Retailers, consumers and prices
Check out the latest peeks into consumer behavior.
You know how when there is a huge news event, people stay home to watch it unfold on TV and order pizza?
Well, apparently that doesn’t happen when the major news event is a meltdown in the U.S. financial system.
Domino’s reported a dip in quarterly profit on Tuesday, with U.S. sales down 6.1 percent at restaurants open at least a year.
The credit crunch has also made it harder for the company to open new restaurants, overhaul existing ones and turn over poor performing franchisees, CEO David Brandon said.
Less pizza being sold also means less need to wash it down with Pepsi. PepsiCo missed Wall Street earnings expectations, hurt by disappointing U.S. soft drink sales.
Pepsi trades in brand names, like Cheetos and Tropicana. But brand names are coming under fire from thrifty shoppers seeking private-label products.
Just ask Supervalu. The grocery chain operator also posted lower profit as consumers traded down to lower-cost store brands.
So, to paraphrase John Belushi’s Greek diner owner, “No Coke! No Pepsi! Sam’s Choice.”
Also in the basket:
Thriftiness on special in aisle 5 (N.Y. Times)
Credit crunch raises pressure on U.S. textile industry (WWD, subscription only)
Cadbury cuts more jobs as Q3 sales rise 6 pct