Shop Talk

Check Out Line: It was the best of times, it was the worst of times…

Check out the tale of two cities in the retail world.

We are in the heart of the earnings season and every day brings reports that offer grist for both sides of the argument about whether the recovery has begun.

For the optimists, we have sports clothing and footwear maker Under Armour, which posted a stronger-than-expected quarter and raised its outlook, and yoga clothing and athletic gear maker Lululemon Athletica, which raised its forecast.

Meanwhile, DineEquity, home of the Rooty Tooty Fresh ‘N Fruity breakfast at IHOP, topped Wall Street’s expectations due to lower costs, and better sales and more efficient staffing allowed outdoor gear retailer Cabela’s to post stronger-than-expected earnings.

On the other side of the tug-of-war, pessimists can point to VF Corp. The maker of such brands as the North Face, Vans, Wrangler and Lee missed analysts’ expectations and said consumer spending would remain challenged.

Meanwhile, Winn-Dixie posted a wider loss and gave a weak 2010 outlook as recession-hit consumers shopped for fewer items on visits to the supermarket chain, and Limited Brands, the operator of the Victoria’s Secret and Bath & Body Works chains, warned that its October sales are trending below expectations.

The market weighed in as S&P 500 index futures edged higher on Tuesday as better-than-expected earnings offset worries that the market’s seven-month rally was reaching its end.

Starbucks’ cafe-to-market coupons

Starbucks cafes in the United States are handing out a limited number of coupon books designed to drive its cafe customers to grocery stores where the coffee chain’s ice cream, bottled drinks and coffee beans are sold.

“We started in the coffee aisle. But the other aisles got jealous. So now, we’re all over the grocery store,” reads the little brown book of coupons, available now in company-operated stores.

The books include discounts like $1 off ice cream pints, $2 off bottled Frappuccino drinks or $1 off 10- or 12-ounce bags of coffee.

Licensed stores, such as those operated in grocery stores and book stores, will get the coupon books on Friday, Starbucks spokesman Alan Hilowitz said.

The company said its latest effort is an “evolution” of its long-standing efforts to promote cafe products in grocery stores, and vice versa.

For example, when the company launched its new daily brew Pike Place last year, grocery shoppers who bought a bag of the new blend got a coupon code at check-out that entitled them to a $5 Starbucks gift card.

Similar efforts are percolating overseas.  In Switzerland, Starbucks is giving away a voucher for a free espresso beverage with packages of coffee purchased in supermarkets. The promotion will travel to the United Kingdom, France and Germany later this year.

Check Out Line: Supermarket food vs. restaurant fare

Check Out Americans’ dwindling faith in supermarket food.

A higher percentage of people doubted the safety of supermarket food in 2008 compared to 2004, even as a larger, but steadier, number continue to have qualms about what they eat at restaurants, according to a study by market research firm NPD Group.

The study’s results come as U.S. consumers cut back on restaurant visits and head to stores to buy items toward cooking more meals at homes to save money.

As supermarkets offer more prepared meals to cater to such cash-strapped consumers, they also face more questions about how the food was handled until it was served up, said Harry Balzer, chief industry analyst at NPD.

In 2008, 63 percent of Americans felt that supermarket foods were safe — same as 2007, but a 5 percent drop from 2004.  In contrast, while only 48 percent of those surveyed in 2008 agreed that restaurant fare was safe, that was only 1 percent below 2004.

“I believe that consumers’ slipping confidence in the safety of supermarket food is less about food safety and more about supermarkets expanding food service operations and offering more prepared, ready-to-eat foods,” Balzer said.

Consumers’ top worries – Salmonella and E. Coli. Eighty percent of the roughly 13,000 adults surveyed put those two as their top safety concerns in 2008.

It’s 4:15 – do you know what your dinner is?

If you’re broke and in a hurry, Supervalu — the owner of grocery chains like Lucky, Albertsons,  Shop ‘n Save and Shaw’s – has your number and it’s 4:15.

The third-largest U.S. supermarket operator is setting up stations in its produce, meat and deli departments that feature the fixings for fast, easy, home-cooked meals that can feed a family of four for less than $15.

“Research shows that most people don’t know at 4 o’clock what they are having for dinner that night, and in many cases, these hurry-up meals result in less-than-balanced and more expensive food choices,” said Jim Smits, Supervalu’s group vice president of fresh foods merchandising.

“We wanted to make it easier for our customers to answer that inevitable ‘what’s for dinner’ question by providing them with simple, convenient, affordable ideas for creating a real home-cooked meal,” Smits said.

The 4:15 program is part of the company’s “Simply Good Meals” campaign, which targets shoppers who are looking to save money on food by cooking at home.

(Photo\Supervalu)