Check Out some weakness in book and drug stores sales.

Borders dumped Chief Executive George Jones less than three years after he joined the No. 2 U.S. specialty bookseller, replacing him with a private equity executive with experience turning around ailing companies. The company, which reported a sales decline of almost 12 percent during the holiday shopping season, also named a new chief financial officer as well as replacing its executive vice president for merchandising and marketing.

In November, Borders said it was no longer pursuing a possible sale of the company even as it posted a larger-than-expected operating loss.

Meanwhile, same-store sales at drug stores were not what those retailers were hoping for. Walgreen, which saw sales at store open at least a year rise 4.9 percent in December, said shoppers focused on basic necessities, while staying away from seasonal items. Rite Aid’s same-store sales in the same period slipped 0.2 percent.

President-elect Barack Obama plans to propose up to $310 billion in tax cuts as part of his massive economic stimulus package in an effort to help the U.S. economy escape its recession.

Also in the basket:

LG, Netflix to launch TVs with instant movie viewing

China’s young generation gets thrifty in gloomy economy

China maker Waterford Wedgwood calls in receivers

Consumers to Pare High-Tech Purchases (Wall Street Journal)

The Coming Fallout: Who’s Vulnerable? (WWD)

(Photo/Reuters)

Check Out those quick corporate conference calls.

Anyone who listens to earnings conference calls (we at Reuters Shop Talk listen to dozens each quarter) knows they can drag on … and on … and on.

But these days, some companies have less to say since they’re not giving guidance or they are keeping mum on their plans in this shrinking economy.  Plus, with banks cutting jobs or closing down like Bear Stearns, there are fewer analysts around to ask questions at the end of the calls.

Borders had a conference call that clocked in at about half an hour on Friday morning, complete with questions from just two analysts.  During the previous two Borders quarterly calls four analysts questioned the bookseller.  Back in March, seven analysts piped in.  The company was also pretty quiet about its plans, choosing not to elaborate on financing talks with shareholder Pershing Square.

On Thursday, jeweler Zale Corp’s call was less than 40 minutes as opposed to the usual hour or so.  Six analysts asked questions, down from seven during August’s call and eight back in May.

Also in the basket:

Consumers cut spending, durable goods orders fall

Tiffany slashes view on weak sales, shares fall

U.S. finds trace of melamine in baby formula

Retail Downturn Rains on Macy’s Parade (WSJ, subscription required)

(Photo of Borders CEO George Jones/Reuters)

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)

Check out those coupons from Borders.
 
In a new report, J.P. Morgan analyst Charles Grom begins tracking the promotional cadence at book sellers. Grom said he is keeping a close eye on discounts and promotions as the price war among book retailers extends into the first half of 2008 and Borders prepares to launch its own e-commerce site.
 
 
The view so far?  “Borders is still clearly focused on driving the top line, perhaps at the expense of margins, as it remains the most promotional retailer in bookselling today,” Grom wrote.
 
Borders averages about two coupons per week, with spikes in broad-based discounts during the holiday, quarter-end and month-end periods, Grom said. The company put more promotional focus on specific categories in February and March.
 
Barnes & Noble’s rewards program, unlike Borders’, is subscription based, with members paying $25 and receiving discounts,
 
“As such, Barnes & Noble’s direct marketing campaign serves more as a reminder of discounts rather than a limited time offer,” Grom said. But he added that he’s seen some special offers from Barnes over the past several weeks, including a 40-percent discount on kids’ books.
 
Grom sees the pace of discounts at Borders continuing in the first half as it ramps up e-commerce sales and faces macroeconomic headwinds.
 
Also in the basket:
 
The latest in fashion: pink slips (NYTimes)
 
Wendy’s reports lower quarterly same-store sales
 
Constellation Brands profit tops view

 (Photo: Reuters)