Tuesday, September 8th, 2009
Whole Foods
Sales at Whole Foods continue to slide with sales down 4.8% in their last quarter. The upscale super market is facing new competition from the major chains such as Kroger and Safeway and has a core shopper problem that buys items rather than an entire cart of goods. Likewise, many of their core shoppers have switched to cheaper goods within the store and to lower priced retailers such as Traders Joe.
On top of competitive and consumer problems the company is trying to swallow a pill of bad real estate decisions. A combination of too many stores in marginal markets; markets that are too small for a new generation of larger stores up to 80,000 square feet; and high rents have significantly reduced profits. In response the chain has slowed new store openings from a planned 25-30 for 2009 but openings have been scaled back to 15.
More importantly, Whole Foods has begun a major repositioning program where it is moving away from gourmet foods to natural food and healthy eating. Likewise, founder John Mackey has vowed to remove the junk food from his store. Makes you wonder how he is going to fill up all of those oversized stores acquired in the last few years.
(more…)
Tags: economy, market, Retail, sales
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Wednesday, May 13th, 2009
Scratchies aren’t characters from The Simpsons. They’re what Aussies call scratch-off lottery tickets, and they are just one of the 21st-century equivalents of the lipstick that Depression-era women bought to brighten their lives.
It’s not only lipstick that’s enjoying a sales boost; women are turning to all beauty products for affordable indulgences. This category is booming in India, with some having just discovered makeup. (Good girls weren’t supposed to use cosmetics.) Now that it’s become acceptable to wear it, they’re not letting it go just because of the recession.
Global consumers are also finding solace in other treats. Chocolate is raising endorphins from Seoul to São Paulo. Argentineans can’t get enough of alfajores, dulce de leche sandwich cookies. (more…)
Tags: chocolate, consumers, lingerie, recession, Retail, sales
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Friday, April 17th, 2009
UK retail sales fell in March compared with a year earlier, the British Retail Consortium (BRC) has said.
Like-for-like sales, which do not include sales from new shops, fell 1.2% – the ninth fall in sales in the past 10 months.
The BRC said continued economic uncertainty was leading consumers to tighten their belts.
The fall was exacerbated by the fact that Easter fell in April this year but in March last year.
As a result, March’s figures did not include the traditional boost from Easter sales.
Expensive items suffered the the most pronounced drop last month, with furniture sales falling to their lowest level in at least nine years.
‘Tight control’
Meaningful year-on-year comparisons were also made more difficult by the unusually cold weather in March last year, the BRC added.
“Customers are still worried about jobs and their own finances, so they are keeping spending under tight control,” said Stephen Robertson, director general of the consortium, which compiled the figures along with consultancy firm KPMG.
But there were some sectors that saw sales increase.
Non-food internet, phone and mail-order sales, for example, jumped by 10.8%.
Food, clothing and footwear sales also rose slightly.
Total sales in March – which includes new store space – were up 0.6% from a year go.
“A slight air of pre-spring optimism tempted customers to buy new season clothing and women’s footwear,” said Mr Robertson.
“But this is unlikely to be the basis of any sustained improvement,” he cautioned.
Tags: consumer spending, Retail, sales, UK
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