Search results for retail
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Posted
Mar 21 2008, 11:20 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Conventional wisdom says McDonald’s should continue to have great success as the economy slows and consumers trade down restaurants just as they’ve been trading down to Wal-Mart for their shopping needs. Sounds great, except that the company's insiders beg to differ: Over the last six months, nearly 760,000 shares worth some $43 million have been sold.
A significant amount by any measure, this works out to roughly a 20% liquidation of the insiders according to Thomson Financial. CEO James Skinner sold 35% of his stake. Gloria Santona, the general counsel, parted with more than half of her shares. Jose Armario, responsible for Canada and Latin America, traded away 80% of his holdings.
My guess is that they’re less than confident about the big McCafé push. Better drip coffee is one thing, and McDonald’s definitely has good drip coffee. But going head-to-head with Starbucks is another. Don’t kid yourself: McDonald’s will never be Starbucks -- and by the look of things it probably doesn’t want to be Starbucks anyway. There just isn’t any synergy between burgers, fries, and cappuccinos.
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Posted
Jun 04 2009, 03:37 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
Many big-box retailers, including Best Buy (BBY), Target (TGT), and Costco (COST), are struggling as the recession beats down their same-store sales. General retailers such as Sears (SHLD) are not faring any better. That means that the layoffs in the retail industry, which have already been extensive, are likely to continue, especially if the 2009 holiday season is weak.
Wal-Mart (WMT) is at the other end of the spectrum, by itself. The world’s largest retailer says it will add 22,000 jobs at its U.S. stores this year. That is down slightly from 2008, but in an economy that is forcing hundreds of thousands of people out of work each month, it is extremely impressive.
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Posted
Feb 25 2009, 11:02 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Rising concern over increased regulation from the Obama White House has gun buffs stocking up on the latest tactical rifles and pistols. This helps the fortunes of gun makers Smith & Wesson (SWHC) and Ruger (RGR) as well as specialty retailer Cabela's (CAB), which specializes in firearms and hunting gear.
Ruger reported Tuesday that gun sales increased 81% in the fourth quarter on new products and "robust firearms demand." Its order backlog now stands at $48 million. Smith & Wesson plans to double revenue within the next three years and reported increased sales from "speculation on the outcome of the presidential election." Cabela's reported that same-store sales rose 2.2% over the holiday election season -- a time of great distress for other retailers.
With that kind of performance, it's not surprising investors are
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Posted
Apr 10 2008, 09:44 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Pity Howard Shultz. Even after retaking the reins of his global latté-brewing behemoth, vowing to return the company to its roots and launching a six-point plan of attack, his Starbucks shares continue their sickening slide. With this week's launch of the new Pike Place Roast, he's now busily touting efforts to "reinvent brewed coffee across America." Unfortunately, brewed coffee isn’t exciting, and with a much lower-selling price than Starbucks' espresso-based drinks, its promotion will surely erode margins.
The other growth initiatives are similarly lackluster: New coffee machines, a customer rewards program, a stronger focus on environmental initiatives, and a dedicated web portal to accept new ideas from anyone who cares. The last smacks of desperation. So, being a native Seattleite, I feel obligated to offer a simple, four-point rescue plan:
1. Stop focusing exclusively on coffee: Yes, Starbucks needs to do everything it can to improve its image as a purveyor of premium coffee. The move towards pre-ground beans and automatic espresso makers left it vulnerable. This is especially true now that McDonald’s and others are offering vastly improved and in some cases superior coffee, mitigating the company’s claims to quality.
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Posted
Mar 29 2008, 12:38 PM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
If you track the blogosphere, it seems that the popularity of the humble dollar store is soaring, and that these stores aren't as humble as they used to be. Imagine this: The extremely picky "Mrs. Badger" at Lipstick is my Crack has even switched from body wash to bar soap because she found soaps she loves at the dollar store. "Yeah! It's not all Irish Spring and Lifebuoy up in there anymore, y'all! And it's not all no-name generic soaps made out of battery acid and bacon grease (I just made that up; don't e-mail me) anymore, either," she writes. In fact, the august New York Times, which caters to a crowd that can hardly be called frugal, featured writer Henry Alford's experiment to incorporate items from 99-cent stores into his cooking, culminating with a dinner featuring only such fare. It sounded delicious. But not everyone is thrilled with the food and other common dollar store products.
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Posted
Apr 09 2008, 11:08 AM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
Walk into the Circuit City in my town, and you'll suddenly get a strange sensation. Look around...you're the only person there. Wait, someone must work here. Hello? Anyone? Then head over to Best Buy, which is packed with customers and ringing up sales.
Why is Circuit City struggling while Best Buy shines? There are many reasons: prices, marketing and sales strategy top the list. Look at the stock prices of the two: Circuit City shares have fallen from nearly $19 a year ago to $4.30 today, while Best Buy shares have stayed in the $40 to $50 range all year.
Circuit City might see some big changes soon. BusinessWeek reports that the retailer may have hired Goldman Sachs to look into sale possibilities. This comes after the company's turnaround plan has failed. Analysts say one of the worst decisions executives made was to fire 3,400 of the most experienced workers and replace them with lower-paid ones, according to Business Week. Customer service went out the window.
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Posted
Mar 28 2008, 02:47 PM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
How does positive-thinking blogger Steve Olson really feel about Wal-Mart? A positive-thinking tip in one of the most popular posts at his site is "Visit Target frequently and stay out of Wal-Mart." He's not the only blogger to share his opinion on the big-box titans. Several lately have posted comparisons of the two stores. Steve, of Steve-Olson.com, back in 2006 listed 10 reasons why he prefers Target, including "I've never seen anyone wearing a NASCAR shirt, purple sweat pants, and pink fluffy slippers at Target." Also, the aisles at Wal-Mart are too narrow, the employees are surly and not helpful, and the customers look depressed. (Read his anecdote about shopping for a lunch box at both stores.) He added: "Wal-Mart's atmosphere is cheap and crass. Target's atmosphere exudes progress and style."
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Posted
Apr 02 2008, 08:34 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
After fighting all the way to the Supreme Court, retailing behemoth Wal-Mart announced yesterday it would drop its claim to the settlement a former employee received after a horrific traffic accident. The change of heart came just as the funds, all $270,000 that remained, were being prepped for transfer to the company’s coffers. Unfortunately, it comes way too late to save any shred of goodwill in the minds of consumers.
The case involves 52-year-old Deborah Shank, who worked as a night-shift shelf stocker until a run-in with a tractor-trailer left her permanently brain-damaged and wheelchair bound. Although the story has been in and out of the news since December, things picked up when Wal-Mart won its suit against the family a few weeks ago.
This spurred MSNBC’s Keith Olbermann to award the company his “Worst Person in the World” award for four straight nights—starting with this tirade last Thursday. The blogosphere absolutely erupted over the story’s injustice. No wonder, given that this stokes all those passionate anti-corporatism and anti-globalization feelings bloggers often harbor.
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Posted
Jan 16 2009, 08:15 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Tired of fighting activist investors, merger offers, and creditors, Circuit City (CCTYQ) can no longer avoid the inevitable.
The second-largest electronics retailer will be liquidated after it failed to attract a buyer. All 567 U.S. stores will be closed. Roughly 30,000 workers will be laid off. Shareholders will be wiped out.
According to reports from the WSJ, three potential bidders were interested in the beleaguered retailer and continued bidding for the company's future at its New York law firm late into the night on Thursday.
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Posted
Jul 01 2008, 10:31 PM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Finally, some good news from Starbucks: the coffee-shop behemoth is closing 600 stores and cutting 12,000 jobs, roughly 7% of its global workforce.
This is a gutsy move for founder Howard Schultz, who just recently retook the helm with broad pronouncements of returning to roots and reigniting the "emotional attachment with customers" that has been lost over time. After all, Starbucks now has 16,226 locations, up from just 1,886 over the last 10 years. With operations in such faraway lands as Lebanon, Kuwait, Saudi Arabia, Indonesia, Argentina, and Romania, Starbucks' expansionist future once seemed boundless.
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