Attention all eaters (and shoppers)!  
    
Today, as the scent of turkey and spice wafts through your cozy abode ahead of the big meal, you may feel frustrated that your natural instinct to hunt and gather — remember our forefathers? — is thwarted by store opening hours. 
    
But never fear! You don’t have to wait for the stroke of midnight, when many retailers will open wide their doors. Assuage your instincts now by clicking on Reuters’ selection of holiday shopping stories, from women shoppers finally buying for themselves to food donations by Wal-Mart. Or how about a look at retailers vying for more full-price sales, or social media providing a boost to sales.
    
Reuters will be sending its reporters across the country to visit stores, interview shoppers and retailers throughout the long weekend, providing an advance look for investors, and shoppers, of how the crucial holiday sales season is shaping up.

(Reuters photo)

For some of Japan's retailers trying to jumpstart consumer spending, setting prices is like doing the limbo: How low can they go?

Japanese retailers reported mostly dismal first-half earnings results, with the industry stuck in a slump as shoppers remain reluctant to open their wallets even as the economy emerges from recession.

With no sales pick-up in sight, stores seem to have no choice but to continue their race to undercut rivals, with prices dropping for everything from cars to clothes to milk.

On the surface it sounds like a shopper's paradise: Who wouldn't mind paying less than 1,000 yen ($11) for a pair of jeans?

But it could also lead to a deflationary spiral in which consumers put off spending in hopes of further falls in prices.

And what's more, these price cuts are slicing into already razor-thin profits at companies, which are then forced to pass on the pain to employees in the form of lower paychecks.

"It's a death march," said Junji Ueda, CEO of FamilyMart, Japan's No. 3 convenience store chain.

"Manufacturers and transportation companies can't make profits, and retail workers can't get pay rises, or even worse, deflation will get to the point where they can't keep their jobs."

But some retail managers say price cuts are not hurting their businesses and there is room for even more markdowns.

"Some say we are cutting prices at the expense of profits, but such an argument is groundless. The problem is how to control inventory efficiency," said Motoya Okada, president of Japan's No. 2 retailing group Aeon Co Ltd, which runs the Jusco chain of supermarkets.

"Some wonder how we can sell jeans at 880 yen, but at the same time, there are many who think they are still expensive.  Recently, I visited Vietnam and was surprised to see items better than ours are sold at half our prices."

Tadashi Yanai, CEO of Fast Retailing, maintains rivals' efforts to undercut each other are self-destructive, although the firm's casual-clothing chain Uniqlo is seen by some as one of the very culprits for fanning the deflationary trend with ultra-cheap apparel.

Fast Retailing is among the few Japanese retailers that have reported robust profit growth,  buoyed by strong sales at the Uniqlo stores.

"Our 990 yen jeans created value, but those that followed, like the ones for 880 yen and 850 yen, -- I guess jeans will be sold for free eventually -- did not produce value at all. I think our rivals will end up hurting themselves through such moves," Yanai said.

I am a bargain hunter and always happy to pay less, but I'm just hoping my salary doesn't decline like the prices of the goods in my shopping cart.

Photo credits: REUTERS/Issei Kato

What is sticky, shaped like a fish and helps Japanese people shrug off the lingering effects of the country's worst recession since World War Two?

The economy is struggling but sales of a traditional, fish-shaped sweet snack are going along swimmingly, thanks to its low price and auspicious name.

Taiyaki, which means baked sea bream, is a pancake stuffed with a sweet bean jam and served hot and cheap in stalls all over the country.

The name helps. "Tai", Japanese for sea bream, sounds similar to the word for happiness.

With a price tag of as little as 130 yen ($1.45), the snack, which celebrates its 100th anniversary this year, is making a lot of people happy -- including those needing a job as the stalls are easy to get going. 

"Taiyaki has been around from ancient days but I still want to eat one once in a while," Masako Kano, a 69 year-old housewife queuing outside a new store, told me. "Compared to other cakes, which normally cost around 200 yen to 300 yen, its price is attractive."

Fancy Corporation recently opened its 45th taiyaki outlet in Kawasaki, just south of Tokyo, saying the cheap snack is as popular as ever in tough times. 

"In this economic environment, customers prefer products that are low-priced, safe and reliable. I think that's why the number of our stores is growing," says company spokeswoman Eriko Yano.

Japan's snack industry association says sales of expensive confectionery is waning, leaving more room for the little treats in life.

"I think the taiyaki boom has to do a lot with the capability that you can buy one or two pieces at a time. The decrease in our income has been serious," 76-year-old Michiko Hoshi told me as she queued up to buy the snack.

Photo credit: REUTERS/Yuriko Nakao

Check out the latest outlook on October sales at U.S. retailers.

While most industry experts expect a 1.2 percent rise thanks to the weather gods and easy comparisons, the forecast doesn’t really say it all.

For instance, while sales trends have improved from a disastrous October 2008, data on the economy and consumer spending gives mixed signals and indicates shoppers remain cautious.

News of the U.S. economy returning to growth may have renewed some hopes of a revival in spending late last week, but the Commerce Department talked about consumer spending falling 0.5 percent in September.

It may be too early to raise hopes based on expectations for October.  One thing is certain — the future is unclear.

Also in the basket:

NBA average ticket price falls for 1st time in 8 years

Wal-Mart announces second round of toy price cuts

Flu fears boost Clorox profit; tops Street view

Dean Foods profit up; sees uptrend in dairy prices

(Reuters photo)

Check out retailers beating earnings expectations.

Today it is Family Dollar and Costco — both being places where people usually shop to save money.

Family Dollar saw sales rise in the quarter, though sales at stores open at least a year were less than expected as the company has been reorganizing its stores to stock more food and other items that shoppers want as they stick to necessities.

Costco sales fell and so did its profits, in part due to a stronger dollar, higher labor costs and also because of the weak economy.

But its earnings still beat Wall Street’s expectations and Costco’s stock rose in the morning.

Retailers will be heard from a lot this week as many report September sales.

Also in the basket:

Coutu sees potential in Rite Aid stake (Globe and Mail)

Helen of Troy Q2 profit trumps Street

Louis Vuitton very optimistic on Christmas sales

(Reuters photo)

James Dean smouldered in his, the Marlboro men looked rugged in theirs, and now me and hordes of other Japanese people can feel frugal in ours. Jeans -- practical, durable and with just a hint of  rebelliousness -- are at the centre of a price war in Japan, as struggling retailers look to lure cash-strapped customers back through their doors.

With the country slipping deeper into deflation and its jobless rate rising, shops have for some time been marking down almost everything from bags of cereal,  to laundry detergent and bicycles.

But curiously it is jeans that have emerged as a symbol of this deflationary race as major retailers roll out dirt-cheap denim in bids to undercut each other.

Fast Retailing, which operates the Uniqlo casual fashion chain, started the phenomenon in March when it said it it would start flogging jeans for 990 yen (about $11) a pair at its g.u. stores.

Back then, this was widely seen as an astoundingly cheap offer -- the price was around a quarter of  some jeans sold at Uniqlo, a chain known for its competitive pricing. The 990-yen jeans drove up sales at g.u., which had suffered from little consumer recognition until that point.

And the move sparked a round of tit-for-tat discounting, that this week continued with supermarket operator Seiyu, a Japanese unit of Wal-Mart, starting to sell jeans for 850 yen. "We would like to keep our price leadership," a Seiyu spokeswoman said.

The trend could also indicate that deflation in Japan is worse than government statistics show as this kind of price competition is not fully reflected in official figures.

Where will it stop? Who knows, but I reckon denim prices can be stretched a bit further yet.

Photo credit: REUTERS/Eriko Sugita

Consumer product manufacturers and retailers have a relatively sharp eye for cost-cutting, speed and expanding into new markets, a report released on Thursday showed.

Sixty two percent of consumer and retail firms see additional opportunities to lower costs in their supply chains, compared with just 48 percent across all sectors, according to Ernst & Young’s Opportunity in Adversity research.  That means cuts above and beyond the trimming that has already been completed.

Of course, many companies in the consumer and retail space have been able to navigate the recession better than the overall business world since people still need to eat, drink and — occasionally, these days — buy clothes and shoes.  At the same time, manufacturers in the space face the added pressure of retailers cutting back inventory levels as they try to boost margins.

Others have also seen consumer industry companies taking a closer look at their supply chains.  Carlos Niezen, head of Bain & Co’s purchasing practice, told Reuters that smarter firms take a step back to see if they can revise their cost structures, rather than just looking for quick fixes to trim spending in the short term.  Still, in a Bain survey of 60 executives from various industries earlier this year, 85 percent said they lacked best-in-class purchashing capabilities at their companies.

Ernst & Young’s report was based on responses from senior executives at 39 global companies in areas such as food, beverage, tobacco, personal products, apparel and retail.

It showed that 79 percent have undertaken a review of their current cash management and cash flows, versus 73 percent of the overall tally from 569 firms across a wide range of businesses.  The survey was completed in June.

As they look for ways to drive growth, 56 percent of consumer companies planned to accelerate the time it takes to get products to market, compared with just 30 percent of the overall group.  Consumer and retail respondents were also more likely to say they would expand into new geographical markets compared with the larger pool.

(Photo/Reuters)

Check out the continuing struggle in the retail world.

U.S. retailers reported disappointing sales declines for July, suggesting shoppers are still searching for bargains and basics in the downturn.    

July’s results mark the 11th consecutive month of falling sales at stores open for at least one year, a measure known as same-store sales.

Rising unemployment, cool weather and a lack of tax-free holidays like those held last year disheartened shoppers, who bought just daily essentials last month.

Still, some companies like Gap and Macy’s managed to forecast better-than-expected earnings for the quarter, as they managed their expenses better.

But retailers’ true test?  September, according to one analyst.

“The true month to watch will be September because it will mark the first month that started the streak of negative same-store sales in 2008,” said Jharonne Martis, senior research analyst with Thomson Reuters.

Also in the basket:

Jeweler Finlay files for bankruptcy, to liquidate

Wendy’s/Arby’s post profit, sees better July trends

Macy’s sees second-quarter profit above Street, shares rise

What’s in a wool? The secret of Loro Piana - (WSJ, subscription required)

(Reuters photo)

Check Out retail strategy for growth.

A list of the top 10 companies from a “Hot 100 Retailers list” compiled by Planet Retail for the National Retail Federation showed that while a few companies grew organically, most grew as a result of a merger or acquisition.

Topping the list of companies that grew through a deal was DineEquity,  which bought Applebee’s last year. 

Others in that category include Susser Holdings after its purchase of Town & Country Food Stores and Village Market grocery stores, as well as the combination of fast food chains Wendy’s and Arby’s into Wendy’s/Arby’s.

Of the companies that grew on their own, Los Angeles-based American Apparel was “tops,” with revenue growth of 57.6 percent, the list showed.

Another not-so-surprising name in the top 10 was Apple, known for its iPod, Mac computer and one of the latest favorites in the market — the iPhone. “Still opening new locations, Apple also uses its stores as a way to build brand awareness,” according to the survey.

Some retailers actually managed to maintain growth, averaging a 10.8 percent compound annual growth rate, the list showed.  Those on the growth chart include GameStop, Urban Outfitters, Best Buy and J. Crew to name a few.

The Hot 100 Retailers study is the annual ranking of the fastest-growing publicly traded retail chains, and rankings are decided by increases in year-over-year revenues between 2007 and 2008.

Here’s the list of the top 10 companies in the Hot 100 Retailers List:

1.       DineEquity

2.       American Apparel

3.       Susser Holdings

4.       A&P

5.       Apple Stores/iTunes

6.       Wendy’s/Arby’s Group

7.       O’Reilly Automotive

8.       Finlay Enterprises

9.       The Pantry

10.     Amazon.com

Also in the basket:

Molson Coors profit jumps more than expected

Tyson profit led by chicken, shares higher

Equities too hot for their own good?

(Photo/Reuters)

Japan is back in deflation, and price falls look like gathering pace as shoppers' bargain-hunting leads stores to cut prices further to weather the worst retail slump in decades.

Retailers large and small reported hard falls in quarterly profits last week, and the few bright spots were focused on those drawing in thrifty shoppers with their cheap but well-made goods.

Fast Retailing tops the list, as its Uniqlo stores thrive in tough times by selling T-shirts for $10 -- that's cheap here -- and other clothing at similar bargain prices. The company is also seeing strong sales growth at its other basic apparel chain g.u.

g.u., the cut-rate sibling of already-cheap Uniqlo, had a low profile for years but shoppers started flooding in after it slashed prices across the board and started flogging $11 jeans and $5 T-shirts this year.

Shoe retailer ABC Mart, which also saw solid growth in its quarterly profits, said its sales of heeled sneakers jumped three-fold after it lopped almost 50 percent off the price-tag back in spring.

Even convenience stores, which had been thought to be pretty well immune to price competition, are starting to cut prices. Seven-Eleven, Japan's largest chain, has marked down some household items like shampoo recently.

The trend is likely to intensify.

Japan's second-largest retailer, Aeon Co Ltd, said it planned more markdowns to plug a hole in its sales. The operator of Jusco supermarkets is one of the most aggressive in expanding cheap in-house brands and marking down national brands.

This is deflation in action. The stores hope that by dangling cheap price tags, they will raise their total sales as customers flood in and buy more items each. This puts added pressure on suppliers like food makers and household goods companies, already pushed hard by retailers to bring down their prices. And then shoppers hold back spending in the hope of even cheaper prices.

All this gives the central bank and the government major headaches as they try to break the downward spiral in prices that has dire consequences for businesses, employment and the economy as a whole.

They've got their work cut out though, and some retailers aren't that sympathetic.

An executive at one major retaling group told me he didn't think his firm's demand for further price cuts would hurt its suppliers.

"Look at how much profit they make," he said rather grudgingly.