Check out the latest news on U.S. retail sales.

The trend was pretty much the same as it has been lately — most chains posted declines in August sales at stores open at least a year, or same-store sales.

However, many declines were not all that bad and there were a handful of increases, which could be a sign that consumers are really back to shopping.

Target and Gap, for example, posted drops that were not as steep as anticipated.  Aeropostale and TJX both saw sales rise more than expected.  Still, others fell short.  Abercrombie & Fitch, Rite Aid, Children’s Place and others were among those whose sales declined more than Wall Street predicted.

Now all eyes turn to what demand will be like for the holiday season.  Sure, it’s still summer, but it’s getting chilly out there.  We’re sure retailers would love it if you went out and bought a new sweater or coat.  Or five.

(Reuters photo)

Also in the basket:

New U.S. jobless claims fell last week

Del Monte profit tops estimates

Family Dollar sales miss goals, shares plummet

US drugstore clinics should get flu season lift

A Decade Sophisticated but Louder (NY Times)

People have been worried about the H1N1 flu, aka swine flu, for months but the vaccine for that flu is not expected until at least mid-October.

So, for the time being, we’re taking a look at how the three major U.S. drugstore chains are preparing for the seasonal flu, which is responsible for about 36,000 deaths in the United States each year.

A survey conducted by Walgreen in mid-August found that 50 percent of consumers plan to get a seasonal flu shot this year, up from 43 percent who say they got one last season.  Twenty-seven percent of respondents to the online poll said they were more concerned about getting the flu than they were a year ago. 

Another poll found more than 60 percent of Americans plan to get the H1N1 flu vaccine.

CVS is putting the biggest dollar figure behind its push, unveiled on Monday, offering $3 million worth of seasonal flu shots to the unemployed this season.  That’s 100,000 shots.

Walgreen has another lofty number in mind — 5 million.  That is the number of vaccinations the largest drugstore chain by revenue wants to administer this season.  Last flu season, it handled 1.2 million shots and nasal spray flu vaccinations.

Walgreen said it would give vouchers for $1 million worth of flu shots, or 40,000 of them, to uninsured consumers.  Walgreen is also asserting itself as having the largest U.S. retail network of immunizers, with 16,000 able to administer the shots. Last year, only 7,500 of the company’s pharmacists could do so, a spokeswoman said.

Rite Aid, the smallest of the three chains, said it has more than 2,000 certified immunizing pharmacists on hand at more than 1,500 of its 4,800-plus stores.

Pricing for shots will vary.  Walgreen is promoting its flu shots at $24.99, while CVS and Rite Aid each priced their shots at $30.

(Reuters photo)

Check out June same-store sales at drugstore chains.

Walgreen Co and Rite Aid both reported sales at stores open at least a year, pointing to shoppers filling more prescriptions but buying less discretionary summer merchandise. Walgreen said same-store sales in June rose 3.4 percent, while smaller rival Rite Aid saw sales slip 0.6 percent.

Economists and analysts had previously pointed to signs the recession may be nearing an end, but the news is still mixed as the number of jobs cut in June was higher than expected and the unemployment rate rose to 9.5 percent.

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Polo extends deal to dress US Olympic teams

If You Gave a Fashion Show and No One Came … (Wall Street Journal)

Luxury-Goods Makes Brandish Green Credentials (Wall Street Journal)

(Reuters photo)

Check Out some weakness in book and drug stores sales.

Borders dumped Chief Executive George Jones less than three years after he joined the No. 2 U.S. specialty bookseller, replacing him with a private equity executive with experience turning around ailing companies. The company, which reported a sales decline of almost 12 percent during the holiday shopping season, also named a new chief financial officer as well as replacing its executive vice president for merchandising and marketing.

In November, Borders said it was no longer pursuing a possible sale of the company even as it posted a larger-than-expected operating loss.

Meanwhile, same-store sales at drug stores were not what those retailers were hoping for. Walgreen, which saw sales at store open at least a year rise 4.9 percent in December, said shoppers focused on basic necessities, while staying away from seasonal items. Rite Aid’s same-store sales in the same period slipped 0.2 percent.

President-elect Barack Obama plans to propose up to $310 billion in tax cuts as part of his massive economic stimulus package in an effort to help the U.S. economy escape its recession.

Also in the basket:

LG, Netflix to launch TVs with instant movie viewing

China’s young generation gets thrifty in gloomy economy

China maker Waterford Wedgwood calls in receivers

Consumers to Pare High-Tech Purchases (Wall Street Journal)

The Coming Fallout: Who’s Vulnerable? (WWD)

(Photo/Reuters)

(Due to a tabulation error in the research, STORES Magazine has issued a corrected list. This is being corrected to remove Coldwater Creek from the Top 10 list and replace it with Citi Trends at No. 10) 

Though the retail industry cooled last year to its slowest growth since 2002, a number of retail companies experienced fiery growth, according to the National Retail Federation. The hottest retailers, in general, grew through acquisitions, according to the trade group’s STORES Magazine.

NRF’s 2008 Hot 100 Retailers list, which will be included in STORES’ August issue, ranks the nation’s fastest-growing retailers that are publicly traded and have more than $100 million in annual sales.

Topping the list this year is CVS Caremark, which grew 2007 revenue by 74 percent because of its acquisition of Caremark. The No. 2 spot also went to a drugstore chain — Rite Aid, which purchased Brooks Pharmacy units in New England and Eckerd on the East Coast, saw revenue grow narly 40 percent. IHOP, which recently changed its name to DineEquity Inc, was No. 3 with last year’s purchase of Applebee’s.

WalMart, the world’s largest retailer, clocked in at No. 80, with 8.6 percent growth. Its mass market rival Target Corp, brought up the rear at No. 100, with 6.5 percent revenue growth.

Here is a list of the top 10 retailers, according to STORES Magazine: 

          1. CVS Caremark

          2. Rite Aid

          3. IHOP

          4. Amazon.com

          5. American Apparel

          6. GameStop

          7. BJ’s Restaurants

          8. Chipotle Mexican Grill

          9. FTD

          10. Citi Trends

     (Photo: Reuters)

Check out how generic drugs cut into June pharmacy sales at Rite Aid.

The No. 3 U.S. drugstore chain said its pharmacy same-store sales fell 0.5 percent, as generic drugs were introduced and allergy medicine Zyrtec was switched to over-the-counter status.

Generic drug rollouts hurt rival Walgreen as well. That company said a day earlier those drugs cut into its pharmacy same-store sales by 2.1 percentage points. 

Drugstores, in general, have been facing more competition from grocery stores and discounters like Wal-Mart, which have been offering discounts on a slew of prescription drugs.

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Adidas eyes 6,300 stores in China by 2010

Blockbuster may do Circuit City deal later (New York Post)

Circuit City faces tough road but Chapter 11 not near

(Photo: Reuters)

Check out the quarterly results at Walgreen, one of the largest U.S. drugstore operators.

The company posted a 2 percent increase in quarterly profit, amid a weak U.S. economy and slowing growth in sales of prescription drugs —  in the reported quarter, Zyrtec was switched to over-the-counter status.

And a slower-than-usual flu season — (good for you and me) – wasn’t so good for Walgreen. The company also pointed to the milder flu period for a slowdown in prescription drug sales volume in the quarter.

The company said it is on track to beat its goal of opening 550 new drugstores this year — and perhaps even come to the rescue of cash-strapped shoppers in the process.

“We’re adding neighborhood locations for today’s customer who is searching for value and struggling with high gas prices,” President Greg Wasson said in a statement on Monday.

As of May 31, the company operated 6,727 store locations in 49 states, but will be in all 50 states when it opens its first Alaska stores in 2009.

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Bunge to buy Corn Products for $4.4 billion

Costco plans Australia foray to challenge duopoly

Busch family member backs ’strong’ Anheuser Busch

Jones Apparel takes stake in Asian partner

(Photo: Reuters)

Check out the latest thing at the local drug store: at-home paternity tests.
 
Drug stores have long sold condoms and pregnancy tests. The next natural step may well be the Identigene DNA Paternity Test Collection Kit, which is now being sold in Rite Aid’s 4,363 drug stores in 30 states and the District of Columbia. (The kits are not available in New York because New York State requires a court order for paternity test, a Rite Aid spokeswoman said.)
 
“Over-the-counter sales offer a completely new marketing channel for DNA testing,” Identigene Chief Operating Officer Doug Fogg said in a press release. “It makes the process more convenient and affordable while ensuring reliability and confidentiality.”
 
The press release also offered this account from an actual user:
 
“Because of my personal circumstances, the day I left the hospital after my son was born I turned in case papers for a paternity test,” said Natalie Maynes of Vancouver, Wash. “Two months went by with no word, so I called. They told me with their waiting list, test results could be up to six months away. That night on the news, I learned I could buy an Identigene DNA Paternity Test Collection Kit at Rite Aid. Taking samples was easy, and it was nice to be able to do it ourselves. Five days later, we had our results.”
 
The suggested price for the test kit is $29.99 and the laboratory processing fee is $119. Test subjects collect a DNA sample by rubbing a swab inside their mouths. The samples are then sent to Identigene for processing.
 
Paternity tests may seem more the province of tabloid television staples like “The Maury Show” but for Rite Aid, offering the tests is a way to be competitive in the drug store business.
 
“Our goal is to be first to market with innovative health care products,” Rite Aid spokeswoman Cheryl Slavinsky said.
 
For Identigene, it’s about meeting a need, as found when the company test-marketed the kits in three states beginning in November.
 
“We learned that people are extremely receptive to the idea of purchasing a DNA paternity test kit while shopping at one of the nation’s leading drug store chains,” Fogg said.
 
Also in the basket:
 
Walgreens rolls out casual gear (WWD, subscription required)
 
Charlotte Russe sees Q3 profit below Street estimates