Reuters Blogs

Shop Talk

Retailers, consumers and prices

May 8th, 2009

Check Out Line: Slurping up strong sales at McDonald’s

Posted by: Nicole Maestri

CHINA-MCDONALDS/Check out those sales rising at fast-food giant McDonald’s.

The burger chain said its April sales at restaurants open at least 13 months rose 6.9 percent rise in April. In the U.S. alone, April same-store sales increased 6.1 percent, helped by new coffee drinks and chicken snack wraps.

Fast-food restaurants have generally held up better in the recession than higher-priced sit-down restaurants. 

But even fast-food sellers have not been immune to the impact of the downturn. The U.S. fast-food industry saw its first quarterly traffic decline since 2003 in the quarter ended in February, according to market research company NPD Group. 

The stronger dollar, which lessens the dollar-value of sales made overseas, led to an overall 1 percent decline at worldwide McDonald’s restaurants, the company said. Sales rose 8.9 percent in constant currencies. 

 Same-store sales rose 8.4 percent in Europe, helped by the shift of the Easter holiday to April from March, while same-store sales in the company’s Asia/Pacific, Middle East and Africa segment rose 6.5 percent.

Also in the basket:

Retail veteran sees sector recovery post 2012

Puma to cut further costs after weak Q1

Crocs’ outlook disappoints, shares plummet

(Photo: Reuters)

April 23rd, 2008

Check Out Line: Regis results spiffed up by early Easter

Posted by: Brad Dorfman

haircut1.jpgCheck out the Easter haircuts.
 
While the early Easter this year threw off results at many retailers, the holiday haircut was apparently still in fashion.
 
Regis, which runs Supercuts and other salon chains, posted its biggest same-store sales increase in eight years, helped at least somewhat by the early Easter, which moved into the company’s fiscal third quarter this year.
 
The company said the majority of the sales increase came from price increases. (That shave and a haircut definitely costs more than two bits.)
 
But it also cited the earlier Easter as boosting sales, which helped lead to more than a tripling of profits.
 
Nothing beats the feeling of a fresh haircut.
 
Also in the basket:
 
Philip Morris Int’l profit up, raises forecast
 
Playing Exclusives Game: Results Can Be Win-Win But Brands Face Pitfalls (WWD)
 
Pepsi Bottling profit falls; affirms outlook

P.F. Chang’s 1st-quarter profit falls

(Photo: Reuters)

April 2nd, 2008

Check Out Line: Bunny boost at Walgreen’s

Posted by: Brad Dorfman

bunny.jpgCheck out the Easter boost in drugstore land.
 
Drugstore chains have been hurt by the weak U.S. economy of late, especially in the nonprescription part of the store.
 
But Easter seems to have helped at least one of the largest drugstore chains: Walgreen’s.
 
Walgreen Co said strong sales of Easter merchandise helped it post better-than-expected general merchandise sales in March. And they aren’t just talking about the fact that Easter came early this year, moving up purchases that would normally have occurred in April.
 
“The company recorded strong Easter seasonal sales, and front-end sales exceeded expectations for the month despite the slowing economy,” it said in a news release.
 
Of course, those front-end sales were needed to offset tepid prescription drug sales. The switch of allergy medicine Zyrtec to over-the-counter status, and a slower flu season for prescriptions hurt sales in that area as did an influx of lower-priced generic drugs in the past 12-months.
 
Still, for at least a month, it was chocolate bunnies to the rescue.
 
Also in the basket:
 
Best Buy profit better than expected
 
Lululemon’s sales double, to close Japan stores
 
Knit prices soar up to 20 percent for fall (WWD, subscription required)

(Reuters photo)