Amazon.com shares hit all-time high on “Cyber Monday”
NEW YORK (Reuters) – Shares of Internet retailer Amazon.com Inc (AMZN.O) hit an all-time high of $135.01 on a split-adjusted basis on Monday as the stock rose more than 2 percent.
The run-up in the shares comes on “Cyber Monday,” a day billed as a search for bargains on the Internet after the Thanksgiving Day holiday weekend.
(Reporting by Ellis Mnyandu; Editing by Padraic Cassidy)
Shoppers spent less over Black Friday weekend
By Nicole Maestri and Brad Dorfman
SAN FRANCISCO/CHICAGO (Reuters) – Consumers spent significantly less per person at the start of the holiday season this weekend, dimming hopes for a retail comeback that would help propel the economy early in 2010.
The lackluster spending could pressure retail stocks on Monday as some investors were looking for a stronger showing compared with a year earlier, when consumers were being hammered by the recession and credit crunch.
“There may be a bit of a pullback, a little disappointment,” said Patricia Edwards, chief investment officer at Storehouse Partners.
While shoppers turned out in force as early as U.S. Thanksgiving Day on Thursday, many said they had zeroed in on highly discounted items, would buy only what they needed and would walk out of a store if they did not find a good deal.
“Shoppers proved this weekend that they were willing to open their wallets for a bargain,” said National Retail Federation Chief Executive Tracy Mullin in a statement on Sunday. Retail chains “know they have their work cut out for them to keep people coming back through Christmas.”
Store chains that may have done better than their peers include discount retailers like Wal-Mart Stores Inc and Target Corp, teen apparel retailers Aeropostale Inc and American Eagle Outfitters and higher-end chains like Saks Inc, analysts said.
A clearer picture of retail performance will be seen when many U.S. retailers report November sales on Thursday.
Consumers said they will have spent nearly 8 percent less on average, or about $343 per person, over the weekend that includes Thanksgiving, Black Friday and runs through Sunday, according to the NRF.
Traffic to stores and websites rose to 195 million people from 172 million in 2008, but shoppers were focused on buying low-priced items, like $10 toys and $9 books, the NRF said.
Total spending for the holiday weekend rose to an estimated $41.2 billion, up 0.5 percent from a year earlier, NRF said. For a graphic on U.S. holiday sales trends, click here
HOW QUICK A RECOVERY?
Consumer spending makes up roughly 70 percent of the U.S. economy and will help determine how quickly the country can recover from a recession that began in December 2007, said Torsten Slok, an economist at Deutsche Bank.
“The good news this weekend is that consumers are no longer hibernating like they were a year ago, and that in itself is important for the economy,” Slok said, referring to the higher traffic.
The NRF has forecast a 1 percent decline in holiday sales this year, which would mark an unprecedented drop for two straight years after a global financial crisis erupted in 2008.
Total retail sales edged up just 0.5 percent to $10.66 billion on Black Friday, which is often the single-busiest day of the holiday season, ShopperTrak said. Continued…
Shoppers already whetting holiday appetite online
SAN FRANCISCO (Reuters) – Holiday shopping online hit a record for Black Friday, several days before the retail industry-coined Cyber Monday gets underway, as more consumers said they used the web to seek deals.
The strong start for web retailers should continue into what is otherwise expected to be a lackluster holiday season, benefiting Amazon.com, Wal-Mart Stores Inc’s online unit and Google Inc, analysts said.
Analytics firm comScore said Sunday that U.S. online spending on Black Friday was the strongest it has ever been, up 11 percent over the prior year, with $595 million spent online.
Sales at retail stores rose 0.5 percent to $10.66 billion on that day, the official kick-off to holiday shopping, according to ShopperTrak.
“That’s pretty significant in a recessionary environment — to get a record like that and be that far ahead,” said comScore Chairman Gian Fulgoni. “I still expect Monday should be a much bigger day online than Black Friday.”
Cyber Monday is the day when many consumers head back to work after the U.S. Thanksgiving weekend and use fast Internet connections to make holiday purchases, away from the prying eyes of spouses and children. The day has always spurred a flood of special online offers, but this year more are showing up even earlier, experts said.
Forrester analyst Sucharita Mulpuru said she was not surprised by the online strength over the holiday weekend.
“I anticipate this momentum to continue for the next several weeks,” Mulpuru said. “It’s a good sign. It shouldn’t slow down significantly from here.”
Forrester Research has estimated that U.S. online sales in November and December should rise 8 percent this year, up from a 5 percent rise in the year-ago period. ComScore has forecast a 3 percent rise for the period.
AFTER BLACK FRIDAY, THE REST IS ONLINE
Yolanda and Victor Rebagliati were shopping at a San Francisco Old Navy store when it opened Sunday morning for some $5 clothing deals, but said they next planned to head online for an iPod from Apple Inc and a netbook.
“After today, the rest is online!” said Yolanda.
Experts say bargain hunting is driving the online strength. Searches for “Black Friday ads” on Thanksgiving and Black Friday were up 50 percent from the prior year, while those for “Target Black Friday and Walmart Black Friday” were up more than 75 percent in the same period, according to Google Insights for Search.
Online retailers Walmart.com and Amazon have spurred an online price war, and rivals are anxious to keep up, with web deals and free shipping offers advertised from Kohl’s Corp, Toys R Us and Best Buy Co Inc.
Jefferies analyst Youssef Squali wrote in a recent note that Amazon and Google are the biggest likely beneficiaries of the online holiday season — the retailer with its value-priced goods and the search giant that drives traffic to bargains. Continued…
Shoppers spent less over Black Friday weekend
SAN FRANCISCO (Reuters) – Consumers spent significantly less at the start of the holiday season this weekend, dimming hopes for a retail comeback that would help propel the economy early in 2010.
While shoppers turned out in force as early as Thanksgiving Day on Thursday, many said they had zeroed in on highly discounted items, would buy only what they needed and would walk out of a store if they did not find a good deal.
“Shoppers proved this weekend that they were willing to open their wallets for a bargain,” said National Retail Federation Chief Executive Tracy Mullin in a statement on Sunday. Retail chains “know they have their work cut out for them to keep people coming back through Christmas.”
Consumers said they will have spent nearly 8 percent less on average, or about $343 per person, over the weekend that includes Thanksgiving, Black Friday and runs through Sunday, according to the NRF.
Traffic to stores and websites rose to 195 million people from 172 million in 2008, but shoppers were focused on buying low-priced items, like $10 toys and $9 books, the NRF said.
The NRF has forecast a 1 percent decline in holiday sales this year, which would mark an unprecedented drop for two straight years after a global financial crisis erupted in 2008.
Total retail sales edged up just 0.5 percent to $10.66 billion on Black Friday, which is often the single-busiest day of the holiday shopping season, ShopperTrak said on Saturday.
Online retailers, however, enjoyed an 11 percent jump in Black Friday spending to $595 million, with Amazon.com and Wal-Mart Stores Inc’s Walmart.com enjoying the biggest surges in traffic, according to comScore.
Retailers had warned investors they would take a conservative view of holiday sales and have cut inventory and reduced expenses to compensate.
“You’re clearly down on a two-year run rate,” said Bill Taubman of mall operator Taubman Centers Inc. But he added, “margins are going to be extremely good because (retailers) have been careful about what they bought.” For a graphic on U.S. holiday sales trends, click here
DEPARTMENT STORES ATTRACT
Shoppers interviewed across the country by Reuters over the weekend said they were lured by bargains, but would stick to pared-down budgets.
“If they don’t have rebates and sales before Christmas, I don’t think people are going to go back shopping after Black Friday,” said Joel Wincowski, a higher education consultant shopping at a Best Buy store in Plattsburgh, New York. He bought an Xbox 360 game console for $299.
“We’re going to cut back on everybody, even the kids.”
Discount chains like Walmart, department stores and higher-end chains like Saks Inc seemed to have lured more spending and avoided steep discounts, retail consultants and executives said on Sunday. Continued…
Black Friday sales barely up, online surges
By Jessica Wohl
CHICAGO (Reuters) – In a worrisome sign for retailers, data released on Saturday showed that sales rose a scant 0.5 percent on the traditional kickoff to the holiday shopping season despite early signs of a strong showing.
A focus on bargains pulled shoppers into stores and onto websites over the Thanksgiving holiday weekend, but many said they would stick to their budgets and avoid purchases if they could not find a good deal.
Those trends appeared to play out in the results issued by ShopperTrak, which measures customer traffic in stores.
The firm said retail sales rose to $10.66 billion on Black Friday, which often is the single busiest shopping day of the holiday season and can set the tone for the weeks leading up to Christmas on December 25.
In 2008, Black Friday sales measured by ShopperTrak rose 3 percent compared to the prior year’s Black Friday. Last year’s entire holiday season marked the worst performance in nearly 40 years. The firm stuck by its forecast for total holiday sales to rise 1.6 percent this year compared to 2008.
“I figured Black Friday would be up 1 (percent or) maybe 2 percent, just because of the deal-consciousness of folks,” said Patricia Edwards, founder and chief investment officer of Storehouse Partners, an investment advisory firm based in Bellevue, Washington. She noted that early November deals from stores and online promotions also may have diverted traffic.
“It’s possible it took some of the glory out of the Friday number,” she said.
Shoppers spent 35 percent more on Black Friday web purchases than a year earlier, with the average order value reaching $170.19, according to online retail analytics company Coremetrics. Those shoppers bought an average of 5.4 items per order, up from 4.6 items last year, Coremetrics said.
TOUGH HOLIDAY SEASON
Industry executives and analysts have predicted a tough holiday season that may show only a slight improvement over 2008 due to a weak economy and high unemployment.
But their optimism had crept up earlier this week. Analysts polled by Thomson Reuters Data on Friday had increased their forecast for November retail same-store sales to a 2.5 percent increase, from a previous view of 1.8 percent.
The National Retail Federation is due to release its early holiday data on Sunday.
“This will be the hardest holiday season ever to predict,” said Eric Karson, associate professor of marketing at the Villanova University School of Business in Pennsylvania.
Retailers used to offer steep promotions on select items as the initial lure for shoppers, in the hopes they would buy more inside the store. Consumers now expect such discounts as a matter of course.
“We have this big game of chicken now evolving between the retailers and the customers,” Karson said. Continued…
Black Friday sales up 0.5 percent: ShopperTrak
CHICAGO (Reuters) – Black Friday sales rose just 0.5 percent to $10.66 billion after rising 3 percent in 2008, ShopperTrak said on Saturday, a rise that may disappoint investors who had expected retailers to see a bigger boost this year.
ShopperTrak, which measures customer traffic, said shopper traffic was heavy throughout the country on Friday, the kickoff of the holiday shopping season after U.S. Thanksgiving Day.
Last year, Black Friday sales climbed 3 percent to $10.606 billion. That was much slower than the 8.3 percent rise ShopperTrak saw in 2007, before the brunt of the economic downturn set in for consumers.
This year, many retailers offered deals online and in stores before Black Friday, including on Thanksgiving itself.
Online shoppers spent 35 percent more on Black Friday web purchases than a year earlier, with the average order value reaching $170.19, according to online retail analytics company Coremetrics.
ShopperTrak still believes the 1.6 percent increase it originally predicted for the holiday season “remains intact,” Co-founder Bill Martin said in a statement on the company’s web site.
(Reporting by Jessica Wohl; Editing by Peter Cooney)
Retail Chain Optimization With Digital Signage Network
Optimization is a technology for calculating the best possible utilization of resources. Let’s look at how this can be utilized in price optimization in retail sector. But before going any further lets we know why retail chain optimization is necessary. According to AMR Research – some of the early users of application employing modern day [...]
Haagen-dazs’ first cafe coming up in Delhi
DELHI: If you have money to burn, hereâs your scoop: Haagen-Dazs, a super
premium global ice cream brand, will open its first branded cafe in India in the
capital next month. âWe are setting up our first branded café in
Delhi shortly, and as is the case in most global markets, the ice creams will be
imported,â said Arindam Haldar, director at Haagen-Dazs, owned by General
Mills of the US.
The cafe will be opened in the first week of
December at Select City Walk at Saket through a franchisee deal with RTC
Restaurants, which runs restaurant chains Ruby Tuesday and Italian Sabarro in
India. RTC is the exclusive franchisee rights holder for Americaâs
most-loved super premium ice cream in India.
âDepending on the
response we get with the first Haagen-Dazs branded cafe, we would like to set up
similar such cafes in the country,â said Gaurav Jain, director at RTC. Mr
Haldar declined to comment on the brandâs expansion plan.
A person
close to the companyâs plans said Haagen-Dazs could be setting up a
combination of large-format cafes and smaller kiosks, with a national footprint
of 30-40 such outlets over the next few years.
As of now, the brand
is available in limited select stores such as Sugar & Spice in Delhi, and
Natureâs Basket in Mumbai, apart from few 5-star hotels. It sells ice
cream bars, sorbets and frozen yogurt. Its existing prices range from Rs 185 for
a 100-ml serving, to Rs 625 per 500-ml carton.
The super-premium ice
cream segment has not yet been tapped in India. In fact, Nestle, which owns the
premium Movenpick ice cream brand globally, has not brought the brand to the
country on account of the limited size of the category.
But
Haagen-Dazs is confident, after its grand success in China where it operates 80
stores across 20 cities to huge fanfare particularly among young professionals.
When it debuted in China in 1996, the market there could have been similar to
todayâs India.
Established by Polish immigrant couple Reuben
and Rose Mattus back in 1961, Haagen-Dazs is today one of the largest super
premium ice cream brands in the world. Itâs the market leader in the US
with about 45% share and is present in 54 other countries.
Starting
with only three flavours â vanilla, chocolate and coffee â the
company opened its first retail store in Brooklyn, NY in 1976. Today,
Haagen-Dazs produces ice cream, ice cream bars, ice cream cakes, sorbets and
frozen yogurts.
The $16-billion General Mills markets Pillsbury atta
and Betty Crocker cake mixes in India, apart from Haagen-Dazs ice cream.
Interestingly, Nestle subsidiary Dreyerâs Grand Ice Cream, Inc, makes
Haagen-Dazs ice creams in the US and Canada although the brand is owned by
General Mills.
Haagen-Dazs ice cream is kept at a temperature that
is substantially lower than most ice creams in order to keep its intended
firmness.
The brand won the Cannes PR Lions award this year for its
campaign at the Cannes International Advertising Festival for its high-profile
campaign to save vanishing honeybees in North America, âHäagen-Dazs
loves Honey Beesâ. The campaign also received recognition with the Gold
Clio title for its Strategic Communications/Public Relations at the global Clio
Awards in Las Vegas, besides several other awards and a huge response from
consumers.
Recession shapes Biyani’s business plan
Kishore Biyaniâs Future Group has not only learnt the recession leasons
but has also decided to implement them for shaping business strategy.
Indiaâs largest retailer has decided to rejig its operations to just six
large formatsâPantaloons, Big Bazaar, Food Bazaar, Central, Home Town and
eZone.
The Future group has also merged operations of more than its
a dozen-odd smaller formats such as Depot, Lee Cooper, Fashion@Big Bazaar, Blue
Sky, Dori, Ethnicity, aLL, Celio, Staples and Navras. It has decided that going
forward, it will expand these smaller ventures primarily through the
shop-in-shop route and not stand-alone stores. This will also be the case for
forthcoming specialised formats.
âAfter the slowdown, we felt
while the smaller formats had potential, opening more stand-alone stores may not
be productive, given the huge investments in setting up the store and in
creating a brand preference among consumers. Hence, weâve decided to focus
on growing them through the large formats we have, including Big Bazaar, Food
Bazaar, Pantaloon, Central, Home Town and eZone,â Future Group director
(customer) Damodar Mall told ET.
Elaborating, Mr Mall said the move
is largely of a strategic nature and will not have any significant impact on top
or bottom line. âIt actually ensures that smaller formats are within our
bigger stores where they benefit from the large number of walk-ins. Our overall
expansion plan continues and we expect to add upwards of 3 million sq ft by next
June,â he said.
Future Group has seen that adding more
categories as shop-in-shops in the larger stores requires far lower incremental
expenses. âIt also helps increase the average billing size in the bigger
stores as well as increase the share of the consumerâs wallet,â said
Mr Mall.
The group had shut down a handful of stand-alone stores of
Lee Cooper and Depot during the slowdown and a couple of other smaller formats.
These stores were set up over an average of 2,000-4,000 sq ft. However, Mr Mall
said since âthe rationalisation was not of a huge scale, the employees of
such stores were absorbed within the group.â
UK bookshop chain Borders goes into administration
Borders has been placed into administration. Photograph: Sarah Lee
The UK bookshop chain Borders was placed in administration today, raising doubts over 1,150 jobs.
The firm, which has 45 branded Borders and Books Etc stores across the UK, has come under severe pressure from internet competition during the past year.
Administrators MCR said the business continued to trade while a buyer is sought for all or some of the company’s stores.
Borders’s future has been uncertain for several days since it emerged that a deal to sell some stores to WH Smith had probably collapsed. On Tuesday it suspended orders on its website.
Since July Borders has been owned by Valco Capital Partners, part of Hilco, which specialises in distressed retailers. On Monday a court in Manchester granted Valco’s request to start the process of naming BDO as administrators.
Borders’s accounts show the company made a loss of £13.6m in 2008, up from £10.3m in 2007. Its auditor, Ernst & Young, raised doubts about its ability to continue as a going concern.
Borders has struggled with “severe” cash flow pressure this year as sales falls accelerated, administrators said.
Stock levels were also hit as several of the company’s suppliers stopped or reduced its credit limits, while a number of credit insurers have also reduced their cover for the firm.
Joint administrator Phil Duffy said: “All stores currently remain open for business as normal whilst the administrators undertake a review of the company’s affairs and seek a purchaser for all or some of the company’s stores in which there has already been interest.
“All outstanding employee wages have been paid up to date and ongoing wages for retained staff will continue to be paid as an expense of the administration.”
He added that booksellers in general had been hit in the current weakened retail market, with competition on major releases from supermarkets and the internet.
Borders first opened in the UK in 1997 and was originally owned by the US book giant of the same name.
But the UK and Ireland arm was sold to buyout group Risk Capital Partners – headed by Channel 4 chairman Luke Johnson – in 2007.
Management, led by chief executive Philip Downer and finance director Mark Little, then bought the group back with financing from Valco Capital earlier this year.
