First LL Cool J. Now MTV.

Sears may not be striking the right note with parents (or investors) but the struggling retailer is hoping it can at least make some inroads with teenagers.

In May, Sears announced plans to roll out an exclusive line of clothing named for rapper LL Cool J in its stores.

Today, Sears said it was teaming up with MTV to launch a new movie musical from the executive producers of “High School Musical” — “The American Mall.”

The movie  is about a group of “young adults” who work in a mall over the summer.  Scenes were shot in a Sears store and characters wear Sears clothing. Of course, extras carry Sears shopping bags in the background. 

But the partnership is much deeper than just a movie musical. ”A multi-layered integrated marketing campaign built around the movie targets the core MTV audience on-air, online and in stores — in time for the back-to-school shopping season.”

Sears will have “in-store experience zones” featuring “The American Mall” character looks, “The American Mall” merchandise and the movie DVD. The movie will premiere on MTV on Aug. 11.

But Sears may have an uphill battle when it comes to gaining lasting traction with teens. The age group is a notoriously fickle and fashion can turn on a dime, leaving retailers that stock the wrong trends left to clear through piles of unsold merchandise.

Teens also like wearing what other teens are wearing. That could be challenge for Sears, which is struggling for two years with declining sales at existing stores, meaning it is very likely that teens have not been flocking to the retailer to do their shopping,

(Photos: Reuters)

Check out what Michelle Obama was wearing the other day on “The View.”

It was a Tank Leaf Print Dress from White House/Black Market, the Chico’s chain that sells women’s clothing exclusively in black and white.

Obama, whose husband is making a bid for the U.S. White House, mentioned that she bought the dress at White House/Black Market during a discussion about her style (which starts about 12 minutes into the YouTube video).

White House/Black Market made sure the mention wasn’t missed, sending out a press release to point it out. (The dress, by the way, retails at $148.)

“The View” co-host Joy Behar noted that Obama has been compared to Jackie Kennedy, who set the fashion trend for a nation when she was First Lady in the early 1960s.

Chico’s could use that kind of comparison.

If Obama could do anywhere near the same, inspiring women to run out and by a Tank Leaf Print Dress, for example, it could be a boon for Chico’s, which has been in a major slump since last year with same-store sales falling. The company also has seen profits fall and even reported a loss for the key fourth quarter.

The women’s apparel sector has been depressed for more than a year, hurt by a slumping economy and a lack of compelling fashion.

But if Obama’s mention can help generate sales at White House/Black Market, think what she could do for other sectors. Perhaps in her next appearance, she could remodel a home, using tools from Home Depot and installing Whirlpool appliances?

Or maybe a big-screen TV from Circuit City.

Also in the basket:

Big push for Penney’s: Retailer aims to rule juniors with new lines (WWD)

Grocery shopping made easy (N.Y. Times)

UK’s Cadbury boosted by strong start to 2008

(Video: BarackObama.com via Youtube)

Check out a flood of fresh trouble.
 
Consumers are already being clobbered by soaring food and fuel prices, and that has kept them from shopping for things like clothes.
 
But the floods in the Midwest over the past week are likely to make things even tougher on consumers. The floods have hit millions of acres of soybean and corn farms, removing more supply from an already tight market.
 
That is likely to add more to inflation, meaning less money in shoppers wallets, analysts said.
 
“CPI readings for the remainder of 2008 will be slightly higher than otherwise,” Citigroup economist Steven Wieting said in a  report. “This reduces real incomes and can also affect financial market expectations at the margin.”

The consumer price index, or CPI, measures the change in prices that consumers pay for goods and services.
 
So much for the rebate bump.
 
Also in the basket:
 
Staples win EU okay for Corp Express takeover
 
General Mills sees 2008 earnings above targets
 
Same-sex marriages boost California stores (WWD)

(Photo: Reuters)

When you eat candy, are you a Controller, or an Engaged Exploring Muncher?
 
Those are just two of the six categories of candy-eaters Hershey has identified as it tries to better focus on the U.S. candy consumer.
 
As described by CEO David West at an analyst meeting Tuesday, an “Engaged Exploring Muncher” eats twice the normal amount of candy, chooses from a wide menu of brands and is the least concerned about price.
 
It is also the most profitable segment, which is kind of the point for Hershey as it tries to figure out which consumers to target as it looks to turn around declining market share.
 
“Loyal Indulgers,” meanwhile, are older consumers who are loyal to brands they have known for a long time. “Practical Value Seekers” like candy, but are looking for a combination of price and value. They also represent the largest segment of candy eaters.
 
Smaller segments are “Controllers” and “Detached Occasionalists” who eat less candy because of health concerns or just because they aren’t interested in candy.
 
The last segment is “Confection Loving Moderators.” They like candy, but try to be disciplined in what they eat.
 
So, which one are you? Be honest.

(Photo: Reuters)

By Ben Klayman

Check out how high gas and commodity costs are crimping Hershey and Best Buy.

Chocolate maker Hershey cut its long-term earnings growth target and said it would boost advertising as it moves to reverse falling profits.

However, the largest U.S. chocolate company, which is meeting with analysts, said the pressures it faces — soaring prices for cocoa , energy and other commodities — remain the same.

“We expect 2009 to be another trying year for us with respect to input costs,” Chief Executive David West said.

The price of oil has surged to $133 a barrel and that has pushed up costs across all industries.

The government said rising energy prices sent producer prices – a gauge of costs at the farm and factory gate — up a bigger-than-expected 1.4 percent in May. Housing starts fell in May to their lowest level in more than 17 years as that industry grapples with the subprime mortgage meltdown.

Meanwhile, consumer electronics retailer Best Buy reported a lower, but better-than-expected quarterly profit thanks to market share gains in TVs, computers and video games.

Like all retailers, Best Buy has faced slowing consumer spending due to rising gasoline and food prices prices, as well as the U.S. housing slump.

Also in the basket:

Reuters Consumer and Retail Summit coverage

(Photo: REUTERS/Susana Gonzalez)

Check out a bunch of retail executives talking about the state of the industry, economy and the outlook for holiday shopping.
 
It’s the Reuters Consumer and Retail Summit, being held this week in New York, featuring top executives from Borders, Best Buy, Toys “R” Us, Jones Apparel, Perry Ellis and others.
 
The executives meet with Reuters reporters as most retailers are struggling to attract consumers that have been clobbered by $4-a-gallon gasoline, falling home prices, a credit crunch and rising food costs.
 
Sales got a bit of a boost in May as consumers started to spend their tax rebates. But analysts say that bump could be fleeting, with consumers still under pressure after the rebates have been spent.
 
To find out what retailers think, check out the Retail Summit page all week.
 
Also in the basket:
 
InBev cautions Bid about striking Modelo deal
 
Trust chairman sees change, but no sale, at Hershey
 
CostPlus rejects Pier 1 acquisition offer
 
Starbucks says international growth to cushion U.S. weakness
(Photo: Reuters)

The U.S. government is currently putting $100 billion into consumers’ hands in the form of tax rebates, hoping the fresh cash will stave off a recession.

It’s a plan similar to the once the government followed in 2001, except at that point, the economy was already in a recession.

Back then, the National Bureau of Economic Research said the U.S.  economy entered a recession in March 2001. To get the economy out of its funk, the government passed a stimulus package and mailed out rebate checks over a ten-week period from late July to the end of September 2001, according to research conducted by Thomson Reuters.

When looking at the monthly year-over-year changes, U.S. retail sales started slumping in the beginning of 2001 and reached their lowest level in September 2001, according to the research report. The Thomson Reuters Same Store Sales Index registered a rise of just 0.8 percent in September 2001, but then began to bounce back once the rebate checks were mailed out, with October notching a 1.6 percent gain.

“When comparing the sectors within our retail universe, we find that the discount sector performed the best during the 2001 recession and remained within the 3 percent - 6 percent growth range,” the Thomson Reuters report states. “It registered its strongest same store sales result ever of 9.5 percent in February 2002.”

The report said similar trends are being repeated now as middle class consumers cut back on spending and head to discount stores.

“In 2001, Wal-Mart beat Target’s same store sales results 11 out of 12 months. Today, we’re witnessing a similar trend as Wal-Mart has smashed Target’s comps over the last six months,” the report stated.

During the 2001 economic slowdown, the apparel sector performed the worst and posted its weakest comp ever of -9.5 percent in September 2001, the research shows. It also said the teen apparel group and department stores underperformed and posted sluggish comps during the period leading up to September 2001, but were able to bounce back shortly after.

“If past behavior is a good indicator of future behavior, we are likely to continue to see an increase in consumer spending in the short-term while the 2008 rebate checks are distributed,” the report states. “This in return could help improve the overall economy since consumer spending accounts for about 2/3 of GDP. The discount group is expected to post a 3.1 percent comp, but analysts continue to look for an even stronger 3.5 percent result excluding Wal-Mart.”

(Photo: Reuters)

Might Saks be taken over at some point? This rumor got new life on Friday when Citigroup analyst Deborah Weinswig noted that Iceland’s Baugur Group has consolidated and/or rolled over forward contracts for Saks shares into new ones that mature in July.

“We view this news as an incremental positive for our investment thesis for Saks as it increases our confidence that there is a probability of a takeout deal in Saks’s future,” Weinswig said in a research note.

The Saks takeover rumor picked up steam last year, when Baugur disclosed in an October filing that it could make a joint bid for the parent of Saks Fifth Avenue with Dubai-owned Landmark Group. Baugur repeated that in a filing this week.

The executive chairman of Baugur, Jon Asgeir Johannesson, told Reuters at the World Retail Congress in April that his company was content with its Saks holding and did not intend to make a takeover bid. Baugur, Johannesson and Landmark own about 9.7 percent of Saks common shares.

Saks shares shot up about 4 percent on Friday. Spokeswoman Julia Bentley said in an email that Saks doesn’t comment on rumors or speculation.

Stay tuned.

Check out inflation.
 
That $4-a-gallon gasoline really drives up consumer prices. The Consumer Price Index rose 0.6 percent in May, the largest increase since November. Year-over-year, consumer inflation was up 4.2 percent.
 
The so-called “core” index, which excludes food and energy, rose only 0.2 percent in May and 2.3 percent year-over-year.
 
But most consumers eat, drive and use heat or air conditioning. So soaring prices for energy and rising food prices — up 0.3 percent in May and 5.1 percent year-over-year — cut into what consumers can spend on clothes, home goods and other discretionary items. 
 
It also could mute the impact of the tax rebates consumers are receiving.
 
“Consumers are spending more to buy food and energy,” Lindsey Piegza, market analyst at FTN Financial, said. “The tax rebate is just offering them a cushion. They are not buying wide-screen televisions.”
 
Also in the basket:
 
Anheuser in talks with Grupo Modelo (WSJ, subscription required)
 
Battling a bumpy road” economic downturn (WWD)

Higher price for Anheuser not a sure thing

Budweiser could pay price for being “America’s Beer”

 (Photo: Reuters)

As consumer prices rise and the economy founders, Web surfers are scouring cyberspace for deals.

A new study released this week by market research firm Hitwise showed that online coupon clipping is on the rise.

Hitwise told Reuters that U.S. visits to certain custom coupon Web sites increased 66 percent from May 2007 to May of this year.

Heather Dougherty, research director at Hitwise, said shoppers are trying to cope with cost of living increases.

“While discretionary income is shrinking for some households, consumers are still shopping online, but making sure they find the best deals,” she said in a statement.

Coupons.com led the pack within the category, grabbing 29 percent of the market and chalking up a 190 percent increase since last year.  Coupon Mountain and Eversave rounded out the top three with 14 percent and 6 percent, respectively.

When Hitwise measured traffic from the week ending June 6, they found that search engines directed 20 percent of penny-pinching shoppers to coupon sites. Of the top search terms, 60 percent included a reference to a specific brand or branded product.

Monthly visits to comparison shopping Web sites also increased 60 percent from May 2007 to May of this year, Hitwise spokesman Matt Tatham said.

Looking for a bargain? Here are some other coupon sites:

• Coolsavings.com
• Couponsurfer.com
• Valpak.com
• grocerycouponguide.com