Who Will Design Kate Middleton's Wedding Dress?

Elva Ramirez was discussing the latest news in England, the wedding between Prince William and Kate Middleton, but more specifically who would design Kate's dress. There were comparisons drawn from the clip explaining that if she were an American princess she would most likely go towards Vera Wang or Oscarde la Renta, two of the top designers for wedding dresses. It was mentioned that designers must be duking it out for who is going to be designing Kate's wedding dress. Some in the past such as Carolyn Bisset Kennedy have chosen non famous designers such as their close friends, which allows them to make a name for themselves. Carolyn was a main reason for Narciso Rodriguez's success.

Who will be designing Kate's wedding dress? Who knows, but i found it interesting because i didn't think about it, but retail, apparel in this case plays such a huge role in so many important events. For example; President Obama's inauguration. There were huge deals about what Michelle Obama was wearing and it continues to come out in magazines and the media. This event is going to be huge for which ever designer get the chance to design Kate's dress.

Information retrieved from:
http://online.wsj.com/video/who-will-design-kate-middleton-wedding-dress/5EACC631-89AE-4C1E-9050-855361351F6A.html?mod=WSJ_Article_Videocarousel_2

-jacky meltzer

Discounters Are Doing Just Fine

The Wall Street Journal reported that TJX Cos.'s earnings rose 7%, revenue increased 5.4% to $5.53 billion, and same store sales increased 1%. President and Chief Executive Carol Meyrowitz also stated that the company's stores have seen an increase in customer traffic.

This is more evidence to support that discounters are the retailers who are seeing success despite decreased consumer confidence resulting from high unemployment and the "sluggish" economy. During this time consumers are still looking for "bargains"and so they shop at "off-price" stores such as T.J. Maxx and Marshalls rather than at luxury department stores such as Nordstrom.

The discount sector of the retail industry deserves some attention because it has been experiencing growth despite the economic slow down, maybe even some investment attention.

http://online.wsj.com/article/SB10001424052748704312504575618413183843870.html?mod=WSJ_hp_LEFTWhatsNewsCollection

Unable to Stretch Further, Apparel Makers Raise Prices

Unless we all want to switch to a different material, it looks like we're going to have to start paying more for clothes as the price of cotton continues to increase. Manufacturers and retailers are scared to make this increase as consumer demand is still back up to where it used to be prior to the recession. Cotton prices have been on the rise for a while, but the industry was extremely hesitant to make the increase along with it. Other industries that utilize raw materials such as rubber, paper, and polyester have been noticing almost identical trends
Retailers like J.C. Penny, Jones, and Carter's Inc. are all discussing ways in which they could avoid the possibility of losing a sale because of the price increase, but there's nothing else that can be done. Retailers with a mix of lines that range in price were hoping to only have to increase prices in the higher price range of apparel, since that target market would notice it less. It'd be a valiant attempt, however, this price increase is too big and has to be dealt with in a bigger way.


Source: http://online.wsj.com/article/SB10001424052702304879604575582673135103404.html?mod=WSJ_Retailing_leftHeadlines

--Leah Stoltz

Wal-Mart Fires Shot in Toy Battle

Toys have always been a huge seller during the holidays mostly because no matter what state the economy is in, parents always end up buying their children toys. Between Wal-Mart, Target, Amazon, and Toy 'R' Us there is big competition this season in the retailing of toys.
When the Wall Street Journal spoke to Wal-Mart about it's price disadvantage, a week later they came out with a new price list where several of the top toys were shown as research.

There is huge competition, there is no doubt. Being as confident as retailers are about this years holiday season, they are doing everything possible to beat their competitors to get the biggest profit possible.
The good thing about this competition is that prices get lowered each time and it turns out to be a a whole lot better for not only the consumer, but the businesses as well because people will end up buying more.

For more information:
http://online.wsj.com/article/SB10001424052748704405704575596920008896164.html?KEYWORDS=Wal-Mart+Fires+Shot+in+Toy+Battle

-Jacky Meltzer

Informational Interview

I interviewed Ben Leigh, who works as a manager of collegiate and grassroots marketing in the brand marketing division at Under Armour in Baltimore.

Leigh is responsible for creating and maintaining relationships with universities and their athletic programs to secure space on the schools' athletic websites and at the schools' athletic events to advertise and market Under Armour products and to ensure that the marketing campaigns displayed at the schools are up to date.

Leigh stated that the company has been hiring more people across all departments because the company has seen growth in recent years. Under Armour offers entry level jobs at the associate level in all departments. While working at the associate level, employees are exposed to many different projects that expose the employees' skills and ambition.

Leigh expressed that he looks for the ability to multitask and adapt to changing situations in job applicants.

Leigh attended the University of Massachusetts Amherst and studied sports management. He wanted to pursue a career in professional baseball, so he participated in summer internships in the minor leagues. He also worked in the sales and marketing sector of children's baseball camps. He found his way to Under Armour and has been working there for three and a half years.

Unable to Stretch Further, Apparel Makers Raise Prices

Apparels such as Hanesbrands Inc, Jones Group Inc. and VFCorp. are now shooting up prices up to 10% for next year because cotton has become more expensive. Many third world countries such as Pakistan, India, and China are big producers of cotton, but being hit by mother nature with several floods, retailers such as these can no longer continue to keep their prices low as their raw materials keep increasing. "Apparel is just one of a number of industries caught between sluggish demand and rising costs for raw materials."


Southeast Asia is one of the largest producers of rubber, but due to the Cyclones and flooding Goodyear Tire & Rubber Inc are beginning to feel the lack of raw materials for their companies.  


Just as we thought retail was getting better because the economy was slowly rising, this happens. You can't beat mother nature. I makes sense that if brands such as Hanesbrands can no longer sell as cheaply as they are now, the only alternative is to raise prices and hope that they don't lose their costumers.


-Jacky


http://online.wsj.com/article/SB10001424052702304879604575582673135103404.html

Food Prices Increase

      Prices in food have been rising tremendously over the past couple of months. Many Americans, scared about this raise in food and about high unemployment, have switched supermarkets, and have avoided going out to eat in order to save money. The price in cereals have raised by 5% in the recent months and companies such as Kraft Foods, General Mills, Safeway, have been having to increase process due to the increase in demand. “Costs are being driven by growing demand for meat in China, India and other emerging markets.” Food prices are all affected by this for if you think about it, grain prices go up, which in turn raise the cost of steak, chicken, bread and pasta. Kevin Srigley, the senior vice president at grocer Giant Eagle Inc., states, “ There is a much stronger sensitivity to price than we have ever experienced, but there are some areas you cant afford not to pass on those costs.”

         
        I agree with Srigley when he states that because it is true- it makes sense that prices are raising if the prices of ingredients are raising as well. Even though companies have to make their pricing reasonable, they still have to sell their goods based on the fact of how much they are spending on getting those goods. Do you guys agree with me on that? Or do you think that even though the demand is high, they should manage to price their goods at the lowest price possible? 

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http://online.wsj.com/article/SB10001424052748704506404575592313664715360.html?mod=WSJ_Retailing_leftHeadlines

Posted by Tania Dabdoub

Sizing Up Property, Mall Stores Try to Shrink

      This new trend has definitely taken me by surprise, I figured a shopping mall was an ever expanding retailer. I know that the mall I shopped at back home always had renovations and expansions going on. However, according to recent trends, many retailers looking at their physical stores in order to fix the problems that the recession has left them with. With expenses like employees, real estate, and excess inventory, it's no surprise in retrospect that this is what retailers have noticed as to where their main struggles lie. 
     Retailers have also noticed that the large stores are not the ideal shopping spots, consumers prefer a "smaller box" because it provides a more intimate and less overwhelming shopping experience. Another advantage to a smaller store is that it forces retailers to choose their goods to place on display with greater selectivity. The reality is, stores do not need such a large expensive space to sell their product. It will be more beneficial to size down in my physical retail spots.
     I believe a vital point that this article is missing however is the consumer angle, the fact that not as many consumers are looking to go to a store to go shopping. They'd rather stay home and shop either on their computer or using a smart phone. Retailers need to continue to keep this factor in mind and expand and invest more into their e-commerce and m-commerce.


Source: http://online.wsj.com/article/SB10001424052748704059004575127711780438090.html?mod=WSJ_mgmt_MiddleSecondHighlights

--Leah Stoltz

Large Retailers Are Tapping the Urban Markets

Reported in the Los Angeles Times, Target is planning to open a store, focusing on the sale of groceries and home basics, in downtown Los Angeles.

Target took advantage of the recent downturn in the real estate market and purchased a space in the 7+Fig mall in Los Angeles to open a new, smaller store. Target feels as though it has been neglecting the urban market that could prove to be a great resource of revenue.

Residents of the downtown area expressed that they would love a Target in the area to be able to conveniently pick up basic groceries during their busy schedules.

Other retailers such as Wal-Mart and Costco are looking to take advantage of the untapped urban market and offer smaller stores that would provide groceries and household basics to a busy working demographic in downtown areas.

This seems to be an a great move in terms of distribution channels for these large retail companies. Building smaller stores that offer the shopping "basics" in highly populated urban downtown areas will make these companies' products more accessible to those who lead busy lifestyles and it will also widen their customer base.

The only challenge these retailers will face is the acquiring of expensive real estate in urban areas.

http://www.latimes.com/business/la-fi-1104-downtown-target-20101104,0,6438689,full.story

Attack of the Tall Dolls

In past generations girls used to play with dolls until the beginning of their teenage years, but research has shown that now girls stop playing with dolls at the age of 7. Disney like Toys 'R' Us are starting to sell taller dolls in order to appeal to the older kids (11 years old) Disney has just come out with Princess Tiana, Ariel, and Cinderella as bigger dolls. It has been researched that the bigger a doll, the more a little girl can relate to it. Dolls are also now coming with more modern clothes and with accesrories such as books in an attempt to reach out to older girls.

I think they are adapting in a very smart way. Research marketing is incredibly important when it comes to this. I have first hand experience watching 7 year old prefer and iphone or ipod than a doll. I think it is going to get very tough for dolls even after this, many challenges arise as the newer generations will all be technology based. Unless these toys become robots within a doll look, I don't see how dolls will continue to exist within the next few generations.

-Jacky Meltzer
http://online.wsj.com/article/SB10001424052702304173704575578291510042572.html?KEYWORDS=retail

Coach Sales, Profit Jump

            Coach Inc.’s sales jumped this past year with a 34% increase on sales and have said that they are ready for the holiday season and beyond. Despite their lower pricing strategies and muted consumer spending, Coach has proved to significantly grow in developing markets. They are extremely thrilled with their success and even have plans to open up more full-priced stores in New York City. Also, because of their increase in sales, they plan to expand in China, where the country “represents the single largest geographic opportunity for Coach”. The article also stated, “Coach posted earnings of $188.9 million from $140.8 million and that revenue jumped 20%.”

            I am actually surprised that their sales have increased because of the fewer amount of consumers buying products in general throughout this bad economy. I would also think that even though they are lowering their prices on their goods that they still wouldn’t increase their sales by much. However, I am proud of their strategies and think that expanding their stores across the nation and around the world will only feed them for even more success. Globalization is said to be one of the most effective factors of succeeding in a business, and I think that Coach will benefit from it.  Do you guys think that they will continue to attract  more costumers to their company, or do you think it will only be a “one-time success”?

View this article at- 

http://online.wsj.com/article/SB10001424052702303390704575575881503013638.html?mod=WSJ_Retailing_leftHeadlines

Posted by Tania Dabdoub

Barnes & Noble Creates E-books for Kids

Barnes & Noble is creating new children e-books for their new electronic reading device called Nook Kids. These e-books will include "enhanced editions of classics," picture books, and novels. These new e-books are geared toward 3-8 year olds and will be available online. The Nook Kids electronic readers will have a touch screen display and some of the children e-books will have interactive elements.

With the changing times and changing technology, I see Barnes & Noble's Nook Kids idea to be a way to keep up with these times and stay ahead of competitors. I think some parents will go for the idea, as the enhanced picture books and interactive features will be appealing to their young children and entice them to read and learn. It also, however, could just be putting a video game in the hands of a child; children may skip over the reading aspect and just play around with the interactive features. In addition, the price of these Nook Kids readers must be reasonable because things put into the hands of a young child do suffer a bit of damage. Parents would not want to spend large amounts of money on something that will be broken in a matter of minutes.

It will be interesting to see how many of these Nook Kids readers Barnes & Noble actually sell. It will be an indication of whether technology has now reached an even younger generation or children classics should remain classics in printed form.

http://online.wsj.com/article/SB10001424052702304354104575568741495194492.html?mod=WSJ_Retailing_leftHeadlines

Happy Holidays to the Retail Industry

The National Retail Federation has been doing some research and has concluded that this holiday season consumers will be more flexible with their spending.

A survey of 9,000 consumers revealed:

- 61.7% said the economy will affect their spending

(declined from 65.3%)

- 41.8% said sales or discounts are "the most important factor in their purchasing decision"

(declined from 43.3%)

- 5.3% said customer service is a "more important factor"

(increased from 4.4%)

- 12.7% said "merchandise quality" is also very important

(increased from 11.8%)

- 57.1% said they will "self-indulging," shopping for themselves

(increased from 52.9% )

- 65.1% said they will doing their holiday shopping at discount stores

(decreased from 70.1%)

Overall, the survey shows that this year consumers will be more lenient with their pocket books when the holidays come around. What does this mean for retailers? Retailers will definitely see a boost in profits from holiday shopping traffic, but they will also have to be creative in attracting consumers to shop. More focus will have to be put on the consumers and their wants because more consumers are valuing quality customer service. Quality control is also something retailers will have to consider.

Although many consumers say they will be shopping at discount stores and that discounts are the most important factor in the decision to spend, there has been a significant drop in the number who will be shopping at these discount stores. Discounters will face competition with more expensive stores to attract consumers to their stores, especially with the increase in the number of consumers who want to "self-indulge" this holiday season. Advertising good product quality and good customer service could be a way to lure consumers.

The survey also shows that people are slowly recovering from the economic downturn. It may be getting closer to the time in which consumers return to "normal" spending habits.

http://online.wsj.com/article/BT-CO-20101019-707102.html

Grocery Stores Increase Ad Spending

            During this bad economy, supermarkets (who are now not the only places to buy the groceries) have been spending their money on advertising to repel competition from drug stores and dollar stores. For example, chains including Pacific tea and Safeway Inc. are lowering their prices on numerous items in hopes to attract more customers. Although these chains haven’t increased their profits by much, they are building up their reputation in terms of being known for their low-priced goods. In today’s society, it is also extremely hard to succeed with these type of companies, for they are also competing with places such as Wal-mart, Walgreen Co., and Target-places that all have grocery offerings at cheap prices. In the beginning of this year, data shows that advertising spending rose 19% to $393.3 million. That portrays a  huge increase in spending within this industry.

            What shocks me is that despite their low prices and increase on advertising, these companies aren’t benefiting much from it. For example, Safeway reports to decline 1.1% in third-quarter sales due to their new strategy. Just as Jefferies & Co. analyst Scott Mushkin states,” Advertising alone is not going to be the magic bullet…they have to marry it with real actions.”

            I believe that his statement is 100% true. This new strategy is effective in a way that it will attract a lot more customers. However, advertising alone won't do the job of bringing success to the company. Companies can’t just have the mind-set that they will prosper because of this strategy. They must continue working hard to find ways to bring more and more people to buy from their stores. I am not surprised that many of these chains haven’t done so well, especially this year, for there exists so much competition. After reading this, do you guys think that it is foolish of these companies to spend so much on advertising even if  there shows no increase in sales, or do you think that over time, they will benefit from it?

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http://online.wsj.com/article/SB10001424052748704763904575550182011131788.html?mod=WSJ_Retailing_leftHeadlines

Posted by Tania Dabdoub

NFL, Nike Stitch Apparel Deal

There are 53 players per NFL football team, 22 total players on the field at one time, dozens of coaches, coaching assistants, and other staff on the sidelines, referees, and not to mention hundreds of thousands of fans. The NFL is a huge enterprise, so for Nike to be able to claim putting their logo on all of the clothing and equipment for the NFL for a designated number of years is probably one of the best investments a sports attire retailer can make. The Nike symbol will be everywhere; the camera zooms in on the players, it's there; and when fans buy a jersey to support their favorite team and player, it's there.
The NFL needed to sell this advertising niche in order to make up for the deficit and increase revenue. One billion dollars was quite the huge investment on Nike's part, but I am positive that it will be a beneficial partnership for both companies. And, personally, I'm looking forward to seeing the new gear that Nike produces in order to support my NY Giants.

Source: http://online.wsj.com/article/SB10001424052748703440004575548144277455632.html?mod=WSJ_Retailing_leftHeadlines

--Leah Stoltz

School Spending Pumps Up Retail Sales

Septembers' back to school shopping was inspired by all of the promotion through coupons and sales. It was much more successful than retailers had planned for so they are hopping that they can expect more sales during the year-end holidays. Sarah Henry, retail analyst at MFC Global Investment Management said that there is usually a strong statistical correlation between back to schools ales and holiday sales. So it is safe too assume that there should be a rise in sales after the October break where not too much shopping is done.

Playing it safe I think Retailers are being smart in not assuming their sales will be so large, they are being realistic, but as much of the news has been saying, we are slowly coming out of this recession, but if there really is such a strong statistical correlation between back to school sales and holiday sales, hopefully they don't begin to assume higher expectations in the future. Better to be safe.

-Jacky Meltzer

http://online.wsj.com/article/SB10001424052748704696304575537732859742138.html

Burberry as a Role Model in the Retail Industry

The designer clothing company, Burberry, has managed to increase its sales and implement effective budgeting strategies in the current global economic environment.

Most of the company's sales have been generated by growth in China; the company now operates 50 stores in China. The company also cut costs by eliminating "unprofitable" items, limiting overstock, and minimizing discounts and expanded its consumer base with the introduction of a ready to wear and a casual line. The company expects positive results in the form of continuous increasing sales in the future.

Other luxury retailers can look to Burberry as a model of how to survive in the current economic environment. Concentrating on what really makes a profit, like global expansion and universal availability, luxury retailers can report positive sales in a time of limited consumer spending.

Burberry has also exemplified that China is a market that retailers should look to. Growth in China has made it a profitable place to do business and it would be advantageous for retailers to look into tapping into the Asian market.

http://online.wsj.com/article/SB10001424052748703673604575549360918756070.html?mod=WSJ_Retailing_leftHeadlines

Holiday Retail Jobs Maybe on Vacation This Winter

According to the NY Times, retailers are warning this holiday season to hold back on hiring for seasonal positions. Having worked in retail, I know that management looks for permanent positions during this time of year, while also using this temporary labor force to fill the greater need for trained associates around the gift-giving season. Much of the risk surrounding the hiring for seasonal jobs is associated with the flimsy prospects retailers are expecting this Christmas, forecasted by a weak back-to-school August and September. 

I think this is distressing for jobs on several levels. Knocking out seasonal retail jobs during the holidays leaves a huge mass of the public expecting to fill the cyclical unemployment for the year. Teens and college students depend on these low-paying hourly wages to supplement the season's trend of spending. Many families also depend on the jobs in retail to supplement other careers in order to pay for the holidays and the worker's families. Without the temporary positions provided by holiday hiring, people are not able to spend more money, thus also effecting the retailers themselves. 

-Colin

http://www.nytimes.com/2010/10/06/business/06hiring.html?_r=1&scp=1&sq=retail%20labor&st=Search

Target Corp. is on the Move

Target is planning to open "six to 10" stores in Canada in "late 2014 0r 2015." This will be the company's first move out of the United States.

Target, however won't be alone in Canadian territory; Wall Mart Stores Inc. has already been established there for 10 years and other stores such as Khol's Corp. and Victoria's Secret also have plans to open stores in Canada.

This is another example of the ever increasing presence of globalization. Corporations are not limited to any one area and are becoming recognizable on almost all of the world's continents.

Could this stretch across the northern border hurt Target Corp? The Wall Street Journal expresses that some problems are "great distances between large Canadian cities and, in some cases, the need for labeling in both English and French." Moving up north to Canada, however "costs less and carries fewer logistical risks than overseas expansion."

This may be a good way for Target Corp to see how it can operate in another country and to measure if it would be successful over seas.

http://online.wsj.com/article/SB10001424052748704689804575536273265184134.html?mod=WSJ_Retailing_leftHeadlines

Retailers to Challenge Amazon

Many retailers are now coming together to retaliate against Amazon.com Inc. by working with ShopRunner to get rid of shoppers' biggest concerns that waste more of their money: shipping costs. Working with ShopRunner, they are offering FREE 2-day shipping. This company is mostly working towards the costumers that wills pend the most. "-U.S. e-comerce market, one of the fastest-growing parts of the U.S. retail. Mike Golden, President of Shop Runner Inc. said his market research would appeal mostly to those who buy at least eight times in a year from retailers. Unfortunately I cannot find how ShopRunner is doing this business between all of these huge retailer companies because they are not revealing much information as of now.

Its evident that consumers have now come to expect free shipping on most online purchases, at least when they spend up to a certain point. I can personally say how outraged i get when I have to pay for shipping. I have grown accustomed to buying many different things online from usually and almost every time from Amazon.com. the reason i chose to talk about this article is because when we had out last guest speaker, the Leadership one, he referred to Amazon and how Barns and Noble hasn't yet had a comeback for Amazon because Amazon has been such a hit with the consumers that until now there is real competition. It will be interesting to keep track of how sales for for ShopRunner in the future and how Amazon's cliental shifts in the next few months/years. I personally think that Amazon will continue taking the lead in retailer shopping online because aside from free 3-5 day shipping it is also beginning a new program that if you do a free trial of it you receive your shipment for FREE 2 day shipping. Also I think that by placing other cheaper products on the side that recommend you to other sites, it ultimately helps the consumer get the same product for a cheaper cost. 

-Jacky Meltzer

Market Place section in the New York Times

Article: Retailers to Challenge Amazon

Dozens Including Babies 'R' Us, PetSmart to Combine Forces to One-Up 'Prime' Shipping Service

Vans to Roll in Brooklyn

   Later this month, Vans Inc. is planning to open a private skateboard park inside a Brooklyn warehouse. They opened it in hopes to “beef up Vans’s presence in New York and the East Coast.”  It will only be open to skateboarders endorsed by Vans, but there will be some opportunites in which outsiders can get inside the park and use it as well. It opens on October 16^th, where people will get to see a brand new skateboarding course, and a set of stairs and handrailings for skaters to slide down. They are creating this with a desire to expand to the eastern part of the U.S.

   I do think what they are doing is a great idea, for it will be a good strategy to attract customers to their brand. Although it does require a lot of money to build this warehouse, it will hopefully all be worth it in the end. This is a fantastic way for Vans to spread out in different parts of the country and will make it easier for them to make their brand known.  Some may argue that this investment might be a little too pricey to make known their company, but people cannot judge too quickly. All companies do start slow in the beginning, but can quickly speed up their income by attracting more and more people. They also stated that this warehouse will also be hosting events for artists and magazines. Thus, it will be easier for Vans to persuade people to buy their brand. Because of the bandwagon theory that says that people follow popularity, it will apply in this case as well. Once artists use Vans, people will get the idea that they need them as well, and will start buying for themselves. It is also a creative way of advertising. Instead of just doing commercials or using billboards to spread their company throughout the US, they decide to create something entertaining and fun that relates to their brand. Skateboarding is a big trademark of theirs, and so the idea here is that those people endorsed by Vans can skateboard with their shoes. I find it extremely brilliant because not only are they attracting people with their brand, but doing it in a way in which they can be a part of a "skateboard community." I do find success in their business, and believe it will benefit them in a very short period of time. What do you guys think? Do you agree with me that this creation of a skateboard park will work to their advantage? Or do you think that it is a waste of time and money? 

View this at -

http://online.wsj.com/article/SB10001424052748703735804575536301767321986.html?mod=WSJ_Retailing_leftHeadlines

Posted by Tania Dabdoub

Target Explores Canadian Locations

Target is a huge nationally known company, and it shocked me at first to realize it hasn't moved beyond our country's borders yet. That might change within the next couple years as Target execs have met with Canadian real estate developers to discuss possible development locations. Target will be facing some familiar competition in Canada because Wal-Mart stores have been present in the Canadian market for over a dozen years already, however, it will also have to compete against Hudson's Bay Co. with its The Bay and Zellers chains.  The article explains a couple problem that present itself in the Canadian market which explains why it's taken so long for many companies to expand into our northern neighbor such as the large distance between most large Canadian cities and the need for bilingual labels because of the many French speaking areas.
However, crossing the border to the north is much easier and beneficial than going overseas because it will cost less and carry fewer logistical risks. Many other companies are taking part in this expansion idea as well. Marshalls, Kohl's, J. Crew, and Victoria's Secret might soon move into Canadian retail markets as well.
The convenience of Target- food, clothes, appliances, electronics, pharmaceuticals, and more all in one store- makes it a very typical American store. It will be interesting to watch as Target in introduced to other countries and how these other countries react to the lifestyle of the American convenience.




Source: http://online.wsj.com/article/SB10001424052748704689804575536273265184134.html?mod=WSJ_Retailing_leftHeadlines

--Posted by Leah Stoltz

Wal-Mart: the New Predator on the African Continent

With reading WS Journal article, I was surprised that the author described Africa as a large source of potential growth. It could be my own ignorance to a middle class on the continent, but I'm taken aback by the amount of risk Wal-Mart is able to impart in Africa. I do, however understand the total wealth that comes from some resource rich countries such as Nigeria, Tanzania, Botswana or South Africa.

But who is supposed to be shopping at the new mega-retailers? Most of the wealth is trickled out the country through energy giants, such as Shell in Nigeria, who for decades never gave back jobs to local Nigerian who live in abject poverty.

-Colin

http://online.wsj.com/article/SB10001424052748704654004575518340229099562.html
"Wal-Mart Roars into Africa"

http://online.wsj.com/article/SB10001424052748703694204575518310750642140.html
"Wal-Mart Africa Trip Takes Well-Trod Path"

H&M to Slow Store Openings Amid Building Slump

H&M is the third largest fashion chain by revenue in the world, falling just behind The Gap and SA (a Spain-based store). The store has been steadily expanding and opening more stores in shopping malls around the world. I know, personally, that the three malls I have back home all have an H&M, and I also remember that when I was in Madrid there were H&Ms every couple of blocks. The point being, H&M is very popular, it serves men, women, and children and their ad campaigns can be found everyone and and very eye-catching. It comes as a surprise to hear that they are not opening up as many new stores as they had planned even though they've had quite the successful quarter with a 23% rise in profits. Some problems the company seems to be facing with opening more stores is reflected in dealing with expansion into the southern hemisphere, because of the reversal of the seasons, the company will have to reverse their sales process as well. This past term, sales were better than the company had predicted, but apparently the prices of their clothes were kept too low to make the significant profit. H&M is a very successful company, and it is likely that it will continue to be so and thrive no matter the economy.

Source: http://online.wsj.com/article/SB10001424052748704116004575521153400543746.html?mod=WSJ_Retailing_leftHeadlines

--Leah Stoltz

Department Store Targeting Generation Y

Department Stores are now targeting a new audience, which is now Generation Y. They are refocusing their marketing strategies to sell to the a wider range of consumers, a more technology based generation. Department stores are trying to go in the same direction as smaller store such as Zara, H&M, and Forever21 who have been expanding a lot more lately and have the popularity with those under 25. Department store are also making it easier for teens who only shop online because everything is supposedly “easier” online by creating their own chain on teenage stores and placing them strategically by the entrance of the store in order to make it easier for the targeted consumer.

This is another few ideas on how retail is adapting to the change in technology in order to survive. I was reading about how a teenage in college no longer wanted tog o out and shop because it was complicated to go to stores and put an outfit together, let alone walk through an entire department store, so people like her, or the Y generation is now affecting the change in retail.

Articles from: San Diego Union Tribune. September 25, 2010

-Sales fell 11 percent last year; decline expected to slow but continue

-Old-Line Department Stores Finally Go After Gen Y

-Jacky Meltzer

Signet Hires New CEO

     Michael Barnes, who is currently Fossil Inc.’s president and chief operating officer will be taking over Terry Burman’s position as the new chief executive of Signet Jewelers. He is starting to work as CEO when Mr. Burman retires on January 29^th. Due to his new job, Fossil is now looking for a successor to Barnes.  As Signet chairman Malcolm Williamson states, Mr. Barnes is a “seasoned and accomplished manager" and said he "will be an able successor to Terry Burman,”

     I believe that in order for companies to succeed, it is necessary for them to hire new CEO’s about every ten years. With new, intelligent individuals comes new and different ideas. I strongly suspect that Signet Jewelers will benefit from Barnes’s new position because he is not only talented with a “business” mind, but will bring new thoughts and propositions to the table. Would you agree or disagree that a change in chief executives is advantageous to a company? Also, a new CEO might attract more customers to the company. With improved ideas, they can think of different strategies to market their product. Thus, an addition of new executives can be extremely essential to corporations in today’s society.

View this at:

http://online.wsj.com/article/SB10001424052748704116004575521843110736192.html?mod=WSJ_Retailing_leftHeadlines

Posted by Tania Dabdoub 

The Power and Challenges of International Business

"China's leading sports-apparel makers," Li Ning Co., has made moves to begin selling its products in the United States. The Chinese company has made deals with divisions of Foot Locker Inc. to sell its shoes in the U.S. Li Ning Co. also has signed "a multi-million dollar sponsorship deal with Evan Turner, the college basketball player recently taken as the No. 2 pick in the National Basketball Association draft by the Philadelphia 76ers" and "already has endorsement deals with Shaquille O'Neal of the Boston Celtics." This was done to "increase its presence in basketball" because basketball is one of the most popular sports in China.

Although Li Ning Co. is working to build up its presence in the United States it also is focusing on over coming competition from Nike Inc. and Adidas AG in China. The power and scope of international business is exemplified in this case; a locally based company has to compete with larger foreign based companies. Li Ning Co. is finding it difficult to compete with such large companies as Nike and Adidas because they are so well known and have such a strong global presence that Chinese consumers chose their products rather than the products of the local company. Li Ning hopes to bring local loyalty to the company.

I think that Li Ning Co. will have difficulty marketing and gaining sales in the United States for the same reason it is losing sales in China; Nike and Adidas dominate the market for sports apparel. International consumer loyalty is invested in the well known brands Nike and Adidas. The iconic Nike swoosh might as well be the "face" of sports apparel. Nike and Adidas have built up a reputation and loyal consumer base that is difficult for any company in the same market to rival.

It will take some time for Li Ning to build up a presence and consumer base in the United States. Sponsorships with professional athletes is definitely a start, but escaping the dominance of international sports apparel behemoths, Nike and Adidas, will challenge Li Ning. I believe that it would better for Li Ning to start small and focus on certain regions of China in order to create a local, loyal consumer base first and then begin to expand to the rest of China, then to the rest of the world.

http://online.wsj.com/article/SB10001424052748704791004575519731522505118.html?mod=WSJ_Retailing_leftHeadlines

Vendors On The Green

         Starting on October 15^th, vendor food trucks will replace the famous Central park restaurant, Tavern on the Green.  They will serve a variety of foods, including homemade soups, dumplings, filet mignon, and tacos. Four food vendors will be replacing the area where the Tavern’s Crystal room once stood.

        This new, emerging strategy of selling food is so unique, which I believe will make it easier for them to be successful in this business. In central park, the only food vendors I am used to seeing are those selling water bottles and hotdogs. Now, with this new business, people will be able to buy exotic foods such as dumplings and soups. Because this food vendor is so different, it will attract a variety of people, for many love “change”. There aren’t many people I know that enjoy eating the same type of food every single day. People love spicing things up; many will be drawn to this for it is something new! Also, the food being sold at these vendors is a bit more “high-class”. Thus, maybe the majority of these consumers will be people with a higher status. With higher-class consumers, they can buy more and bring along their friends. This, in turn , will be great for their business because now they are attracting customers that can afford a lot of their food on a daily basis. Because they are the only food vendors providing this type of food, they don’t have as much competition. As I stated earlier, the only vendors in Central Park sell hotdogs and beverages. I believe with the location and with offerings of unique food, they will make a much bigger profit than those selling the usual hotdog. Central park attracts  a myriad of international tourists and now, those tourists might just be able to eat food from their hometown. This new business not only will attract all kinds of individuals, but will also add an international flavor to Central Park.

View this at -

http://eatocracy.cnn.com/2010/09/17/food-trucks-on-the-green/?iref=allsearch

Posted by Tania Dabdoub

Google v. Facebook in the Advertising Field

I know this might be a kind of a stretch when it comes to finding a new company in the retail industry, but I thought this was very interesting and can be applied. We're all so used to Google advertising to us depending on what we search. Those top couple links aren't actually the number one search, but companies who paid for their link to be placed at the top so that you might just click on it. It's quite a clever advertisement, but now it seems that companies are picking a different internet forum for these ads- Facebook. The (just over 5 years old) social networking site has added a new application called "places" where one can basically "log in" to a place they've arrived at. This promotes these places to create a facebook page and advertise on the space in real-time to users of mobile devices as soon as they log in. Google is seeing Facebook as a threat because it seems that people are using Facebook as the new Google, searching for local businesses and "what to dos." Facebook creates more of a personal and easier to access advertisement as well as making it more user friendly since thousands of people are on Facebook at all hours of the day already.

Article: http://online.wsj.com/article/SB10001424052748703791804575439740544880692.html

--Leah Stoltz

Sony Enhances PlayStation to Take On Nintendo's Wii

The Nintendo Wii is supposed to be more precise ad accurate due to the type of controller it manufactured. It is said to be so comfortable and so realistic that the suer forgets they are holding a control in their hands. It is also about $200 less expensive than Play Stations. Wii should be expecting competition  once microsoft releases Kinect for the Xbox 360.


There is a competitive market in the electronic game industry and  the innovation of Nintendo Wii will push the competition to the next level. Competition like this i find to be int he best interest of the public because companies keep on improving their gaming systems and lowering the prices for the consumers. 


http://online.wsj.com/article/SB10001424052748704129204575505862851861670.html?mod=WSJ_Tech_LEFTTopNews


-Jacky Meltzer

Foreign Fast Fashion Reigns Supreme

Spanish company, Inditex is the fast fashion retailer to beat, according to the Wall Street Journal. With sales up an astonishing 68% from last year, the owner of the clothier Zara boasts the largest retailer by revenue at €628.3 million. Over the years,  Inditex has been diverting its markets from those in Spain and the rest of Europe to new markets in Asia and Europe. Sales in the Americas have stagnated over two years at 12%.

What is most promising about Zara and Inditex's sale composite is that there is still expansion into the Asian market; over the past two years, sales when from 12% to 15% as the total revenue for the company. East Asia's large population and demand for low-priced fashion should drive the demand for Zara's intuitively branded clothing through the roof. Similarly, North America and Latin America are nearly untapped resources for the company, who saw sliding market values at the implication that the company had softening sales. Competetion would be healthy in an American market dominated by European rival H&M and fast-fashion monolith Forever 21.
-Colin Dame

http://online.wsj.com/article/SB10001424052748704129204575507022743194954.html

Couture on a Budget

Last year, Harvard Business School graduates Jennifer Hyman and Jennifer Carter Fleiss created the comapany Rent the Runway. The company offers services in which women can rent designer dresses at a low price for a four day period and have the dress mailed to them, so they can wear it for their special occasion. The New York Times describes the company as "a recession-era twist on the Internet rent-by-mail model."

The company allows luxury retailers to reach a larger audience by making couture dresses more accessible and affordable. Now, the young woman interested in fashion, but on a budget can wear that Oscar de la Renta gown. Serving as a "creative marketing strategy," the company gives designers and their pieces exposure to a new generation, and if that generation likes what it sees then it will come back for more (The New York Times).

With the convenience of online shopping, Rent the Runway gives the chance for women to opt for a more unique and "fashionable" dress for their event, rather than having to shop at chain retail stores and buying a discount dress.

In the times of economic recovery, luxury brands have been inaccessible to the new generation of fashionable women and have been limited to the affluent shopper. With the introduction of Rent the Runway, these luxury brands are now more affordable and appealing to those women on a budget who have a fetish for Diane Von Furstenberg.

http://www.renttherunway.com/sites/default/files/001_nyt.pdf

Haute Couture Ethical Horror

In haute-couture retail and advertisement there have always been conflicts with ethics. The pressure to look perfect, be bone-thin, and stay on top of the industry. In this article, "‘Picture Me’: When Models Turn On the Camera" it talks about how a model exposes many of these conflicts first hand. She bring her own cameras to the sets and behind the scenes in order to expose some of the horrors of the modeling industry that convinces us how to dress, act, and look.  The man behind the camera, Ole Schell, is the main character and model Sara Ziff's boyfriend, he is quoted saying how “The outside of the fashion show is shiny and glistening, but backstage it’s another story.” The movie reveals such issues as breaching of child labor laws (girls break into the industry at ages as young as 13 and 14), sexual harassment issues (since the girls are so young and desperate they allow men to take advantage of them), and of course the hundreds of others issues surrounding the pressure to be the best of the best in modeling.
Models are the advertisement in retail, thus any ethical issues surrounding them effect us as consumers because we are being tricked. Ziff says herself in the trailer how the business is based off of fantasy, the industry can be one of trickery, brainwashing, and thousands of tons of pressures in every direction. One of my favorite parts of the article is where it states how Ziff has been hired for more jobs since the debut of the movie as a show of support. It is so heartwarming to see this reaction in contrast to the negative and critical article Ziff was expecting to get from the industry.


Article & Video: http://blogs.wsj.com/runway/2010/09/09/picture-me-when-models-turn-on-the-camera/?KEYWORDS=child+labor




--Posted by Leah Stoltz

Microsoft Inc.'s New Release

         Microsoft Inc. has released a newer version of its Internet Explorer 9, in hopes to attract a lot more customers, and win back “ground” in this competitive market. This new browser, known as IE9, makes web -browsing feel more like working in an offline application. E9 also functions as a new popular operating system, similar to the one in Windows 7. This new feature enables its users to put favorite websites on the Windows Taskbar for one-click access. Another characteristic that the E9 has facilitates one’s daily tasks, which includes writing an email, without having to first launch the browser.

         There exists a lot of competition in this “browser market”. Because Microsoft was known to be the “dominant” company at one point, the newcomers such as Mozilla Corp.'s Firefox and Google Inc.'s (GOOG) Chrome have made it difficult for them to succeed. Unfortonutely, IE's share of the global browser market dropped to 60.4%, down from 74.2% in September 2008. Thus, they hope to get its spot back with the help of the Redmond, Wash., which has gotten some companies together (Amazon, Ebay, and Red Bull) to help support the E9.

        Although it will be difficult regaining their ground, I believe it will be possible over the next few years. Due to this new browser,  I think people will be drawn to the new features on the E9 for it provides efficiency and speed to an individual’s computer. These days, everyone is in need of instant gratification; everyone wants things done right away. Microsoft has done a great job in coming up with something that fulfills this idea. It was also very wise of them to promote this new browser with Ebay and Amazon because their popularity will be a huge help. Many people go on both websites, and  they might be interested in Microsoft’s new creation. They need great advertising, and this is one great way to show off their new product. The more they advertise, the more likely they will draw customers to invest in the E9.

View this at -

http://online.wsj.com/article/BT-CO-20100915-711679.html?mod=WSJ_Retailing_middleHeadlines

Posted by Tania Dabdoub 

Ethics in Retailing

Retailers have been increasingly concerned with the conditions of under developed countries and the people who live in these poor conditions.  Many companies have given back to these under developed countries by donating portions of profits to organizations that work to help progress the development of these countries or the companies themselves take direct action.

The Wall Street Journal featured an article about the fashion line Edun that Bono, from the band U2, and his wife created for the purpose of "revitalizing apparel manufacturing in sub-Saharan Africa," according to the article.  The company, however, encountered problems achieving its mission and had to produce only a portion of its products in Africa because of Africa's limited manufacturing capacity.  The company hopes to increase the portion of clothes produced in Africa in the future.  Edun's mission states that 100% profits made off of t-shirts that feature artwork drawn by Kenyan school children will go toward funding "basic needs, such as lunch, supplies, healthcare, and development projects" at the Bidii School in Kenya.  Edun has also created the Conservation Cotton Initiative to "build sustainable farming communities and provide a fair trade market for their cotton" in Uganda.

Another company that is well known for its high level of corporate social responsibility is TOMS Shoes. The popular shoe company created the One for One Movement which is TOMS' practice of giving a pair of shoes to a child in need for every one pair that is purchased.  The shoe company also works with organizations to make sure children in poor countries always have access to quality shoes to protect their feet from disease and to educate families about the importance of wearing shoes.

Large corporations like Walmart also contribute to humanitarian efforts.  Walmart operates by a "philosophy" of "operating globally and giving back locally."  Walmart has donated money to help relieve hunger in America, as well as helped with relief for Haiti after it was hit by a devastating earthquake.

Many retailers have focused their corporate social responsibility on humanitarian efforts, concentrating on those who are in need in under developed countries.  They use the power of their profits and products to fuel progress, improvement, and change in these countries.


http://online.wsj.com/article/SB10001424052748704358904575478310504593870.html#articleTabs%3Darticle
http://www.edun.com/mission#
http://www.toms.com/movement-one-for-one
http://www.toms.com/how-we-give
http://walmartstores.com/CommunityGiving/

- Bria G.

Electronics Retailing

Many retailers such as Best Buy have realized that the main sales have been in hand held gadgets and personal devices that can be carried with them. "People are willing to disproportionately spend for these devices because they are becoming so important to their lives," -Best Buy Chief Executive Brian Dunn. Best Buy is now going to sell the iPad and Kindle to continue with their change in products. Sales and revenue have been up 5% since last fiscal year. Staples has also seen this changed and are trying to make some changes while keeping the original reason for Staples by also beginning to sell the Kindle.

I have realized a trend that these stores have caught on to as well, that in order for a retailer to survive in our society, it is necessary for the industry to change and adapt, which is exactly what Best Buy and Staples is doing. I see it every day and I agree that our society has grown attached to mobile devices such as iPods, iPads, cell phones, etc. 

http://online.wsj.com/article/SB10001424052748703376504575491533125103528.html?KEYWORDS=retail

-Jacky Meltzer

BK's Strategy: Play Catch-Up

3G Capital Management Inc., a private-equity firm is buying out Burger King Incorporated for a portion worth 3.3. billion. They plan to hasten their international expansion thinking that BK will gain more revenue since the roots of the company are in Latin America. Burger King in Miami has been hit bad with the recession, but according to Burger King's Chief Executive John Chidsey the fact that BK has been popular in Latin American has attracted more customers to the BK brand of fast food.


I agree with the idea that 3G Capital Management is doing because as people say, not only is America a melting pot of different backgrounds, but more like a bowl of salad because there are so much diversity in American, but they all have their separate communities as well. If Bk becomes popular in other countries when they go visit they will have a different feel for Bk and prefer Bk to their rivals. Personally going to Mexico all the time, I do admire many of the popular places and fashion trends and like to do what i can to still be connected while living in the U.S. Also since national companies sell different food to attract the different populace of that country, it also gives a new feel to the food. I know when i went to Israel and Prague it felt completely different to eat in McDonalds there than in the U.S. made me curious, which can potentially attract more people through word of mouth and international expansion. 




http://online.wsj.com/article/SB20001424052748704206804575467370505104544.html


-Jacky Meltzer

Rite Aid Adds Groceries To S.C. Stores

            Rite Aid Corp. has decided that they are opening discount groceries to some of its stores in South Carolina. Rite Aid is adding “Save-A-Lot” grocery products, which are units of Supervalu Inc. Its stores sell produce, meats, and household goods. Rite Aid thought it was best to add groceries in their South Carolina stores because they are all medium-sized, and also because their pharmacy businesses are solid. Their sales of items, such as beauty products, are not as strong.  
        

            On the other hand, Rite Aid’s rival, Walgreen Co. is trying to accomplish the same thing- their stores will start selling fruit and vegetables, soups, sandwiches and salads. They are also thinking about carrying goods such as salad bags and frozen pizza.

            Thus, because both companies are testing out a similar strategy, there exists a lot of competition. This makes it difficult for both Rite Aid and Walgreen Co. because not only do they have to re-think their cost on items, but they must also have to come up with different ways to reach out to their customers. This then involves more money for advertising because both companies need to attract customers from all over the state.

            I believe that this new emergence of grocery products in the stores is a great way of increasing their profit because food attracts a larger number of buyers. Now, Rite Aid will not only have a pharmacy, but it will provide us with lower-priced foods as well.  With this bad economy, I think many customers will want to shop at their stores, for they provides great deals. Competition will be tough, but risk will always be a factor in the industry.

View the article here: 

 http://online.wsj.com/article/SB10001424052748704358904575477832907868388.html?mod=WSJ_Retailing_leftHeadlines#articleTabs%3Darticle

Posted by Tania Dabdoub

Sluggish Economy Makes Retailers More Open to Change

Because of the recent economic decline, consumers have been turning to cheaper alternatives for the products they used to buy regularly.  Large cosmetic companies are facing competition with inexpensive drug store brands.  For example, as explained by a Wall Street Journal article entitled "Estée Lauder's Counter Makeover," Estée Lauder Cosmetics are implementing new strategies to attract consumers to their cosmetic counters in department stores.

Some of these new strategies include allowing consumers to browse for products and test the products on their own, eliminating the "nagging" consultant, and creating an "express line" for customers who already know what they want to purchase.  Estée Lauder is now making its products' prices easily visible, so consumers don't have to embarrassingly ask how much a product is.

Also, in order to boost sales, consumer loyalty, and the number of people who come into large department stores, Estée Lauder is offering promotions, such as handing out free samples of products and following up with the consumers on how they liked it.

Estée Lauder's Chief Executive Fabrizio Freda stated, "The recent recession has opened up many companies—for sure ourselves and many of our retail partners—to be willing to put more dynamic change into the way we go to market."  Other retailers for other products may undergo changes in the way they sell their products, all in efforts to attract more consumers during times of dwindling sales nembers.

Read the article online at:
http://online.wsj.com/article/SB10001424052748704855104575469901711752466.html

- Bria G.

Apparel Retailers Check Out Prices

SOURCE: http://online.wsj.com/article/SB10001424052748704476104575439112892856830.html?KEYWORDS=retail
Published: August 20th, 2010

Cotton prices are rising, along with freight costs and labor rates, this is trend results in the need for retailers to raise the prices of their clothing products. However, the problem lies with the fact that the consumer is still accustomed to the low prices featured during our economies downfall. The competitive retail environment is very sensitive, and though one company noticed a trend of increased number of transactions, the transaction size was noted to have declined because of the lower average prices paid.


The only option many companies, such as Gap Inc., Aeropostale Inc., and Buckle Inc. see as feasible is to raise their prices. Stage Stores CEO Andy Hall replies to this possibility stating "The market has kind of taken a wait-and-see approach to how much they can pass on, or we can pass on, to the consumer. I am not very optimistic that in today's environment the consumer is going to take a price increase." As the article states, another teen retailer hope to justify the price increase by adding embellishments to its products, still a gutsy move. I know as a consumer I would not be happy with a significant price increase to a product that has not changed, so we shall see how this plays out in the upcoming months.


--Leah Stoltz

Borders To Cut Prices On E-books

            Because of the strong competition in the “e-book” market, Borders Group Incorporated has decided to lower its prices on two of its electronic books. For instance, its Kobo reader will drop to $129.99 from $149.99 and its Aluratek Libre reader will go to $99.99 from $119.99 each. There exists strong competition with offerings like Amazon.com Inc.'s Kindle, Barnes & Noble Inc.'s Nook, and the Apple Inc. iPad.  Given this poor economy, Borders has had difficulty with their sales and is hoping to attract more costumers with their more affordable prices.

          

           This would allow for a lot more people to access these devices because now more individuals can afford them. Thus, Borders would create a bigger industry, and in turn, generate more income. Also, by integrating these goods through a global network of communication, everyone around the world can access these e-books. Borders’ strategy is to lower the price of its devices to make them more attractive. This would create a bigger customer base with the ultimate goal of  increasing its market share.

View article at:

http://online.wsj.com/article/BT-CO-20100831-708345.html?mod=WSJ_Retailing_middleHeadlines 

Posted by Tania Dabdoub

High-end brands are finding innovative ways to stretch their high-end dollar. Forcing its employees to wash their shoes of gold dust has become a custom at the Bulgari workshop in Rome, with gold prices reaching new highs, $965 a troy ounce. But collecting minute amounts of precious metals isn't the only way Bulgari is profiting in these tough economics times. The company is strategically mixing gold and other metals with cheaper substances such as ceramics and steel, effecting the production costs in small increments. The different combinations also allow for a greater margin of revenue. Bulgari, making most of its revenue from its more inexpensive products, such as fragrances and mid-priced watches, has decided to maintain a more diverse product line heading into 2011, a decision spear-headed by Francesco Trapani, the company's CEO. Trapani claims "Bulgari will benefit from a product assortment significantly larger than in 2009."

High-end retailers are definitely desperate to separate themselves from their pricey competitors, an increasingly difficult task in these days of international economic recovery. A brilliant move on the part of creative director, Paolo Bulgari, the use of mix material jewelry such as ceramics should change the landscape of couture and mid-range accessories. Making a more accessible product should bolster Bulgari's product line and make it a fiercer competitor in the marketplace. 

-Colin

Link to Article