Shop Talk

Olympic Gold for Coke, McDonald’s and Visa

When is Olympic sponsorship money well spent? A Performance Research poll shows it may depend on how the funds are used.

Coke, McDonald’s and Visa dominate consumer awareness when it comes to the Olympics, according to a study by the Rhode Island-based research firm that evaluates the sponsorship industry.

Sixty-eight percent of Americans polled confirmed the Olympic sponsorship of Coke and McDonald’s, followed closely by 66 percent for Visa, Performance Research said. Those three companies also were listed as having consumers’ favorite Olympic TV commercials and doing the most to support the Games.

“They start their advertising early and they’re continuous with it,” Performance Research President Jed Pearsall said of the three companies’ success. “They’re always reminding people they’re Olympic sponsors.”

Other sponsors trailed far behind in consumer awareness — AT&T (36 percent), Procter & Gamble (27 percent), Polo Ralph Lauren (26 percent), GE (25 percent), Samsung (24 percent) and Panasonic (20 percent), according to the study.

Meanwhile, ambush marketing is alive and well at the Games despite the efforts of the International and U.S. Olympic committees as restaurant chain Subway was associated with the Olympics by 26 percent of respondents, Performance Research said.

Nearly half of respondents saw Subway’s ad with swimmer Michael Phelps, who won eight gold medals at the Beijing Summer Games in 2008, and 79 percent of those believed Subway supported the U.S. Olympic team.

TJX blames Canada … and its Olympics

There is always something getting in the way of rising sales.  In the United States, retailers blamed record-setting snow on the East Coast for curbing a spike in February sales

Up in Canada, people were too riveted watching their athletes win a record 14 gold medals, as well as flying moose and beavers, at the Vancouver Winter Olympics in February to go shopping.

Or so said TJX Companies, which operates the Winners chain in the Great White North, in a pre-recorded call on Thursday. Overall, TJX reported that comparable sales rose 10 percent company-wide in February, but only 3 percent in Canada.

Sales there would have been quite a bit higher “were it not for the Olympics keeping Canadians glued to their TVs,” a spokeswoman said on the recording.

She may have a point: The dramatic men’s hockey finale on Sunday, won by Canada in overtime, was the most watched televised event ever in Canadian history, with about 80 percent of the country’s 33 million people catching at least part of the game, and about third of the country watching the entire game.

(Reuters photo)

Finding the humor in it all

There are very few things to laugh about in the retail world at the moment, but JP Morgan analyst Brian Tunick did a great job of adding some humor to what was a difficult week, especially for Gymboree.

Gymboree gave a bleak forecast for its first quarter, saying regulatory changes related the Consumer Product Safety Improvement Act passed by the Congress in August 2008 will impact sales and gross margins in the first half of 2009. The act required the Consumer Product Safety Commission to begin enforcement of new lead and phthalate standards for children’s products on Feb. 10, 2009.

To try to make light of the situation, Tunick put together this humorous list of the Top 10 new issues that the Consumer Products Safety Commission has its eyes on, and he gave us permission to publish it:

10. Retroactive to August 2006, Forever 21 and Wet Seal shoppers must comply with new rules governing proper disposal of disposable fashion.   9. $98 ballet flats may only be worn while actually performing ballet. Or if someone’s inventories are up mid-teens.   8. Unless you can prove that you are attending a bachelor party in Vegas, the Buckle must limit its customers to one item of Ed Hardy, Affliction or Obey per hour per day.   7. Unless you can prove that you are attending a bachelorette party in Vegas, Bebe Sport must limit its customers to one rabbit fur performance vest and matching Bebe Baby (and we’re not kidding) metallic diaper bag.   6. A new 24 hour hotline has been set up for consumers to call if they’ve accidentally combined the highly volatile Coconut Lime Verbena shower gel with Honey Suckle Dawn anti-bacterial hand foam.   5. Big box value retailers located within a 100 mile radius of an Old Navy store must relocate immediately to help customers rediscover the family, fun and value that you can find ONLY at Old Navy.   4. Abercrombie greeters and employees working in the front room must have no more than 8% body fat on the day they are hired and no more than 2% by the time Mike Jeffries makes a surprise visit to the store.   3. Beginning March 10th, JOSB (Jos. A. Bank) must actually sell something in the store at full price.   2. All retailers employing Debbie Phelps (The mother of Michael Phelps, who wore Chico’s clothes during her son’s historic performances at the Beijing Olympics) must increase the minimum content of novelty in novelty jackets, so that people might actually buy them.   And finally #1…….While we understand it may be tempting, TJX and Ross Stores must restrain from selling lead tainted GYMB inventory to bargain hungry off-price shoppers.

(Photos: Reuters)

Check Out Line: Warnaco CEO sees Olympic gold for Speedo

Check out Warnaco Inc’s Olympic dreams.

Clothing company Warnaco got to boast about the strength of its Calvin Klein jeans and underwear business last week when it reported much better-than-expected earnings and raised its full-year outlook.

Now the company, whose stock rose 6 percent yesterday to a new 52-week high, says it is feeling “the Phelps factor” as U.S. Olympian swimmer Michael Phelps racks up the gold medals in Beijing, at times while wearing the company’s new Speedo LZR suit.

“Michael’s been a spokesperson for us, he’s been a model in catalogs for us. He’s a spokesperson of the brand,” said Warnaco CEO Joe Gromek in an interview on Tuesday on the business news cable television channel CNBC.  

The benefits of wearing a LZR, which can cost up to $550, has sparked controversy in the international swimming community. CNBC cited murmurs of “technological doping” as experts question whether it can actually boost swimmers’ performances.

In the interview, Gromek dismissed any unfair advantage the suit may bring a particular swimmer or team, saying that every athlete has the opportunity to wear one, since the company shipped 3,000 suits to Beijing for the Olympics.

Speedo currently represents less than 15 percent of Warnaco’s business, while Calvin Klein accounts for more than 65 percent, Gromek told CNBC.