Shop Talk

Security cameras can “see” a lot more these days…

Sweethearting (v.) the act of a store employee giving a friend or family member free merchandise by pretending to scan items at the register or by ignoring items in shopping carts.

It is one of the oldest tricks in the book and a big problem for retailers. So big, in fact, that some estimates suggest that “sweethearting” and other types of employee theft account for almost half of all annual retail theft, or $19.5 billion out of $41.6 billion overall.

Massachusetts-based StopLift Inc. says the answer is just waiting to be liberated from all of the security camera tape that retailers typically don’t monitor until something goes really, really wrong.

We’ve all seen the video of outrageous things that can happen in grocery stores, convenience shops, and retail outlets, but the reality is that watching the security feeds from cameras mounted above every register is time-consuming — so most of that video information goes unused.

StopLift’s computer software analyzes camera feeds by reading certain body motions and other signs that tip off sweethearting. From there, it’s up to managers to decide whether training or  termination is the right response.

You can see actual “sweethearting” caught by the software on StopLift’s homepage, here.

StopLift said its clients include Big Y and Safeway grocery stores.

Women plan to spend less at department stores, mass merchants

Last month, in a poll conducted by SheSpeaks, a women’s insights marketing firm, almost 50 percent of respondents said they would spend less this holiday. That was up from nearly 30 percent who answered the same way last year.

In a new poll, SheSpeaks asks where shoppers intend to spend fewer dollars. Here are the results from the updated poll:

If you are planning to curb your spending, where will you be spending less money?  1 – Department Store (37.64%)  2 – Mass Merchandiser (Wal-Mart, Kmart, Target)   (23.62%)  3 – Big Box Retailer (Home Depot, Staples, Toys R Us, etc.) (16.85%)  4 – Grocery Store  (11.50%)  5 – Club Store (Costco, Sam’s, etc.)  (3.94%)  6 – Discount Store (TJ Maxx, Filene’s, etc.) (4.41%)  7 – Drug Store  (2.05%) 

Aliza Freud, founder of SheSpeaks, said she was surprised by the high percent of respondents who said they would cut their spending at mass merchants like Wal-Mart and Target. Wal-Mart’s results have been outpacing rivals in recent months as consumers seek out its low prices.

But Freud said: “People are feeling like they’re not getting the deals that they really expected to get there.” She said one reason for this feeling may be the lack of coupons that these retailers distribute. Instead of relying on a retailers’ promise that they offer low prices, Freud said respondents indicated that they prefer shopping with coupons these days to feel as if they are getting the lowest prices possible.

“We think coupons are a huge opportunity right now for retailers,” Freud said.

(Photo: Reuters)

Is anyone cooking anymore?

We know many consumers are dining out less often.  Just look at the weak results at chains like Red Lobster and Olive Garden.  Still, some people aren’t making home-cooked meals either.  They need a place to buy pre-made meals and some groceries.  Enter the latest new twist on quick grocery shopping — Supervalu’s test store, Urban Fresh by Jewel, in Chicago. About half of the products in the new store are prepared. 

We wonder, though, if some parts of the store launch were rushed a bit.  Supervalu’s Jewel-Osco chain, which is running the store, took out a two-page ad in the local, free Red Eye newspaper on Thursday (including the back page where commuters get their daily scoop of celebrity news). 

But they didn’t mention where the store is, or even that it’s opening on Thursday.  They did mention that chef Rick Bayless will be there, though.

So, where’s there?  It’s where Supervalu’s shut-down Sunflower Market used to be, at 1910 N. Clybourn Ave.  Live nearby?  Let us know what you think if you check it out.

(Photo/Reuters)

Frugal is the fashion in food shopping

In a  bid to stretch shrinking grocery dollars, U.S. consumers are shunning restaurants for home-cooked meals, clipping coupons, scouring grocery store flyers for deals and consolidating trips to save gas.The U.S. Agriculture Department has warned that 2008 could bring the biggest increase in food prices in nearly 20 years. If shoppers’ words match their actions, it seems that frugal will become the new fashion.

Roughly 80 percent of respondents to a recent survey said they planned to continue those penny-pinching ways even after the economy turns up and they have more coins jingling in their pockets, according to retail consulting firm Precima, which commissioned the online survey that polled more than 2,000 U.S. consumers.

Half of the consumers said they cut back on frozen dinners, while more than 40 percent said they nixed chips, cookies and dessert items like ice cream and cake when money was tight.

Beer, wine and spirits fared only slightly better — 40 percent of respondents said they stopped buying booze to save cash.

Still fewer people — nearly one-third of respondents — said they were already trading down from national brands to lower-priced store brands.

“Despite the challenging economy, consumers are very reluctant to switch brands to save money,” said Brian Moss, Precima’s general manager.

No wonder big packaged food companies like Kraft and Kellogg can raise prices.

Check Out Line: It’s a bad idea to raise the turkey you sell

Check out why Heinz didn’t suffer like Hormel did in the past quarter.

H.J. Heinz came in with a quarterly profit that beat Wall Street expectations, helped by price increases and new product sales, while Jennie-O turkey seller Hormel Foods saw its earnings dip.

Food companies have found it tough going as commodity costs shoot up, but Hormel was particularly hard hit. The reason? It raises the turkeys that it eventually sells — meaning spiking corn feed costs hurt its results. 

Also in food news –  Burger King reported quarterly numbers that easily beat analysts’ expectations, as consumers headed to its restaurants for a burger or two. It also issued a fiscal 2009 outlook within Wall Street’s expectations.

On the apparel end, Children’s Place posted a small quarterly profit, helped by summer clothing sales and cost cuts. Still, the kids’ apparel retailer said it expects further pressure on consumer spending due to the weak U.S. economy.

To round up news in the sector, Kohl’s Corp, a mid-tier department store operator, named its president Kevin Mansell as its chief executive, replacing Larry Montgomery, who will remain the company’s chairman.

Also in the basket:

Check Out Line: How oil prices and consumers influence earnings

Check Out how the spiking price of oil and lifeless consumer spending are affecting more consumer companies.

Supervalu, whose chains include Albertsons and Save-A-Lot, didn’t see any increase in its total quarterly sales. Its food sales were actually down 0.7 percent, but the company saved itself in part with lower expenses, and reported a higher quarterly profit.

But the No.3 U.S. supermarket chain cut its full-year outlook, acknowledging the effect of tight consumer spending, as shoppers are increasingly squeezed by high gasoline and food prices.

Pizza chain Domino’s didn’t think much of its situation either. 

The company’s second-quarter profit, excluding some items, missed Wall Street’s estimates and its Chief Executive David Brandon said returning to positive same-store sales in the United States has “proven difficult” for the company. The problem? The same as it is for others– high costs, struggling consumers.

“We are in a turnaround mode, which is not fun,” Brandon said.

No fun indeed, as is the case for most companies these days.

Check Out Line: Kroger Kroger rides lower prices, gas discounts to higher profit

Check Out the quarterly profit at Kroger Co.

The largest U.S. grocery chain posted a higher quarterly profit on Tuesday, thanks to its emphasis on lower prices and gasoline discounts – music to its shoppers’ ears and higher sales for itself.

“Kroger continues to help customers stretch their budgets in a number of ways, including lower prices and our expanded generic drug and gas discount programs,” chief executive David Dillon said in a statement.

The price cuts, he said, were helping Kroger’s customers save $1 billion annually, at a time when shoppers deem every last dollar precious, as they face skyrocketing prices for necessities such as gasoline.

Kroger also raised its outlook for the full year, based on the strength of the results from the reported quarter.

Also in the basket:

ConAgra sees higher than expected fourth quarter profit

Tomatoes got you scared? Check out these Web sites

Food safety officials in the United States are still searching for the cause of a Salmonella outbreak that has sickened 167 people in 17 states and is believed to be linked to raw round, plum and Roma tomatoes. 

If you want to see whether your state has reported a case, the Centers for Disease Control and Prevention has a site that shows the state-by-state breakdown.

Restaurants and grocery stores have dropped tomatoes like hot potatoes, and many consumers are avoiding them until they get an all-clear from the U.S. Food and Drug Administration.

Many people don’t know that the FDA has published a list of states and countries whose tomatoes are not linked to the outbreak.

FDA also has a site with tips on safe food handling techniques.

Can’t wait for that tax refund so I can, well, buy some gas and groceries

Last year, a tax refund might have been a perfect excuse to finally splurge on that luxurious Coach handbag, or dinner at that hot new restaurant downtown.

This year, that tax refund check likely means another sobering trip to the grocery store or gas station.

With shoppers feeling the burden of rising food costs, high gasoline prices, a slumping housing market, a weakening jobs picture, and the possiblity of a recession, many intend to use their tax refund this year to cover everyday expenses.

According to the Discover U.S. Spending Monitor – a monthly index of consumer spending intentions and capacity based on 15,000 interviews – of the 61 percent of adults surveyed who said they expect a tax refund this year, nearly 64 percent said they will use that cash to help pay for basic household expenses like gas, groceries or mortgages, or pay down credit card debt. 

Only 16 percent of consumers intend to put their refunds into savings, while 8.1 percent said they would use it to take a personal or family vacation.

So…how do you intend to spend your tax refund?

(Photo: Reuters)