Check out consumers stepping up their online bargain hunting ahead of the holiday shopping rush.

According to Hitwise, searches for retailer promo codes rose 19 percent last week compared with 2008.

Those numbers should rise headed into “Cyber Monday” - the Monday after Thanksgiving when retailers shift from in-store to online promotions.

Last year, Hitwise said searches on a portfolio of search terms for specific retailers (i.e. ‘target coupons’, ‘target coupon codes’ and ‘target free shipping code’) peaked during the week of Cyber Monday, up 76 percent from 2007.

So who is doing this searching? Hitwise looked at the demographics of online bargain hunters in the 8 weeks ending Dec. 27, 2008. It found the split is even for male and female searchers. Just over half of the searchers were between the ages of 25 to 44, and Hitwise said the younger searchers, aged 25 to 34, were more likely to search for retailer coupons than the rest of the online population.

It also found the greatest share of searches are from those making between $30,000-$60,000 and $60,000-$100,000.

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Dollar General IPO prices at low end, rue21 above

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Abercrombie & Fitch profit higher than expected

JC Penney Q3 profit falls, shares up on forecast

Nordstrom profit below Street view, shares fall

(Photo: Reuters)

Check Out the competition in the mall.

As retailers tried to attract consumers for some post-Labor Day shopping, apparel retailers Aeropostale and Charlotte Russe beat Gap Inc’s Old Navy chain in the pricing war this month, according to Eric Beder,  associate director of research for Brean Murray Carret & Co.

While Aeropostale has “never looked better” with its combination of good merchandise and prices, Arden B owner Wet Seal remains the “low price leader,” Beder said.

Consumers have continued to seek lower prices for items like clothes and some surveys have predicted that although they might be willing to open up their wallets a little, they will still favor discounts as they draw up shopping lists ahead of the holiday season.

Another teen retailer Abercrombie, which usually has higher prices, may be realizing that consumers are likely staying cautious spenders and is offering more promotions, Beder said in  the research note.

And while Forever 21 and Urban Outfitters were using “strong fashions” to their advantage, Swedish apparel retailer H&M remains a top chain with low prices for fast fashion clothing and accessories, according to Beder.

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Coldwater Creek CEO quits, chairman named new CEO

UK mainstream retailer launched Asian clothing

Holiday buying spurs Paris trade shows - (WWD, subscription required)

(Photo/Reuters)

Check out the quarterly losses reported by J.C. Penney and former teen darling, Abercrombie & Fitch.

Penney reported a net loss of $1 million, or nil per share, compared with a year-earlier profit of $117 million, or 52 cents per share. Analysts on average expected a loss of 1 cent per share, according to Reuters Estimates.

The loss was bigger over at Abercrombie.

The clothing retailer recorded a net loss of $26.7 million, or 30 cents a share, compared with a net profit of $77.8 million, or 87 cents a share, a year earlier.

Penney has fashioned itself as a value destination in the downturn, and said on Friday that it sold more merchandise at regular promotional prices and less at clearance prices. Shoes and women’s clothing were the strongest sellers, while children’s apparel sales were weakest.

Abercrombie, which has been reluctant have its name associated with value, faced sliding sales, higher markdowns and increased costs in the quarter.

As the economic downturn has deepened, teenagers are overlooking its high-priced fashions and turn to rivals with cheaper prices like Aeropostale or Forever 21. Abercrombie has slowly begun to discount or lower the starting ticket prices on some items to address the consumer aversion to high prices in the downturn.

The company said it remained on track to open three international flagship stores in fiscal 2009, including two stores in Milan and one outlet in Tokyo.

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Dole Foods files for $500 mln IPO

Swatch sees H2 recovery after forecast-beating H1

Bloomie’s Flagship gets overhaul (WWD, subscription required)

Wal-Mart thinks locally to act globally (WSJ, subscription required)

(Photos: Reuters)

Check out what’s happening in apparel retail, according to UBS analyst Roxanne Meyer.
 
There were lower promotional levels last week as fall items hit stores, Meyer said in a  research note.
 
Retailers are focusing on plaid woven tops, scarves, skinny and boyfriend denim, leggings, artsy graphic tees,  flutter sleeves, boyfriend blazers, ruffles and chunky necklaces. Oh, and skirts are making a comeback.
 
Meyer said she is starting to see some “more reasonable” price points at Abercrombie & Fitch, which has tried to avoid aggressive promotions that other retailers have used for months to clear excess inventory during the recession.
 
But she also said demand for $180 blazers, $80 super skinny jeans, $98 boyfriend jeans and $80 beaded silk tank tops at the store will be limited.
 
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CIT Group on cusp of $3 billion rescue
 
Hasbro profit beats, Discovery deal to hurt less
 
Jarden sees profit, sales meeting or topping view
 
RVC buys Ellen Tracy collections (WWD, subscription required)
 
Barnes & Noble consolidates publishing (Wall Street Journal)

(Photo: Reuters)

Check out the latest sales reports, which show that consumers are still cutting back on discretionary spending as they shift to discounters for the basics.  Granted, that’s not exactly news anymore, but some of this morning’s sales tell us that even the discounters are starting to feel the heat.

“Sales for the month of May were somewhat below our expectations,” chief executive officer of Target, Greg Steinhafel, said in a statement.

He’s not alone.

Big boxers such as Target and BJ’s Wholesale reported steeper than expected drops in same-store sales, suggesting that the recession may have depended further than the luxury market.

Speaking of which, upscale department stores, such as Nordstrom and Neiman Marcus, saw sales slip while Macy’s fared slightly better than analysts had expected.  Abercrombie & Fitch, known for their strong hold on the younger markets saw same-store sales slide 28 percent, worse than the decline analysts had expected.  And teen/tween sensation Hot Topic, saw same-store sales fall 6.4 percent which were, again, steeper than analysts had predicted.

There were some bright spots, though: if you ignore gasoline sales, Costco Wholesale saw same-store sales rise one percent, and BJ’s Wholesale rose 4 percent.  And for apparel, Buckle Inc’s more casual teen market shopped the company’s same-store sales up 13.4 percent.

Even TJX, owner of TJ Maxx and Marshall’s among others, saw higher customer traffic translate into company gains even in the face of fluctuating international exchange rates.

With all of that in mind, it’s important to note that Wal-Mart ceased to report monthly sales as of April, giving some investors headaches, and others a chance to focus on smaller company’s sales data.

Also in the basket:

Signet profit up; Harry Winston beats view

L’Oreal sees 2009 market flat to slightly growing

(Reuters photo)

There are very few things to laugh about in the retail world at the moment, but JP Morgan analyst Brian Tunick did a great job of adding some humor to what was a difficult week, especially for Gymboree.

Gymboree gave a bleak forecast for its first quarter, saying regulatory changes related the Consumer Product Safety Improvement Act passed by the Congress in August 2008 will impact sales and gross margins in the first half of 2009. The act required the Consumer Product Safety Commission to begin enforcement of new lead and phthalate standards for children’s products on Feb. 10, 2009.

To try to make light of the situation, Tunick put together this humorous list of the Top 10 new issues that the Consumer Products Safety Commission has its eyes on, and he gave us permission to publish it:

10. Retroactive to August 2006, Forever 21 and Wet Seal shoppers must comply with new rules governing proper disposal of disposable fashion.
 
9. $98 ballet flats may only be worn while actually performing ballet. Or if someone’s inventories are up mid-teens.
 
8. Unless you can prove that you are attending a bachelor party in Vegas, the Buckle must limit its customers to one item of Ed Hardy, Affliction or Obey per hour per day.
 
7. Unless you can prove that you are attending a bachelorette party in Vegas, Bebe Sport must limit its customers to one rabbit fur performance vest and matching Bebe Baby (and we’re not kidding) metallic diaper bag.
 
6. A new 24 hour hotline has been set up for consumers to call if they’ve accidentally combined the highly volatile Coconut Lime Verbena shower gel with Honey Suckle Dawn anti-bacterial hand foam.
 
5. Big box value retailers located within a 100 mile radius of an Old Navy store must relocate immediately to help customers rediscover the family, fun and value that you can find ONLY at Old Navy.
 
4. Abercrombie greeters and employees working in the front room must have no more than 8% body fat on the day they are hired and no more than 2% by the time Mike Jeffries makes a surprise visit to the store.
 
3. Beginning March 10th, JOSB (Jos. A. Bank) must actually sell something in the store at full price.
 
2. All retailers employing Debbie Phelps (The mother of Michael Phelps, who wore Chico’s clothes during her son’s historic performances at the Beijing Olympics) must increase the minimum content of novelty in novelty jackets, so that people might actually buy them.
 
And finally #1…….While we understand it may be tempting, TJX and Ross Stores must restrain from selling lead tainted GYMB inventory to bargain hungry off-price shoppers.

(Photos: Reuters)

Check out Abercrombie & Fitch’s falling profits.

The company played a remix of “Cold as Ice” as hold music for its conference call with analysts. It’s hard to tell if it is supposed to be ironic, or if the company is just tone deaf. 
 
The latter could be possible, as Abercrombie has decided to tune out consumer’s expectations that retailers will offer discounts to try to get them in the door.
 
In November, CEO Mike Jeffries said the short-term relief provided by promotions would have the affect of damaging the brand in the long term.  He defended the strategy again on Friday, though the company has cut some prices at its Hollister and abercrombie chains.
 
But if people stop going to your store, do they eventually forget about your brand?
 
Abercrombie’s same-store sales fell 25 percent in the key fourth quarter. Of course, refusing to discount (other than on clearance items) protects profits. Or maybe not. Net income fell 68 percent, though some of the decline was related to a new employment agreement for the CEO.
 
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PepsiCo Q4 profit falls, but matches Wall St view
 
Sears launching online service to connect clients, contractors (Chicago Tribune)
 
Starbucks to sell instant coffee
 
Microsoft to open own stores, take on Apple

Check out a stream of extremely sobering news from – and for – retailers.

This week, quarterly reports came in from Macy’s, Kohl’s, Nordstrom, JC Penney, Charlotte Russe, and Abercrombie & Fitch.

What did they all have in common? All reported profit drops and in the case of Macy’s and Charlotte Russe, quarterly losses.

Those dreary results followed a bankruptcy filing by Circuit City at the start of the week and then a large profit warning from competitor Best Buy.

Wal-Mart, the retailing behemoth, was able to post a nearly 10 percent rise in its quarterly earnings. But investors were somewhat taken aback when it provided a fourth-quarter earnings forecast that could possibly fall below Wall Street expectations, as it gets hit by a stronger U.S. dollar — which lowers the value of its international sales.

To cap it all off, government data showed on Friday that sales at U.S. retailers suffered a record decline in October. Sales slumped 2.8 percent last month to a seasonally adjusted $363.7 billion, the largest decline since the series began in 1992, the Commerce Department said. This compared with a revised 1.3 percent fall in September, previously reported as a 1.2 percent decrease.

It all comes just two weeks before retailers try to get consumers into their stores — and then actually spending money — during the Thanksgiving holiday shopping week. Get ready for a discount bonanza!

Also in the basket:

Wal-Mart CFO: strong dollar could lower cost of goods

Walmart.com CEO says sales grow despite downturn

Americans teetering on $14 trillion debt pile

(Photo: Reuters)

Check out Abercrombie losing its CFO to Kellwood.
 
Michael Kramer is leaving Abercrombie & Fitch as of Aug. 18 to take the top job at clothing manufacturer Kellwood Co and Wall Street doesn’t like it.
 
“With Mike Kramer’s departure, we are less certain that margins stay at historical levels and growth initiatives are pursued carefully, Thomas Weisel partners analyst Liz Dunn said.
 
Abercrombie already has problems with tepid sales as customers cut spending to cope with rising gasoline and and food costs.
 
Sluggish sales require “prudent management of expenses and capital spending, Credit Suisse analyst Paul Lejuez said. “Without a CFO, there is no one to lead the charge.”
 
Also in the basket:
 
Fortune Brands profit tops lowered Wall St expectations.
 
Consumer confidence rebounds from 28-year low
 
Foreclosures double from last year 
 
(Photo: Reuters)