retail stocks posts
FeedPosted Nov 12th 2009 2:00PM by Tom Johansmeyer (RSS feed)
Filed under: Wal-Mart (WMT), Black Friday
Wal-Mart (WMT) won't close Thanksgiving weekend -- not at all. The world's largest retailer is going to keep its stores open 24 hours in an attempt to manage demand for entry during the busiest shopping days of the year. The company has announced it will also implement other crowd-control measures. The festivities start at 5 AM on November 27, 2009. Of course, this doesn't involve any change fro the Wal-Mart Supercenters which already remain open 24 hours a day, but it does address the 800 stores that aren't.
The 24-hour access alone won't do much to alleviate the pressure from thrill-seekers and the bargain-crazed who will want to push through immediately. To help with this problem, Wal-Mart is allowing people to gather in different parts of the store when waiting for the deals to kick off. According to Wal-Mart spokesman David Tovar, "If you've got a 200,000-square-foot store, people will be dispersed throughout the store instead of lined up outside the store." Yeah, that makes a lot of sense.
As the old infomercial guys love to say ... "But wait, there's more!"
Continue reading Wal-Mart amps up hours, crowd control for Black Friday
Posted Nov 10th 2009 4:45PM by Tom Johansmeyer (RSS feed)
Filed under: Employees, Economic data, Headline news
Retail hiring for the holiday shopping season was expected to be slow, and now we have the data to confirm it. According to data from Bureau of Labor Statistics (supplied to BloggingStocks by Challenger, Gray & Christmas), the retail sector added only 63,500 jobs in October -- in data that appropriately was not seasonally adjusted.
This is only slightly better than the 59,100 retail jobs added in October 2008. In the fourth quarter of last year, retail employment increased by a mere 384,300 jobs, with the retail industry turning in its worst holiday shopping season employment stats since 1989 (when it added 380,500 workers).
Continue reading Holiday hiring slow for retailers
Posted Nov 9th 2009 8:40AM by Tom Johansmeyer (RSS feed)
Filed under: Competitive strategy, Google (GOOG), Amazon.com (AMZN), Media World, Technology
If Amazon (AMZN) was comfortable with its spot atop the e-reader market, it just got a wakeup call from Barnes & Noble (BKS). The brick-and-mortar book retailer's e-reader, the Nook, which hasn't even hit stores yet, is in pre-order nirvana right now. The first run for the Nook occurred at the end of October (the product was introduced on October 20). These buyers were told the reader would ship on November 30. High demand resulted in backorders, so the next wave of pre-orders was scheduled to ship on December 7. Now, a third group will have to wait until December 11.
This product is on fire, and it still isn't even on shelves yet.
Mary Ellen Keating, a spokeswoman for Barnes & Noble wouldn't reveal how many of these devices have been pre-ordered, but she did say, "Demand for the product in our stores and online has surpassed our expectations." She also noted, "We are working hard to meet demand for the holidays."
Continue reading Barnes & Noble's Nook already makes a splash
Posted Nov 6th 2009 11:40AM by Tom Johansmeyer (RSS feed)
Filed under: Wal-Mart (WMT), Target Corp. (TGT), Costco Wholesale (COST), Gap Inc (GPS), Nordstrom, Inc (JWN)
There's a chill in the air and a slight up-tick in confidence. Holiday discounts are coming a bit earlier, too. For retailers, this has been a great combination, leading to the second consecutive month in which retail sales increased.
This follows more than a year of drops. Consumers aren't going crazy, but they are loosening their wallets a little bit. Consumer spending accounts for 70% of the U.S. economy, and the coming holiday season is where the action is -- for the retail sector and, consequently, for everyone else.
Continue reading Retail sales: Signs of life, but not yet a rising tide
Posted Nov 4th 2009 8:40AM by Tom Johansmeyer (RSS feed)
Filed under: Apple Inc (AAPL), Amazon.com (AMZN), Netflix, Inc. (NFLX), Blockbuster Inc 'A' (BBI), Best Buy (BBY), Media World, Technology
Best Buy (NYSE: BBY) may be the world's largest electronics retailer, but it realizes that it faces a huge threat to a hefty chunk of its business. Apple (NASDAQ: AAPL) is moving plenty of movies and other soon-to-be former DVD fare through iTunes, staking a claim on a business that once belonged to Best Buy. The big box store is getting ready to fight back (finally?).
Using technology it's licensing from Sonic Solutions (NASDAQ: SNIC), Best Buy is opening an online store for movies and television shows. Best Buy CEO Brian Dunn says this move will expand the company's presence in services and will bolster company loyalty. That's the press release version, of course. The reality is that Best Buy needed to do something to protect this portion of its revenue and probably should have made the move several years ago.
Continue reading Best Buy follows Amazon into the clouds
Posted Nov 3rd 2009 10:40AM by Steven Halpern (RSS feed)
Filed under: Amazon.com (AMZN), Newsletters, Stocks to Buy
Two of the newsletter industry's leading growth stock advisors remain bullish on the prospects of online retailer Amazon.com (NASDAQ: AMZN), based on growth in not only online retailing but new market areas ranging from the Kindle e-reader to cloud computing.
Mike Cintolo, editor of The Cabot Top Ten Report, explains, "Amazon.com recently blew away earnings expectations." Meanwhile, Alexander Green, investment director at The Oxford Club, says, "In our view, the best lies ahead for the company." Here are their reviews.
Mike Cintolo continues, "Amazon announced that its Kindle e-book reader is now its most popular selling item, both in units and in dollars. That led to a big acceleration in revenue growth (28%, the fastest in five quarters), while earnings leaped 67%.
Continue reading Amazon (AMZN): 'The best is still ahead'
Posted Nov 2nd 2009 1:20PM by Tom Johansmeyer (RSS feed)
Filed under: Internet, Competitive strategy, Dell (DELL), Starbucks (SBUX), Marketing and advertising, Next big thing, Target Corp. (TGT), Best Buy (BBY)
Once upon a time, retailers measured success by the number of people walking by in the mall, how many entered the store, the percentage they spent, and basket size. Now, a world of zeroes and ones has changed their perspective entirely. Social media is expected to be the star during the coming holiday season, with retailers pushing Facebook, YouTube, and Twitter content to get in front of consumers and affect either online or in-store purchases. Smaller Christmas budgets are expected, so the fight is on to garner as large a share as possible of a shrinking pie.
Of course, nobody would come out and say, "Social media is nonsense, and I'm not getting anything for my investment." So, when the likes of Starbucks (NASDAQ: SBUX), JCPenney (NYSE: JCP), and Target (NYSE: TGT) say that social media is connecting them with their customers and leading to more effective campaigns and product launches, do take it with a grain of salt. What can't be ignored, however, is that they're committing more resources to social media marketing, even though it's still far too soon to tell if it will be effective.
Continue reading Retailers push social media, want bigger wallet share for Christmas
Posted Oct 30th 2009 1:00PM by Tom Johansmeyer (RSS feed)
Filed under: Competitive strategy, Wal-Mart (WMT), Amazon.com (AMZN), Target Corp. (TGT), Books
Small book retailers were buying in bulk from major online booksellers because they could really save some money. One was buying up to 70 copies of a particular title -- it was $5 less a pop from the big guys than it would have been from the publisher. Finally, however, the big retailers have become wise to the trend and taken action, according to the Wall Street Journal (subscription required).
Wal-Mart (NYSE: WMT), Amazon (NASDAQ: AMZN), and Target (NYSE: TGT) have decided to cap the number of books customers can buy online, a measure intended to prevent smaller competitors from treating them as partners. Walmart is limiting customers to two copies of a particular book, with Amazon placing the border at three and Target at five.
Continue reading Major booksellers didn't realize they were suppliers to rivals
Posted Oct 26th 2009 11:40AM by Tom Johansmeyer (RSS feed)
Filed under: Industry, Consumer experience, Internet, Competitive strategy, Google (GOOG), Microsoft (MSFT), Amazon.com (AMZN)
Traditional retailers haven't exactly embraced online sales channels. Sure, they all have websites, and they sell varying amounts of merchandise through them, but they've been slow to tap into the potential. When I was watching the space as an analyst at a major consulting firm (admittedly, back in 2007), many retailers equated a website to a new store opening. Finally, however, this industry is starting to see the potential of this venue, particularly when it comes to tracking consumer behavior.
When the CEO of Macy's (NYSE: M), Terry Lundgren, says that online sales are only good for 6% of last year's total sales, it's a hint. The translation: "We focus on where the revenue is" is much different from "We focus on where the revenue could be." Aeropostale (NYSE: ARO), on the other hand, sees the upside of playing in the online space, which is where it saw revenues spike 85% last year. Aeropostale has seen increases in traditional venues too, but nothing like what it's realized on the web.
So, maybe there's something to this internet, after all.
Continue reading Consumers dislike web tracking, but not enough to change behavior
Posted Oct 15th 2009 1:30PM by Steven Halpern (RSS feed)
Filed under: Newsletters, Walgreen Co (WAG), Stocks to Buy
"Walgreen (NYSE: WAG) reported fourth quarter profits that topped Wall Street's expectations," says Geoffrey Seiler.
In his BullMarket,com advisory, he forecasts, "We expect to see continued operational improvements in the months ahead." Here, the advisor reiterates his buy rating and boosts his price target for the stock.
The advisor observes,, "The company reported a net profit of $436 million, or 44 cents per share, for the quarter ended August 31st, a -1.5% decrease the same quarter a year ago. Results topped the Wall Street consensus by 5 cents share and edged the full-year EPS estimate by 3 cents.
Continue reading Walgreen (WAG): More healthy returns
Posted Oct 9th 2009 4:20PM by Tom Johansmeyer (RSS feed)
Filed under: Target Corp. (TGT), Kohl's Corp (KSS), Economic data, Limited Brands (LTD)
Consumers are finally spending more, with September posting the first gain in more than a year. The International Council of Shopping Centers and Goldman Sachs (NYSE: GS) found that retail sales inched 0.1% higher last month. It doesn't seem like much, but a gain when you anticipate a fall is good news magnified. But, it came at the expense of great deals and other tools to entice somewhat hesitant customers into stores.
Kohl's (NYSE: KSS) and Limited Brands (NYSE: LTD) reported sales increases in September for stores open more than a year. J.C. Penney (NYSE: JCP), Macy's (NYSE: M) and Target (NYSE: TGT) posted declines, but they were better than expected. Delayed school openings thanks to a late Labor Day helped push to September sales that might have occurred in August otherwise.
Of course, all eyes are on the coming holiday season. The National Retail Federation forecasts U.S. consumer spending of $437.6 billion – up only slightly from $433.7 billion four years ago. So, we still have a lot of ground to make up before we can celebrate a recovery. As long as the situation is staying steady, though, we'll at least have a solid starting point.
Posted Oct 8th 2009 3:00PM by Steven Halpern (RSS feed)
Filed under: Newsletters, Stocks to Buy
Validea is an intriguing newsletter that selects stocks based on the strategies of the market's most legendary investors. Here, editor John Reese takes a look at Aeropostale (NYSE: ARO).
"This mall-based clothing retailer targets youngsters age 14 to age 17 through more than 900 stores in 49 states, Puerto Rico, and Canada.
"The company has developed a new retail store concept called P.S. from Aeropostale, which will offer casual clothing and accessories focusing on elementary school children between the ages of seven and 12.
Continue reading Market 'legends' like Aeropostale (ARO)
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