Bigger appears to be better, at least in the retail industry.  According to retail brand consultancy Interbrand Design Forum, Walmart is the most valuable U.S. retail brand.
 
Interbrand just ranked the 50 most valuable U.S. retail brands for 2009. While the firm looked at the impact of the brands themselves, the list shows that big box stores have the power. Rounding out the top four - Best Buy, Home Depot and Target.

Interbrand said a brand accounts for 25 percent of the decision to shop at a store. It gave Walmart — Wal-Mart’s U.S. unit – a brand value of $129.8 billion. While that makes the world’s largest retailer the brand value leader, that value is well short of the $235.9 billion in sales racked up at U.S. Walmart stores over the 48 weeks that ended on Jan. 2.

Interbrand noted how Walmart has done some big rebranding, like getting rid of that hyphen when it refers to the U.S. stores.  That’s right, call those Walmarts now, not Wal-Marts.  (OK, so these bags at a Walmart store last November are a bit outdated.)

Best Buy, at No. 2, has a brand value just under $22 billion.
 
“During a period of increased competition and lowered sales, brands that have successful propositions, such as Walmart, and offer an engaging shopping experience, like Best Buy, will come out on top,” said Interbrand CEO Lee Carpenter.
    
So who was missing from the list? Interbrand said “financial woes” kept department stores such as Macy’s, Saks Fifth Avenue and Sears out of the rankings. Fellow chains Nordstrom (No. 13), Kohl’s (No. 22) and JCPenney (No. 24) made the cut.
 
Interbrand also said grocery stores scored low in terms of customer loyalty and brand strength. Whole Foods was the only one in the top 50, at No. 47.

Want to see the full list?  Just click here.

(Reuters photo)

Check Out Circuit City in deal talks.

The bankrupt electronics chain is negotiating with two undisclosed parties that could either buy the company or provide it with additional financing.  The company said the parties are considering providing it with financing to allow it to sustain its operations and restructure through a stand-alone plan, and/or buying the company outright.

Naturally, eyes will turn south toward Ricardo Salinas Pliego. The Mexican retail and media tycoon said in November that he owned 28 percent of Circuit City shares and indicated that he might seek control of the chain, which buckled under the pressure of declining consumer spending and increasing competition by the likes of Wal-Mart and Best Buy. It filed for Chapter 11 bankruptcy protection in November.

Circuit City received a takeover offer from Blockbuster Inc last year, but the movie-rental company later withdrew it and Circuit City was again on its own.

Consumer electronics sales have suffered mightily this year, as a year-long recession has led to consumers to seek out bargains on big-ticket gadgets or forego them altogether. Best Buy, the country’s top specialty electronics chain, narrowed its full-year profit forecast on Friday after posting a 6.5 percent drop in December same-store sales.  

And with a government report on Friday showing that U.S. unemployment has hit its highest level in almost 16 years, those TVs, GPS devices and computers are likely to be tough sells for some time.

 Also in the basket:

Tesco, DSG eyed as two-tier UK Christmas unfolds

Wal-Mart stumble shows rivals putting up a fight

Gottschalks Looks to Avoid Bankruptcy (WWD)

General Mills December sales up

(Photo: Reuters)

If you want to know who was the real retail winner amid all the Black Friday frenzy, just look in the mirror.

That’s the word from Jim Barry, a former editor of Video magazine, who is now a spokesman for the Consumer Electronics Association.

Barry said consumers found “really unbelievable” prices the day after Thanksgiving on some electronics items, such as 42-inch flat-panel TVs selling for $600 to $800.

But “for retailers and manufacturers, the question is was there any profit in any of this stuff?” he added.

Here’s more from a chat with him:

Q: Will electronics prices return to normal after Black Friday?

A: “You’re still going to find deals, especially on flat-panel TVs for which there seems to be an oversupply right now. There’s also this situation of a couple of companies (closing stores) … Some of that product may be at liquidators. Flat-panel TVs have been coming down in price, not withstanding Black Friday and will continue to come down. I would expect prices to continue to be terrific for consumers.”

Q: Will the February 2009 shift to digital signals spur holiday flat-panel TV sales?

A: “The transition has more people thinking about their TV … So in that sense, it can’t help but help (flat-panel sales). But I wouldn’t call it a major factor.”

Q: Where are people buying electronics?

A: “Everywhere. The specialty stores like Best Buy, there are other specialty stores like J&R in New York, regional stores. Then there’s Wal-Mart. Then people are buying online. Personally I don’t think Cyber Monday is as big a deal as it was a few years back partly because more people have high-speed Internet at home now.”

Q: Will rival store closures benefit Best Buy?

A: “It’s not necessarily great for Best Buy because you’ve got liquidators selling product. The only clear winner now is the consumer, who’s getting great deals.”

(Photo\Reuters)

After scoring one of the biggest exclusive deals in music retailing in a long while-- or at least since Wal Mart snagged the exclusive for the new AC/DC opus "Black Ice" earlier this year-- Best Buy began selling the long awaited new recording by Guns n' Roses, "Chinese Democracy," on Sunday.

But stepping down the escalator at the chain's Chelsea story in New York City on Sunday, when a more than 17 year wait for original Guns n Roses material ended, it would have been easy to walk by the modest display box with the Chinese Democracy CDs and vinyl LP's. There were few other signs of CDs being available, and the store was not blasting it on the P.A. system as a record store would have back in the old days.

It was a far cry from the scenes in 1991, when fans waited in long lines outside record stores in cities around the world for the band's "Use Your Illusion" two-CD set.

But then again, 1991 was a long time before iTunes, Apple's online music store, made its debut. While Best Buy has the exclusive on "Chinese Democracy" in actual stores, the 14-song set is available on iTunes too, unlike the AC/DC record which can only be bought at Wal-Mart stores (and to accommodate Wal-Mart free New York City, at MTV's store in Times Square.)

And for all the quiet at the Chelsea store on Sunday afternoon, the new Guns n Roses is a clear early hit, with iTunes on Monday morning ranking it the #1 album in the U.S.

Either way, we'll know how well the CD did both online and at Best Buy next week, when Billboard reports its debut on the record charts.

(Photo/Reuters)

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)

The financial crisis of the past two months has rocked retailers, and many are now planning to hire fewer seasonal workers and roll out promotions earlier than planned to try to salvage holiday sales, according to a recent survey by the Hay Group.
 
The human resources consulting firm conducted an informal survey in September with 20 of the top American retailers, including Best Buy, JC Penney, Costco, and Macy’s to get a glimpse into their plans for the holiday season.

The group then ran the survey again this month to find out how those plans may have changed given the recent financial crisis. Here is what the they found: 
 
Holiday Sales  

• In September, 60% of participants were planning on an increase in sales  
• In November, 38% are expecting a decrease of 5-15% and 29% are expecting the same level of sales

Store Promotions 
 

• In September, 45% indicated they would run the most store promotions on Black Friday, 45% indicated they would run consistent promotions from mid-December to January, and 13% indicated they would run the most after Christmas.  
• In November, 33% indicated they’d run the most store promotions on Black Friday, and 57% indicated they’d run consistent promotions from now until New Year’s   
  

Staffing 

• In September, 75% were planning to hire the same number of seasonal workers 
• In November, 53% are planning to hire the same number of seasonal workers, and 26% are planning to hire 5-15% fewer workers.    

Seasonal Staffing Incentives  

• In September, 76% of participants indicated they will offer a discount for seasonal workers  
• In November, only 56% of participants indicated they will offer discounts to seasonal workers 

 Additional Findings from November Survey 

• 50% of participants will run promotions earlier this year than last year 
• 43% are running more promotions/deeper discounts in response to the economy  

(Photo: Reuters)

Giving out your Social Security number on national television is bound to attract trouble. But that hasn’t stopped Lifelock Chief Executive Todd Davis from flashing his social - 457-55-5462 - on television, the Internet, and print ads.

Davis says he’s so certain Lifelock will protect your identity and preserve your credit he gives out his social security number to prove it. He’s gotten around 100 dings on his credit, including people trying to get loans under aliases like Jabba T. Hutt.

Someone ordered $400 worth of meat, and a Texas man named Daniel managed to get a $500 loan in Davis’ name.  Notified of the fraudulent loan by creditors, Davis sent the same TV crew that tapes “Cops” and “Cheaters” to Daniel’s house, where after some discussion Daniel apologized for copying Davis’ social off the Lifelock website and then taking out a loan in his name.

But none of this deters Davis, who knows a gimmick, and free publicity, when he sees it.

“In Texas our sales went through the roof” following media reports of the Texas encounter, Davis told Reuters on Tuesday.

Davis says Lifelock will make $90-$100 million in sales this year and expects the company to do $200 million in sales next year. He says Lifelock will remain private for the foreseeable future, especially in light of the global financial crisis.

(Photo/Courtesy of Lifelock)

Best Buy is looking to lure more consumers with a “Blue Label” series of products that initially includes laptops and is expected to expand to other product lines.

The retailer has started selling two notebook computers made by Hewlett-Packard and Toshiba that include features consumers had asked for, such as a lighter-weight design, backlit keyboard and longer warranty.

Specifically, the two new notebooks are thinner than 1.5 inches, weigh less than five pounds and come with a two-year warranty.

Best Buy worked directly with Hewlett and Toshiba (whose computer is pictured) in developing the products, which are primarily intended for the second- or third-time laptop buyer. Both notebooks retail for $1,199 and are only available at Best Buy.

“This is definitely something that we want to have a broader footprint across our store,” said Jason Bonfig, Best Buy vice president of notebook computing. He said it was too early to say what other electronics categories could get Blue Label products.

(Photo: Best Buy)

Best Buy is looking to ring up more market share gains now that it has added mobile phone shops to all of its U.S. stores.

The electronics chain has completed the rollout of Best Buy Mobile shops at its 965 U.S. stores – three months ahead of schedule.

The mobile shops offer a wider assortment of handsets and monthly as well as pay-as-you-go service plans. Consumers can select from Sprint, Verizon Wireless, AT&T and other carriers.

Shawn Score, Best Buy Mobile president, said market share gains in the first Best Buy stores that added the mobile departments inspired the quicker national rollout.

“About a third of our stores is producing the current share gains we’ve got,” Score said in an interview. “We are up at least 50 percent in our market share in each of the last six months.”

Banc of America Securities analyst David Strasser said in a recent research note that the Best Buy Mobile expansion was likely a factor in wireless market share losses at rival RadioShack during the second quarter. “We believe Best Buy Mobile will only become a stronger competitor as they ramp up,” Strasser said.

There are also about 15 standalone Best Buy Mobile shops in the United States now, with plans to have at least 35 up and running before the holidays, Score said.

The mobile shops, a joint venture with Britain’s Carphone Warehouse, are part of Best Buy’s strategy to double annual sales by expanding in traditional electronics categories as well as moving into new areas. For example, Best Buy now has musical-instrument shops in some of its stores.

Logo: Best Buy

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)