Deciding where to spend the remainder, if any, of this month’s paycheck?

J.C. Penney is making its case for why you should be heading to its stores.

At the department store chain’s annual analyst meeting in New York, Penney discussed the steps it is taking to win consumers’ hearts (and their money).

One of the steps highlighted: A chance for its rewards program customers to meet country music band Rascal Flatts, which recently topped U.S. pop album charts with its album called “Unstoppable.”

The band, which is being sponsored by Penney on a “Rascal Flatts American Living Unstoppable Tour”  will promote Penney’s American Living brand.

Penney moved its meeting from Plano, Texas, to New York City this year, saying it knew what tight budgets at Wall Street firms have done to analysts’ travel plans. To make them feel good, the retailer handed out CDs of Rascal Flatts’ Unstoppable album at the meeting venue. 

(Photo/Reuters)

Check Out Wal-Mart’s fourth-quarter results.

The world’s largest retailer posted a quarterly profit that topped Wall Street’s expectations, as it enticed U.S. consumers trying to conserve cash in the recession. The company’s performance was “exceptionally strong” in the fourth quarter and through the year, its chief executive Mike Duke said in a statement, adding that he expects the momentum to continue.

Wal-Mart has outdone its competition in recent months, taking advantage of consumers’ desires to pay as little as possible for essentials such as food and gas as they face job losses, weak home values and tighter access to credit.

The retailer’s results stuck out as a bright spot on a day when U.S. stocks crumbled, with the S&P 500 dropping below the 800 mark, on worries that the recession is worsening and that efforts to prop up the ailing global financial system may not be sufficient.

Also in the basket:

ConAgra stands by strong 2009 profit forecasts

L’Oreal fights back with cheap creams, cost cuts

Bounty puts a new spin on spills - WSJ

(Photo/Reuters)

The fallout from the turmoil on Wall Street will be felt by retailers who have set up shop on one of Manhattan’s most prestigious avenues - Fifth Avenue.

In the past week, Lehman has failed, Merrill Lynch agreed to be acquired by Bank of America, and the government had to step in to keep giant insurer AIG from failing.

It has created chaos on Wall Street and expectations of thousands of impending job losses. In August alone, New York City’s securities companies axed 10,000 workers.

It is the exact opposite of what retailers needed headed into what is expected to be one of the worst holiday season in years.

In a research note, Goldman Sachs highlights which retailers may fare the worst.

Wall Street’s financial turmoil heading into the holiday season is likely to negatively impact key NY centric retailers with meaningful flagship
presences.

Saks and Tiffany top the list with each of their flagships accounting for 20% and 10% of total sales, respectively. These key stores have been outperforming an already weakened store base as tourism has provided a bright spot. In light of a dampened worldwide wealth effect and strengthening dollar, more modest tourism gains should provide less of an offset to today’s worsening domestic demand.

….Luxury retailers and brands such as Coach, Nordstrom, and Ralph Lauren, are likely to also be pressured this season as waning Wall St bonuses and volatile equity markets erode confidence at the high end. While their NY flagships (Nordstrom is not in NYC) do not carry the same significance as those of Tiffany and Saks, we expect results to be impacted nonetheless

(Photo: Reuters)

Check out the gloom wafting out of Omaha.
 
Warren Buffett told CNBC that the U.S. economy is unlikely to improve before 2009 and that shareholders in Fannie Mae and Freddie Mac could be wiped out.

That’s the latest unglad tiding for retailers looking at an     already bleak holiday season.

Buffett also said that the struggling economy and credit crisis has laid bare some of the problems with Wall Street.
 
“You always find out who’s been swimming naked when the tide goes out. We found out that Wall Street has been kind of a nudist beach,” Buffett said.
 
The Sage of Omaha also said he support Barack Obama for president.
 
Wonder whose support  carries more weight: the one from the man Forbes magazine called the world’s richest person, or Oprah’s?
 
Also in the basket:
 
AnnTaylor profit beats estimates
 
Gap profit beats Street, PacSun disappoints
 
CVS set to roll out luxury beauty units (WWD, subscription required)

(Reuters photo of Buffett)

Check out why Heinz didn’t suffer like Hormel did in the past quarter.

H.J. Heinz came in with a quarterly profit that beat Wall Street expectations, helped by price increases and new product sales, while Jennie-O turkey seller Hormel Foods saw its earnings dip.

Food companies have found it tough going as commodity costs shoot up, but Hormel was particularly hard hit. The reason? It raises the turkeys that it eventually sells — meaning spiking corn feed costs hurt its results. 

Also in food news –  Burger King reported quarterly numbers that easily beat analysts’ expectations, as consumers headed to its restaurants for a burger or two. It also issued a fiscal 2009 outlook within Wall Street’s expectations.

On the apparel end, Children’s Place posted a small quarterly profit, helped by summer clothing sales and cost cuts. Still, the kids’ apparel retailer said it expects further pressure on consumer spending due to the weak U.S. economy.

To round up news in the sector, Kohl’s Corp, a mid-tier department store operator, named its president Kevin Mansell as its chief executive, replacing Larry Montgomery, who will remain the company’s chairman.

Also in the basket:

Skechers says still wants to buy Heelys

Shareholder aims to thwart Longs-CVS deal - NY Post   

Tesco completes 605 mln stg of property deals

(Photo: Reuters)

Dr Pepper Snapple Group debuted on the New York Stock Exchange Wednesday after being spun off from British candy and gum company Cadbury. 
 
The company is putting together a five-year plan to improve its business in Latin America, but its main focus will be on selling more drinks in the United States, Chief Executive Larry Young told Reuters.
 
Unfortunately, that might not be what Wall Street wants to hear.
 
Dr Pepper’s exposure to the sluggish U.S. soft drinks business could hurt growth.
 
 ”The firm has a mixed stable of brands, lacks the scale and product portfolio breadth enjoyed by larger rivals Coke and Pepsi, and relies almost exclusively on the mature and highly competitive U.S. market,” Morningstar analyst Mitchell Corwin said.
 
Still, Young says the company’s brands will take care of themselves.
 
“We have great brands, great people and are focused on delivering great results,” he said. “We’ll let the market take care of the price.”

(Reuters photo)