and games.

But Storch said he's harkening back to ancient times -- like the Romans or the Greeks ... a LONG time ago -- when shoppers congregated in one main area to buy all their wares, and has no problem seeing Toys "R" Us as playing a part in those concepts -- he doesn't even really seem to mind too much if he is located near a competitor.

The CEO also said that one of the keys to their success is that their stores are in the right locations. So, while adding new stores is definitely part of his plan, relocating underperforming stores is also on the docket.

Storch spoke to Reuters reporters and editors in our New York headquarters and the summit continues through Thursday in New York and London.

Perry Ellis International Inc is looking at getting a good bit more "international" -- as befitting its full name.

Speaking at the annual Reuters Consumer and Retail Summit -- held this year in New York and London -- executives at the clothier said the company was exploring its options in China and India as part of a larger growth strategy.

Paul Rosengard, group president of premium brands and Francisco Hoffmann, vice president of strategic initiatives and investor relations, were two of the featured speakers on the first day of the summit, which runs through Thursday. 

"We are looking at a lot of deals, whether they are license deals or joint ventures, opening retail stores," said Rosengard. "There aren't department stores in China for example, they don't have the malls."

The company also said it was looking at trimming the amount of private brands -- to 10 percent of total sales within three to five years from the projected 15 percent this year.

The costs of raw materials and of just getting things from manufacturer to store shelves continue to rise and Wesley Card, chief executive of Jones Apparel Group said on Monday that those costs will likely continue to be an issue for companies like his and will also be passed on to shoppers -- especially looking ahead to 2009.

Card, kicking off the annual Reuters Consumer and Retail Summit, said on Monday that those costs are especially seen in the production of footwear and accessories.

Rising costs in a retail atmosphere that is being hampered by a weak U.S. economy and record-setting oil prices are expected to be one of the highlights of this year's summit, which includes guests from across the retail world.

The summit continues through Thursday in New York and London.

Upon entering Wal-Mart Stores annual shareholder meeting, an observer might be forgiven for thinking they had just walked into a lively, national political convention.

Patriotic red and blue buntings covered the 16,000-seat arena at the University of Arkansas, the music hardly stopped and the crowd was treated to a constrant stream of well-tuned public relations bullet points — in this case, sustainability, community relations and saving shoppers money.

Associates — the word the world’s largest retailer uses to describe its 2 million employees – whooped and hollered at every chance, especially whenever an executive uttered the word “proud.”

(An associate later told Reuters that staff had been told to react whenever they heard that word — even when it meant interrupting the speaker, presumably.)

“We’re just having fun!” said Mike Miller of Scott Depot, West Virginia, whose group of fellow Sam’s Club associates donned funny hats with stars and stripes, reminiscent of a patriotic Dr. Seuss character.

Large balloons emblazoned with the company slogan “Save People Money So They Can Live Better” bounced back and forth between the bleachers, and enthusiastic associates waved flags.

Even Master of Ceremonies Queen Latifah seemed moved by the euphoria. After a number in which singers sang “One World” as representatives from different countries took to the stage in a mini-U.N, the performer beamed and sighed: “One world — a Wal-Mart world.”

The associates’ enthusiasm waned somewhat during presentations by the companies’ financial mucky-mucks — shares up 26 percent since January, ho hum, etc — but revived somewhat with a performance by Dreamgirls’ Jennifer Hudson (picture at right).

She sang, fittingly, “And I Am Telling You I Am Not Going.”

Just like Wal-Mart. – Reporting by Alexandria Sage

(Reuters photos)

It’s hard enough schlepping through the stores these days, fighting crowds — let alone with throngs of reporters tripping you up.

The media overtook the Rogers, Arkansas Wal-Mart supercenter on Thursday, just outside the retailer’s Bentonville headquarters – all part of a media day in advance of an annual shareholders meeting on Friday.

But company executives, always looking to ring up another sale, warned the group of more than 60 reporters on a tour of the store not to get in the way of customers.

“As we tour the store, we’d appreciate it if you give our customers a little bit of room as we go by, because we want to make sure they are able to buy as much as they can,” said Bill Simon, chief operating officer of Wal-Mart U.S.

Simon also took the opportunity to let reporters know that if they were in the market for any flat panel TVs — for watching CNN, of course, not football — associates could help them out.

As befits the Fourth Estate, we newshounds handled ourselves admirably and there were no unfortunate incidents involving shoppers — at least any that you’ll read about. 

– By Alexandria Sage

It has surely crossed the mind of many a knit-browed parent that the Bratz doll prototype would land in trouble somewhere.

“The creators of the Bratz doll — the provocatively dressed, collagen-enhanced, bratily named successor to the Barbie mantle — is now in court in a lawsuit brought on by Barbie’s creator Mattel,” Interactive Brokers Group equity options analyst Rebecca Engmann Darst told Reuters.

“Thankfully, it has not involved the vice squad,” she said.

Instead, the company behind the wildly successful Bratz franchise, MGA Entertainment, has been hauled into court by Mattel on grounds that Carter Bryant, the creator of the sassy fashion dolls was employed by Mattel when he first conceived the sketches — making them Mattel’s rightful property, Darst said.

Shares in Mattel responded with restrained upside, up 14 cents to $20.25.

But Darst noted the potential fallout of a courtroom showdown left a more conspicuous impact on Mattel’s options.

Option volume of roughly 22,000 contracts late on Wednesday equaled about one third of Mattel’s total open interest of 67,000 lots and was 12 times the normal level, according to Interactive Brokers data.

Most of that volume was situated in Mattel calls and specifically in the July series in the $20 strike, which allows investors to buy Mattel shares at $20 by July 18.

The price of these options at $1.40 a contract during the session implies continued share price gains just to break even on that trade, she said.

Mattel’s implied volatility, a measure of anticipated stock price volatility used in the pricing of options, rose 14 percent to 33.8 percent from Tuesday’s close, making it one of the afternoon’s top volatility gainers in the U.S. options market, she said.

“The interest in the July calls suggested a whiff of confidence among option traders that the Barbie maker’s legal smack down against the Bratz creator has some merit,” Darst said. – By Doris Frankel in Chicago

(Photo: MGA Entertainment)

Granada Nation has spoken: Barack Obama is no car guy.

No stranger to criticism from the U.S. auto industry, The Illinois senator and presidential candidate made it personal this week when he singled out his candidate for Detroit’s “worst car” ever: the 1970s-era Ford Granada.

The cutting comment came in an interview with an Indiana radio station, was picked up by the Detroit News, seized on as a talking point for Detroit radio and was last seen rattling around Internet chatrooms by Thursday.

Obama said he had learned to drive on his grandfather’s Ford Granada, a boxy, big-engined sedan that Ford once tried to market as a kind of Everyman’s Mercedes-Benz.

The Illinois Senator did not remember it so fondly.

“It may be the worst car that Detroit ever built. This thing was a tin can. It was during the ’70s when oil had just gone up so they were trying to compete with the Japanese. They wanted to keep the cars big, so they made them out of tin foil,” he was quoted as saying. “It would rattle and shake. You basically couldn’t go over 80 (miles per hour) without the thing getting out of control.”

Fans of the Granada, which made a cameo in last year’s Academy Award-winning drama “No Country for Old Men,” rushed to the defense of a car killed with little fanfare 25 years ago.

“I’m a Barack voter, but I disagree with him on the Granada,” said Jesse Sweigart, a 32-year-old computer engineer in Columbia, Pennsylvania.

Sweigart said his 31-year-old Ford Granada, bought on a whim for $400 over a year ago, runs like a dream and gets better gas mileage than his newer Dodge truck. “They really put things together back then,” he said.

Tom Peterson, another enthusiast, said Obama was wrong to suggest the big Ford featured flimsy “tin foil” since it was a heavyweight in its late 1970s heyday. “If Obama actually said this, it sounds like (a) politician gum-flapping based on no knowledge,” he said.

“Here comes Granadagate,” wrote one Web poster. “We should invite Barack to drive a couple of our rides. Time heals all wounds.”

Sweigart offered to let Obama take a spin down memory land if the presidential campaign takes him back to Pennslyvania.

“I think if he got behind the wheel it would all come back,” he said. “I’d be happy to give him a ride to the next state.”

In the meantime, Obama may have some damage control ahead with voters in Michigan’s still auto-heavy economy. The Michigan Democratic delegation remains in play ahead of the party convention in August, and polls show Republican John McCain as a strong challenger to Obama in a prospective match-up in the 8th most populous state.

– By Kevin Krolicki in Detroit