DSN Retailing Today articles from May 2003

DSN Retailing Today archives from May 2003

Kmart emerges but remains leaderless: no word yet on top merchant.(Brief Article)
May 19, 2003... TROY, MICH. -- If ever there were a perfect time for Kmart to start afresh, this is it. It has a new board of directors and an aggressive plan for profitability. And with the shackles of bankruptcy no longer holding it back, the company can...

Wal-Mart meeting faces full agenda.(Brief Article)
May 19, 2003... BENTONVILLE, ARK. -- The more than 15,000 people expected to attend the upcoming Wal-Mart shareholder's meeting may want to bring a seat cushion, as this year's event has the potential to last longer than normal. The meeting, which...

Wal-Mart meeting faces full agenda: company sells McLane to Berkshire Hathaway.
May 19, 2003... BENTONVILLE, ARK. -- Wal-Mart earlier this month announced the sale of its $15 billion McLane wholesale distribution business to the Berkshire Hathaway holding company run by billionaire investor Warren Buffet. The purchase price was $1.5...

Big plans for Geoffrey at Toys 'R' Us: new interactive concept performing well in first year.(Brief Article)
May 19, 2003... PARAMUS, N.J. -- When Toys "R" Us began rolling out its Geoffrey concept late last summer, few knew what to make of this all-encompassing store. Except for the company's own description of an "experiential" retailtainment destination that...

Sam Ash still rockin' after eight decades.(Company Profile)
May 19, 2003... NEW YORK -- The retail market for musical instruments caters to a unique audience outside the mainstream, but like most retail channels, it, too, is feeling the effects of the ongoing economic slump. Mars Music, one of its largest retailers,...

Stein Mart selectivity results in 14 new locations.(Brief Article)
May 19, 2003... JACKSONVILLE, FLA. -- Stein Mart will shutter 16 underperforming units in 2003, but also plans to open 14 stores in new locations--for an aggregate store shift by year's end of two fewer units. The 270-store retailer opened 16 stores in...

Interactive toys hit big at JPMA: licensing, bilingual packaging also hot.
May 19, 2003... DALLAS -- Babies today have never had it so good. The latest wave of products to keep infants safe and happy feature so many new innovations that they make strollers, high chairs or play yards from just a few years ago seem like outdated...

DSNRetailing Today.com.(Illustration)
May 19, 2003... DSNRetailing Today.com Online Poll "What effect is the end of the war in Iraq most likely to haue on the U.S. economy? Reader Responses A meaningful, 189 28.77% prolonged lift A swift, but 36 5.48%...

Toys "R" Us names new vice chairman. (Market Watch).(Toys "R" Us recently named Richard Markee vice chairman )(Brief Article)
May 19, 2003... Toys "R" Us recently named Richard Markee vice chairman, as well as president of its U.S. toy stores unit. Markee, 49, who joined the company in 1990 and founded the Babies "R" Us division in 1995, previously had been president of specialty...

Ahold blunder bigger than anticipated. (Market Watch).(Brief Article)
May 19, 2003... AMSTERDAM -- Ahold has reported that a forensic accounting investigation revealed that income overstatements at the company's U.S. Foodservice unit are considerably higher than previously thought, totaling $880 million versus an earlier...

OfficeMax 'enters' Canadian territories. (Market Watch).(Brief Article)
May 19, 2003... OfficeMax Inc. announced its entry into the multi-billion-dollar Canada office products market with the launch of a new OfficeMax Canada e-commerce site, located at www.officemax.ca, and plans for the distribution of an OfficeMax Canada...

Family Dollar Stores Inc. (Financials).(Brief Article)
May 19, 2003... Family Dollar Stores Inc. reported April same-store sales rose 7.1%, meeting its own guidance for April same-store sales growth of between 6% to 8% announced last month.

Dollar General Corp. (Financials).(Brief Article)
May 19, 2003... Dollar General Corp. April same-store sales rose 5.9%--higher than industry analyst estimates of 4.8% growth and at the higher end of the company s guidance for 3% to 6% growth.

Circuit City Stores Inc. (Financials).(Brief Article)
May 19, 2003... Circuit City Stores Inc. announced that chairman, president and ceo Alan McCollough was not awarded an annual bonus for last year since the No. 2 U.S. consumer electronics chain failed to meet company financial targets.

L.L. Bean considers purchase of Eddie Bauer.
May 19, 2003... FREEPORT, MAINE -- L.L. Bean has its eye on apparel rival Eddie Bauer as a potential acquisition. The well-known Maine-based catalog retailer expressed interest in the multichannel Eddie Bauer operation when it made public, as required by...

Linens 'N Things gains on key initiatives in '02.
May 19, 2003... CLIFTON, N.J. -- Linens 'N Things turned things around in 2002 after a soft 2001 fiscal year, matching 2000 earnings per share and for the first time pushing past the $2 billion sales mark. The major initiatives instituted by the retailer...

Best Buy announces new plans at new home.
May 19, 2003... MINNEAPOLIS -- Best Buy unveiled its new home earlier this month when it hosted an analyst meeting and technology fair at its recently completed corporate headquarters--a facility that can both accommodate a retailer that has exploded in size...

'03 promotional activity off to soft start.(Industry Overview)
May 19, 2003... CHICAGO -- The nation's leading retailers met expectations of soft sales and war with Iraq with a mixed bag of promotional activity during the quarterly period that began Feb. 1 and ended April 30. According to information on the use of...

FMI attributes soft '02 to competitive landscape.(Food Marketing Institute)
May 19, 2003... CHICAGO -- Last year was a tough one for food retailers, as the economy, war, corporate scandals and intense value-driven competition converged into a "perfect storm" to dampen industry sales, which grew a meager 1.6%. Those that weathered...

Top execs speak out at DSN Retailing Today roundtable.
May 19, 2003... CHICAGO -- With supercenters, warehouse clubs, dollar stores and other formats establishing themselves ever more firmly with consumers, DSN Retailing Today's Food Retailing Roundtable provided more evidence that a new era in consumables...

Ikea brings expanded format to L.A.
May 19, 2003... COVINA, CALIF. -- Home furnishings giant Ikea is taking a "bigger is better" approach to expansion in the United States by opening massive new stores modeled after its outlets in Europe. The Swedish chain continued that effort on May 7 with...

Sears looks past '02, focuses on the future.(Brief Article)
May 19, 2003... HOFFMAN ESTATES, ILL. -- Sears' ceo Alan Lacy was confronted by angry attendees at the company's annual shareholder meeting earlier this month as he tried to address falling share prices and justify executive bonuses. Lacy called 2002...

A tribute to two different leaders.(Bob Verdisco, Ron Ziegler)(Editorial)(Obituary)
May 19, 2003... On April 30, Bob Verdisco, the influential leader of the mass retailing industry, died of cancer at the age of 60. He was president of the International Mass Retail Association (IMRA) from 1990 until his retirement this past December. ...

Home Depot 'Lite' gets it right. (View Point).
May 19, 2003... Every time I travel to Chicago, I'm blown away by the retail presence on the Magnificent Mile. From Eddie Bauer to the Apple Store, it's as if the stretch of Michigan Avenue from Ohio to Lake Shore Drive represents a Who's Who of American...

Overtime pay: there ought to be a law. (Guest Column).
May 19, 2003... For more than 50 years now, the Federal ground rules governing overtime pay for the retail industry workforce have been a regulatory mess and a litigation minefield for the industry. In addition to being unfair to workers and burdensome to...

CD business cards pack more networking punch. (Guest Column).
May 19, 2003... CD Business Cards are fast becoming one of the most widely heralded marketing tools used today. The information delivered on such a small disc, and the overall impact, is unmatched. Plus, they're really fun to hand out. Over the last few...

Stretch expands men's pants sales. (Apparel & Accessories).(Brief Article)
May 19, 2003... Give a little, get a little. New hidden elastic waistbands are proving the secret to expanding men's pants sales. These are not your father's stretch trousers, those mass-market apparel standbys featuring telltale gathers. Instead,...

Boy briefs move into misses. (Apparel & Accessories).(Brief Article)
May 19, 2003... The boy brief is maturing into misses intimates assortments, after tremendous success with juniors customers. Sara Lee and Fruit of the Loom are both coming out with toned-down boy briefs that exhibit tremendous sales potential based on...

Lace is a clear trend in juniors, misses. (Apparel & Accessories).(Brief Article)
May 19, 2003... Though flimsy in its appearance, lace is proving a substantial retail performer across apparel and home goods. It has always had a classic, Old World appeal, but new meshes in updated fabrications have made frillwork a top consumer choice. It...

Abercrombie & Fitch. (Retailer News).(American Eagle pulls footwear featuring Hindu god)(Brief Article)
May 19, 2003... Though sandals are selling well across the industry, American Eagle unwittingly made a huge misstep by featuring the Hindu god Ganesh on the bottom of its footwear. The company quickly pulled the line after thousands of irate consumers signed...

Manhattan retailer Pearl River will now wholesale footwear, the crown jewel in its assortment. (Retailer News).(Brief Article)
May 19, 2003... Manhattan retailer Pearl River will now wholesale footwear, the crown jewel in its assortment. The company hopes to broaden the reach of its best-selling Asian-influenced slipper line, introduced in 1995, at an SRP of $12.50 to $15.50....

Lollytogs Ltd. (Vendor News).(Brief Article)
May 19, 2003... Lollytogs Ltd., which was recently awarded the Vendor Award for Excellence for the Year 2002 by Target and Mervyn's, has signed consultant Gail Munn to expand the company's licensing strategy. Lollytogs hopes to develop the reach of its...

Thong sandals. (What's Hot).(Brief Article)
May 19, 2003... Customers are flipping for flip-flops, inspiring retailers from Target to Old Navy to assort a rainbow of SKUs. "We will continue to carry a broad variety of thong sandals, based on exceptional results in spring and summer 2002," said...

Wal-Mart. (Retail News).(Brief Article)
May 19, 2003... Satellite radio will reach the masses as Wal-Mart announces the addition of XM Satellite receivers and adapter kits by Delphi to its merchandise mix. The rollout is a definite boost as it will take what is considered a niche product to the...

RadioShack. (Retail News).(Brief Article)
May 19, 2003... RadioShack broke ground on its new downtown Fort Worth, Texas, headquarters as it prepares to move from its old office tower to a nearby corporate campus with nearly 900,000 square feet on 31 acres. In addition to three office buildings, the...

Sears. (Retail News).(Brief Article)
May 19, 2003... Sears has begun delivering in-store content via high definition programming. According to Premier Retail Networks, this marks the first HDTV platform capable of delivering customized content targeted by geographic region and store....

Gemini Industries. (Vendor News).(Brief Article)
May 19, 2003... Gemini Industries has agreed to pay $50 million in cash to acquire the consumer electronics accessories business from Recoton, which filed for Chapter 11 bankruptcy protection on April 8. Separately, Gemini has also entered into a discussion...

Tablet PCs. (What's Hot).(Brief Article)
May 19, 2003... The PC market is often a gloomy one, but a bright spot is shining on Tablet PCs. Thanks to Microsoft's new Windows XP Tablet PC Edition operating platform, made specifically for the product, these units are finally going beyond demonstration...

DVD Audio could be 2nd musical coming. (DVD Update).
May 19, 2003... It has been hailed as the ultimate music experience for consumers. Music labels and retailers are hoping it will reinvigorate ailing CD sales, but DVD Audio just can't seem to get off the ground. It doesn't help that there is, of course, a...

PCs drive recordable DVD sales. (CE & Entertainment).(Brief Article)
May 19, 2003... The key to selling recordable DVD may just lie in the PC, as sales of drives begin to gain momentum in spite of a format war that gives so many choices even technology aficionados can get confused. "Currently we have DVD-RAM, DVD-R,...

DVD Promo.(Illustration)
May 19, 2003... DVD PROMO THE TEN MOST HEAVILY PROMOTED (*) SELL-THROUGH VIDEO TITLES AT MASS (+) FOR THE PERIOD OF 4/1 THROUGH 4/27/2003 TITLE/STUDIO NO. OF ADS HARRY POTEER AND THE CHAMBER OF SECRETS ...

Ahold. (Retailer News).(Brief Article)
May 19, 2003... First Ahold decided to leave South America, and now it's Indonesia and Mailaysia. The Dutch retailer reached an agreement last month to sell its 22 stores in Indonesia to PT Hero Supermarket, including two distribution centers and another...

Sara Lee. (Vendor News).(Brief Article)
May 19, 2003... Sara Lee's bakery division will eliminate 60 of its 108 regional fresh bread brands and close three of its 55 bakery product plants as part of its restructuring. The company intends to focus on its more successful brands, including the...

Vertis. (Industry News).(Brief Article)
May 19, 2003... A recent study by marketing firm Vertis showed that men on average spend more than women on groceries at discount grocery stores, including supercenters. The average spent in two weeks was $62 for men and $50 for women.

Upside down. (What's Hot).(Brief Article)
May 19, 2003... Makers of condiments have gamed a new perspective on what consumers want, and it's all about ease of pouring and not having to shake a bottle to get the last bit of product. One-sixth of ketchup sales by Heinz are now in its Easy Squeeze...

Wacky colors, unconventional flavors appeal to the savvy younger set. (Food & Consumables).
May 19, 2003... Wacky food products that turn kids' heads but may repel parents have become big business. Blue ketchup, pudding, gelatin or yogurt in a tube and fish sticks sprinkled with a colorful confetti coating are some examples of popular food items...

Organics see natural growth. (Food & Consumables).(Kroger's)(Brief Article)
May 19, 2003... Recent moves by major food retailers and vendors embracing organic lines indicate that this $11 billion segment, though still small, may be here for the long haul. Kroger's decision to roll out a private label line of natural and organic...

A higher class emerges in private label goods. (Food & Consumables).(Brief Article)
May 19, 2003... Private label in food continues to move upscale. Safeway sells Select, Kroger markets Private Selection and now Albertsons has joined in with a premium brand called Essensia. The Essensia line, which launched in March with 35 frozen...

Linens 'N Things. (Retailer News).(Brief Article)
May 19, 2003... Linens 'N Things is adding a West Coast distribution center. The third-party-operated cross-dock facility will make distribution to western stores more efficient, the company said.

Newell Rubbermaid. (Vendor News).(Brief Article)
May 19, 2003... Newell Rubbermaid said on April 29 that second quarter profit could fall below analyst estimates after a first quarter slowed by a weak economy and the company's decision to stop selling in some high-risk retailers. Remarks by the company...

Tilia. (Executive News).(Brief Article)
May 19, 2003... Tilia has recruited four new brand marketing specialists to fill important marketing positions in the company. Former Nestle Beverage Co. executive Gina Donati Symczak was named director of advertising and brand equity; former SegaS oft...

Food processing. (What's Hot).(household food processors now let consumers do more)(Brief Article)
May 19, 2003... Consumer food processors once were about chopping a few ingredients for fancy cooking. Now they let consumers do things around the kitchen that used to be strictly the provenance of restaurants and take-out counters. Back to Basics of fers...

Features drive kitchen gadget evolution. (Home Goods Update).
May 19, 2003... The trouble with the gadget business today is that you always have to do yourself one better. Manufacturers and retailers are trying to do that with products that are easier to use, easier to employ-a different consideration-and more stylish...

Kmart, MSO at odds over sales. (Home Goods & Housewares).(Martha Stewart Omnimedia)(Brief Article)
May 19, 2003... Kmart and Martha Stewart Omnimedia are dealing with a rift based on Martha Stewart Everyday product royalties, which have fallen short of contractual minimums due to the retailer's store closings and comparablestore sales shortfalls, MSO...

Networked gadgets now able to work solo. (Home Goods & Housewares).(Salton develops networked appliances)(Brief Article)
May 19, 2003... Salton is trying a new tack on networked appliances by developing a line of products that can stand alone as individual items or can be linked together. With its new Beyond Connected Home line, Salton hopes that recent consumer...

Staples. (Retailer News).(Brief Article)
May 19, 2003... Staples gave its "best product of the year" award to Cardinal Brand's EasyOpen ring binder after unit sales of the item doubled from the previous year. EasyOpen ring binders were introduced in fall 2001 with an ad campaign that touted it as...

McGraw-Hill Children's Publishing. (Vendor News).(Brief Article)
May 19, 2003... McGraw-Hill Children's Publishing, best known for its educational books, will break new ground this August when it introduces a children's picture book called, "Eleanor, Ellatony, Ellencake, and Me." The publisher has high expectations for...

Made E-Z Products. (Vendor News).(Brief Article)
May 19, 2003... Made E-Z Products has launched a new human resources software tool for businesses that contains more than 200 personnel forms and retails for a suggested $24.95. The four-CD software bundle covers categories such as recruiting and hiring,...

Office superstores pursue green initiatives. (Stationery Update).
May 19, 2003... Environmentalism is being pursued with renewed vigor by office superstore operators who recognize green initiatives are the right thing to do for the planet and also can be good for their bottom line. Within the past few months, Office...

Part time. (What's Hot).(Brief Article)
May 19, 2003... Prospects for party goods retailers are looking up after enduring a difficult two-year period in which terrorist attacks, economic weakness and a war with Iraq drained Americans of their festive spirit. Sales also suffered as Halloween, one...

Kmart to emerge after 15 months in Chapter 11.
May 5, 2003... CHICAGO -- Kmart may have fast tracked its emergence from Chapter 11, but to those in attendance it felt anything but. What was supposed to have been a two-day approval process dragged out to four. Nonetheless, at approximately 10:15 p.m. EST...

Wal-Mart promotions elevate Coughlin, Duke.(Mike Duke and Tom Coughlin)
May 5, 2003... BENTONVILLE, ARK. -- Tom Coughlin and Mike Duke have been assigned broader responsibilities for Wal-Mart's domestic operations. Late last month, Wal-Mart announced a realignment of responsibilities among several of its senior executives...

Sears/Kmart merger rumors raise more scoffs than brows.
May 5, 2003... CHICAGO -- The fate of Kmart as a newly emerged company has been grist for the rumor mill for some time. But the item everyone's been whispering about recently--both in court and out--is the prospect of a merger between Kmart and Sears....

Dick's tests women's apparel concept: New Ativa offshoot emphasizes upscale athletic lifestyle.
May 5, 2003... ALBANY, N.Y. -- Dick's Sporting Goods opened a new female-oriented retail concept last month, named after its Ativa store brand that could provide a significant source of new growth to a company whose existing operations already possess...

Easter fails to resurrect Federated: kind calendar shift not enough to boost mid tier merchant.(Federated Department Stores' finances)
May 5, 2003... CINCINNATI -- Federated Department Stores' April comps failed to get a boost from the late appearance of Easter this year. As of press time, same-store sales were tracking down, and the company was expecting a dip of 2% to 3% for the period,...

Sam's Club fetes 20 years of warehouse retailing.(Brief Article)
May 5, 2003... BENTONVILLE, ARK. -- Wal-Mart's Sam's Club division turned 20 last month, and DSN Retailing Today helped commemorate the milestone with a Special Anniversary Issue. Editor-in-chief Tim Craig and senior editor Mike Troy presented the issue to...

Office Depot puts $900 mil. faith in European B2B market.
May 5, 2003... DELRAY BEACH, FLA. -- Office Depot found a use for nearly $900 million in cash that was on its balance sheet at the end of last year, although it didn't have anything to do with generating sales growth at the company's ailing retail...

Penney's adds credence to 5-year turnaround plan: apparel program credited with producing results.(J.C. Penney Company Inc. management and restructuring)
May 5, 2003... PLANO, TEXAS -- Progress in reviving JCPenney stores upon entering year three of a five-year turnaround plan remains on track, with the chain noting its second consecutive gain last year in comparable-store sales, despite tough competition...

Soft economy can't stop Hibbett: sporting goods specialist hits profit out of the park.(Hibbett Sporting Goods Inc. management)
May 5, 2003... BIRMINGHAM, ALA. -- Hibbett Sporting Goods stores are not flashy, and the company certainly is not the largest sporting goods chain. However, what Hibbett lacks in sizzle and size it compensates for with steadfast adherence to a strategy that...

Good Guys gets back in black: regional CE chain turns first profit since '96.(Good Guys Inc.'s annual profit)
May 5, 2003... SAN FRANCISCO -- Consumer electronics chain Good Guys Inc. did something last month it hadn't done since 1996: report an annual profit. The 71-store chain posted net income of $1.1 million for fiscal 2003 on the strength of a surprisingly...

Linens 'n Things reports soft first quarter.(Brief Article)
May 5, 2003... CLIFTON, N.J. -- Linens 'n Things posted net income of $2.1 million or 5 cents per share on a fully diluted basis for the first quarter ended April 5, versus $5.1 million or 12 cents per share for the same period last year. Norman Axelrod,...

Educators honor Wal-Mart's Coughlin.(Tom Coughlin)(Brief Article)
May 5, 2003... NEW YORK -- Long Island University and members of the retail industry gathered at a fund-raising dinner hosted in New York City April 15 to recognize Tom Coughlin, then-president and ceo of Wal-Mart Stores and Sam's Club USA, as a champion of...

Safeway stumble causes share price to tumble.
May 5, 2003... PLEASANTON, CALIF. -- Safeway shares took a beating after the company announced that fiat comparable-store sales and problems in switching to central purchasing would contribute to lower-than-expected earnings. The company said first quarter...

Blockbuster DVD sales are sudden runaway hit.(Blockbuster Entertainment Group)
May 5, 2003... DALLAS -- Blockbuster Entertainment's business model for the past 20 years has been to make money renting videos. But its recent efforts to get more customers to buy tapes and discs are paying off, as retail sales helped generate...

FAQ emerges from Chapter 11. (Market Watch).(bankruptcy)(Brief Article)
May 5, 2003... KING OF PRUSSIA, PA -- FAQ Inc. announced recently that it has emerged from Chapter 11 bankruptcy protection and that its confirmed Plan of Reorganization has now become effective. As part of its Plan of Reorganization, the company has closed...

Court approves Fleming motion. (Market Watch).(Fleming Companies Inc.)(Brief Article)
May 5, 2003... DALLAS -- Fleming Cos. has received interim court approval of its motion for $150 million secured DIP financing, subject to final documentation and budgetary approval by Fleming's DIP lenders. Until the conditions are met, the company will...

Compusa opens first international unit. (Market Watch).(Brief Article)
May 5, 2003... DALLAS -- CompUSA Inc. announced recently that it is entering Puerto Rico. Local operations will begin May 1, 2003, and the first CompUSA store will open in fall 2003.

Sam's Club revamps premium membership. (Market Watch).(Brief Article)
May 5, 2003... BENTONVILLE, ARK. -- In a move that could generate renewed interest in the premium membership level at Sam's Club, the $100 Elite membership program has been renamed Plus. Sam's officials declined to comment on the program, although...

Amazon.com. (Financials).(net loss)(Brief Article)
May 5, 2003... Amazon.com reported a net loss of $10 million, or 3 cents per share for 1Q, compared with a net loss of $23 million, or 6 cents per share over the same period last year.

Tuesday Morning. (Financials).(net income report)(Brief Article)
May 5, 2003... Despite a challenging retail environment, Tuesday Morning reported that net income increased 30% to $6.1 million, or 15 cents per share. Last year, net income totaled $4.7 million, or 11 cents per share.

PriceSmart. (Financials).(stock options)(Brief Article)
May 5, 2003... PriceSmart announced that all stock options currently held by employees with an exercise price of more than $20 per share have been repriced to $20 per share. As a result, the company expects a non-cash charge to earnings of $833,000 in the...

A poignant reminder that emotion is key to retailing. (Editorial).(International Mass Retail Association's conference)
May 5, 2003... A presentation by an international footwear retailer during the annual Marketing Conference, held recently by The International Mass Retail Association, reflected a key factor that challenges retailers and frustrates consumers around the...

Five food guys that get it. (View Point).
May 5, 2003... To call the last year in food retailing tumultuous may just be one of the industry's biggest understatements. On just about every level, there were market shake-ups of historic proportions. On the supermarket side, Royal Ahold, which does...

Supply chain security and free trade go hand in hand. (Guest Column).(IMRA America Inc.)
May 5, 2003... IMRA has long been a major player in the international trade arena. We have a history of taking the lead on major trade issues such as Customs automation, normal trade relations with China and last year's West Coast port shutdown. And on the...