Shop Talk
Retailers, consumers and prices
from Dhanya Skariachan:
Check Out Line: A mixed bag of consumer news
Check out a mixed bag of results from the consumer world.
Investors looking for yet another clue to gauge the strength of the U.S. consumer spending recovery might find some solace in online retailer Overstock's results and women's apparel retailer Ann Taylor's strong first-quarter outlook.
Overstock, which sells excess inventories of clothing, accessories, furniture and other items, recorded a 42 percent rise in quarterly sales, while Ann Taylor forecast a same-store sales rise of 11 percent in its latest first quarter.
"Consumers are back in the malls and outlet centers...They are being lured to spend on nonessential goods by pre-planned promotions from retailers and greater confidence in their economic well-being," Wall Street Strategies' Brian Sozzi summed it up.
The U.S. consumer is certainly warming up to spending on more than essentials and maybe a tad more comfortable replenishing their wardrobes with news of an improving economy floating around. But just how far will they go? Will we see a simultaneous improvement in all sectors of retail?
Judging by the latest crop of results from the restaurant world, maybe not.
Applebee’s and Nutrisystem share pitchman
Celebrities often lend their name recognition to big brands, but sometimes such advertising can be downright confusing.
Take the companies ESPN anchor Chris Berman is pitching these days: Applebee’s restaurants and weight loss center Nutrisystem.
Restaurant meals often have more calories than we expect, so we were surprised to see Berman add Applebee’s commercials to his repertoire.
In his ads for the weight-loss company, Berman brags about all the weight he’s lost (41 LBS) on Nutrisystem’s calorie and portion-controlled meal plans.
Equally incongrous is blues legend B.B. King’s history as a pitchman.
King, who has type 2 diabetes, has helped advertise a LifeSpan blood glucose meter.
But the music icon also has loaned his name to blues clubs and according to the Internet Movie Database he has been a pitchman for fast-food chains Burger King, Wendy’s and McDonald’s.
I started Nutrisystem on August 11, 2009. A friend of mine lost over 40lbs in a year of following the program. Back in 2005-2006 I lost 80lbs following the South Beach program overtime I drifted from those habits and gain back 70 of that in the last few years. I decided I should get back on a program since what I was doing wasn’t working.
I need things to be simple and easy to prepare and Nutrisystem is great for people who like convenience. Everything is prepackaged and properly portioned. You supplement the program with Fruits and Veggies since that wouldn’t be very good prepackaged. You can either order the “Favorites” package or pick your own. I tried the “Favorites” package and found things that I definitely like and also found stuff I will never order again. Everyone has their own preferences but if you are used to frozen meals from Lean Cuisine, Health Choice, etc you should have no trouble finding something you enjoy in NS.
In 74 days that I have been on the program I have dropped 36.4 lbs doing some extra exercise on the side which is recommended but not required for success.
For those of you wanting to get an extra discount I can provide you a referral code at it will entitle you to $30 off your first order. If you are new to Nutrisystem it should work just fine. If you are coming back to the program and have been inactive for more than 4 months it should also work for you too. Here’s all that you need to do:
Email shawn_jumbo@yahoo.com and put in the memo NS Referral and I will send you a code within 24 hours. If you have more than 1 person signing up and need more than one code please let me know. This should work if you do it online or call in your first order.
I was amazed at the number of people complaining about this program I just don’t understand why it is pretty easy to follow and I don’t feel hungry at all!
Check Out Line: It was the best of times, it was the worst of times…
Check out the tale of two cities in the retail world.
We are in the heart of the earnings season and every day brings reports that offer grist for both sides of the argument about whether the recovery has begun.
For the optimists, we have sports clothing and footwear maker Under Armour, which posted a stronger-than-expected quarter and raised its outlook, and yoga clothing and athletic gear maker Lululemon Athletica, which raised its forecast.
Meanwhile, DineEquity, home of the Rooty Tooty Fresh ‘N Fruity breakfast at IHOP, topped Wall Street’s expectations due to lower costs, and better sales and more efficient staffing allowed outdoor gear retailer Cabela’s to post stronger-than-expected earnings.
On the other side of the tug-of-war, pessimists can point to VF Corp. The maker of such brands as the North Face, Vans, Wrangler and Lee missed analysts’ expectations and said consumer spending would remain challenged.
Meanwhile, Winn-Dixie posted a wider loss and gave a weak 2010 outlook as recession-hit consumers shopped for fewer items on visits to the supermarket chain, and Limited Brands, the operator of the Victoria’s Secret and Bath & Body Works chains, warned that its October sales are trending below expectations.
The market weighed in as S&P 500 index futures edged higher on Tuesday as better-than-expected earnings offset worries that the market’s seven-month rally was reaching its end.
I used to like the Rooty Tooty Fresh ‘N Fruity breakfast, but before going to IHOP again, my family and I are keeping in mind that the company has been exposed for animal cruelty and food safety in its supply chain. For more details, check out: http://www.humanesociety.org/ihop.
Check Out Line: Want growth? Buy up.
Check Out retail strategy for growth.
A list of the top 10 companies from a “Hot 100 Retailers list” compiled by Planet Retail for the National Retail Federation showed that while a few companies grew organically, most grew as a result of a merger or acquisition.
Topping the list of companies that grew through a deal was DineEquity, which bought Applebee’s last year.
Others in that category include Susser Holdings after its purchase of Town & Country Food Stores and Village Market grocery stores, as well as the combination of fast food chains Wendy’s and Arby’s into Wendy’s/Arby’s.
Of the companies that grew on their own, Los Angeles-based American Apparel was “tops,” with revenue growth of 57.6 percent, the list showed.
Another not-so-surprising name in the top 10 was Apple, known for its iPod, Mac computer and one of the latest favorites in the market — the iPhone. “Still opening new locations, Apple also uses its stores as a way to build brand awareness,” according to the survey.
Some retailers actually managed to maintain growth, averaging a 10.8 percent compound annual growth rate, the list showed. Those on the growth chart include GameStop, Urban Outfitters, Best Buy and J. Crew to name a few.
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Resident Shop Talk Expert
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