Shop Talk
Retailers, consumers and prices
Check Out Line: Landfill, homage to vending machines mark Toys R Us “hot toy list”
Check out the hot new toys list from Toys R Us for the holiday shopping season. The “2010 holiday hot toy list” shows the industry’s creativity in finding new ways to capture children’s imaginations. That includes looking for inspiration to landfills or the annoying coin-operated vending machines in groceries that all parents detest. Toys R Us comes out with the annual list, which this year features 36 new items — some exclusive — to give parents ideas for what to buy their little ones as they head into the holidays. “We don’t want to miss anything,” said Lisa Harnisch, vice president and divisional merchandise manager at Toys R Us. The list includes a Fisher-Price made landfill that allows fans of the Disney-Pixar movie “Toy Story 3” to relive the scary climax scene where the hero toys head toward incineration. It’s not every day that your kid will thank you for giving them a garbage dump. At least there’s no batteries required. Then there’s “Squinkies,” squishy pencil-topping toys that allow kids to “take home the excitement of a coin-operated vending machine.” Evoking imagery of the gantlet every parent dreads because those machines are filled with useless, cheap, money-wasting junk may not be the way to go. Again, no batteries required. Longtime favorite Playmobil offers a small schoolhouse “featuring everything needed for a full curriculum”, including a skeleton for the science class. This could do well as kids love to play with structures and also are fascinated by the human body. And, you guessed it, no batteries required! Finally, there’s the Calico Critters Luxury Townhouse. These toys live better than I do. The house boasts a “balcony and an outdoor patio” and includes chandelier fixtures. Unfortunately, there is a price to be paid for such high living and that’s the electric bill as, yes, this toy requires two AA batteries. The best gift for little ones may be IOUs for stock in Toys R Us, which is counting on the new products to boost sales as it looks to go public. A successful IPO would surely pay for plenty of batteries.
Also in the basket:
Clorox to sell auto-care brands for $780 mln
Asda relaunches own brand in bid to catch rivals
ConAgra profit misses; full-year outlook lowered
US clothing firm Urban Brands files for Chapter 11
(Photo courtesy of Toys R Us)
Check Out Line: Honey, OK if I buy this $300 gadget?
Check out how the recession has redefined what “major purchase” means to American consumers.
Three times the number of consumers said “yes” compared with “no” when asked if they need to discuss a purchase of $250 to $300 with their spouse or partner to determine if they can afford it, according to a survey by BeemerReport.com. It was the first time “yes” topped “no” at that price level.
For many years, the definition of such a purchase that required consultation has been an item costing $500 or more, according to the survey. “This is the most significant change in the retail business over the last 15 years,” Britt Beemer, founder and CEO of America’s Research Group (ARG), said in a statement. “It’s the first time we’ve seen this kind of basic redefinition over many years of conducting consumer research.” One thousand consumers were surveyed by telephone on Dec. 5-6 and the poll has an error factor of plus or minus 3.8 percent.
American consumers are pulling back everywhere it seems as ARG said on Monday another survey showed an unusually low number of consumers plan to shop in the post-holiday week. Also in the basket:
Kraft stands firm on Cadbury bid
Check Out Line: Shoppers to use more cash, less credit
Check out the expected higher use of cash and debit cards this holiday shopping season by debt-weary American consumers.
Credit cards are losing their appeal as 28.3 percent of U.S. shoppers said they plan to use that method of payment most often this holiday season, down from 31.5 percent last year, according to a survey by the National Retail Federation and BIGresearch.
Meanwhile, those intending to use cash most often rose to 24.9 percent from 22.8 percent last year, while debit card/check card use increased 1 percentage point to 42.5 percent, according to the survey.
“With many holiday shoppers focused on spending within their limits, it’s no surprise that fewer people will be relying on credit cards this year,” NRF CEO Tracy Mullin said in a statement.
Also in the basket:
If I’m paying at POS with a credit card, but pay it off without carrying the balance, would I be counted as a credit-buyer or a cash-buyer?
Check Out Line: Holiday time in Toyland
Check out Toys R Us hiring 35,000 for the holiday season. The toy store giant said it would keep its U.S. store hiring plans at the same level as the last two years, even though industry watchers expect a relatively bleak winter.
Toys R Us, the New Jersey-based chain with nearly 70,000 permanent associates around the globe, is preparing for what it expects will be “another busy holiday shopping season.” Besides hiring about 35,000 for the season, current Toys R Us employees will also be given the chance to work extra hours, the company said.
So far, we haven’t seen any must-have toys, but the battle has clearly begun. Also on Wednesday, Walmart unveiled its plans to cut prices on toys once again this holiday season. The world’s largest retailer said it would have a $10 toys section in all U.S. stores today, offering more than 100 toys at that price.
Also in the basket:
Credit limits, self-discipline threaten holiday sales
As a young liberal American, I was always led to believe Walmart was the root of all evil. And yet, as times get tougher, it’s deals like this that will drive ridiculous sales come this holiday season. Is that really a bad thing? Also, where’s the video game discounts? That’s what kids are playing with these days, not toy trains.
An American Girl Christmas?
Los Angeles shoppers weren’t in much of a splurging mood, except when it came to buying dolls and doll clothes at American Girl. The Grove shopping center is home to one of six American Girl stores in the United States and parents said its dolls are on every girl’s wish list. Here’s what we captured on camera:
What a fab day out – looks like everyone was haivng fun.
Check Out Line: Circuit City quarterly sales down…again
Check Out Circuit City posting its fifth quarterly loss for the past six quarters and withdrawing its financial outlook, as declining store traffic put a damper on sales right before the key holiday season.
Circuit City, which competes with Best Buy, has been the subject of takeover speculation and other questions about its future as results weaken, hurt by consumers dialing back on nonessential spending amid high food and gas prices and tight credit markets.
Earlier in the year, Circuit City received a takeover offer from movie-rental company Blockbuster, but that was later withdrawn after the movie-rental company decided taking on the troubled retailer wasn’t in its best interests. No other company has since expressed interest.
Last week, Chief Executive Philip Schoonover left, taking with him his full $900,000 base salary, another $900,000 target bonus for the current fiscal year, health care for two years and automatic vesting of his stock options.
The company now says it is closely reviewing its business and will take steps to shore up its performance during the critical holiday shopping season.
Also in the basket:
Walgreen posts higher quarterly profit (Reuters)
So Schoonover, who helped finish the wrecking of once proud and industry leader circuit city got a
“Last week, Chief Executive Philip Schoonover left, taking with him his full $900,000 base salary, another $900,000 target bonus for the current fiscal year, health care for two years and automatic vesting of his stock options.”
No wonder our nation’s economics, under the republican regime of Bush, and his would be successor, McCain/Palin, is crashing, possible into the next great republican depression.
Why didn’t the board do to Scootover what it did to thousands of their hard working employees during his tenure. Hand him a check for about $1000-@4000 in termination pay, and show him the door.
And if his lawyer complains, offer to sue him for malfeasance in office.
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Resident Shop Talk Expert
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