Restaurant Chains Look for Creative Ways to Cut Costs

Franchise restaurants, hit by higher commodities prices and a cutback in consumer spending, are aggressively searching for ways to slash costs.Many of these businesses can't pass on the higher costs to customers without losing even more business. So, they're trying to find alternative ways to save -- including changing vendors and packaging, altering delivery schedules, cutting serving portions and even prolonging the life of fryer oil.

Retailers slash prices, again, in bid to win shoppers

Retailers this week began marking down their holiday and winter merchandise and added additional promotions to previously already discounted products, with bargains to be had at up to more than 80% off. Other retailers launched special daily sales to lure traffic to their stores or websites while malls across the country plan extended hours this weekend. As retailers head to their last weekend before Christmas, the stakes have become even higher after a lackluster holiday shopping season so far. Consumers, stalled by worries about the U.S. economy in recession, rising job losses, declining retirement portfolio values and volatile stock markets, have reduced trips to stores and cut back on non-essential spending.

Costco net flat on 1% higher same-store sales

Costco Wholesale Corp. reported Thursday that fiscal first-quarter net income was about flat, undercut by pretax charges, with its finance chief warning that sales are slowing even as bargain-hunting shoppers turn to the warehouse stores for deals in a downbeat economy.

Small stores face big test this holiday season

With the economy in recession and consumers in cost-cutting mode, this year is expected to be especially tough for smaller shops as customers rein in overall spending and seek out bargains from big chain stores or online discounters.

Retail sales fall for record fifth straight month

Consumers reduced their spending at retail stores again in November while the costs of goods before they reach store shelves also continued to drop, more bad signs in a recession that appears to be deepening. Businesses also cut their inventories by the largest amount in five years, the government said Friday, a sign the recession will force further cuts in production.

Anheuser-Busch-InBev will cut 1,400 U.S. jobs

Anheuser-Busch InBev announced Monday it would cut some 1,400 U.S. jobs — or another 6 percent of its U.S. work force — to help save the world’s largest brewer at least $1.5 billion a year.
It said three-quarters of the jobs cut will disappear from Anheuser’s North American headquarters in St. Louis, both at downtown offices and a campus in suburban Sunset Hills, Mo. A letter employees received Monday said affected workers had not yet been notified, and they will likely be people who hold engineering, information technology and other corporate positions. Unionized workers at the company’s 12 North American breweries will not be affected. The latest job cuts go beyond plans Anheuser-Busch announced this summer to streamline costs, before it agreed to be taken over by Belgium-based InBev. The company said in a news release the job losses will help it save at least $1.5 billion a year by 2011 and cope with a “challenging economy.” Most of the cuts will be made by the end of the year.

Economy brews some trouble for Starbucks

Starbucks warned Wall Street on Thursday that its profit would fall short of analysts' expectations this quarter during a conference that began with Chief Executive Howard Schultz trying to assuage concerns about the recession's effect on the coffee retailer.Chief financial officer Troy Alstead said same-store sales have deteriorated 9 percent in the U.S. since the company's fiscal first quarter began at the end of September.Investors had hoped the 8 percent decline in U.S. sales that Starbucks reported for its fourth quarter compared with the same period a year earlier would be the company's worst drop. Sales have been particularly dismal in those states that have been hardest hit by foreclosures, most notably California and Florida, which together make up about 30 percent of the company's store base.

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Retailers saw sales drop in dreary November

Retailers — with Wal-Mart the notable exception — limped through a miserable November that even a surge of shopping after Thanksgiving couldn’t save, marking the weakest month since at least 1969 and deepening fears that the critical holiday period could be the most dismal in decades.As merchants announced their November sales figures Thursday, the deep cut across all sectors as shoppers worried about layoffs and shrinking retirement funds focus on necessities. Wal-Mart Stores Inc., though, posted sales gains that surpassed Wall Street estimates and has seen more customers and higher average transactions as it benefits from what could be a deep and prolonged recession. However, Costco Wholesale Corp., usually a strong performer, reported a bigger-than expected sales decline. And most mall-based chains and department stores such as teen stalwart Abercrombie & Fitch Co., Kohl’s Corp. and Macy’s Inc. fared much worse, reporting percentage declines of over 10 percent.

Wal-Mart to start selling iPhone

Apple Inc.'s famous veil of secrecy appears to have stretched thin in trying to cover thousands and thousands of Wal-Mart stores.A Wal-Mart employee in Uniondale, N.Y., told The Associated Press on Monday that the store will start selling Apple's iPhone, confirming media reports over the weekend. The employee, who would not give his name, did not know when the phones would go on sale, and said the store had no merchandise yet. The San Jose Mercury News reported late Friday that store employees in California said the phone would be on sale by the last week of December, and maybe before Christmas.Wal-Mart Stores Inc. would be the second independent retail chain after Best Buy Inc. to sell the phone. The phone is also sold at Apple and AT&T Inc. stores.

Office Depot cutting 112 stores, 2,200 jobs

Office Depot Inc. will close about 9 percent of its North American stores and cut 2,200 jobs over the next three months while planning to open fewer locations next year in an effort to cut costs.
Shares of the office supply chain rose more than 12 percent after Wednesday's announcement.
The plan to shutter 112 stores will reduce the chain's base to 1,163. It plans to close 45 stores in the Central U.S., 40 in the Northeast and Canada, 19 in the West and eight in the South.Office Depot, which began the year with about 49,000 workers, also will close six of its 33 North American distribution facilities.Meanwhile, the Delray Beach, Fla.-based company said it plans to shut another 14 stores next year while opening just 20 new sites, half of what it planned.

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Stronger dollar hurts Costco earnings

Warehouse-club operator Costco Wholesale Corp. reported nearly flat first-quarter profit Thursday, citing the stronger dollar and cuts by U.S. consumers in spending on nonessentials.
Profit for the three months ended Nov. 23 rose less than 1 percent to $262.5 million, or 60 cents per share, from $262 million, or 59 cents per share, a year earlier. The results include charges of 5 cents per share related to an accounting adjustment stemming from life-insurance contracts and a write-down on corporate investments. Revenue rose 4 percent to $16.39 billion from $15.81 billion last year. It comes as no surprise that during these economic times Americans will be buying more in bulk to save money.

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KB Toys files for bankruptcy protection

Just 14 days ahead of the biggest day on the retail calendar, KB Toys filed for bankruptcy and planned to start going-out-of-business sales right away. KB Toys was choked by a downturn so severe that sales were down 20 percent in what should have been its busiest season. Desperate to pull in shoppers, the company touted “Buy 2, Get 1 Free” sale on name brands like Playskool and Littlest Pet Shop, $25 off Mattel and Fisher-Price toys and other sharp discounts in ads distributed Thursday before the company filed for Chapter 11 protection. But the “blowout” sales turned into liquidation sales, as the company filed for bankruptcy protection for the second time in four years, unable to offset the “sudden and sharp decline in consumer sales” it had seen in the past two months.

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More braving Home Depot to hunt down tree

Last year, 16 percent of the nation's 31.3 million live Christmas trees were cut by the people whose family rooms they'd grace, according to industry data. A larger percentage, roughly one in four, were bought at big-box chains.The segment's Christmas tree business has been steadily growing, overtaking sales from cut-it-yourself farms last year while continually overpowering tree-selling venues such as nurseries, retail lots and nonprofit groups, according to the National Christmas Tree Association.The Home Depot Inc., the nation's largest retailer of fresh-cut trees, expects to sell about 2 million trees between Thanksgiving and Christmas during a carefully choreographed sales extravaganza.The production, which begins Monday when the company's stores around the nation start receiving shipments of trees from two dozen farms, is so detailed that the Atlanta-based company knows just where to send tall trees (wealthier suburban communities where homes are more likely to have been designed with cathedral ceilings) and what varieties sell better in certain regions (balsam firs in the northern U.S.; noble firs in the West.)Close behind Home Depot are household names like Wal-Mart Stores Inc. and Lowe's Cos. Inc.Despite the growth of big business in the Christmas tree market, there are still families hanging on to over-the-river-and-through-the-woods moments.

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Sears faces tough test this holiday season

The holiday season is expected to be difficult for most retailers, but it could prove especially tough for one of the nation’s most storied brands: Sears. Sears, a fixture of American retailing for more than 100 years, had already been struggling to find its niche before the economic downturn began in earnest.Now, it’s facing the double whammy of a dismal housing market, which is crimping sales of flagship items like appliances, and cash-strapped holiday shoppers looking for the biggest bargains on other discretionary items, like clothes.

Walmart Had Black Friday Deals To Die For:Literally

Are u kidding America????!!!!

On black Friday a bunch a savage shoppers trampled a man to death at a Walmart at 5.a.m. It is however completly understandable because they saved a load of money on a new tv. The victim is being sued for being in the way of crazy Americans trying save money in these tough economic times.

Gifting necessities seen as big holiday hit

Shoppers may be giving the gift of necessity this holiday season, buying up cards for gas, groceries and even utilities to help friends and family through lean times. The gift card has become popular during the holidays, providing an easy way for shoppers to make sure recipients get exactly what they want. But as job cuts grow, portfolios shrink and economic problems deepen, many people may just want help getting by. Gift cards are once again expected to be the most-requested present for the season, the trade group said this week, even as total spending on them is expected to slip this year as shoppers limit how much they spend for the season.

Cash purchases are on the rise

Cash purchases are on the rise among consumers as more Americans have already maxed out their credit cards and are trying to manage their debt. Retailers like WalMart, Target, and J.C. Penney are noticing a marked shift away from credit cards in favor of cash and debit cards. A big factor is less credit available as major card issuers cut spending limits and raise fees even for customers who pay their bills on time. The shift to cash ends Americans' long love affair with credit cards and is one of the changes in consumer behavior that has emerged since the financial meltdown that could depress consumer spending this holiday season and effect shoppers habit long afterward.

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Walmart Picks New CEO

The World's largest retailer, Walmart Stores Inc., unexpectedly announced Friday that its chief executive will retire in February and be replaced by the head of its international division, Mike Duke. The surprise change in leadership right before the crucial holiday season comes as Wal-Mart has roared back to success as people looking for bargains shop more at discounters. The company still faces hurdles in the coming months and analysts say the decision to tap an international executive serves as a testament that the company sees its future growth overseas. Mike Duke, 58, the vice chairman of the Bentonville, Arkansas based Wal-Mart will take the reins from Lee Scott on February 1. Duke, who joined the company in 1995 will take over this retail giant in one of the worst economic times.

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Stores Try to Out-Sell Each Other This Holiday

A bloody battle is currently sahping up as to who can have the better deals among retailers. Retailers have been throwing themselves at consumers with promotions and deals for the past few months

Stores May See Disappointing Black Friday Sales

Retailers such as Kohl's and Toys "R" Us will be offering even bigger cuts and promotions for Black Friday as a frantic bid to pull in shoppers. They have recently pushed steep discounts throughout November wat are usually reserved for the weeks following Thanksgiving. Bargain hunters showing up for the early morning specials are not expected to buy with the same energy as the past few years. This is mainly due to tightening credit, massive layoffs, and shrinking retirement funds. Analysts say shoppers may stick to smaller gifts this season as this holiday is expected to be the weakest in decades.

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Large Retailers Post Losses

Consumer spending continues to drop and it comes as no surprise that Macy's has reported a third quarter loss of $44 million and Best Buy slashed its profit forecast for 2009. Best Buy's most recient report comes just two days after retail rival Circuit City Stores filed for Chapter 11 bankruptcy protection.

Retail Sales Continue To Fall

The Commerce Department has reported that retail sales have fallen for the fourth straight month in October by 2.8%. Sales of autos and gasoline have continued to plummet and experts say that they show no signs of letting up. Retail sales are expected to continue to worsen throughout the holiday season and will be apart of the fastest pace of falling consumer spending in 28 years.