Survey: Retailers to Increase Holiday Discounts, Promotions
Chicago, According to a new study by BDO Seidman, LLP, an accounting and consulting organization, almost three-quarters (73%) of chief marketing officers (CMOs) at leading U.S. retailers believe discounting and promotions will be more plentiful this holiday season compared to 2006 due to the current credit crunch.
These same credit concerns have led almost two-thirds (64%) of the CMOs to be more cautious in their sales and inventory purchase plans than in 2006. Despite a majority (54%) predicting flat sales this holiday season, overall the CMOs are forecasting a 5.03% increase in same store sales.
In addition, more than one-quarter (26%) of the CMOs said the safety issues surrounding Chinese products has affected their planned inventory assortment and led them to focus more of their marketing efforts on U.S. made products. However, only 15% of the CMOs said they have made changes to their supply chain due to the much-publicized product recalls linked to Chinese suppliers.
More than a third (37%) of the CMOs polled said they are increasing their marketing focus on “green” products this holiday season compared to 2006.
Vegas Fresh & Easy stores to open Nov. 14
EL SEGUNDO, Calif. Tesco today announced that it will open five Fresh & Easy Neighborhood Market stores in the Las Vegas area on Nov. 14.
These five stores will be the first Fresh & Easy locations to open in Nevada. The company has announced six California store openings on Nov. 8 in Los Angeles, Anaheim, Arcadia, Hemet, West Covina and Upland. The company said more stores will also open in San Diego and Phoenix by the end of the year.
“We are very excited to open our doors and bring fresh, wholesome food at affordable prices to our neighbors in Las Vegas,” said Tim Mason, Fresh & Easy’s ceo. “We are also excited to show the community our strong commitment to being a good neighbor and a great place to work.”
According to Tesco, each Fresh & Easy store will be roughly 10,000 square feet, smaller than the typical supermarket to give customers a faster, easier shopping experience. In addition to offering a range of Fresh & Easy private label and national brand name products at low prices, Fresh & Easy will also offer customers a selection of fresh, prepared meals.
DSW lowers 2007 outlook
COLUMBUS, Ohio DSW today announced that it has lowered its guidance for 2007. The company now expects annual comparable-store sales to be in the range of flat to down 2%, below its original guidance for comparable-store sales to be flat to up 3%.
The change in the outlook, according to DSW, is because the company estimates a mid-single-digit decline in comparable-store sales for the third quarter ending Nov. 3, based on net sales results for the 11 weeks ended Oct. 20.
DSW said that based on current business trends, estimated annual 2007 earnings are now expected to be at least 10% below last year’s reported diluted earnings per share of $1.48, below the company’s previously announced estimate for diluted earnings per share of $1.63 to $1.68.