UK retailers report biggest annual price falls since May

LONDON - British retailers reported the biggest annual fall in prices since May this month, adding to signs of pressure on the sector since non-essential stores had to close to the public from Jan. 5 as part of renewed COVID lockdown measures.

The British Retail Consortium, a trade body, said on Wednesday that its members saw average prices fall by 2.2 percent in January compared with a year earlier, the largest such fall since the depths of Britain’s first lockdown in May.

Food prices rose by 0.2 percent, the smallest increase since January 2017, and non-food prices dropped by 3.6 percent.

“Post-Christmas sales and the national lockdown drove non-food prices down – especially for clothing and DIY goods,” BRC chief executive Helen Dickinson said.

Britain’s official measure of consumer price inflation, which covers a wider range of goods and services, showed annual prices rises of 0.6 percent in December.

Dickinson said that as well as facing softer consumer demand, retailers were under pressure from higher costs which they may prove unable to absorb.

“Brexit-related red tape, rising global shipping costs and food commodity prices, as well as the weight of forced closures and restrictions for many retail businesses, means that pricing pressures are stacking up,” she said.

New lockdown measures to combat a surge in COVID-19 cases and deaths have added to a normal post-Christmas belt-tightening by British consumers.

Experimental data last week from the Office for National Statistics, which is not seasonally adjusted, showed a 35 percent fall in consumer spending in early January, and on Tuesday the Confederation of British Industry reported its weakest retail number since May.

-reuters-

Consumer group warns vs lifting of price freeze on basic goods

MANILA - Lifting of price freeze on basic necessities may lead to price increases on essential goods, a consumer welfare group warned Friday, as the government begins to relax lockdown rules in various parts of the country.

Laban Konsyumer said that if the price freeze on basic goods ends on Friday, retailers and manufacturers will take advantage and increase prices immediately.

“Ang signal niyan sa mga negosyante, 'Oh, umpisahan na natin 'yung ating mga proposal for price increases,” said Laban Konsyumer president Vic Dimagiba.

(That's a signal for merchants to say, "Oh, let's start our proposals for price increases.")

The Department of Trade and Industry (DTI), Department of Agriculture (DA), and Department of Health (DOH) on May 8 issued joint memorandum circular (JMC) No. 2020-01 entitled "Price Freeze under a State of Calamity throughout the Philippines due to the Coronavirus Disease 2019."

Under that JMC, prices of basic necessities under the jurisdiction of the DTI, DA, and DOH were fixed at their prevailing levels, effective until Friday. These included food, water, agricultural products, medicine, and medical supplies.

Dimagiba said the agencies can recommend to President Rodrigo Duterte to extend the price freeze.

“Kung ang intention at spirit ng Bayanihan to Heal as One Act ang ating susundin, hindi mo basta-basta pwedeng i-lift. Even then, kung talagang gustong tumulong ng pamahalaan, itong mga regulators [should] ensure na ang presyo ay stable. Wala nang magsasamantala na, magtataasan ng presyo,” he said, citing the measure, which strictly prohibits overpricing and hoarding of goods during the pandemic.

(If we are following the intention and spirit of the Bayanihan to Heal as One Act, we can't just lift the price freeze. Even then, if the government really wants to help, these regulators should ensure prices are stable. No one should take advantage, increase prices.)

But Trade Undersecretary Ruth Castelo explained that they have to follow the Price Act, which states that any price control in the country should be effective not for more than 60 days. She said this is why different agencies are also issuing suggested retail prices (SRPs).

“Between the Executive Order of the President and a law passed by the Congress, promulgated by Congress, susundin natin siyempre 'yung Price Act,” she explained.

(Between the Executive Order of the President and a law passed by the Congress, promulgated by Congress, we should follow the Price Act.)

“Mayroong mga measures naman provided in the Price Act like the mandatory price ceiling. Upon the lifting of the 60-day-period, pwedeng mag-recommend ang implementing agencies ng price ceiling to the President, and then when the President approves it, yun ang i-implement natin na presyo but we have the suggested retail price which is strictly enforced,” she added.

(There are measures in the Price Act, like the mandatory price ceiling. Upon the lifting of the 60-day-period, implementing agencies can recommend price ceilings to the President, and then when the President approves it, they will be implemented by us, but we have the suggested retail price which is strictly enforced.)

She said that the DTI has been coordinating with law enforcement groups such as the police, military and the National Bureau of Investigation as early as January, during the Taal Volcano eruption to strictly enforce implementation of the SRPs.

“Remember in the Price Act, ang fini-freeze natin ay prevailing price. Magkakaiba 'yun per region, per province. Very challenging ang implementation namin ng price freeze per province. meron pang iba per municipalities, unlike the suggested retail price that we have that covers all regions and provinces in the country.”

(Remember in the Price Act, what we are freezing our prevailing prices. They are different per region, per province. Our implementation of price freeze is very challenging as they differ per province and even per municipalities, unlike the suggested retail price that we have that covers all regions and provinces in the country.)

She assured the DTI will not approve pending requests from manufacturers of processed milk, detergent soap, processed canned goods, and condiments to increase prices anytime soon, while the country is still fighting COVID-19.

DTI chief Ramon Lopez earlier said that while the Philippines stays under state of calamity due to the COVID-19 pandemic, price freeze will stay in place.

"We will just renew the price freeze. Kasi nasa batas, 60 days lang ang price freeze (Under law, price freeze is only for 60 days). Pagka-state of calamity, price freeze talaga (During state of calamity, price freeze is really implemented)," he said.

Agriculture Secretary William Dar meanwhile they will look into expanding the SRPs of agricultural and fishery products to include more items that were previously not covered. He also appealed to retailers and producers not to take advantage of the situation.

“Kung wala kaming basehan sa prize freeze, pag-aaralan namin kung pwede na yung suggested retail price mechanism. Let me again request everyone not to take advantage during calamities or pandemic like COVID-19. Tulong-tulong po tayo sa ating mga mamamayan, mga magsasaka, mangingisda at tsaka consuming public," he said.

(If we don't yet have any basis on prize freeze, we will study if the suggested retail price mechanism is okay. Let me again everyone not to take advantage during calamities or pandemic like COVID-19. Let us help our citizens, farmers, fishermen and consuming public.)

news.abs-cbn.com

Online selling platform aims to help maximize business profits

Our wallets may be a bit slimmer, but our hearts are definitely fuller, especially after having spent the holiday season with loved ones, sharing gifts and making beautiful memories. 

Now, as you gear up for the New Year, it's time to write down your resolutions and put into action your plans for 2019. 

For some, it's nurturing a healthier mindset and achieving work-life balance. For others, it's increasing their income and becoming more financially stable and independent through business. And there's no greater time than now to become an entrepreneur as there are so many opportunities to start your own enterprise. 

By using the right tools, you don't have to spend too much on setting up your business as you can take more conservative steps and bringing your goods and services to the digital sphere as an online seller. 

Introducing, CheckMeOut. It's the perfect partner for you as it takes care of all your payments and delivery needs through its easy-to-use platform. 

Here's how CheckMeOut can help you build your online business and maximize your sales.

1. For many budding entrepreneurs, online selling becomes the ideal option as the market is dynamic and accessible.

CheckMeOut fits into your want for flexibility as it’s a platform that you can easily access from your phone and laptop - and it's absolutely free.

Simply register online on the CheckMeOut website, and you can start selling immediately.

2. When it comes to your items, there's no limit to what you can offer. From brand-new to preloved items, to knick-knacks, clothes and beyond – you can sell anything and everything online.

CheckMeOut also gives you links that you can share via social media networks and chat apps, allowing your store to operate 24 hours a day, 7 days a week.

3. Not only does CheckMeOut offer ease and efficiency as a tool, it presents buyers with convenience and security, making several payment options available such as cash on delivery (COD), credit card and online banking. CheckMeOut allows you to offer these options for free.

4. With CheckMeOut, you can sell and coordinate deliveries with ease, shipping your packages safely across the country.

CheckMeOut also offers free pickup of items for deliveries and includes insurance and flat national delivery rates for buyers. Now you can boost your business and build a relationship based on trust with your customers. 

5. Futurepreneurs also don't have to worry about overcoming the learning curve of business as CheckMeOut assists sellers through its Axxelerate program. 

This program not only teaches you how to run your business, it also brings buyers and sellers together to create a friendly and positive community. 

CheckMeOut's Axxelerate even hosts unique opportunities for entrepreneurs like the CheckMeOut Sellerfest Bazaar.

In 2019, take that crucial first step and become an online entrepreneur now with CheckMeOut.

Register and get your FREE account on www.checkmeout.ph.

NOTE: BrandNews articles are promotional features from our sponsors and not news articles from our editorial staff.

source: news.abs-cbn.com

Cyber Monday on track for US online shopping record

Cyber Monday was on track to bring in a record $7.8 billion in U.S. online sales, as millions of shoppers scoured for steep discounts on everything from Lego sets to big-screen TVs.

The marketing event was expected to pick up steam Monday evening as West Coast shoppers nab deals after work and those on the East Coast make purchases before bedtime, according to Adobe Analytics, which measures transactions from 80 of the top 100 US retailers.

"Many shoppers have waited on certain purchases, with three hours tonight expected to bring in as much revenue as an average full day," said Taylor Schreiner, director of Adobe Digital Insights.

Target Corp and Amazon.com Inc were pulling out all the stops, offering free delivery with no minimum order requirement and bombarding shoppers with promotional emails. Companies had logged $531 million in sales as of 10 a.m. ET (11 p.m. in Manila), Adobe Analytics found.

On Wall Street, investors showed their enthusiasm. Shares of Amazon closed up 5 percent. Macy's Inc, Kohls Corp and Target shares rose as well.

In another estimate, Mastercard SpendingPulse forecast a 25 percent jump in e-commerce sales to at least $3 billion, based on sales via the Mastercard payments network and estimates for other payment forms such as cash and check.

These US forecasts still paled in comparison to Alibaba Group Holding Ltd's "Singles Day" earlier this month, when the Chinese e-commerce giant raked in $30.7 billion in sales.

Some industry observers saw a down side to the US shopping frenzy.

Bob Phibbs, chief executive of New York-based consultancy the Retail Doctor, warned of potential store closures if brick-and-mortar players discounted items too heavily this holiday season.

"Online discounts and free shipping are significantly cutting into retailers' profits," he said. "Retailers are just spending money in the hopes that they don’t lose too much more."

The promotional efforts also drew the ire of customers who complained they woke up to even more Cyber Monday emails than in years past.

"Yes retailers, I'm aware it's Cyber Monday even without the 150 emails," tweeted Keina (@RealMamaEagle), a user from Delaware.

DEEP DISCOUNTS ON TOYS

Drawing an estimated 75 million shoppers, the day was a test of retailers' online platforms and delivery operations.

Without the right IT infrastructure, the heavy traffic could have caused hours of glitches like those during Amazon's Prime Day marketing event in July.

But as of 5:30 p.m. ET on Monday, no big US chain had notable technical difficulties, according to outage tracker DownDetector.com. On Black Friday some websites including apparel retailer J.Crew and home improvement chain Lowe's Cos Inc had temporary outages.

Consumers are increasingly doing their holiday shopping online, diluting the importance of Black Friday, when shoppers traditionally flocked to brick-and-mortar stores for the best deals.

"I find Cyber Monday to be more convenient than Black Friday," said Jeissy Casilla, 23, a retail worker in Puerto Rico. "I think that Cyber Monday is better in terms of how much you can get done while doing so little - basically a better chance at the best deals."

Toys were expected to have the biggest discounts, Adobe Analytics said, as retailers rush to fill the void left by the bankruptcy of top US toy retailer Toys 'R' Us.

Target offered 30 percent off on select toys, while Kohl's discounted Lego sets between 30 percent and 40 percent.

"This year, retailers are much clearer about where their strengths lie, rather than just attempting to beat Amazon at its own game," said retail analyst Carol Spieckerman.

Social media conversation tracker Brandwatch said out of 13,000 social media mentions of #Cybermonday, the Apple Watch and the Red Dead Redemption 2 video game were two products that were highly discussed.

The National Retail Federation forecast US holiday retail sales, including online, in November and December will increase between 4.3 percent and 4.8 percent over 2017, for a total of $717.45 billion to $720.89 billion.

source: news.abs-cbn.com

Wall Street investors caught in crossfire of fight for holiday shoppers

NEW YORK -- Investors would normally be thankful for a strong US economy, yet this holiday season they worry retailers may have to spend heavily to win, leaving shareholders with a lump of coal.

Steep discounts are as familiar a sight during the holidays as rich desserts, but this year so is a fierce grab for a slice of the e-commerce market as Amazon.com Inc and Target Corp offer free shipping for small purchases.

US shoppers formed long lines at checkout counters on "Black Friday" to take advantage of discounts on clothing and electronics, offering evidence that a healthy economy and rising wages are translating into stronger consumer spending at the start of retailers' make-or-break holiday season.

Yet underwhelming earnings reports earlier this week from Target to department store Kohl's Corp and home-improvement specialist Lowe's Cos Inc reminded investors that US tariffs on imported goods, fickle consumer tastes and competition could eat away at profits this year.

Target shares fell 10 percent on Tuesday as the company said profit margins declined due to growing investments in boosting its online business, wage increases, price cuts and the higher cost of preparing and shipping orders. Target shares fell 2.7 percent on Friday.

"The retailers and e-commerce players are duking it out," Shawn Kravetz, Esplanade Capital LLC's chief investment officer, said at the Reuters Global Investment 2019 Outlook Summit in New York last week.

"Amazon is buying that (consumer retail) business. Other players are buying that business. So it's a war."

Kravetz, whose first job after earning an MBA in 1995 was at CML Group Inc, a company that sold NordicTrack exercise machines through catalogs and television advertisements, said "the old joke was that we gave away stuff for free to sell people shipping."

The game has changed for retail players now, he said.

"They have almost no gross margin and they're giving away shipping. It's a tough gig. But if you're Amazon - and you're playing the long game - if you can only get another trillion dollars' worth of revenue and then raise prices one percent the numbers can work."

More retailers face pressure to cut into their margins or sacrifice growth, creating a catch-22 for investors even as consumers spent strongly during the sales following Thursday's US Thanksgiving Day holiday. GlobalData Retail said that the average person shopping early on Black Friday spent $407.20, up 2.1 percent over last year.

Even so, money managers have been getting more selective.

Eaton Vance Corp portfolio manager Kathleen Gaffney, whose Multisector Income Fund holds bonds issued by JC Penney Co Inc and Nordstrom Inc, said she has scaled back the JC Penney holding.

"They've pretty much secured every asset that they have so it is going to be challenging. Nordstrom, on the other hand, is well suited for the current market," Gaffney said at the Reuters summit, adding that the company's managers have been effective and target a solid, upscale niche.

Nordstrom shares have added nearly 12 percent this year, including dividends, sharply paring gains closer to 50 percent earlier this year after reporting disappointing third-quarter same-store sales. JC Penney shares crashed nearly 60 percent over the same period as the company continued to struggle to appeal to changing tastes of younger shoppers less likely to frequent traditional department stores.

Katie Shaw, sector leader for the global consumer team at Fidelity Investments, said she is positive about retail stocks because US consumers are getting a raise, seeing inflation-adjusted wages gain at all income levels for the first time since the 2007-2009 global financial crisis. But Shaw has a lower holding in mall-based department stores and big-box retailers than the benchmark against which she is measured.

"The role of retail to a customer's life has changed," she said. "There are a number of companies who have yet to invest in driving emotional connection with consumers."

source: news.abs-cbn.com

Black Friday deals lure US shoppers, biggest sales gains online

NEW YORK - Shoppers across the United States snapped up deep discounts on toys, clothing, and electronics both online and at stores on Black Friday, giving retailers a strong start to their make-or-break holiday season.

A healthy economy and rising wages gave people the confidence to splash out on retailers' annual raft of bargains.

“The prices today are very good,” said Jose Manuel Cruz Hernandez, 59, who hit the Del Amo Fashion Center in Torrance, California, with his sister Paulina Cruz, 66, who comes every year from Mexico City to shop.

The pair spent $120 on princess dolls and other toys at the Walt Disney Co store, where items were 20 percent off. They spent a similar amount at Gap Inc, where items were discounted by about 55 percent.

Cruz Hernandez, a foreman at an aerospace firm, said he was comfortable with the US economy and his own finances and plans to spend another $1,000 on holiday gifts - about the same as last year.

A similar story played out online, where shoppers spent $643 million by 10 a.m. ET, up 28 percent from a year ago, according to Adobe Analytics, which tracks transactions at most of the top US online retailers. Smartphone sales in particular contributed to gains.

Foot traffic looked healthy at stores offering discounts, although detailed numbers on brick-and-mortar holiday sales will not be available for several days.

"Overall, Black Friday doesn't have the sense of urgency as in the past and feels more like a busy regular weekend day in many of the stores," said Dana Telsey at Telsey Advisory Group.

"Many of the promotions were available for the past couple of weeks," Telsey said. "We haven't noticed desperation from any retailer."

Shares of Macy's Inc, Kohl's Corp, and Target Corp all closed down on Friday and weighed on the broader S&P 500 retailing index, which closed down 0.56 percent.

Investors are concerned retail sales growth may have peaked in the second quarter and business will slow down as comparisons get tougher, said Brian Yarbrough, retail analyst with Edward Jones.

Victoria's Secret owner L Brands, Walmart Inc and American Eagle Outfitters rose. J.C. Penney Co Inc ended flat and Amazon.com Inc closed slightly lower.

The overall stock market finished a shortened session with losses.

STRONG ONLINE SALES

Early numbers showed overall retail sales, both in stores and online, were in line with expectations, according to Mastercard Inc's SpendingPulse retail report. The firm expects overall Black Friday sales to top $23 billion this year, up from $21 billion last year.

Mastercard combines sales activity in its payments network with estimates of cash and other payment forms. It said cold weather in the eastern United States and wet weather in the west may be pushing more consumers online.

Online spending is on track to hit $6.4 billion on Friday, Adobe said. Online sales on Thanksgiving Day were up 28 percent at $3.7 billion.

The National Retail Federation forecast US holiday retail sales in Nov. and Dec. will increase between 4.3 and 4.8 percent over 2017 for a total of $717.45 billion to $720.89 billion. That compares with an average annual increase of 3.9 percent over the past 5 years.

About 38 percent of American consumers plan to shop on Black Friday, a Reuters/Ipsos poll showed last week.

Very cold weather in the US Northeast may have kept some shoppers at home, although industry analysts also reported added demand for coats and other warm clothing. An Athleta clothing store in Tysons, Virginia, provided hot chocolate with marshmallows to women in line for the dressing room.

DEAL FRENZY

Shoppers picked up big-ticket items such as TVs, Apple Inc iPads and Watches at Target, while phones, toys, gaming consoles and cookware were top sellers at Walmart Inc.

Many shoppers sought out air fryers, which do not use oil to deep fry food and Instant Pots. Kohl's Chief Executive Michelle Gass told CNBC the company was selling 60 Instant Pots per minute online on Thanksgiving Day.

While most retailers have not changed their deals and discounts year-over-year, many have moved their start dates earlier and offered more teasers, according to deal site RetailMeNot.

The deepest discounts in apparel and accessories were offered by Michael Kors, which ran a 60 percent discount sale; Gap, which offered 50 percent off site-wide; and Nordstrom, which gave away up to 60 percent on merchandise.

Other deals included:

An H&M store in Manhattan offered 30 percent off everything in-store and online.

Macy's in Herald Square, Manhattan, sold a Coach designer wallet, originally $225, for $53. Coach bags there, originally $259, were half off.

Midtown Comics was taking 25 percent off everything at its 3 Manhattan locations until noon.

An Eddie Bauer in Chicago offered 50 percent off all items.

At a Chicago-area Pandora, which sells popular charm bracelets that can cost up to $1,000, jewelry was 35 percent off before 10 a.m. and 25 percent off for the remainder of the day.

J Crew clothing was 50 percent off. Its site experienced some technical difficulties.

Walmart was selling a Google Home mini for $99.

REPLACING A TOY STORE

Many retailers, reacting to the bankruptcy of the Toys 'R' Us chain, are catering to parents.

Target said in October it planned to dedicate nearly a quarter of a million square feet of new space to its toy business across 500 of its stores.

“Toys 'R' Us had better quality for toys,” said Ashley Drew, 29, shopping for her 5-year-old daughter at a Los Angeles-area Walmart, next door to the empty shell of a Toys 'R' Us store.

Department store JC Penney, known for its mid-priced apparel, has also made a push into toys.

Carolyn Pertette from Wilkinsburg, Pennsylvania, shopped in the early morning at the Waterfront Mall in Pittsburgh.

"I'm concerned about where I'm going to get toys," she said.

source: news.abs-cbn.com

Bankrupt US retailers begin to catch a break

An unexpected helping hand from creditors, landlords and vendors is allowing more US retailers to stay in business following bankruptcy with most of their stores and employees in the fold.

The new approach marks a turning point for the beleaguered sector, which has seen at least 19 brick-and-mortar retail chains shut down the bulk of their operations since 2014.

Until this year, most bankrupt retailers, including American Apparel, Sports Authority and The Limited, were dismantled during their bankruptcy process. Investors and companies acquired their intellectual property and other assets, but refused to take on their business as a going concern because they saw little value in assuming costly store leases. Instead, they often opted to revamp some of the battered brands online.

 However, several creditors, landlords and vendors now see more value left in some retailers, and are seizing on an opportunity to minimize their own losses in the retail rout.

This could spell a slowdown in the decline in brick-and-mortar retail jobs, which fell by more than 100,000 this year, as more than 6,000 stores shuttered under increasing pressure from competition among traditional retailers as well as e-commerce firms such as Amazon.com Inc.

"We're seeing a set of situations come together in which the constituencies have more interest in the retailer surviving than not," said Holly Etlin, a managing director at AlixPartners LLP, a consulting firm that worked on the bankruptcy of Gymboree.

Jeans company True Religion Apparel Inc and perfume wholesaler and retailer Perfumania Holdings Inc are set to emerge from bankruptcy with at least some of their stores in operation, according to interviews with bankruptcy attorneys and a Reuters review of financial information of more than 15 retailers shared with bankruptcy courts.

These chains will follow a path blazed by Payless ShoeSource, which in August emerged from bankruptcy while keeping more than 3,400 out of its 4,200 stores worldwide, and preserving 19,000 of its 22,000 employees.

Last month, teen clothing shop rue21 Inc and children's apparel chain Gymboree Corp came out of bankruptcy in similar fashion, preserving much of their store footprints and employee headcount.

Most of these retailers were owned by private equity firms, which saddled them with debt in a risky bid to juice returns. But in bankruptcy talks, the chains are arguing successfully that they can generate enough cash to withstand the sector's woes if their debt mountains are slashed and payment obligations eased.

Creditors, landlords and vendors are more receptive to this approach, because their own financial projections show that liquidations would result in a limited recovery of what they are owed, according to interviews with debt investors and bankruptcy court filings.

Had rue21 liquidated, for example, many loan holders would have seen almost the entire value of their investment wiped out by the end of its five-month bankruptcy process, according to bankruptcy court filings and people familiar with the matter.

This new reality offers grounds for optimism for Toys "R" Us Inc, which last month became the largest retail bankruptcy in 13 years. The biggest US specialty toy retailer plans to emerge from Chapter 11 bankruptcy with many of its about 1,600 stores, employing 64,000 people, remaining open.

Toys "R" Us plans to argue that its annual cash flow of roughly $800 million would make it viable if its $5.2 billion in debt is significantly reduced, according to court papers and people familiar with the matter.

CREDITOR SUPPORT KEY

If a retailer's brand is strong enough and its operations can be improved, creditors see greater value in forgiving some of their debt in exchange for equity stakes, rather than recouping pennies on the dollar in a liquidation.

David Tawil, president at distressed-focused hedge fund Maglan Capital, said it makes sense for creditors to extend new money, often at high interest rates, in exchange for a fully restructured balance sheet and a better business plan.

"Otherwise, there may be a very, very steep haircut (in the value of the debt) to be taken upon a liquidation," Tawil said.

For example, a group of Gymboree investors, including distressed debt-oriented hedge fund Brigade Capital Management LP and buyout firm Searchlight Capital Partners LP, agreed to keep it in business by writing off most of their term loan and investing another $95 million, in exchange for equity ownership, court filings showed.

Gymboree and Brigade declined to comment.

"There is always risk taking (the company) through bankruptcy, but we believed that it was a better path with more upside versus liquidating, where the recovery is pretty minimal and you forego any upside opportunities," said Searchlight partner Eric Sondag. He added that Gymboree's strong brand was a key consideration in Searchlight deciding to back it.

Many landlords that rent out store space are also willing to provide relief rather than seeking another tenant amid a glut of unused mall space. Rue21's landlords granted rent reductions of about 20 percent on its remaining 758 stores, according to a person who asked not be identified because the terms of the lease deals are not public.

VENDORS WAIT LONGER TO BE PAID

Supplier support is also critical. Vendors can offer longer payment terms, helping retailers free up working capital to operate. They are often promised full repayment on their claims in return.

Hong Kong-based Li & Fung Ltd, a supply chain manager that helps retailers work with apparel and accessories makers, gave Gymboree a 75-day repayment period in exchange for full payment on its claims in the bankruptcy, people familiar with the matter said.

Before Gymboree filed for bankruptcy, the retailer also extended Li & Fung a $20 million secured claim, helping keep merchandise flowing to its stores, the sources added. Li & Fung declined to comment.

Toys "R" Us has also fought to keep suppliers onboard, accelerating its plan to file for bankruptcy to be able to pay them. It has been making progress in winning back vendors who curbed shipments over payment fears.

"We believe (in Toys 'R' Us)... they are a good channel and important to the toy industry," said Michael Araten, chief executive of K'Nex Limited Partnership Group, a toymaker that is now negotiating new shipment terms.

source: news.abs-cbn.com

Wall Street falls as Amazon-Whole Foods deal crushes retailers

U.S. stocks fell on Friday as Wal-Mart and other retailers were slammed by Amazon.com's biggest foray into the brick-and-mortar retail sector with its $13.7 billion deal to buy upscale grocer Whole Foods.

Amazon shares were up 3.2 percent at $995.18, while Whole Foods surged 27 percent to $41.95.

The deal by Amazon, a proven retail disruptor, is seen as a threat to supermarket chains and grocers, given the company's readiness to sacrifice margins for market share.

 Wal-Mart sank 6.2 percent to $74.03 even as the big box retailer strengthened its ecommerce presence by buying online men's fashion retailer Bonobos for $310 million on Friday. The stock weighed the most on the S&P 500 and the Dow.

"Dominant players like Wal-Mart, Kroger, Costco, and Target now have to look over their shoulders at the Amazon train coming down the tracks," said Charlie O'Shea, lead retail analyst at Moody's Investors Service.

Kroger was the biggest loser on the S&P 500, down 14 percent; while Sprouts Farmers Market was off nearly 10 percent.

"I would not like to be somebody playing in the grocery space right now," said Jan Rogers Kniffen, chief executive of retail consultancy firm J. Rogers Kniffen WWE in New York.

The S&P 500 consumer staples tumbled 1.7 percent - its biggest drop since November last year.

At 11:03 a.m. ET (1503 GMT), the Dow Jones Industrial Average was down 35.58 points, or 0.17 percent, at 21,324.32, the S&P 500 was down 7.48 points, or 0.31 percent, at 2,424.98 and the Nasdaq Composite was down 32.00 points, or 0.52 percent, at 6,133.50.

Six of the 11 major S&P sectors were lower. Technology was the second-biggest loser after consumer staples, led by losses in Microsoft and Apple.

The sector, which had surged 17.4 percent in 2017, is on track for its second straight week of decline as investors booked profits amid worries of stretched valuations.

Declining issues outnumbered advancers on the NYSE by 1,547 to 1,171. On the Nasdaq, 1,769 issues fell and 872 advanced.

source: news.abs-cbn.com

US Black Friday: more shoppers but less spent per head

WASHINGTON - The American shopping orgy known as Black Friday lured more buyers this year but they spent less per person thanks to great bargains, an industry group said Sunday.

More than 154 million people made purchases during the four-day retail extravaganza that began Thursday on Thanksgiving, compared to 151 million last year, the National Retail Federation said.

Shoppers spent an average of $289.19, compared to $299.60 in 2015.

Sales over the Thanksgiving holiday, which extends into so-called Cyber Monday, are a good indicator of the health of US consumer spending.

Online sales dominated. A total of 44 percent of those who took part in the NRF survey said they had bought via the internet while 40 percent went to a brick-and-mortar store.

"It was a strong weekend for retailers, but an even better weekend for consumers, who took advantage of some really incredible deals," NRF president Matthew Shay said.

The most popular day to shop online was Black Friday itself, the day after the Thanksgiving holiday. Of those who purchased online over the four-day period, 74 percent did so on Friday, up 1.3 percent from last year.

And of the people who went to actual stores over this shopping period, 75 percent did so on Black Friday, up 3.4 percent from last year, the NRF said.

Millennials, aged 18-34, drove the increase in shopping, with eight out of ten buying something over the long weekend.

Around 56 percent of smartphone owners and 53 percent of tablet owners used these devices to assist with their shopping.

The study was carried out by Prosper Insights & Analytics with a sample of 4,330 people on November 25-26 and has a margin of error of 1.5 percentage points.

source: news.abs-cbn.com

Nikon asks retailers in China not to sell D600 camera

TOKYO - Nikon Corp. on Monday asked retailers in China not to sell its D600 digital single-lens reflex camera after Shanghai authorities ordered a local Nikon unit Sunday to take the D600 off its shelves, industry sources said.

The Shanghai sales ban order followed a local television report that dust could penetrate into the camera to produce black spots in its photos.

Nikon has also offered to check D600 cameras, which are no longer in production but are still stocked, sold to customers in Japan and other countries and replace some components free of charge. But the company has admitted that it is difficult to completely eliminate the black spots.

The camera maker is concerned that if the D600 problem continues it could affect its business operations in the Chinese market, which accounted for 11.7 percent of the firm's consolidated sales in the year to March 2013.

As a result of the problem, Nikon shares closed Monday down 29 yen from last weekend at 1,730 yen on the Tokyo Stock Exchange.

source: www.abs-cbnnews.com

Black Thursday is the New Black Friday, But Will It Really Boost Sales?

It's beginning to feel like the retail industry expects us to wrap up our Thanksgiving dinners and take them to go.

Toys R Us, Best Buy (BBY), and Target (TGT) became the latest retailers to announce that they would be opening on Thursday -- or opening earlier on Thursday -- this pivotal holiday shopping season.
Toys "R" Us will open at 5 p.m. on Thanksgiving, three hours earlier than last year.
Best Buy will greet turkey-fueled shoppers at 6 p.m. with its slate of deals on consumer electronics.
Target -- after opening at 9 p.m. on Thanksgiving last year -- will kick open the doors to its cheap chic stores at 8 p.m.
With so many retailers breaking into their holiday selling seasons on Thanksgiving, is it time to retire Black Friday?

Creeping Earlier

Last month it was Walmart (WMT) and Macy's (M) turning heads with their Thanksgiving night openings. Critics argued that it wasn't fair to make employees come in early on the holiday -- or to disrupt festive family fetes to woo shoppers -- but there's naturally another side to the story.

Employees hungry for more hours welcome the additional time on the clock that's often paid at a higher rate than their hourly wages. They have holiday gifts to shop for too, after all.

Nor are Shoppers universally panning the earlier "Black Thursday" sales. Many didn't consider it a treat to head out to stores at midnight or during the wee hours on Friday morning. Missing out on pumpkin pie, Uncle Nestor's story about how he was almost a member of The Beatles, or what should be meaningless game between the Ravens and Steelers may be easy sacrifices to make in exchange for the ability to sleep in Friday morning and still get the deals.

Blame It On the Calendar

Sears Holdings' (SHLD) Kmart has been opening on Thanksgiving for 22 years, and rivals didn't seem to care until the past few years. However, even Kmart came under attack earlier this year for its decision to open at 6 a.m. on Thanksgiving.

Why is Kmart leading retailers to open earlier this holiday season? You may as well blame the calendar.

Thanksgiving falls on the fourth Thursday of November, and this year, that just happens to be Nov. 28. That's the latest possible day for the holiday, making Nov. 29 the latest possible Black Friday.

It goes without saying that retailers live for the holiday shopping season. An attempt to combat the late start this year by opening their doors a day -- or at the very least a few hours -- earlier than usual almost makes sense.

Looking Out to Next Yeat

Retailers won't divulge their plans for 2014 until at least next October.

Thanksgiving 2014 will also happen relatively late -- Nov. 27 -- giving stores plenty of incentive to do anything possible to milk sales early in the season. If one retailer or another looks poised to lock up some holiday shopping lists with an earlier-than-ever sale, you can be sure that rivals will be quick to keep up.

However, the biggest factor determining if retailers' operating hours continue to creep earlier into Thanksgiving Thursday will be if the move was successful this time.

Chains that opened on Thanksgiving last year didn't necessarily see dramatic upticks in comparable-store sales. Walmart and Sears didn't even keep pace with inflation. However, with so many chains giving it a go this year, the retail market will have plenty of data to answer the question of whether or not opening on Thanksgiving was a win -- or a waste.

source: dailyfinance.com

How to Beat the Holiday Season Rush and Save Your Wallet

It may be the season of pumpkin spice lattes as the leaves start to change, but the holiday shopping rush isn't far off. And while it might seem too early to start tackling your gift list, experts say getting a head start can help keep your budget intact.

According to the National Retail Federation, holiday sales are expected to increase 3.9 percent to $602.1 billion in November and December.

The increase is slightly higher than 2012's 3.5 percent rise in sales, and the forecast is also above the 10-year average of 3.3 percent growth. The NRF forecast is an economic model blending consumer confidence, consumer credit, disposable personal income and monthly retail sales releases.

Brian Hoyt, vice president of communications and senior writer at RetailMeNot.com, says this season's spending increase is nominal, but the company is also seeing average spending on the uptick, at about $160 per person this year. The shopping season itself is also being stretched out longer over the months leading up to the holidays.

"Use that time to your advantage," Hoyt says. "Spread out your purchases so you don't have them all bunched in November and December in just two or three pay cycles."

Shopping deals come in waves, Hoyt says, with the first deals rolling out in September and October on apparel.

"There will be a lot of deals especially in apparel due to this year's weaker back-to-school shopping period," he says. "You can take advantage of layaway programs early on. Especially if your child wants a specific toy, as they tend to sell out early."

After the clothing sales, retailers will start slashing prices on electronics, Hoyt says, starting around Thanksgiving. In fact, shopping on Thanksgiving Day can yield even greater savings for consumers, RetailMeNot has found.

"Consumers save more when they shop on that day than even on Black Friday and Cyber Monday," he says. "There are big door buster deals, to entice consumers to come off their couch and into the store."

The final sale phase is in early December, closer to Christmas, Hoyt says. "This is when 'stocking stuffers' go on sale, mainly accessories to go along with the consumer electronics."

Finally, RetailMeNot is predicting this season will have an even greater emphasis on mobile shopping than seasons past to allow consumers to get their shopping done from anywhere and anytime.

source: dailyfinance.com

Why credit cards shouldn't be 'double-swiped'

MANILA, Philippines - "Don't double-swipe credit cards" -- this is the message of the Credit Card Association of the Philippines to commercial establishments and retailers.

CCAP spokesperson Alan German said the practice of "double-swiping" is being discouraged since this may compromise the data security of credit cardholders.

Double-swiping is the act of merchants completing a second swipe of the card at the Point-of-Sale (POS) system, even after the transaction has been approved.

The CCAP said any credit, debit or prepaid card should only be swiped using a POS terminal issued by the bank, not the establishment's own POS system.

German said criminal groups are now targeting establishments' own POS systems, stealing payment card data and PINs of customers.

"In many cases, the second swipe results in the credit card’s full data to be retained by the merchant in its own system. Effectively, this unnecessary practice increases the merchant's vulnerability to potential data compromise... This loose data, so to speak, can then be used to create counterfeit cards, engage in identity theft, and perpetrate fraud,” he said.

The CCAP spokesperson urged merchants to use other record-keeping methods for their retail operations, instead of double-swiping the cards.

"More often than not, the second swipe is unrelated to authorization or transaction settlements. Instead, it is used to create a secondary record to support the merchant's accounting, reporting or customer-relationship management programs," German said.

"Instead of using customers’ payment cards, merchants can explore alternatives such as loyalty account numbers, transaction IDs, or truncated primary account numbers to track customer activity, if necessary."

German said card issuers and merchants should understand the risks in double-swiping the card, and should undertake measures to protect their businesses.

He said CCAP is committed to increasing data security awareness to ensure that all stakeholders are aware of potential vulnerabilities and associated risks.

source: www.abs-cbnnews.com

Black Friday Weekend Had The Most Shoppers Of All Time

This year's Black Friday weekend broke records for the busiest ever, according to the National Retail Federation.

A stunning 247 million people shopped online and in stores from Thursday through Saturday, the most ever, the NRF said in an emailed release today. That compares with 226 million last year.

The shoppers spent a total of $59.1 million in stores, or about $423 a person.

“There’s no question that millions of people were drawn to retailers’ aggressive online promotions this weekend, making sure to research and compare prices days in advance to ensure they were getting the best deal they could,” said BIGinsight Consumer Director Pam Goodfellow told the NRF.

Black Friday foot traffic rose 3.5 percent this year, research firm ShopperTrak said.

More stores opened on Thanksgiving this year to give shoppers a head-start.

Retail giant Walmart said it had its best Black Friday ever. The chain innovated its promotions strategy, releasing different items at different times to prevent overcrowding in stores.

source: businessinsider.com

Consumers say 'Show me the bargains'

U.S. consumers say the deals had better be good if retailers want them to spend their money this weekend.

This is the earliest Thanksgiving since 2007, giving consumers plenty of time to get their shopping done before Christmas and Black Friday deals are designed to get consumers in the spending mood.

A Black Friday shopping survey by the National Retail Federation says as many as 147 million people plan to shop this weekend, down from the 152 million who planned to do so last year. While 71 million said they definitely planned to shop, 76 million others said they would wait and see what retailers had in-store.

"Though the Black Friday tradition is here to stay, there's no question that it has changed in recent years," NRF President and Chief Executive Officer Matthew Shay said in a statement. "It's critical for retail companies to constantly evolve as consumers do, and right now shoppers want great deals, good value, and convenience -- exactly what we're seeing with this season's late and early openings, price-matching, layaway and mobile offerings."

Nearly half of shoppers say they keep up with advertising circulars throughout the holiday and more than 30 percent say they watch for television ads. A growing number of U.S. shoppers are keeping track online. The NRF said nearly 27 percent will follow retailers' websites and 31 percent will track emails from retailers to get the latest holiday announcements.

"The days of waking up Thanksgiving morning to find out what retailers' Black Friday promotions will be has transitioned into an ongoing dialogue between companies and their customers starting days in advance," BIGinsight Consumer Insights Director Pam Goodfellow said. "Through sites like Twitter, Facebook and Pinterest, company blogs, emails and mobile apps, consumers can connect with their favorite retailers like never before."

Discover says consumers plan to spend more this holiday season than last year, as long as retailers are offering good deals. The 2012 Discover Annual Holiday Shopping Survey suggests spending will jump to an average of $838 this year, up from $748 in 2011.

Half of consumers say they plan to spend about the same as they did in 2011, and 23 percent plan to spend more this year. Forty-two percent say retailers' sales and promotions will most influence their holiday spending.

The Discover survey suggests 46 percent of shoppers plan to spend $100 to $500, 26 percent, say they plan to spend $500 to $1,000 and 14 percent say they plan to spend $1,000 to $5,000.

Consumers are looking for good deals online, as well as incentives such as free shipping. Discover said 75 percent of consumers plan to shop around online for better prices.

"When asked to choose from the following five online deals they are looking for, shoppers ranked free shipping first with 79 percent, followed by exclusive sales and offers, coupon codes, early access to sales and Facebook-exclusive promotions," Discover said.

Retailers are expecting to see a boost in mobile shopping this year. The NRF said nearly 53 percent of those who own smartphones and nearly two-thirds of those who own tablets plan to use their devices to research and purchase holiday gifts, food and decor.

Walmart is providing special perks to customers who "like" their Facebook page or download Walmart's mobile app, offering early access to specials and information, the company said.

The Walmart app allows customers to use the "in-store mode" on their smart phones to view local ads, access local store pricing and see the aisle location of products carried in that specific store.

Cyber Monday is a growing trend among shoppers looking to take advantage of special online deals that can save them the hassle of heading out to the shopping mall.

Forty-one percent of respondents to the PriceGrabber.com's third winter holiday shopping survey said they planned to shop on Cyber Monday, up from 37 percent last year and 33 percent in 2010. The online shoppers said they wanted to take advantage of one-day deals, discounts and free-shipping offers.

While Cyber Monday is often associated with employees returning to the office after the Thanksgiving weekend only to spend most of their time browsing for holiday deals online, PriceGrabber's survey suggests 83 percent of people planned to do their Cyber Monday shopping from home.

Rojeh Avanesian, vice president of marketing and analytics for PriceGrabber.com, said clothing and consumer electronics are expected to be the top gift purchases on Cyber Monday.

Plans by Target, Sears and Walmart to get a jump on Black Friday by opening stores Thursday night have sparked fears of employee and consumer backlash.

"Retailers are under immense pressure to get the holiday shopping season off to a strong start," John A. Challenger, chief executive officer of global outplacement firm Challenger, Gray & Christmas said in the firm's holiday shopping outlook. "As big box chains face growing competition from discounters like Target and Walmart, not to mention the fierce competition from online retailers like Amazon.com, they are all compelled to find whatever edge they can to get shoppers into their stores,"

Challenger warned, however, retailers are taking a risk by being open on a day set aside for giving thanks.

"Not only is there the risk of creating disgruntled workers, who feel they have no choice but to accept the holiday hours in this economy, but in the wake of the worst recession since the Great Depression, some Americans have soured on the corporate excess and the profits-at-any-cost mentality that some say helped hasten the economic meltdown," Challenger said.

However, he said, it is not as if no one works on Thanksgiving.

"You can't close hospitals or fire departments," he said. "Grocery stores provide essential last-minute Thanksgiving meal items, but also baby formula, medicine and other products that should be obtainable every day of the year. Some would even argue that the NFL provides a necessary service in the form of family entertainment and bonding. However, it would be difficult to argue that the need to buy a deeply discounted DVD player or LCD television cannot wait another eight to 10 hours."

The NRF 2012 holiday spending survey of 9,383 consumers was conducted by BIGinsight Nov. 1-6. The margin of error is 1 percentage point. The Discover survey of 506 male and 497 female adults was conducted by Penn Schoen Berland Oct. 26-30.

source: upi.com

Warning on fake peso bills

MANILA, Philippines — Quezon City authorities are asking retailers and other businessmen to use “bill verifiers’’ and other safety measures to detect fake peso bills which continue to flood the market as Christmas approaches.

Alarmed by the growing complaints against counterfeit bills, Councilor Jaime Borres of the city’s third district urged the police to concentrate on cracking down on money-faking syndicates.

He said that even small businesses like variety stores, flea markets and food stalls were not spared by the swindlers putting the financial not only to the owners but also to the crew, sales clerks or house helps manning the shops.

Mayor Herbert Bautista said the proliferation of counterfeit bills calls for drastic measures because even gasoline stations, fast food stores and other retail outlets have been victimized by counterfeiters passing off fake P100, P500 and P1,000 bills.

“Throughout the year we would occasionally receive complaints about the use of counterfeit bills but surprisingly there were a significant number of reports about similar problems in the last few days. I believe there is now a basis for the PNP, the NBI and banking authorities to start an investigation,’’ Bautista said.

Bautista said reliable sources confirmed the widespread number of bogus bills in the groceries and stores not only Metro Manila but also in the provinces of Bulacan and Pampanga.

Wholesale and retail businessmen said the fake P100, P500 and P1,000 look very similar to the genuine bills, making it difficult for their staff to detect the difference.

Former Barangay Chairman Mario de Guzman exhorted the police to intensify their campaign against bogus bills especially during the Christmas season.

De Guzman noted that unscrupulous political aspirants distribute fake bills as Christmas gifts to their voters.

“Since commercial activities are at its peak, unprincipled candidates tend to take advantage of the people by handing out the bogus peso bills either as payment for their services or as grease money to sway the votes in their favor,’’ De Guzman added.

He asked the public to immediately report individuals involved in the distribution of bogus bills.

“I am not an economist but I know that if there are lots of bills in circulation more than what is necessary without the corresponding amount of gold reserves from the Central Bank then it could spell economic disaster,” de Guzman added.

De Guzman is also a member of the city government’s People Law Enforcement Board (PLEB) that hears complaints against abusive policemen.

He promised full protection for informers who can positively pinpoint any member of the Philippine National Police (PNP) involved with fake bill syndicates.

source: mb.com.ph

Many retail industry analysts predict a good holiday season

The chief economist for the International Council of Shopping Centers, a major retail trade group, estimates that sales will rise 3.5% for November and December combined.



As retailers head into the all-important holiday season, they have reason to be optimistic: Months of solid sales are widely expected to carry through to the end of the year, when shoppers are most likely to open their wallets.

Positive holiday performance could have a far-reaching effect. With consumer spending accounting for about 70% of the nation's economic activity, robust sales could breathe life into what has been a sluggish year so far for the broader economy.

Many industry analysts are predicting a good — but not great — holiday season.

The chief economist for the International Council of Shopping Centers, a major retail trade group, estimates that sales will rise 3.5% for November and December combined. Last year, sales during the same period beat expectations, rising 4.4% in what industry analysts called the best holiday results since 2006.

"It's a time when we do the greatest amount of our business, but it is also a season that defines retailers," said Jim Sluzewski, a spokesman at Macy's Inc., which last year saw 28% of its sales in the last two months of the year.

After the recession-plagued 2008 holiday season, the worst in more than four decades, retailers say they've become much more savvy about confronting economic challenges. They're not ordering too much inventory and they're making sure that prices are budget-friendly.

"We are well prepared," Sluzewski said. "Our business is very flexible and we have a lot of ways to adjust our business no matter what happens."

Retailers, which ring up as much 40% of their annual sales during the last two months of the year, also are relying on a tried-and-true rule: Consumers love to splurge when the holidays roll around.

Shopper Deven Ronnquist, 63, was already keeping an eye out for holiday gifts for her family on a trip to the Glendale Galleria recently, setting a loose gift budget of $3,000.

"We have a tradition of spending way too much — we just have a ring of presents around the tree," the La Crescenta administrative assistant said. "I'm going to work hard to pay down some of my credit cards in the meantime."

The start of holiday shopping comes amid skittishness over the volatile stock market, stubbornly high unemployment and tight credit that has constrained business growth. Strong holiday sales could provide much-needed momentum, said Michael Dart, a retail strategist at consulting firm Kurt Salmon.

"If we have a solid holiday season and there's a sense that the consumer is resilient … I think you get more bullish on hiring and it could start to move the employment rate," he said. "It could ease a lot of the anxiety that permeates every business and permeates the consumer psyche right now."

Retail analysts say the key segment to watch will be middle-income consumers. Wealthy Americans have spent freely on luxuries such as designer handbags, jewelry and watches, and lower-income shoppers seeking bargains have led to steady sales increases at discount chains, dollar stores and warehouse clubs.

Analysts say the back-to-school selling season, which often provides a hint of how the holidays will fare, has so far produced solid results. Despite stock market turmoil and Hurricane Irene, sales at major chain stores rose 4.4% year over year in August, the key month of the period, according to Thomson Reuters' tally of 23 retailers.

"We've been seeing consistent spending occurring even in discretionary sectors," said Michael McNamara, vice president of research and analysis at data service MasterCard Advisors SpendingPulse. "This is just a consistent thing that has not correlated with the deterioration in consumer confidence. It's been an interesting phenomenon in 2011."

Retailers are still keeping their biggest plans under wraps, but they have been busy preparing for the holidays all year: ordering merchandise, designing festive window displays and special holiday catalogs, and planning Black Friday promotions.

"Target begins preparing for the holiday season right after Christmas," said Cary Strouse, senior vice president of stores for Target Corp., which recently announced four exclusive designer partnerships that will be in stores in time for the holidays, including a fashion line with Gwen Stefani.

Wal-Mart Stores Inc., the nation's largest retailer, will be adding to its holiday selection this year, including stocking more Christmas villages and outdoor lawn decor. The company said its focus would be on offering the lowest prices to its shoppers.

"We know our customers are feeling budget strains, and we are committed to helping ease that strain," said Tara Raddohl, a Wal-Mart spokeswoman.

Jodi Odell, 46, said she intends to spend big for the holidays even though she has been trimming expenses because business has been slow at the architecture and design firm she and her husband run.

"My husband and I have already talked about it," the Encino resident said recently as she shopped at the Americana at Brand in Glendale. "We plan it out in September. The kids give me their lists early and I will have it all knocked out by November. It's therapeutic when nothing else is going well."

Although Odell won't be cutting back on gifts for her four children, she and her husband, Otis, will only do stockings for each other this year, she said.

Still, she's hoping for a little blue box.

"Tiffany," she said, "fits very well in a stocking."

Source: latimes.com