A&P Restructures Debt With Tender Offers
Montvale, N.J., The Great Atlantic & Pacific Tea Co. Inc. cashed in some of its outstanding notes with tender offers to help with the company’s debt. Senior retail analyst Mariza Costa believes the move makes sense because A&P previously had to pay interest on the notes that total in the millions of dollars. Costa said, “Interest expenses will decline substantially per quarter, and the company can concentrate on reorganizing and restructuring.”
The company, which has been having financial difficulties, plans to reorganize and become a “New A&P.”
Retailers Cater to College Students
New York City, The back-to-school season may have a new focus. College students are increasingly interested in decorating their dorm rooms, and they are willing to pay plenty to do it. According to National Retail Federation, college students spent $2.6 billion in dorm room furnishings in 2004. That number does not include the $7.5 billion spent on electronics.
Retailers have responded to this market by offering new dorm-room furnishings, such as more brightly colored backrests and beanbag chairs. Companies are also implementing unique incentives for students. For example, Target Corp. plans to give students free roundtrip bus trips from university campuses and Bed Bath & Beyond Inc. and Linens ’n Things Inc. now have dorm registries on their Web sites.
New York City, Tweens have a big say in family purchasing decisions, according to the new Nickelodeon/Youth Intelligence June 2005 Tween Report. The 9- to 14-year-old age group wields considerable influence on household purchases, the report shows, particularly on technology-related products such as computers.
According to study, tweens average $9.15 per week in allowance or spending money. They rely on their parents to pay for clothing, food, room decor and toiletries, and save their money to buy “non-necessities” in categories of entertainment, technology and fashion.
Girls strongly influence purchasing decisions on buying clothes and CDs, and for which movies to rent and see in the theater, according to the report. Boys exert their influence on parents when it comes to which video games or systems to buy and which television shows to watch.